Land Securities has instructed agents to offer five-year leasing deals at Victoria landmark Portland House, SW1, effectively shelving a long-mooted residential conversion of the building.
The 307,000 sq ft tower has consent for residential conversion, but LandSec has repeatedly postponed the scheme.
It first delayed pursuing the David Chipperfield-designed 206-flat redevelopment ahead of the general election, when the prospect of a Labour Party victory raised the potential for the introduction of a mansion tax on high-value homes.
The latest longer-term decision to postpone enacting the 2013 consent comes after a significant slowdown in the luxury residential market, which has been outperformed by the boom in West End office rents.
LandSec leased 16,500 sq ft in the building to Ten Alps this summer, meaning it is now fully let.
It will now seek to regear leases with upcoming expiries or offer the space to potential new tenants on leases expiring in 2020.
CBRE and Tukerman are joint letting agents.
chris.berkin@estatesgazette.com
