LDDC and PLA agree Royal Docks sale

News

18 January 1986

The deal, which both parties claim is “very complex”, gives the LDDC a 125-year lease on the King George V and Royal Albert Docks, while the PLA leases back STOLport.

No figures were disclosed, but, as we reported on September 14 last year, a rumoured price tag of beween £10m and £15m was causing trouble with the Treasury.

Negotiations over the purchase of the Royal Docks have dragged on for over a year, so the LDDC embarked on compulsory purchase proceedings.

The inquiry continues, however, and although the PLA has obviously dropped its opposition, the inquiry will still consider the acquisition of some 250 acres belonging to other owners.

The acquisition will boost the LDDC’s land bank by 30%. The corporation intends to clear the site, which is mostly derelict, and put in infrastructure. It hopes to attract private investment to create an ambitious “water city”.

Both the PLA and the LDDC claim to be pleased with the agreement. “We feel that we’ve got a deal that’s helpful to us,” says the PLA. “We still own the freehold, which is what we wanted.”

Baltic Developments have paid £2m for a long lease on the so-called Northern & Shell site on Millharbour Dock in the London Docklands Enterprise Zone.

The Northern & Shell Group have leased existing building at a rent of £140,000 pa, equivalent to £10.50 per sq ft. On the rest of the site, Baltic will develop 14,150 sq ft offices, prelet to the LDDC at a rent of £155,700 pa.

London Leasing Co introduced the site to Baltic on behalf of EPDG Project Development Group (Europe), who will continue to be involved. Grant & Partners advised the LDDC.

Baltic intend to market both buildings as investments. The Northern & Shell offices are being handled by Bernard Thorpe & Partners and Grant & Partners, while London Leasing Co will help in the LDDC office sale.

The Port of London Authority has narrowly averted a public clash with the London Docklands Development Corporation, and while the public inquiry into the compulsory purchase of a total or 750 acres in the Royal Docks started last Tuesday, the PLA sold its holding of 500 acres to the LDDC. The deal, which both parties claim is “very complex”, gives the LDDC a 125-year lease on the King George V and Royal Albert Docks, while the PLA leases back STOLport. No figures were disclosed, but, as we reported on September 14 last year, a rumoured price tag of beween £10m and £15m was causing trouble with the Treasury. Negotiations over the purchase of the Royal Docks have dragged on for over a year, so the LDDC embarked on compulsory purchase proceedings. The inquiry continues, however, and although the PLA has obviously dropped its opposition, the inquiry will still consider the acquisition of some 250 acres belonging to other owners. The acquisition will boost the LDDC’s land bank by 30%. The corporation intends to clear the site, which is mostly derelict, and put in infrastructure. It hopes to attract private investment to create an ambitious “water city”. Both the PLA and the LDDC claim to be pleased with the agreement. “We feel that we’ve got a deal that’s helpful to us,” says the PLA. “We still own the freehold, which is what we wanted.” Baltic Developments have paid £2m for a long lease on the so-called Northern & Shell site on Millharbour Dock in the London Docklands Enterprise Zone. The Northern & Shell Group have leased existing building at a rent of £140,000 pa, equivalent to £10.50 per sq ft. On the rest of the site, Baltic will develop 14,150 sq ft offices, prelet to the LDDC at a rent of £155,700 pa. London Leasing Co introduced the site to Baltic on behalf of EPDG Project Development Group (Europe), who will continue to be involved. Grant & Partners advised the LDDC. Baltic intend to market both buildings as investments. The Northern & Shell offices are being handled by Bernard Thorpe & Partners and Grant & Partners, while London Leasing Co will help in the LDDC office sale.