Legal & General Property, on behalf of its managed fund, has sold a 50% stake to Mitsubishi Estate London, in its proposed 250,000ft² (23,226m²) office scheme at 245 Hammersmith Road, W6. The project has a gross development value of £275m (€343.7m).
The newly formed partnership will speculatively develop the new scheme, designed by Sheppherd Robson, which already has planning consent from Hammersmith & Fulham Council. Following the demolition of the existing structure, the joint venture will deliver a high specification scheme that aims to create a vibrant working environment.
The building will consist of a basement, ground and 11 upper storeys and an extensive public realm, including a new urban park and plaza to the Hammersmith Road. The office space has been designed with the floor plates and servicing to provide the maximum level of flexibility. The building also includes four retail or leisure units comprising a further 9,236ft² (858m²) and a 1,184ft² (109m²) work lobby café.
The development is set to create a new benchmark for offices in the Hammersmith area. It maximises open and green spaces to create a flexible and collaborative work environment inside and outside of the building. It is targeting a BREEAM “Excellent” rating, minimizing embedded carbon and has looked to maximize its social value through a research project jointly funded with the BCO. Situated in a core office location of central Hammersmith, it is close to homes and shops and the Underground and bus services immediately to the west of the building.
Simon Wilkes, head of business space development, Legal & General Property, said: “245 Hammersmith Road will be much more than just an office building; we are creating a destination with modern working and lifestyle trends at the core of our thinking. It will set a new standard for Hammersmith. There is still a lack of Grade A development taking place which means we are set to benefit from rental growth. We are already seeing high levels of interest from blue chip occupiers, who are particularly drawn to the design and location of the scheme, especially given the competitive nature of the rents compared to the West End.
“Mitsubishi is a proven, credible JV partner, with whom we have a long standing relationship. This is our third partnership together. The award winning Central Saint Giles which has become an exemplar in office development is probably our best known venture together.”
Yuichiro Shioda, managing director & CEO of Mitsubishi Estate London Limited, the London based wholly owned subsidiary of Japan’s leading developer Mitsubishi Estate said: “We are delighted to be working again with Legal & General who share many of our core values around excellent design, sustainability and placemaking.
“This will be Mitsubishi Estate London’s fifth development, following the recent completion of 8 Finsbury Circus in the City, which already boasts more than 60% of the building let.
“This latest deal further cements Mitsubishi’s commitment to an ever expanding London and to flagship office development. We take pride in meeting occupiers’ needs and creating a better local environment for communities.”
Construction is due to start next month and the scheme will be completed in the first quarter of 2019. CBRE and Nabarro advised Mitsubishi Estate London. Eversheds advised L&G.
