Sports and entertainment giant AEG, which owns London’s O2 Arena, is planning on building a 36-storey residential tower next to the venue, it has emerged.

UK newspaper The Times reports that AEG has been granted permission for the project, which would result in the development of more than 260 homes.

The O2 is one of AEG’s flagship venues and last year it was reported that the venue has made a combined net profit of $203.7m (£157m/€179m) since it was acquired by the conglomerate in 2002.

The facility was opened as a theme park to celebrate the new millennium but after it failed to live up to expectations it was sold to AEG, which turned the site into a 21,000-seat entertainment venue.

The O2 has hosted the ATP Finals, the season-ending showpiece of the men’s tennis season, since 2009. It also stages a range of music events throughout the year.

The Times said that AEG plans on incorporating shops and restaurants on to the ground floor of the proposed residential tower.

AEG also owns a range of arenas around the world and in its home market of the United States. It also has a stake in various sports franchises, including the Los Angeles Kings and Los Angeles Galaxy.

Image: Brostad