Development Securities has announced that SWIP Property Trust will commit £92 million to forward-fund 12 Hammersmith Grove, the second phase of their development on the former NCP site in central Hammersmith.
12 Hammersmith Grove will provide 167,000 sq. ft. of grade A office space over eleven floors along with new restaurant space and additional public realm. The development will be built speculatively with construction starting this May and completion due in Q1 2016.
The 375,000 sq ft overall development includes 10 Hammersmith Grove which completed last year and is now part-let. The first phase of the development was also funded by SWIP Property Trust for £50 million in October 2011.
Developed on the site of a former car park, 10 and 12 Hammersmith Grove are a significant new commercial and leisure destination in the centre of Hammersmith adjacent to the underground station.
Transport for London own the freehold to the site and in 2010 established a 175-year lease agreement with Development Securities to enable the development of the office-led scheme. TfL remain a partner in the development.
Julian Barwick, Development Securities, said: “We are delighted to be progressing 12 Hammersmith Grove in partnership with SWIP Property Trust with whom we also developed 10 Hammersmith Grove. The appetite for premium office space in locations such as Hammersmith, on the edge of London’s traditional office core, is growing, as occupiers are increasingly price sensitive and yet still discerning with regards to quality. The supply of grade A office space in Hammersmith is otherwise very limited with 10 and 12 Hammersmith Grove providing the highest quality space in this market. We look forward to bringing the final phase of development to completion.”
Kerri Hunter, SWIP Property Trust said: “Encouraged by continued momentum in the occupier market, we’re pleased to be adding this final phase at Hammersmith Grove to the fund’s development programme. The first phase, 10 Hammersmith Grove, surpassed our expectations and we’re keen to build on its success by delivering a similarly high quality building into a market that is increasingly starved of supply.”
Anthony Bickmore, Head of Property at TfL, said: “We’re delighted to continue our partnership with Development Securities and SWIP on the regeneration of 12 Hammersmith Grove to deliver much needed office space and retail units whilst creating thousands of jobs in Hammersmith. The revenue we generate from this partnership will be reinvested back into the transport network to deliver value for money for fare and taxpayers.”