London Mayor Boris Johnson recently announced the launch of a new property development in the East of the UK capital, Simon Morris has now learned.
Regeneration of East End
It’s widely known that the ‘East End’ of London used to be a run-down working class area with a weak property market. Current London Mayor Boris Johnson has made it his mission to regenerate East London, and today houses in certain parts of the East End e.g. Shoreditch, sell for hundreds of thousands of pounds.
Johnson has now announced the latest property development deal he has initiated in order to regenerate East London. Property Magazine International reported that Boris Johnson has agreed to sell 86 acres of Greater London Authority (GLA) land in London Riverside in the East of the City to development firm Segro.
The development deal between Sego and GLA will be carried out over a period of ten years. Within that time Segro will develop industrial units on 86 acres of land across five sites. It’s estimated that Segro will invest £180 million on developing the sites, which they predict can hold 1.4 million square feet of new urban logistics and light industrial spaces. Figures suggest that the property development has the ability to provide 6,500 additional jobs in East London once it’s completed.
Supporting local trades
Ric Blakeway, Deputy Mayor for Housing, Land and Property explained how the deal will benefit East London. He was quoted by Your Thurrock saying: “In stimulating the return of industry to London Riverside, this development shows a real commitment to supporting local trades and presenting new opportunities to attract businesses, keeping east London’s industrial heritage alive.
“As part of the Mayor’s vision for east London, we are working hard to create a mixture of residential and commercial property. Industrial life has long been the lifeblood of communities and SEGRO have great plans to promote training, education and employment. I am delighted to have them on board.”
The announcement of this deal shows just how far Boris Johnson is willing to go to turn London property development into the city’s most prosperous market. This means that 99% of all Greater London Authority Land has now been released for development – this begs the question, how much room is there left for the market to expand into?