Helical Bar and funds managed by The Baupost Group have agreed to sell their jointly owned company that owns One Bartholomew Close, London EC1, to clients of Ashby Capital for £102.4m.

The net proceeds will be used to return equity to the joint venture partners and provide capital for the final phase of the residential aspect of the scheme.

One Bartholomew Close is a 211,000 sq ft office development site which will comprise a new building on ground and eleven upper floors with average floor plates of circa 19,300 sq ft, a terrace on the tenth floor and 388 bicycle spaces.

Demolition will commence later this year when the existing occupier vacates, and the new building is due to be completed in summer 2018.

Ashby will finance the development costs and when the building is completed the joint venture will receive a profit share payment. Helical Bar will remain as development manager for delivery of the project.

One Bartholomew Close is part of Helical’s Barts Square mixed use development comprising a further 35,000 sq ft of offices in two buildings, 23,100 sq ft of retail/restaurant accommodation and 236 residential units as well as extensive public realm improvements.

Gerald Kaye, Director of Helical Bar, said

“This deal with Ashby represents a further milestone at our major Barts Square mixed use development and enables us to deliver a high quality office building in 2018 when there is anticipated to be a shortage of supply in central London. It also allows us to redeploy capital into the final phase of the residential aspect of the scheme.”

Peter Ferrari, chief executive of Ashby Capital, said

“The acquisition of One Bartholomew Close, adjacent to our existing holding of 200 Aldersgate, increases our ownership in this fast improving area of the City which will be further enhanced with the completion of Crossrail in 2018”.

The Helical and Baupost joint venture was advised by CBRE and Clifford Chance. Ashby was advised by Savills and Allen & Overy. The joint letting agents will be CBRE, Savills and Ingleby Trice.