Acme Studios, Leven Road

Project Description

Atelier Court in Leven Road is a 100% affordable mixed-use (residential and commercial) development. In addition to the 21 affordable artists’ studios totalling over 6,000 sq ft of floor space, the project also comprises 66 affordable housing units. The site was acquired by Swan Housing Association, and included vacant warehouses which had fallen into disrepair. This affordable mixed-use development was initially the result of commercial pragmatism on the part of the partners, but quickly an understanding of the wider public and community benefit of the mix arose.

Aims and Objectives

For Acme Studios, the aim was to provide affordable workspace to meet unmet local demand.

For Swan Housing Association, the aim was to secure planning permission for the redevelopment by satisfying local planning requirements for the site. The main priority for the London Borough of Tower Hamlets was job creation, and so this was a key issue for the project. No job losses were allowed with the redevelopment of the site, which originally accommodated 14 employees.

Project Start Date and End Date

The development was granted planning permission in September 2007, and the whole project was completed in March 2009.

Services Offered

The site provides 21 affordable artists’ studios and 66 affordable housing units. The studios are fully accessible, all situated on the ground floor of the building, and facilities have been designed to meet accessibility standards.

The local community is also benefitting from an artist in residence scheme. The two-year residency includes a free studio worth around £7,000 and a grant of £10,000 a year.

Success Factors 

• The development satisfied the Council’s requirement for job creation in the borough by doubling the number of employees from the original use, whilst meeting the local Section 106 requirement to provide community benefit.
• Because the work space offered is affordable, all of the studio units have 100% occupancy rate from day one, and can expect continued full occupancy as there is a long waiting list for Acme studio space. The development is helping meet the demand for affordable workspace in London, whilst ensuring there are no vacant lots, which can contribute to the degradation of the quality of the vicinity.
• Continuing the success of the Leven Road studios, Acme is working in partnership with other local authorities and social housing providers on the development of two more schemes.
• Further to this, the Leven Road development was recently shortlisted for the Lloyd’s Arts and Business Innovation Prize; the winner is to be announced in November 2009.

Risk Factors

For Acme, risks included:

• Increasing construction costs were mitigated by negotiating fixed costs from fixed design specifications for its studios.
• Occupancy rates which can have an impact on the ability to maintain rent level mitigated due to high local demand.

For Swan, risks included:

• Delays or refusal of planning permissions prevented by meeting local planning requirements for affordable housing, employment and commercial workspaces
• Increasing construction costs of the affordable housing units
• Uncertainty over commercial rents were reduced by guaranteed occupancy of the studio units due to high local demand

Business/Operational Model

Acme Studios purchased a 125-year lease which provided them with ownership of the ground floor. Acme is responsible for managing and maintaining the affordable artists’ studios on the ground level. Swan Housing Association is responsible for the affordable housing units.

The Leven Road studios form part of a network of affordable workspace run by Acme, across East and South East London. On a wider scale, the organisation works extensively with the National Federation of Artists’ Studios Providers (NFASP) and Arts Council England to promote the provision of affordable space across the UK.

Financing and Delivery/Procurement

Acme was allocated £2 million from Arts Council England’s Grant for the arts - capital programme. Acme drew on a proportion of this funding for its Leven Road project in addition to funds secured through bank borrowing. Fixed construction costs were negotiated for the units which were designed to fixed specifications.

Swan Housing Association covered all the costs of the development i.e. site acquisition, professional and legal fees, and construction costs. Acme paid Swan the cost of creating the ground floor studios i.e. external and internal walls and fit-out, within the frame built to support the apartments on the upper floors.

Measurement and Monitoring

• Continuing level of studio occupation
• Regular review of studio design specifications to ensure studio spaces continue to meet artists’ needs and practices.

Publications

Acme Studios Case Study – Leven Road pdf (November 2008)

Acme Studios Press Release, Artists occupy ground floor of new mixed-use development, 23rd March 2009

Acme Studios website: http://www.acme.org.uk/leven.php