Canary Wharf clashes with council over plans to ditch offices

Red tape threatens to upend plans to convert blocks to flats and retail space

A row is brewing between Canary Wharf and the local council as the property group battles to turn empty office space into residential flats. 
The Canary Wharf Group has clashed with policymakers in Tower Hamlets over red tape that could prevent it from converting buildings after a string of companies exiting the district.
Plans are afoot to convert entire blocks into a mix of residential, retail and hotel space, as the landlords strive to future-proof the area while workers shun the office.
However, tensions have arisen after calls from Tower Hamlets Council to keep Canary Wharf office-led.
Paul Swinney, director of policy and research at Centre of Cities said: “There is tension between the council and Canary Wharf landlords. 
“The council is looking to take a long-term view on its plan for the area and they don’t want to be too reactive and change things too quickly.
“Tower Hamlets and City Hall will have to look at how large London’s economy is and give it the space it needs to grow. We wouldn’t want businesses to look for commercial space elsewhere.”
Talk of a rift with the local council comes as the district reels from one of its buildings being sold at a 60pc discount, making it one of the largest distressed sales in recent years. 
The property in question was 5 Churchill Place, which was bought for £270m by Chinese investor Cheung Kei Group in 2017 but recently sold to Israeli real estate firm Ariomori for just £110m.
It comes after the district was dealt a blow by HSBC’s decision to leave the Docklands for the City last year. 
In the latest version of Tower Hamlets local plan – a document that addresses the needs of different parts of the borough – the council called Canary Wharf “London’s second financial district”.
It said that 40pc of the council’s employment came from that area and that it should remain a “commercial and employment-led development”.
The changes brought forward by Canary Wharf Group, which owns most of the buildings in the district, include new shops, cafes and restaurants. 
A spokesman for the Tower Hamlets council said: “Canary Wharf is one of the council’s preferred office locations in the borough. We are currently reviewing how this designation operates in light of the market changes and we address this in the new draft local plan.
“We will continue to work closely with Canary Wharf Group to understand their challenges and develop a set of policies which meet our planning ambitions and guide the future development of the area.”
A Canary Wharf Group spokesman said: “We have a productive working relationship with the London Borough of Tower Hamlets.”