Backers sought for Sugar Quay development
A private property company is actively seeking financial backers for a significant office development in a prime London location.
Pace Investments has appointed agents Gresham Down and Savills to secure financial backing for the proposed £200m Sugar Quay speculative redevelopment in the heart of London (pictured). The offices will be located on a prime, landmark site next to the River Thames, offering views of Tower Bridge and The Tower of London.
Pace Investments purchased the existing office building in 2003 for a sum in excess of £30m. The 110,000 sq ft building is let to Tate & Lyle until 2012. Other former tenants MAN Group, who sublet the majority of the floor space within the building, have now relocated to Riverbank House, a 325,000 sq ft office complex also owned by Pace Investments.
Pace Investments want to redevelop the Sugar Quay site at One, Water Lane with a new office scheme offering some 230,000 sq ft of Grade A office accommodation (planning documentation). Designed by David Walker Architects, who also designed the Riverbank House building, the proposed offices will offer large floor plates of approximately 30,000 sq ft within an above-ground, 8-storey building. The existing, 1970’s building is to be demolished. An estimated completion date of 2014 has been given for the proposed development.
Savills have reported that strong demand for prime City office accommodation is driving rental growth and falling vacancy rates are expected. Having recorded a rise in City rental prices of 11% for 2010, Savills are predicting further market growth in 2012.
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