LandSec confirms Walkie Talkie jv with Canary Wharf

 

Land Securities has confirmed that it has formed a joint venture with Canary Wharf Group to build its 37-storey City office tower, the Walkie Talkie.

 

 

 

The REIT has sold the cleared site at 20 Fenchurch Street, EC3, and some neighbouring shops to the 50:50 partnership for £90.2m, in line with the March 2010 valuation.

 

The 690,000 sq ft building will cost around £500m to build and work is expected to begin immediately.

 

Canary Wharf, the owner of the Docklands Estate, has agreed with its shareholders Qatar Holdings, Chengdong Investment Corporation and Morgan Stanley to take a total of 35% of the total venture – a stake of just more than 10% each.

 

Completion of the ground floor level is planned for February 2012. Construction of the superstucture will follow, with completion of the project anticipated in the second quarter of 2014.

 

Land Securities and Canary Wharf Group have been appointed as joint development managers and both are responsible for the leasing, with LandSec taking the lead.

 

Canary Wharf Contractors, a wholly owned subsidiary of Canary Wharf Group, has been appointed as construction manager.

 

Robert Noel, managing director of Land Securities’ London Portfolio, said: “Earlier this year, we announced our intention to carry out this project in joint venture and we are delighted to have teamed up with Canary Wharf Group to do so.

 

“The joint venture brings together two substantial companies with complementary skills in the conception and delivery of large schemes in London. The transaction allows us to take forward other projects within our substantial development pipeline in London so that we offer a range of building types and sizes in a range of locations across the capital.”

 

Canary Wharf Group chief executive George Iacobescu said: “We are looking forward to this opportunity to apply our extensive experience as a developer of large, high-specification and bespoke office buildings for a diverse range of clients. We are also delighted that on this occasion we will be working alongside Land Securities with its own impressive pedigree and track record.

 

“This joint venture project will provide further evidence of our approach to the development and construction of very high quality buildings in London.”

 

GM Real Estate advised Land Securities.

 

bridget.oconnell@estatesgazette.com

 

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