According to Robert Hume, Development Director at Land Securities, when Crossrail makes its appearance in 2018, it will reshape London’s transport, real estate and retail landscapes.
In terms of commercial property, the introduction of Crossrail will be a huge benefit. It will travel from Reading to Shenfield, with visits to Heathrow Airport, the City and Canary Wharf along the way. GVA sees £5.5 billion being added to property values along the route between 2012 and 2021.
One of the major benefits for the sector is the improvement in transport links, in particular to and from Heathrow, which will be a major appeal for domestic and international companies.
The Barbican Centre, for example, has expressed its excitement that it will become “even more internationally accessible because of Crossrail”.
The impact on London’s retail industry has been somewhat overlooked, Hume says, but fashion retailer New Look is willing to pay £3.6 million a year for a store opening in 2017 opposite Tottenham Court Road Crossrail.
Another example of the rejuvenation of the area is Primark’s commitment to the Oriana development, a joint venture between Land Securities and Frogmore. The second phase of Oriana is expected to open at the end of next year, with 64% already pre-let by Schuh and Primark.
Just a short distance away from the soon to be Farringdon Crossrail station, 1 & 2 New Ludgate EC4 will be the only major speculative office developments, to be added to the City supply this year when they are completed in April. The scheme is now 61 per cent pre-let to a US law firm, and a Japanese bank. On top of this, further new office and retail space will follow at the nearby 1 New Street Square, EC4 next year.
And last month Land Securities announced it had entered into a conditional agreement over the acquisition of 21 Moorfields, close to Liverpool Street Station, where the company plans to develop two new office buildings totalling 500,000 sq ft.
Elsewhere Land Securities’ 20 Eastbourne Terrace development will deliver 100,000 sq ft of office space opposite Paddington Crossrail, when it is completed next year.
With the benefits Crossrail is expected to bring, Hume concludes, those with the foresight to act now will reap the rewards.
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