Landsec pauses £1.5bn Lewisham redevelopment project

Property developer Landsec has announced it is “de-prioritising” its £1.5bn mixed-use redevelopment of the Lewisham Shopping Centre in South London. The project, which was approved by the local council last October under a Labour administration, would have transformed the 17-acre site into a complex featuring up to 1,744 conventional homes, 630 student beds, 445 co-living units, and a new shopping centre.

The decision follows a shift in local governance to a Green Party majority led by Mayor Liam Shrivastava. Landsec cited “exceptionally challenging economic conditions,” including high interest rates and increased construction costs, as primary factors. However, the developer also pointed to a lack of support from the council regarding land assembly.

Landsec stated that the council would not support the acquisition of neighboring Lewisham House, the former Citibank Tower, without a “significant increase in affordable housing.” The developer noted that such a requirement would necessitate material changes to the masterplan and cause substantial delays, leading them to focus on other residential projects instead.