A weekly round up of the latest property news from the Central London Boroughs
PW reports that Frogmore has let 17,000 sq ft at Weston House in London’s Midtown to law firm Mishcon de Reya on a 13-year lease, taking the building to full occupancy. The deal for the space on the fourth and fifth floors boosts the law firm’s presence at the building to 56,000 sq ft. The rent was undisclosed, but values achieved at the property range from £62.50 to £74.50 per sq ft. Other tenants include the UK government and digital advertising company Celtra. Farebrother CORFAC International and Edward Charles & Partners are the letting agents for Weston House.
PW reports that Blackstone has sold the Lacon London multi-let office building in the West End to a private investor for £285m. The 220,885 sq ft freehold property at 84 Theobald’s Road was bought by Blackstone Real Estate Partners Europe III in July 2013. Blackstone carried out a refurbishment after the sole lease expired in 2014 and has since let the property to a mix of occupiers including Arriva and Exterion Media. Blackstone was advised by Savills and JLL. The purchaser was advised by CBRE and Dentons.
City of London
PW reports that British Land and GIC have secured planning permission for the refurbishment of a building at the heart of the Broadgate Estate in the City of London. Three Broadgate provides a pedestrian link between Broadgate Circle and Finsbury Avenue Square. It was built in 1987 to serve as the estate’s marketing suite. Architecture firm Orms has designed plans which will see a three-storey arch created in the facade, a coffee kiosk installed, and wider entry points created to improve links with the surrounding estate. The refurbishment work is due to start on site at the end of this year and be completed by the end of 2018.
EG reports that the world’s largest inter dealer has committed to a new City of London HQ at British Land and GIC’s 135 Bishopsgate, EC2. TP ICAP has placed 120,000 sq ft under offer at the former RBS offices, which will undergo an extensive refurbishment prior to the company moving in. Advised by JLL the firm will pay around £55 per sq ft for the new HQ. The deal will see TP ICAP retained in British Land and GIC’s Broadgate Estate, as it moves from 155 Bishopsgate EC2, where it occupies 65,000 sq ft on a lease expiring in 2020.
Hammersmith & Fulham
PW reports that the team behind Pergola on the Roof will open a new pop-up canteen at the King’s Mall Shopping Centre in Hammersmith, after signing a deal with landlord Schroder UK Real Estate Fund (SREF). Feast Canteen is the latest dining concept from Incipio Group, the company behind the Pergola on the Roof leisure brand which began as a pop-up at Stanhope’s Television Centre scheme, White City in summer 2016 and has recently signed a two-year lease at British Land’s Paddington Central. Feast Canteen will operate a new 7,500 sq ft food court at King’s Mall, in addition to taking an additional 4,100 sq ft of back of house space. Operators within the food court will include Breddos Tacos, burger operator Patty & Bun, pizza restaurant Born and Raised and Salvation Noodles. SREF acquired the 340,000 sq ft centre in 2015 for £153m as part of a portfolio of assets in Hammersmith.
PW reports that Ærium, the European real estate fund manager, has secured a £66m refinancing with Deutsche Bank on Herbal House, an office and residential redevelopment in Clerkenwell, London. As well as refinancing the existing loan, the facility will be used to complete the development until it is fully let. The 1920s former warehouse has been re-designed to deliver a 115,000 sq ft asset comprising over 100,000 sq ft of office space, spread across ten floors.
Kensington & Chelsea
PW reports that the Sloane Stanley Estate has struck a deal with Benjamin Moore which will see the US designer paint brand open its debut London showroom at 263 Fulham Road. The 1,300 sq ft flagship store is set to open later this month and will stock the brand’s range of premium paints, which are available in more than 3,500 shades. Founded in 1883, Benjamin Moore has been available to UK buyers online since September 2015. Miles Commercial and Shackleton represented Sloane Stanley.
PW reports that the Boutique Workplace Company has announced its plans for a new serviced office building at Notcutt House in Southwark – its second building south of the river. The 18,000 sq ft renovated warehouse 36 Southwark Bridge Road will be available for occupation from October and is the serviced office provider’s 28th location in total. Notcutt House has been refurbished to combine original Edwardian features with design-led office space including a membership lounge, meeting rooms, break-out areas, fully equipped kitchens, networking events, full audio visual equipment and state-of-the-art sound system. It will also be listed as the provider’s fifth central London event space, alongside venues in Kings Cross, Old Street, Clerkenwell and Shoreditch.
PW reports that Southwark Council’s head of housing Gerri Scott is leaving the local authority at the end of the year. Scott, who is currently strategic director of housing and modernisation, has been at the council for nearly seven years. “After nearly 30 years in public service, it’s time to get back to my creative roots,” she said. “I have ambitions beyond local government that I would like to fulfil, including a long held dream of setting up my own business.”
PW reports that ITV has submitted plans for a new 300,000 sq ft global headquarters on London’s South Bank. The company has submitted its planning application to Lambeth council for the new development on its existing site, which will bring ITV’s London employees together under one roof for the first time. The company has spent four years reviewing more than 30 potential sites for a new London HQ, but concluded the existing site best meets its future needs. The broadcaster hopes to start construction in 2019.
PW reports that Techspace. the workspace provider for technology businesses, is set to open a new coworking space in Shoreditch. The 20,000 sq ft building is located on Luke Street, and includes a 2,000 sq ft double-height event space and 354 workstations.
Techspace operates an “occupational exclusivity” policy, whereby only high-growth technology companies are eligible to become members. Companies who join the Luke Street space will be part of a scale-up community at Techspace that includes Business Insider, Memrise, Hibob and Goodlord. This is the sixth coworking space that Techspace has opened in London.
PW reports that Big four accounting firm KPMG has put its London headquarters at 15 Canada Square in Canary Wharf on the market in a sale-and-leaseback deal. It has appointed JLL to find a buyer for the 434,261 sq ft building, which is likely to fetch more than £400m. KPMG will sign a 25-year lease on the 14-storey building with CPI-linked reviews every five years for an initial rent of £42/sq ft.
PW reports that Norges Bank Real Estate Management has expanded its partnership with The Crown Estate by acquiring an additional 25% interest in 20 Air Street in London for £112.5m. The deal brings Norges total ownership of the £450m-valued property up to 50%, with The Crown Estate retaining the other 50% share and continuing to manage the property on behalf of the partnership. Norges acquired its initial interest in December 2013. Occupied by blue-chip tenants including Twitter, Taylor Wimpey and Meyer Bergman, 20 Air Street comprises 270,000 sq ft of office and retail space, and nine residential units.
EG reports that Jeweller Boodles has had its rent almost doubled at its 178 New Bond Street, W1, flagship following a rent review. The new rent at the 1,109 sq ft shop is around 30% less than landlord KK Assets had been seeking however. The proposed rise was contested and the case went to arbitration. The new rent was set at £1.9m pa, which equates to £2,100 per sq ft zone A. Although a substantial rise, it is still below the record rent on the street, where Ralph Lauren pays £2,225 zone A.
PW reports that Occupiers have taken half a million sq ft of office space in London’s West End for two consecutive months for the first time since April 2000, according to Savills. Take up reached 513,691 sq ft in July 2017, which followed June’s take-up of 760,026 sq ft. Savills recorded 43 office deals in July, taking West End take-up for the year-to-date to 2.9m sq ft, 33% above the same point in 2016 and 37% above the long term average. The agency said smaller deals have dominated the market this year, with 76% of transactions on spaces below 10,000 sq ft. Just 1% of transactions have been on spaces over 100,000 sq ft. However, these deals have accounted for 23% of take-up so far in 2017.