Lendlease to develop £4bn Euston project

Lendlease Europe has been selected by HS2 to deliver the £4bn Euston regeneration project, NW1. Lendlease was chosen ahead of rivals Argent Related’s Euston Regeneration Partnership and Canary Wharf Group with Hong Kong-listed MTR Corporation. Westfield and Landsec were also shortlisted but dropped out of the running in August. The master development partner will lead the regeneration of the 54-acre commercial and residential district, which has been identified as having the potential to create up to 3,800 homes and 3m sq ft of commercial space. See also: Venner in the driving seat as Euston regen gathers speed Advised by Deloitte Real Estate, HS2, the Department for Transport and Network Rail began a procurement process for a development partner in April 2017. Developers and politicians have long been eyeing the site for a potential major regeneration project. British Land was chosen as development partner for the Euston estate in 2007, but plans were shelved in 2012 following the financial crisis and a period of indecision over whether HS2 would be given the green light. Then chancellor George Osborne unveiled a grand vision for Euston in 2014, but was put off by the cost. The London to Birmingham leg of the HS2 route achieved Royal Assent in February last year, following a three-year parliamentary debate. The act cleared the way for the competition to regenerate the site and confirmed the government’s £55.7bn commitment to the project. Working with the stakeholders, landowners, HS2 and the local community, the master development partner’s first task will be to help maximise the development potential through input into the preparation of a masterplan. It will then work to secure necessary planning consents to enable development. In addition to the new HS2 station, a review is under way to redevelop the existing Network Rail station. A Crossrail 2 station has also been proposed for the site. Over-site development plots raised above rail infrastructure, the new HS2 station, and a potential new Network Rail station, will be released in phases, but not before 2026. The partner will then be able to secure the long leaseholds of the sites. The government will own the site freehold. In an EG interview last April, HS2 commercial development director Tom Venner, said: “It’s a long-term relationship. This is a 25-30 year development play, and we need to be thinking about how people work today and how they live today, and how they get around. But also, how it is going to change in five years, 10 years.” The station area is currently dwarfed by its more impressive neighbour King’s Cross, where the surrounding 67-acre site has been regenerated by Argent. No formal announcement has yet been made. It is expected a statement will be released around 8 March. The Opportunity Overview of the master development partner role Near term • Help prepare Euston Station masterplan and Euston planning brief • Secure necessary planning and other consents to enable development Medium term • Assist in station design and interfaces to deliver over-site development plots • Conduct detailed planning and development above and around HS2 and Network Rail stations • Refresh the masterplan • Draw down individual plots for development Long term • Develop above and around HS2 and NR stations (subject to funding for NR station redevelopment) • Manage the completed over site development assets • Maintain over site development buildings and public spaces To send feedback, e-mail Louisa.Clarence-Smith@egi.co.uk or tweet @LouisaClarence or @estatesgazette To send feedback, e-mail david.hatcher@egi.co.uk or tweet @hatcherdavid or @estatesgazette