The O2 (London) - Background To Development

Background To Development

The O2 was developed inside the dome structure by Anschutz Entertainment Group to a design by HOK SVE and Buro Happold in a £600 million development.

In December 2001, it was announced that Meridian Delta, Ltd. had been chosen by the government to develop the Dome structure, originally the Millennium Dome, as a sports and entertainment centre, and to develop housing, shops and offices on 150 acres (0.6 km²) of surrounding land. It is also hoped to relocate some of London's tertiary education establishments to the site. Meridian Delta is backed by the American billionaire Philip Anschutz, who has interests in oil, railways, and telecommunications, as well as a string of sports-related investments.

Meridian Delta, a subsidiary of Quintain Estates and Development and Lend Lease, had signed a 999-year lease for the Dome and its surrounding land with the government and English Partnerships, a UK governmental body for national regeneration which was assigned the regeneration of the Greenwich Peninsula. The Dome site was then sub-leased to Anshutz Entertainment Group (AEG), who strongly support Meridian Delta, for a minimum of 58 years. English Partnerships leased the arena directly to AEG Europe for 58 years. AEG would develop and operate The O2 during the length of the lease agreements. The lease agreements were made in the agreement that the government would get a certain percentage of profits through English Partnerships. English Partnerships and Quintain Estates and Development both own land around The O2 on the Greenwich Peninsula. They will release land in stages, to developers, and develop the area in a joint venture with the aid of Meridian Delta. Some of the land is already being developed for offices and shops. The David Beckham Academy football school has already been developed on the Greenwich Peninsula. Some of the land around the dome is being reserved for possible extended developments for The O2, including a hotel, although the building of much of the extended development depends on how much investment can be made by AEG (See below section about possible future developments for details). Ravensbourne College of Design and Communication, a specialist art & design institution currently located in Chislehurst, is having a new campus built immediately adjacent to The O2. This is due for occupation in September 2010. The development of the whole Greenwich Peninsula area is likely to cost 4 billion pounds.

As part of the investment programme, naming rights were sold to O2 plc; and 'The O2' became the official name of the project on 25 May 2005. The £6 million a year deal between O2 plc and AEG also included priority tickets and reserved VIP accommodation for O2 mobile customers. The service was also made available to premium ticket holders. O2 plc started talks with AEG in 2005 to have its logo and branding placed on the roof of the dome, but this has not yet been confirmed. Anschutz Entertainment Group have constantly stated that they wish to abolish its name as 'The Dome' due to its bad reputation as a failed project, being tagged as 'The White Elephant.' Since its opening, there have been signs of the press and public calling it The O2. It is currently the largest entertainment district in London. To mark its opening, AEG spent £6.5 million on a mass advertising campaign, led by VCCP, throughout Europe to promote The O2; they are also partnered with and sponsored by ADT, AOL, NEC, Credit Suisse, InBev UK, BMW, Nestle, Pepsi Max and Vivitar.