One Canada Square change of use set for approval
Plans to change part of a Canary Wharf tower to educational use have been recommended for approval as University College London looks to expand its footprint in the building.
Approval from the Tower Hamlets Council Strategic Development Committee at a meeting tomorrow evening would see the loss of nearly 45,000 sq ft of office space at One Canada Square, E14, owned by Canary Wharf Group.
The space would be taken up UCL’s School of Management, which originally leased the whole 28,412 sq ft 38th floor of the building and has since expanded to take the space on the building’s 50th floor.
Plans to change part of a Canary Wharf tower to educational use have been recommended for approval as University College London looks to expand its footprint in the building.
Approval from the Tower Hamlets Council Strategic Development Committee at a meeting tomorrow evening would see the loss of nearly 45,000 sq ft of office space at One Canada Square, E14, owned by Canary Wharf Group.
The space would be taken up UCL’s School of Management, which originally leased the whole 28,412 sq ft 38th floor of the building and has since expanded to take the space on the building’s 50th floor.
The proposals would mean the school would also expand to the 48th and 49th floors of the building to provide space for staff offices, teaching and learning spaces.
Recommending the plans for approval, planning officers said the net loss of nearly 45,000 sq ft of office space within a primary office location “is not normally supported”. However, they said in this case the proposal “would not undermine the supply of office floor space within the Canary Wharf.”
The approval of the plans would mark a further diversification of the tenants based in London’s former financial services hub as the area looks to redefine itself in post-pandemic period.
Diversification has become increasingly urgent with the departure of big-name tenants, such as law firm Clifford Chance and international bank HSBC, highlighting the estate’s exposure to structural changes within the office market.
Earlier this year Fitch Ratings downgraded the debt rating of Canary Wharf Group Investment Holdings, which owns much of Canary Wharf.
While the agency noted the estate’s “evolution… from pure offices to mixed-use”, with more than 3,500 residents and a growing occupier base from the life sciences sector, it pointed to other financial concerns to justify its decision.
“Some existing space and towers require capex to accommodate hybrid working, enhance green credentials and to meet evolving tenant expectations for modern offices,” the agency said. “While this capex requirement burdens the group’s leverage, it helps support the transition of these buildings to mixed-use.”
Fitch added: “While the group has successfully refinanced its 2024 property-specific secured bank financings, CWGIH still faces significant maturities of £350m for its secured bond in April 2025 and £250m equivalent secured bond in April 2026.”
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