Oxford Street Store Set for $825M Redevelopment

LONDON-Westminster council has given the go-ahead for the £500 million ($825.8 million) redevelopment of the flagship Selfridges store in Oxford Street.

Oxford Street is one of the biggest tourist attractions in London and the 500,000-sf Selfridges store is one of the biggest landmarks on the street. Now Selfridges and Stanhope propose to extend the store by 100,000 sf and add offices and a hotel behind the shop.

The plans take the overall size of the redeveloped site to 1 million sf but still represent a significant scaling back of the original plans. Westminster objected to these on the grounds that the proposed 300,000 sf of offices was excessive. But not only have the developers had to reduce the size of the development they have also, in a reflection of a growing trend in commercial developments, agreed to contribute £3 million ($4.9 million) towards affordable housing in the borough of Westminster.

Stanhope, under the terms of the joint venture, will be granted a 175-year lease on completion of the redevelopment. Selfridges will occupy the retail space, offices, ancillary space and car park on a rent-free basis.