The Strategist

Investors From UAE Will Demolish Scotland Yard

02/24/2016 - 14:35

The company Abu Dhabi Financial Group, which acquired the headquarters building of the Metropolitan Police known as Scotland Yard in 2014, has received permission for the demolition of the object. According to the project, the place will be occupied by six high-rise buildings with house shops and offices on the lower floors will, and superadjacent luxury apartments.

DaveCrosby via flickr
DaveCrosby via flickr
Scotland Yard with headquarters moved in the building on Broadway street, 10 in the district of Westminster in 1967, as the original building located close to Victoria Embankment could not accommodate the entire staff anymore. However, by the beginning of the XXI century, the building became not compliant with updated requirements. The Metropolitan Police Department, which in 2008 bought the building for about £ 120 million in the full ownership, put it up for sale in 2013.

There were 10 buyers claiming to purchase the site. In December 2014, a new owner of the former headquarters building of the Metropolitan Police became the company Abu Dhabi Financial Group, which paid £ 270 million - £ 120 million more than the initial price. During the time that has elapsed since the date of purchase, the company has been developing a construction project for a multifunctional residential complex. Westminster city council approved the project, and now the developer can take up the matter.

According to the plans, the site of Scotland Yard will be occupied by six buildings with height from 14 to 20 floors. The first floors will be taken by house shops, three floors above them will be given to office lenders, and higher will be located apartments. In total, the building will contain 248 apartments, including four penthouses, which are expected to be among the most expensive in London. The ground floors of high-rise buildings will be equipped with a spa center, swimming pool, parking for cars and bicycles. Presenting the draft to the court of the city authorities, the Chief Operating Officer of Abu Dhabi Financial Group Jassim Alseddiqi said that they would like to build a new attraction in the British capital. "Scotland Yard will be one of the most important projects of building in central London of the decade. It will replace the world-famous police headquarters with a world level complex", - he explained. The project’s cost is estimated at $ 2.1 billion.

According to CBRE's company, which specializes in consulting in the real estate industry, foreign investors spent on real estate in central London £ 1.8 billion ($ 2.8 billion) in the second quarter of last year. This amount is 118% more than the same figure for the second quarter of 2014, and a record high since 2007. According to The Financial Times, there were several large transactions in this period. Among them are the acquisition of the largest Malaysian investor Eco World and Irish company Ballymore of three objects for £ 428 million ($ 667 million). In the second place - purchase of several offices, including the building of Express Newspapers HQ Ludgate House by a Singapore-Malaysian consortium for £ 308 million ($ 480 million).

According to CBRE's, nearly three-quarters of purchases of real estate in central London in this period were performed with participation of foreign investors; four of the five real estate largest deals involved foreign funds. About half of transactions related to commercial real estate (office and retail space, restaurants and so forth). The other half was given for residential property. According to CBRE’s senior director for development of central London Alastair Perks, the market of land for the construction of new buildings "is growing at the speed of light." Among other things, this is obliged to the fact that London's population is growing faster than the number of new housing. Over the past year, the number of new households amounted to 52 thousand, while the number of constructed homes for the period amounted to a little bit more than 18 thousand.