British Land and Barratt Developments have teamed up to buy the 850,000 sq ft Aldgate Place office development from Tishman Speyer.
BL and Barratt have formed a joint venture to take control of the site, exchanging conditional contracts to buy the two-acre edge-of-City site at 1-2 Aldgate Place, E1.
The site, which is being acquired by the 50:50 jv for a residential conversion, is situated adjacent to Aldgate East Underground station and has planning consent for 850,000 sq ft of offices. The purchase is conditional on securing a revised planning consent from Tower Hamlets for a residential-led mixed-use development. A purchase price has not been disclosed.
As revealed by Estates Gazette in February last year, Tishman Speyer and HSH Nordbank have been looking at alternative proposals for Aldgate Place in an effort to kick-start development on site. German bank HSH, Tishman’s funding partner on the scheme, appointed Savills to review other options and uses for the site to determine whether an alternative mixed-use scheme would allow it to be delivered sooner.
At that time, Tishman said that securing a major prelet for Aldgate Place remained the preferred option, but that given the lack of demand in the City and City fringe from major occupiers, alternative uses such as student housing, residential and retail were being considered.
Julian Stocks, managing director UK at Tishman Speyer, said: “This location is perfect for a residential scheme and we are delighted to have agreed a conditional sale. Our focus remains on building our office portfolio in London following the acquisition in January of Eland House, Victoria.”
Nigel Webb, head of development at British Land, said: “We are pleased to have exchanged a conditional agreement to purchase this highly attractive site on the edge of the City. We believe our combined skills in delivering large-scale mixed-use schemes will enable us to unlock significant value from the site.”
Alastair Baird, regional managing director at Barratt London, said: “This consolidates our presence in the exciting Aldgate area alongside our 27-storey Altitude development on Alie Street, which has already sold 20 units after its recent launch. This is our third major jv in London following the 235-unit Alie Street and 375-unit Queenstown Road agreements with London and Quadrant.”
The scheme at Aldgate Place won planning consent in July 2009 and comprises three buildings: a 330ft-tall, 277,000 sq ft block; which could be linked to a second 260ft, 355,000 sq ft building; and a low-rise, 33,000 sq ft block.
The area surrounding Aldgate Underground station, dubbed the City’s eastern gateway, has been earmarked for ambitious redevelopment plans.
