Joe Paxton
Established Member
- Joined
- 12 Jan 2017
- Messages
- 2,728
In early 2017, TfL dropped plans to sell 55 Broadway for luxury residential redevelopment and instead opted for a 'sale and leaseback' arrangement:
Can anyone say if TfL's continued use of 55 Broadway is now broadly secure, for the medium term at least?
Transport for London has had a change of heart and declined the sale of its prominent headquarters in St James for a luxury residential redevelopment. The site was initially targeted to become a residential redevelopment in 2013, when values in the London markets were near their peak. The projected sales value totalled approximately £250m at the time, and the redevelopment of nearby New Scotland Yard sold for £370m in 2014 to the Abu Dhabi Financial Group.
However, since then, the values in the London prime market have cooled. Data from LonRes, residential values in Victoria/St James increased by 43% between 2011 and 2014, but since then have declined by 2.2%. The average office value today in the area is £1,398 per sq ft.
Instead, the department will remain in 55 Broadway, SW1 and sell the asset as a commercial office investment via a sale-and-leaseback arrangement.
TFL still have plans of moving to a new 265,000 sq ft office at Lendlease’s International Quarter in Stratford, E15 during 2018.
Can anyone say if TfL's continued use of 55 Broadway is now broadly secure, for the medium term at least?
Last edited by a moderator: