British Land has submitted the first planning application for its £3bn-plus development in Canada Water, SE16, to Southwark Council.
The application encompasses outline planning for the 1.8m sq ft first phase, which has a gross development value of more than £700m, and detailed planning for the first three buildings in the phase.
“The reason the whole masterplan can now come forward is that we have regeared our existing leasehold interests with Southwark,” said Emma Cariaga, head of operations at Canada Water for British Land.
“We have a lease over the shopping centre and the printworks and own the freehold over the leisure park.
“We are effectively pooling our interests with Southwark and they will grant us back a benign 500-year headlease over the whole thing.”
Roger Madelin, head of the Canada Water development for British Land, said it amounted to “almost a freehold” over the entire 53-acre site.
The lease for the site of the Daily Mail’s former printworks, which will be part of phase one, had to be extended as residential units cannot be developed on land with 70 years left on the lease, he said.
He also confirmed there was still an outstanding rent review for the printworks site due to an ongoing debate over how its use should be classified, but a deal has been done with Southwark so “that however the experts sort it, it’s just a balancing payment”.
The detailed planning application for the first three buildings at the scheme includes a 35-storey tower (A1) and a new council leisure centre with office space (A2) designed by Allies & Morrison and a smaller Duggan Morris-designed residential building (K1) situated on the other side of the dock to A1 & A2, nearer to Sellar and Notting Hill Genesis’s residential scheme.
The tower and smaller building will house 250 residential units, of which 35% will be affordable. The affordable units will be made up of 70% social housing and 30% intermediate.
British Land is yet to decide whether the non-affordable homes will be for private sale or rent but the building has been designed to accommodate either, said Cariaga.
British Land has previously stated its intention to build a large proportion of PRS at Canada Water.
The tower will also provide 115,000 sq ft of office on the first six floors, with a further 185,000 sq ft of office space to be delivered in building A2.
Some of the office space at Canada Water will be given to British Land’s flexible co-working business Storey.
He added that British Land was in ongoing discussions with several businesses interested in offices at the development.
“People we are talking to are a complete cross-section,” he said.
“We’ve got a couple of FTSE 100s, design-orientated companies and some consultant-orientated businesses.”
The 60,000 sq ft leisure centre, also in building A2, will house an eight-lane swimming pool, sports hall and gym.
The three buildings will also house up to 25,000 sq ft of retail.
Subject to planning approval, British Land is aiming to start work on the site next spring and to have completed the first clutch of buildings by 2022.
In the area to date, residential apartments have reached up to £1,000 per sq ft, while Madelin expects the office space he is to build will attain rents between £45 to £55 per sq ft.
Detailed designs are currently being drawn up by architect Hawkins\Brown and engineer Watermans for the 400,000 sq ft printworks, with one option being a reconfiguration of the building into part office and at least one event venue with possibly a second event space on the roof.
The former warehouses next to the printworks will be demolished to make for several new buildings around a 3-acre park.
British Land is also working on plans for redevelopment of the Surrey Quays shopping centre, which will form part of the first phase.
An architect is yet to be appointed, but the project will include a new Tesco supermarket with possibility of several hundred flats above it.
The current shopping centre, which is to be redeveloped in two parts, is to have a 45-storey tower and will include retail, residential and office space and potentially a hotel.
‘This is as much space in the first phase as is finished today at Kings Cross,” Madelin said.
Overall, British Land is to build up to 2.2m sq ft of office space, up to 1m sq ft of retail space and up to 3,000 new homes with 16 new streets and six towers at Canada Water.
The company is also in discussions with the two local health trusts and Southwark Council about creating a part-senior living part-care facility to help with bed-blocking issues.
The site is partially affected by a viewing corridor for St Paul’s from Greenwich, but the six towers placed around the viewing corridor will range in height up to 45 storeys.
Madelin said at the moment British Land is not partnering up to deliver the development as it has the finances to deliver it on its own, but a joint venture partner could be brought in if British Land decides to push forward with other projects in its pipeline, such as Blossom Street in Shoreditch.
This was boosted last week with the agreement of a new £735m revolving credit facility.
GVA advised Southwark Council on the Master Development Agreement with British Land.
Canada Water masterplan
- Up to 1m sq ft retail and leisure space
- Up to 2m sq ft office space
- Up to 3,000 new homes
Phase One
- 1.8m sq ft
- 1m sq ft office space
- 250,000 sq ft retail and leisure space
- 650 new homes
Detailed planning submitted for three buildings
- 35-storey residential and office tower (A1)
- Office building with council leisure centre (A2)
- Small residential building (K1)
These will total:
- 250 new homes, of which 35% is affordable across two buildings
- Up to 25,000 sq ft retail
- 300,000 sq ft of office space
To send feedback, e-mail Louise.Dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette
