'Cheesegrater' project revived as London office market recovers

Published 25th Oct 2010

Land Securities, Britain's biggest property developer, last week said it would restart work on a 37-storey building known as the Walkie Talkie in nearby Fenchurch Street


The London office market is coming back to life, with the "Cheesegrater" and the "Walkie Talkie" buildings both being given the green light within a week.

British Land has teamed up with Canada's Oxford Properties to build the 47-storey Leadenhall Building, nicknamed the Cheesegrater because of its wedge-shaped profile.

It is the second major project in the City to be revived within days – last week rival Land Securities, Britain's biggest property developer, said it would restart work on a 37-storey building known as the Walkie Talkie in nearby Fenchurch Street after signing a deal with Canary Wharf Group. It will have 690,000 square foot of office space and is due to be completed in the second quarter of 2014.

The recession forced developers to mothball or halt many projects, but commercial property prices have recovered since last summer, with the weak pound fuelling demand from international investors and a shortage of office space boosting rents.

British Land has struck a 50-50 joint venture with Oxford Properties Group, the real estate arm of Toronto-based Ontario Municipal Employees Retirement System, to build the 610,000 sq ft Cheesegrater for £340m. It is also expected to be finished in the second quarter of 2014, when many leases expire in the City.

"We welcome the start of an additional office development, given our positive stance on quality office space," said Harm Meijer at JP Morgan.

On Thursday, the City's first major shopping centre opens in the shadow of St Paul's Cathedral. Designed by French architect Jean Nouvel, One New Change is meant to resemble a US stealth bomber and hopes to lure tourists and bankers with its Banana Republic and Hugo Boss concessions and Jamie Oliver and Gordon Ramsay restaurants. It will also have 330,000 sq ft of office space.

Source: ' Guardian '

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