Planning and construction Construction starts in the inner boroughs
Map 1 Construction starts in the
inner London boroughs 2012 Developments of 10 units or more
There were a total of 7,254 unit starts in the inner boroughs in 2012 compared with 5,111 unit starts in the previous year. There was also a corresponding increase in the number of schemes generating those units, from 98 in 2011 to 132 schemes in 2012. If our assumption that the inner boroughs are still being driven by equity is correct, then one of the indicators should have been a sharp increase in construction activity in the prime boroughs. So it is there that we shall look first.
Three prime boroughs Kensington & Chelsea
There are more units under construction in the borough than at any point in well over a decade, up by 186% on the previous year. Put another way, there was one scheme under construction in 2008; at the end of 2012 there were seven. Let us look at two in detail: n The Power House, 73-79 Alpha Place, SW3 Alpha Development Chelsea had consent for 31 residential units in 2008 and, following the demolition and site clearing shortly thereafter, this development was shovel-ready in early 2009. However, following the collapse of Alpha the same year it was not until 2012
The City
Not renowned for its residential output, the borough's level of starts in 2012 increased by 131% on the previous year. There were three residential starts in the borough, and in the City that’s significant: n Riley House, 4-7 Red Lion Court, EC4 Galliard: After its acquisition for £3.3m in 2006 by Rock Investments this office building underwent refurbishment as offices. However, in 2011 a planning application was submitted for a change of use from 1,042 sq m net B1 office space to 14 residential units. (Average £/sq ft £1,297 – high level of investor sales). n 10 Trinity Square, EC3 KOP: Formerly the head office of Willis Group, consent was granted in 2012 to Dubai
Holdings-backed developer KOP Group for the change of use from office to a 121-bed hotel together with 37 residential units. Prices expected to be around £3,250,000 average per unit. It is rumoured that some of the sales/ reservations within this phase have been to property investors who already own apartments in One Hyde Park. n Roman House, Wood Street, EC2 Berkeley: Following consent for the refurbishment to 8,738 gross sq m B1 space in 2009 by First Orion Amber (which subsequently went into receivership) the building was bought by Berkeley, which gained consent for 90 residential units in 2011 with refurbishment works starting in 2012. (Average £/sq ft £1,366 – at least 50% investor sales)
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that Grosvenor and Native Land started construction on the site following its acquisition from the receivers, Allsop. No marketing details. (Comparable: Henry Moore Court – Average £/sq ft £3,191) n The Parabola (former Commonwealth Institute), 230 Kensington High Street, W8 Chelsfield had consent in 2009 for a 62 residential unit scheme but it was not until 2012 that works started after the company secured new debt facilities. No marketing details. (Comparable: 375 Kensington High Street – Average £/sq ft £1,810).
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