IPC Media has confirmed that it is to leave King's Reach Tower in Stamford Street in 2007 and move its magazines to the nearby Bankside 123 development in Southwark Street.
Land Securities announced on Friday that it has agreed the forward sale of Building 1 at the Bankside 123 development to IPC for the use of Time Warner's London based magazine and book publishing operations.
The 46,350 square metre building is part of the 85,000 square metre Bankside 123 mixed-use development on the site formerly occupied by St Christopher House, a late 1950s government building.
Land Securities will lease back the retail and leisure elements of the building. IPC has an option to buy back this element once it has been let by Land Securities.
"Land Securities is delighted to be able to start this significant development programme in Southwark by meeting the needs of IPC Media, a key local occupier, in what is one of the largest occupational transactions across the Central London market" said Francis Salway, chief operating officer of Land Securities.
IPC Media chief executive Sylvia Auton said: "It's great that we'll be working with Land Securities on this prestigious project. We're looking forward to taking delivery of a first class office building which will provide a quality working environment for IPC Media and our staff for years to come."
Bovis Lend Lease has been contracted by Land Securities to build the property which will be handed over to IPC Media for fit-out in Spring 2006.
The official announcement confirms newspaper speculation earlier this month.