Carlyle Group LP, the second-biggest private-equity firm by assets, won local-government approval to develop offices, shops and apartments in nine buildings on the south bank of the River Thames opposite St. Paul’s Cathedral.
London’s Southwark Borough Council yesterday granted permission for the project, which includes 489 apartments, about 42,000 square meters (450,000 square feet) of offices and 2,581 square meters of shops next to the Tate Modern art gallery. The plan, outlined in filings by affiliates of Washington-based Carlyle, includes a 170-meter (558-foot) tall residential tower.
The development’s location “is currently extremely under-utilized from a physical, social, employment as well as cultural perspective,” Mark Harris, a managing director at Carlyle, said in an e-mailed statement. “This is a once-in-a-generation opportunity to create a vibrant new destination area, with homes, retail and leisure facilities.”
Construction will be completed between 2020 and 2023, Carlyle said in a statement today. The company will have to pay 65 million pounds ($104 million) toward the construction of affordable housing as a condition of the planning approval.
The residential tower will be 48-stories high and the homes will be built facing the river with the office buildings to the south, Carlyle said in the statement.
The South Bank area is home to some of the city’s most high-profile real estate projects, including a plan to redevelop the site of Royal Dutch Shell Plc’s London headquarters. There are 27 developments under way on the south side of the River Thames that will produce 16,300 homes during a 10-year period, broker CBRE Group Inc. said in a report last month.
Carlyle fell about 1.5 percent to $26.96 in New York. The shares have risen about 3.6 percent this year, giving the company a market value of $8.4 billion.
Dalian Wanda Group, the Chinese developer controlled by billionaire Wang Jianlin, is spending 700 million pounds on a 62-story luxury hotel and apartment building in Vauxhall, about two miles upriver from Carlyle’s project.