Leicester Square property tycoon Asif Aziz sells off east London offices for £170 million after council setback

The owner of Leicester Square landmarks including the Odeon cinema has abandoned plans for new flats in east London after they were turned down by the council.

Criterion Capital, founded by Malawi-born tycoon Asif Aziz, wanted to turn its offices in East India Dock into 1389 rental homes, with a gym and shops.

But Tower Hamlets council refused the change of use, prompting the company to sell up for £170 million.

Best known for its Leicester Square empire, including the Odeon, Capital Radio and Trocadero buildings, Criterion has made aggressive efforts to build a portfolio of flats to capitalise on London’s growing “generation rent”.

Aziz bought his first London property in the Eighties.

His company called the council’s decision “disappointing” and said it decided to sell “rather than go through the tortuous and timely process of an appeal”.

Criterion’s east London holdings have been snapped up by LaSalle Investment Management after several months of negotiations.

Agents Michael Elliott and Savills advised on the deal, which will see the new owner receive more than £7 million a year in rent.

LaSalle, in partnership with Trilogy Property Advisers will refurbish East India Dock as “ a viable alternative for occupiers priced out of traditional office locations.”.