British Land is holding off on the second phase of its Canada Water development on the south side of London’s River Thames, Bloomberg’s Meg Short reported on Oct. 23, citing people familiar with the decision. The report points to soaring costs and lackluster sales. The pause concerns the next phase, not work already completed: The Business Times, carrying Bloomberg’s reporting, says the first phase of homes and offices is finished and British Land will not break ground on the next until conditions improve.
According to the people cited in that account, British Land has sold about 30% of the 186 first-phase homes, putting sales behind target. They said executives chose to focus spending on projects with better return prospects amid construction-cost inflation and regulatory burdens. Representatives for British Land and AustralianSuper, which is jointly funding the project, declined to comment.
British Land estimated Canada Water’s gross development value at £5.6 billion on a 2022 analyst tour, The Business Times account says. That was an estimate made in 2022, not a current valuation. The account says British Land initially secured outline approval for more than 4,000 homes but now expects fewer apartments and more alternative uses, including offices. The mix could change again.
Bloomberg casts the pause as a warning sign for London’s residential development market. The Business Times describes it as a setback amid the city’s housing shortage, while noting that long-running regeneration projects can delay phases and accelerate them when conditions improve.
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