Developers are more cautious after the Brexit vote, says client boss Chris Grigg

British Land鈥檚 chief executive has said its newly-approved 2-3 Finsbury Avenue Square tower scheme in the City is not likely to proceed without a pre-let.

Speaking to 好色先生TV, Chris Grigg said the developer was looking for occupiers for the Arup-designed commercial scheme, which won planning this week.

Grigg said: 鈥淲e are looking for a pre-let before a redesign and build.鈥�

In updates to investors in the run up to the EU referendum in June, British Land had placed the scheme in its 鈥渕edium term pipeline鈥� and not specified whether or not it would be developed speculatively once it won planning permission.

Grigg added it was 鈥渁 different world post-Brexit vote鈥�, commenting that developers were being 鈥渁 bit more conservative in pressing the [go] button鈥�.

But he said: 鈥淵et, I think London will be fine in the end [鈥 We鈥檝e had more interested investors talking to us than earlier in the year.鈥�

The 2-3 Finsbury Avenue Square scheme by British Land and Singaporean investor GIC will replace the site鈥檚 existing Peter Fogg-designed office buildings, the earliest part of the Broadgate complex.

It comprises a set of four tapered buildings rising up to 32-storeys in height, which will provide 62,000 sq m of office space, 4,000 sq m of retail space and nearly 1,300 sq m of restaurant space on the tower鈥檚 13th level, which will also include a public roof terrace.

British Land鈥檚 decision to wait for a pre-let before beginning construction echoes TH Real Estate鈥檚 stance on its 拢400m 40 Leadenhall office project - dubbed 鈥楪otham City鈥� - in the Square Mile following the Brexit vote, .

Meanwhile, Grigg said 鈥渙ur intention is to absolutely go ahead and get planning鈥� for its most significant project at Canada Water in South-east London. The scheme is headed up by former Argent partner Roger Madelin, who previously informed 好色先生TV an outline planning application was expected to go in early next year.

On British Land鈥檚 controversial Blossom Street development, Grigg said the firm would wait to see what happens with the latest challenge and then 鈥渢ake a view鈥� on the project.

Topics