By Andy Sambidge
Qatar developer to contribute nearly $245m as part of joint venture plan for Shell Centre in capital city
UK developer Canary Wharf Group and Qatari Diar Real Estate Investment Company have concluded an agreement with Shell International to redevelop the Shell Centre site in the heart of London.
The two companies said they have entered into a 50:50 joint venture, contributing £150m ($244.9m) each to secure the 5.25 acre site on a 999 year lease.
The aggregate £300m payment for the site is conditional on planning permission being received for the project within three years.
Canary Wharf Group will act as the construction manager for the project and will also be joint development manager with Qatari Diar.
Discussions will now start with local planning authorities and relevant stakeholders to establish planning consent, detailed designs and a timetable for construction for a project that will re-energise an important section of the South Bank.
The development 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 sq ft pre-let of one of the new office buildings to be constructed on the site, a statement said.
Commenting on the agreement, 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.”
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.