SITUATION
Instead, it opted to sell and partially lease-back a site with development rights immediately next to the Tower of London. Marsh McLennan, who had been Tishman Speyer's tenant for nearly 30 years in Chicago, executed a sale and leaseback transaction with Tishman Speyer, whereby Marsh McLennan would occupy one of two planned buildings. For flexibility, they stipulated the inclusion of an option to lease the other building. Tishman Speyer was able to act quickly and to meet Marsh McLennan’s tight deadline for occupancy by acquiring the site and commencing construction within one month.

DEVELOPMENT
Located within a conservation area adjacent to the Tower of London, the site was subject to numerous planning restrictions, and it was not until 1998 that Marsh McLennan received consent to commence development of Tower Place. The Tower of London is one of the U.K.’s most visited tourist attractions and a World Heritage site. The new development, designed by celebrated architect Norman Foster, restores historical views to the Tower of London which had previously been obstructed.

The new property consists of two self-contained seven-story buildings, totalling 387,000 square feet, which are linked by a semi-enclosed plaza space. The plaza provides Tower Place one of the largest glazed atriums in Europe. The property also includes 26,000 square feet of retail units, as well as a public underground parking garage.

From the start, Tishman Speyer acted as project leader and manager for the development, design and construction related aspects of this project. Tishman Speyer discharged all preconditions to development, i.e. rights to light, agreements with neighbors, planning conditions, freeholder agreements, archaeological surveys. Tishman Speyer acted as design manager, ensuring Foster & Partners, Arup, specialists and tenant designers interfaced correctly and produced accurate design information to schedule. Time constraints demanded a phased release of design “packages” to minimize start up time.

A floor by floor handover was agreed with Marsh McLennan which started in May 2002 and completed in February 2003. Every floor was handed to Marsh McLennan on schedule. Floors were handed to Marsh McLennan individually to allow commencement of the tenant fit out. Agreed PC dates for the completion of common areas/plant for each building were achieved to allow Marsh McLennan to move staff in on agreed dates. All dates were met. Tishman Speyer appointed the Property Manager 6 months before the first occupation. Tishman Speyer influenced the commissioning and handover process early to ensure the handover from construction to property management was efficiently managed.

VALUE CREATED
Tower Place, formally an undervalued location due to planning and zoning limitations, is now a first class office building which serves as Marsh McLennan’s European headquarters since construction was completed. Marsh McLennan opted to lease the second building as well, and now fully occupies the entire complex. Tower Place was officially opened by Princess Anne in May of 2003 and is now recognized as a new London landmark. Tishman Speyer was recognized with the Concrete Society Awards for Precast Use.