Developers join Olympic goldrush

By Giles Broadbent on May 11, 2012 3:57 PM |

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International investors are looking past the Olympic Games to a goldrush of opportunities across the Host Boroughs. While the economic climate has strangled UK growth, East End land has been unlocked.

As well as prime sites around the Olympic Park in Stratford, other areas hosting sporting venues - like the Royal Docks and Greenwich - are sitting in the shop window.

According to a new report, Stratford City alone is likely to flood the market with 13million sq ft of space for offices and homes while the Royal Docks offers the potential for a further 100 acres.

This compares with Canary Wharf and the Isle of Dogs, which took 20 years to create 17million sq ft of offices.

Europe's largest regeneration project has drawn the interest of capital from Canada, Holland, Qatar, Australia, Sweden and German, says commercial property specialists CBRE.

Some £1.6billion of private money has already been invested in east London over the last two years.

Matthew Black, east London specialist for CBRE, said: "A lot of people are wondering what will happen to East London after the Olympic Games, but it is clear that there is already a substantial amount of activity.

"Businesses are moving to the area with over 100,000 sq ft of Westfield's grade A office space having already been let and the 4m sq ft International Quarter set to attract occupiers keen to take advantage of Stratford's transport network.

"Westfield Stratford has also created over 12,000 new jobs and this is projected to rise to 18,000. Around 4,000 new residents will be moving to rental apartments at the Athlete's Village from as early as 2014.

Whereas other areas of the UK have suffered from the inability to secure funding, development in the Olympic boroughs has continued apace.

• Inter Ikea's redundant Sugar House Lane will be transformed with 1,200 homes, 400,000 sq ft of commercial space and a 350-bed Marriott Hotel.
• The £60million urban sustainability Crystal Knowledge Hub is near completion by Siemens in the Royal Docks
• Chelsfield has plans for a 2.5m sq ft retail pavilion concept at Silvertown Quays.
• Pension funds in Holland and Canada have purchased a £870million stake in Stratford City, the athlete's village has been bought for £557million and Germany's Deka paid £97million for Pier Walk Greenwich.

Mr Black said: "The Olympics is just the beginning, enabling the regeneration of an area that could never have occurred in the present global economic climate.

"Unlike other host cities, London's legacy was planned in advance of the Games, which is why the best is yet to come."