CLS Holdings has received planning permission to develop offices instead of a hotel at its mixed-use site in Vauxhall, SW8.
It is banking on what many will believe will a growing demand for office space south of the river, in part due to the relocation of the US Embassy.
“We have found the capital values of office space is on a par, if not better, than for a four-star hotel. It is more valuable, and offices are less expensive in terms of construction,” said Simon Wigzell, group head of property at CLS Holdings.
Lambeth Council passed a resolution to grant the amendment allowing for 105,586 sq ft of space, which will increase the office element of the scheme to more than 350,000 sq ft, or 30%.
The scheme also includes 454 apartments in two 50-storey towers, 124 affordable apartments, almost 40,000 sq ft of retail and a 186-bed hotel
When asked if offices could also soon surpass residential values in Vauxhall, where many questions have been raised around the over-supply of expensive new build properties, Wigzell remained bullish.
“I am not negative about residential. I think the South Bank piece for resi is very robust – a lot of people forget this whole area is zone 1 London, and this is a 10-year roll-out.
“People get too hung up on quoting the sq ft price, it is actually about the apartment price and how affordable it is.”
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