Plans are being drawn up to create a new landmark building at one of Europe’s premier addresses.
Fund manager Hermes wants to redevelop a rectangular block totalling almost 90,000 sq ft on the north-east corner of St James’s Square, W1 (see map).
Director of asset management Bob Dawson said Hermes would submit a planning application by the end of the year for the three properties, which the fund had held for over a decade.
The largest building on the site is 8 St James’s Square, a 1700s red brick building let to Universal Music. It is not listed and, with the adjacent 7 Apple Tree Yard, totals 55,000 sq ft. The third building, 7 St James’s Square, is a 1911 Lutyens-designed Grade II listed building, so will remain at its existing size of 13,500 sq ft, but will be refurbished. It is let to the government.
“We would be looking for 65,000-75,000 sq ft on Apple Tree yard and 8 St James’s Square, depending on design,” said Dawson. “We’ve got a small project team looking at redevelopment and refurbishment opportunities. We’re stress testing ideas.”
All leases fall in in 2007. “We don’t want to leave it too close to vacant posession,” he said.
The site also includes a courtyard, which could be filled in or used to create an atrium in the new scheme.
Jones Lang LaSalle is advising Hermes on the various options.
One of the last new developments in St James’s – Harwood International’s Cleveland House at 33 King Street — achieved over £90 per sq ft at the end of the last cycle, with a letting to US fund manager Elliott International in 2000.
“Hermes could potentially create another Cleveland House,” said a West End agent.
“This is the only West End scheme we are doing,” said Dawson. “There aren’t many opportunities to do something of significance, particularly on the square.”
The fund hopes to complete it by the end of the decade.
