British Land Co. failed to gain approval to develop offices, stores, restaurants and homes on a land plot between the City of London financial district and the Shoreditch technology hub.
The Shoreditch Estate project, which includes 30,000 square meters (323,000 square feet) of office space, was rejected late Tuesday by the Tower Hamlets borough council. British Land obtained an option to acquire the site from the City of London borough in 2013.
“We are disappointed the planning committee didn’t recognize the considerable merits of our scheme,” the company said in a statement.
Occupiers agreed to lease 1.7 million square feet of workspace in the City of London and Shoreditch in the first quarter, the most in five years, according to broker JLL. That has led to a shortage of space and prompted development, with the City of London accounting for almost half the office space under construction in the center of the U.K. capital, Deloitte Real Estate said in May.