City of London

Building Design reports that the City of London could play a co-ordinating role for the whole of the capital under a new building safety regime that is due to be implemented later this year. The authority is set to host a “hub” for the new Building Safety Regulator which will become responsible for all “high-risk” developments, defined as those which are 18 meters or taller or have seven or more storeys. Under provisions set out in the Building Safety Act 2022, applications for building regulation consent will go directly to the BSR rather than local authorities or private approvers.

City of London Mayor Nicholas Lyons is expected to express the Square Mile’s commitment to supporting levelling-up across the capital and the UK in a speech at the London Government dinner tonight. The Lord Mayor’s speech states that London “has been cast as the villain in our national story” for too long, and emphasises that he will ensure that the City remains focused on “driving investment and growth for the whole UK”. He is also expected to argue that it is imperative not to leave London behind in the drive to level up, highlighting the City of London Corporation’s anticipated creation of around 2,700 jobs in Dagenham Dock. He will also highlight a proposed private sector UK growth fund of at least £50 billion to invest in long-term asset classes.

City of Westminster

Church Street residents have voted in favour of regeneration proposals which would see 156 new council homes built across three sites in the area. In a ballot held by Westminster City Council, 73% of residents voted in support of the plans, which would also see the re-provision of all 228 existing council homes in the neighbourhood alongside new community, shopping and employment opportunities. Westminster City Council can now bid for funding from the Greater London Authority (GLA) to ensure the delivery of the scheme.

The Hampstead and Highgate Express reports that Westminster City Council has begun work to build 21 homes on a carpark in Maida Vale despite resident fears that the land might be contaminated. The council’s own report revealed toxic substances in the ground, and residents are now angry at WCC’s failure to disclose new soil test results. The housing scheme on the Torridon estate was approved by the then Conservative-led council in 2020, and contractor Osborne began drilling on January 4^th this year despite protests from. Neighbours including the Naima Jewish Preparatory School in Andover Place. Cabinet Member for Planning and Maida Vale ward councillor Geoff Barralough suggested an independent survey to allay fears, but no independent investigation has been carried out to date.

Westminster City Council is currently consulting on a permanent alfresco scheme on Warwick Way and Churton Street in Pimlico. The consultation, which began on the 15^th of December, is running for 8 weeks to allow residents to provide feedback on the proposals which include the extension of footways and planting and provision of improved lighting, drainage and cycling facilities. Westminster City Council hope that the scheme will help rejuvenate the high street and grow the local economy. The scheme has already received support from the Pimlico Neighbourhood Forum (PNF)and the Federation of Pimlico Residents’ Associations (FREDA). The consultation is due to close on the 9^th of February 2023.

Hackney

The Architect’s Journal reports that developers Edge and Mitsui Fudosan have appointed architects Allford Hall Monaghan Morris (AHMM) to design a six to 21-storey office block in Shoreditch. Permission was granted in 2021 to then-owners London Stock Exchange and Make architects to build a 21-storey tower at the site near Finsbury Square which is bound by Wilson Street, Christopher Street and Earl Street. According to pre-application documents written by Hackney Council, AHMM’s new scheme features around 40,000 sqm of office space alongside ground-floor retail space. It would also involve the demolition of Technico House and the London Stock Exchange Building, a move which was in approved in the existing permission. A detailed planning application is expected to be submitted to Hackney Council in the next two months.

Islington

Property Week reports that Energize Games has chosen Islington Square for the UK launch of its new concept gaming arena. The leisure brand is reported to have signed a 10-year lease for a 7,800 sqft space at Cain International’s mixed-use flagship development as it tests its new concept with the public. The company, which grew out of founder Stefan Vargolici’s Breakin’ Escape Rooms business, is set to roll out the concept across the UK if the Islington Square launch proves successful. Neil Barber, retail leasing director at Cain International said that Energize Games will compliment Islington Square’s offer “to provide special experiences for our guests”, joining gaming arenas such as New Meta which launched in August 2022.

Lambeth

EG reports that Lambeth Council and its development partner London Square have launched a public consultation on plans to redevelop Brixton town centre. The headline plan for the scheme is a proposal to redevelop 49 Brixton Station Road in a move that would provide more than 200 homes and 83,000 sqft of workspace on the site currently occupied by Pop Brixton. Other key proposals in the council’s draft site allocations include the provision of between 120-170 residential units at the Tesco site on Acre Lane and a mixed-use development of replacement community facilities, workspace and housing on Effra Road. The draft plan also proposes to redevelop 330-336 Brixton Road to provide improved accommodation for existing users and create new housing whilst retaining existing light industrial workspace. Consultation on the draft plans is now open and is set to close on 22^nd February 2023.

Royal Borough of Kensington and Chelsea

EG reports that luxury trade association Walpole has signed a lease with Cadogan Estates for a new headquarters at 2 Cadogan Gate, SW1. The business association, which represents more than 250 luxury UK brands, will occupy a 1,500 sqft space in the three-story townhouse just off Sloane Square in the heart of Chelsea. The office will be the brand’s first standalone headquarters and will also feature a dedicated members’ lounge and events space.

Southwark

EG reports that climate consultancy the Carbon Trust has signed to move its global headquarters to Bankside Yards, Native Land’s mixed-use development at the city intersection of the South Bank. The consultancy, which helps major corporations and governments work towards Net Zero, is reported to have signed a 10-year lease for a 13,800 sqft office space in the Arbor building at the site, which is hailed as the UK’s first fossil-fuel free major mixed-use development. The 1.4 million sqft, £2.5 billion development began construction in late 2020, with the 19-storey 223,000 sqft Arbor building completed in 2022.

Tower Hamlets

Building Design reports that Tower Hamlets Council has approved plans for Global Switch’s new seven-storey data centre despite heritage concerns around its impact on Grimshaw’s FT plant. Both Historic England and the Greater London Authority advised that the new development could damage the grade II* listed former Financial Times Printworks designed by Nicholas Grimshaw in the 1980s, but members of Tower Hamlets’ strategic planning committee voted to approve the scheme on Tuesday night after borough planning officers said that the benefits of the scheme outweighed the “less than substantial” harm it could cause. The building is currently owned by Global Switch after being converted into a data centre in the late 1990s, and new proposals would see a new data centre with an additional 27,000 sqm of floorspace built on the carpark to the south of the building.

General

The FT reports that UK commercial property dealmaking is at its lowest level in over a decade. Prices are reported to have fallen by more than 15% since summer as the sector reckons with higher interest rates, the prospect of a lengthy recession and the fallout from Liz Truss’s “mini” Budget in September. The £7 billion of deals transacted in the final quarter of 2022 marks the lowest quarterly total since 2010, according to real estate analysts CoStar. Investment in UK commercial property was also dramatically down from the first three months of 2022, with just £11 billion spent in the final quarter compared with £21 billion in the first.

Property Week reports that Great Portland Estates (GPE) has beaten its annual leasing record after just nine months of the financial year. In a leasing update for the final quarter of 2022, GPR told investors that it had agreed its largest ever letting at 2 Aldermanbury Square in the City of London, alongside 29 new leases generating an annual rent of £34.3 million. The London-based developer has now signed 629,100 sqft of new lettings since the start of the financial year in April, delivering a combined annual rent of £50.9 million. Chief Executive Tom Coutauld said that “With robust demand for the best spaces in central London, we remain confident in the attractions of our highly sustainable, flexible, tech-enabled spaces in a market where high-quality product is increasingly scarce.”

The Evening Standard reports that City and West End lettings totalled around 10 million sqft last year, 23% ahead of 2021 levels. In an encouraging start to 2023, property agent JLL have also found that around 3.1 million sqft of office space was under offer across central London at the end of last month, suggesting solid demand as tenants keen to leave their old headquarters seek modern spaces with stronger environmental credentials. The figure comes after many industry insiders forecasted wide scale downsizing in office property portfolios as tenants adjust to a post-pandemic climate of hybrid working.

EG reports that Montagu Evans has reported a 22% uptick in its revenue for the latest financial year. The property consultancy’s earnings grew to £64.1 million in the year ending March 2022, a development which the firm attributed to senior hiring in strategic growth areas and one-off costs incurred by moving headquarters in the previous financial year. Managing parter Rob Bower said that the company will be focusing on “major projects at the Royal Albert Dock, at Stansted and in Shepherds Bush” in the upcoming year as it continues to support its clients in navigating changing financial markets.

Gerald Eve has reported record increases in turnover for the latest financial year, terming the year ending April 2022 the best-performing in its history. The property advisory firm’s turnover rose by around 27% to £96.1 million from the previous financial year, with operating profit up 51%  to £29.5 million. Gerald Eve said that confidence in the business was driving further recruitment, alongside continued investment in areas such as aviation, infrastructure and sustainability.