Formation of Joint Venture

RNS Number : 6060U

Land Securities Group Plc

19 October 2010

 



Land Securities Group PLC ("Land Securities") and Canary Wharf Group plc ("Canary Wharf Group")

LAND SECURITIES AND CANARY WHARF GROUP FORM  A JOINT VENTURE

TO DEVELOP 20 FENCHURCH STREET, LONDON EC3

Land Securities and Canary Wharf Group today announce that they have formed the 20 Fenchurch Street Limited Partnership ("the Partnership"), a 50:50 joint venture partnership to develop 20 Fenchurch Street, EC3.

The existing property, currently a cleared site with some ancillary retail neighbouring holdings, has been sold by Land Securities to the Partnership at a price of £90.2 million, in line with the March 2010 valuation.

Planning consent for the proposed 37 storey building was granted in October 2009. It will provide approximately 690,000 sq ft of world class space in floor plate sizes of 14,000 sq ft to 28,000 sq ft with a skygarden on the top three floors.

The Partnership will construct the project under a staged programme at an anticipated total development cost of £500m.  To enable a condensed programme, construction of the substructure of the building and detailed design of the superstructure will start immediately. Completion to the ground floor level is planned for February 2012.  Construction of the superstructure will follow, with completion of the project anticipated in the second quarter of 2014. 

Land Securities and Canary Wharf Group have been appointed as joint Development Managers and both are responsible for the leasing, with Land Securities taking the lead. Canary Wharf Contractors Limited, a wholly owned subsidiary of Canary Wharf Group, has been appointed as Construction Manager. 

Robert Noel, Managing Director of Land Securities' London Portfolio, said: "Earlier this year we announced our intention to carry out this project in joint venture and we are delighted to have teamed up with Canary Wharf Group to do so.  The joint venture brings together two substantial companies with complementary skills in the conception and delivery of large schemes in London.  The transaction allows us to take forward other projects within our substantial development pipeline in London so that we offer a range of building types and sizes in a range of locations across the capital."

George Iacobescu, Chief Executive Officer of Canary Wharf Group, said:  "We are looking forward to this opportunity to apply our extensive experience as a developer of large, high specification and bespoke office buildings for a diverse range of clients. We are also delighted that on this occasion we will be working alongside Land Securities with its own impressive pedigree and track record. This joint venture project will provide further evidence of our approach to the development and construction of very high quality buildings in London.

-Ends-

For further information, please contact:

Land Securities

Media                                                              

Donal McCabe                                      

Tel: [phone]                                            

[e-mail]                                

 

Investors

Ed Thacker

Tel: [phone]

[e-mail]

Canary Wharf Group

John Garwood

Tel: [phone]

 

END

 

 

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