Experts confident Heron Tower will fill-up

Grant Prior 15 years ago
Share

Property experts believe the Heron Tower will be fully occupied once Skanska completes construction next March.

The 46-storey structure is the City of London’s tallest building and brings another 439,560 sq ft of office space to the market. No lettings have been confirmed to date.

But developer Heron International chief executive Gerald Ronson was one of the few people to take a punt during the downturn and continue construction of his mega-scheme rather than put the project on hold.

The gamble appears to be paying off with rents on the rise again as a shortage of new office space in the City has been created by a dearth of new building work during the recession.

Ronson said: “Whether this is by luck or judgment, I believe that Heron Tower has come to market at the right time.”

His optimism is backed-up by experts at Jones Lang LaSalle who are highlighting a shortage of prime space in central London.

Neil Prime, Head of Markets at Jones Lang LaSalle said: “We anticipate the continued reduction of Grade A supply and therefore we will see continued rental growth. This supply led recovery will continue due to the lack of speculative development underway to be delivered in the next 2-3 years.”

A Heron International spokesman said: “Marketing only started on Heron Tower a month ago, so there’s no news on lettings at the moment, although initial interest has been strong.”

Ronson has confirmed his faith in the central London market with plans submitted for a £500m hotel, residential and retail scheme next to the Heron Tower.

The 42-storey Heron Plaza will be anchored by a Four Seasons Hotel and Residences complex containing 190 guest rooms and 120 luxury flats.

Ronson said: “This genuine mixed use centre will be a model for sustainable urban development in the Capital.  It will create a new public open space, scarce and highly valued in a densely built part of the City. It will provide much needed, unparalleled hotel and residential facilities which reflect London’s status as the financial capital of the world and support the City’s core mission as a centre for business and excellence.”

But Ronson is worried that any upturn in the economy is being concentrated in London leaving the rest of the country trailing.

He said: “I spend 12 hours, once a week, driving around the country. I don’t like what I see. We are creating a two-tier country where I fear that the consequential effects of significant unemployment will be social unrest.”

Latest news

Comment: Gateway is acting like a barricade

Contractors left banging their heads on an (unbuilt) brick wall
16 hours ago

Final phase of £1.5bn Elephant and Castle revamp hits planning

Get Living submits revised plan for 500 homes and 450-bed student block
2 days ago

Ealing backs final phase of £1.3bn estate rebuild

Friary Park estate rebuild in Acton reaches end stage
15 hours ago

Green light for scaled-down Nottingham student tower

Glasshouse Street scheme will deliver 247 student rooms
16 hours ago

Aston Villa to revamp North Stand

Club to reuse existing structure rather than complete rebuild
1 day ago

Mace signs ex-ISG director to lead Euro health and tech push

Gary Sweeney to head up healthcare and life sciences consultancy arm
15 hours ago

Sir Robert McAlpine claws way back into profit

Firm says return to profit and strong cash balance validates new strategy
2 days ago

Severfield to cut staff by 6% amid pricing pressure

Steelwork contractor warns of extended tighter pricing due to project delays
2 days ago

JRL completes sale of 50% stake to Malaysian giant IJM

Deal boosts balance sheet and kicks starts growth plan
2 days ago

Green light for £100m Liverpool Baltic station build

Enabling highway works to start in the autumn
2 days ago

First live tests for flying construction robots

Drones can lay construction materials at height on site
2 days ago

Three firms land £170m Gentoo Sunderland housing deal

PHS Solutions, Esh and RE:GEN to deliver 10-year home upgrade plan
2 days ago

Gateway gridlock hits build-to-rent delivery as starts nosedive

Build to rent starts plunge 18% in the capital
3 days ago

Call to shift Gateway 2 checks to end building bottleneck

"The current system isn't working but we all want to see safe buildings"
3 days ago

GBN launches £600m bid race for SMR engineer roles

Owner engineers to provide technical and assurance services
3 days ago

Wates hires ex-Homes England chief to head public sector push

Robert Stone to spearhead its public sector and national frameworks strategy
3 days ago

Acheson Construction collapse costs suppliers £8.5m

One frustrated creditor seized a telehandler after contractor went into administration
3 days ago

Dominus wins go-ahead for 173-bed Glasgow scheme

Old Wynd Street job expected to cost around £25m to build
3 days ago

Safety Regulator misses deadline to clear Gateway 2 backlog

Investors pulling out of funding high rise buildings
4 days ago

CITB still sitting on £95m cash pile

Staff numbers jump from 666 to 763 as training body wage bill soars
4 days ago

£500m road surfacing framework market call

NEPO goes out to consultation on north east regional highways deal
4 days ago

Two share £220m Scottish rail repairs and minor works deal

AmcoGiffen and CPMS win civils and building repair deals
4 days ago

Builder wanted for £60m London leisure and flats job

Tower Hamlets aims to replace St George’s Leisure Centre in Shadwell
4 days ago

Contractor confirmed for business park expansion

Roe Developments to start on next phase of Castle Donington scheme
4 days ago

Driver escapes injury as scaffold collapses onto van

Major three-lift scaffold fall blocks north London high street
1 week ago

Gilbert Ash to be sold to staff

£267m turnover contractor to transition to an Employee Ownership Trust
1 week ago

M Group seals biggest-ever deal with Telent takeover

Digital infrastructure specialist deal lifts turnover to £3bn
1 week ago

Aggregates firm Ashville went down owing more than £3m

Debts revealed in Companies House update
1 week ago

Cardo saves 100 jobs at Breyer roofing arm

Private equity-backed Welsh maintenance group continues to expand
1 week ago

Excavator knocked off lorry going under bridge

Traffic Commissioner inquiry after accident in south London
1 week ago

Contractor services