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London to be boosted by £1bn mixed use property development in Blackfriars

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The trust is managed by Abrdn and launched in 1997, currently sitting as a 14 per cent discount.
The trust is managed by Abrdn and launched in 1997, currently sitting as a 14 per cent discount.

A property developer has been given the green light for a £1bn mixed-use office and residential redevelopment at 18 Blackfriars in London, the site of the former Sainsbury’s headquarters. 

Much of the area has been empty for over 20 years but there are now plans in place to create three buildings, two delivering over 400 new homes, with 40 per cent being affordable. The third will create 800,000 sq ft of office space.

Developers will also construct 20,000 sq ft of new affordable workspace, assembly rooms for use by the local community, educational space, children’s play areas and a new, central public space with retail and food outlets. 

Ross Blair, senior managing director and country head of Hines UK, said: “ Businesses of all sizes and from all sectors are demanding more from their offices because their employees are demanding more from them. 18 Blackfriars is all about rising to that challenge and delivering the office of the future.

“We believe our plans for 18 Blackfriars will set a new standard in premium quality workspace in London, both fully integrated into its hyper-local community and seated right at the heart of our capital city. Bringing this scheme to life underlines our long-term conviction in London as a thriving, global centre for culture, education and business.”

It comes amid a period of transformation for the UK office market

Commercial property values have also been bruised by rising interest rates and fears about the health of the office market as hybrid working trends linger post-pandemic. 

Businesses are also keen to occupy offices which meet environmental EPC targets. 

Blair told City PM there are currently businesses in properties which “do not meet the criteria they have set themselves either for what they stand for from an environmental perspective or the space they want to provide for the employees”. 

18 Blackfriars Road is designed to be fossil fuel free, 100 per cent electric and Net Zero Carbon in operation, with 95 per cent of the site’s heat demand served by ground source heat pumps that share, store and offset energy. 

The development is expected to be completed by the end of the decade. 

It is one of many new developments coming to London over the next few years. 

Olympia London, a new development in Hammersmith, is set to open in 2025,  and alongside commercial office space will include amenities such as the largest new permanent theatre and over 14 new restaurants.