Lendlease and LCR have announced the forward sale of 265,000 square feet of commercial space to Legal & General at The International Quarter - the £2.3 billion development at Stratford, which, at a total of four million square feet, is one of the largest new commercial developments in London.
The Transport for London (TfL) building - which is in the early stages of construction - will sit at the gateway to Queen Elizabeth Olympic Park and will house 3,000 TfL employees from autumn 2017. In acquiring the building, Legal & General will make staged payments over the course of the development period up to a total consideration of circa £245 million. Lendlease and LCR will continue to manage the delivery of the building through the Stratford City Business District Ltd joint venture.
Confidence continues to grow in The International Quarter. In addition to the agreements for lease and forward sale of the TfL building, the Financial Conduct Authority (FCA) has also committed to 425,000 sq ft of space to move its headquarters and 3,800 employees to Stratford in 2018. Lendlease and LCR are also in advanced discussions with a number of other major commercial tenants about moving to the development.
Dan Labbad, Chief Executive Officer, International Operations at Lendlease, said:
“Lendlease is creating some of the best places around the world. The International Quarter will add to this legacy, providing some of the most agile, healthy and flexible workplaces in Europe. Today’s announcement illustrates the confidence the investment market has in this approach and the opportunity presented by The International Quarter, London’s fourth major business district. This is a fantastic example of how the Olympic legacy continues to bring lasting prosperity and employment opportunities to East London.”
David Joy, Chief Executive of LCR, said:
“Today’s announcement unlocks further value from The International Quarter, a major new employment hub in East London. Our partnership with Lendlease will bring 25,000 new jobs to the area by 2025, continuing the transformation of Stratford into one of London’s most vital and vibrant communities.”
Gordon Aitchison, Director of Investment and Development at Legal & General Property, added:
“A significant new growth area for London, it is anticipated that Stratford will benefit from the creation of more than 40,000 new jobs and 11,000 new homes in the coming years. Stratford is already one of the busiest transport hubs in the capital and the property forms the first exciting phase of Lendlease and LCR’s International Quarter development which will eventually provide 4m square feet of office accommodation.”
JLL represented Lendlease and LCR, and Cushman & Wakefield represented Legal & General.