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MIPIM, Cannes & London, 8th March 2012

Bouygues Development and the London Borough of Newham Reach Principal Development Agreement for £600m Canning Town Centre Scheme

Jones Lang LaSalle advised the London Borough of Newham


Bouygues Development and the London Borough of Newham have agreed the terms of the Principal Development Agreement (PDA) for the £600 million Canning Town Centre scheme. 

Announced at MIPIM 2012’s London Pavilion, the Town Centre scheme was developed by Bouygues Development and its consortium partner One Housing Group and forms part of the London Borough of Newham’s £3.7 billion Canning Town and Custom House Regeneration Programme.

The six hectare site will reconnect the areas north and south of the A13 flyover – i.e. Canning Town Corner with Barking Road and Rathbone Market - to create a vibrant, accessible and safe Town Centre. Phase 1 of the scheme will comprise 179 residential units of private and affordable housing, and a Morrisons supermarket of over 7,000 square metres. Work will start on site in Canning Town during the final quarter of 2012.

The entire Town Centre scheme includes approximately 1,100 mixed tenure housing units, over 30,000sqm of leisure and retail space and over 3,000 sq m of space for community facilities. New pedestrian links and cyclist provision is also included, as well as 1,100 secure parking spaces, and the whole scheme is scheduled to be completed by 2023.
One Housing Group is the RSL for the scheme and Bouygues UK is the main contractor.

Speaking of the PDA, Stephane Slama-Royer, Managing Director of Bouygues Development, said: “Reaching this milestone for such a transformational development is the result of a great working partnership between Bouygues Development and Newham and the dedicated team of agents and advisors who have worked tirelessly to reach this point. To be funding such a massive regeneration scheme at cost is a fantastic achievement for Bouygues Development and we are very proud to be involved in a project that will bring positive change to the communities who live and work in Canning Town”. 

Sir Robin Wales, Mayor of London Borough of Newham said: "This scheme is the real game-changer for Canning Town, and illustrates the scale of our ambition when it comes to delivering regeneration in Newham. More than that though, it is being delivered very much for the local community and with existing residents at its heart. They will benefit from a new town centre and all the opportunities that come with that - jobs, new homes and community facilities. It's through initiatives like this that Newham is bringing together physical and social regeneration to form strong, prosperous and resilient communities."

Clive Dutton, Newham Council’s Executive Director for Regeneration and Inward Investment, said:
“To be delivering a new, £600m town centre scheme in the current market is a huge achievement and testament to the strength of Newham's regeneration vision and our ability to work with private and public sector partners to deliver that vision. The Bouygues Development scheme will spur on not only the wider Canning Town and Custom House regeneration programme, it will also give momentum to the wealth of opportunities throughout Newham's arc of opportunity running from The Royals through to Stratford. It is further evidence that East London and Newham in particular are at the heart of London's future economic growth.”

-ends-


Notes to Editors

Advisors
The London Borough of Newham was advised during the negotiation of the PDA by Jones Lang Lasalle, Navigant Ltd and Trowers and Hamlins.
Bouygues Development was advised during the negotiation of the PDA by GVA, Knight Frank and Speechly Bircham.

Bouygues Development
Bouygues Development is an experienced developer which operates in a number of market sectors in the UK including residential, commercial, student accommodation, mixed use developments, and regeneration schemes. Bouygues Development is part of Bouygues Construction – a world-leading construction and services group. Generating value through creativity and delivery, Bouygues Development enables environments and communities to thrive.

The Canning Town and Custom House Regeneration Programme
The Town Centre scheme is one of many different development projects of Newham’s Canning Town and Custom House regeneration programme. Other projects in the scheme include:

Fife Road
The scheme includes 650 new homes and a new Keir Hardie Primary school with an investment value of over £80M.  In 2010 Countryside was awarded £4.22m from the HCA to progress the scheme.  In addition the Council have agreed a contribution of £2.13m towards the new primary school.  Work on Phase 1, which will deliver 139 new homes and 57 car parking spaces, started on site in June 2011 and is due to complete in 2013. 
 
Rathbone Market
This pioneering £180m scheme comprises 650 homes, new retail units, a market square and a Library Plus.  In addition the development includes an eco garden with green walls and roofs that drain rainwater into a hi tech watering system. In 2010 ECF secured £13.8m funding from the HCA to progress the first phase of the scheme which comprises 271 new homes and new retail units.  

About Canning Town and Custom House Regeneration Programme

The vision for the regeneration programme is to achieve a thriving sustainable community with an economically vibrant town centre where both existing and new residents choose to live, work and stay.

The Canning Town and Custom House Regeneration Programme includes the building of up to 10,000 new homes and two improved town centres. This £3.7billion project aims to transform the area physically, socially and economically.
Canning Town is located close to the Olympic site, Canary Wharf and City Airport, with first-class transport links.

Canning Town’s superb connections give it phenomenal growth potential and the next few years will see an amazing transformation of Canning Town into a desirable place to live, work and visit for a wide range of uses and activities.

Canning Town Centre will be the heart for most of the planned residential development in the area. The town centre will therefore benefit from the significant uplift in its catchment population and underlying socio-economic profile.
This will provide a catalyst for the continued growth and development of the town centre as a retail and commercial location.