200: Land Securities London tower set for go-ahead

Navigation trail: / latestnews / archive / 200 - published: 21-09-06

LONDON (Reuters) - Property firm Land Securities on Wednesday said its plans for a 37-storey building in the City of London were set to be approved, boosting the city's pipeline of potential office space.

"The City of London Planning Committee has resolved to grant planning permission for (the) proposed development at 20 Fenchurch Street," Land Securities (LAND.L: Quote, Profile, Research) said.

The slightly squashed rectangle design, nicknamed the "Walkie Talkie" by local media, was scaled back from an original 45-storey design following criticism that it would block views of St. Paul's Cathedral.

Analysts at JP Morgan said in a note that the proposed building was another example of rising future office supply in the City.

Developers on Tuesday said they had secured funding to begin work on a 72-storey office building on the south bank opposite the City, while rival property company Hammerson (HMSO.L: Quote, Profile, Research) earlier this month warned of the potential for oversupply in the London office market after 2008.

The growing construction pipeline comes at a time when demand for office space and rents in London are surging, offsetting an expected slowdown in property price rises.

Office rents in the West End and City are expected to grow by about 8 percent per year in 2006-11, according to global property services firm CB Richard Ellis Group.

Land Securities gave no details on the likely completion date of 20 Fenchurch Street, but the company said it would seek to prelet some of the space once full planning permission was granted.

The company, which has a diversified 12.9 billion pound portfolio of office and retail property, said the building designed by architect Rafael Vinoly will feature a public roof garden -- "the highest accessible park in London."

Source:

Reuters.co.uk