Landsec has agreed an 192,000-square-foot lease with multinational oil and gas giant BP for its office development at Timber Square, SE1, in a transaction revealed by CoStar News in January.
The lease covers the entire 15-storey Ink building, which will become BP's global headquarters.
The development of Timber Square completes this month and, as a result of the agreement, will be 54% let. Landsec said in a stock market filing that it is seeing good customer interest in the remaining Print building.
The lease agreement follows the announcement last week that Landsec's MYO Kings Cross development, which completed in late 2025, is already 60% let or under offer and is expected to be substantially let by the summer. In addition, Landsec said it is seeing "healthy interest" in its Thirty High development, which is due to complete later this summer.
Oliver Knight, head of workplace at Landsec, said in a statement: "BP is one of the biggest and most respected companies in the UK and their selection of Timber Square underscores the strength of demand for highly connected, sustainable workspace in locations like Bankside. Their new workspace brings together high environmental performance, a unique aesthetic and the modern amenities businesses need to attract and retain talent."
"Our office developments and assets play a pivotal role in supporting customers to raise the bar on both workplace experience and sustainability. Alongside Timber Square we're focused on delivering Thirty High in Victoria, SW1, a much needed net-zero carbon and amenity-rich office space, into a submarket where high quality supply remains scarce."
The pioneering Timber Square development proposes 380,000 square feet of net zero offices and is one of the few major office developments the REIT has committed to as it pivots towards major retail investments and residential development.
The move is understood to be in addition to space BP already occupies in London at Canary Wharf. The group has multiple offices in the UK including a 600,000-square-foot International Centre for Business & Technology in Sunbury-on-Thames.
CoStar News revealed in June 2020 that BP Oil had taken around 230,000 square feet at the Cargo building in Canary Wharf. The company prelet the space, next door to Canary Wharf’s Elizabeth line station, moving from the 240,000 square feet it occupied nearby at 20 Canada Square on the Docklands estate. Blackstone is understood to be testing the market about a sale of the building via CBRE and Cushman & Wakefield, seeking around £250 million and a 6.5% yield.
Timber Square is reusing elements of the existing printworks and a range of modern methods of construction such as cross-laminated timber, to achieve a 50% reduction in carbon dioxide during construction compared with a typical office build. It retains 85% of one of the existing structures and reuses building materials wherever possible. Once complete, it will become one of the most significant commercial developments in the UK to use a hybrid steel and CLT structure.
The space will target BREEAM Outstanding and Well Core Platinum. It will have a rooftop communal terrace and clubroom, a number of private terraces and new public realm including a mix of retail, leisure and food and beverage close to Borough Market.
Landsec has a long history in Southwark which began with the redevelopment of CoStar's UK home, The Blue Fin Building and Bankside 2 and 3 over a decade ago. In 2023, the company and Mace completed work at The Forge, the first office in Landsec’s Southwark pipeline to be delivered and the UK’s first net zero commercial building designed in line with the UK Green Building Council's framework.
In full-year results published in May, Landsec confirmed it was accelerating its shift away from offices towards retail and residential.
Landsec said it would increase investment in major retail by another £1 billion and establish a £2 billion-plus residential platform by 2030, to be funded by rotating £3 billion of capital out of offices, non-core investments and low or non-yielding pre-development assets. The group will not start any more speculative office development until its two major under-construction projects in London at Thirty High and Timber Square are substantially leased.
CBRE and JLL are the retained leasing agents for Timber Square. JLL advised BP.