LONDON, Nov 15 (Reuters) - An Irish developer is revivingplans to build Europe's tallest residential tower in London'sCanary Wharf financial district, after it bought the stalledsite for 100 million pounds ($160 million).
The site, which sits on Canary Wharf's north-west corner,was sold by Commercial Estates Group, which had permission tobuild a 242 metre tall building containing offices, homes and ahotel called the Columbus Tower. It put the plans under reviewin 2011 citing the changing economic climate.
Ryan Corporation (UK) Limited said the 75-storey tower wouldbe renamed the Herstmere, and would contain more than 500,000square feet of luxury residential space or 714 homes.
It expects the site to be worth more than 850 million poundsupon its 2018 completion.
"We're at a moment in time when residential is somethingthat is very popular in London and we came across a projectwhich we thought was incredibly exciting and in an area where wethink has a lot of growth," Richard Berridge, chief operatingofficer for Ryan Corporation, told Reuters.
The privately-held, London-based company is headed by Irishproperty investor Thomas Ryan.
Berridge said the investment was the firm's first in centralLondon after numerous investments abroad, though he declined tocomment on their type or scale.
It will work with the local council to revise the scheme'scurrent permission to allow the entire tower to be made up ofhomes, and plans to sell the homes for an average of 1,600pounds per square foot, he said.
Property companies have launched a slew of luxuryresidential scheme across London in a bid to cash in on risinghouse prices and demand from foreign investors looking to parktheir money in the capital's property amid concerns that themarket is getting overheated.
The plans also come as the estate's owners, the Canary WharfGroup which is majority owned by Songbird Estates, lookto increase the amount of housing on the estate which has so farbeen dominated by skyscrapers occupied by banks such as MorganStanley and Barclays.
The Herstmere will tower over the Canary Wharf estate byseven metres when it is completed but will still be overshadowedby the Qatari-funded Shard skyscraper on the banks of the RiverThames, which is western Europe's tallest skyscraper at 310metres high.
Barclays (BARC)