Carlyle Group Approved for £1 billion London Project

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Private equity giant Carlyle Group received approval last night to build a £1 billion ($1.6 billion) residential and office regeneration project on the south bank of the River Thames, creating a new "gateway" to London. 

The Southwark Council's Strategic Planning Committee approved the 1.4 million-square-foot project located across the City of London which will replace the Sampson House data center and the Ludgate House office building, Carlyle announced. 

Construction for the project will begin after the lease expires for current tenants in Ludgate House in the first quarter of 2015 and the Sampson House in the second quarter of 2018. The project is expected to be completed between 2020 and 2023. 

The PLP Architecture-designed regeneration project will include nine new buildings, with the tallest a 48-story residential tower. Carlyle will also contribute £65 million to the council to create 260 new affordable homes in Southwark. 

"This is a once in a generation opportunity to create a vibrant new destination area, with homes, retail and leisure facilities which brings thousands of new jobs to the area, while at the same time allowing us to make a significant contribution to Southwark's wider housing requirements," Mark Harris, managing director at The Carlyle Group, said in the release. 

Residential buildings will be constructed on the north end of the site to capitalize on the riverside location, the firm said. Office buildings will be located on the South, with office floor plans ranging from 2,500 square feet to 13,500 square feet. 

The south bank of the Thames has become a hotspot for developers. There are 27 projects under way on the south side, including more than 16,000, according to a recent CBRE report.