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'Unready' tenants stall Heron Tower

Plans to build KPF's 222m-high Heron Tower in the City of London will be on hold for at least another two years, the AJ has learned.

A source at the Corporation of London told the AJ that the developer - also called Heron - had decided to put the scheme 'on hold' because there are 'tenants in existing buildings that are unready to leave'.

The current tenancy on the site will come to an end in 2006, he said, and only then will the tower's backers move to take advantage of their 2002 planning inquiry victory and start on site.

However, the move to delay comes amid speculation that Heron could be keen to postpone completion while it assesses whether the capital's commercial office market is likely to continue its recent upturn.

Heron may also be interested to watch whether Swiss Re rents any more space in the 'gherkin' at 30 St Mary Axe before it decides to build an equally 'iconic' building.

The Heron Tower won its planning inquiry, in which it gained support from CABE, in July 2002 (AJ 27.7.02).

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