Canary Wharf Group has revealed plans to remove large chunks of the HSBC tower as part of a redevelopment of the 42-storey office block when the bank moves in 2027, in a reflection of the changing face of east London’s financial district after the pandemic. .
The property company said it would cut out parts of the tower’s facade and create terraces as part of plans to convert the block – the district’s skyscraper – into a mixed-use building that would include leisure facilities and a public viewing gallery.
Developers outside the district are trying to reshape its image as a surge in telecommuting reduces demand for offices and has changed when the Docklands area is at its busiest.
Canary Wharf Group (CWG), which manages the building on behalf of the Qatar Investment Authority (QIA), said it would be the largest-ever conversion of an office tower into a mixed-use building. The redevelopment, designed by American architecture firm Kohn Pedersen Fox, is expected to be completed around 2030.
QIA acquired the property from South Korea’s National Pension Service in 2014 for £1.1bn.
Officially known as 8 Canada Square, the building was completed in 2002 and has been home to HSBC since then. But last year the bank announced plans to move before its current lease expires in early 2027.
CWG said the tower will continue to include some office space as well as recreational, entertainment and cultural attractions.
Designers will carve out new terraces by shrinking some floors, and the building will be divided into defined sections for easier leasing.
Elie Gamburg, Design Director at Kohn Pedersen Fox, said: “We are extremely pleased to be working with QIA and CWG to reimagine a one-off office building as a blueprint for a highly sustainable mixed-use building of the future.”
Shobi Khan, Executive Director of CWG, said: “This redevelopment is the next step in Canary Wharf’s evolution into a vibrant mixed-use precinct offering workplaces, shops, homes, leisure and amenities all in one place – a true 15-minute city.”
The FT said the redevelopment could cost between £400m and £800m, but the company said these figures had not been precisely budgeted as the design had not yet been completed.
The office property market has taken a hit since Covid-19 as more people work from home and many businesses try to reduce the amount of office space they own.
Figures from the second quarter of 2023 showed office occupancy at Canary Wharf fell to just below 85%, well below pre-2020 levels of consistently above 90%.
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HSBC said it will move from Canary Wharf to a smaller headquarters near St Paul’s Cathedral as part of a decision to reduce its office space by 40%.
However, non-professional visitors headed to Canary Wharf, with a record 67 million people heading there last year, a quarter more than the previous year.
Canary Wharf was the brainchild of the late Canadian real estate tycoon Paul Reichmann, who befriended then-Prime Minister Margaret Thatcher. The late former Prime Minister gave the development a generous tax break as part of the London Docklands overhaul project. Construction began in 1988 and its first skyscraper, the 244-metre pyramid-topped One Canada Square, was Britain’s tallest building for two decades until the opening of the Shard in London Bridge in 2012.
The district’s fortunes have largely mirrored the broader economy, battered by the recession of the early 1990s, the 2008 financial crisis and, more recently, the pandemic and its aftermath.
Much of Docklands’ transformation can be attributed to George Iacobescu, who escaped poverty in Romania and would eventually lead the Canary Wharf Group. He is ending his term as its chairman this month.
In response to the pandemic’s shift towards working from home, developers behind Canary Wharf have tried to shake off its sterile architectural image, adding shops, housing, restaurants and bars and revamping the spaces between its glass and steel towers.
Its supporters have also tried to bring new possibilities through public attractions, including outdoor public art trails and free family events such as outdoor film screenings and music and theater festivals.