Land Securities and Beacon Capital Partners have ended a joint venture agreement to develop the One New Change office and retail scheme in the City of London
The Boston-based real estate investment firm had been selected as Land Securities’ joint venture partner on the 560,000 sq ft (52,024 sq m) project in October. One New Change was to have been Beacon’s first significant London development within its new fund.
The companies said today that they had been unable to ‘conclude an agreement regarding risk sharing’.
Mike Hussey, Land Securities' London portfolio managing director, said: ‘We have every confidence in the scheme, are encouraged by leasing enquiries, and are likely to undertake the development by ourselves.’
Paul Parkinson, senior managing director of Beacon, said: ‘Unfortunately Beacon Capital Partners can no longer continue its involvement in One New Change. It is a challenging scheme with many unique attributes and we are disappointed not to be part of its development. We have established a good relationship with Land Securities and will continue to review future opportunities with them as appropriate.’
One New Change will be the City of London's first purpose built shopping centre. Comprising 220,000 sq ft (20,440 sq m) of retail arranged over three levels, the Jean Nouvel-designed scheme will incorporate four 25,000 (2,320 sq m) anchor stores. The development will also provide 340,000 sq ft (31,590 sq m) of office space.