- What Utilities identifies primes five central London development sites for sale
- Why Sites compulsorily purchased for the construction of the Thames Tideway Tunnel will become surplus to requirements
- What next Agents will be appointed to a wider property management contract following a competitive pitch
Thames Water has identified a handful of prime development sites in London for sale, React News can reveal.
The utilities company that provides the water supply for Greater London, as well as the Thames Valley, Surrey, Gloucestershire, Wiltshire and Kent, has earmarked an initial five sites that it plans to sell, all of which will be marketed as redevelopment opportunities.
The sites were predominantly compulsorily purchased by Thames Water for the construction of the Thames Tideway Tunnel, an under-construction 16-mile tunnel running mostly under the tidal section of the River Thames through central London.
The sites will be put up for sale once construction work on the tunnel is completed in 2024, providing Thames Water with an opportunity to recoup some of the £5bn construction cost.
While Thames Water has initially flagged five sites for sale, many of the 27 sites originally purchased as part of the tunnel project are likely to eventually be sold off, as well as some of the 14 areas of public realm.
The sites acquired were mostly substantial residential development sites under land deals, many of which included complex pre-emption, buy back and overage options.
While Thames Water declined to comment on the location of the five sites, they are likely to include the Cremorne Wharf depot in Chelsea; Chambers Wharf in Bermondsey; Dormay Street in Wandsworth; Carnworth Road Riverside in Fulham; and Kirtling Street next to Batersea Power Station.
The five sites are expected to mainly be developed into residential schemes with a combined gross development value of around £600m.
Agents have pitched for the mandate to sell the sites, which will fall under a wider framework contract to advise Thames Water on all aspects of property management. The overall contract, currently held by Savills, will be worth around £30m in fees to the appointed agent, £4m of which will set aside as fees for selling the sites.
Also under the scope of the contract will be further site acquisitions; valuation support; revenue creation from public realm; rent reviews; compulsory purchase advice and advising on any relevant change of use across the company’s portfolio.
The overall Thames Water property estate includes around 5,300 sites across 16,000 acres.