(Updates with Derwent London from fifth paragraph.)
June 28 (Bloomberg) -- Mayor of London Boris Johnson said he will decide whether the redevelopment of Saatchi & Saatchi’s London office building will proceed after the borough of Camden refused planning permission.
Johnson invoked his right to review plans to rejuvenate the New York-based advertising agency’s site in London following Camden Council’s decision to block the proposal, the mayor’s office said in an e-mailed statement today.
“Redeveloping this prime location will contribute to the competitiveness of London’s wider economy, bringing with it new jobs and business,” Johnson said.
The site is in an important commercial hub and would create 40,000 square meters (431,000 square feet) of office and commercial real estate in the city, the mayor said. The development would trigger a 1.6 million-pound ($2.6 million) contribution toward building London’s Crossrail train project.
Derwent London Plc owns the 1.4 acre (0.6 hectares) site at 80 Charlotte Street and plans to expand the building to 320,000 square feet of offices and 16,000 square feet of residences from 200,000 square feet of offices, according to the London-based company’s annual report.
Derwent “are pleased that the Greater London Authority has recognized the important of the Charlotte Street to the district and the wider London economy,” said external spokeswoman Elizabeth Adams by e-mail today.
The project was scheduled to be completed in 2015 and has annual rental income of 4.3 million pounds ($6.9 million) from Saatchi & Saatchi.
Saatchi & Saatchi was founded in London in 1970 and is now part of Paris-based Publicis Groupe SA, the world’s third- largest communications group, according to Saatchi’s website.
--Editors: Jeff St.Onge, Andrew Blackman
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