The government has agreed to a loan of £200m to get the massive Wood Wharf development, next to Canary Wharf off the ground.



This is to be considered an extension of Canary Wharf and the Canary Wharf Group will utilise the loan to fund the construction of the infrastructure required for the project.



The project will deliver 3,500 new homes including some 607 affordable homes in addition to 2.8m sq ft of offices, shops and leisure facilities which will be house in 30 new buildings to be built on the estate which is located to the East of the Canary Wharf.



Planning permission has already been granted and it’s anticipated this work will commence in a matter of months with the initial enabling work including the relocation and upgrading of existing utilities for the estate.



The first phase of the site is due to be complete in time for the arrival of Crossrail in 2018.



A new 57-storey cylindrical skyscraper will feature at the centre of the construction project, facing South Dock, which has been designed by Herzog & de Meuron, the architects behind the iconic Tate Modern and the Olympic Stadium in Beijing known as the Bird’s Nest.



Sir George Iacobescu CBE, chairman and chief executive officer of Canary Wharf Group said: “This crucial contribution by the Homes and Communities Agency, towards the infrastructure needed to underpin the next phase of Canary Wharf will enable the group to fulfil its ambition of creating one of the most exciting and vibrant places to live and work in London.



“This is just the type of targeted and practical assistance that our sector needs to help deal with the housing shortage in London.” he added.

The loan has been provided by the Homes & Communities Agency (HCA), whose chief executive Andy Rose said: “The £200m contribution to this project will accelerate the infrastructure needed to boost this vital centre for business activity by unlocking land to establish Canary Wharf as a residential location, building the homes that London needs to supply viable housing developments.

“The agency has demonstrated that by working in partnership with the private sector and the mayor of London, a project of this scale and complexity can be delivered. This loan supports the building of thousands of homes, creates significant employment and represents good value for the tax payer.”

£60m will be contributed by Canary Wharf Group towards Crossrail with a further £28m going towards other infrastructure developments.

A significant number of construction jobs will be created during the construction phase of this huge development whilst the scheme promises to use many innovative construction supplies and materials.