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JV to develop Shell’s South Bank offices
Shell Centre to be redeveloped by Canary Wharf Group & Qatari Diar
Article posted: 09 Aug 2011
Canary Wharf Group plc and Qatari Diar Real Estate Investment Company have concluded an agreement with Shell International to redevelop the Shell Centre site to create new office space on the South Bank, in the heart of London.
Canary Wharf Group and Qatari Diar have entered into a 50:50 joint venture, contributing £150m each to secure the 5.25 acre site on a 999 year lease. The Canary Wharf Group £150m element of the consideration is being satisfied from existing corporate resources. The aggregate £300m payment for the site is conditional on planning permission being received for the project within three years. Canary Wharf Group will act as the Construction Manager for the project and will also be Joint Development manager with Qatari Diar. For these roles, fees will be generated for the transaction and apportioned between the parties based upon their broad level of contribution.
Discussions will now commence with local planning authorities and relevant stakeholders to establish planning consent, detailed designs and a timetable for construction for a project that will re-energise an important section of the South Bank.
The development will be mixed use, comprising office, retail and residential space. The well known 1950s, 27 storey tower in the middle of the Shell Centre will be preserved and retained by Shell. Shell will also take a 210,000 sq ft pre-let of one of the new office buildings to be constructed on the site.
Graham van’t Hoff, Chairman, Shell UK said “Today we have chosen world acclaimed developers that have an excellent track record in delivering on projects of this size and scale” said “This is a great step forward and represents considerable reinvestment in the South Bank. Shell Centre is our long-term home in London and we’re keen to start working with Canary Wharf Group, Qatari Diar and local stakeholders to develop and deliver a project that will benefit both London and the local community.”
Posted by Sara
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