The developer confirmed today it was to undertake its first development outside the Canary Wharf Estate.
As tipped in Property Week (News 03.11.2006) it has teamed up with Exemplar Developments and Morgan Stanley to redevelop the Drapers Gardens scheme in the City of London.
The scheme, near the Bank of England, comprises 300,000 sq ft of office space across 14 floors and is designed by Foggo Associates. Construction will begin in October and the building will complete in 2009.
Canary Wharf Group, which has also bought 20% of the share capital in the companies that own the property, will manage the day to day running of the scheme.
Lehman Brothers is providing a £172.5m construction loan facility.
Jeremy Titchen, development partner at Exemplar Developments, said: ‘The development is due for completion at a time when City office occupational market is expected to be exceptionally strong following further rental growth during 2007 and 2008.’
Richard Archer, head of leasing at Canary Wharf Group, said: ‘This project is a chance for us to demonstrate our construction skills in the City. We hope this will be the first of other similar projects and we are currently looking for other opportunities in Central London.”
CBRE advised Canary Wharf Group. Exemplar and Morgan Stanley were unrepresented.