Plans to develop a new designer outlet at the O2 Arena in London have suffered a setback after Land Securities could not agree a deal with the scheme’s owner AEG to progress the plans, Drapers can reveal.
Land Securities entered into a six month exclusivity agreement with AEG in January to work up plans to build a designer outlet village stretching to around 230,000 sq ft in vacant space at the leisure venue in Greenwich. There is said to be capacity for more than 110 shops alongside restaurants and bars.
When the exclusivity period concluded at the end of June, it was temporarily extended but the pair failed to reach an agreement.
AEG is understood to still be keen to progress the plans for the designer outlet on its own.
A spokeswoman for Land Securities told Drapers: “AEG and Land Securities have been unable to agree terms for the delivery of the Designer Outlet Village at The O2 and AEG have therefore opted to pursue this opportunity alone for the time being.”
AEG is expected to continue with the original plans for the designer outlet. It hopes to start on site in 2015 ahead of opening the new scheme in 2017.
Land Securities is thought to have been looking to attract premium fashion brands to the proposed O2 designer outlet village, and had instructed property agent CBRE to talk to retailers about whether they would consider taking stores at the new location.
The move to develop a designer outlet at the O2 comes after Quintain opened the London Designer Outlet in Wembley, north London, in October last year.