The Pinnacle – or to use its more recent moniker, the Stump, after it stalled at seven storeys last spring – may finally be set to progress. And with investors continuing to pile into the Square Mile the timing could yet be right.
A look back at Estates Gazette’s earliest coverage of the troubled development in 2005 suggests a certain scepticism even then. “Will the Bishopsgate Tower survive the planning process? Will a German fund that has had its share of troubles back home be able to risk the £300m-plus development costs? But, most of all, will the office space let?”
To that we could have added: “With four towers planned in and around the City, will it be the Pinnacle that loses out?” And, had we had a level of foresight that evaded the entire globe back in the boom, we could have added: “At £1bn and pricier than the Shard, the Walkie Talkie and the Cheesegrater, can the Helter Skelter survive an economic crisis that brought many developed economies to their knees?”
Still, that was yesterday – and we have no time to mention the investor lawsuits that have also bedeviled the development – this is today.
CBRE has been appointed to bring to market a major stake in the building. Investors – especially sovereign wealth funds – should expect a call by September asking whether they have £500m or so looking for a home.
Also under review are the plans for the tower itself. At £1bn, the overall development costs felt pricey in better times; they are simply too expensive today. The overall size – 1m sq ft – may not change, but costs need to come down.
The Pinnacle should have been the first of the City’s new crop of towers to complete. It should have been ready to take full advantage of the glut of lease breaks over the next two years.
But there is little point worrying about that now. Occupational demand in the City continues to recover. Investor demand remains strong.
And with David Cameron and the prime minister of Malaysia presiding over the ground breaking ceremony at Battersea Power Station on Thursday, there’s precedent: even the most seemingly doomed project can be resurrected.
• So often a byword for civic failure, Croydon has genuine grounds for optimism. The decision by Nestlé last year to quit the south London borough was seen as a nail in the coffin of the office market, but ambitious plans to convert the tower the food giant had occupied into flats would compensate. (And with Berkeley’s Saffron Square scheme a resounding success, there is a proven model to emulate). Meanwhile, Westfield’s and Hammerson’s plans for the Whitgift Centre will go before planners in September.
There was a buzz at the LIVE Croydon conference at the soon-to-be-refurbished Fairfield Halls on Monday. And with a Premier League football team now in the borough – the power of sports-led regeneration should never be underestimated – things are looking up. Too often, though, defeat has been snatched from the jaws of victory in these parts. Without wishing to heap further pressure on the team, perhaps much rests on Crystal Palace’s ability to survive back in the top flight.
• As Estates Gazette went to press on Thursday night, our latest Question Time event kicked off at the Shard. The lure of the building and a stellar panel – its developer Irvine Sellar, Savills UK chairman Mark Ridley, Crossrail property director Ian Lindsay, iCITY chief executive Gavin Poole, Lloyds Bank’s Richard Dakin, Google architect Simon Allford and Linklater’s Andy Bruce – ensured a full house, with the event broadcast live online too. ?If you missed it or want to simply want to listen again visit here.
damian.wild@estatesgazette.com
