British Land to team up with Oxford Properties on 'Cheese Grater' scheme on Leadenhall Street
Canadian fund manager will share development costs in excess of £250m
Article posted: 23 Oct 2010
According to today’s Independent and Financial Times, another city skyscraper project is set to get underway with British Land joining forces with Canadian fund manager Oxford Properties to develop a new office tower at 122 Leadenhall Street, EC3.
Advanced negotiations are said to be taking place to form a joint venture between the UK’s second-largest property company and the real-estate arm of Ontario Municipal Employees Retirement System (Omers) pension fund, one of Canada's largest pension plans. An official announcement is expected next week.
The Lord Richard Rogers-designed tower has been nicknamed the ‘Cheese Grater’ due to its wedge-shape design. On completion the 740 ft scheme will provide 610,000 sq ft of office space in the Square Mile.
News of this deal comes hot on the heels of the confirmation this week that Land Securities and Canary Wharf Group have finalised a £500m deal to proceed with the development of the ‘Walkie Talkie’ office tower at 20 Fenchurch Street.
Both schemes were mothballed in 2008 as development finance disappeared and demand for new office space subsided. Now with many of the City’s larger occupiers facing lease breaks there is concern that a lack of new office space in the City will push up rents. Insurance group Aon are known to have a substantial requirement, with British Land and Land Securities in competition to secure such a high profile tenant.
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Posted by Aree J Rand