Stanhope and Cheyne Capital have completed the acquisition of a £450m GDV office tower development site on London’s South Bank from Landsec.
They have acquired the 1.24-acre Row One site with a view to developing a scheme offering 235,000 sq ft of office space and 15,000 sq ft of retail and F&B space across two basement levels and 11 floors above ground.
The on-site amenity provision will include a club room and wellness centre as well as market-leading end of trip facilities and new public realm.
Stanhope is a minority investor in the project and will be responsible for managing the delivery of the development. Demolition work is already completed and the main contract programme is scheduled to commence in early 2026 following enabling works, with an approximate two-year build period.
Joe Binns, head of investment at Stanhope, said: “This was a rare opportunity to acquire a significantly de-risked, best-in-class office development opportunity in one of London’s most vibrant and dynamic sub-markets. We are firm believers in the appeal of the South Bank as a complementary business district to the City of London, with recent activity across both our own portfolio, and the wider market, underscoring this confidence.
“The transaction builds on our 35-year track record of reimagining, delivering and managing innovative, landmark office developments, and deep understanding of the evolving occupier ecosystem, to create lasting value for our stakeholders, including the wider community.
“With London facing a well-publicised Grade A office supply crunch towards the end of the decade, there is an opportunity for high conviction investors to play a crucial role in ensuring the capital retains its position as a pre-eminent global business hub. Our first scheme with Cheyne adds another sophisticated, blue-chip investor to our capital partner base, and is a strong endorsement of our strategy and vision.”
Nick Grosse, director in Cheyne Capital’s real estate group, added: “We are delighted to be partnering with Stanhope on a project of this calibre. Their proven track record and delivery expertise make this a highly compelling development opportunity, already benefitting from planning consent and significant site preparation under Landsec’s stewardship.
“Our ambition is to deliver a best-in-class office building distinguished by exceptional ESG credentials, design quality and occupier amenities. The scheme will offer generous outdoor space and excellent connectivity, meeting the strong demand for premium offices in today’s market.”
Stanhope and Cheyne were advised by Colliers, DLA Piper and Macfarlanes.
