The Crown Estate and Oxford Properties have announced the completion of a joint venture agreement to finance the £320 million St James’s Market scheme. At the same time, the partnership also announced they have awarded international infrastructure group, Balfour Beatty with an £87 million contract to develop the site.
The completion of the joint venture and the speedy appointment of Balfour Beatty means that work is due to start on site in the next month.
The St James’s Market redevelopment is set to deliver 210,000 sq. ft of prime office and 50,000 sq. ft of flagship retail and restaurant space across two eight-storey blocks between Regent Street and Haymarket.
The first block, situated along Regent Street, includes a retained heritage façade which will be repaired and restored as part of the contract. The second block, adjacent to Haymarket, will incorporate an aesthetic curved glass and Portland Stone wall that will be installed in four by three metre sections using a tower crane.
Extensive public realm improvements on site will create a new 10,000 sq. ft piazza including new seating, planters and wall mounted lighting, providing a new social space for visitors, and complementing Westminster City Council and Transport for London’s public realm improvement programme.
Alastair Smart, head of development at The Crown Estate said:
“St James’s Market represents the most ambitious redevelopment St James’s has seen in the last century. Partnering with an organisation of Oxford Properties’ calibre and bringing an experienced and skilled contractor on board are two big steps towards the delivery of this exciting project.”
Mike Rayner, head of development, Oxford Properties, added:
“With the appointment of Balfour Beatty we are decisively moving forward with the assembly of a world class team at St James’ Market.”
Bob Clark, managing director of Balfour Beatty’s major projects division, said:
“We look forward to working with The Crown Estate and Oxford Properties to help deliver their vision for St James. As a global infrastructure group we will be bringing our experience in delivering high end commercial properties to the scheme and utilising our investment in 4D information modelling technology and modular construction capability to ensure perfect delivery.”
The St James’s Market joint venture is the third major partnership that The Crown Estate has established for its central London holdings in recent years. The Regent Street Partnership, with Norges Bank Investment Management, continues to invest in London’s premier shopping destination. Whilst two months ago, The Crown Estate completed construction of the £100 million St James’s Gateway redevelopment, a 50:50 limited partnership with Healthcare of Ontario Pension Plan. Gateway was the first scheme we have completed in partnership with a major institutional investor.