London & Regional and Chelsfield are considering selling a stake in their £1.3bn Elizabeth House project next to Waterloo Station, SE1.
The pair have appointed CBRE to explore options for the office-led, 1.4m sq ft development and the adviser has approached a selected number of major institutional investors.
The project, known as One Waterloo, is one of the most valuable development opportunities in the UK and will adjoin Waterloo Station, which is undergoing an £800m remodelling over the next three years.
The site at 39 York Road, SE1, is expected to be valued by potential investors at between £250m and £300m. It has planning permission for two main buildings, one of part 29 and part 14 storeys and the other of 11 storeys. It will also include 142 flats.
A spokesman for the joint venture said: “L&R and Chelsfield are fully committed to the delivery of this landmark project, for which planning permission was secured in late 2015. We are confident that the redevelopment of Elizabeth House will provide much needed, large format, but flexible office accommodation and penthouses with panoramic views of a large part of London. While undertaking the preparatory works, we are deliberating on bringing in a new investment partner. CBRE has been retained to assist the partnership.”
Planning was granted in July last year following a protracted process.
An application for the David Chipperfield Architects-designed development was initially made in 2012 and granted consent late that year by Lambeth Council. A legal challenge by Westminster Council and English Heritage, which claimed the development affected sight lines from the Westminster World Heritage Site, was made against the secretary state for not calling in the plans and UNESCO also raised concerns.
The legal challenge was rejected in 2014 but as so much time had elapsed the developers chose to resubmit plans for ratification to avoid a judicial review and they were subsequently re-approved by Lambeth late that year. The secretary of state confirmed that the plans would not be called in last year and the scheme was given the final green light.
From December 2014: Elizabeth House gets planning, again >>
From June 2013: Review sought for Elizabeth House >>
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