The final results of the 2012 Olympic Games’ real estate legacy are with the judges. Lisa Pilkington reveals which contestants are packing medals in their suitcase
Four years ago London’s Olympic games marked a turning point, and not just for the UK’s athletic ambitions. Unlike other host cities such as Athens, Sydney, Beijing and Barcelona, where legacy plans were arguably more of an afterthought and have since been viewed as abject failures, London’s Olympics legacy agenda was part of the plan right from the inception of the UK’s bid.
The 10-year legacy regeneration project for the 560-acre Olympic Park in Stratford, E15, kicked in after the Games ended and the London Legacy Development Corporation took over ownership of the park and venues in October 2012. It also became the local planning authority for the area and is responsible for delivering the physical legacy of the Games.
Four years into the 10-year vision, is it gold, silver or bronze for London’s Olympic legacy plans? Neal Matthews, director at Strettons, says: “The legacy plans certainly deserve a gold medal. Like Usain Bolt, they would win gold for their speed. The area has taken off
much quicker than previous areas in London.”
Alessandro Zoppini, director of sports at Gensler, who has designed sporting venues for three different Olympic Games, says: “The Queen Elizabeth Park is by far the greatest legacy of the 2012 Olympics. It is a fantastic example of the rejuvenation of a derelict wasteland, and provides a new lively urban space for London to enjoy.”
We consider how the constituent parts of the Olympic site are faring and award our own medals for progress so far…
Offices
Stratford has gone from urban wasteland to grade-A office location. Two major prelets totalling 775,000 sq ft to Transport for London and the Financial Conduct Authority are under construction at Lendlease and LCR’s International Quarter.
The challenge here is to net some corporate tenants, which may otherwise consider Canary Wharf, E14, or, further down the line, Canada Water, SE16. Yet Kevin Chapman, head of offices at Lendlease, says there are no plans as yet to go ahead with another speculative building, although Lendlease is working up detailed plans for the next office blocks at the International Quarter. He adds: “We want a diverse mix of tenants. We have had a lot of interest from firms in the City and Canary Wharf.”
While a £20 per sq ft differential no doubt helps, Chapman admits there is still “a job to do in terms of perception”, but says Stratford’s three railway stations being re-zoned from Zone 3 to Zone 2 last January has helped.
Westfield sold the first building on its 1m sq ft office campus to Tristan Capital Partners’ Curzon Capital Partners IV fund in April 2015. The 130,000 sq ft 1 Stratford Place, E20, sold for £70m – a 6% yield.
Residential
A key element of the Olympic legacy, the Olympic Village, has been transformed into East Village by Qatari Diar and Delancey. Now London’s largest private rented sector village, it currently has 2,900 homes built and occupied. Social housing for local residents is a key part of the legacy and is included in the development. The next phase comprises a further 2,000 homes.
Lendlease is also building 330 flats, while Manhattan Loft Corporation is building an eye-catching 42-storey residential and hotel tower opposite Stratford International station that is due to complete in 2018.
Once out on a limb, the area now boasts some of the best transport connections in central London. Katie Kopec, director at JLL, says: “The family housing coming through at Sweetwater and East Wick will help to boost much-needed supply and create new communities along with the Olympic Village.”
Retail – Westfield Stratford
Westfield Stratford City was the first phase of regeneration at the park and opened ahead of the Games in September 2011. As Europe’s largest urban shopping and leisure destination, at 1.9m sq ft, the £1.8bn scheme is a huge success, attracting 48m visitors in its first year and generating £896m in sales.
With 280 shops anchored by John Lewis, 70 bars, an Aspers casino and a 17-screen Vue cinema the scheme also has three successful hotels and the 130,000 sq ft One Stratford Place office block.
Creative and tech hub
Here East is the Delancey-led regeneration of the former Press and Broadcasting Centre on the Olympic Park into a 1.2m sq ft campus for companies in the technology, media, education and data sectors. The scheme initially struggled to find tenants but is now more than 50% prelet, with rents at around £30 per sq ft.
Olympicopolis and ArcelorMittal Orbit
Work is expected to begin on site in 2018 on Olympicopolis, a world-class education and cultural district in the south of Queen Elizabeth Olympic Park that will house Sadler’s Wells, the Smithsonian Institute and the V&A Museum. Completion of the £850m project is due in 2022.
Sir Anish Kapoor’s £23m shisha pipe-shaped ArcelorMittal Orbit sculpture has now been turned into the world’s highest and longest slide and will open later this month, with LLDC hoping to recoup the £3.5m cost within five years.
Olympic Stadium
The stadium is the last venue to open permanently on the park with West Ham United FC moving to the ground this summer. Cost concerns over reconfiguring the stadium to a 60,000-seat multi-purpose stadium equipped for Premier League football and athletics have been an issue. However, Katie Kopec, director at JLL, says: “The sporting element of the Olympics is alive and well, with the London anniversary games in July attracting all the major athletes in advance of Rio.”
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