Transport for London (TfL) has started a search for a new joint venture partner to create a portfolio of three new commercial office developments at Bank, Paddington and Southwark.
Paddington development – (c) TfL / Grimshaw-Architects
TfL has traditionally tended towards leasing the sites above its stations to property developers who then buy the rights to build what they want, within the planning and structural constraints. TfL is now moving to a model where it retains a stake in the property development itself — and is now looking for a joint venture partner to work with on that.
Through the creation of the partnership, the joint venture company will agree to purchase leasehold interests in the sites from TfL and will then establish individual property companies that will be between 51-75% owned by the developer, with TfL owning between 25-49%. The sites will then be developed directly by the company, which is to be funded with equity and debt.
The three over-station developments included in the partnership are:
Bank Over-Station Development – located above the new station entrance on Cannon Street, this eight-storey development, along with a basement, will include both office and retail space, and subject to City of London planning approval, also have external terraces on the fifth, sixth and seventh floors and a green roof.
Paddington Triangle Over-Station Development – located by Grand Union Canal and close to the new Elizabeth line station at Paddington, this 19-storey building will deliver new office and retail space, including a canal-side reception and use a ground and air source heat pump system.
Southwark Over-Station Development – located above Southwark Tube station on the Jubilee line, this 17-storey hybrid timber building will provide a mixture of commercial office space and retail space and has external terraces on most floors.
Scott Anderson, Head of Property Development at TfL, said: “We are delighted to be going to the property industry with this exciting opportunity and are looking for a partner to create best in class commercial office workspaces that will positively transform the capital and support its green recovery. This new investment and development partnership will form part of our wider commercial development programme, which seeks to build the homes and commercial spaces the city needs, while also generating vital revenue that reduces TfL’s reliance on fares income.”
This partnership forms part of TfL’s wider commercial development programme, which – alongside new commercial office developments – will see thousands of new homes built on its land across the capital – delivering 50 per cent affordable housing on average across its entire portfolio. TfL currently has more than 1,700 homes under construction with work forecast to start this financial year on 12 additional sites that will deliver a further 2,400 homes.
The agent for the opportunity is JLL.
