Sainsbury's shelves new King's Cross Central site move
Supermarket pulls out of plan to switch offices to King’s Cross in new blow for development
Published: 17th February, 2011
by DAN CARRIER
FLAGSHIP new offices for Sainsbury’s supermarket at a King’s Cross development are to be scrapped.
The supermarket giant was one of the first companies to express an interest in moving on to the 67-acre King’s Cross Central site and had earmarked a nine-storey office block in the heart of the area. But it has since emerged that due to problems selling their offices in Holborn Circus – once the home to the Daily Mirror newspaper – Sainsbury’s have told the developers to market the building to other firms.
Developer Argent’s joint chief executive David Partridge said that despite Sainsbury’s failure to complete the deal there were many other companies ready to step in.
“We are obviously disappointed that Sainsbury’s have not been able to commit to King’s Cross Central, until they have been able to exit from their existing liabilities at Holborn,” he added. “However, things have moved on considerably, with growing interest from potential occupiers from across the spectrum, as King’s Cross Central is clearly now being acknowledged as London’s most significant new commercial and residential districts.”
The development has suffered a number of withdrawals from tenants considering taking on the new buildings. Charities, pressure groups and think-tanks linked to Prince Charles have considered moving, but, after making initial enquiries, have withdrawn. The Aga Khan Foundation had also reportedly been interested but no lease has been signed.
A spokesman for Sainsbury’s said they still wanted to move – but probably not to King’s Cross.
“It is still our intention to move from our Store Support Centre but this depends on finding suitable tenants for our offices,” the spokesman added. “In the meantime we have agreed with the developers at King’s Cross that they can market the unit to other potential occupiers.”
King’s Cross Conservation Advisory Committee chairman Ernest James has been a long-term critic of the scheme’s mix of offices and homes. He said the latest news underlined his belief that the developers should be looking to use the land to build more homes instead of businesses. Mr James added: “The scheme appears to be in trouble and has been in trouble since it started. It has always been misconceived. We have said time and again that they need more housing. Argent appear to be an old-fashioned developer and they have gone for something that no one really wanted.
“The city is full of sites with planning permission not being acted on. King’s Cross is fighting in a very overcrowded market.
“The answer is simple: switch the focus to build more housing.”
Meanwhile, Argent have asked for planning permission to build a new residential block that will provide social housing on the site.