Shell agree a deal for a £300 million redevelopment of the Shell Centre on the South Bank. Canary Wharf Group and Qatari Diar are to redevelop the new London office lease, while Shell staff temporarily relocate to Canary Wharf and The Strand.
Oil conglomerate Shell have this week confirmed that their landmark Shell Centre on the South Bank will undergo a £300 million redevelopment courtesy of Canary Wharf Group and Qatari Diar.
As part of the scheme, the corporation’s low-rise wing which sits alongside the main Shell Centre will be knocked down and new offices, flats and shops will be constructed in its place. Canary Wharf Group and the property investment vehicle Qatari Diar have paid £300 million for the 5.2 acre London office lease, which excludes the historic 1950s tower, on a 999 year lease.
“This is a great step forward and represents considerable reinvestment in the South Bank,” commented Shell UK chairman Graham van’t Hoff.
“Shell Centre is our long-term home in London and we’re keen to start working with Canary Wharf Group, Qatari Diar and local stakeholders to develop and deliver a project that will benefit both London and the local community.”
During the redevelopment, around 1700 of Shell’s 4000 London employees will temporary relocate to offices in Canary Wharf and the Shell Mex building in The Strand – it’s expected they’ll move back to the main South Bank London office lease when the project is completed.
Following the redevelopment, Shell will continue to occupy the Shell Centre where it has been based for the last 50 years, and will also take a substantial London office lease in one of the new properties.
Speaking about the redevelopment, chief executive and chairman of Canary Wharf Group George Iacobescu said, “It’s a wonderful location – probably the best site in the west of London. You are at the centre of London and that’s why the wheel [the London Eye] is there.”
It’s thought the developers will continue to carry out public consultation and engagement throughout the application and build process.