Five shortlisted for £4bn Euston development

By Paul Norman - Monday, July 17, 2017 7:51

HS2 has revealed a heavyweight list of five leading developers to partner on the up to £4bn redevelopment of the Euston station estate as well as the designers and engineers in the running for the station design contracts for London and Birmingham.

HS2 published the names of the bidders in the running to win the Euston Master Development Partner contract.

The winner will advise on, and later take forward, sustainable mixed-use development opportunities, including new homes, offices and retail space above and around the revamped London Euston. This includes working with HS2 Ltd, Network Rail, the station design contract winner and local authorities to deliver a unified masterplan to unlock the full potential of the area.

The following bidders have been shortlisted and invited to participate in dialogue:

• Westfield Europe Ltd

• Euston Regeneration Partnership (Led by Argent Related Services LLP and including Sydney and London)

• Canary Wharf Group

• Land Securities Property Holdings Limited

• Lendlease Europe Holdings Limited

The comprehensive approach has the potential to deliver up to 22 hectares of development space as well as improving accessibility and creating new public and green spaces across the wider Euston site.

David Biggs, Managing Director, Network Rail Property, said: “This brings us another step closer to realising an exciting and vibrant new district in the heart of London.

“The opportunities are vast. A regenerated Euston Station not only affords us the ability to improve connectivity and exceed the expectations of those travelling by train. It also allows us the rare chance to create new space for homes and businesses, to craft a desirable destination for people to live, work and meet.

“The new station can be a catalyst for local regeneration and increase connection across the local community, bringing huge benefits both to the area itself as well as the country as a whole.”

The winning designers will work with HS2 Ltd to develop and refine the detailed plans for three brand new stations, at Birmingham Curzon Street, Birmingham Interchange and London’s Old Oak Common, as well as a major expansion of London Euston.

The shortlists for the station design contracts include, Arup, Mott MacDonald, WSP, Arcadis and a Jacobs/BuroHappold/Idom Joint Venture. All the bidders have been invited to tender for at least two station packages.

The stations will welcome tens of thousands of passengers every day from all over the UK, providing easy and accessible onward connections to local transport, airports and connecting rail services as well as step-free access from street to seat. In total more than 170,000 new jobs are expected to be created in the wider development areas surrounding the four stations.

HS2 Ltd Chief Executive, Mark Thurston said: “Today’s announcements are a major milestone for the project – setting the scene for the next stage of the station design process. Together with the successful bidders, we will go on to deliver one of HS2’s most tangible legacies – three brand new stations and the long-term transformation of Euston.

“All four projects represent exciting opportunities to showcase the very best in engineering and design while also delivering value for money.

"We are looking for partners to help us deliver stations which not only provide unparalleled levels of accessibility, ease and convenience for our passengers, but who will work with local communities to ensure we also help unlock wider regeneration, new jobs, homes and opportunities.”

Contracts for both stations design and the Euston Master Development Partner will be awarded early next year.

CoStar News revealed three of the five-strong shortlist last week.

HS2 is looking for a master development partner for the 22-acre site, which comprises land owned by both the Secretary of State for Transport and Network Rail.

Following a procurement process, the chosen developer will spearhead the masterplan for the estate and secure the requisite planning permissions.

The four-year contract could be extended by up to 40 years, The Secretary of State for Transport is delivering a new terminus station for High Speed 2 at Euston Station. Network Rail owns the adjacent station and surrounding lands. SoS and Network Rail will bring together their land holdings at Euston.

SoS and Network Rail (together, the Contracting Authorities) will have entered into a collaboration agreement to effectively pool their respective ownerships in the public interest and also to streamline decision making between the contracting authorities.

The selected development partner will have the right to acquire a leasehold interest in land before developing on it.

The estimated gross development value of the entire Euston estate is between £2bn and £4bn. The scheme will run to several million sq ft of development, including extensive over-station commercial development comprising offices and retail, as well as homes and public facilities.

The vast redevelopment project is expected to run for more than 20 years and will have to accommodate changing plans for the HS2 terminus.

A development partner is scheduled to be picked by Q4 2017.

British Land, which was Network Rail’s long-term development partner for the regeneration of Euston, decided against bidding.

All of the parties making it through to the shortlist have the experience and skillset needed for such a complex and long-term project but it is likely Argent-Related with Sydney & London will start as favourites. Argent-Related has been notably successful at the regeneration of the neighbouring King’s Cross Central Station alongside London & Continental Railways and importantly has built a strong relationship with Camden council in the process.

Its partner Sydney & London is the only landowner on the 12 acres immediately around Euston Station alongside Network Rail having assembled a portfolio of four offices around Euston Station including Grant Thornton House, which it bought in 2004. It acts as project manager for the 304,420 sq ft portfolio.

It formed the Euston Estate Partnership with US developer giant Related in 2014.

Related Cos. and Argent formed Argent Related to capitalise on their expertise and track record of significant urban placemaking in the development of all future projects in London and throughout the UK in 2015.

pnorman@costar.co.uk

Get in Touch
+44 203 205 4600