Developer to put 100,000 m2 mixed-use City scheme in for planning, despite jitters in the speculative market

Developer Hammerson is to continue its 拢180m Northgate scheme around Bishopsgate Goods Yard in the City of London, despite signs of a market slowdown.

The developer will submit a planning application to Hackney council in the next few months for a 100,000 m2 scheme that could rise to 25 storeys.

The news comes amid reports last week that developer Minerva could shelve plans for its 50-storey skyscraper at nearby Aldgate in east London. The Minerva Tower, designed by Grimshaw, could be built as a 50,000 m2 low-rise scheme, rather than the current 100,000 m虏 design.

Vacancy levels for offices in the City are still thought to be in the region of 10%, making developers nervous about bringing speculative schemes to the market. The Minerva Tower would face competition from other large office developments being planned by Heron, Difa and British Land.

At Northgate, Hammerson will link two sites on which it already has planning consent - Norton Folgate, which has planning permission for a 100 m tall tower designed by Kohn Pedersen Fox, and another plot of land close to the railway line. If developed it would be one of the first large developments in the City fringe north of Liverpool Street Station.

The scheme will include offices, shops, flats and a hotel, and because of its range of uses could come to the market sooner than a dedicated office scheme.

Foster and Partners took over the scheme in April 2005 and since then it has been reworked a number of times. English Heritage is thought to have objected to the height of the scheme.

Vacancy levels for offices in the City are thought to be in the region of 10%

One source close to Hammerson said the start of the scheme would depend on the state of the market.

The source said: "We have the two consents and we're combining Norton Folgate with the site over the railway line. The scheme is roughly the same size as Bishops Square nearby."

The Foster team is led by partner Grant Brooker and is working with consultant Davis Langdon and WSP and Hoare Lea.

Hammerson is hoping to get consent by this autumn, but it is difficult to be specific about a date to start construction because major schemes in the City are dependent on the market.

Minerva refused to comment on whether it would reduce the scope of the Minerva Tower development.