INDUSTRY NEWS

Principal Place construction delayed following withdrawal of prospective tenant

Construction of a new London office building has been put on hold after a potential occupier terminated pre-let negotiations.

CMS Cameron McKenna was in talks with developers, Hammerson, for a total of 200,000 sq ft of Principal Place.

The law firm had previously agreed a pre-let deal for around a third of the office tower – located in Shoreditch – but have cited financial uncertainty as the reason that has led them to reconsider their options.

Set to cost £485 million to build, it is thought that CMS’s decision could see the 51-storey building’s construction delayed.

Chief executive at Hammerson, David Atkins, commented on the future of the project.

He said: “I have consistently said that in current conditions we would not expose our shareholders to excessive risk through building London offices on a speculative basis, which remains our policy.

“We have made good progress with the design and planning of Principal Place over the last six months, which I am confident will further improve its appeal to potential occupiers, and we continue actively to seek office tenants,” Mr Atkins concluded.

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