The London business of Japanese development group Mitsubishi Estate has acquired a 50% stake in Legal & General Property's 23,225 m2 speculative office development at Hammersmith Road, both sides announced on Friday as the real estate sector mulled the implications of the 'Leave' result of the referendum on whether or not the UK should stay in the EU.
The project at 245 Hammersmith Road, W6 has a gross development value of £275 mln (€338 mln).
The newly formed partnership will speculatively develop the new scheme, designed by Sheppherd Robson, which already has planning consent from Hammersmith & Fulham Council. Following the demolition of the existing structure, the joint venture will deliver a building comprising a basement, ground and 11 upper storeys.
Yuichiro Shioda, managing director & CEO of Mitsubishi Estate London: 'This will be Mitsubishi Estate London’s fifth development, following the recent completion of 8 Finsbury Circus in the City, which already boasts more than 60% of the building let. This latest deal further cements Mitsubishi's commitment to an ever-expanding London and to flagship office development. We take pride in meeting occupiers’ needs and creating a better local environment for communities.
Simon Wilkes, head of business space development, Legal & General Property, added: '245 Hammersmith Road will be much more than just an office building; we are creating a destination with modern working and lifestyle trends at the core of our thinking. It will set a new standard for Hammersmith. There is still a lack of Grade A development taking place which means we are set to benefit from rental growth. We are already seeing high levels of interest from blue-chip occupiers, who are particularly drawn to the design and location of the scheme, especially given the competitive nature of the rents compared to the West End.'
Maximum flexibility
The office space has been designed with the floor plates and servicing to provide the maximum level of flexibility. The building includes four retail or leisure units comprising a further 858 m2 and a 110 m2 work lobby café, as well as an extensive public realm, including a new urban park and plaza to the Hammersmith Road.
Construction is due to start in July and the scheme will be completed in the first quarter of 2019. CBRE and Nabarro advised Mitsubishi Estate London. Eversheds advised L&GP.
LGP is the fourth largest institutional property fund manager in the UK, managing or co-managing 17 separate funds or vehicles including three segregated mandates with an aggregate asset value of £18.1 bn at end-March 2016.
Mitsubishi Estate is Japan's top real estate developer and one of the world's largest comprehensive real estate companies. Its total assets are around £33 bn at end-March 2016 and it currently operates in the US, Singapore, China and the UK.
Since its first acquisition in London in 1985, Mitsubishi Estate London has been involved in the development of Bow Bells House, Central St. Giles and 8 Finsbury Circus. Its portfolio exceeds 92,000 m2. In 2014 the company expanded its operation into continental Europe and acquired an office building in the central business district of Paris.
