This week in Central London – 10/09/2015
In the City, the Barbican and Golden Lane Area Strategy was approved. An update on the 2008 strategy, it identifies the current issues and pressures for change, including Crossrail, Museum of London and London Wall Place.
The largest item in Westminster this week was an office to residential conversion at 14 Great Peter Street, which was approved. An application by Honest Burgers for a basement restaurant on Meard Street was refused however, with members agreeing to their Officers recommendation. The Committee paper provides an interesting summary of the pressures in the West End Stress Area and action taken by restaurants through apps such as Qudini to try and minimise disruption to residents.
In Islington, there was only one item on the Agenda and Islington Council itself was the applicant. The Council sought permission for the demolition of a series of buildings on the Redbrick Estate, which in part fronts onto Old Street, and their replacement with 55 new dwellings, a community centre and retail units. The scheme was approved by Members, subject to conditions as laid out in Appendix 1 of the report available below.
In the news, the rising demand for office space in Hammersmith is demonstrated with three buildings coming to market with a combined vaule of over £250m, In Lambeth Pocket has acquired contracts to acquire three sites to delver homes for first-time buyers whilst in Tower Hamlets Chinese conglomerate HNA Investment Holdings has exchanged contracts to purchase 30 South Colonnade for £215m, a 5.5% yield. More on these and other central London property news stories at the bottom of the newsletter
Camden
Property Week reports that Universal Music is close to signing a deal to take the whole of the 174,570 sq ft 4 Pancras Square. The 10-storey building is believed to have an asking rent in the mid £70s/sq ft. Savills and DTZ advised Argent. CBRE advised Universal – September 4th 2015
Property Week reports that Evans Randall is set to buy a Midtown office block in a deal close to £45m. They have placed 90 Fetter Lane under offer from German closed-ended fund Blue Capital Europa Immobilien GmbH. Blue Capital has held the 58,000 sq ft asset for 10 years having paid Great Portland Estates £37.33m for it in 2005. DTZ advised Blue Capital.
City of London
Property Week reported that three City offices are set to come to market in September, with a combined value of around £350m. German closed-ended fund HH Global Invest is said to be assessing its options on two of its holdings, 100 New Bridge Street and Friary Court, while US investor Cornerstone Real Estate is set to put 40 Gracechurch Street for sale at a guide price of around £140m.
City of Westminster
Property Week reports that Blackstone have instructed Savills and Cushman & Wakefield to sell 9 Clifford Street. The 13,398 sq ft office is a Grade II listed building.
EG reports that the Reuben Brothers have submitted plans for a redevelopment of Millbank Tower. It is proposed that the height of the tower be increased by 50 ft to a height of 440 ft, incorporating three new floors. It will house 215 one-to-four bedroom flats in a John McAslan + Partners designed scheme.
EG reports that King Digital has leased the entire 64,000 sq ft Ampersand building. The office was recently completed by Resolution Property on behalf of Hong Kong’s Peterson HK. DTZ and Hanover Green were letting agents for Ampersand; JLL acted for King Digital.
EG and PW both reported that Facebook has entered an exclusivity period to let the entire 217,000 sq ft office element of Great Portland Estate’s 414,000 sq ft 1 Rathbone Place. Facebook is expected to occupy the offices on completion in 2017. DTZ is acting for Facebook; Colliers International and Knight Frank advised GPE.
Land Securities have instructed agents to offer five-year leasing deals at Portland House. The 307,000 sq ft tower has consent for residential conversion but LandSec is reported by EG to have postponed the scheme. CBRE and Tukerman are joint letting agents.
Hammersmith and Fulham
Property Week reports that two offices are coming to market in Hammersmith. Goodman and Legal & General’s joint venture, Arlington Business Parks Partnership (ABPP), is on the cusp of bringing its Hammersmith Embankment scheme to the market for in excess of £100m. The 190,000 sq ft office block is likely to be marketed in the coming weeks, with Strutt & Parker the frontrunner to be appointed to sell. Westerland Real Estate is weighing up the potential sale of 184 Shepherd’s Bush Road after completing its redevelopment and pre-letting the entire 115,000 sq ft to Dunnhumby. Agents are yet to be appointed but it is said that the building would reach £80m. This follows the news from CoStar News previously (see below) that the Metro Building is coming to market.
The Evening Standard reports that Stone Real Estate, headed by former Candy & Candy director, Simon Stone, has purchased Riverview House, W6, for a reported £20m.
Property Week reported that NBK has purchased the 10,000 sq ft Griffin House on Hammersmith Road for just over £75m, equating to a yield of 5.46%. Virgin Media is the anchor tenant, signing a new 10-year lease on its 44,200 sq ft of space in March this year at an improved rent of £45/sq ft. Other tenants in the building include Warner Chappell Music, ReachLocal and St Mungo’s. Savills advised LaSalle. Strutt & Parker represented NBK.
CoStar News reports that M&G Real Estate is preparing to bring the Metro Building, 1 Butterwick, to market for £60m. Strutt & Parker are said to have been appointed to market the 110,000 sq ft building. The building is multilet, with an average rent of £36/sq ft.
Islington
Property Week reports that home design website Houzz is under offer to take the whole of the Pivotal building at 123 Pentonville Road (Property Week).
Lambeth
Affordable housing developer Pocket has exchanged contracts to acquire four sites to deliver 137 homes for first-time buyers – three of which are in Lambeth. The £60m deal will see homes for sale in mid-2016 on Juxon Street, Sail Street and Mount Earl Gardens (Property Week).
Tower Hamlets
Chinese conglomerate HNA Investment Holdings has exchanged contracts to purchase the Canary Wharf HQ of news provider Thomson Reuters. The £215m deal for 30 South Colonnade, E14, saw German fund KanAm Grund enjoy a 5.5% yield (Estates Gazette).
