Lend Lease and Southwark council have agreed heads of terms for the £1.5bn regeneration of London’s Elephant & Castle.
Last night Southwark council’s executive committee also agreed to the current exclusivity arrangement remaining in place to enable both parties to work together to formalise a Regeneration Agreement in 2010.
The project comprises over 3m sq ft of new build, mixed-use development, together with major infrastructure improvements and a range of enhanced community facilities.
The scheme comprises six phases. The first phase of demolition is scheduled to commence in February 2010. Detailed planning consent for the first phase is expected to be achieved by April 2011.
Last Tuesday the council failed to rubberstamp the heads-of-terms agreement with Australian developer Lend Lease, with a split understood to have grown over the rephrasing of the project.
Today’s agreement enables Lend Lease to buy the 25-acre Heygate Estate and push on with a residential redevelopment of the site ahead of the rest of the 70-acre project.
Development of the shopping centre would be pushed from phase one to phase six of the project, with work beginning only when practically possible.
Executive members blamed the centre’s shelving on: proposed changes to
Both parties today expressed their commitment to work together on the redevelopment of all six phases of the site.
Steve McCann, chief executive officer of Lend Lease, said: “Elephant & Castle is a major inner city, mixed-use regeneration project. We are very pleased with the Council’s decision and look forward to being a partner in the delivery of this landmark project which strengthens Lend Lease’s position in the
Dan Labbad, chief executive officer Lend Lease Europe, said: “We are still committed to redeveloping the shopping centre as it gives a much better regeneration effect. But retail has been the hardest hit by the downturn and we have to ride the market dynamics until the rents needed can by substantiated.”
paul.norman@estatesgazette.com
