Camden 

EG reports that Camden Council has granted planning permission for a £5oo million extension at a meeting earlier this week. The proposals will see Long & Kentish’s 16-year-old conservation centre demolished to make way for a 12-storey office-led scheme next to the Francis Crick institute. The two new blocks to the north of the existing building will create a new home for the Alan Turing Institute, 10,000 sqm of library facilities on the lower floors and 72,000 sqm of office space on the upper floors. Camden Council’s decision was anticipated after the borough’s planning officers recommended the proposals for approval last week.

The Architect’s Journal reports that the Chancellor Jeremy Hunt has denied reports claiming that the proposed HS2 terminal at London Euston could be mothballed. The Sun had initially reported that HS2 trains would stop at Old Oak Common more than 5 miles west of the London terminus, but Hunt confirmed on Friday that the line would terminate at Euston as initially planned. Architects Grimshaw are leading the design for the Euston terminus, and unveiled changes to their plans late last year with the reduction of 11 platforms to 10 to ensure construction could take place in one go.

City of London

Property Week reports that developer Atenor has been given the green light for a sustainable retrofit of Fleet House. The City’s planning sub-committee unanimously granted permission for the scheme, which will provide around 77,500 sqft of office space across eight storeys. The design by architects HOK will retain more than two thirds of the building’s existing structure and embodied carbon, and is targeting a BREEAM “Outstanding” with “Excellent” as a minimum. Alongside office space, the retrofit will provide a café, pub, art wall, cycle storage and four terraces with views of St Pauls.

Property Week reports that Landsec has sold One New Street Square to Hong Kong developer Chinachem Group for £249.5 million. The 276,502 sqft office development is currently used as Deloitte’s London HQ and is let at an annual rent of £16.8 million with 14 years remaining on the lease. The sale price comes after a September 2022 valuation which set the building’s value at £362.8 million and crystalises a total return on capital averaging 10% per annum since Landsec acquired the site in June 2005 and redeveloped it in 2016. Landsec announced plans to sell around £2.5 billion of mature London offices following a review in late 2020. Donald Choi, CEO of Chinachem Group, said the company intended to hold the property for long-term investment as it seeks to grow it s presence in Lonfon and other major cities.

The City Corporation has confirmed from Monday, 13 February, Queen Victoria Street will close permanently to motor vehicles where it meets Bank Junction. Meanwhile, a temporary one-way system will be introduced westbound in Mansion House Street, with a diversion route in place for eastbound traffic, including cycles. The work marks the next phase of All Change At Bank, a City of London Corporation scheme timed to coincide with Transport for London’s Bank station upgrade.

City of Westminster

City A.M. reports that Covent Garden owner Capco has reported strong rental demand as it prepares for a £3.5 billion merger with Shaftesbury. The landlord announced on Monday that it had secured 72 leases in the West End for a total of £10 million in 2022, 13% higher that 2021 figures. Capco’s merger with rival Shaftesbury to bring together the vast majority of the West End under a new company, Shaftesbury Capital, is now set to be completed in the first quarter of 2023 subject to clearance by the Competition and Markets Authority.

Property Week reports that Grosvenor has signed the first tenant for its 65 Davies Street development in Mayfair. The landlord has let 22,947 sqft at the 65,000 sqft site directly above the Elizabeth Line Bond Street station to asset management firm Hayfin. The move comes after Grosvenor’s announcement that it has pre-let over 50% of its on-site developments as it works with partners to invest £1.3 billion in 14 major projects  across Mayfair and Belgravia in the next 10 years, The Davies Street building, designed by PLP Architecture, is expected to be completed in autumn this year.

Property Week reports that two-thirds of Landsec’s n2 development in Victoria is now pre-let after a trio of deals. The developer has pre-let a further six floors totalling around 60,000 sqft.of the landmark development designed by Lynch Architects. Qube Research & Technologies (QRT) has now signed for a 12,000 sqft floor in addition to the 40,000 sqft it pre-let in May 2022, whilst three floors totalling 26,000 sqft have also been let to an undisclosed global investment firm. The development is expected to be completed in the second quarter of this year and will contain a total of 161,000 sqft of office space across 17 floors.

Hammersmith & Fulham

Property Week reports that co-working specialist Spacemade has signed a deal to open a new site in Fulham with CBRE Investment Management. The 10,000 sqft Fulham Broadway development will re-purpose a former Wetherspoons pub and have capacity for 150 members. Louise Butters, head of UK retail assets at CBRE said the scheme represented “part of a long-term strategy for the destination.” Launched in 2019, Spacemade operates 100,000 sq ft of flexible office space across 14 UK sites, with a further 100,000 sq ft in the pipeline.

Lambeth

Property Week reports that the public inquiry into the proposed redevelopment of ITV’s former South Bank studios has now closed. CO-RE and Mitsubishi Estates are proposing a mixed-use redevelopment of 60-72 Upper Ground comprising offices, cultural space and retail uses, but their plans have faced strong criticism from community groups during the consultation process. Coin Street Community Builders (CSCB) have said the proposals would “destroy the special character of the South Bank”, with community director David Hopkins stating that the scheme would prevent a “once-in-a-lifetime opportunity” to create housing on the brownfield site and contribute to government homes quotas. The Inspector’s report is expected to go to the secretary of state in the spring with a decision on the development due this summer.

Southwark

Property Week reports that developer Tailored Living Solutions has secured a £41.5 million loan for its 65,000 sqft Great Suffolk Yard development. Lenders OakNorth Bank and ASK provided the loan, which will be used to refinance an existing loan on the three -uilding office space project. Joshua Weinstein, head of institutional markets at ASK, said that the “flight to quality” in office space choice was apparent and that Great Suffolk Yard “ticks all the boxes” as businesses seek to lower energy bills, future-proof their move and attract staff. Tailored Living Solutions was founded in 2012 and specialises in creating bespoke new-build homes and commercial co-working spaces across London.

BBC reports that the owners of four luxury flats overlooked by the Tate Modern in London have won a privacy bid over the use of the gallery’s viewing platform. The Neo Bankside residents took legal action over the “hundreds of thousands of visitors” looking into their homes. In February 2020, the Court of Appeal dismissed their claim, saying they should “lower their solar blinds”.But the Supreme Court overturned the decision on Wednesday following a hearing in December 2021.

Tower Hamlets

The Architect’s Journal reports that plans for South Dock Footbridge in Canary Wharf has finally won planning permission after an “extensive” application process. The council-back project began design work in 2015 and submitted a planning application in 2021, but has undergone prolonged and “collaborative” planning negotiations with officers. The bridge, designed by Knight Architects with Arcadis and KGAL, features two 35m long steel beams linked to a central pier and will be the second pedestrian crossing over the waterway. Planners stated that the area needs a second footbridge due to plans to build an additional 29,000 homes locally and create 11,000 new jobs. The project has been allocated £20 million in council funding thus far with an earlier schedule suggesting the bridge could open in 2024, although it is unclear if this estimate remains.

General

EG reports that office take-up in central London reached 10.47 million sqft last year, 10% above the five year average and 20% higher than 2021. A study by Cushman & Wakefield found that leasing deals in the heart of the capital exceeded expectations, with the banking and professional services sectors primarily driving the increase. Ben Cullen, head of UK offices at the firm, told EG that “the bifurcation of the London office market is at its most acute since before the global financial crisis. The appetite for the best office space is incredibly fierce, but occupier demands and expectations for their office space are also deepening”. Cullen identified location, flexibility and sustainability as the most sought-after factors in choosing office real estate in 2023.

Savills reports that 2022 marked a record year for London’s £5 million plus property market. The consultancy found that transactions exceeded 600 for the first time since its records began in 2006. The total value of all 5 million plus transactions was £6.57 billion, and value is expected to remain high with 13.5% price growth in prime central London real estate forecasted over the next five years to 2027