Global alternative asset manager The Carlyle Group announces that the Southwark Council’s Strategic Planning Committee last night approved Carlyle’s planning application to replace the Sampson House data-center and Ludgate House office building with a major 1.4 million ft² (approx. 130,060 m²) residential and office regeneration project on the south bank of the River Thames across from the City of London.
The regeneration project will create a destination neighborhood with around 490 new homes, as well as 3,700 jobs which represents a c. 1,450 increase in new full time or equivalent jobs compared to what the current buildings provide. The development will comprise 1.4 million ft² of total floor space, including 940,000 ft² of residential, 450,000 ft² of new offices, 35,000 ft² of new public open spaces, 25,000 ft² of retail and 18,500 ft² of space for cultural use.
In addition, the London Borough of Southwark, the Greater London Authority and Transport for London will benefit from a c. £75 million Section 106 investment as a result of the development. This includes a c. £65 million affordable housing contribution, equivalent to the policy requirement for 35% of affordable homes. In agreement with Southwark Council this contribution will be made through the Council’s Affordable Housing Fund, which has been established to deliver over 1,000 new affordable homes across the borough by 2020, and will enable the delivery of 260 new affordable homes in Southwark, bringing the total number of new homes provided by the scheme to 750. The balance of the Section 106 contribution will be used to finance the development of open public spaces, improvements to sports and leisure provision, as well as education, transport, health, community facilities and employment training.
Once complete the development will deliver large areas of new open space including a 4,300 ft² children’s square, and a new 16,250 ft² ‘public square’ bordered by retail, leisure and cultural space in the lower floors of the new buildings. In addition, the footpath and accessibility along the River Thames will be dramatically improved and parts of the Upper Ground thoroughfare will be re-opened for the first time in 150 years.
The project will be delivered in multiple phases following the lease expiries of the current tenants at Ludgate House in Q1 2015, and Sampson House in Q2 2018, and it is anticipated that works will be completed between mid-2020 and early 2023.
Commenting on the scheme, Mark Harris, Managing Director at The Carlyle Group, said: “Our vision of an exciting new urban quarter on this prime Thames-side location has taken a significant step towards realization with the council’s decision to provide planning consent for our project. The site, which is right on the river, is currently extremely under-utilized from a physical, social, employment as well as cultural perspective and the support we have received from the local community and Southwark Council throughout this process, and last night, endorses our belief in the need for change.
"This is a once in a generation opportunity to create a vibrant new destination area, with homes, retail and leisure facilities which brings thousands of new jobs to the area, while at the same time allowing us to make a significant contribution to Southwark’s wider housing requirements.”
Councillor Peter John, Leader of Southwark Council said: "This is an amazingly exciting project which will bring new homes, new jobs and new opportunities for Southwark and its residents - everyone in our borough can benefit from developments like this. It is further proof that Southwark is the new vital heart of London and is not afraid to play its part in leading the whole city out of recession."
Source: FTI Consulting