Weekly planning news from the central London boroughs
A weekly round up of the latest planning and property news from the central London boroughs
City of London
Property Week reports that four businesses have signed leases at Landsec’s Dashwood offices in the City of London. They include health and fitness company Lenus, which is taking 5,200 sq ft, and Fintech business Pigment, which is taking 506 sq ft for its first London office.
The Construction Index reports that real estate developer Dominvs Group has received resolution to grant planning for a 644-bed purpose-built student accommodation scheme in Holborn, supported by the London School of Economics. Dominvs Group’s plans for the 61-65 Holborn Viaduct site were approved this week by the City of London Corporation’s planning and transportation committee. The new building, 13 storeys and 42.3 metres high, is designed by Stiff and Trevillion Architects with Jonathan Cook Landscape Architects. The public realm will be changed by the construction of a new viaduct connecting Holborn Viaduct and Snow Hill, as well as a gateway to the new Museum of London at Smithfield’s. The public will also have access to a roof terrace offering panoramic views across the east of the city towards St Paul’s Cathedral.
Kensington & Chelsea
Mortgage Introducer has reported that Kensington and Chelsea has remained the least affordable local authority in London, and by extension Great Britain, with a house price to earnings ratio (HPER) of 14.7, according to Nationwide Building Society’s Local Affordability Report. Oxford was the least affordable area in the South East, with house prices 10.1 times average earnings in the region, up from 9.2 a year ago. House prices in Oxford have risen 14% over the past year, one of the strongest increases in the South East. Hertsmere in Hertfordshire continued to be the least affordable local authority in the East of England government region, with average prices 10 times average earnings. Most authorities in the South West saw a deterioration in affordability last year, but the Cotswolds replaced Bath and North East Somerset as the least affordable area, with a house price earnings ratio of 8.6.
Property Week reports that SevenCapital and MARK have both acquired a 50% stake in a landmark, £500m residential scheme in Kensington, central London. The project at 100 West Cromwell Road will contain 462 homes, including 40% affordable housing, with a 29-storey residential tower at the centre of the scheme. The development will comprise six residential blocks offering a mix of spacious studios, one-, two- and three- bedroom apartments along with a number of duplex apartments and three- and four-bedroom houses.
Lambeth
Property Week reports that Lambeth Council has approved plans for its housing arm Homes for Lambeth’s scheme to rebuild Westbury Estate. Phase two of the Westbury Estate regeneration will deliver 124 new homes and follows phase one, which comprises 64 affordable council homes and the demolition of 46 existing homes. The proposal more than doubles the amount of affordable housing in the borough and increases the amount of council housing by 53%. Lambeth’s planning committee also gave permission for Homes for Lambeth to amend the outline masterplan to allow all the homes to use air-sourced heat pumps to support a move to an all-electric energy generation strategy that reduces carbon emissions.
Tower Hamlets
Europe Real Estate Kajima acquires London office building for €54m (GB) Kajima has completed the purchase of Warehouse K, a Grade II listed former tobacco warehouse at the heart of London’s Docklands for €54m (£45m), reflecting a yield of around 5.65%. The building offers approximately 108,479ft² of high-quality office, leisure and industrial space over a 1.84-acre site. This acquisition forms part of Kajima’s strategy for growing its London commercial property portfolio with high-quality workspaces within strategic locations. Situated next to the ExCel Centre at the heart of a major regeneration site in-between Canary Wharf and London City Airport, Warehouse K is positioned directly adjacent to the Customs House station, which will give access to Liverpool Street in 10 minutes when the Elizabeth Line opens in the second quarter of this year. The building is a short walk from the new City Hall for the Greater London Assembly at The Crystal.
Rail Advent reports that Canary Wharf is ninth Elizabeth Line station to be transferred to Transport for London. The Elizabeth Line station at Canary Wharf has been transferred to Transport for London (TfL), and becomes the penultimate Crossrail station to be handed over to TfL. The transfer means the station can now be fully integrated with the operational network ahead of the line’s opening in the first half of this year. Nine out of the 10 central stations have now been transferred from Crossrail to TfL. The station sits below a five-storey mixed-use development known as Crossrail Place. Like the nearby Canary Wharf London Underground station, the Elizabeth Line station is constructed in a dock, in this case the North Dock of West India Quay. The station box is 256 metres long, which is greater than the height of the nearby One Canada Square, one of the UK’s tallest buildings.
Wandsworth
Construction enquirer reports that Construction has been scaled back on £1bn Multiplex Nine Elms site. The main contractor is understood to have been unpaid for months by Chinese client R&F One (UK) Ltd. In a statement R&F said: “Work is continuing at One Nine Elms while we discuss a set of issues with Multiplex to ensure a successful completion of the development.” Work on the site involves construction of two residential towers of 56 and 42 storeys which are due for completion in early 2023. R&F bought the job from former Chinese developer Dalian Wanda in 2017. Its parent company Guangzhou R&F Properties has been struggling to make a $725m bond repayment.
Westminster
Property Week reports that drinks giant Diageo is investing £73m in a new 50,000 sq ft microbrewery and cultural hub in Covent Garden, London. Guinness at Old Brewer’s Yard will become the southern UK hub of Diageo’s award-winning Learning for Life Bartending and Hospitality Programme. Dayalan Nayager, managing director of Diageo Great Britain, said: “We’re excited to create a new home for Guinness in the heart of London. Guinness at Old Brewer’s Yard will strengthen London’s hospitality community and be a must-visit destination for thousands of visitors to enjoy.”
CityAm reports that the West End has enjoyed busiest week since November 2021 following the easing of Covid restrictions last month. In the first full week since plan B measures eased, areas including Covent Garden and Oxford St, saw a return of shoppers. Footfall hit 79 per cent of pre-pandemic levels, the highest seen since last autumn, before the Omicron coronavirus variant emerged. Total daily footfall was up on average 10 per cent in the week Thursday 27 January to Wednesday 2 February, compared to the week prior, according to the New West End Company.
Property Week reports that the GHS Limited Partnership (GHS), one of Great Portland Estates (GPE) joint ventures, has let the final 8,900 sq ft of the office space at its Hanover Square scheme in West London to international investment firm Kohlberg Kravis Roberts & Co (KKR). KKR, which already leases 9,000 sq ft on the third floor, has added the fourth-floor space in 1 Medici Courtyard on a co-terminus lease. The firm also occupies 57,200 sq ft on the fifth to eighth floors of 18 Hanover Square.
Property Week reports that Investment manager Ruffer has renewed its lease on 45,000 sq ft of space at Landsec’s 80 Victoria Street, in one of seven London office deals totalling 90,000sq ft agreed by the landlord. The landlord described the deals as a “really exciting vote of confidence in London” and added that it expected to sign a further 200,000 sq ft of office deals across the capital by the end of this financial year.
General
Property Week reports that the central London office market is forecast to attract £60bn of overseas capital over the next five years, the highest five-year total for more than 20 years, according to Knight Frank’s annual London Report. The estate agency said that US institutional investors would be the “most acquisitive”, with £15bn expected to be allocated towards London office assets. Substantial volumes of capital from Germany (£6.6bn), Greater China (£6bn), Singapore (£5.5 bn) and South Korea (£4bn) will also fuel record investment activity.
Property Week reports that Landsec plans to expand its flexible workspace platform Myo by around 150,000 sq ft over the next year, the landlord has told Property Week. Myo was launched in early 2019 and currently operates around 70,000 sq ft of workspace at Landsec’s Victoria and Liverpool Street sites. Landsec said new London locations being considered for Myo included the South Bank and the Forge at Southwark, with other possible options being One New Change in the City and the West End. It added that it could be on site at all of them in the next 12 months.