Student developer to write off £10m in planning costs following three year-delay on 600-bed scheme in Paddington
Student homes developer Unite has pulled the plug on Make Architects’ 20-storey student accommodation scheme in Paddington after deciding the project was financially unviable.
The decision means the developer will have to write off £10m in planning costs sunk into the project, which has faced three years of planning delays after being twice refused planning by Westminster council.
The 605-bedroom proposals for Unite Students and Travis Perkins were thrown out by councillors last January due to its height, scale and impact on daylight on nearby residents.
This followed a previous refusal for a larger 768-home version of the job in 2022, which had itself been scaled back from the original 22-storey plan containing 843 homes.
The canalside scheme was eventually given the green light by London’s deputy mayor Jules Pipe last month following Sadiq Khan’s move to call in the scheme in March last year.
But in a trading update this morning, Unite said the scheme was no longer “financially viable based on our target return requirements and an extended delivery programme. We expect to recognise a c.£10 million exceptional write-off of planning costs in FY2025.”
It said securing planning had “fulfilled our contractual commitment to the landowner”.
The site is located behind Paddington station and next to Fletcher Priest’s Brunel Building which was built by Laing O’Rourke.
The project team includes Gerald Eve on planning, Arup on transport, GIA on daylight, Tavernor Consultancy on heritage, Waterman on MEP, Meinhardt as structural and facade engineer, BDP as landscape architect and AtkinsRealis as principal designer.
Unite also said it was mothballing a 500-bed scheme in Bristol called Freestone Island and designed by Alec French Architects “while we explore options to secure best value from the project”. It said the move would free up £55m of capital costs which had been earmarked for the project.
Unite also said that it expects to complete the takeover of rival student homes provider Empiric, first announced last August, shortly after 28 January.
Unite is set to release its full-year results on 24 February.
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