M&S Baker Street plans hit snag

STORES group Marks & Spencer's grand designs for its Baker Street headquarters are likely to fall short of expectations after Westminster Council ruled the proposed revamp would make the building too high.

According to Estates Gazette the retailer is responding by revising its plans for Michael House - which envisaged 500,000 square feet of offices and more than 100,000 square feet of residential, leisure and retail space - and architect KPF is expected to shave off a floor.

The move increases doubts over the site's future, and could lead to M&S renting out the building on short leases until the redrawn development plans are completed and work is close to getting under way. The refurbishment is scheduled to go ahead in 2007.

Staff from Michael House are set to move to M&S's new Paddington Basin headquarters in phases throughout 2004 and into early 2005. Once planning for the revised Baker Street scheme has been secured, M&S will consider its options, according to property director Chris Williams.

Accounting firm BDO Stoy Hayward is said to be in talks to take space in the existing building, and a Government related occupier is also interested.

Marks & Spencer's property director Chris Williams said: 'Of course letting the existing building on short leases for now, or refurbishing and then letting it, are options as the market has not fully recovered yet.'

Jones Lang LaSalle advises M&S on Baker Street.