British Land confirmed that it has entered into an agreement with The City of London Corporation for the redevelopment of The Shoreditch Estate, E1.
The estate comprises three sites covering two acres fronting onto Shoreditch High Street and Norton Folgate immediately to the north of Spitalfields and the core City of London market. The sites have potential for around 320,000 ft² (approx. 29,730 m²) of office, retail and residential accommodation in a mix of new, retained and refurbished buildings.
In recent years this area of London has emerged as the hub for the creative TMT sector. The vibrancy of the area and proximity to more traditional office markets will likely draw interest from the growing TMT sector as well as wider sectors of the occupational market. British Land's focus will be on developing space with appeal to the more established TMT occupiers seeking highly specified, character offices and wishing to capitalize on the sites' close proximity to the new Liverpool Street Crossrail station which opens in 2018. Located in the heart of the Elder Street Conservation Area, the development requires a sensitive and collaborative approach to design and British Land have appointed AHMM as architects to draw on their extensive experience in this field.
British Land has entered into an option agreement with The City of London Corporation and will draw down a development agreement subject to securing revised planning consent on the sites. On practical completion British Land will acquire a long leasehold interest in the sites.
Tim Roberts, Head of Offices at British Land, said: "We are pleased to have entered into this agreement with The City of London Corporation. The Shoreditch Estate is a growing area of London and plays well to our planning and development skills. With much of our existing development programme completing over the next year, this site further adds to our pipeline. We remain positive about the outlook for development in London and expect this investment to generate good returns for our shareholders."
Nigel Webb, Head of Development at British Land said: "We are excited by the site's potential to provide a vibrant mix of offices integrated with retail and leisure uses along with high quality residential. We expect the smaller offices to appeal to increasing demand from technology and media companies in this area of London. A number of the existing buildings will be retained and brought back into active use to provide an attractive and characterful environment."
Michael Cassidy, Chairman of the City of London Corporation's Property Investment Board, said: "The City of London Corporation is delighted to be involved in this redevelopment with British Land. It will enable the Shoreditch Estate site to be regenerated over the coming years and play a key role as this exciting area of London continues to change."
Jones Lang LaSalle acted for British Land and The City of London Corporation were advised by Allsop.
Source: British Land