Derwent London Plc and Crossrail Ltd. won approval for a plan to develop offices, shops and a theater on London’s Oxford Street, the U.K’s busiest shopping district.
Westminster City Council gave permission for the development at 1 Oxford Street above the Tottenham Court Road underground station, Derwent said in a statement today. The REIT, which focuses on central London, will build two new buildings measuring 25,500 square meters (275,000 square feet) on the land, including a 350-seat theater designed with Nimax Theatres Ltd., a London operator.
Derwent plans to exercise its option to acquire the site when Crossrail, which owns the land, completes works on a subterranean train line linking Heathrow Airport to east London in 2017, it said in the statement. Derwent is betting that the area will prove more attractive to office occupiers when the station opens and that retailers will benefit from the number of people using the trains, resulting in higher rents.
The development “will help in the much needed revitalization of the eastern end of Oxford Street which is essential for the long-term growth of the West End,” John Burns, chief executive at Derwent, said in the statement.