£62.5m Shadwell Revamp: Tower Hamlets Seeks Builder

April 22, 2025
Tower Bridge, connecting the boroughs of Southwark and Tower Hamlets, London
  • Tower Hamlets is employing a two-stage design and build procurement process, intending to award a single main contract in December.

Tower Hamlets Council has officially unveiled ambitious £62.5 million plans to transform the St George’s Leisure Centre site in Shadwell, seeking a main contractor to deliver a significant mixed-use development. The project will see the demolition of the existing facility to make way for a new, four-storey leisure centre spanning 5,854 square metres, alongside the construction of 29 council-owned homes, ensuring 10 percent are adaptable for wheelchair users.

The state-of-the-art leisure centre will boast a comprehensive range of wet and dry wellbeing amenities, with essential plant space located in the basement. Adjacent to it, an eight-storey residential building, classified as high-risk and therefore incorporating two stair cores and a full sprinkler system for enhanced safety, will provide much-needed council housing.

The design positions the two new buildings at opposite ends of the site, separated by a shared service zone that will include accessible parking. The council also envisions significant public realm upgrades to the surrounding streets, including Solander Gardens, St George’s Gardens, and the busy Highway frontage, aiming to enhance the local environment for residents and visitors.

Tower Hamlets is employing a two-stage design and build procurement process, intending to award a single main contract in December. This contract will encompass pre-construction services, such as demolition and the completion of the detailed RIBA stage 4 design, through to the full construction of both buildings and landscaping. Interestingly, the council plans to run a separate demolition contract concurrently with the main contractor's pre-construction phase, ensuring that findings from thorough site investigations can inform the final building designs. The entire programme is currently slated to commence on 29 August 2026, with a target handover date of 30 November 2028. Construction of the leisure centre is estimated to take 24 months, while the residential building is expected to be completed within 18 months.

The council has set a high environmental standard for the project, aiming for a BREEAM Excellent rating for the new leisure centre. The sensitive nature of the site, located next to the Grade I-listed St George-in-the-East church designed by the renowned Nicholas Hawksmoor and within a parkland setting, will undoubtedly require careful consideration during the construction process.

As part of an early market engagement strategy, Tower Hamlets is inviting contractors with a turnover exceeding £30 million to submit relevant case studies by 30 April 2025. From these submissions, ten firms will be shortlisted for in-depth one-to-one meetings with council staff on 6 and 7 May. Demonstrating a commitment to the local economy, the council has explicitly stated that bidders must showcase a robust approach to involving local Small and Medium-sized Enterprise (SME) suppliers to maximise the economic and social value derived from this substantial investment. While the tender is open to any eligible contractor, this emphasis strongly suggests a desire to see local businesses and potentially Tower Hamlets residents benefit from the opportunities created by the scheme.

The significant public investment of £62.5 million naturally raises questions about potential cost efficiencies. While the council has not detailed any specific cost-saving measures in this stage, the focus on quality (BREEAM Excellent rating) and the complexities of the site suggest that value for money will be a key consideration throughout the procurement and delivery phases. It remains to be seen whether alternative, less expensive approaches were explored or will be considered as the project progresses. The emphasis on local economic benefits could also factor into the overall cost-benefit analysis for the borough.