LTGDC role in east London ‘crucial factor’ in Inter IKEA Olympic site buy
14 July 2010
The London Thames Gateway Development Corporation’s (LTGDC) role
in unlocking development at Bromley-by-Bow, through an innovative
deal with Tesco, was the crucial factor behind a major investment
fund’s decision to buy the vacant Sugar House Lane site in the
Olympic Fringe, in what Chief Executive Peter Andrews is describing
as a “highly significant moment for East London”.
LTGDC, the Government’s agency responsible for
regenerating East London, has attracted over £1 billion of inward
investment to the area in the last five years and its deal with
Tesco has provided sufficient encouragement for the investment
fund, Inter IKEA, to choose East London over a list of other
international destinations for its latest
scheme.
The Sugar House Lane site, which is currently
occupied by vacant industrial buildings, has the potential for
1,500 homes. Inter IKEA, the investment arm of the Swedish
furniture company IKEA, has been responsible for bringing forward a
number of housing, office and hotel-led regeneration schemes, that
do not include an IKEA store, all over Europe, including Poland,
Luxembourg, the Netherlands and Germany. This is now
something they are endeavouring to replicate here in East London
with a housing-led scheme.
LTGDC recognised the site as a unique
opportunity to promote a mixed-use regeneration scheme to
revitalise a tired and industrial area. The fund was looking at a
series of sites across the UK and following a series of
discussions, LTGDC has secured the trust to buy the land here –
attracted by LTGDC’s ambitions and support for a high quality
mixed-use development. Land use policies for Sugar House Lane
and Three Mills are currently being worked up by LTGDC with Newham
Council. Existing planning policy for the area as a whole designate
a sympathy for local heritage, respect for and improvement of the
local waterway network, retaining an industrial focus and the
potential for family housing as key factors. In early discussions
between the fund and LTGDC these were recognised as essential
ingredients to the success of a mixed use scheme and the parties
are keen to start working together the deliver the vision.
The area they have bought is positioned next
to the site of the recently approved Tesco development, in
Bromley-by-Bow. This was brought about as a result of an innovative
deal with LTGDC, which is to use its compulsory purchase powers, if
necessary, to acquire land for the creation of a new district
centre. In exchange the retail giant agreed to cover land
assembly costs and ensure that their development plans adhere
to local planning policy. The scheme received approval
from LTGDC’s planning committee in May. A mixed use
residential scheme led by RSL’s East Thames and Southern
Housing Group to the north is also in the pipeline which will bring
about the transformation of the remaining land at Bromley by
Bow.
The triangle of land bounded by Stratford High
Street in the north, the River Lee and Three Mills Wall River,
sits next to Three Mills Film studio. Although the site
has in the past supported employment uses, recent years
have given way to high vacancy rates and dereliction.
This prime location, with pending plans for
infrastructure improvements which will enhance connections and
access to road and public transport, also has a number of natural
and heritage assets including secluded waterside views on three
sides and the impressive grade 1 listed House Mill to the south.
A patchwork of variegated land ownership and speculative
development proposals that were contrary to the vision for the area
made the prospect for comprehensive redevelopment of the area in
the foreseeable future seem remote.
Speaking today on the announcement of the
purchase, Peter Andrews, LTGDC Chief Executive said:
“This is a highly significant moment for East
London. With a major global investment fund putting East London in
poll position against other destinations it shows that our vision
for the area’s future is as exciting as it is enticing for
international investors.
“Our vision is for a mixed-use district of the
highest quality, set within an unrivalled landscape of parkland and
waterways anchored by the Olympic Park. Connecting local
communities to major drivers of East London’s economy it will
combine leisure and recreational opportunities and together make a
very special place.
“Vision, though, needs to be allied to
confidence in delivery and our discussions with Inter IKEA revealed
that our track record in the area in making things happen was a
decisive factor in their decision.”