City of London

Property Week reports that Derwent London has agreed the sale of 19 Charterhouse Street for £54 million. The REIT sold the freehold interest on the 63,170 sqft office building to a family office instructed by Morgan Capital and BNF Capital. The building, which Derwent acquired for £41.3 million in 2013, is currently occupied by the London College of Accountancy on a lease set to expire in 2025. The annual passing rent is £2.6m, and the sale price represents a 4.6% net initial yield to the purchaser, and a capital value of £855/sq ft – a marginal discount to June’s 2022 book value.

Britain’s first 24/7 “zero-emission” street could be introduced in the Square Mile under new plans from the City of London Corporation. Beech Street was closed to all petrol and diesel vehicles in March 2020 for an 18-month experiment aimed at radically reducing levels of harmful nitrogen dioxide. Now, the City of London Corporation is consulting on proposals for a permanent ban on polluting vehicles except for deliveries, rubbish collection and carpark access in a move that would reverse the record of one of the City’s most polluted streets. Streets and Walkways Sub-Committee Chairman Graham Packham said that “radical action” was needed to restore air quality in the area. The Corporation is also working with Islington Council on plans to cut traffic to reduce pollution in Bunhill, Barbican and Golden Lane.

The Architect’s Journal reports that designs have been unveiled for the £1.5 billion revamp of Liverpool Street Station. A second public consultation has been launched on proposals brought forward by Network Rail and developer Sellar which would see two new connected towers above an overhauled station. The proposed buildings are 21 and 15 storeys tall and would provide an additional 17,651 sqm of space for the Andaz hotel and 78,038 sqm of office space. Heritage groups previously raised concerns over the proposals after initial plans were revealed last October, with Historic England subsequently expanding the station’s listings to incorporate the 1990s elements impacted by the new towers. Sellar CEO James Sellar said the proposals would “enable the £450 million vital station upgrades at no cost to passengers of the taxpayer.”

City of Westminster

Property Week reports that Concord London has acquired the freehold interest in 117/123 Great Portland Street in Marylebone for £19.5 million. The 14,700 sqft corner property is leased to HSBC for a further nine years, although it is currently unoccupied. Concord London said it was considering a range of refurbishments and change of use options for the building. The developer’s portfolio includes a number of residential-led mixed-use projects including W1 Square, Marylebone Square and Principal Tower, a new 50-storey landmark in the City.

The Financial Times reports that businesses are warming to a Labour-led Westminster council following the party’s historic gain in May last year. Businesses had feared a “People’s Republic of Westminster” after Labour took control of the council for the first time in 58 years, but property bosses are said to be increasingly appreciative of the “pragmatic” approach adopted by the new administration. The move comes after WPA research found that the number of planning permissions granted by the new Labour leadership was roughly in line with the previous administration. Leader Adam Hug assured businesses that a Labour Westminster Council were “not revolutionaries”, with WPA chief executive Charles Begley characterising the new administration as “pragmatic and approachable”. Labour has flipped the ratio in favour of social housing for taxpayer-funded homes in a new Local Plan since replacing the Conservatives, but the council is keen to ensure continued investment in areas like the West End to ensure tourism in Westminster returns to pre-pandemic heights.

Islington

Property Week reports that tech giant TikTok has pre-let the entirety of Topland Group’s Verdant office development in Farringdon. The scheme, which was speculatively built in partnership with Beltane Asset Management, is due to be completed in the third quarter of 2024 and will comprise 140,000 sqft of office space between 150 Aldersgate Street and 3-4 Bartholomew Place. It is reported that TikTok will take the space in addition to its existing 88,580 sqft headquarters at the Kaleidoscope building above Farringdon East Station which it acquired on a 15-year lease from Helical in 2021. Sources have reported that the firm is likely to take up occupancy at Verdant in late 2025.

Royal Borough of Kensington and Chelsea

Property Week reports that AshbyCapital has let 22,931 sqft of office space at London’s The Kensington building to eyewear company EssilorLuxottica. The firm have selected the second floor of the 94,734 sqft building, which AshbyCapital claim is the first new headquarters building in Kensington for over 35 years, as their new HQ. AshbyCapital CEO Peter Ferrari called the move “a major vote of confidence in the next-generation, sustainable workspace that we have created with Janson Urban and Pilbrow & Partners.” The Kensington has a BREEAM Excellent rating and receives 100 percent of its electricity from renewable sources.

MyLondon reports that an inquiry into the controversial makeover of South Kensington Station is set to release its findings this month. The inquiry was launched last year after TfL and developer Native Land appealed Kensington and Chelsea Council’s decision to reject their plans for a retail and residential mixed-use development above the station. Proposals would see the Thurloe Street Building demolished and a new “Bullnose” building built, alongside a makeover of Thurloe Street’s retail arcade. The joint venture also planned to construct a four-storey building on Pelham street consisting of shops, office space and 50 private flats, 35 percent of which would be affordable. RBKC Council rejected the proposals in 2021 against planning officer recommendation after the local MP and 4,000 submissions from local groups and community organisations called for its refusal.

Southwark

Property Week reports that Southwark Council has granted approval for Building 1 at Native Land’s Bankside Yards development above Blackfriars Station. The 18-storey 80,000 sqft sustainable office is a flagship feature of the developer’s 1.4 sqft development, which they claim will be the UK’s first major mixed-use regeneration scheme with net zero emissions in operation. Building One was designed by Make Architects and will be located at Bankside by the Thames, offering views of the City and St Pauls Cathedral

Tower Hamlets

Property Week reports that HSBC has appointed Cushman & Wakefield to advise on the long-term property strategy for its global headquarters in Canary Wharf. The news comes after reports that the banking giant was considering a move out of its current HQ at the 45-storey 8 Canada Square building which it has occupied since 2002. James Meikle, head of London occupier representation at Cushman & Wakefield, said the company  was “excited to work with HSBC to provide the analysis and data to enable the firm to make an informed decision on its future headquarters in London”.

Canary Wharf Group and the Eden Project have been given the green light to create a new “green spine” through the business district. The plans aim to create of model of thriving biodiversity in urban environments and to provide the Eden Project with a London base. Construction is expected to begin as soon as possible, with phase one creating a green spine through the centre of Canary Wharf with accompanying green public realm, parks, bridges and water features. Glenn Howells Architects is consulting on an overall masterplan for transforming existing public realm and waterways in the area.

General

Property Week reports that letting agent Foxtons have reported a 20 percent rise in London residential rents for 2022. The company said that demand remained high throughout the year, sitting an average of 14 percent above 2021 levels and climbing to 20 percent at the end of the year. On average, the firm found that there were 18 would-be renters competing for every London property in December, with West London as the most sort after area with 31 renters per new instruction. In contrast, there has been a sharp decline in supply since 2021 with 32 percent fewer listings in 2022.