With the London commercial property market an unaffected bubble economy in today’s uncertain financial times, many London commercial property owners believe investing in their commercial property is a wise move.
However, with available capital tight many are looking to alternative ways of investing in London’s commercial property.
One building which is benefiting from such investment is landmark London commercial property, the Shell Centre. Located on the South Bank of the Thames, the building is situated between Waterloo Station and Hungerford Bridge.
The Shell Centre is owned by oil giants Shell International Ltd and acts as the company’s UK headquarters. The building comprises of a skyscraper tower and three nine-storey wings and forms the backdrop to the London eye.
Qatari Diar Real Estate Investment Company and Canary Wharf Group have signed a property development agreement with Shell International ltd to refurbish the building. Both companies will now contribute £150 million to redevelop the Shell Centre, securing the 5.25 plot on a 999-year lease.
Canary Wharf Group, who will be acting as the construction manager, owns roughly 100 acres of property in and around the Canary Wharf are of London and therefore saw the chance to refurbish one of the area’s most notable commercial properties as an excellent opportunity.
In the complex deal, Shell International is set to retain the freehold to the building and will continue to occupy the Tower section of building, whilst also taking 210,000 sq ft in a new building on site for its London headquarters.
Graham van’t Hoff, Chairman of Shell UK 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.’
