M&S: Go-ahead for HQ development

EMBATTLED Marks & Spencer has won planning permission to develop its historic Baker Street headquarters, in London, paving the way for an ambitious £125m redevelopment of the site.

The scheme, likely to be worth as much as £400m when completed, will be one of the biggest developments in the West End.

It includes seven floors of office space, health club and swimming pool and 32 new homes.

Designed by architects Kohn Pedersen Fox, it will also include cafes and shops, including an M&S 'Simply Food' store.

Chris Williams, M&S director of property, said the group will now be progressing discussions with potential development partners and, subject to detailed negotiations, he expects demolition and construction could begin as early as 2007.

He added: 'We believe that this redevelopment is the best possible outcome for the long-term future of Michael House, and the regeneration of Baker Street, as well as delivering maximum value for our shareholders.'

M&S has had its headquarters at Baker Street since 1957 and is in the process of moving to new offices in Paddington.

News of the planning permission consent gives a boost to the group and its new team, headed by former-Arcadia boss Stuart Rose, as it awaits the bid move from Bhs billionaire Philip Green.