THE COMMONWEALTH INSTITUTE, 20th April 2007

The following story, by Daniel Thomas, appeared in Property Week on Friday 20th April 2007. 

Kensington’s world-famous Commonwealth Institute is to be redeveloped into £150m of luxury apartments through a deal to be signed next week.

Property Week can also reveal that Elliott Bernerd and Sir Stuart Lipton’s Chelsfield Partners, working with architect Lord Foster, are integral to the ground-breaking plan to redevelop the Kensington High Street site.

They have teamed up with Addison Developments, a company controlled by the Kensington High Street site’s freeholder the IIlchester Estate, to develop the scheme in an area where apartments can sell for £2-3m a go.

The deal also provides an elegant solution for the Commonwealth Institute Charitable Trust, which has a 999-year lease on the site, and which has been searching for a new use for it since 2002.

The trust is next week expected to sell its leasehold interest to the Ilchester Estate and the funds raised will be ploughed back into primary and secondary education and teacher training throughout the Commonwealth.

Ilchester will, in turn, work in partnership with Chelsfield and Foster to redevelop the site through a world-class scheme.

Under an earlier plan the trust had attempted to clear the site by getting the Grade II* Commonwealth Institute property de-listed, but this was rejected by Culture Secretary Tessa Jowell.

The trust then decided to work with the Ilchester Estate on the plan revealed today, to ensure it realised maximum value. At the same time the Commonwealth Institute building will now be preserved.

The Commonwealth Institute said: `The Commonwealth Institute has been working for more than a year with Addison Developments Ltd, a company wholly owned by the owner of the freehold interest, the Ilchester Estate, and with Foster & Partners on plans for the development of its Kensington property.

`These plans incorporate its own leasehold interest with parts of the Ilchester Estate’s freehold. The scheme retains the Grade 2* listed Exhibition Hall.

`Under its arrangements with Addison Developments the Institute is able to exit when the work reaches the point at which the risk weighted value of its leasehold interest has been optimised.

`This will reflect the benefit of the work carried out, observations on the proposals for development of the site by English Heritage and the Royal Borough of Kensington and Chelsea and the views of professional advisors to the Trustees.’

The Ilchester Estate and Chelsfield Partners said: `The Ilchester Estate confirms that, through its company Addison Developments, it has negotiated to acquite the leasehold interest in 224-238 Kensington High Street from the Commonwealth Institute Trustees.

`The Estate, as freehold owners, has always taken the view that this site forms an integral part of its London holdings.

`The Estate has been working in conjunction with the Commonwealth Institute Trustees, and Advisers, to seek a long term viable strategy for the site, and in particular in respect of the Grade II* listed building.

`The Estate and its advisory team is now continuing this process, having recently entered into a partnership agreement with Chelsfield Partners LLP to take this important project forward.

`Foster & Partners will continue as architects with the primary consideration of restoring the `Pavilion Building’ and the garden.

While the 5,574 sq m Exhibition Galleries on the 3.25 acre site will be preserved, it is understood that two far less distinctive blocks adjoining it are likely to be replaced with landmark apartments for what is one of London’s best sites.

The Commonwealth Institute has been advised throughout by DE & J Levy.