How major infrastructure projects are fast tracking London’s regeneration 

Amid the post-Budget furore over tax rises, one positive piece of news was commitment to funding that will see HS2 end at London main line station Euston, rather than Old Oak Common. Work on taking the high-speed rail line to Euston station had been suspended as more private investment was sought to complete tunnelling and station work. Now government funding has been committed, Euston looks set to benefit from rapid rejuvenation in the coming decade, as interest from developers, businesses, and leisure and retail operators is renewed in anticipation of the impact HS2 will have when it arrives in 2033.

For evidence of what’s possible, we need look no further than Battersea and Canary Wharf. These iconic London destinations have been transformed in recent years, with new infrastructure being the catalyst. The Northern Line extension to Battersea and the Elizabeth Line to Canary Wharf instantly bought both areas within easy reach of millions more people, which in turn attracted swathes of new corporates, residents, retailers, bars, restaurants and theatres that probably would never have considered the locations before.

Camden Council estimates that Euston station becoming the HS2 terminus from Birmingham could create 34,000 new jobs, provide up to 2,500 new homes and boost the growth of life sciences and technology businesses in the area. From Docklands in the east through to King’s Cross and Battersea in the west, London’s regeneration success stories have all been underpinned by infrastructure, with new transport catalysing the transformation of these areas.

With the Elizabeth Line and the Northern Line extension now having been up and running for a number of years, we have modern examples and evidence of the impact new rail links can have on parts of London. According to the London Property Alliance, the Elizabeth Line has already created around 200,000 new office jobs and led to the opening of 171 hotels, 2,666 new food and beverage outlets and 12 museums. TfL reported in 2023 that passenger traffic to Canary Wharf was up 25% on 2019 levels. The figures for 2024 are likely to show an even greater rise.

The Northern Line Extension was the first tube line extension this century. It links the new Battersea Power Station and Nine Elms to Kennington and London’s transport network via two new underground stations. Since its opening in 2021, swathes of land on the banks of the River Thames, which had been moribund for decades, have become a thriving new neighbourhood, with homes, offices, shops, buzzing bars, restaurants and more. Battersea Power Station attracted 11 million visitors in 2023, with eight million passing through the new underground station, illustrating how instrumental it has been in making the area one of London’s most successful new destinations. Battersea Power Station saw a 17% year-on-year growth in footfall from mid-July to the end of August 2024, suggesting there is more to come.

The new lease of life breathed into Battersea has propelled new development. Apple moving into its 500,000 sq ft European HQ at the Power Station in 2023 put Battersea firmly on the map as a business location able to tempt even the most sought-after occupiers. Spurred by Apple’s move, we are now seeing a clustering of new office buildings and occupiers in the area. Global marketing firm Team Lewis and SharkNinja, the international producer of home appliances, are just two major businesses that have put down roots in Battersea this year. The price of workspace is also attractive. Just over the River Thames in Victoria, prime office space commands rents of more than £105 per sq ft, according to CBRE, compared with £65 to £80 per sq ft for Grade A space in Battersea.

New infrastructure was central to why we invested in the development of two of Europe’s smartest and most sustainable new office buildings. YY London at Canary Wharf is a 415,000 sq ft all-electric BREEAM Outstanding building setting a new benchmark for ESG-focused workspace, prioritising productivity, health and sustainability. This transformative retrofit of one of Canary Wharf’s first office buildings saw challenger bank Revolut signing to take four floors of the building for its new HQ in the summer. The Elizabeth Line, which cut journey times to Canary Wharf and opened up access to a broader talent pool, was almost certainly a key factor in Revolut choosing to expand there.

We have also just completed OSMO, a new 165,000 sq ft BREEAM Outstanding and net-zero-in-operation office building between Battersea and Vauxhall’s new linear park. OSMO encapsulates what modern workspace needs to deliver from an amenity perspective while reflecting how working habits and occupier demands have changed in recent years. It offers an array of flexible wellbeing-enhancing features and services including a communal rooftop lounge for events, yoga classes, wellness sessions, meetings and alfresco working.

Cynics are quick to highlight cost overruns and delays on mega infrastructure projects, but they should remember the cost of Crossrail and its delays have largely been forgotten, overshadowed by its enormous success. Now affectionately called the Lizzie Line, it has become the UK’s busiest rail line and is accepted not only as a crucial part of the capital’s infrastructure but one that has reshaped London, changing where businesses locate their offices and Londoners choose to live.

The positive impact new infrastructure has on cities, reinventing areas and boosting economic activity, cannot be underestimated. Consultancy Kearney’s 2024 Global Cities Report crowned London as the best city to live in in Europe, thanks to its economic resilience, start-up culture and hosting of global services firms. A large part of this is down to successful infrastructure investments made in London in the last decade, and long may they continue. Canary Wharf, Battersea and Kings Cross are all ready to accommodate the future needs of businesses and modern lifestyles – next stop, Euston.