Major iconic London office towers to resume in 2011, it is announced

Written by Ray Clancy

Monday, 25 October 2010 09:14

The commercial real estate sector in London’s financial district has received a huge boost with the news that two crisis hit skyscraper projects are being revived.

British Land is teaming up with Canada’s Oxford Properties to develop the Leadenhall Building in the City of London which is set to become on of the tallest in the area.

The 47 storey £340 million tower is designed by Rogers Stirk Harbour and Partners and will provide 610,000 square feet of the highest quality office space in the heart of the Square Mile.

It set to combine spectacular public space, retail and leisure facilities with modern, flexible office space. The four storey landscaped public space at the base of the building, covering nearly half an acre, will be on a scale unprecedented in London.

The efficient and adaptable floor plates, which range from 21,000 square feet at the base of the building to 6,000 square feet at the top of the tower, are already generating interest from a broad range of occupiers from across the insurance, financial, professional and corporate business sectors.

Detailed planning consent is in place and demolition and preliminary basement works have already been completed. On site construction will start immediately following the construction tender process which will commence in January 2011. Practical completion to shell and core is expected in the second quarter of 2014.

The final agreement is subject to contract which is expected to be signed by the end of the year, said Chris Grigg, chief executive of British Land.

‘We are delighted to be announcing the development of the Leadenhall Building. With its unique and iconic architecture, it is a building which will provide an unbeatable combination of style, presence, location and office floor space in the heart of the City of London. Our partnership with Oxford Properties, brings together two world class property companies with proven development and asset management expertise,’ he added.

British Land’s biggest rival Land Securities has announced it will resume construction work on the £500 million 37 storey building known as the Walkie Talkie Building at nearby 20 Fenchurch Street after striking a similar tie up with Canary Wharf Group.

It will add around 690,000 square feet of commercial space and work is due to resume in January 2011 and completion schedules for the first quarter of 2014.

‘We are looking forward to this opportunity to apply our extensive experience as a developer of large, high specification and bespoke office buildings for a diverse range of clients. This joint venture project will provide further evidence of our approach to the development and construction of very high quality buildings in London,’ said George Iacobescu, chief executive of Canary Wharf Group.

Several other big office scheme are also due to move into construction. Construction work is also under way on the Pinnacle Tower, dubbed the Helter Skelter, as the developer gambles on tying up a full funding package with a consortium of international banks.

Peter Rees, the head of planning at the City of London Corporation said it shows that the London office sector was on the rebound with help from overseas finance. ‘This is investors bringing money into London from outside the UK, money that would have been spent in New York or the Middle East,’ he explained.