Helical Bar plc have entered into a development agreement with Corporate Pension Fund clients of Savills Investment Management (formerly Cordea Savills), to bring forward the redevelopment of their long leasehold interest in 26-35 Drury Lane & 8-12 Dryden Street, London, WC2.
Helical will work up plans with a view to submitting a planning application by September for an 80,000 sq ft (NIA), mixed use scheme. On grant of planning, Helical will purchase the site for an agreed price of £42m and undertake the development of the scheme. Upon the completion of the development, the Pension Fund will receive a profit share and retain ownership of the basement and ground floor retail space comprising a total of 16,000 sq ft.
Located between Drury Lane and Dryden Street, the 0.5 acre site currently comprises c.65,000 sq ft of office and retail space. The proposed plans will involve a full redevelopment of the existing buildings, to create a residential led scheme comprising 75 residential apartments, as well as retail and restaurant space, and improved public realm.
Benefiting from a prime central London location and extensive public transport links, the site is well placed to capitalise on the diverse range of occupiers within the vicinity, with the current landscape seeing demand significantly exceeding supply in the area due to both a restricted development pipeline and record low vacancies.
Oliver Rippier, Development Executive at Helical Bar, says: “We are pleased to have been selected as development partner and look forward to working with Savills Investment Management to deliver what will be an exciting mixed use development. The scheme will be an important addition to the rapidly evolving Covent Garden area and complement our other central London projects such as Barts Square, EC1 and The Bower, EC1.”
Lucy Winterburn, Director of Investment at Savills IM, commented:
“We purchased the long leasehold interest in this island site in 1997 when Covent Garden was considered very much a fringe location. During the period of ownership we have seen the market evolve and the location significantly improve. Helical Bar’s plans to redevelop the site are exciting and innovative. Our client’s ability to retain the retail element on completion whilst sharing in residential profit perfectly matches our long term goals for a site that has been a key holding for almost 20 years, proving property can be a long game”.
Citigate Dewe Rogerson
Patrick Evans / Stephen Sheppard / James Madsen / Alice Stewart
Tel: +44 (0)20 7282 2966