Developer commits to three schemes worth £500m and approaches contractors about 'Cheesegrater' tower
Commercial developer British Land is talking to contractors about restarting the 736 ft Rogers Stirk and Harbour-designed 'Cheesegrater' tower on Leadenhall in the City of London.
The firm has also committed to spend £500m to start three developments in central London this year, it said as it reported final results today.
The firm said: “The economics of development have become more favourable, particularly in Central London offices. We are considering restarting the development of our 610,000 sq ft Leadenhall building in the City and are exploring interest from potential partners.”
The firm said demolition and preliminary work on the 47-storey Cheesegrater had been completed.
British Land said it had now committed to spend:
- £232m to complete its Regent's Place estate with Wilkinson Eyre designed office and residential buildings with a combined floorspace of 500,000 sq ft.
- £65m to redevelop a new 139,000 sq ft office at 2-14 Baker Street.
- £175m for its 50% share of the Broadgate development with Blackstone. This will see a 700,000 sq ft new building for UBS on the site of 4 and 6 Broadgate, on which it has secured a non-binding heads of terms for a pre-let on the entire building with the bank.
It said these three developments would be completed during 2013-4, to coincide with the peak moment of office occupiers hitting break clauses in existing tenancies.
It also said it was considering starting four retail schemes in the north and Scotland that already have planning permission, and its BFLS-designed Colmore Row scheme in the centre of Birmingham.
British Land said profits were down 7% in the year to 31 March 2010 to £249m, but that the value of its assets had risen 27% over the year.
Chris Gibson-Smith, Chairman said: "We are well positioned as we emerge from the challenges of the last year and look forward to the opportunities that lie ahead."