Latest commercial sale confirms growing investor confidence in Stratfords IQL
LONDON, 25 June 2018:
Lendlease and LCR today announced the c.£240m forward sale to DWS (formerly Deutsche Asset Management) of a 278,000 sq ft commercial office building at International Quarter London (IQL) – the £2.4 billion mixed use development at the heart of Stratford, London.
Progress is well underway onsite with the first two residential towers now complete and more than one million sq. ft. of office space already pre-let. Investments from DWS and Legal & General totalled more than £615m for the first two commercial buildings, one of which TfL took handover of in September 2017, and the other the Financial Conduct Authority took handover of in March 2018.
The building, which is currently under construction, is located at Redman Place in IQL and will form a significant part of the vibrant new neighbourhood at the gateway to Queen Elizabeth Olympic Park. On completion in 2019, the building will become the new headquarters to both Cancer Research UK and the British Council, and bring more than 2,000 additional people to IQL. The total number of employees on site by the end of 2019 will total around 6,300.
IQL has seen strong interest from potential tenants for the remaining space in both buildings acquired by DWS. Unicef recently announced that it will move its UK HQ to IQL and will occupy 25,000 sq. ft.
Lendlease and LCR will continue to manage the delivery of the building through the Stratford City Business District Ltd (SCBD Ltd) joint venture until delivery is complete when management will transfer to DWS. Lendlease is also acting as Development and Construction Manager and providing capital markets advice to SCBD Ltd.
Dan Labbad, Chief Executive Officer, International Operations at Lendlease, said: "Whether it be the sporting facilities, educational institutions clustered around Here East, or the East Bank – the Mayor of London’s initiative for the arts – this area of the capital is being totally transformed. Investors’ confidence is buoyed by the decisions of world-leading organisations, such as Unicef and the British Council, to locate their headquarters at IQL. Once complete in 2025, IQL will be home to businesses and organisations employing over 25,000 people, as well as incorporating residential properties, shops, restaurants, bars and some unique public spaces."
David Joy, Chief Executive of LCR, said: "Today’s announcement marks another important milestone for International Quarter London, Stratford’s new employment hub. By 2019, the new neighbourhood will be home to around 6,300 employees working for world-renowned organisations such as Cancer Research and the FCA. Such exciting businesses coming to east London will make IQL a destination to live and work, with visitors, residents and businesses able to enjoy innovative and consciously designed workplaces and homes, alongside an inspiring new centre of culture."