Delay of New London Office for Rent Within a Shoreditch Skyscraper
London office for rent Principal Place has been delayed after CMS Cameron McKenna pull out. The law firm have said that financial uncertainty is the reason behind their decision to reconsider.
The construction of an office tower block in Shoreditch has been stalled after the development’s main potential tenant bowed out, citing financial uncertainty.
CMS Cameron McKenna is said to have pulled out of talks to pre-let 200,000 sq ft of space within the new London office for rent which was set to be developed in April by Anglo-French designer Hammerson.
The development, Principal Place, is reported to cost around £485m and could now see its start delayed until a tenant can be found as CMS had originally agreed to let around a third of the London office for rent.
CMS had originally agreed to a pre-let deal with Hammerson last summer, but have stated that due to financial uncertainty they now plan to explore their leasing operations closer to the expiration of their current lease at Mitre House on Aldersgate Street in 2015.
CMS senior partner Dick Tyler said: “As a result of the current uncertainties in the financial markets, CMS Cameron McKenna has decided not to enter into a significant long-term premises commitment. The firm is therefore ceasing its current conversations with Hammerson in relation to its development at Principal Place, EC2.
“The firm proposes to postpone its decision to move until market conditions are more stable. The firm’s lease of Mitre House in Aldersgate Street expires in 2015 and it will explore its relocation options in London nearer the expiry date.“
When constructed, the scheme is set to boast shops, restaurants and residential apartments. The project was granted planning permission in July 2011 after having to revise the original 2008 edition following a campaign to save the Light Bar building on Shoreditch high Street.
Of the pulling-out of CMS, Hammerson’s Chief Executive, David Atkins 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.“
The 51-storey London office for rent is expected to be completed two years after the date of initial construction.