Race for Derwent’s Baker Street scheme nears end as bids returned

Laing O’Rourke and Sir Robert McAlpine are expected to find out in the next few weeks who has won the race to build a mixed-use scheme for Derwent on London’s Baker Street.

Building understands the pair, who were shortlisted in March, returned bids at the end of last week for the job at 19-35 Baker Street, which is believed to be worth between £130m and £150m.

The developer, which is due to announce an update on third quarter trading later this week, had been hoping to begin work on the project in the second half of this year with the firm looking at a start date last month ahead of the job finishing in 2025.

But O’Rourke and McAlpine, which has never worked with Derwent before, were asked to carry out value engineering work slowing the process down.

The job involves knocking down a series of existing buildings on Baker Street, George Street and Blandford Street.

They will be replaced with a mixed-use scheme of around 297,000 sq ft which will include 52,000 sq ft of residential and 28,000 sq ft of retail. Erith won the demolition deal in the spring.

Designed by Hopkins Architects, Derwent is developing the scheme in joint venture with the Portman Estate and has a 55% share in the JV with an option to demerge it in the future.

Other firms working on the scheme include QS Gardiner & Theobald, project manager Buro Four and structural consultant AKTII.

Laing O’Rourke is coming to the end of another Derwent scheme, the £195m Soho Place job at Tottenham Court Road, while McAlpine’s 21 Moorfields project at Moorgate, which will be the new headquarters of Deutsche Bank, topped out in September and is due to finish next autumn.