The building above and surrounding Holborn tube station has been sold for around £40 million by Transport for London.

The cash-strapped transport authority, which this week revealed it has halved its near-£1 billion budget deficit partly by cost cutting, said Holborn Central has been bought by property investor Aprirose.

The prime island site comprises 68,373 square feet of multi-let offices and shops. The new owner will benefit from long term rental income and opportunities to boost the building’s value.

For TfL, which was advised by agent Knight Frank, the disposal is part of an effort to sell off non-core properties, and instead focus on residential projects. It is currently searching for a joint venture partner to work with on creating thousands of rental homes above tube stations or other TfL land.

Graeme Craig, director of commercial development at TfL, said: “Our investment strategy will continue to see us undertaking a small number of targeted disposals whilst we concentrate on our own development activity.”

Details of the sale emerged a day after TfL revealed it has halved its near £1 billion budget deficit, helped by cost cutting measures.

Meenal Devani, chief investment officer at Aprirose, said: “Holborn Central is in a prime location that attracts a diverse range of occupiers including from the TMT, financial and legal sectors.”