The initial agreement to develop the site above the existing Tottenham Court Road London Underground station was agreed in 2007 and the Group surrendered its existing holdings in the area in 2009. The revised agreement sets out the terms whereby Derwent London will once more own the key interest in one of the best placed redevelopment sites along the whole Crossrail route.
Derwent London, in co-operation with Crossrail Limited, achieved planning in 2012 for an AHMM designed 275,000 sq ft landmark development comprising 204,000 sq ft offices, 37,000 sq ft retail and a 34,000 sq ft 350-seat theatre. The Group will enter a new 150-year lease in return for the payment of £55m. This only becomes payable once the development reaches practical completion. Crossrail Limited will receive a ground rent equivalent to 5% of the rent on the commercial space and receive 16% of any development profit. Work is due to start in Q1 2018.
Tottenham Court Road Crossrail station will be one of the highest profile stations on the Crossrail route. Crossrail, Transport for London and the London Borough of Camden are undertaking a huge transformation of the area through the introduction of new infrastructure, as well as vital investment in the surrounding public realm which is one of the biggest investments in the West End for decades. This will include the creation of a new piazza at St Giles Circus. 1 Oxford Street forms the west side of this major area of regeneration providing a new West End theatre, and public space between our two buildings that link the new piazza with Soho Square.
John Burns, Chief Executive Officer of Derwent London, commented:
“1 Oxford Street is one of the best addresses in London. We are very excited by the potential of this project and the area, which will be transformed by the opening of Crossrail in 2018. Derwent London will own over two million sq ft in the immediate vicinity and is making significant investments to improve the area including our recently completed office and retail projects at 1-2 Stephen Street and Tottenham Court Walk respectively which has helped kick-start the regeneration of Tottenham Court Road.”
Ian Lindsay, Crossrail Land & Property Director, commented:
“The £1bn redevelopment of Tottenham Court Road station provides a once in a generation opportunity to revitalise the eastern end of Oxford Street. We are delighted to be working with Derwent London on this flag-ship scheme which will deliver high quality buildings above our station and at the same time generate a very significant contribution to Crossrail’s funding envelope. Crossrail will transform rail travel in London and the South East, providing much needed additional transport capacity, reduced journey times and new journey opportunities.”