Joint venture pushes forward next generation, carbon neutral office scheme in Central London
Rocket Properties and 4C Group, as a joint venture, have confirmed that they have entered into a development agreement with TfL to enable the proposed development at 60 Aldgate to come forward. This landmark development, which has a projected GDV of £450M puts ESG and sustainability at the heart of its design whilst offering a sought-after location as well as the large, optimised floorplates demanded by modern occupiers.
The development agreement with TfL effectively gives the green light for construction to commence, with Q1 2024 the expected start date. Initial work between the joint venture parties (Rocket Properties and 4C Group) and real-estate consultancy, Kauffmans, has made a serious proposition of 60 Aldgate. Now, this latest milestone can bring the development to fruition.
The site sits on Aldgate High Street, a minute’s walk from the Aldgate Tube station and a stone’s throw from excellently-connected Liverpool Street station. This hub now boasts the Elizabeth line, quickly connecting the development to both the wider City and Heathrow Airport. The local area is a London location with ancient roots, demonstrated by some of the historic architecture on show at Aldgate Square, such as St. Botolph’s parish church. This is juxtaposed by some of the modern, stand-out developments that the area has seen in recent years. This has not only attracted big names to the area including tech giants BT, it has also cemented Aldgate’s position as a key link in the London ‘Tech Belt’.
This status only adds to the appeal of the development, which comprises 255,000 sq ft of highly sought-after office space in an under-supplied, highly desired part of London. 60 Aldgate sits within a wider site that also features the Canopy by Hilton and The Haydon, respectively providing hotel and residential facilities. Opened in October 2021, the luxury hotel provides 340 rooms and high-quality amenities. Meanwhile, the residency will provide 88 private units set within a stunning, modern development that boasts breathtaking views across the city.
This state-of-the-art scheme benefits from green spaces, both at street level and throughout the building, with an inside/outside design set to benefit all that use it. From its planted terraces to its air quality and the net-zero, emissions-reducing approach to construction, 60 Aldgate will be developed with the planet in mind. 60 Aldgate will target various green accreditations, including WELL Platinum and BREEAM Excellent ratings. These credentials reflect TfL’s own commitment to sustainability.
The next key stage ahead will see a period of enabling works taking place. The conclusion of these works coincides with the end of the forecasted period of uncertainty in the financial and construction markets. This is a bonus for the scheme, which has been structured strategically to reduce risk prior to the full commencement of construction works.
This deal represents another project to be successfully delivered by Kauffmans, who have experience with similar-sized developments around London and beyond. Thanks to their in-depth knowledge and 10 years’ experience with the scheme, Kauffmans has been retained in its capacity to advise the joint venture moving forwards.
Having advised TfL since 2012 on the site, Cushman & Wakefield have played an integral part in supporting the evolution of this project in TfL’s portfolio, culminating in this development agreement. TfL was also advised by Ashurst LLP. The Joint Venture between Rocket Properties and 4C Group was advised by BCLP LLP, Fladgate’s LLP and Kauffmans.
Tom Appleton, Chairman of Rocket Properties, said: “On behalf of Rocket Properties and our joint-venture partners 4C Group, we are so pleased to have signed this development agreement with TfL for 60 Aldgate. This major milestone enables us to begin work next year on our net zero-carbon office development, which will be well placed to satisfy the resurgent demand for best-in-class office space in the capital. Alongside extensive outdoor and amenity space, 60 Aldgate will set new standards for sustainability and technology in the workplace, meeting the requirements of modern, forward-thinking occupiers”.
Martin Teodorczyk, Senior Property Development Manager at Transport for London, said: “We are thrilled to have entered this development agreement that enables the delivery of highly sustainable and energy efficient office and retail properties at Aldgate. When completed, the wider scheme will also improve public spaces while making it easier for people to travel sustainably in the local area. Improvements include the provision of new and enhanced pedestrian routes and cycle parking. This agreement forms part of our wider programme of using our land to generate vital revenue to reinvest in the transport network.”
Marsha Rabinovich, Director at Kauffmans, said: “We’re delighted to bring another landmark London development forward. Both Rocket Properties and 4C Group have been crucial in getting 60 Aldgate to this stage. Now, with TfL on board, we’re excited to take the scheme to the next stage. This will be a pillar of sustainability for office development, not just in London but around the world. In spite of the economic challenges that we’ve all been presented with recently, we have seen state-of-the-art office developments like this be highly resilient, with interest high among funders, developers and occupiers alike. This scheme will deliver a well-positioned, high-quality space, with supreme ESG credentials. All of the ingredients of 60 Aldgate have been carefully considered. We knew that getting these elements right and working in harmony was key here in order to de-risk the opportunity as much as possible. We’re pleased to see that the team has been able to achieve this here.”
60 Aldgate promises to be a local icon. Conveniently connected and beautifully designed, it will be a pillar of sustainability and a new statement in office developments. Offering 255,000 sq ft of highly sought-after office space, it will be a London landmark that appeals to a global audience.