Wood Wharf - Canary Wharf - More than 3,000 new homes coming up!

London Borough of Tower Hamlets gives outline permission to 30 new buildings in London's Docklands, including over 3,000 new homes.

Artist impression of the new buildings on Wood Wharf.

Here is a screenshot from Google Maps, showing the Wood Wharf area.  This area is just east to all the existing buildings in Canary Wharf.  Completion of first phase will coincide with Crossrail in 2018.

The total Wood Wharf scheme will provide 2.6m sq ft of residential, including 3,100 new homes, 1.9 m sq ft of offices focussed on the creative media, technology and telecommunications sector, more than 100 shops, restaurants and cafes, a primary school, an NHS medical centre, a community centre, a hotel and a network of parks and public squares.

Further artist impressions.

Interesting Area?
Most definitely yes!  We have a unit at Lanterns Court, which is further south.  This unit has done extremely well in terms of rentals.  Zero voids.  It must be a great draw to be able to walk to work.  This area will definitely be hot.  Good investment potential for medium to long term.

Price?  Don't know yet, but it won't be low.   We will wait and see.

There will be this very tall iconic building.  It would be very interesting to see the actual design when finalized.  I believe this would be a very tall residential tower.

More buildings.

Happy Investing!

Arrowhead Quay, Canary Wharf by Ballymore - 500M to Canary Wharf Tube

Ballymore has announced that they are looking for joint venture partners to develop three largescale waterside residential developments in London.  One of these developments is Arrowhead Quay, Canary Wharf.

The finalised design proposes two slim towers of 50 storeys (172.4m AOD to top of plant screen) and 55 storeys (188.4m AOD to top of plant screen) in height, to provide a residential-led mixed-use scheme. There will be a total of 792 residential units.  As expected, there will be penthouses on both towers (surely very expensive!)

The towers have been carefully designed so as not to appear as one single mass, however they will be linked at ground floor level with a double height, glazed lobby.

The towers contain:
 • Private and Intermediate residential units;
 • Ancillary residential indoor and outdoor amenity space including podium level amenity space and sky garden, a gym/swimming pool, cinema, residents’ lounge, business suite; and
 • Ground floor retail units and café.

The amenity space proposed at podium level (located at the second floor) provides both communal residential space as well as child playspace. A sky garden is proposed at level 53 of the east tower. Private balconies are provided for all residential units. Further amenity space is provided at ground floor in the form of a publicly accessible ‘western garden’.

Location
The site is bounded by Marsh Wall to the south, the Britannia International Hotel to the west, the Docklands Light Railway (DLR) to the east and West India South Dock to the north.

Zooming out a bit more, the location is very good, even nearer than Dollar Bay Tower, Canary Wharf.

This aerial photo shows you the plot - the red part.

Transport Links - Excellent

• Canary Wharf Station on the Jubilee Line Extension, approximately 500m from the Site
• Future Crossrail station approximately 600m from the Site (2017/18)
• DLR at South Quay Station located approximately 220m east of the Site;
• DLR at Heron Quays Station located to the north of West India South Dock;
• Several bus services within approximately 300m (5 minutes walk) from the site.

Pricing?
Ballymore is now in the midst of looking for a JV partner.  So this project is not about to be launched anytime soon.  However, given the type of pricing seen in Dollar Bay, this one will surely be priced even higher.  Perhaps they hope to entice some rich Chinese developer to partner with them.

Views?  Do share them on our community forum.

Happy Investing!

Dollar Bay Tower Canary Wharf

Dollar Bay Tower - Canary Wharf

One Housing Group, and Mount Anvil are in partnership to create 121 new homes at Dollar Bay, a new 31-storey residential tower in Canary Wharf. Designed by the internationally-acclaimed Ian Simpson Architects, Dollar Bay will offer a range of studio, one, two and three bedroom homes, each of which will enjoy an enclosed ‘winter garden’. A three-storey penthouse will boast 360-degree views of London.

The waterfront site on the Isle of Dogs was acquired from Londonewcastle on 4 April. The £90 million scheme will create 111 homes for private sale and 10 for shared ownership.  This is not a very large development.

Construction will begin in early 2014, with delivery expected in summer 2016.

Location
See Google Maps for the plot. (red dot).  The slim building is located at the entrance to the West India Dock.

A closer look at the location shows you the plot.

According to the marketing website, the walking distances are as follows:
1. Souuth Quay Station (3 mins)
2. Canary Wharf Station (12 min)
3. Crossrail Station (opening 2017 - 16 min)

I have done some checks using google maps and the times are generally accurate.  Living in Dollar Bay would definitely mean that you can walk to work if your work is somewhere in Canary Wharf.

Here are some computer renderings of the development.  The first picture shows you the stunning views a high floor unit would have, if you are facing Canary Wharf.  You can see that the building is located away from the main cluster of skyscrapers and given that Dollar Bay is facing water, you can be assured of good views.  (I don't think they will cover up the water and build a skyscraper there)

See this computer drawing of the entrance of the building.  You are the docks.  Rather cool!  Note that all the units facing Canary Wharf would have unobstructed views of the skyscrapers.  Very ideal.   Of course, the higher you go, the better the views.

Some renderings of the insides.

More views of Canary Wharf from a high floor unit.

Pricing - Selling like Hot Cakes
International Real Estate Agent JLL is marketing this development.

It was released in Hong Kong first and sold like hot cakes. The pricing was £900 to £1100 psf.

Very few units left.  The cheaper units are gone.  High floor units 21st and 22nd storey were still available, the last I checked.  These were asking for £1.2MIL onwards, about 1,300 sq feet.

Views?  Share them in our community forums.  Have a great day.

Happy Investing!

South Quay Plaza (Canary Wharf) - 73 storey residential tower - Berkeley Homes

73 Storey Skyscraper - Canary Wharf (Coming Up)

Berkeley Homes has submitted detailed planning application to Tower Hamlet Council in early April, for a very large residential-led development which would have a slim 250M, 73 storey, residential tower with 947 new homes.  The views from the penthouse would be beyond awesome!

Overview of Proposed Development
The proposal for the plot is one storey of 73 storeys, one building up to 35 storeys, one 6 storey pavilion building and the refurbishment of existing office building.   Demolition and construction is likely to take 8 to 10 years from 2014.

The proposed development will be a residential led, mixed use development comprising residential and commercial uses with some retail, cafes and restaurants at ground level. Looking at the location, it is very close to the foot-bridge that leads you over to Canary Wharf.

This is the plot, from the air.

The development also includes a 36-storey tower fronting onto Marsh Wall to accompany the South Dock building. The proposals outline approximately 20,000 sq. ft. of new retail, dining and entertainment space and will also include a public open space with a riverside walkway.

Planning Application Under Consideration
The planning application was submitted in early April and Berkeley will be working with London Borough of Tower Hamlets to secure planning permission later in the year.  Whether the permission will be granted smoothly, remains to be seen.  Take note that unlike this development, Diamond Tower by Canary Wharf Group has already been given planning permission. (see this blog post)

Tall buildings are not unusual in the Canary Wharf area and hence the London Borough of Tower Hamlets would be used to granting Planning Permission for such tall towers, unlike many other London Boroughs.

Construction is likely to start in January 2015.  (if they can get Planning Permission by then)

Please do share your views on my community forum here.

Happy Investing!

Important Disclaimer - . The views contained in this blog and blog post are entirely mine. We cannot be made responsible for any investment decisions you may, or may not, take. Nothing in this blog can be construed as professional investment advice, as we are NOT professional investors and we are ill qualified to give you any advice.  Read the blog at YOUR own risk

Royal Dockside London E16 - New Asian Business Port

The Royal Dockside development offers brand new luxury apartments and penthouses, 5 minutes walk from Gallions Reach DLR and within 10 minutes walk of London's New Asian Business Port.

New Asian Business Port
The New Asian Business Port  (£1bn investment, 2.5million sqft of office space) has the strong backing of Mayor Boris Johnson. According to this press release, the Mayor is exploring a number of measures with the UK government which would make it easier and cheaper both for Asian businesses to set up and trade internationally from the Royal Docks and for UK companies to export and access Asian and other non-EU markets.

With all the money pouring in from China (especially now that China is really investing overseas, see this post), as well as Boris Johnson's determination to make this a success, it is reasonable to expect that this place will certainly be transformed in the next 5 to 10 years.

All this makes Royal Dockside a potentially interesting investment.  Let's look more closely at this development.  See the following google maps snapshot.

Noise Issues
Similar to Royal Wharf, the issue of noise will plague this development.   Aircraft landing from the East and taking off into the East will fly very close to the development.  See this blog post.

Smell Issues
The development is about 500M to the very huge Beckton Sewerage Treatment Works, as the bird flies. Beckton is Europe's largest sewerage treatment works, and currently undergoing expansion to be increase its capacity.  According to the Thames water website,

"In addition, we will be investing a further £67m as part of a separate project to cover the smelliest parts of the site, including all 16 primary settlement tanks – an area the size of ten football pitches – to significantly reduce odour emissions by 50 per cent."  (what about the other 50%?)

Transport Links 

The development is a 5 minute walk to Galliard Reach DLR.  From there, sample transport links:

DLR
Gallions Reach to Custom House (future Crossrail) - 8 minutes
Gallions Reach to Canary Wharf  - 22 minutes (one change at Poplar DLR)

Remember, DLR is not the Tube.

Here are some issues from the brochure, showing exactly where this development would be located.

Overall Assessment? 
Buy or not to buy? It all depends.  So let's lay out the cold facts.

Downsides
The Airport is not going to move.  The location is not going to change.  No chance of a Tube station coming by or Crossrail station popping up.  The Sewerage plant is not going to shift either.

Upsides
There is nothing much going on in the area now but the New Asian Business Port as well as all the re-generation going on in this area is certainly a big plus.  The Mayor of London is also very keen to make this some sort of showpiece, so you can be sure that things will move.  Will this become the next London CBD? It is possible, but that would likely take some time.

Canary Wharf has more than 16 million square feet of office space. She is still expanding and prospects are looking good.  See this blog post on international developers moving into London, especially Canary Wharf.

The new Asian Business Port would give Canary Wharf some good local competition which is not a bad thing.

Does Not Fit Into Our Investment Strategy
Personally, we wouldn't buy into this development because it does not really fit into our investment strategy. We find the location too far, too off-the-beaten track, so to speak.  (Maybe we are just not true risk-takers)

But this is not to say that developments in the Docklands are not a good investment.  The marketing people will tell you that this place the potential to easily reach 1,000psf so purchasing at 500psf is already a good deal.  If the Asian Business Port becomes anything close to Canary Wharf, then 1,000psf won't be a problem.

Please be clear of the upsides and downsides, and make up your own mind.

PS: I thank one reader of my blog for alerting me to this development and for sending me the development brochure.  I seriously doubt the marketing people told you the existence of Europe's largest sewerage plant. Cheers!

Important Disclaimer - . The views contained in this blog and blog post are entirely mine. We cannot be made responsible for any investment decisions you may, or may not, take. Nothing in this blog can be construed as professional investment advice, as we are NOT professional investors and we are ill qualified to give you any advice.  Read the blog at YOUR own risk

International Developers moving into London, UK property

Will international developers raise the bar in London's residential development market? This March 2014 report is worth a read, full report available online for free.

This publication looks at the growing trend of international developers moving into London. This appears to be a rather recent phenomenon. Singaporean buyers would have heard of Oxley Groups first foray into London, via their Royal Docks project. Developers from other countries, especially China, are also moving into the London property market.

London needs new homes. Only 15,000 units were completed last year (2013) while the Greater London Authority suggests demand will be closer to 42,000 per annum over the next decade. Demand way exceeds supply - nobody disputes this.

JLL is confident that the recent entrants into the London Developers' market is not one-off. JLL cites China's Greenland Group, Qatari Diar, Hutchinson Whampoa (see my blog post on Convoys Wharf), Singapore's Oxley, Knight Dragon from Hong Kong and SP Setia of Malaysia.  Certain members of the Kwok family also have interests in the Lillie Square, my Earl's Court development.

To quote, "London's lost capacity, and huge volume of undersupply, represents a big opportunity."

The report notes that one of the challenges that international developers face when expanding into London is the lack of scale. London's planning system is a lot more conservative and cautious, compared to where these developers are used to operate.

See the following table for examples of projects by international developers.

Canary Wharf
The report goes into a lot of detail and projects about Canary Wharf. This place has reignited over the past 18 months, following years of inactivity. They have more than 1,200 units under construction. Prices are soaring around the Wharf and the second-hand market is as active now as it's been since the credit crisis. At many developments, prices are 15-20% higher than a year ago, which is staggering.

The dynmics of Canary Wharf housing market have changed too. It is no longer Wharf workers only. Many people move here from West London or South London, attracted by the bright, new build product on offer as well as the lively leisure offerings and great connectivity. There are good restaurants, great shopping, and even escape routes like London City airport. All will get even easier when Crossrail arrives. People love to buy and rent here.

Interview Excerpts - Greendland in London (Page 6)
(GM of Greenland UK, Wenhao Qian)

Greenland Group has only recently entered the UK, with the first project in Wandsworth Town. They are also working on an ultra-high-rise apartment project at Canary Wharf which looks set to become the tallest luxury apartment building in the UK.

Why is Greenland investing in the UK?

London is the financial centre of the world, it is an international city, mature in economic terms, open and accessible and is the most diverse city in Europe. London is also very central in the British economic resurgence. Therefore, London is a milestone on the road of glboal market development for the Greenland Group.

Our thoughts on the Supply in London
Supply is tight, demand is high. What is new now is the entrance of international developers. All this bodes well for the London market - a huge magnet.

From a Singaporean perspective, can you not see that the supply is crazily tight in London?

Think of it this way. The entire Canary Wharf, which is now supposedly so hot, has fewer than 1,300 units in the pipeline. Already, Canary Wharf is one place in London where developers can get planning permission to build high.

A single medium sized condo development in Singapore can easily hit 500 units. Mandarin Gardens (East Coast Park), completed in 1986, has 1,000 units. Commonwealth Tower, just launched, will have a total of 845 units in two 43 storey blocks.  The Pinnacle@Duxton, has almost 1,900 units.

The entire pipeline in London Canary Wharf - 1,300 units, and JLL is raving and ranting about it.

Commonwealth Tower - 845 units, just like that

Happy investing!

Lanterns Court, Denison House, Canary Wharf Part 2 (Flat Interiors)

Denison House, Lantersn Court, Canary Wharf Part 2
(Google Maps - 51.497911, -0.020688)


Here we are, at the entrance to Denison House.  The total distance from Canary Wharf Tube station to here is about 900M.  I took about 10 minutes to do the walk, though I did stop to take photos along the way.

Once inside, the feel is like a business hotel.  Here are all the mailboxes.

There were some seats, presumably for waiting.

That is the concierge.

This is the entrance to the lift lobby.

It looked rather neat.  Simple in design, yet elegant.

I have entered out flat, which is on the 4th floor. Note that our flat was very small, only 397 sq feet.  For this reason, we think that it may not be easy to sell for a good price.

The living room and kitchen area.  In order to rent out to a Corporate Let, you would usually have to furnish the apartment to a fairly high standard.  When I visited, the tenant was not in.

There was a small dining table with some chairs.

The fridge was rather empty.  Not unusual, since this flat was used by Bridgestreet for its clients.

Freezer compartment.

Bridgestreet - no smoking in the apartment, which was very good for us.

The sofa.

You can see that the overall space is quite small, though the look and feel is still acceptable because the apartment was very brightly lit.

The bedroom. No, there wasn't anybody sleeping under the covers.

No smoking sign again, good.

The window in the bedroom.

That is the wardrobe.  Nothing there.  Most likely the tenant was living out of the suitcase.

That is the wardrobe.

The view from the window.  More apartments opposite, and built very close to this.   It does look very near, similar to the new HDB estates we have.

A small walkway area.

The toilet.

Nice and clean.

Washing machine.

Thanks for viewing!

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