TH Real Estate has abandoned immediate plans to seek an investment partner for its 900,000 sq ft redevelopment of Leadenhall Triangle, EC3, and intends to start demolition in January.
Cushman & Wakefield was instructed to find a partner for the 2.5-acre site, which has planning consent for an office-led scheme known as “Gotham City”, at the start of the year. The opportunity attracted interest from investors including Cheesegrater owner CC Land and Chinese office developer Soho China.
However, TH Real Estate has now halted the hunt for an investment partner while it prepares the site and seeks to secure a major prelet ahead of starting construction. It is understood the shift in strategy is part of a plan to retain as much of the upside as possible from the proposed development.
The investor is currently dealing with rights of light issues ahead of a planned start to demolition in January next year. A decision will subsequently be made on whether to progress with the new building. A spokesman said: “It remains our intention to secure a major prelet ahead of a start, although that decision will be reviewed during the course of the year.
“The presence of a major prelet will make it easier to fund. While we are demolishing we will maintain an open mind to funding options.”
The site was acquired in 2011 through Henderson Global Investor’s Central London Office Fund and Central London Office Fund II in partnership with Canada’s largest institutional investment fund Alberta Investment Management Corporation.
It was bought from administrators appointed in 2010 following the borrower’s default and a review undertaken by Cooke & Powell, which was engaged as strategic property adviser by Hatfield Philips International as special servicer of the loan. AIMCO has retained its position in the joint venture. The Make-designed scheme, which ranges in height from seven to 34 storeys, has an estimated build out cost of $1.5bn (£1.2bn).
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