A recent partnership between Aviva Investors and Exemplar Properties has resulted in a ?750 million scheme to revive a central London commercial property scheme. The property is located at the former Middlesex Hospital.
The property development was first launched by entrepreneur brothers Nick and Christian Candy. However, they were forced to abandon their plans after the collapse of Iceland?s Kaupthing Bank, which was responsible for financing the project, in 2008.
According to a report from Mellersh and Harding, the site was lying empty and became all but derelict, despite its status as prime West End commercial property. The new scheme will, however, provide much-needed redevelopment and restore the property?s former lofty status.
In addition, the scheme will cater for a market that has seen an increasing need for property, and particularly for office space in London. Now is a very favourable time for such development ? not only will it fill a material need but also will provide further opportunities for investment.
Figures from commercial property and real estate services adviser CB Richard Ellis showed that the value of central London offices remained strong in June and May. Total returns for these offices were reported at 1.8 per cent in both months, while capital values increased by 1.3 per cent.
The West End development is one of many examples of a vibrant commercial property market in the city.
Interestingly, the report also stated that the new scheme enabled a partnership with the committee responsible for managing Kaupthing Bank?s assets. This committee partnered with Aviva and Exemplar to enable the revival of the property.
