Land Securities to start £350m Victoria redevelopment after CIL changes

The scheme, which has been granted planning consent by Westminster City Council, will comprise two buildings. One will be a 14-storey 190,000 square feet office building dubbed the 'Zig Zag building'; the other, 'Kings Gate', will be a 12 storey residential building and will provide 100 apartments. The plans also include 45,000 sq ft retail space and improvements to the surrounding public realm. The scheme will provide for an affordable housing contribution of £11.6 million. Around 2,500 jobs are expected to be created throughout the construction phase.

Land Securities said it was able to go ahead with the development after the Government's announced changes to the CIL regulations this week. The amended regulations allow developers to apply for planning permission under section 73 of the Town and Country Planning Act 1990 (TCPA) to vary an existing planning permission and only be charged any CIL incurred by the variation, rather than be subject to CIL on the whole development.

“It is heartening to know that the Government has listened to the industry and acted to remove some of the uncertainty in the planning process," said Land Securities chief executive Robert Noel. "It enables us to progress with developing the former Kingsgate House site and continue to transform Victoria into a distinct and vibrant West End hub where people choose to live, work and visit. Our experience with our current developments demonstrates that Victoria is proving attractive to potential occupiers. This project will further add to its appeal,” he said.

“Already the changes we are making to the planning system are having an impact, with Land Securities giving the go-ahead to a major multi-million pound investment, supporting thousands of jobs in our construction industry," said Prime Minister David Cameron.

The Kingsgate redevelopment is part of Land Securities wider regeneration of the Victoria area which so far has included a refurbishment of 123 Victoria Street, Wellington House and 62 Buckingham Gate. The developer is also planning a mixed-use scheme at Victoria Circle likely to be phased between 2016 and 2018.

“Despite the uncertainty in the wider economy, we continue to invest in the UK based on our clear plan to build space where we see demand," said Noel. "Our investments not only drive economic benefits for the communities they impact but also social benefits. In pushing ahead now we will continue to make employment opportunities available in order to enable out-of-work Londoners to meet their full potential.”

Land Securities plan to start work on the Kingsgate scheme next month and to complete the redevelopment in the summer 2015.