Battersea Power Station development sells final 40,000 sq. ft to IWG

Parent company of Regus, IWG, is to take the final 40,000 square feet of office space at the Battersea Power Station development.

Following the success of chains such as Soho House, IWG have dabbled into private clubs, as they look for new ways to battle the rapid expansion of US flexi-office company WeWork.

IWG buy No.18

IWG bought Swedish company No.18 last year, and describe themselves as a “cosmopolitan members club for businesses” offering lounges, meeting rooms and high end workspaces, for both work and leisure. No.18 have two venues in Stockholm, and since the purchase last year, plans for a US site are in motion.

Set over two floors, the 40,000 square foot workspace set over two floors, will look down into the two turbine halls, set to accommodate around 100 shops and restaurants.

Battersea Power Station Development

The development has around one million square foot of space for offices, restaurants and shops when it is completed. The site was bought back in 2012 for £400 million, by a society of Malaysian investors (Permodalan Nasional Berhad) after haven been neglected for around 30 years. During its operative years, the power station generated 20% of London’s electricity supply, until it stopped producing power in 1983.

Designed by Wilkinson Eyre, The Grade II listed Power Station building will see offices set across six floors, within the Boiler House. The designs’ aim was to attract creative tenants, interested in new ways of working in open plan spaces and an industrial aesthetic.

This is the second phase of the Battersea Power Station Development regeneration project, after the first phase, Circus West Village, opened and has seen thousands of residents move in. A further 750,000 square feet of office will be available following future phases of the development.

Following the successful letting to IWG, half of the commercial space in Battersea Power Station development is now let, after tech giant Apple secured 500,000 square feet in 2016.

Earlier in the year, backers of the development announced a major cash injection to ensure it’s finished, despite its rising costs. A strong presence of tech and media enterprises will be brought to the Battersea Power Station development, when completed in 2020.

Welcoming No.18

Head of Leasing at Battersea Power Station Development Company (BPSDC) Andrew Hilston told CoStar:  “We’re very excited to welcome No. 18 to the remaining space in the Power Station as their first UK venue and believe this bespoke concept will offer an extraordinary place to work and do business. With Apple’s new London campus and now No. 18’s innovative, design-led offering moving here, Battersea Power Station is set to become the centre of one of the London’s most exciting tech and media districts.”

IWG currently operate in around 3,000 locations, in over 100 countries. They are best known for their Regus brand, and flexible shared office space known as the Spaces division.

However, this venture comes after uncertainty of IWG’s future, as talks of a sale recently collapsing over price disputes arouse. CEO and founder of No.18, Michel Gordin told CoStar: “Battersea Power Station is a global icon. We believe it is the perfect fit for us – a place brimming with stories, where heritage meets novelty. We will be bringing The Engine Room, a concept that will complement the architecture of the Power Station building and provide a breath-taking environment.”

By | 2018-10-12T13:58:19+00:00 October 16th, 2018|London Business News|0 Comments

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