Final Wick Lane Research Report Mar 2006

419 Wick Lane “An Olympic Vision”

Table of Contents

Introduction

3

Location

5

Site

6

Local Amenities

7

Local Area Analysis

8

Transport

10

Newham Aim

13

Population Projections

14

The Thames Gateway

14

The Local Housing Market

16

The Local Rental Market

19

2012 London Olympic Games

20

Non Olympic Regeneration

26

Stratford City Development

29

Canary Wharf

30

Developments in Area

32

Developer

33

Appendix

35

2

Introduction Fish Island is an area with unparalleled future investment potential. It is one of the last corners of undiscovered inner city London, situated on the water, right on the doorstep of the Olympic park and within 1km to the future Stratford City development. The regeneration of Fish Island is well under way with an array of contemporary new build developments fronting the River Lea and a whole new community infrastructure in the pipeline. Over the past 50 years Fish Island has been culturally led by surrounding industrial buildings, however in the last 5 years the area has seen major change in which warehouses and factories are being rapidly converted for loft living and studios. This transformation is attracting huge attention and the rapid change from an area traditionally renowned for light industry, has become a cutting edge and hugely sought after residential destination.

River Lea

Fish Island

Olympic Village

The image above shows Fish Island and its proximity to the proposed 2012 Olympic village.

3

Several factors are driving this change, the most important of which include: -

Proximity to an extensive transport network

-

Proximity to Canary Wharf

-

Large-scale governmental regeneration to the Thames Gateway

-

The 2012 London Olympics

-

Stratford ‘City’ development

This study explores how the factors listed above will directly impact the area and their subsequent impact on long-term housing prices.

4

Location Fish Island is an area situated between Hackney and Stratford. The Fish Island Development Area (FIDA) has a total area of 53.8 hectares. It straddles three major waterways - the Hertford Union Canal, the Lee Navigation (also known as the Hackney Cut) and the River Lea. The River Lea forms the eastern boundary of the FIDA, and the Hertford Union Canal joins the Lea Navigation (Hackney Cut) to form the water junction of three precincts.

FISH ISLAND Stratford 1100m

Adjacent to both Victoria Park and Stratford, Fish Island residents will be able to enjoy the Victorian gardens; fountains, ponds and tearooms, of the Park and the amenities of ‘Stratford City’, the forthcoming vibrant, urban redevelopment project and what will ultimately be the most advanced and exciting leisure and recreation facilities in Europe: The Olympic Park. Included in the plans is a route for walkers and cyclists in which one will be able to reach the Thames along a serene and beautiful river walkway.

5

The Site

419 Wick Lane

An aerial view of Wick lane.

Located on Wick Lane, the development site is ideally located for contemporary riverside living in London. As outlined, the area in which Wick Lane is to be developed is currently the focus for a major urban regeneration project and is now known by Newham council as “The Arc of Opportunity”. Wick Lane with its futuristic lines, staggered balconies and prominent position along the waterfront will be one of the most aesthetically impressive developments in the area. Its prominent location on the River Lea and its impressive views of both The Olympic Park and Canary Wharf will help 419 Wick Lane to become a landmark scheme in the area. As with our other developments in the area, we continually strive to raise the benchmark around which future developments will need to scale.

6

Local Amenities Restaurants Roman Road is situated 500 metres from Wick Lane, parallel to the Old Ford Road. The road offers an eclectic mix of fine eateries in which cuisines ranging from Italian to Thai and French to Caribbean can be found. Restaurants include ‘The Fat Cat Café, located adjacent to Victoria Park, voted one of the top twenty chains of restaurant to dine, by “The Sunday Times” food section. Roman Road is very popular with people in and around the area thanks to its buzzing markets and wide variety of shops. Art Galleries, Bars and Culture Traditionally areas like Shoreditch have been famous for its rock and roll type of make up. In addition to all the gastro pubs, concerts and art galleries to visit, the area is now emerging with a wide selection of organic food retailers. Restaurants and bars serving appetisers such as Sushi are also proving very successful. These tastes are rapidly expanding to nearby areas such as Hackney (half a mile from Wick Lane) in which the world famous ‘Hackney Empire’ is located.

Victoria Park and surrounding pubs and Wine Bars Victoria Park is amongst the largest outdoor spaces in the capital. Located approximately a 5 minute walk from Wick Lane, one will be able to take advantage of the stunning walkways surrounding the park. As well as this, in and amongst the park are some of the finest GastroPubs in the capital. Frequently packed out, locals and visitors are able to enjoy a gourmet pub meal whilst enjoying the views and luxurious ness that Victoria Park brings with it. .

The Crown Pub, Victoria Park E3

Located at the centre of the park is a large pond which is open to rowing boats in the summer.

7

Local Area Analysis The Development is enviably close to London’s major business and leisure district. It also provides the opportunity to capitalise on the growth expected in the Thames Gateway over the short, medium and longer term.

Computer image of what the aquarium will look like

A key new development which will breathe life into the area and generate huge tourist footfall is the new Aquarium. The Aquarium is being developed on the west side of Pontoon Dock across the road from the attraction will be Pontoon Dock DLR station. When the DLR extension is completed it will be several stops from Pudding Mill Lane. It is set to complete in 2008 and will be the most prestigious facility of its kind in Europe. It has plans for 120,000 sqft of water space, as well as retail, leisure and restaurant facilities

The Excel Exhibition Centre

The Excel Centre is London’s largest single site exhibition centre with 65,000 sqm of exhibition space, attracting some of the most prestigious events in the UK. It hosts approximately one million visitors per annum.

8

The 50 acre Business Park will be the capital’s largest urban business park with 1.6 million square feet of offices and 100,000 square feet of retail and leisure space. It will occupy a one mile waterside frontage space on the Royal Docks and is expected to attract high quality tenants drawn by its strategic location and proximity to the City and Canary Wharf. The site has excellent transport links with two existing DLR stations (Custom House and Prince Street), London City Airport within 400 metres and dual carriageway access.

The Royal Business Park

The first phase of the Business Park, Building 1000, is now nearing completion. It is one of the first major office buildings in the Royal Docks, complementing the existing residential developments and the Excel exhibition centre. Subsequent phases will include retail and leisure as well as further additional office space. These developments are just some examples of the investment taking place to enhance the area and are major contributors to the regeneration plans. As outlined this influx of investment helps boost the local economy, creating employment and increased demand for skilled labour, housing, new hotels, leisure facilities, restaurants and bars. The University of East London’s new campus was officially opened by Ken Livingstone on the 4th of July 2000. It features accommodation for 400 students and facilities for 5,000 students studying design, technology, engineering, arts, humanities and social sciences. A key component of the University is the Thames Gateway Technology Centre – a one-stop training facility for new and existing companies in the East of London. The Centre provides business start-up space and advice, and a technology resource centre. As always a new university facility will bring prosperity and vibrancy to an area and the local economy.

Aerial View of the Royal Docks - the new UEL Campus is shown to the right of the near end of the Airport's Runway (left). The new UEL campus located on the north side of the Royal Albert Dock (right).

9

Transport Fish Island stands to benefit greatly from the rapidly expanding transport network in the Lower Lea Valley. It is already adequately served in rail terms. It is within walking distance of Pudding Mill Lane DLR (13mins), Hackney Wick rail station (10mins), Bow Road Underground (15 mins) and approximately a 20 minute stroll to Stratford (the fast emerging transport epicentre for East London). Road The development is perfectly placed to take full advantage of the fantastic road infrastructure. It lies 2 minutes from the A12 which joins both the A406 (North circular around North London) and the M11 to Stansted, Cambridge and the East of the country. Within two miles the A12 joins both the A11, A13 linking to both the City and Essex respectively. Just under the Blackwall tunnel is the A2/M2 which links to the M25 within 9 miles and other motorways including M20, M23, M3, M1, M4 and M40 within one hour. Air The development is within one hour of all the major airports in the South-East -

City Airport 10 mins Stansted Airport 30 mins Gatwick Airport 40 mins Heathrow Airport 60 mins Crossrail

The Crossrail project is a proposal for a new East-West railway running underground through central London. This project should reduce the current overcrowding on London's rail network by providing a large increase in rail capacity. The Crossrail project has the potential to transport over 150 million passengers per year. Crossrail has been allocated £154 million from the Department for Transport's 10-Year Plan budget to carry out feasibility work on the project and to acquire the necessary permission for Crossrail Lines 1 and 2.

Artist’s impression of Crossrail carriage under the city

The proposed Crossrail initiative promotes the development of two new routes through London: Crossrail 1 (East-West) and Crossrail 2 (Northeast Southwest). Crossrail will enable commuters to traverse London with much shorter commute times. The Crossrail service would replace various National Rail suburban services in order to free up capacity at terminals like Victoria, Waterloo, King's Cross and Liverpool St. 10

By 2012, Crossrail 1 is projected to serve Heathrow and potentially London City. Crossrail 2 could also serve Heathrow thus improving access to the airport from south London. There is also potential for Crossrail 2 to serve Stanstead. This would mean that all 4 major London airports would be served by cross-London services (Crossrail 1 & 2 and Thameslink 1000), enabling all transfers to take place with a maximum of one interchange. The link will either run from Hackney up the Lea Valley, or will use a new alignment from Epping past Harlow to reach the railway to Stanstead. Either option should spell increased benefits for Fish Island residents. With the Crossrail network running through Stratford, predictions of 24 trains per hour will run on the central section, carrying up to 160,000 passengers an hour at peak times.

Crossrail 1 Route

River Crossings The Woolwich Rail Tunnel - In February 2004 the Government approved a Transport Works order for the further extension of the City Airport Extension of the Docklands Light Railway (now under construction) from North Woolwich to Woolwich Arsenal. A completion forecast is set for 2008. The Thames Gateway Bridge - A new local road bridge on the northern part of the alignment of the former ELRC. Scheduled to be complete by 2013.

Artist’s impression of what the Thames Gateway crossing will eventually look like

The Silvertown Link - A crossing between North Greenwich and Silvertown to relieve congestion in the Blackwall Tunnel. This scheme is currently in the process of assessment 11

and consultation. If approved, Fish Island will benefit greatly as the A12 will be significantly relieved and thus attract greater inward investment due to improved ease of access.

Silvertown Link Crossing

The above mentioned river crossings will really help East London to transform itself by freeing up congestion on the A2 and Blackwall tunnel in the mornings and evenings. This will accelerate the key contributing factor for major blue chip relocations to the area because of proximity to the heart of the financial capital of the world and ease of access to motorways, rail, air and sea connections.

Eurostar - The new Eurostar terminal at Stratford is due to be open in 2007 creating a gateway to Europe with journey times of just 2hrs 20 minutes to Paris. A new domestic service from Kent will also serve the station, together with further expansion of the DLR to provide quick connections to City Airport, Stanstead and Heathrow.

Stratford Rail Terminal

12

Key journey times from Fish Island: •

60 minute drive to Heathrow

•

40 minute drive to Gatwick

•

27 minute drive to Oxford Circus

•

15 minute drive to M25 (J2), Kent Junction

•

33 minute drive to A40/ A3220

•

10 minutes on the bus to Canary Wharf

•

2 minutes to Stratford from Pudding Mill Lane DLR

•

3 minutes from Hackney wick to Stratford

•

10 minutes to Canary wharf from Pudding Mill Lane DLR

•

10 minutes to Bank from Bow Road Underground

•

16 minutes to Bank from Pudding Mill Lane DLR

•

1 minute drive to the A12 for journeys North or South and to the Blackwell tunnel.

* All journey times above are approximate.

The Council UDP (Newham & Tower Hamlets) Aim and Objectives By 2010, Newham aims to be a major business location, a place where people choose to live and work. Newham has a thriving economy, a young, skilled population and clearly, some of the most extensive development opportunities in Europe. New infrastructure, new businesses and thousands of new homes have begun to transform the landscape. Situated between Canary Wharf and Stratford, Fish Island really offers the best of both worlds, with a constant flow of business relocation to Canary Wharf and the ever improving Thames Gateway business parks. The growing importance of Stratford as the East London transport epicentre offering the DLR/Jubilee and Central underground lines, bus networks and soon to be, Euro tunnel, residents in Fish Island will be offered a wealth of options. Regeneration plans for the area are at an advanced planning stage, with a great deal of public consultation currently being undertaken. The Olympics will only aid this process acting as a catalyst providing incentives and issuing stringent deadlines with a vision to build on the strength of Fish Island’s excellent location. The council is expecting a huge population explosion with figures suggesting a 30 % rise over the next 10 years.

13

Population Projection

This phenomenal population growth should bring with it a real upward push on house prices and supply is expected to be well below demand over the next 10 years.

Thames Gateway Analysis The Thames Gateway region (TGR) comprises of an additional eight local authorities: The Corporation of London, London Boroughs of Hackney, Havering, Lewisham, Redbridge, Dartford Borough Council and the Thurrock Borough Council. TGR boasts an economically active population of 1.3million, set to rise to 2million over the next ten years. Service industries include professional and financial services, creative industries and ancillary services, all of which are TGR’s top employers. Manufacturing and logistics also rank highly with both sectors having higher rates of employment in the TGR than in other parts of the capital. For example manufacturing accounts for 40% of employment in the London Riverside area and has an average employment rate of 11% outside of the TGR. Logistics account for 20% of employment with an even spread of density across the whole of the Thames Gateway London area reflecting a particular strength in both regional and international logistics. TGR accounts for nearly a third of London jobs. As a location it accounts for 22% of London’s businesses. The Thames Gateway’s population is expected to continue the growth that has been seen since the 1990s. Studies by local independent bodies predict the Thames Gateway to have one of the fastest growing populations in the London area with a projected 11% increase between 2001 and 2016.

14

Outline of the Thames Gateway District

Tower Hamlets, Newham, Barking, Dagenham and Greenwich are all amongst the 20 local authorities with highest levels of deprivation amongst their populations. This has led to great swathes of the Gateway suffering from high levels of unemployment and social deprivation. This is characterised by low levels of educational attainment, low activity rates and high unemployment. The problem of demographic and economic restructuring has also created major opportunities for spatial and economic restructuring both to serve the current residents, but also to accommodate wider development pressures within the South East. These are the main reasons developers are targeting these areas and the proximity to the new office and business centres will ensure a constant if not overwhelming flow of new owners and occupiers. By 2020 London Thames Gateway looks to become an extremely desirable location for living and working. Employers are drawn to advantages of a new and efficient transport system, a skilled workforce and an exciting innovative residential planning policy. At the current rate plans are well on track to bring this date forward by 4 years.

15

Housing Market The excellent transport links and proximity to Canary Wharf (10 minutes by bus) have helped prices to rise, however seasoned investors see Fish Island as relatively affordable in this area of London. They look to the impact of the Olympic and Non-Olympic plans to promote an upturn in prices in the area. Two bed comparisons in E3 The prices of comparable two bed apartments in the area range from £230,000 to £340,000. Evidence suggest that location, aspect and specification play a huge part in the pricing of these units and ultimately their re-sale value. The following is a list of suitable 2 bed comparables in the E3 area:

Connaught Works, London E3

Stunning 836 square foot 2 Bed unit with car parking at Connaught Works, a beautiful warehouse conversion by the park and canal in Bow. 285,995/342 per sq ft Bridge 020 7749 1400

Island House, Bow, E3 This stunning apartment forms part of this stylish new development located by Bow Creek and Three Mill Studios. It comprises two double bedrooms with floor-to-ceiling windows, two contemporary bathroom suites, a fantastic open-plan reception and kitchen, with off-street parking and a superb decked balcony offering views of Bow Creek, Canary Wharf and the City. 289,995/386 per sq ft All Sold Keatons: 020 8981 7788

16

Russian Penthouses, London E3 Magnificent penthouse apartment. This property comprises two double bedrooms, reception, well-fitted kitchen, bathroom and a private balcony, close to transport network. £294,995 or 369 per sq ft All Sold Land and Co: 020 8981 7999

Stoneleigh Mews, E3 Contemporary gated 2-bed maisonette enjoys naturally bright south-facing accommodation with a unique, high spec finish and wood floors throughout. It comprises reception room with high ceilings, open-plan kitchen, and master bedroom with high ceilings, 2nd split-level bedroom and a bathroom, located close to Victoria and Mile End parks. Near to Mile End station. 753 Sq Ft 275,000 or 365 per sq ft All Sold Foxtons: 02070331414

Fabrika, Old Ford Road, E3 A 21st century urban community, with heart and soul. Stunning 760 sq ft 2 bed apartment in one of London’s most desirable locations. 259,950 or 342 per sq ft All Sold www.fabrika.co.uk: 0207 4220989

17

The Lock, Blaker Road, E3 Brand new development by Bellway homes. Located just off the A12 with riverside views. Each unit is finished to a high specification inclusive of a private balcony. Approx size – 608 Sq Ft 274,995 or 452 per sq ft Land and Co: 020 8981 7999

Set within the historic Bow Quarter development is this fantastic galleried warehouse conversion. Apartments have use of facilities including landscaped gardens, swimming pools and a gym. This particular unit is 770 Sq Ft. £289,950 or 377 per sq ft Keatons: 020 8981 7788

Gun makers Lane, Bow E3

A stunning 854 sq ft 2 bed loft set within a classic period warehouse conversion by Victoria park in Bow. The property has a very high standard internal spec. Parking is at an extra cost. £299,995 or 351 per sq ft Bridge 020 7749 1400

Falcon Works, Bow E3

A 2 double bedroom warehouse conversion, featuring exposed brick work in many rooms, wooden flooring with factory style windows. The unit is on the third floor and is approximately 800 sq ft. £319,950 or 400 per sq ft Hurford Salvi Carr 020 7791 7011

18

The Rental Market The rental market in the area appears strong, attracting a diverse mix of people, from students to professionals in Canary Wharf taking advantage of the affordable property just a short distance from work on the DLR. The table below is a brief summary of rental comparables from various agents for properties of a similar specification. An extra row has been added to highlight the achievable rents on new builds. Properties

Winkworths

Felicity J. Lord 235pw

Forte Homes 245pw

Average Price

235pw

Alan Harvey 240pw

2 Beds (average) 2 Beds New Build

270pw

280pw

275pw

270pw

274pw

239pw

All properties chosen for the purposes of these comparisons were selected to be as comparable as possible both in terms of location and age – most were under 5 years old.

Winkworths: 020 8981 6776 Alan Harvey: 020 8980 1111

Forte Homes: 020 8880 6660 Felicity J. Lord: 020 8981 3666

19

The Games and the Lower Lea Valley The Lower Lea Valley is a 1500 acre site which stretches approximately 5kms between Stratford and the Thames. The area is the largest remaining regeneration opportunity in inner London. At the present time, much of the Lower Lea is derelict land and suffers from a lack of infrastructure, a run-down environment and a poor image. Most of the existing industry provides low density employment. The kind of regeneration of the area the London 2012 Games can bring will be crucial to transforming the area on an unprecedented scale.

Map of London’s East End

The Games will offer flagship sporting and community facilities, quality housing and improved infrastructure throughout the area. It should also raise the profile for the area with an Olympic caché. 20

The Games will also bring many new opportunities for local people and businesses in terms of better grass-roots sports facilities, more housing, jobs, skills and training. The London 2012 Olympic and Paralympics Games will speed up improvements to the borough's transport connections with improved access to London destinations. While Stratford is already a major transport hub, the London 2012 Games will accelerate upgrades to Stratford station. The Channel Tunnel Rail Link (CTRL) station in Stratford will be in operation by 2007 and will be a critical transport artery for visitors to the Games. The impact of the UK/London hosting the Olympics

London's successful bid to host the 2012 Olympic Games should help boost property prices across the capital with the immediate areas rising in value dramatically, according to the Royal Institute of Chartered Surveyors. The Olympics provide certainty that crucial transport projects in the East end will be built to a fixed timetable and will undoubtedly attract property speculators and investors. The regeneration of the Thames estuary and the Lea Valley development schemes were always earmarked and before the winning bid, east end house prices were rising well above the UK average. The successful bid has served to focus more investor attention on an already hot market and demand for buy to let properties in the area have risen dramatically leading to a noticeable increase in prices. Bow is an established residential area that won’t have the disruption that will hit Stratford. Thus, Wick Lane offers a unique opportunity to investors with its prime location in an established residential market. The regeneration effect from hosting an Olympic games has consistently had a positive impact on house prices in the host city. Each of the previous four host cities have seen house prices rise by more than the national average over the five year period in the run-up to the Olympic Games (the main period of Olympic related development activity).

Olympic Games

5 year % increase on host city

5 year % increase on host nation

% Difference

Barcelona 1992

131%

83%

49%

Atlanta 1996

19%

13%

6%

Sydney 2000

50%

39%

11%

Athens 2004

62%

53%

9%

Average

65%

47%

18%

The data above shows Barcelona as the best performer with prices rising by 131% versus an 83% increase in Spanish house prices in the five years leading up to the 1992 Olympics.

21

Key Findings

Hosting an Olympics is usually associated not only with an increase in sporting facilities but also an upgrade of transport, cultural and leisure facilities. Barcelona, Athens and Sydney all saw a significant upgrading of their urban infrastructure and this city rejuvenation encourages higher house prices. The scale of Olympic redevelopment is reflected in the high costs associated with hosting an Olympics. The Barcelona Olympics was the most costly of the recent Games at an estimated cost £8.1bn. The estimated costs for other Olympics were for Atlanta £1.5bn, Sydney £2.5bn and Athens £3.9bn. Tim Crawford, Group Economist at Halifax states that, "Hosting an Olympic games encourages city regeneration and is usually accompanied by an improvement in facilities and transport links." "These factors tend to be positive for house prices. Homeowners in Hackney, Tower Hamlets and Stratford, will certainly reap similar benefits to other Olympic precincts over the longer term," he maintained. Areas close to the Olympic complex usually see the largest increase in house prices as they benefit from improved facilities and better transport links. This was clearly evident in the main area of development for the Sydney Olympics, (Homebush Bay) a former industrial site (similar to fish island) 20 minutes from the centre of Sydney. House prices in the adjacent suburb, Homebush, rose 70% in the five years in the run-up to the Olympics, compared to a 50% increase in Sydney house prices. The Manchester Commonwealth Games prompted redevelopment and rejuvenation of central Manchester and provided a spur to house prices in the area. In the 5 years leading up to the 2002 Commonwealth Games house prices in central Manchester rose by 102% versus a 52% rise in prices in the North West and an 83% increase in prices across the UK. Five years before the Manchester Commonwealth Games, house prices in central Manchester were an average of £48,796, 23% below the average for the North West region. At the end of the Games year, prices in central Manchester were at a £98,461 level, 2.5% higher than the North West region average of £96,048. Evidence suggests that the close proximity of Fish Island to the proposed Olympic area will have a positive impact on housing prices in the area, thus making it an attractive proposition for investors. March 2006, East Londoner Newspaper – Jonathan Nash of Your Move said “When areas have got new transport links we have seen rises of up to 45 per cent in house prices within six months”

22 Map of London’s East End

Legacy

The real strength of the London 2012 Olympic Games and Paralympic Games is that once they have come and gone, much of its benefits for the local area will live on. The Council has estimated the long-term net benefit from hosting the Games in East London to be in excess of £8.6 billion - calculated from the economic gain from better sport and community facilities, jobs, new housing, improved infrastructure and physical connections through the area.

419 Wick Lane

Computer image of what the Lower Lea catchment area will look like by 2012

Jobs, skills and business opportunities The Games will create tens of thousands of jobs and employment opportunities before, during and after in varying capacities from landscapers, cleaners and transport workers to engineers, accountants and architects. They also present a massive opportunity for companies of every size in London and across the whole of the UK and varying industries including professional services, tourism, hospitality, media, leisure, transport, retail, food and the creative and cultural sectors.

Better transport The London 2012 Olympic and Paralympic Games will speed up improvements to the borough's transport connections. Stratford is already a major transport hub with the Channel Tunnel Rail Link (CTRL) station in Stratford scheduled for completion in 2007. It will prove a critical transport artery for visitors to the Games. 23

The Games will also be served by ten separate railway lines with a combined capacity of 240,000 passengers per hour. This will include the 'Olympic Javelin' shuttle service along the CTRL which will deliver 25,000 visitors per hour to Stratford, just 7 minutes after leaving St Pancras. Jubilee Line services in the area are set to be enhanced by 45% within the next 5 years, as well as this the go-ahead has now been given for the East London line extension The Docklands Light Railway (DLR) is set to play an enhanced role too. Much of the London 2012 Games' transport improvements will be dovetailed with the existing regeneration framework, including the Stratford City development. This is already on track for completion in 2007 on the rail lands above the station - comprising 4,500 new homes, nearly half a million square metres of commercial floor space, hotels, schools and a shopping centre to rival any in the country. The Channel Tunnel Rail Link, also opening in 2007, will soon be offering a direct rail link to Paris and the continent via the Channel Tunnel.

Better sporting facilities Every venue has been developed for the London 2012 Games with a long-term business plan and a firm commitment from partners to make it work. Specifically, in Newham, the Games will leave a legacy of: •

A 25,000 seater multi-purpose sports stadium;

•

A state-of-the-art Olympic aquatic centre with 50m pool and support facilities at Carpenters Road (five minute walk from the site)

•

A world class hockey centre which will be used by the community after the Games.

Other permanent sports facilities such as the velodrome, BMX Centre and indoor sports arena will be right on our doorstep and open to the community creating a critical mass of worldclass sporting venues in the Lower Lea Valley.

Better infrastructure The Games will help to improve the lives of local residents bringing about important improvements to the boroughs' infrastructure including: •

new schools, family health services and other community facilities will also be built

•

a major new park - potentially one of the largest in Europe - running from the north of the Lea Valley right down to the Thames;

•

dramatically improved access to green space for pedestrians and cyclists with numerous direct access points to the new park;

•

better physical connections between communities, through new land and canal bridges;

•

a lasting creative legacy - the 150,000 sq metre media and broadcast centre would make the borough a new focus for the capital's creative sector industries;

•

new business and workspace units with convenient access to the M11 link road;

•

new waterside workspace developments north of Pudding Mill Lane; 24

•

vastly improved connections for people crossing the borough east to west; and

•

Post-Games workspace potential on the West Ham temporary parking site.

Cultural boost As the most culturally diverse community in Britain, ‘The Games' theme of diversity will be used in the Borough to promote social cohesion via a sustained cultural programme of festivals and celebrations. And there is a lasting legacy - the 150,000 square metre media and broadcast centre to be built for the Games will make the borough a new focus for the capital's creative sector industries.

Improved health Beyond the physical legacy, there is also the opportunity to motivate and engage people in sport and physical activity - in an area with a poor health record - and to radically improve the image and perceptions of the borough. As the most culturally diverse community in Britain, the borough supports the London 2012 theme of diversity and will use this to promote social cohesion via a sustained cultural programme of festivals and celebrations. Already, during the bid process, Newham has noticed an increase in sports participation (64,000 people participated in sports taster sessions during the Summer of Olympic Sport last year) while crime rates have reduced significantly.

25

Non-Olympic Regeneration/ East London regeneration As mentioned, even before the successful bid, plans were at an advanced stage for large-scale regeneration of the Fish Island area and Lower-lea valley. Following is a report on future plans for the area and the East end in general. Analysts agree that there has been a shift in recent years towards investment in the East of London. Fundamental to the plans is the significant attention paid to the Thames Gateway initiative (mentioned previously). Already, the financial heart of the city has started to migrate eastwards towards Canary Wharf, bringing with it a significant demand for housing and leisure facilities throughout the East. In fact the government has explicitly stated that their priority is to shift prosperity from west to east. Ken Livingstone has identified East London as “a major engine for growth, not just in London, or the UK but in Europe as a whole.” The vision is to establish the area as a major focus of inward investment and companies competing across a global market in a wide range of sectors. The area will offer a high quality environment and sustainable, vibrant and inclusive communities. The foundation for this regeneration will be on investment in infrastructure (already identified and planned for by the government). By 2010 the area will be significantly transformed (e.g. Thames Gateway Bridge), together with significant investment in the public transport network to truly augment this drive eastwards.

FISH ISLAND

Planned Thames Gateway Regeneration zones PROPOSED THAMES GATEWAY REGENERATION AREA

Fish Island and its close vicinity At a local level, Fish Island is set to benefit from the multitude of regeneration plans proposed by the neighbouring councils in the area, the lower lea valley regeneration scheme and the Stratford City Development.

26

New community bridges This will help bring together the existing communities of Tower Hamlets and Newham. It will become a Bridge of Regeneration, creating new community neighbourhoods within the site. The red areas represent the nucleus of the plans. A new ‘bridging’ center will be created to connect east and west neighborhoods. This will be achieved by: - The building of new roads, bridges & paths - The creation of new community centers - Regeneration of immediate area for attracting inward investment i.e. grocery store & health center, etc.

Fish Island

Two new north to south routes running through the site will link the new communities created within the site to one another, along which a range of amenities will be arranged. Waterway development The second regeneration effort involves a focus on the waterways, with the creation of two overlapping areas of mixed use residential and employment development along canals The strategy aims to create a ‘water city’ for a new canal to run through the eastern part of the site, from the Waterworks River at the A11, to Bow Creek just north of the A13. The red arrows depict the central path of the bridges and show the planned traffic patterns throughout the valley. This will be achieved by: -

The building of 100 new bridges over rivers, canals, and major roads. New developments on the rivers. These will ensure that waterside passageways become accessible to the general public, adding continuity to the routes up and down the valley.

Fish Island

This ‘water city’ will, of course, be a huge factor in enticing new homeowners to the area both in the immediate and the long-term future. The construction of over 100 bridges is central to the plan; serving to connect many otherwise disjointed communities and facilities.

27

The net result being that Fish Island becomes a nucleated area within the boundaries of an exciting and desirable recreational space. This neighbourhood will then take on a new strategic importance, creating new business and leisure opportunities for residents and visitors alike. Lower Lea Valley Park The third regeneration project of note is the planned redevelopment of the lower lea valley park (see above). The Lea Valley Park is a fantastic resource for Londoners, stretching north to south along the Lea from Hertfordshire into central London, and almost, but not quite, reaching the Thames. The plan is to extend the Lee Valley regional park all the way to the Thames, linking up forgotten and neglected areas of open space along the course of the Lower Lea.

Waterside walk in Lea Valley Park

With an objective of extending the Lea Valley Park along the waterways of the Lower Lea to reach the Thames at the Lea Mouth, It would double the amount of green space currently in the Lower Lea Valley. This would provide routes for walkers and cyclists to reach the Thames as well as a series of greens and commons, including new community facilities and civic amenities. 28

Stratford City Development Stratford city is a new 180-acre site on the former Stratford Rail Lands around Stratford International Station - part of the Channel Tunnel Rail Link project. The development was granted planning permission by the council in September 2004 and was approved by the Mayor of London and the Government Office for London in October 2004. Construction is due to start in late 2006, with the first phase of the development due for completion in late 2009. The entire development is scheduled to be complete by 2020. .

Stratford City will transform the area drastically, providing 13.5 million square ft of mixed-use development including: •

5 million square feet of commercial development including landmark buildings

•

1.5 million square feet of new shopping, leisure and social facilities. The retail element will comprise 100+ retail units with several high profile anchor department stores.

•

4,500 new homes. 30% of homes will be affordable (shared ownership, key worker and social rented)

•

2,000 new hotel rooms

•

A new 900 pupil secondary school, and a primary school for up to four forms of entry

•

A primary health care centre and an NHS walk-in centre

•

An estimated 29,000-34,000 new, full time jobs (up to 25,000 in financial and business services, 6,000 in retail and 3,000 in leisure, entertainment and hospitality) will be created.

29

Canary Wharf Just 10 minutes from Pudding Mill Lane DLR, lies Canary Wharf. It is emerging as one of the most important financial centres in the world and has been a major factor in the regeneration of London’s East End. With this shift away from The City towards the East, there has been huge demand for housing all over the area. Workers in Canary wharf generally earn attractive salaries and are actively searching for suitable areas in which to live and invest. Fish Island is very close by and offers a stress-free commute (10 mins on the DLR), making it a favourable location for many interested Canary Wharf-based workers.

Canary Wharf is planned on a grand scale, yet with meticulous attention to detail. The estate extends to over 86 acres and dominates the Eastern skyline for miles around. Within the area: •

6 million sq ft already constructed with 8.1 million sq ft under construction

•

At present, 95 % of space occupied

•

63,000 people currently employed

•

It has world class office blocks, retail centre, conference and banqueting centres, shopping centres, cinemas, bars and restaurants

•

Extensive bus, ferry and underground service, with a highly modern station.

Construction in Canary Wharf is still ongoing with many new developments planned or in progress. Thousands more jobs are expected in the area, giving rise to increased demands for property in the locale. Many high profile companies have chosen to relocate operations to Canary wharf or to expand their existing base in the area.

•

Reuters: Is relocating their Head quarters to Canary Wharf. They are to pre let 283,000 square foot at 30, South Colonnade

•

BP: Setting up its trading department here with a lease of approximately 215,000 square foot at 20 Canada Square

30

The future of Canary Wharf:

It is estimated that a further 65,000 jobs will be created by the time construction has finished in Canary Wharf. This new workforce will certainly stimulate the economy throughout the area ensuring that quality properties will be sought after in locations close to Canary Wharf. Examples of future developments in Canary Wharf include:

•

15 Canada square, Skidmore, Owings and Merrill- 537,000 square foot

•

2 further buildings adjacent to each other, 10 and 20 Churchill place accommodating up to 750,000 square foot in a complex of two or three 10-12 storey buildings.

•

On the former Barclays Bank site, Columbus tower, an 80-story, 786-foot skyscraper with 1million square foot of mixed-use office and hotel space. To be completed by end of 2007.

31

Developments in the immediate area

FISH ISLAND

12 1516

13

1 2

1

3

11

5

4 6

10 14

7

8

11 9 15

32

1 – Proposed residential or live/work development ( Supreme House)

9 – Proposed residential development 10 – Fabrika, completed 2005 (33 residential units)

2 – Proposed residential or live/work development (Stour Wharf)

11 – Heart of Bow (212 residential units)

3 – Proposed Development (Swan Wharf 30 units) 4 – Ironworks, Completed 2005 (71 units) 5 – Proposed 1.5 acre mixed use development 6 - 417 Riverside, Completed 2005 (72 live/work units and 10,000sq ft office space)

12 - The Omegaworks, Completed 2003 and phase 2 completed 2006 (110 units) 13 - – 6 acre residential site (acquired by Neptune group, awaiting planning) 14 - Connaught Works, completed 2005 (87 units)

7 – Proposed live work development ( 419 Wick Lane, 109 units)

15 – Proposed development (Cooks Road, 700 unit residential & 450,000 sq ft commercial)

8 – Proposed residential development (Ice Wharf, 140 units)

16 – Proposed live/work development (Crown Wharf, 84 units)

The Developer London Green Developments Ltd is a vertically integrated property developer. Since its incorporation in 1998, the company has followed a simple philosophy of investing only when value can be added at each stage of the development process from site evaluation through design, planning, in house construction and marketing. London Green’s belief is that successful sales must originate from well chosen site acquisitions enabling the final product to be sold at a price that is both competitive in the market place and offers good value to end users. London Green values and promotes good, innovative styling where attention to detail throughout the design, planning and construction phases are also essential. In recent years London Green has principally been involved in converting listed Victorian school buildings into attractive loft apartments and constructing new build live work units offering large spacious living at very affordable prices. Currently London Green Developments is involved in sites with units sales totalling £345m.

Examples of previous Developments

Ironworks, E3

33

With 71 units spread over 8 floors, the building is situated on ‘Fish Island’, drawing inspiration from the site’s industrial heritage. It features steel cladding to create a signature landmark. Many units also feature a private balcony with direct views of the water or Greenway, and all have access to a secure courtyard for private parking.

34

Camden Studios, NW1

This development was completed in 2005. The top two floors (6th/7th) boast 1800 square foot two beds with breathtaking views of London. All apartments have been finished to a very high specification and the units proved to be very popular with investors and owner/occupiers, selling very quickly.

Noko, W10

Recently completed, built with a unique quadrangle design over four floors. All 77 units overlook a beautifully landscaped central courtyard. It has secure underground car parking; attractive wooden exterior decking and exceptional open plan units all finished to a consistently high specification.

35

Appendix A - Published in June 2005 by the Land Registry. It shows house prices in all the London Boroughs, including Tower Hamlets (the borough for Fish Island), Hackney (the borough of close-by Hackney Wick) and Newham (the borough for Stratford). Flat/Maisonette

Overall

Region/Area Av Price £ Sales Av Price £ Sales BARKING AND DAGENHAM 134445 129 165620 511 BARNET 208274 426 315630 917 BEXLEY 130519 157 191177 669 BRENT 191408 349 252429 635 BROMLEY 189780 389 253736 1025 CAMDEN 316559 510 443135 626 CITY CITY OF WESTMINSTE R CROYDON EALING ENFIELD GREENWICH HACKNEY HAMMERSMI TH AND FULHAM HARINGEY HARROW HAVERING HILLINGDON HOUNSLOW ISLINGTON KENSINGTON AND CHELSEA KINGSTON UPON THAMES LAMBETH LEWISHAM MERTON NEWHAM REDBRIDGE RICHMOND UPON THAMES SOUTHWARK

315479

49

315479

49

467228 158384 190219 162711 194554 199479

715 403 326 350 349 287

576237 222321 272648 231655 216465 243979

854 1086 818 888 788 428

281808 197223 199223 148837 163416 198827 266388

357 348 213 145 215 269 348

388468 274082 273882 224814 233940 245111 330001

548 646 566 702 735 624 448

526237

562

742191

714

203813 209700 158070 195454 179904 174941

233 617 442 261 253 317

276007 248021 193054 307257 196295 235767

536 863 789 647 667 832

249150 234038

281 537

385968 265512

710 749

SUTTON TOWER HAMLETS WALTHAM FOREST Wandsworth

162177

260

214921

632

258538

695

265561

801

149621 270557

269 769

197823 344850

685 1149 36

Appendix B Wick Lane , E3 Comparables

Area Development

Completio No. n Dates Units

E3 E3 E3 E3 E3 E3 E3 E3 E3 E3 E3 E3 E3 E3 E3 E3 E3 E3 E3 E3 E3

01/10/2006 01/09/2005 01/12/2005 01/10/2005 01/08/2005 30/09/2004 20/09/2004 01/06/2004 01/04/2004 01/02/2004 01/12/2003 30/11/2003 01/11/2003 01/11/2003 30/07/2003 30/05/2003 01/11/2002 15/05/2002 01/10/2007 01/09/2005 01/08/2005

Heart Of Bow 417 Riverside Dublix Apartments Bow Central The Ironworks (Former Crown Wharf) Urban Island (Old Film Studios) East Point Apartments Devons Road Apartments Omega 3 (Former Roach Works) Tudor Lodge Bow Connection The Connection (718-720 Wick Lane) Havegood Apartments Land South Of Sedgewick House 48-62 Grone Road The Grove Former Greyhound Public House 52 Tredegar Square Eastside Connaught Works Fabrika

212 75 50 160 77 47 44 24 57 10 72 24 14 11 9 9 7 10 132 70 33

Min Price

Max Price

Ave Price

Min Size Sq ft

Max Size Sq ft

Ave Size Sq ft

226,950 229,500 186,000 185,000 210,000 224,950 180,000 185,000 200,000 155,000 164,950 170,000 205,000 175,000 189,995 185,000 189,950 175,000 195,000 225,995 239,950

232,950 319,995 290,000 290,000 395,000 499,950 240,000 232,500 495,000 185,000 325,000 295,000 300,000 276,000 329,995 295,000 239,950 335,000 335,000 385,995 259,950

229,950 274,748 238,000 237,500 302,500 362,450 210,000 208,750 347,500 170,000 244,975 232,500 252,500 225,500 259,995 240,000 214,950 255,000 265,000 305,995 248,840

607 941 510 460 672 584 500 549 796 482 447 624 753 540 437 522 400 388 603 607 591

706 1298 833 824 1549 1549 801 818 1711 652 1873 1044 921 784 998 916 800 818 751 1302 721

670 1044 866 596 1006 935 645 662 1014 584 676 814 773 624 720 820 533 616 677 954 620

Min Max Asking Asking Price Price £sq ft £sq ft 313 244 269 226 217 288 281 288 131 238 208 238 288 281 303 322 300 298 323 296 374

352 307 356 428 292 356 370 332 354 333 417 257 337 343 435 439 425 555 446 395 405

Ave Asking Price £sq ft 348 275 306 354 280 317 319 299 244 300 325 279 293 317 372 369 383 387 385 345 390