London development pipeline
In June 2013 we committed to the speculative development of 1 & 2 New Ludgate, EC4 comprising two distinct buildings united by a new public piazza. Together they comprise 351,000 sq ft of office accommodation and 30,000 sq ft of restaurant and retail facilities with completion scheduled for April 2015.
Rafael Viñoly-designed 525 ft tall City tower will incorporate premier office accommodation, a café and a unique publicly accessible Sky Garden with three bespoke catering offers - the highest public park in London. 50% owned JV with Canary Wharf Group.
This mixed-use development provides 260,000 sq ft of offices, together with street level shops and restaurants in the heart of Victoria.
Our plans for the 726,000 sq ft mixed-use scheme at Nova, Victoria include a vibrant mix of offices, shopping and residential apartments in the area bordered by Victoria Street, Bressenden Place and Buckingham Palace Road.
Construction of two new developments started in November 2012 with practical completion of Kings Gate scheduled for February 2015 and The Zig Zag Building for March 2015.
We submitted a planning application to the City Corporation in March 2011 to redevelop the existing IPC Tower to provide approximately 250,000 sq ft of new offices. Demolition started in March 2013 and the earliest completion date for this extension to our successful New Street Square campus is June 2016. Our success at New Street Square gives us confidence in the prospects for this scheme, when delivered.
Where the property is not 100% owned, floor areas shown above represent the full scheme whereas all other figures represent our proportionate share. Letting % is measured by ERV and shows letting status at 30 September 2012. Trading property development schemes (e.g. Wellington House, SW1) are excluded from the development pipeline.
Planning status for proposed developments
PR – Planning Received
Total development cost (£m)
Total development cost refers to the book value of the land at the commencement of the project, the estimated capital expenditure required to develop the scheme from the start of the financial year in which the property is added to our development programme, together with capitalised interest, being the Group's borrowing costs associated with direct expenditure on the property under development. Interest is also capitalised on the purchase cost of land or property where it is acquired specifically for redevelopment. Of the properties in the development pipeline at 30 September 2012, there were no properties on which interest was capitalised on the land cost. The figures for total development costs include £152.0m for the residential elements of Kings Gate, SW1.
Net income/ERV represents headline annual rent on let units plus ERV at 30 September 2012 on unlet units.