Leadenhall Joint Venture Agre
22 December 2010
British Land and Oxford Properties Announce Completion of Joint Venture Agreement to Develop 610,000 sq ft Leadenhall Building
The British Land Company PLC ("British Land") and Oxford Properties ("Oxford"), the real estate arm of the OMERS Worldwide Group of Companies ("OMERS"), are pleased to confirm that contracts have now been signed for a 50:50 joint venture to develop the 610,000 sq ft Leadenhall Building at 122 Leadenhall St, EC3.
Designed by Rogers Stirk Harbour and Partners, the elegant tapering 47 storey, 736 ft (224m) Leadenhall Building will become one of the tallest and most iconic buildings in the Square Mile. It will combine spectacular landscaped open space, retail and dining facilities with modern, flexible office space in the heart of the City's insurance district. The seven storey landscaped open space at the base of the building, covering nearly half an acre, will be on a scale unprecedented in London.
The efficient and adaptable floor plates, which range from 21,000 sq ft at the base of the building to 6,000 sq ft at the top of the tower, are already generating strong interest from a broad range of occupiers from across the insurance, financial, professional and corporate business sectors.
Detailed planning consent is in place and demolition and preliminary basement works have already been completed, with practical completion to shell and core scheduled for mid 2014. British Land and Oxford will combine their significant real estate experience to co-develop Leadenhall, with British Land acting as lead development manager.
The total development cost is expected to be around £340 million (excluding interest). British Land has contributed the site at an effective land value of £90 million. Oxford will contribute the next £90 million in cash for the costs of preparing and commencing the development with further development costs shared on a 50:50 basis thereafter. British Land's contribution in addition to the land will be around £125 million.
Chris Grigg, Chief Executive of British Land, said, "Our partnership with Oxford Properties, brings together two leading property companies with proven development and asset management expertise. We believe that the Leadenhall Building will provide the City of London with a unique combination of iconic architecture with world-class public and office spaces."
Paul Brundage, Executive Vice President, Senior Managing Director Europe of Oxford Properties said: "We are delighted to be partnering with British Land on the Leadenhall project. In terms of both strategy and approach British Land is strongly aligned with Oxford Properties' own objectives, making us well placed as partners to ensure that 122 Leadenhall meets its potential to become one of the most successful developments in London. In investment terms, this project is also consistent with Oxford Properties' strategic goals and is further evidence of our long-term commitment to, and confidence in, the London market."
Enquiries:
British Land
Investor Relations
Sally Jones, British Land 020 7467 2942
Media
Pip Wood, British Land 020 7467 2838
Gordon Simpson, Finsbury Group 020 7251 3801
Guy Lamming, Finsbury Group
Oxford Properties
Debbie Cracknell, Redwood Consulting 020 7828 5553/07860 658288
Ceri Edwards, Redwood Consulting 020 7828 5553/07515 050337
Notes to Editors
Further details and images of the Leadenhall Building can be found in the media centre and property portfolio section on the British Land website at www.britishland.com
About British Land
British Land is one of the UK's largest Real Estate Investment Trusts with total assets, owned or under management, valued at £14.0 billion (British Land share £8.9 billion), as at 30 September 2010. The hallmark of the business is a focus on customers, based on a property portfolio in prime locations in the UK and more recently in Western Europe.
The portfolio, focused on the out-of-town retail and London office sectors, has among the highest occupancy rates and lease lengths of the major UK REITs at 98% and 12.5 years respectively. Retail assets account for 65% of the portfolio, around 85% of which is located at prime out-of-town sites. Central London offices currently comprise 33% of the portfolio.
During 2010, British Land has committed to a significant development programme in central London which on the basis of current estimates of values at completion, increase the weighting of offices in the group's portfolio from 33% to 40%. These developments, which will deliver 2.2 million sq ft of high quality space in the City and West End by 2014, include: a new 700,000 sq ft building for UBS at Broadgate; the 610,000 sq ft Leadenhall Building in London's insurance district; a 158,000 sq ft scheme in Baker Street; and the 500,000 sq ft NEQ building, which will complete the Regent's Place estate in the West End. The aggregate development cost, including land and interest is expected to be £1.5 billion, of which British Land's share is £1.0 billion.
About Oxford Properties
Celebrating its 50th anniversary in 2010, Oxford Properties Group is one of North America's largest commercial real estate investment, development and management firms. Oxford oversees and manages approximately C$16 billion of real estate for itself and on behalf of its co-owners and investment partners including headquarter buildings and development projects such as the Royal Bank Plaza in Toronto, the West Side Yards in New York, Watermark Place in London and Centennial Place in Calgary. Oxford's investments include office, retail, hotel, industrial and multi-family residential properties. Oxford is the real estate arm of the OMERS Worldwide Group of Companies. For more information visit www.oxfordproperties.com
This information is provided by RNS
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