Facebook has struck a deal to locate its UK HQ at the Kings Cross Goods Yard regeneration site, kick-starting another major construction scheme spread across three buildings.
East elevation showing new Canal Reach building looking north along Canal Reach
The deal to take 610,000 sq ft paves the way for work to start on 11 and 21 Canal Reach and P2, the last major sites on the long-running regeneration scheme.
While not quite the same scale as the Google HQ at 1m sq ft on the site, it ranks as one of the most significant commercial deals in London this decade – booking 15% of the total 4m sq ft commercial space at King’s Cross at a stroke.
Curving facade of the Canal Reach buildings seen from HS1 railtracks
Buildings 11 and 21 Canal Reach have been designed by architect Bennetts Associates and have detailed planning permission, featuring 10 and 12 floors of modern Grade A office space respectively (415,000 sq ft in total).
With expansive double-height receptions and 42,000 sq ft of landscaped roof gardens and terraces, the buildings located in the ‘Western Yards’ of King’s Cross offer their users uninterrupted views over Central London.
Contractor BAM had previously been mooted as the likely builder for the two curving office blocks on the northern part of the site. But it is not known yet whether Facebook will want to appoint its own builder through a fresh tendering process.
P2 on Lewis Cubitt Square, for which a reserved matters planning application was submitted in June, is designed by Allford Hall Monaghan Morris. It will provide nine floors of office space (196,000 sq ft), alongside a new theatre for London, a fifth-floor wraparound terrace and retail space at ground level.
Facebook plans to open its new offices in King’s Cross in 2021.
Hammerson has decided to defer the start of its £1.4bn extension of the Brent Cross shopping centre.
Laing O’Rourke will deliver the main construction package for joint owners Hammerson and Standard Life Investments.
Enabling works were due to get underway this month.
The Enquirer understands a joint venture between Graham/Hochtief has secured the first major infrastructure works deal.
But the woes sweeping the retail sector have caused a rethink at Hammerson which unveiled a new strategy and cost cutting drive in half year report today.
Hammerson said: “Given the current turbulence in the UK retail markets and whilst alternative uses of capital offer higher short-term financial returns, we have decided to defer the start on site at Brent Cross.
“Whilst we have decided to defer the start on site of the scheme, it remains an important strategic project and we continue to recognise its role as one of London’s leading retail destinations.
“It also forms part of the wider Brent Cross Cricklewood regeneration plans encompassing improved road and rail infrastructure and significant residential development and we remain engaged with retailers and stakeholders towards the future delivery of the scheme.”
There has been a “significant” rise in homes being valued at less than what buyers have agreed to pay, the UK’s largest mortgage advisers have said.
These “down valuations”, by lenders, can mean buyers having to pay thousands of pounds extra, up front, to avoid the sale collapsing.
Estate agents Emoov said it reflected surveyors predicting a financial crash.
UK Finance said lenders, which it represents, were right to ensure property values were realistic.
The organisation said borrowers also benefited from houses having an “independent valuation”.
‘Covering their backs’
The mortgage advisers London and Country told the BBC’s Victoria Derbyshire programme that the number of its advisers seeing down valuations on a daily basis now “outweighs” those who do not.
Emoov, one of the UK’s largest digital estate agents, said one in five of its sales now resulted in a down valuation.
Two years ago, it was fewer than one in 20, it added.
This is the highest rate since the UK’s financial crash in 2008, according to agents from 10 mortgage adviser groups contacted by the Victoria Derbyshire programme.
Emoov’s chief executive Russell Quirk said he believed it was the result of surveyors – who carry out the property valuations for the mortgage providers – “simply covering their backs”.
He added: “Surveyors are prophesying a [financial] crash. The system is built to protect them.”
Down valuations
After a buyer agrees the price of the house with a seller, the mortgage provider uses a surveyor to check what they believe the house is worth.
The surveyor, employed by the mortgage provider, looks at the sale price of similar properties locally, market conditions in the area and the current condition of the property.
If the surveyor believes the house is worth less than the agreed sale price, say by £10,000, this is known as a “down valuation”.
It means that if the buyer cannot negotiate a new price for the house with the seller, they will have to find the extra £10,000 up front or risk losing the house.
Those with the smallest deposits and who have remortgaged their house after doing renovation work are most likely to be affected by down valuations.
Down valuations have been blamed for an increase in housing chains breaking down across the UK.
Ebony Roberts and her fiancee Jalisa Andrews, from Port Talbot in South Wales, have experienced two down valuations while trying to buy their first home together.
“We got right through to the very end stages of buying a house we had our hearts set on… but then we had a problem when the mortgage valuation came back,” Ms Roberts said.
“We had a down valuation of £10,000. The seller would not drop their price, so we lost that house.”
Then it happened again, on another property.
Worried they would lose that house too, they borrowed £5,000 from family members at short notice.
“Our broker even said, ‘You’re having a bad run,'” explained Ms Andrews.
Image caption Phil Broodbank says the surveyor did not look inside his house when valuing it
Those remortgaging their houses after doing renovation work are also among those most affected by down valuations.
Phil Broodbank, from Wirral, bought his house for £180,000 a few years ago and spent up to £25,000 renovating it.
When the time came to remortgage, a surveyor valued his house at £200,000 without visiting it in person – in what is known as a “drive by”.
This valuation was £20,000 lower than a local estate agent had valued the property.
Mr Broodbank blames the surveyors for what happened.
“They didn’t actually take a look at the property. For all they know the inside could be a complete shell.”
The surveyor’s valuation would have meant Mr Broodbank paying around £50-a-month extra on his mortgage over five years, as his interest rates would have been higher.
Instead, he says he lost hundreds of pounds in fees by choosing to go with another bank, who valued his property at £220,000.
UK Finance, which represents the banking industry, said: “Lenders have a responsibility to ensure that the value of property taken as security on mortgage loans is current and realistic.
“Although the valuation is carried out for the lender, borrowers also benefit from a realistic independent valuation as it could help them avoid paying over the odds for the property they are buying.”
Haringey Council has ripped-up its planned £2bn regeneration deal with developer Lendlease.
The decsiion was made by the Haringey council cabinet
The north London borough’s cabinet confirmed the decision at a meeting on Monday night.
Lendlease was chosen last year to partner the council under its Haringey Development Vehicle JV to build 6,400 new homes across the borough over the next 20 years.
The scheme has provoked opposition which has intensified since May’s local elections which saw a number of Labour councillors deselected and the fomer council leader resign.
Lendlease is understood to be considering legal action following the decision after spending millions on bidding costs.
Developer Qatari Diar has submitted plans for the final phase of its £1bn Chelsea Barracks residential scheme in West London.
Phase 6B has been designed by architects Piercy & Company and Squire & Partners
Mace is nearing completion of phases 1-3 of the Chelsea Barracks scheme, as plans have been submitted for the final Phase 6B element of the scheme, which will be a hub for the local community.
This hub area will include 126 extra-care and affordable housing units, a two-storey public sports centre, four shops and an NHS medical centre.
Medical centre in final phase of Chelsea Barracks
Work on phase 4 of the Ebury Bridge Road luxury residential project stalled back in March this year not long after specialist contractor Keltbray had started enabling works and main contractor Multiplex was due to start.
This £200m part of the project is now being rebid with Balfour Beatty, Bouygues, Lendlease, Mace, Multiplex and Skanska all understood to have taken a look at the next phase.
Forming part of the 12.8-acre masterplan, Phase 6B comprises a number of additional public benefits, which goes above and beyond that dictated in the original outline consent.
A spokesperson for Chelsea Barracks, said: “We are thrilled that we have been able to finalise the last chapter of Chelsea Barracks, by revisiting the masterplan to finesse the offering within Phase 6B.
“We identified that there was an opportunity to make a significant contribution to the community, and have over delivered on the number of homes, size requirement of the gym and the facilities and are looking to create a comprehensive retail offering to cater for the community.
“Phase 6B will be for the benefit of both future and existing residents of this thriving neighbourhood.”
Canary Wharf Contractors is preparing to start work next year on the second phase of the vast Wood Wharf scheme in London Docklands.
Phase 2 of Wood Wharf development represented with transparent blocks
The group is pressing ahead with the 700,000 sq ft next major phase despite concerns about Brexit and softening of the residential apartment market in the capital.
The next phase of its Docklands scheme will consist of seven buildings of which 390,000 sq ft will be offices, 165,000 sq ft residential and 235,000 sq ft retail and leisure use.
Design consultants have been appointed and design and town planning work is in progresses with construction of the first buildings expected to start next year.
The firm also confirmed it is to start work on the 15 Water Street commercial project before the end of the year after securing a leasing deal with a hotel group and occupier for the office component.
Work to start this year on 15 Water Street mixed hotel and office building
This phase one Wood Wharf project will unusually for the scheme have a red brick envelope. It will comprise over 180,000 sq ft with a 312-room hotel on the lower floors and offices above.
The project designed by Allies and Morrison is scheduled to complete in Q2 of 2021.
Progress on Wood Wharf phase one
Work is due to complete on 10 Park Drive, a 345-flat residential tower block at the end of next year.
Two further buildings for rental are also now under construction, while One Park Drive – a 750-storey Herzog & de Meuron design cyclindrical tower – will be completed in late 2020.
Developer Delancey’s revised application to redevelop the Elephant & Castle shopping centre in South London has finally got the thumbs up.
The vast redevelopment will be phased over 10 years
Southwark Council’s planning committee narrowly voted in favour of the vast redevelopment scheme, which will employ 1,230 construction workers per year across the 10-year build.
The iconic shopping centre will be replaced with a new town centre style scheme which will form the heart of the wider Elephant & Castle regeneration scheme being delivered by Lend Lease.
Delancey will use Mace as construction manager for the complex scheme.
Part of the central shopping area
As well as over 170,000 sq ft of new shops and restaurants there will also be a 1,000 seat multi-screen cinema and a 500-audience capacity grass-roots cultural venue.
The scheme designed by Allies and and Morrison also includes several housing blocks providing for nearly 1,000 homes. There will also be a landmark building for the London College of Communication.
Full approval is subject to the completion of a Section 106 agreement and the Mayor of London nodding through the plan amid calls from protestors for greater social housing provision.
London College of Communications will get a new building (left), vacating a site to the west of the shopping centre to make way for new housing (front)
Cllr Johnson Situ, cabinet member for development, growth and planning, said: “This is a complex scheme that will create a vibrant, new town centre, which is a key part of the wider regeneration of Elephant and Castle bringing new homes, jobs and opportunities to the area. Investment in the area is essential to bring forward these benefits.
“The scheme also critically will provide an opportunity to improve both the Northern Line station, which TfL have stated is urgently needed with the station currently operating above its capacity, and National Rail station.”
Stafford Lancaster, Investment Director, Delancey:“Our proposals offer a once in a lifetime opportunity to deliver a new town centre for the area, with each of these elements dependent on being delivered together.
“This includes a modern transport system, and a commitment to maintaining the area’s unique and vibrant culture.
“The new town centre will include a range of high street and independent retailers, enhanced restaurant and leisure opportunities and much needed housing on a site where there is currently none.
“It also ensures the long term future of UAL’s London College of Communication at Elephant and Castle, and the relocation of the University’s core services to the area and the employment opportunities this will bring.”
