This new digest has been prepared on behalf of London Property Alliance by Concilio communications consultancy as part of a service agreement to provide information for our members.

Camden

OnOffice reports that Hootsuite re-imagines London office at LABS 90 High Holborn for future of work. The social media management platform’s London office makes a statement with its bold new office design. Social media management platform Hootsuite has unveiled the opening of its 8,390 sq ft re-imagined office ‘London Nest’ which is located on the sixth floor of LABS 90 High Holborn, a landmark building located in London’s Knowledge Quarter. Alongside leading flexible workspace providers, LABS, Hootsuite’s redesigned Holborn-based office space puts workforce preferences, employee wellbeing and the future of work front of mind. To complete the revamp of its London space, Hootsuite conducted an internal survey about what its employees, who are also referred to as ‘Owls’ at the company, wanted in their workspace. The survey found that 62% of its 105 London Owls would prefer to go into the office 1-3 days a week and 30% would prefer to head in just a couple times a month.

City of London

The Evening Standard reports that exclusive data reveals the record average property price now commanded by homes in the Barbican ahead of a planned £150m overhaul of the performing arts centre. The price of a flat in the Barbican Estate, the Brutalist concrete jungle of around 2,000 homes in the City of London, has breached the £1 million mark for the first time. According to data by Savills the average sale price of properties in the 1960s landmark hit £1.016 million during 2021, up from an average of £905,000 in 2019. This represents a jump of 12 per cent. Ten years ago, you would have paid just over £550,000 to live in EC2Y, while back in 2001 you could have picked up a home for less than £260,000. Jack Downes, head of sales at Hamptons, said that the pandemic has been a real game of two halves for the Barbican. In its first year a glut of properties and a lack of buyers meant the market flatlined. “But since the easing of Covid-19 restrictions there has been a really big surge of pent up demand,” he said. “We are the busiest we have been in five or six years.”

Property Week reports that The China Investment Corporation (CIC) is considering putting Winchester House on the market for between £275m and £300m, Property Week understands. The 312,000 sq ft office building on 1 Great Winchester Street in the City of London is currently let to Deutsche Bank until 2023 – after which the bank is set to move to a new HQ at 21 Moorfields. Senior sources in the market have said they expect the building to hit the market soon with some saying they are already receiving interest from potential buyers. Invesco, which asset manages the building on behalf of the CIC, has yet to appoint an agency to market the building, though it is understood that JLL is the frontrunner. All parties declined to comment on the potential sale. The news comes as property experts say Chinese investors are exiting the UK property market to repatriate capital and pay down debts in the wake of the ongoing fallout from the Evergrande crisis. Andrew Hawkins, international partner at Cushman & Wakefield, said earlier this month: “In terms of why Chinese investors are exiting positions, not just in London but across the world, it is partly related to capital controls and what’s been going on with Evergrande.”

Property Week reports that Law firms are at the front of the queue for best-in-class offices as competition for talent leads to record demand for super-prime sustainable space, according to new research from Knight Frank. The report reveals that take-up of office space by law firms in central London reached 1.1m sq ft in 2021, a 51% rise on 2020 and an 85% rise compared with 2019’s pre-pandemic figures. Law firms also made up 27% of all space taken in the City of London in 2021 and represented around 12% of take-up in central London. Knight Frank said the level of take-up was the highest for the sector in the last five years and the trend is set to continue, with law firms actively seeking more than 658,000 sq ft of space in central London, with at least 410,000 sq ft of space currently under offer. Key deals in 2021 included Los Angeles-headquartered firm Latham & Watkins’ 250,000 sq ft pre-let at 1 Leadenhall, Allen & Overy’s 270,951 sq ft pre-let at 1 & 2 Broadgate, and Travers Smith’s 160,000 sq ft pre-let at Stonecutter Court.

Hackney

Property Week reports that Bishopsgate Goodsyard Regeneration, the joint venture between Ballymore and Hammerson, has completed the Section 106 agreement on its 1.7m sq ft mixed-use regeneration area in Shoreditch. The agreement formalises the planning consent, received in late 2020, for the Bishopsgate site and was approved by the London Borough of Tower Hamlets, the London Borough of Hackney, Network Rail, Transport for London (TfL) and the Greater London Authority (GLA). It represents the final stages of the planning process and allows the joint venture to begin the next phase of development, which will include preparing the detailed design, undertaking site-enabling works and working with Network Rail on a delivery and phasing plan, with the first phase of construction anticipated to begin in 2024. The planning consent also secures 50% affordable housing for the scheme, as well as affordable workspace in Hackney at a 60% discount and retail space. On completion, the development will comprise 10 acres of residential, office, retail and cultural arts space alongside pedestrianised streets, and a public park on top of the restored historic railway arches that will provide a series of connected gardens, terraces and walkways.

Hammersmith & Fulham

City A.M reports that Government funnels £3m in Hammersmith Bridge restoration works. The UK Government will invest around £3m to carry out restoration works on Hammersmith Bridge, transport secretary Grant Shapps said this morning. “Almost £3 million will be invested by the government into vital works on Hammersmith Bridge,” Shapps tweeted. “This takes our total investment to nearly £7m, and will mean the bridge remains open to pedestrians, cyclists and river traffic. Further works will be carried out to fully re-open the structure.” The government’s investment, which will cover a third of the project’s total costs, comes after ministers approved a business case presented by the borough of Hammersmith and Fulham. “Following an enormous amount of work by engineers, government, the London Borough of Hammersmith and Fulham and TfL, I can confirm we will be injecting millions of pounds into its restoration, so it stays open to pedestrians, cyclists and river traffic,” added roads minister Baroness Vere.

Islington

Building Design reports that AHMM eyes radical makeover of Islington landmark. Campaigners sound alarm over proposals for Rock Townsend’s postmodern 1980s Angel Square scheme. The practice’s plans for Tishman Speyer would see the landmark 1980s development’s Italianate campanile-style clock tower removed, along with the structure’s brick facades, for a glass-focused makeover. The development is a stone’s throw from 1980s office block the Angel Building, the redevelopment of which saw AHMM shortlisted for the Stirling Prize in 2011. Angel Square’s current three blocks provide 14,549sq m of office space and a pub, on the corner of Torrens Street and City Road. The building also includes the entrance to Angel Station on London Underground’s Northern Line. AHMM’s proposals would reconfigure the buildings, the highest of which is six storeys, to deliver 21,701sq m of new office space, 255sq m of new retail space, and retain the pub. Work would include adding two extra storeys to the building and infilling the existing courtyard at the centre of Angel Square. Documents submitted to Islington council said no work to the Underground station was proposed as part of the application, however they said discussions were under way over potential upgrades to the appearance of the station.

Kensington & Chelsea

The Evening Standard reports that Roman Abramovich’s ‘right-hand man’ bids to turn crumbling Kensington hotel into luxury flats. Russian billionaire David Davidovich wants to turn a dilapidated budget hotel in Kensington into seven luxury flats. A close associate of the sanctioned Russian oligarch Roman Abramovich is trying to turn a dilapidated ex-hotel in the heart of Kensington into luxury flats. David Davidovich, described by Forbes as Abramovich’s “right hand man”, is seeking permission from the Royal Borough of Kensington and Chelsea to build the seven-flat scheme off Kensington High Street. The Russian-born billionaire is not on any sanctions list but has been in the spotlight following reports Ambramovich transferred ownership of one of his investment firms to him on the day Russia invaded Ukraine. Davidovich’s development plans come as other Russian billionaires — including Ambramovich — are starting to sell off London assets, or pull out of property deals in the capital amid fears they will be caught up in sanctions.

Lambeth

Southwark

Property Week reports that Avanton is planning build to rent projects valued at around £1bn in London’s Old Kent Road and Wembley under its A:Living brand. The two developments will provide 800 units, complete with amenities for tenants including hotel style concierge, gymnasium and work-from-home business centre. On Old Kent Road in South East London, Avanton’s £730m gross development value (GDV) Ruby Triangle project will provide 700 BTR units with sports hall and gymnasium for tenants. In Wembley, Avanton is planning a £250m GDV Stonebridge Place development will provide around 100 BTR units complete with boxing gym, café and landscaped gardens. Omer Weinberger, chief executive of Avanton, said: “London’s BTR sector is rapidly growing in size, quality and product range and last year Avanton announced a three year expansion into this sector, seeking land and strategic opportunities to deliver high-quality purpose-built stock to meet the market demand. “Our successful launch of A:Living is an exciting step, with our pipeline developments set to further deliver a diverse portfolio of build-to-rent units for young Londoners to choose from.”

London News Online reports that Southwark town hall raked in £6million while trade plummeted in low traffic neighbourhood schemes. Town hall leaders have been told to scrap a low-traffic zone after it made over £5 million from cameras in just one year, according to a new document. Southwark council revealed it earned £5,114,137 from fines handed out to motorists who drove into Dulwich traffic zones between 2021 and 2022, in answer to a question by Southwark Liberal Democrats on March 23. The authority also made £1,650,641 from low-traffic neighbourhoods (LTNs) in Walworth between March 29, 2021 and March 13, 2022. A further £361,897 was made from cameras near Guys and St Thomas’. Valeria Anghel, who runs Il Mirto in East Dulwich, said the Italian restaurant lost 40 per cent of its customers after the street the pizzeria is on was cut off to cars in 2020.

Tower Hamlets

Estates Gazette reports that The chief executive of Canary Wharf Group hopes a tie-up with lab developer Kadans Science Partner will ensure the Docklands estate plays its part in making the UK a “science superpower” to compete with the likes of Boston, San Francisco and Singapore. CWG and Kadans have agreed a joint venture to develop what they claim will be Europe’s largest commercial lab, a 22-storey, 750,000 sq ft scheme on CWG’s North Quay site.  “If the UK is going to be a science superpower, London’s going to need to have a critical mass of life sciences space,” Shobi Khan, CWG’s chief executive, told EG. “And we think this building and the North Quay campus can be the start of that… This fits [the government’s] vision of being able to create a great ecosystem that will compete with some of these other world-class cities.” According to Kadans, London has just 300,000 sq ft of commercial lab space available. “It means that London is losing out and companies are leaving,” said James Sheppard, head of commercial for the UK and Ireland at Kadans. “Once they leave, they very, very rarely come back.”

Property Week reports that Property group Frasers Property UK has secured a £100m green loan to redevelop the Aldgate Bauhaus building in London’s East End. The five-year revolving credit facility will be used to finance The Rowe, a redevelopment of the building that will add another six storeys. Aldgate Bauhaus is the former home of London Metropolitan University’s School of Art, Architecture and Design. Frasers said the building will provide 162,000 sq ft of workspace and over 17,000 sq ft of outdoor terraces. The company added that it will be run on 100% renewable electricity and provide a 45% carbon emission reduction compared with a standard office building. The development is expected to be completed in the third quarter of 2022. “Developing The Rowe is an important step for Frasers in achieving our goal to be net zero by 2050, and our ability to raise this £100m, sustainability-linked loan is key to being able to finance our portfolio with green and sustainable financing,” said Frasers chief financial officer Martin Ratchford.

Property Week reports that Investec provides £11m loan on south-west London mixed-use scheme. The development, due to complete in December 2022, will include 17 quality residential apartments for sale, a mix of one-two-and three beds, all of which will benefit from a private external terrace and/or balcony. A 13,400 sq ft retail unit, which has been pre-let to Marks and Spencer, and 17,500 sq ft of light industrial, distribution and office space suitable for a range of occupiers will complete the scheme. Ian Burdett of Investec Real Estate said: “This is a very well located mixed use development, which furthers our loan book exposure to London and those sectors – residential for sale, light industrial and convenience retail – that have outperformed over the past two years. Establishing new partnerships with fast growing, dynamic borrowers is central to our strategy, and we look forward to working with Style & Space on the delivery of both this and hopefully future schemes.” Thomas Crabtree of Style & Space added: “We’re very excited to finally be delivering this much needed space in the heart of Earlsfield and look forward to the final product of high end commercial space complimented with the long awaited M&S Food store and fabulous residential units making a positive contribution to Earlsfield.”

Westminster

City A.M reports that GPE snaps up London’s Fashion Retail Academy building for over £36m. GPE, formerly known as Great Portland Estates, has snapped up the government and Philip Green-backed Fashion Retail Academy building for £36.5m. While the property development and investment firm has bought the building, in the heart of Fitzrovia, it will remain home to the fashion school until it relocates to a larger building. The building, a stones’ throw away from the Elizabeth Line Tottenham Court Road, adds around 43,000 square feet of space to GPE’s around 250,000 square foot portfolio. It comes as the London-headquartered company leases One Newman Street in a fresh 10-year lease to a global investment firm, the name of which GPE has not disclosed. “We are delighted that this global investment firm has chosen One Newman Street for their new European headquarters,” leasing managing Richard Carson said in a statement this morning. The offices will be serviced by GPE’s workplace app Sesame, which lets users use contactless access, environmental controls and an online concierge.

Estates Gazette reports that Aermont bags Chanel’s Bond Street HQ. The private equity owner of Pinewood LONDON Studios has secured one of Mayfair’s biggest office deals of the year so far. London-based asset manager Aermont Capital has bought the long leasehold to Bond Street House, W1, a prime block which contains the London offices of fashion house Chanel, for £150m. Bond Street House sits on the corner of New Bond Street and Clifford Street and is being sold by Mark and Thor Equities. Aermont is understood to have bought the building for a private investor. The block also houses the London flagship store of luxury watchmaker Patek Philippe, which occupies a 914 sq ft art deco-style salon space on the ground floor. Agents at RX London and Michael Elliott were appointed last year to market the property for £150m.

General

Property Week reports that Currys has revealed it will switch to a hybrid working model for all corporate and commercial employees in the UK. As part of its new model Currys will provide its 1,400 corporate workforce with WeWork All Access passes, enabling them to visit over 50 UK WeWork locations. The Sunday Times reported Currys will vacate 1 Portal Way, its head office in Acton, as part of the move to flexible working. Property Week understands that the high street retailer are being advised by Frost Meadowcroft has eight years left on its lease at the HQ. Additionally, to support regional hubs, Currys will also be refurbishing a number of spaces in its own stores across the UK, giving colleagues even more flexibility about where they work. Alex Baldock, chief executive of Currys said: “We are not just paying lip service to hybrid working as we come out of the pandemic. We have listened to our colleagues, who have been outstanding through Covid’s many challenges, and have implemented the changes they wanted to see.