The venture project between Qatari Diar Real Estate Investment Co. and the Canary Wharf Group recently entered into an agreement with Almacantar SA for the sum amount of £550 million or about $857 million. In a report from Bloomberg.com, the money paid was for two office buildings located in the South Bank District of London.
The head of Almacantar SA is the former executive of Land Securities Plc, Mike Hussey. His company is purchasing two buildings near the Waterloo Railway Station just before the structures are completed by 2018. There is already a lessee to one of the buildings, the Royal Dutch Shell Plc while the other one is still open for tenancy.
According to Hussey, "The area around Waterloo Station has the potential to grow into one of the best mixed-use destinations in London."
The said transaction is the largest for the area, as rental rates continue to climb as lack of space and expensive rents are forcing many from the West End to move elsewhere. The rates at the South Bank cost around £57.50 per square foot compared to Mayfair's £117.50 per square foot and Soho's £85.00 per square foot. The rates were confirmed by Jones Lang LaSalle Inc.
One of the buildings, as previously mentioned would be the corporate headquarters of Royal Dutch Shell Plc in London. The edifice, named One Southbank Place according to a report from cityam.com, would be the center of the downstream oil business of the firm.
The plan though is not without its share of detractors. The English Heritage, the Westminster Council and George Turner, a local activist, had petitioned the courts for an injunction be issued for the project. UNESCO issued a warning that the project can undermine the status of Westminster Palace as a World Heritage Site.
Former Communities Secretary Eric Pickles had overruled the petition, saying that the project would 'provide accessible jobs and homes, and enhance the character of the South Bank area.'
