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Lendlease & LCR launch search for JV partner to forward fund International Quarter London

By James Buckley - Tuesday, February 06, 2018 12:03

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Lendlease and LCR have launched a search for a joint venture partner to forward fund the remaining 2.3m sq ft of planned office developments at the International Quarter London scheme in Stratford, CoStar News can reveal.

The pair have instructed JLL to find an investor for a joint venture, which will see a partner brought on board to bring forward 2.3m sq ft of office across the six commercial developments which Lendlease and LRC still own outright.

The instruction includes the sale of S9, the 290,000 sq ft under-construction building which is majority let to Cancer Research and British Council. The building is valued at in excess of £250m, or £862 per sq ft, implying a total valuation of the six assets once let of around £2bn. There is around 60,000 sq ft of office space still available at S9.

The other assets in the forward sale include S2 and S4, two planned office developments of 600,000 sq ft each; the 230,000 sq ft proposed S10; 140,000 sq ft planned S11 and another 450,000 sq ft at S3.

Quoting rents for the proposed building are around £47.50 per sq ft.

Last November, Lendlease and LCR appointed Knight Frank’s central London agency team as joint leasing agents at International Quarter London alongside JLL and BNP Paribas.

The agents are advising on the pre-letting of the pipeline of 2.7m sq ft of workspace, which is set within 22 acres of landscaped parkland next to the Queen Elizabeth Olympic Park.

Cancer Research UK and British Council have already made long-term commitments to relocate their headquarters to IQL, which will sit adjacent to the Cultural & Education District, the home for UCL and UAL’s London College of Fashion’s new campuses.

The Rogers Stirk Harbour + Partners-designed International Quarter London project will deliver 4m sq ft of grade 'A' office space in total, as well as 333 homes and community facilities. Close to 1m sq ft is already pre-let, with the FCA and TfL set to occupy the first two buildings totalling c.800,000 sq ft.

Over 25,000 people will work in the area when complete and investments from Deutsche Bank and Legal & General represents more than £615m of forward sales for the first two commercial buildings on site.

All parties declined to comment.

jbuckley@costar.co.uk

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