Stanhope and Cheyne buy ‘landmark’ South Bank office development
Asset manager Stanhope and fund manager Cheyne have bought a ‘landmark’ office development on London’s South Bank with a gross development value of £450m.
Construction on the already-demolished Row One site, which totals 250,000sq ft, is expected to start as soon as next year and be completed in 2028.
Joe Binns, head of investment at Stanhope, called the acquisition a “rare opportunity” to acquire best-in-class office space.
Demand for high-quality, amenity-rich, sustainable office space in London is high and rising, driven by the return to office mandate and a sustainability drive.
Stanhope and Cheyne acquired the site from property investment firm Landsec, which is undertaking an office disposal programme.
“We are firm believers in the appeal of the South Bank as a complementary business district to Canada, with recent activity across both our own portfolio and the wider market, underscoring this confidence,” Binns said.
Row One will comprise two basement levels and 11 floors above ground, delivering around 235,000 sq ft of flexible office space, along with 15,000 sq ft of space for retail, food and drink offerings.
Connected to London Bridge, Cannon Street, Waterloo and Blackfriars stations, the net-zero site will offer “unrestricted” views of St Paul’s Cathedral.
The transaction extends Stanhope’s London office and mixed-use development pipeline, which includes landmark schemes such as 70 Gracechurch Street, One Undershaft, The British Library and 1 Victoria Street.
Nick Grosse, Director in Cheyne Capital’s Real Estate Group, said: “We are delighted to be partnering with Stanhope on a project of this calibre. Their proven track record and delivery expertise make this a highly compelling development opportunity, already benefitting from planning consent and significant site preparation under Landsec’s stewardship.”
“Our ambition is to deliver a best-in-class office building distinguished by exceptional ESG credentials, design quality and occupier amenities. The scheme will offer generous outdoor space and excellent connectivity, meeting the strong demand for premium offices in today’s market.”