British Land is looking for partners as it considers its plans for the iconic £290 million Leadenhall Building, also known as the Cheesegrater.
As well as the 240m Cheesegrater, British Land is alsset to spend up to £500m developing three further sites in the City of London.
While it is at the early stages of discussions with its largest tenant on the Broadgate estate, UBS, it is set to spend £350m developing a new 700,000 sq ft headquarters, in a 50/50 split with its partner, Blackstone.
Other projects to be developed include:
- £232 million to complete the Regent’s Place estate with the construction of new office and residential buildings with a combined floorspace of 500,000 sq ft
- £65 million to redevelop a new 139,000 sq ft office at 2-14 Baker Street, acquired just after the year end
The lack of new office space in the City of London is driving a number of potential developments, many previously cancelled due to the credit crunch.
British Land chief executive Chris Grigg said: “In London offices, there is likely to be an upturn in structural demand for Grade A space due to the high percentage of occupiers, especially in the City, who have lease expiries around 2013/14.
“At the same time, Grade A supply is expected to remain limited with relatively little new space completed over the next four years. As a result, rental values, which started to rise in the fourth quarter of last financial year, are expected to continue to rise over the next year.”
Other projects set to get the go ahead in the near future include the £295m Walkie Talkie in the City of London. Developer Land securities is in discussions with potential partners and will conclude these before signing the building off.