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Council supports major city centre office development

Published on Wednesday, April 4, 2018

LEICESTER City Council has agreed terms to help bring forward 34,000sqft of new office space as part of a major city centre development scheme.

The deal is linked to Charles Street Buildings’ £50milllion redevelopment of the former Stibbe site between Great Central Street and Vaughan Way. This will see the creation of two new hotels and an attractive new public area linking the city centre to the Waterside, along with the major new office development.

It will also see the refurbishment of the former Great Central Station which will be brought back into commercial use.

As part of this, the city council is set to enter into an agreement that will commit the developer to completing the office part of the development at the same time as the other elements. In return, the council has agreed terms that could see it leasing up to half of the new office space if this is still vacant within six months of completion.

City Mayor Peter Soulsby said: “In all likelihood, the developer will have no difficulty finding tenants for this exciting new development. Top grade office space in the city centre is in short supply but we know there is demand for it.

“Recent major investment shows a growing confidence in Leicester and it is important that the council continues to encourage the type of development needed to support growth and new jobs. This kind of fall-back agreement can be a useful tool in helping to achieve that.

“The Charles Street Buildings development is a vital part of our vision for the regeneration of this part of the city, and will bring major investment into an area that has long stood vacant and neglected.

“Along with the redevelopment of the New Walk Centre site and our plans to create 60,000sqft of office space in the Waterside area, it will also help mark the most significant period of new office development in Leicester in over a decade.”

Joseph Murphy, director of Charles Street Buildings, said: “Charles Street Buildings is working very closely with Leicester City Council to deliver regeneration in the Waterside area. Our agreement concerning the new build office is an element of this and will enable us to move forward with this part of the development on a speculative basis

“This will be the first large scale office available for commercial letting within Leicester city centre for many years. It will provide the highest quality office accommodation for businesses already based in Leicester as well as helping to attract new business into the city.”

Work on the new offices is expected to be complete in late 2019.

The full terms of the agreement will not be made public at this time due to commercial sensitivity.

The major redevelopment will see the creation of a new ‘super-crossing’ across Vaughan Way itself and the creation of a safer and more attractive route connecting the city centre, the new developments and the Waterside area.

Leicester City Council is contributing £2.9milllion toward the highway work as part of the Connecting Leicester programme.

A formal decision is due to be taken on the option to lease agreement by Wednesday, 11 April.