Mitsubishi Estate London and Co-re have appointed Savills as leasing agent for 72 Upper Ground, as work starts on the landmark redevelopment of the former ITV studios on London's South Bank, CoStar News can reveal.
The appointment follows a recent pitch from leading agents and comes as construction starts on site, Cushman & Wakefield is already appointed on the project. The development is targeting completion in 2029.
The £500 million development will include around 500,000 square feet of offices and 200 homes.
Stuart Lawson, a director in Savills City Agency team, said in a statement: "[72 Upper Ground is] a landmark new development on the dynamic Southbank, sitting in an extremely prominent position on the river, providing an unrivalled vista across central London. The very constrained development pipeline is well documented, and this is the only scheme of scale for completion in the central London market in 2029 that has commenced on site. Accordingly, we anticipate strong demand from major occupiers seeking an outstanding new HQ building.”
A joint statement by Shinichi Kagitomi, chief executive of Mitsubishi Estate London and Stephen Black, director at Co-re, added: “Savills brings exceptional market expertise and a proven track record in leasing landmark London developments. Their appointment alongside Cushman & Wakefield strengthens our leasing team as we move forward with this transformative project in one of London's most dynamic and culturally significant locations. Construction is currently underway, and having both agencies on board reflects our commitment to engaging with potential occupiers well ahead of completion.”
Designed by Make Architects, the development proposes a 25-storey office building connected to two buildings of 14 and siz storeys. The workspace will include affordable areas targeting Lambeth's emerging creative industries, cafes and restaurants, cultural venues and open, green spaces.
The all-electric, fossil fuel-free scheme is targeting net zero carbon in operation along with BREEAM 'Outstanding' certification. Forty percent will be public realm, opening up a closed-off area on the South Bank and adding two public squares.
The scheme is also targeting the highest WELL certification, Platinum.
A key element of the site, The London Studios, a multi-level cultural and innovation hub, will provide around 40,000 square feet of affordable workspace for creative industries with discounts of up to 90% from open market rents for qualifying organisations.
Japan’s Mitsubishi Estates, with development manager Co-re, bought ITV's 45-year-home on London’s South Bank in November 2019, in a deal revealed by CoStar News. The television channel sold the former London Television Centre in an all-cash transaction for £145.6 million.
In December, the developers received a High Court decision in favour of the project bringing to an end a two-year long planning battle which began in spring 2022 when then the Secretary of State for Housing Michael Gove issued a notice that saw the project called in for a public inquiry the following year.
Gove delayed a final decision three times before agreeing that it could go ahead in February 2024. That decision was then challenged at the High Court by lobby group Save our Southbank.
At the Mipim property conference in Cannes, development manager Co-re's David Ainsworth and Bradley Baker were both celebrating the planning approval and feeling confident about the London occupier markets.
Speaking to CoStar News Baker said: "We are walking around with a smile on our faces given our development of the former ITV site is now on show – after going to public inquiry – on the London stand and it is very much full steam ahead. Rents are showing strong performance in central London and yields will hopefully be coming in by the end of the year. The unknown bit is the cost of money."
Ainsworth added: "There isn't much choice for space now. Sentiment is not bad. I think with offices occupancy everything is pointing to businesses moving back to how things were before the big lockdown five years ago. And we know businesses see they need to be centralised and not dispersed."