INDUSTRY NEWS

British Land enter joint venture to develop ‘Cheese grater’

British Land will enter a joint venture with Toronto-based partner Oxford Properties to develop the Leadenhall Building, known as the “cheese grater” in London.

The Leadenhall office building takes on this unusual name due to its shape, it will be completed in mid-2014 at a cost of 340 million pounds ($526 million); British Land and Toronto-based partner Oxford Properties Group Inc. said in a statement today. The Richard Rogers-designed building will be built in the City of London financial district.

British Land’s initial contribution to the joint venture will be the £90m site. Oxford, the property arm of Canada’s Ontario Municipal Employees Retirement System, will pay the next £90m to prepare and start the development.

The remaining costs will be split, said British Land, which will pay a total of around 125 million pounds in addition to the land.

Developers including British Land and Land Securities Group Plc have revived plans this year to build towers in the district after cancelling them two years ago because of the global financial crisis. A shortage of development has pushed up rents as demand for modern office space in London picks up.

Commercial property news brought to you direct from DeVono Cresa, specialists on the London property market.