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Bovis ready to sign stock exchange deal

CONTRACTS - CITY OF L ONDON

BOVIS Lend Lease looks to have landed a £130 million deal to revamp the former site of the London Stock Exchange.

The firm is in pole position to take the deal in the heart of the City of London having pipped remaining rival Sir Robert McAlpine to the work.

A source close to the project said: 'Nothing has been signed but it came out this week that Sir Robert McAlpine has been unsuccessful ? although I don't think Bovis is counting its chickens until it's all formally wrapped up.' Bovis Lend Lease is negotiating with developer Hammerson, which has previously said it wanted to be in a position to get work started on the project by the end of the year.

The development comprises two separate buildings, the first of which will be a 26-storey tower on Old Broad Street, designed by architects GMW Partnership.

It will combine 31,000 sqm of office space with 1,000 sq m of retail and is being built speculatively.

Hammerson said if work does not start by the end of the year then it hopes to get going early in 2006.

The second building, which will not be started until a tenant is found, is on Threadneedle Street.

Designed by Eric Parry Architects, it will be nine storeys high and contain 20,000 sqm of office space and 2,000 sqm of retail.

An end-value for the scheme is not known but Hammerson is spending roughly £270 million on the development, which includes around £70 million to buy the site plus the £130 million construction contract.

The developer bought the site in 2004 from the London Stock Exchange, which moved to its brand new headquarters in the shadow of St Paul's Cathedral at Paternoster Square ? also built by Bovis Lend Lease ? after 230 years of business on Old Broad Street.

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