Qatari Diar Real Estate Investment Company and Canary Wharf Group have signed a deal with Shell International to redevelop the Shell Centre site on London’s South Bank.
The two companies have entered into a 50:50 joint venture, and will each contribute £150 million to secure the 5.25 acre site on a 999-year lease.
Canary Wharf Group will act as the construction manager for the project and will also be joint development manager with Qatari Diar.
Development of the famous building will be mixed use, comprising office, retail and residential space. The well-known 1950s, 27-storey tower in the middle of the Shell Centre will be preserved and retained by Shell. Shell will also take a 210,000 square foot pre-let of one of the new office buildings to be constructed on the site.
Commenting on the news, George Iacobescu, chairman and chief executive of Canary Wharf Group, said: “The South Bank is one of London’s best loved places. It is both a privilege and a great responsibility to be involved in this redevelopment project which will re-energise a key part of this area of London. We look forward to working with our partner Qatari Diar, the local community and with Shell to enhance the London economy and the vibrancy of the South Bank.”
Mohammed bin Ali Al Hedfa, group CEO of Qatari Diar, said: “Qatari Diar is delighted to have signed this agreement with Shell. We look forward to working with our partners at Canary Wharf Group and the local community to redevelop this iconic location. When Qatari Diar begin any new project we are entering into a long-lasting commitment with our partners and the wider community to leave a positive cultural, environmental and sustainable footprint.”
Graham van’t Hoff, chairman of Shell UK, added: “Today we have chosen world acclaimed developers that have an excellent track record in delivering on projects of this size and scale” said “This is a great step forward and represents considerable reinvestment in the South Bank. Shell Centre is our long-term home in London and we’re keen to start working with Canary Wharf Group, Qatari Diar and local stakeholders to develop and deliver a project that will benefit both London and the local community.”
Discussions will now commence with local planning authorities and relevant stakeholders to establish planning consent, detailed designs and a timetable for construction. The aggregate £300 million payment for the site is conditional on planning permission being received for the project within three years.
The Shell Centre will be Canary Wharf Group’s fourth project away from the Canary Wharf Estate. Over the past 20 years the company has regenerated derelict wharves into one of the world’s premier business and shopping districts, constructing over 15 million square feet of office space. These buildings are occupied by 95,000 people.
Wholly owned by the Qatar Investment Authority, Qatari Diar Real Estate Investment Company was established in December 2005 and is currently involved in more than 35 signature projects in more than 20 countries around the world.
