Canary Wharf clashes with council over housing plan

A ROW is brewing between Canary Wharf and the council as the property group battles to turn empty office space into residential flats.

The Canary Wharf Group has clashed with policymakers in Tower Hamlets over red tape that could prevent it from converting buildings after a string of companies exited the district.

Plans are afoot to convert entire blocks into a mix of residential, retail and hotel space, as the landlords strive to future-proof the area while workers shun the office

However, tensions have arisen after calls from Tower Hamlets council to keep Canary Wharf office-led.

Paul Swinney, director of policy and research at Centre of Cities, said: “There is tension between the council and Canary Wharf landlords.

“The council is looking to take a longterm view on its plan for the area and they don’t want to be too reactive and change things too quickly. Tower Hamlets and City Hall will have to look at how large London’s economy is and give it the space it needs to grow. We wouldn’t want businesses to look for commercial space elsewhere.”

Talk of a rift with the council comes as the district reels from one of its buildings being sold at a 60pc discount, one of the largest distressed sales in recent years. The property, 5 Churchill Place, bought for £270m by Chinese investor Cheung Kei Group in 2017, recently sold to Israeli real estate firm Ariomori for just £110m. The district was dealt a blow by HSBC’S decision to leave Docklands for the City last year.

In the latest version of Tower Hamlets plan – a document that addresses the needs of different parts of the borough – the council called Canary Wharf “London’s second financial district”.

It said that 40pc of the council’s employment came from that area and that it should remain a “commercial and employment-led development”.

Canary Wharf Group, which owns most of the district’s buildings, wants new shops, cafés and restaurants.

A spokesman for Tower Hamlets said: “Canary Wharf is one of the council’s preferred office locations. We are reviewing how this designation operates in light of the market changes and address this in the new draft local plan.

“We will continue to work closely with Canary Wharf Group to understand their challenges and develop a set of policies which meet our planning ambitions and guide the future development of the area.”

Canary Wharf Group said: “We have a productive working relationship with the Borough of Tower Hamlets.”