Developers face a multi-million-pound bill for fixing the Walkie-Talkie skyscraper’s heat-ray effect, which melted cars in the City over the summer, Land Securities chief executive Rob Noel said today.
The curved surface of the £500 million building, being developed by Land Securities and Canary Wharf Group, focused sunlight and warped the panels of a Jaguar, melting the wing mirrors and badge.
Noel said the solution will cost in the “low single-digit” millions, and should in place well before next summer. He said: “What we have done over the last three months is work on a design solution for this very important building.
“It’s still not finalised, but we will decide next week, get it costed and put it in place over the next four to five months. The design will have to be integral to the building. It will cost in the low single-digit millions and come within the contingency cost.”
The building’s design quirk hasn’t put off potential tenants as the Walkie-Talkie — not due to be completed until next year — is now 76% let or in solicitors’ hands. Noel added: “It’s broken all our estimates. We planned for an average rent of £60 per square fit and so far it’s been £63.”
Occupier demand for Land’s London portfolio is picking up and the firm is “more likely than not” to commit to another new scheme at One New Street Square. Across the group, the firm landed £15.4 million of development lettings and had another £4.7 million in solicitors’ hands at the end of the half.
Noel said these prospects have since been converted, and there are another £7 million in the pipeline. “Interest has really picked up in the last month,” he added.
Underlying profits rose 8.9% to £156.5 million for the half year. The net asset value rose 3.8% to 937p.
