Vauxhall and Battersea are in the pink

London Evening Standard


Vauxhall and Battersea are in the pink
Rosamund Urwin
12.05.09

Vauxhall was once a pleasure-seeker's paradise. In the past decade, the area best known as a transport thoroughfare again became a pull for the party people.

Meanwhile, neighbour Battersea attracted the yuppie overspill from across the Thames.

Developers went on a building spree, putting up glass-fronted flats along the river. But has the recession cut the party short?

More than just a gateway to the wrong side of the river, Vauxhall comes alive at weekends. Clubbers from across the capital disappear into its railway arches in search of the type of hedonistic joys that drew the punters to the Pleasure Gardens three centuries ago.

But Stephen Thomas, chief executive of listed clubs owner Luminar, warned recently that up to half of the nation's late-night venues could close as Brits cut back on going out.

"Takings are down about 5% on last year," admits David French, the manager of Vauxhall's Renaissance Rooms, the roller disco club.

But he reckons the frequent closure of the Victoria line is hitting them harder than the economy: "People want the escapism of a good night out."

Vauxhall is, of course, best known as a gay hang-out, Soho's seedier sister. "Muscle Marys" frequent London's only all-gay gym; club Hoist is home to chaps who wear chaps; and Chariots Roman Spa draws in the crowds.

The Pink Pound is proving relatively recession-proof, according to the local bars' and clubs' reports of trading.

The stretch from Vauxhall to Battersea remains mainly residential. Prices of homes have proved fairly resilient, falling by only a tenth in a year, but the number of sales has plummeted.

Property consultancy Knight Frank reports that transactions fell by over 75% on last year. The fringes have been hardest hit, as buyers find their pennies now stretch to more prestigious parts.

A big worry is how much retail space remains unlet in these developments. The area also needs to attract corporate residents.

Shopping channel QVC and architects Foster & Partners are among the few well-known names to call it home. Office demand has been hard-hit: figures from King Sturge show rents are now £10 a square foot cheaper than in 2000, at only £25.

In Battersea, the big excitement is that the eagle is flying its Mayfair nest and landing there. The American embassy is taking a five-acre site, building a mix of homes, offices and shops.

It is part of the GLA's big plans for the district, which it considers an "opportunity area". Sir Simon Milton, deputy mayor for policy and planning, says: "This is such an under-exploited part of London. After all, it's larger than Canary Wharf."

The area's four major landowners are all on board for plans to replace its tatty industrial buildings with shiny new sites.

Guy Bransby, a director in Jones Lang LaSalle's planning team, believes the area will be transformed: "It will get a total overhaul. This is one of London's biggest regeneration opportunities."

All agree what has held Battersea back is its transport links. This is something that Treasury Holdings, the new owner of Battersea Power station, wants to change. It hopes to extend the Northern line, adding two new stops.

And what of the gutted industrial landmark? Residents are used to hot air pouring out about the power station, but Rob Tincknell, managing director of Treasury Holdings, is optimistic: "We are confident that we have a viable plan for the building."

Plans for a 300-metre high tower have been axed, but a new application is being submitted in June.

New Covent Garden Market is also looking for a partner as it plans to cut the space the flower and fruit sellers occupy and develop the site.

Charles Holland of Jones Lang laSalle is cautious: "Major development takes a long time and the current economic malaise is hitting developers hard. When the markets recover, we will hopefully see lending return to these big schemes."

But Treasury's Tincknell says it is ripe for a revamp: "This is a forgotten quarter of London. When people visit us, they arrive 15 minutes early. They think it's in the middle of nowhere, but it couldn't be much more central."


Case study: Business is booming

Paul Oxley bought the Royal Vauxhall Tavern in 2005.

The Kennington Lane venue helped launch Lily Savage and Julian Clary, who was bombarded with ice cubes when he first performed there in 1979. The Tavern hosts bands, bingo and comedy as well as its famous gay club nights, and puts on a summer sports day and pantos.

Oxley, 49, says: "Business is the best it has ever been. We keep our prices honest and haven't put up charges. It's a bit of a Shakespearean bear pit at times, but other nights are more refined. Our aim is to turn it into the Roundhouse of the South. Vauxhall has one of the highest concentrations of gays in London, but it's not just a gay hang-out.

"So many people come clubbing here every weekend. Lambeth has the youngest population in London and for a long time, there wasn't enough entertainment. I'm doing my damnedest to change the way the area is viewed."

Two bedroom flat, Vauxhall and Battersea:
2000: £268,000
2007: £505,000
Now: £455,000

Prime office rents (per square foot)
2000: £35
2007: £32.50
Now: £25

Source: King Sturge

Top businesses by sector:
Charities and Charitable Organisations: 63
Public Houses: 59
Wholesale Fruit and Vegetable: 54
Take Away Meal Outlets: 51
Estate Agents: 46
Number of businesses: 2,866
Average length of trading: 17 years
Number of directors 11,415
Average age of director 43.5
Oldest registered business: Established 1847, Harold Griffin SW11 5TB

Source: 192.com, business and residential website