Standard Life Investments’ long-running plans to redevelop the former Tower Records block at Piccadilly Circus have been blocked by The Crown Estate.
In 2010, Standard Life mooted plans for a 100,000 sq ft redevelopment of the upper floors of 10 Piccadilly, W1, and began searching for an agent to help bring forward its proposals.
Leases across the 97,000 sq ft office and retail building had been due to expire this June.
A source said: “The Crown is the freeholder and is taking its time on deciding what it wants for the site and has concerns about changing a Grade II listed building. Talks have been ongoing for a long time without an agreement, but the landlord was clearly told it was not in a position to submit a planning application.”
Standard Life has now re-geared leases on the upper floors – the ground-floor shop is let to fashion chain The Sting – to give it more time to agree aredevelopment plan.
Online gaming group Gamesys has expanded its space in the building by 10,000 sq ft to 34,000 sq ft, while recruitment agency Advantage Professional and musicians’ union IFPI are both retaining their circa 12,000 sq ft offices.
The leases have all been extended until 2016. Rents in the building are around £45 per sq ft.
Strutt & Parker advised Standard Life; Devono acted for Advantage, Mellersh & Harding advised IFPI; Gamesys was unrepresented.
All parties declined to comment.
