Transport for London launches search for new joint venture partner for its commercial office portfolio

23 May 2022 01:44 PM

New partnership part of TfL's wider commercial development programme, which will generate vital revenue to help reduce TfL's reliance on fares income to keep the city moving.

Transport for London (TfL) has announced that it is searching for a new joint venture partner to create a portfolio of three new commercial office developments at Bank, Paddington and Southwark.

Forming part of its wider commercial development programme, TfL is aiming to deliver sustainable commercial office developments that provide exceptional workplaces and positively impact the local community through this new joint venture partnership

The three over-station developments included in the partnership are:

• Bank Over-Station Development – located above the new station entrance on Cannon Street, this eight-storey development, along with a basement, will include both office and retail space, measuring around 140,000 sq. ft. (Net Internal Area (NIA), external terraces on fifth, sixth and seventh floors and a green roof *
• Paddington Triangle Over-Station Development – located by Grand Union Canal and close to the new Elizabeth line station at Paddington, this 19-storey building will deliver new office and retail space measuring around 235,000 sq. ft. (NIA). It will include a canal side reception and use a ground and air source heat pump system
• Southwark Over-Station Development – located above Southwark Tube station on the Jubilee line, this 17-storey hybrid timber building is set to be one of the greenest and healthiest large-scale commercial buildings in the UK. Measuring around 220,000 sq. ft. (NIA), it will provide a mixture of commercial office space and retail space and has external terraces on most floors

All three sites have received planning consent or resolution to grant planning consent and have the potential to target BREEAM Outstanding. The development at Southwark has been designed to achieve the WELL Platinum certification, alongside the BREEAM Outstanding rating – achieving both would be an unprecedented feat for a new office development in the U.K. Collectively, the three sites will provide almost 900 cycle spaces, which – combined with their close proximity to the public transport network – will encourage those who occupy the buildings in the future to travel sustainably.

This commitment to building a greener London is also reflected in the publication of TfL's Sustainable Development Framework last year. The framework, which is closely aligned to both TfL's Corporate Environment Plan and the Mayor's Recovery Programme, sets out TfL's approach to driving positive social impact, promoting economic development, and embodying environmental stewardship across its developments.

Scott Anderson, Head of Property Development at TfL, recently said:

"We are delighted to be going to the property industry with this exciting opportunity and are looking for a partner to create best in class commercial office workspaces that will positively transform the capital and support its green recovery. This new investment and development partnership will form part of our wider commercial development programme, which seeks to build the homes and commercial spaces the city needs, while also generating vital revenue that reduces TfL's reliance on fares income."

This partnership forms part of TfL's wider commercial development programme, which – alongside new commercial office developments – will see thousands of high-quality new homes built on its land across the capital – delivering 50 per cent affordable housing on average across its entire portfolio. TfL currently has more than 1,700 homes under construction with work forecast to start this financial year on 12 additional sites that will deliver a further 2,400 homes.

The agent for the opportunity is JLL. Organisations interested in being considered for the opportunity are also encouraged to register as suppliers on TfL's ePortal, where access to tender documents will become available: https://procontract.due-north.com/Procurer/Advert/View?advertId=9992728a-58d7-ec11-8114-005056b64545&fromAdvertEvent=True

Notes to Editors

• * These measurements and description are subject to the outcome of a planning application that is currently being considered by the City of London, which seeks permission for an additional storey of office space and an outdoor terrace.
• Through the creation of the partnership, the joint venture company will agree to purchase leasehold interests in the sites from TfL and will then establish individual property companies for each of the sites. The sites will then be developed directly by the company, which is to be funded with equity and debt.
• The proportions of the equity joint venture will see TfL take a share of between 25-49 per cent (to be confirmed in due course) with the partner as the majority stakeholder.
• There is the potential for other properties and development opportunities to be acquired by the joint venture, expanding the partnership's portfolio in the future.
• TfL's sustainable development framework can be found here: gov.uk/corporate/publications-and-reports/property-policies

Further enquiries on the opportunity should be directed to OfficeInvestmentPortfolio@tfl.gov.uk