Planning Statement Challenger House, 42 Adler Street

Prepared for Bridges Ventures Hotel Property Ltd

June 2012

Contents
1 2 3 4 5 6 7 Introduction Site Description Application Proposals Planning History Planning Policy Planning Assessment Conclusions 3 5 9 12 13 21 29

Appendices
Appendix 1 - Photographs Appendix 2 - Pre-Application Response Letter Appendix 3 - Letter issued to Residents/Adjoining Landowners

Introduction
This Planning Statement is submitted on behalf Bridges Ventures in support of their application for a hotel development at Challenger House, 42 Adler Street. The proposal seeks the change of use of the existing office building to a hotel (Use Class C1) with associated external alterations including the provision of rooftop plant, ground floor entrance canopy, and replacement windows and doors, with car and cycle parking and servicing to rear. The site is located in a central position in the heart of Whitechapel, on the eastern side of the City Fringe, a mixed use area which is undergoing change and regeneration.

1.1

Application Content
The planning application submission is comprised of the following material: Completed and signed 1APP application form including certificates. OS site plan with red at a scale of 1:1250 (ref. P_100 Rev D). Existing floor plans and elevation drawings (ref. P_101 Rev A, P_102 Rev A, P_103 Rev A, P_104 Rev A, P_105 Rev A, P_106 Rev A, P_107 Rev A, P_108 Rev A, P_109 Rev B, P_110 Rev B, and P_111 Rev A). Proposed site plan (ref. P_120 Rev D), floor plans and elevation drawings (ref. P_200 Rev A, P_201 Rev A, P_202 Rev A, P_203 Rev A, P_204 Rev A, P_205 Rev A, P_206 Rev A, P_207 Rev C, P_208 Rev C, and P_209 Rev A). Design and Access Statement. Planning Statement including draft Heads of Terms in Section 5. Transport Assessment. Energy and Sustainability Report. Environmental Noise Survey Report. Marketing and Employment Report. Servicing Management Plan. BREEAM Pre-Assessment Report. CIL Declaration form

In this Planning Supporting Statement, the site context is described in section 2; the proposals for the site are outlined in section 3; the planning policy context in section 4; the planning assessment in section 5; and the conclusions in section 6. Supporting material is provided in the appendices as listed.

1.2

Bridges Ventures
Bridges Ventures Hotel Property Ltd is financially backed by Bridges Ventures LLP. Bridges Ventures LLP (Bridges), which celebrates its 10th anniversary this year, is an innovative specialist fund manager dedicated exclusively to using an impact-driven investment approach to create superior returns for both investors and society at-large. Since launch, the firm has raised funds totalling almost 275m, which invest in growth businesses, sustainable property and social enterprises. The launch of its most recent fund, Sustainable Growth Fund III, in December 2011 attracted 72m for its first closing; this figure matched the final close for Bridges Sustainable Growth Fund II. Bridges Ventures Hotel Property Ltd will be funded from the Bridges Sustainable Growth Fund III. The Bridges Sustainable Growth Funds back ambitious management teams and invest in growth businesses across the four impact themes of Underserved Areas, Education & Skills, Environment and Health & Well-being. The Funds

typically invest up to 10m at a time in ambitious, entrepreneurial businesses including early stage, growth capital and buyouts / buy-ins. Since 2002, these Funds have made equity investments totalling over 75m in 34 businesses. A recent exited investment from these funds was the Hoxton Hotel on Great Eastern Street which Bridges supported at inception and which delivered 13.3m to Sustainable Growth Fund I (IRR 47%, 8.8x total investment) and 1.9m to Sustainable Growth Fund II (IRR 35%, 3.4x total investment). Bridges have made one other investment in the Whitechapel area Bridges Sustainable Property Fund invested in The Curve on Fieldgate Street, a 65m student-led development opportunity in partnership with Chancerygate Asset Management. Construction has now been completed and the development opens in summer 2012. It contains 339 student rooms, 9 private apartments and a Tesco Express. In June 2012 Bridges was announced as the winner of the 2012 FT/IFC Sustainable Finance Award for Excellence in Sustainable Finance and as joint winner of the Sustainable Investor of the Year category. The FT/IFC Sustainable Finance Awards are the major global awards for environmentally and socially responsible banking and investment and this year attracted 161 entries from 145 financial institutions and 36 non-financial groups in 67 countries.

1.3

Qbic Hotels
Qbic Hotels was established in Amsterdam where the first hotel was established. The Qbic Hotel World Trade Centre Amsterdam was opened on 1 July 2007 in order to test out the Qbic Hotel concept. The hotel was recently extended from 35 to 55 rooms in July 2009. Qbic Hotels have an ambitious business plan. By the end of 2019, Qbic Hotels intend to have a base of 18 low-cost, modular and flexible design hotels in major cities in the Netherlands, Belgium, Germany and the UK. By 2030, Qbic Hotels will have extended its leading position in the rapidly growing market of innovative budget-boutique hotels to over 150 hotels globally. Qbic Hotels have received the following awards: Best New Hotel Concept Venuez Awards 2007 Nominated Worldwide Hospitality Award MKG Group 2008 Audience winner 'Hotel of the Year' 2008 Green Globe 2012

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2.1

Site Description
Site Description
The site comprises a self contained office building known as Challenger House which is located at 42 Adler Street, arranged over lower ground, ground and four upper floors with circa 7,227 (GEA) sq m and 6,691 sq.m (GIA) of floor space. The building was constructed in the 1960s and refurbished in the 1980s and comprises an L shape form. The site area measures approximately 0.14 ha (1,470 sq.m).

Figure 1: Site location plan extract (not to scale)

Challenger House adjoins Cityside, an office building located at 40 Adler Street. Both properties share the car parking and servicing area to the rear. The property is not statutorily listed but it is located within Whitechapel High Street Conservation Area. The Bell Foundry building which is Grade II* listed. is located to the north east of the site on the corner of Whitechapel Road and Plumbers Row. Photographs of the site are included within Appendix 1. The property is partly vacant and is under utilised. The third and fourth floors have been vacant since 2008 and the ground floor has been vacant since October 2011. The property has been subject to a comprehensive marketing exercise to find new tenants for the building since 2008. This exercise has proved to be unsuccessful.

2.2

Surrounding Area
The site is located within Whitechapel, off Whitechapel Road which is a designated Red Route managed by Transport for London. To the north of the site is the Cityside offices building and beyond this Whitechapel High Street. To the east of the site is Plumbers Row and residential uses, to the south of the site is Mulberry Street with residential uses, and some businesses. To the west is Altab Ali Park and further residential development with the Whitechapel Gallery located along the High Street. The area is characterised by a mix of uses including offices, education uses, student housing, retail, residential and hotel uses (refer to plan below). We are aware that planning permission has also recently been granted in March 2011 for a new mixed use scheme in the near locality at 57-59 Whitechapel Road & 85 Whitechapel Road (comprising Magenta House). The planning permission is for: Demolition of the existing buildings at Magenta House and 57-59 Whitechapel Road to provide 187 rooms of student accommodation with ancillary facilities in three separate blocks ranging in height from 5 to 6 storeys; erection of 2 x four storey commercial buildings fronting Whitechapel Road (adjoining nos 63 and 83 respectively) to provide A1 (retail) use on ground floor & B1 (office) uses on 1st-3rd floors & provision of two disabled car parking spaces.

There are a number of hotels located in the surrounding area, which are detailed on the map below.
2 1 3

11 4

10

9 1

5 2 c 6 3 9

7 5 8 8 4 6 7 9

10

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Figure 2: site and nearby hotels

Application Site

Key

2.3

Transportation
The site is served by a number of nearby transportation links including access to the Metropolitan, Circle, Hammersmith and City, and District underground lines via Aldgate and Aldgate East stations, overground rail services via Whitechapel Station and access to mainline national rail networks via Liverpool Street, London Fenchurch and Shadwell Stations (see Figure 2 below- with site marked with blue rectangle).

Figure 3: Map illustrating transport links

Whitechapel will become a key station due to the 10 billion Crossrail project which will enhance Londons transport network providing a rapid east-west train line through Central London from Maidenhead to Shenfield. The link will dramatically reduce journey times as well as bringing a welcome boost to the London economy. The site is located within a level 6a public transportation accessibility level (PTAL) area, which means that the site benefits from extremely good accessibility levels.

Application Proposals
The proposal is for the conversion of the existing building to provide a five storey hotel development providing 187 bedrooms. Aside from the change of use and the internal reconfiguration of space, the application also proposes the following external works to the building and servicing areas: Replacement and provision of rooftop plant; Provision of a glazed canopy at ground floor level; Replacement/creation of windows and doors; Infilling of some existing windows on the courtyard-facing elevations; Provision of 14 cycle parking spaces in servicing area to rear; and Provision of 10 car parking spaces to rear including 1 disabled car parking space.

The scheme is being branded with the following characteristics: Boutique-hotel, offering very affordable, clean, secure and best basics hotel amenities for both business users and tourists. Easy to book and use, offered at convenient locations in larger urban environments. Several unique and proprietary concepts (e.g. Cubi TLC rooms, Q-lounge with social hosts, active social networking interaction). People-focused approach, building around several unique, guest oriented cornerstone concepts like the Cubi furniture pod and the Q-lounge concept.

3.1.1

Cubi Room The use of local material will be sourced and used where possible. However, the design of Qbic Hotel is based on the use of the Cubi Room concept. The Cubi Room itself is a pre-fabricated unit which can be easily transported and assembled on site and dismantled and reused. The Cubi Room is a highly versatile and sustainable product in its own right. The Cubi concept is based on a cubically shaped living unit that combines a variety of features. On a limited surface area, the Cubi can integrate sleeping, hygiene, working and cooking. The composition of elements like kitchen, bed, bathroom, storage, and working space can be selected by the client. Because of its unique design, the Cubi remains recognisable, irrespective of the version chosen. The Cubis design is variable and units can be installed anywhere. In addition, elements are easy to disassemble and reassemble elsewhere. The units are made from high-quality, durable and easy to maintain materials, which allow for easy repair should it be required. The Cubi unit is easy to connect to the main infrastructure of an (existing) building, requires minimal adaptation, and is quickly installed, including service connections. This results in major savings from significantly reduced construction time. A passage with a door that meets the minimal dimensions is required for delivery, after which construction of the Cubi in the room is completed within eight hours. The dimensions of the Cubi depend on the selected type and the number of 'elements'.

The Cubi is used in both permanent and semi-permanent constructions. The Cubi is a patented product.

3.2

Pre-Application Discussions
Pre-application discussions have been held with the Council to discuss the acceptability of the proposals. A meeting took place on 18 January with the following Officers in attendance: Mary OShaughnessy Planning Officer Richard Murrell Deputy Team Leader Matthew Lawes Highways Officer

The follow-up advice letter from Mary OShaughnessy is provided at Appendix 2. A brief summary of the discussions is set out below: 3.2.1 Introduction to Qbic Hotels: 3.2.2 Qbic has had an operational hotel in Amsterdam for c.4 years. The business model is to utilise vacant office space to convert to hotel use using the Cubi units, meaning the build can take 4-5 months. Reservations are taken over the internet. Sales are focussed on individual bookings rather than group bookings.

Principle of Land Use: The site is within the Central Activities Zone. The loss of the existing office use needs to be justified by evidencing the lack of demand for the ongoing use of the building for offices. Specifically, the Council will require a marketing report that: i Clearly outlines what marketing of the building has taken place to date, which states the rental level the space was advertised at and how this compares to prevailing market rental levels. ii Reference to vacancy rates in the area. iii The availability of office space in the area. The marketing report should draw clear conclusions that there is no demand for the office space offered by Challenger House based on the evidence presented. The proposed hotel use is acceptable in principle being an acceptable use within the Central Activities Zone with good transport links; and given that the site is not designated as a preferred office location.

3.2.3

Transport and Highways: A Transport Statement will be required in support of the planning application. The application will need to provide details of the existing and proposed servicing arrangements. The proposal is that servicing will take place in the yard to the rear of the building, though the exact demise is currently being confirmed. The car parking provision will need to be in accordance with LBTHs maximum parking standards, which are set at a maximum of 1 space per 15 bedrooms. However the preference will be for a car-free development as the Public Transport Accessibility Level (PTAL) is 6a. Therefore, on-site car parking will need to be justified. At least 1 disabled car parking space will be required on site.

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3.2.4

Cycle parking will need to be provided as per LBTHs standards. Separate areas will be required for guests and staff. Shower and changing facilities will be required for staff. LBTHs preferred cycle parking is Sheffield DStands, but there is scope for other types if necessary. LBTHs policy requires coach parking to be provided at 1 space per 100 beds. The London Plan policy requires 1 space per 50 beds. If on-site coach parking cannot be provided, it will be necessary to demonstrate consideration of a sequential approach to an alternative solution, which could include: i) Use of a lay-by for drop-off and pick-up and use of coach parking facilities elsewhere (e.g. the Tower of London); ii) Consultation with Transport for London on other options; Restriction on the use to prevent group bookings through a S106 legal agreement. This has been used elsewhere but is not favoured by LBTHs legal department. A travel plan would not be required for the proposal given the nature of the hotel use which results in a high turnover of guests; and as the application is not referable to the GLA. A draft servicing management plan should be submitted with the application. A construction method statement would not be required for the change of use scheme.

Accessible Rooms: London Plan policy now requires 10% of the total number of rooms to be accessible or adaptable for disabled users and the scheme will be required to meet this target. Consideration will need to be given to the room types (A, B and C) as per the Mayors Draft Best Practice Guidance and what would be required.

3.2.5

Energy: The proposal should be in accordance with the London Plan energy hierarchy. A BREEAM pre-assessment and energy report will be required for the application.

3.2.6

Planning Obligations: Planning obligations should be assessed against LBTHs adopted Supplementary Planning Document. The Heads of Terms are as set out in the provided agenda, namely: i Employment, skills, training and local enterprise; ii Community Facilities iii Sustainable transport; iv Public Open Space; v Streetscene and built environment;

3.2.7

Community Engagement It was agreed with LB Tower Hamlets that a public consultation exhibition would not be required for this type of development. However, surrounding neighbours will be informed of the submission of the application by a letter-drop. An example of the letter is included at Appendix 3.

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Planning History
Following a review of Tower Hamlets online planning records which date back to 2000; the following planning history has been identified for 42 Adler Street: Full planning permission was granted on 12 October 2006 for Change of use of ground floor of south wing from general offices (Class B1) to financial and professional services (Class A2) initially as a recruitment consultancy. (Application Reference: PA/06/01432). Full planning permission was granted on 21 November 2006 for Change of use of ground floor of south wing from B1 Offices to either B1 Offices or A2 Financial & Professional Services. (Application Reference: PA/06/01785). Full planning permission and conservation area consent was granted on 21 July 2009 for Removal of existing equipment and replacement with a new electrical sub-station cabin fixed to a new 3 metre by 3 metre concrete slab structure at the junctions of Plumbers Row and Mulberry Street, E1. (Application Reference: PA/09/00399).

A full set of planning history records are available at the Council offices. Given the planning history records above it is our view that the building benefits from an existing Class B1 Use with Class A2 at ground floor.

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5
5.1

Planning Policy
Development Plan
The Development Plan for the site comprises the saved policies in the Tower Hamlets UDP (1998); the adopted Core Strategy DPD (September 2010); the Managing Development DPD (Submission Version May 2012); various Interim Planning Guidance documents including the Aldgate Masterplan (2007) and the City Fringe Area Action Plan (2007), which are used for development control purposes and the London Plan (2011).

5.2

The London Plan

The site is located within the Central Activities Zone (CAZ). The London Plan identifies that the Central Activities Zone is suitable for commercial development associated with business, tourism and retail and provision for national and international agencies, institutes and services, subject to the protection of housing and identified special policy areas (Policy 2.10). Policy 4.5 Londons Visitor Infrastructure encourages the provision of 40,000 net additional hotel bed spaces to be provided by 2031 and to improve the quality, variety and distribution of visitor accommodation. It also states that new hotel development should be focused within the CAZ and Opportunity Areas and other central/accessible locations. London Plan Policy 5.1 seeks to reduce Londons carbon dioxide emissions by 60% (below 1990 levels) by 2025. Policy 5.2 states that development proposals should make the fullest contribution to minimising carbon dioxide emissions, in accordance with the following hierarchy: Be lean: use less energy Be clean: supply energy efficiently Be green: use renewable energy Policy 5.2 sets out the Mayors carbon dioxide emissions reduction targets for non-domestic buildings (minimum improvements on the Target Emission Rates (TER) as outlined in the national 2010 Building Regulations): 2010 2013: 25% 2013 2016: 40% 2016 2019: As per building regulations requirements 2019 2031: Zero carbon Further, the Policy states that major development proposals should be accompanied by a detailed energy assessment (the minimum requirements for energy assessments are listed) which demonstrates how the targets for the reduction of carbon dioxide will be met against the above mentioned energy hierarchy. Policy 5.3 seeks to achieve the highest standards of design and construction, to improve the environmental performance of buildings and mitigate against and adapt to climate change. Policy 5.5 sets out the Mayors target that by 2025, 25% of the heat and power used in London to be generated through the use of localised decentralised

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energy systems. To achieve this target the Mayor prioritises the development of centralised heating and cooling networks. Under Policy 5.6 development proposals should evaluate the feasibility of using Combined Heat and Power (CHP) systems and where appropriate examine opportunities to extend such systems beyond the site boundary to adjacent sites. Further, major development proposals should consider the selection of heating and cooling systems prioritising connection to existing systems over on-site systems. Under Policy 5.8 the Mayor supports and encourages more widespread use of innovative energy technologies to reduce use of fossil fuels and carbon dioxide emissions. Policy 5.10 encourages urban greening (i.e. development proposals integrating green infrastructure, such as tree planting, green roofs and walls and soft landscaping, to contribute to urban greening, including the public realm). Policy 6.13 details that the Mayors wishes to see an appropriate balance between new development and preventing excessive car parking provision, which could undermine more sustainable transport modes. Table 6.2, referenced in Policy 6.3, sets out the Mayors maximum parking standards. There is no specific standard given for hotel uses, but the following are included: Use Retail Food (up to 500 m ) Retail Non food Employment B1 Residential
2

Maximum standards Space per sq m of gross floorspace 35-50 (PTAL 4 to 2) 50-30 600-1000 Number of beds 1-2 beds: less than 1 per unit 3-beds: 1.5 1 per unit 4 or more beds: 2 1.5 per unit

In addition, under Policy 6.3 developments must: ensure that 1 in 5 spaces (both active and passive) provide an electrical charging point to encourage the uptake of electric vehicles provide parking for disabled people in line with Table 6.2. This requires 5 % of car parking capacity to be provided. meet the minimum cycle parking standards set out in Table 6.3 provide for the needs of businesses for delivery and servicing.

The planning decisions part of Policy 7.1 states (in part) that development should: B be designed so that the layout, tenure, and mix of uses interface with surrounding land and improve peoples access to social and community infrastructure... C. enable people to live healthy, active lives; maximize the opportunity for community diversity, inclusion and cohesion; andcontribute to peoples sense of place, safety and security. Places of work and leisure, streets, neighbourhoods, parks and open spaces should be designed to meet the needs of the community at all stages of peoples lives, and should meet the principles of lifetime neighbourhoods. D. The design of new buildings and the spaces they create should help reinforce or enhance the character, legibility, permeability and accessibility

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of the neighbourhood. Policy 7.2 requires all new development to achieve the highest standards of accessible and inclusive design and supports the principles of inclusive design. Policy 7.3 seeks to create safe, secure and accessible environments. Policy 7.8 seeks to protect Londons historic environment and landscapes. Policy 7.19 states that development proposals should give sites of borough importance for nature conservation the level of protection commensurate with their importance.

5.3
5.3.1

London Borough of Tower Hamlets

Designation The site is designated within the LB Tower Hamlets (LBTH) UDP as: Central Activities Zone (Policy CAZ 1 and CAZ 4) - where a range of Central London Core Activities will be encouraged which foster Londons role as a financial, commercial, tourist and cultural centre. The Council will also seek to maintain and enhance the varied and special character of these areas, to contribute to the social vitality particularly at ground floor level and to maintain a balance of uses. Whitechapel High Street Conservation Area where the character and the appearance of the conservation area will need to be preserved.

In the Core Strategy, the site is located within the Aldgate Sub area. The Vision for this area states: Rediscovering its gateway role as a mixed use, high density area with a commercial centre Aldgate will rediscover its gateway role, acting as an area of transition between the City of London and the East End. With this, it will become an important place where large-scale office uses cluster around the transport interchange at Aldgate, alongside a consolidated London Metropolitan University. Associated residential, commercial and evening uses will come, forward ensuring a mixeduse area that is lively both during the day and at night. High-quality public spaces will be provided along with a new park at Braham Street. It will be easier and safer to walk around with the removal of the subway network, and its mix of architecture will reflect the transition from the City to the East End. In the City Fringe Area Action Plan and the Interim Guidances proposals map, the site is located within the City Fringe Sub Area as: Development Site (CF40) for Employment (B1), Residential (C3), Retail (A1, A2, A3, A4), Public Open Space. Minimum Open Space size 0.1 ha, should be delivered through the implementation of the Aldgate Master Plan, by allocating Site CF40 for open space within the AAP.

In the Aldgate Masterplan, the site is not allocated for any particular use. The indicative land use zones surrounding the site are identified for:

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Cultural and tourism uses will be focussed on the area around Altab Ali Park, Whitechapel Art Gallery, Osborn Street and northwards along the Brick Lane corridor, towards Banglatown; and Higher education uses associated with London Metropolitan University will be focused in a new campus in the area north of Commercial Road and south of Whitechapel Road.

5.3.2

Employment UDP Policy EMP 3 states that proposals for the change of use of outmoded or surplus office floor space to Non B class uses, the council will take the following matters into account i) the length of time the property has been vacant and a requirement to demonstrate the property has been actively marketed; ii) the levels of offices space in the area; iii) whether the property has servicing arrangements suitable for other Class B uses and iv) whether the proposals are in line with other policies within the plan. This policy approach is continued in the emerging Managing Development DPD. Draft Policy DM15 states: The upgrading and redevelopment of employment sites outside of spatial policy areas will be supported. Development should not result in the loss of active and viable employment uses, unless it can be shown, through a marketing exercise, that the site has been actively marketed (for approximately 12 months) and that the site is unsuitable for continued employment use due to its location, accessibility, size and condition.

5.3.3

Hotels UDP Policy ART 7 identifies that favourable consideration will be given to proposals for major hotel development (30 or more beds) within the Central Area Zone. Core Strategy Policy SP06 seek to concentrate hotels, serviced apartments and conference centres, to attract visitors and promote tourism in the borough, in Central Activities Zone (CAZ), City Fringe Activity Area, Canary Wharf Activity Area and Major and district centres. AAP Policy CFR9 identifies that large scale development will be supported within the City Fringe Sub Area. Policy DM7 states that the Council will support the development of visitor accommodation where: a. the size is proportionate to its location within the town centre hierarchy; b. there is a need for such accommodation to serve visitors and the boroughs economy; c. it does not compromise the supply of land for new homes and the Councils ability to meet its housing targets; d. it does not create an over-concentration of such accommodation or cause harm to residential amenity; and e. there is adequate road access and servicing for coaches and other vehicles undertaking setting down and picking up movements.

5.3.4

Parking London Plan Policy 6.13 seeks an appropriate balance between promoting new development and preventing excessive car parking provision that can undermine cycling, walking and public transport use. This approach is reiterated in the

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Core Strategy Spatial Policy 09(4) reiterates the London Plan approach, which promotes car-free development to minimise on-site and off-site car parking provision and help address issues of congestion and air pollution. Core Strategy Spatial Policy 09 promotes car-free development, in order to minimise on-site and off-site car parking provision and help address issues of congestion and air pollution. Draft Policy DM22 of the Managing Development DPD continues to support a sustainable approach to parking by encouraging permit-free parking in areas of good public transport. 5.3.5 Design Core Strategy Spatial Policy 10 details the Councils requirements for good quality design. Part 2 of Policy 10 seeks to protect and enhance the boroughs built heritage and historic environment. Part 3 of the policy states that this will be achieved through: Promoting and implementing placemaking across the borough to ensure that the locally distinctive character and context of each place is acknowledged and enhanced. Protecting, conserving, and promoting the beneficial reuse of, old buildings that provide suitable locations for employment uses, including small and medium enterprises. Encouraging and supporting development that preserves and enhances the heritage value of the immediate and surrounding environment and the wider setting.

Part 4 of Policy 10 specifically promotes good design principles, through ensuring development: Protects amenity, and promotes well-being; Uses design and construction techniques to reduce the impact of noise and air pollution; Respects its local context and townscape, including the character, bulk and scale of the surrounding area; Contributes to the enhancement or creation of local distinctiveness; Is flexible and adaptable to change; Uses high quality architecture, urban and landscape design; and Assists in creating a well-connected public realm that is easy and safe to navigate.

Part 5 of Core Strategy Spatial Policy 10 and Policy DM26 identify Aldgate as appropriate locations for tall buildings. Policy DM24 provides further detail on the key elements of good design that should be considered at all scales of development. These include: a. ensuring design is sensitive to and enhances the local character and setting of the development, taking into account the surrounding: i. scale, height, mass, bulk and form of development; ii. building plot sizes, plot coverage and street patterns; iii. building lines and setbacks, roof lines, streetscape rhythm and other streetscape elements; iv. design details and elements; and v. natural environment.

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b. ensuring the use of high quality building materials and finishes; c. ensuring the internal design and layout of development maximises comfort and usability for occupants and maximises sustainability of the development; d. ensuring development is designed to be easily adaptable to different uses and the changing needs of users; e. protecting features of positive value within the site; and f. taking into account impacts on microclimate. Further, we note supporting paragraph 24.5 states that development should demonstrate its potential for adapting to ensure the long-term sustainability and beneficial re-use of development. Policy DM25 (Amenity) provides details on the amenity requirements that developments need to comply with. The policy states that development will be required to protect, and where possible improve, the amenity of surrounding existing and future residents and building occupants, as well as the amenity of the surrounding public realm. 5.3.6 Heritage Assets and Conservation Core Strategy Spatial Policy 10 details a range of Heritage Assets that exist in the borough and their contribution to the character, history and heritage of Tower Hamlets. Policy DM27 states that the Council will seek to protect and enhance the boroughs heritage assets. We note that applications for development within a heritage asset will only be approved where: a. it does not result in an adverse impact on the character, fabric or identity of the heritage asset or its setting; b. it is appropriate in terms of design, scale, form, detailing and materials in its local context; c. it enhances or better reveals the significance of the asset or its setting; d. opportunities to mitigate or adapt to climate change through the re-use or adaptation are maximised; and e. in the case of a change of use, a thorough assessment should be carried out of the practicability of retaining its existing use and the wider benefits of the proposed use. The supporting text in paragraph 27.3 states that the Council will require an application to demonstrate an understanding of the significance of the relevant asset or its setting. 5.3.7 Sustainability Core Strategy Spatial Policy 11 details the Councils requirements to achieve a borough wide carbon reduction target of 60% below the 1990 levels by 2025. The policy encourages the integration of renewable energy technologies on-site to provide the highest achievable CO2 savings where feasible. Policy DM29 sets out the Councils target for renewable energy generation. Part 3 of the policy states that the Council will support the sustainable retrofitting of existing development with provisions for the reduction of carbon emissions.

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5.4

Hotel Capacity Figures

The London Borough of Tower Hamlets produced a Retail and Leisure Capacity Study in January 2009. The GLAs report: Demand and Capacity for Hotels and Conference Centres in London (2002) found that there were around 1,500 hotel bedrooms in the Borough and that this was set to more than double. The large number of office developments proposed in the Borough is likely to increase hotel demand. The document does not set out any capacity figures for hotels; however it states that It is likely that there will be demand for new hotels up to 2017.

5.5

National Planning Policy

Regard has been given to the National Planning Policy Framework (NPPF) (published 27 March 2012), which sets out the Governments planning policies for England and how these are expected to be applied. It is a material consideration in planning decisions.

5.5.1

The Purpose of the Planning System The purpose of the planning system is to contribute to the achievement of sustainable development (para 6) to which there are three dimensions: economic, social and environmental (para 7). As such, economic, social and environmental gains should be sought jointly and simultaneously through the planning system (para 8). Thus and as is stated at paragraph 9, pursuing sustainable development involves seeking positive improvements in the quality of the built, natural and historic environment, as well as in peoples quality of life.

5.5.2

Presumption in Favour of Sustainable Development At the heart of the NPPF is a presumption in favour of sustainable development 1 (para 14; see also paras 187 and 197 ). Paragraph 14 sets out that for decision making this means: approving development proposals that accord with the development plan without delay; and where the development plan is absent, silent or relevant policies are out-ofdate, granting permission unless: any adverse impacts of doing so would significantly and demonstrably outweigh the benefits, when assessed against the policies in this Framework taken as a whole; or specific policies in this Framework indicate development proposals should be restricted.

5.5.3

Building a Strong, Competitive Economy Under Building a strong, competitive economy (paras 18 - 22), the NPPF sets out (with our emphasis added) that: The Government is committed to securing economic growth (para 18); The Government is committed to ensuring that the planning system does everything it can to support sustainable economic growth. Planning should operate to encourage and not act as an impediment to sustainable growth.

Paragraph 197 is notable in that it states when assessing and determining development proposals, local planning authorities should apply the presumption in favour of sustainable development.

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Therefore significant weight should be placed on the need to support economic growth through the planning system. (para 19); and To help achieve economic growth, local planning authorities should plan proactively to meet the development needs of business and support an economy fit for the 21st century (para 20);

5.5.4

Requiring Good Design Paragraph 56 sets out that the Government attaches great importance to the design of the built environment, continuing Good design is a key aspect of sustainable development, is indivisible from good planning, and should contribute positively to making places better for people. Paragraph 58 states that decisions should aim to ensure that developments (among other things) will function well and add to the overall quality of the area and are visually attractive as a result of good architecture and appropriate landscaping, with paragraph 60 stating that decisions should not attempt to impose architectural styles or particular tastes and they should not stifle innovation, originality or initiative through unsubstantiated requirements to conform to certain development forms or styles

5.5.5

Conserving and Enhancing the Natural Environment We also note that paragraph 111 states that decisions should encourage the effective use of land by re-using land that has been previously developedprovided that it is not of high environmental value.

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Planning Assessment
This section of the Planning Statement provides an assessment of the proposed development against relevant national, regional and local planning policies. We detail below our planning analysis under the following headings: Loss of Office Space; Principle of Hotel Use; Economic and Social Benefits Conservation and Design; Transportation; Energy and Sustainability; and Noise

6.1

Loss of Office Space

The site comprises existing offices and is allocated within Interim Planning Policy for mixed use development as Development Site (CF40) which proposes Employment (B1), Residential (C3) and Retail (A1, A2, A3, A4) uses with public open space. However, the Proposals Map (Submission Version May 2012) which has been published alongside the Managing Development DPD (Submission Version May 2012) shows the site is not allocated. The site is not located within a Preferred Office Location (POL) where LBTH seeks to consolidate and to primarily protect offices. Whitechapel is instead considered to be a secondary office location. Due to its position on the fringe of the city, the site is constrained by competition from proposed developments in more prime locations and is therefore less suitable for continued office use. The site has been subject to a comprehensive marketing exercise to find new tenants to use the property for continued office purposes. The property has been marketed since 2008 by various marketing agents involving the use of particulars and a website to support the marketing exercise. Please refer to the submitted Employment and Marketing Statement for additional information. This exercise demonstrated that there was no interest in continued office operations at the site, with no potential occupiers identified. The marketing exercise therefore fulfilled the requirements of policy EMP3 and Draft Policy DM15 of the Managing Development DPD. In terms of other available offices space in the area, there are a number of offices buildings along Whitechapel High Street including 45 and 100 Whitechapel High Street which have been marketed for a significant period and still remain available. A search has also been undertaken of available office spaces within the City Fringe and North Fringe areas. The search undertaken for this area identified approximately 1,696,034 sq ft. of surplus offices space on the market. The data source for this report was based on the commercial property databases EGi London Offices Database and Focus (CoStar). The extent of available space on the market demonstrates that there is a significant level of surplus office space. The loss of this office space would therefore not be detrimental to office floor space supply, in line with Policy EMP3. In terms of employment generation, the hotel will provide employment opportunities and will deliver economic benefits arising from visitors staying at the hotel who will use businesses and facilities in the local area.

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6.2

Principle of Hotel Use

The site is located within the Central Area Zone which is recognised as not only an area of business growth, but also an area where recreational, commercial, social and cultural uses are also important in supporting role of the CAZ and the quality of life for those living, working and visiting the area. This is reinforced by Policy CAZ1 of the UDP (1998) which states that the Council will normally give favourable consideration to major hotel developments within the Central Area Zone (CAZ). Saved UDP Policy ART7 and Core Strategy Policy SP06 also state that hotel developments should be concentrated in the Central Activities Zone and City Fringe Activity Area, both of which the application site is located within. The London Plan also supports hotel developments within the Central Activities Zone. Tourism is seen as a key growth industry for London. To accommodate this growth, Policy 4.5 of the London Plan (2011) specifies a target of 40,000 net additional hotel bedrooms by 2031 respectively. The policies identify the Central Activities Zone (CAZ) as a priority location for new hotel accommodation and seek to maximise densities. Policy 4.5 also states that new visitor accommodation should be delivered in appropriate locations, where there is good public transport access, and further intensification of provision in areas of existing concentration within the CAZ should not be resisted, except where this will compromise local amenity or the balance of local land uses. It is our view that the proposal is appropriate in this location. The site lies within a highly accessible and sustainable location. A hotel use will also contribute to the range of land use mix in the area to maintain a healthy balance of land uses and to add to the diversity in the locality in line with policy 4.5.

6.3

Economic and Social Benefits

The proposal is for the refurbishment and change of use of an existing building. The development will therefore comprise the re-use of an existing building, rather then the demolition and development of a new building. The proposal will bring a predominantly vacated building back into full use to provide a high quality, energy efficient, modern hotel building which complies with todays Building Regulation standards for all new works. The development will generate new jobs providing new job opportunities for local residents and suppliers/businesses. As part of the S106 Agreement, there will also be an undertaking to enter into an employment, skills, training and local enterprise initiative with LBTH. The new use will also add to the vitality of the area by attracting visitors and guests to this part of Whitechapel, to complement other uses such as the Whitechapel Gallery. It will also bring economic benefits to the local area as the guests and visitors will use local services. The hotel development will also provide benefits to the local community. The lounge and dining facilities provided by the hotel will be open to the general public. The hotel scheme will also have an active frontage to provide natural surveillance.

6.4

Conservation and Design

Qbic Hotels seek to re-use existing buildings and convert them to hotels with minimal disruption to the existing fabric of the buildings. By not making substantial changes to the structure and external envelope of the building, Qbic

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are able to carry out minimal refurbishment works. To create the individual hotel rooms, Qbic then install their pre-fabricated Cubi rooms which plug-in to the buildings services. As a result, there are substantial changes to the internal layout and fitting of the building, but minimal disruption to the external parts of the building that fall within planning control. Those external works required are proposed to upgrade and improve the building so it is fit for current occupational requirements. The following externals are proposed under the planning application: Replacement windows will be installed to all elevations. The replacement windows are thermally protected double glazing units capable of providing both solar control and acoustic attenuation. The frames will be powder coated aluminium and will be installed within the existing openings and mullions. Rooftop air conditioning plant and acoustic screening and solar array. The acoustic screen surrounding the air source heat pumps on the south side of the building measures approximately 2.4m high. A new circular sliding double-glazed main entrance door onto Adler Street set back from the main building line as existing. A projecting glazed feature canopy projecting off the west elevation onto Adler Street at ground floor level. The canopy will not extend beyond the footpath and is comfortably above head height to ensure pedestrians can pass under the canopy. On the courtyard facing elevations, it is proposed to replace some windows with powder coated aluminium windows to match the existing with opacified look-a-like glazing. A small number of existing windows on the courtyard-facing elevations will be infilled with a render finish in the reveals to accommodate the internal layout alterations. Replacement double-glazed door at ground level rear elevation facing the courtyard and replacement fire-exit doors facing the courtyard. The existing roller-shutter service door and ramp to the rear courtyard facing elevation to be infilled with matching brickwork.

All the external changes to the building are minor in nature, particularly those to the front elevations that are more visible. Given this, and the nature of the proposed alterations, it is considered that the proposals will preserve the character and appearance of the Conservation Area and accord with London Plan and LBTH planning policies as described above.

6.5

Accessible Rooms
Of the 174 new guest rooms planned for Phase One, nine will be fully fitted out for full wheelchair accessibility and a further nine will be fitted out for ambulant disabled use. These will incorporate specific measures and equipment for guests who are ambulant but experience other disabilities. When Phase II is implemented, of the 13 additional guestrooms proposed, 1 no. will be designed for full accessibility and one other for disabled guests who are ambulant. This equates to 5% fully wheelchair accessible rooms and 5% ambulant disabled rooms, resulting in a total of 10% of rooms providing facilities for disabled guests. The guestrooms designed for wheelchair use have been designed in accordance with the recommendations contained in the Approved Document Part M and as outlined under the Accessible Hotels in London Type B room. The ambulant disabled rooms will be fitted out with vibrating pillows, strobe lighting to both the guestroom and bathroom. The room will also be design with

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contracting colours in accordance with the recommendations contained in the Approved Document Part M. It is considered this approach is acceptable given that it caters for different types of disabled users, which is a realistic way of managing the demand for hotel rooms that cater for disabled guests. This approach also enables Qbic hotels to maximise the use of their Cubi hotel room model. The provision of fully wheelchair accessible hotel rooms prevents the use of the pre-fabricated Cubi models because of the strict dimension and level threshold requirements. This means wheelchair accessible rooms will need to be fitted out in a conventional way, which removes the advantages of the Cubi model. The 5% ambulant disabled rooms will be able to use the Cubi model and will be supplemented by the adaptations highlighted above. It is considered that this is a reasonable, realistic and pragmatic way of ensuring the hotel provides sufficient rooms for disabled guests. Existing public toilets at ground floor level including an existing disabled w.c. are to be retained.

6.6

Transport, Access and Servicing

A Transport Statement has been produced by Peter Bret Associates (PBA) and a Servicing Management Plan has been produced by BNP Paribas Real Estate with inputs from Qbic Hotel and PBA.

6.6.1

Public Transport The site is highly accessible by public transport and has a Public Transport Accessibility Level (PTAL) of 6A by virtue of easy access to mainline train stations, London Underground Stations and the extensive London bus network. The site is therefore suitable for a hotel development as it is located within a highly accessible area.

6.6.2

Car and Cycle parking The hotel will comprise limited car parking for hotel staff and guests. The existing office use benefits from 10 parking spaces. The proposed development will retain all 10 spaces, of which one will be allocated as a parking bay for blue badge holders. This is in accordance with the LBTH standards which state that the maximum parking provision for hotels should be 1 space per 15 rooms. The maximum car parking provision for the development would therefore be 12 spaces. It is therefore intended that the majority of staff and visitors to the building will use public transport modes, or will walk or cycle to the site. The site is accessible by bicycles and secure, covered cycle parking spaces are to be provided. Cycle parking will be provided in accordance with LBTH standards, which are based on 1 cycle parking space per 10 staff and 1 space per 15 residents should be provided. Based on these numbers the total number of cycle spaces should be 14. These will be provided in the form of Sheffield cycle stands adjacent to the rear hotel entrance. This will ensure that they are both convenient to use and secure. Shower and changing facilities will be provided for staff to encourage the use of cycling.

6.6.3

Coach Parking LBTH has advised that due to the size of the proposed Hotel a coach parking space should be provided as other hotel operators could potentially take the building and allow coach bookings in the future.

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The nature of the hotel is unlikely to generate coach trips as the operators will seek individual bookings rather than group books. Qbic Hotel has also advised that coach based bookings are not normally part of their cliental base. The policy approach identifies that the optimal location of the coach bay should be determined through be a sequential approach; firstly on-site provision, secondly on-street provision and finally the use of an existing coach parking facilities within the area. A swept path analysis has been undertaken by PBA which has identified that Geometric constraints do not allow the coach to enter the car park as the entrance is very narrow and the site is constrained by existing car parking on the site. In terms of on street coach parking provision, the closest coach parking facility is located outside Whitechapel Gallery on Whitechapel Road. A coach bay is provided, for a maximum stay of 1 hour and no return within 2 hours. However, discussions have taken place between PBA and TfL who has indicated that it will not be a feasible solution as the bay is presently in dispute due to an issue with a Traffic Order. On going discussions are also taking place with TfL with regard to finding an alternative on street coach parking bay or existing coach parking facility. 6.6.4 Servicing A Service Management Plan has been produced by BNP Paribas Real Estate and is submitted as part of the planning application. This outlines how the building will be serviced and provides details of how servicing will be managed to result in the lowest number of trips possible. Waste collection will be provided within the existing refuse storage area within the servicing yard. LBTH has confirmed that the continued on-street waste collection will be acceptable, subject to appropriate considerations of vehicle dwell time and internal storage and collection. The proposed development is likely to generate servicing trips which are related to consumable deliveries, linen collection and delivery, stationary supplies, delivery of cleaning products and general maintenance. The trips will be consolidated to combine a number of different collections and deliveries by one vehicle, which will result in a relatively low number of trips being made.

6.7

Energy and Sustainability

Building Services Solutions has produced a Building Services and Energy Report. This report sets out the optimum energy strategy for the building that will deliver the most efficient solution to reduce energy consumption for the lifetime of the building and thus carbon emissions. This approach seeks to use less energy, supply energy efficiently and use renewable energy sources where possible. A full assessment of available technologies has been undertaken to configure a system that will deliver the optimum performance in view of the site conditions, the proposed use and configuration of the building and the viability of the technologies. The proposals have been designed in line with the London Plans Energy Strategy. This includes: Be Lean Improve the energy efficiency of the scheme Be Clean Supply as much of the remaining energy requirement with low carbon technologies

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 6.7.1

Be Green Offset a proportion of the remaining carbon dioxide emissions by using renewable energy technologies

Be Lean The following lean energy efficiency measures are proposed: Improving building fabric prevention of heat loss through the internal insulation of external walls and provision of new windows to improve thermal value Passive design - use of good daylight to the bedrooms to reduce artificial lighting and use of blackout blinds to reduce heat build up and heat loss Reducing air filtration Low energy lighting and lighting control 95% of the hotel scheme will have low energy lamps and fittings Flow restriction in showers to maximise flow to 9 litres per minute and temperature controls to reduce overheating of water.

6.7.2

Be Clean The following Clean energy supply will be provided which uses low carbon technologies: Gas fired condenser heaters - to provide hot water. The heater will be able to modulate down to a very low load allowing minimal wastage by not over heating the water having a 96-97 % efficiency. Air Conditioning /Comfort Cooling to provide controlled heating and cooling. To the central area and rooms through Air Sour heat Pumps. Identified to reduce CO2 emission by 43%. The Air Source Heat Pumps will also provide free cooling for the air conditioning. Heat Reclaim Units - to reclaim heat or cooling from various areas from the extracted air and use it to condition the incoming external air before the supply air enters the areas being served. This free cooling and heating will greatly reduce the load and energy consumption of the air conditioning systems

6.7.3

Be Green A range of Green energy supplies were considered including: Biomass Boilers Wind Turbines CHP unit Photovoltaic panels Air Source Heat Pumps Solar thermal Collectors

Following a thorough assessment as set out in the Building Services and Energy Report, the following renewable measures have been selected. Photovoltaic cells to provide electricity Air source Heat Pumps for comfort cooling and heating

These will provide electricity and heating and cooling respectively. Our investigations and the results of the thermal modelling have indicated that a significant reduction in the carbon emissions over a baseline building can be

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achieved by including systems and technologies that reduce the amount of energy required and by including renewable energy systems such as the air source heat pump condensers and photovoltaic array. Together, these measures are predicted to reduce total Carbon Dioxide emissions from the whole development by around 30% when compared to the base build model. This meets the London Plans requirement in Policy 5.2 to reduce carbon dioxide emissions for non-domestic buildings by 25% in the period 2010 2013 (minimum improvements on the Target Emission Rates (TER) as outlined in the national 2010 Building Regulations). In addition, John Packer Associates have prepared a Pre-BREEAM Assessment. Overall, it is proposed to achieve a BREEAM rating of Very Good with a score of approximately 62%. The threshold for the Very Good category is 55% meaning the predicted score is comfortably above this level. The assessment work undertaken has demonstrated it is not possible to achieve an Excellent rating as the development comprises the conversion of an existing building, therefore achieving more than Very Good is prohibitive. The minimum score required to achieve a BREEM Excellent rating is 70%. The assessment work undertaken demonstrates that even if every available credit were targeted (notwithstanding whether these are achievable), the maximum potential score would be approximately 66-67% and therefore still significantly below the Excellent threshold. The enclosed letter from John Packer Associates (who undertook the BREEAM assessment work) explains that the limited design options brought about by conversion of an existing building means that achieving the Excellent rating is extremely difficult. In their extensive experience, John Packer Associates has yet to award an Excellent rating where it involved the conversion of an existing building. In addition, it is important to note that by retaining and reusing much of the existing building carbon dioxide emissions are dramatically reduced when compared against total demolition and new build.

6.8

Noise
A noise assessment has been prepared by Acoustic Design Consultancy and is submitted as part of the planning application. The report outlines the methodology for the assessment of existing background noise levels, the recorded levels, the identification of noise-sensitive facades, and the noise levels the required noise levels of the proposed plant in order to meet LB Tower Hamlets standards. The standard condition that will be applied requires installed plant to be 10dBA below existing background noise levels. A manned on-site noise survey was conducted overnight to capture background noise levels. An overnight survey was carried out as this covers the period when noise levels are at their lowest, and will therefore dictate the lowest level against which proposed plant will be assessed. Measurements were taken at four different points to gather robust data from each identified noise sensitive faade. The most crucial facade in terms of noise protection is the nearest one, on Mulberry Street. The lowest ambient background noise levels around the building were recorded on Mulberry Street with LAF90 values of 44.5dBA towards the top of the facades and 42dBA at lower levels. The LAF90 value is the relevant value to use in the assessment as this represents the sound level exceeded for 90% of the time. Accordingly, the measured values of LAF90 indicate that services noise from the hotel must not exceed 34.5dBA at the level of the top floor of the Mulberry

27

Street building, and 32dBA closer to ground level in order to meet the -10dBA requirement. The specified rooftop plant will not meet these standards without noise attenuation measures being incorporated. To achieve the standard, screening to the heat pumps will be required to provide an additional attenuation expected to be around 15dB.

6.9

Heads of Terms
The following draft heads of terms have been discussed and agreed with LB Tower Hamlets: Employment, skills, training and local enterprise; Community Facilities; Public Open Space; Sustainable Transport; and Street-scene and Built Environment.

An undertaking will be made through the drafting of a S106 Agreement to incorporate these planning obligations.

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Conclusions
The office building is largely vacant. The building has been actively marketed since 2008 to attract a new office occupier and no offers were made. The proposals will therefore allow under-utilised and outmoded office space to come forward for an alternative use in line with Policy EMP3. This will allow the building to be brought back into an active and more sustainable use to secure its long term future in line with the NPPF. The development of a hotel in the City Fringe and the Central Area/Activities Zone is an appropriate use in this location. The hotel will provide accommodation for both business users and for tourists, to service the City and the tourism zone to the north of the site which provides access to Brick Lane, Spitalfields Market, and the various Whitechapel tourist tours. The hotel scheme will therefore support the functions of the CAZ , in line with London Plan Policy 2.10 and UDP Policy CAZ 1. The hotel development will contribute to the mixed use character of the area in line with the aspiration of the various emerging Policies for Aldgate, as set out in the Aldgate Masterplan and Core Strategy. The development will also provide benefits to the local area in terms of job creation for local people and in terms of expenditure in the local economy from guests staying at the hotel. The ground floor of the hotel will also be used as a reception area and lounge/dining area for hotel guests. This will create an active frontage to contribute to the vibrancy of the area and to provide natural surveillance, in line with Policy CAZ 4. The scheme will also enhance the neighbourhood and allow the facilities to be used by residents. The proposals will involve a change of use of the building. Whilst there may be some minor alterations to the exterior of the building, there will not be an adverse impact on the heritage interest in the area. The character and appearance of the Conservation Area and the setting of the Grade II * listed building along Plumbers Row/Whitechapel High Street will be preserved in line with the NPPF.

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Appendix 1 - Photographs

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Challenger House, 42 Adler Street

Front elevation of Challenger House facing Adler Street

Front elevation of Cityside and Challenger House from across Altab Park

PEJ/112752/E/APPSUB/010

Challenger House, 42 Adler Street

View north along Adler Street showing Cityside and Challenger House

View east along Whitechapel High Street showing cycle path and bus stop

PEJ/112752/E/APPSUB/010

Challenger House, 42 Adler Street

Side elevation of Challenger House facing Mulberry Street

View north along Plumbers Row show vehicular access into site

PEJ/112752/E/APPSUB/010

Challenger House, 42 Adler Street

View through rear access gates of rear courtyard and elevation

PEJ/112752/E/APPSUB/010

Appendix 2 - Pre-Application Response Letter

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Appendix 3 - Example of Letter to Neighbours

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To the Occupier

Nicola Forster Director BNP Paribas Real Estate 5 Aldermanbury Square London EC2V 7BP Tel: Switchboard: Fax: Email: 020 7338 4119 020 7338 4000 020 7430 2628 nicola.forster@bnpparibas.com

Our ref: NIF/PEJ/112752/F/004L

28 June 2012

To the Occupier NOTIFICATION OF PLANNING APPLICATION FOR NEW HOTEL AT CHALLENGER HOUSE, 42 ADLER STREET, LONDON We write to inform you of proposals to convert the existing office building into a hotel on behalf of the applicant, Bridges Hotel Properties Ltd and the operator, Qbic Hotels. The proposals seek planning permission to convert the existing office building, known as Challenger House, to a 187 bedroom hotel. The hotel will be aimed at tourists and business guests and will result in complete refurbishment of the building, including some minor external works such as new windows, doors and a new entrance canopy. Other than these changes, it is not proposed to carry out any other changes to the outside of the building. The planning application is due to be submitted to the London Borough of Tower Hamlets shortly. The Council will send letters to nearby residents and neighbours and will post site notices when the application is submitted. Members of the public will be able to view the proposals on the Councils website or at the Councils offices. The Councils letters and site notices will provide details of how and when to make comments on the application. In the meantime, should you have any queries, please contact either Nicola Forster on telephone: 0207 338 4119 and email: nicola.forster@bnpparibas.com; or Philip Jones on telephone: 020 7338 4053 and email: philip.jones@bnpparibas.com. Yours faithfully

BNP Paribas Real Estate