A pair of super-prime West End residential schemes are set to be reworked as office developments amid concerns about over supply and a planning crackdown.
Pembroke’s 20-21 St James’s Square, SW1, which was quietly offered for sale as a residential opportunity last year, has now been formally brought to market as an office scheme.
The 70,797 sq ft block was considered a prime candidate for a residential conversion, following a string of sales of West End offices to resi developers.
However, Westminster city council has recently shifted its policy towards conversion amid concerns it is facing a shortage of office space, having lost 1.8m sq ft to housing in the past four years, according to the Westminster Property Association.
Marketing material bills 20-21 St James’s Square as “a commercial redevelopment” which “would be well-timed to benefit from the acute shortage of competing supply”.
At the same time, Derwent London has confirmed it is re-evaluating plans for its 42,300 sq ft Mayfair headquarters at 25 Savile Row, W1 (pictured above).
The block has permission for a 58,000 sq ft residential redevelopment comprising 29 flats and 5,600 sq ft of shops.
But the company is now considering retaining the block for office use to take advantage of rising rents, which have been inflated by the supply shortage.
Chief executive John Burns said: “We feel the market may be going a little softer in residential. And West End offices have really started motoring – we are not so certain how viable a resi scheme would be against an office scheme.”
