Exclusive: Mace is set to be named as main contractor on the 30-storey King’s Reach development on London’s South Bank.
It comes after developers CIT secured a £250 million financing deal with Middle Eastern investors this week.
Mace is currently on the pre-construction contract and will be announced as main contractors in the coming weeks, CN can reveal.
The main construction work is understood to be worth in the region of £100m.
The mixed-use King’s Reach scheme includes 370,000 sq ft of offices, 72,000 sq ft of shops and 173 flats.
Work will start in January, with the project expected to be completed by the end of 2015.
Developers CIT Group secured £250m from a consortium of Middle Eastern investors to kick-start the scheme in the borough of Southwark. The overall value of the development is yet to be disclosed.
The £250m of funding comes from a club of Middle Eastern banks led by ABC International Bank and Saudi-based Mohamed Al Subeaei & Sons Investment Company.
MASIC’s involvement as the largest financier to the scheme marks its entry into the UK market.
CIT and its joint venture partner Jadwa Investment secured planning permission for the Kohn Pedersen Fox-designed scheme from Southwark council in October 2011.
CIT purchased King’s Reach Tower in a joint venture with Jadwa Investment in June 2010.
CIT managing director of development George Kyriacou said: “This development represents a major step in the regeneration of the South Bank.
“We are delighted to have worked with funders from the Middle East to get this project to the point where we are ready to start on site.”
Jadwa managing director Ahmed Al-Khateeb added: “Acquiring Kings Reach Tower back in 2010 and developing the tower demonstrates our belief in the London real estate market and in the investment opportunity it represents to us.”
CN revealed last week that work on the Pinnacle skyscraper will not start up again before the end of the year, meaning the £800m City tower will have sat empty for almost 12 months.
The plans approved by the London Borough of Southwark will deliver:
- 369,388 sqft of new contemporary office space for a range of businesses, replacing and creating new employment opportunities for local people;
- 173 high-quality apartments including one, two, three and four-bed apartments;
- 72,097 sq ft of new retail space around the perimeter and the centre of the site;
- Improvements to Rennie Court entrances and the podium garden;
- Extensive improvements and extension to the public realm including a new pedestrian route through the site;
- New private amenity space for the residents of the building;
- A s106 contribution of more than £22.4m towards up to 250 affordable homes in the borough as well as significant improvements in public services and infrastructure.