Diageo to turn global HQ into flats

Diageo plans to turn its former global headquarters in Park Royal, NW10, into a block of 200 rental flats. The drinks giant is in the process of relocating its global headquarters from the 290,000 sq ft building on Lakeside Drive to Lazari Investment’s Turner House at 16 Great Marlborough Street, W1. The seven-storey building comprises 160,000 sq ft of office space and two levels of car parking. On 28 July, Diageo lodged an application with the Old Oak and Park Royal Development Corporation to turn the office into flats, via permitted development rights. The prior approval request was made shortly before new measures came into force that would block developments of this size. This month, the government expanded controversial permitted development rights, allowing conversions of vacant commercial premises to residential premises, despite its own commissioned research concluding that PDR conversions create worse environments, with concerns of “health, wellbeing and quality of life”. Critics frequently slam the mechanism as creating “slums of the future”. Following backlash from the industry, planners, local authorities and MPs, it added the caveat that all permitted development be limited to buildings under 16,145 sq ft. Diageo acknowledges the expiration of the old regime and notes its application ahead of that deadline. Documents filed with the OPDC state: “Diageo are exploring a number of potential options for the building. Given the significant challenge of securing viable office use for a building of this scale and in this location… Diageo are looking at the potential for alternative uses, including residential use.” The company cites challenges in the local office market, in the partial letting of First Central 200 and the fact that maybe other office plans in the 22-acre regeneration have secured consent, but not been built. The application also points to a recent PD application to turn an office at the site into 201 flats. Though this application has received an objection from Brent Council. Diageo also highlights strength in the housing market in Park Royal, specifically at the neighbouring First Central, an area previously occupied as a Guinness factory. The scheme was originally conceived as an office park scheme, but development has shifted towards housing. The development has outline consent for almost 650,000 sq ft of offices and 545 flats – the housing was completed, but no reserved matters have been filed for the office. Instead developer Fairview brought forward a 807-flat 27-storey scheme, which German fund Patrizia agreed to forward purchase as build-to-rent, earlier this year. Diageo appears to be seeking a similar exit as it has flagged the tenure for the flats as private rental. Plans would see a mix of one, two and three-bedroom flats designed for between one and six people. A Diageo spokesman said:  “As announced in 2019, Diageo is moving its global headquarters to central London. In order to support future use of the current headquarter building, a number of potential options for alternate use of the building are being explored, including residential use.” To send feedback, e-mail emma.rosser@eg.co.uk or tweet @EmmaARosser or @EGPropertyNews Photo by Russell Trebor, licensed for reuse under the Creative Commons Attribution-ShareAlike 2.0 license.