* Joins Oxford Properties for 340 mln stg project
* Second large-scale development to be revived in a week
* Shares up 0.4 pct
(Adds share price, background)
By Sinead Cruise
LONDON, Oct 25 British Land (BLND.L) is teaming
up with Canada's Oxford Properties to develop the Leadenhall
Building in London's City financial district, the second
crisis-hit skyscraper project to be revived within a week.
Britain's second-largest property company said on Monday it
had agreed terms to build the 47-storey scheme in a 50:50 joint
venture with the real estate arm of the OMERS Worldwide Group of
Companies, one of Canada's largest pension plans.
The cost of developing the property, known as "the
Cheesegrater" for its distinctive tapering shape, is estimated
at 340 million pounds ($533.7 million).
British Land shares gained 0.4 percent to trade at 509 pence
by 0933 GMT, in line with the broader UK listed property market
Last week, British Land's biggest rival Land Securities
(LAND.L) announced it would resume construction work on a
37-storey building known as the "Walkie Talkie" at nearby 20
Fenchurch Street after striking a similar tie-up with Canary
Wharf Group. [ID:nLDE69I035]
The Leadenhall Building is expected to inject 610,000 square
feet of space into London's supply-starved office market, while
the Land Securities 500 million pound project will add around
690,000 square feet of commercial space.
Both schemes are due to complete in the second quarter of
2014 after long delays caused by a shortage of debt and the
collapse in demand for prime offices following savage job cuts
in Britain's financial sector.
After securing the equity funding necessary to trim the
risks of their development plans, British Land and Land
Securities will be competing directly to find tenants for their
properties at the highest possible rents on the longest terms.
The designs of both schemes offer floorplates of various
sizes, allowing the companies to tap the widest possible market
for tenants, with smaller floors aimed at growing or recovering
businesses and the larger floors aimed at large multinational
News of Oxford Properties' investment in the Leadenhall
Building comes less than a month after it agreed to buy out
partner UBS Global Asset Management in the Watermark Place
office complex, highlighting its growing interest in London's
rebounding property market.
Oxford Properties and UBS-South East Recovery Fund have been
joint owners of Watermark Place since mid 2007.
Watermark Place was fully let to Japanese investment bank
Nomura in 2009.
Oxford oversees and manages approximately $18 billion of
real estate including the Royal Bank Plaza in Toronto, the West
Side Yards in New York and Centennial Place in Calgary.
(Editing by Cecilia Valente and Erica Billingham)
(See www.reutersrealestate.com for the global service for
real estate professionals from Reuters)