A weekly round up of the latest planning and property news from the central London boroughs
City of London
PW reports that the City of London is to become the latest council to consider scrapping office-to-resi conversions through permitted development rights (PDR). The Corporation has announced a consultation to remove PDR.
PW reports LGIM Real Assets has put Procession House, 55 Ludgate Hill on the market for £67.5m. Developed in 1999, the building comprises 105,200 sq ft of office and retail accommodation across an island site, close to Farringdon station. On behalf of its Managed Fund, L&G has appointed Savills to sell the building at yield of 6.15%.
PW reports that tech company Improbable is set to more than double the size of its headquarters signing a leasing deal Bishops Square in the City. Valued at more than $1bn after only five years in business, the firm has exchanged contracts to occupy almost 59,000 sq ft on the fourth floor at JP Morgan’s 10 Bishops Square, next to Spitafields Market. Improbable will move from its current headquarters at 30 Farringdon Road, where it occupies 24,000 sq ft.
PW reports that a UK private investor has bought 16-18 New Bridge Street from a Middle Eastern vendor for just under £20m, reflecting a capital value of £872/sq ft and a yield of 4.59%. It occupies a corner location and totals 22,482 sq ft of office and retail space.
EG reports that Monzo, a challenger bank, is leading a pack of second and third generation start-ups expanding their office take-up in central London. The online banking company is tripling its London take-up in one year, having agreed to sublease 40,000 sq ft from Bloomberg at 38 Finsbury Square, EC2. It will move from its office at 230 City Road, EC1, where occupies 13,000 sq ft. Monzo has agreed to take a two-year-lease, paying circa £34 per sq ft its new HQ.
City of Westminster
PW reports that Plaza Global Real Estate Partners, the joint venture between LaSalle IM and Quantum Global Real Estate, have put 23 Savile Row up for sale for a price believed to be in the region of £300m. Plaza 103,000 sq ft building from D2 in 2012 for £218m for an initial yield of 4.3%. The selling price would reflect a yield of 3.8%.
PW report that CBRE has appointed Hanover Green to sell Eagle House, Jermyn Street at a yield of 4.58% and a capital value of £1,372/sq ft. The 40,077 sq ft building, which is arranged over basement, ground and six upper floors, is held on a long lease with around 104 years left to expiry. It is multi-let to seven tenants and produces an annual income of almost £2.7m, equating to an average office rent of £75/sq ft
PW reports that LBS Properties has secured a £47m senior debt facility from US-based Quadrant Real Estates Advisors to fund a large scheme on Hackney Road. Planning permission for the new development was secured in 2017 which will replace a disused bingo hall at 211-227 Hackney Road with 83 flats as well as 10,000 sq ft of flexible workspace on the ground floor. With the development finance secured, demolishment of the existing build is set to commence imminently and completion is expected in early 2020.