Around the Market London – June 2015

London’s biggest deals for June 10 Upper Bank Street, E14 (6-12th and 16th floors) 388,839 sq ft Tenant: Deutsche Bank S2, King’s Cross Central, N1 182,500 sq ft Tenant: Google Mitre House, EC1 (Refurb and extension)  150,000 sq ft Tenant: DLA Piper UK LLP Aldgate Tower, E1 (4-6th floors) 60,481 sq ft Tenant: We Work Granville House, SW1 43,031 sq ft Tenant: Marshall Wace Asset Management  *At the time of going to press. Source: EGi data Significant June deals S2 King’s Cross Central, N1 Type of deal Office prelet Size 182,500 sq ft Rent £55 per s q ft Lessor King’s Cross Central Lessee Google Chris Berkin, EG’s West End correspondent, says: There was another twist in the story of Google and King’s Cross Central in June as the search giant pre-let the 180,000 sq ft S2 building to the north east of the site to accommodate its expansion while it continues to dither over its proposed headquarters next door to the mainline station. New architects have been appointed so it seems progress on that is still some way off. For developer Argent it is a real coup, securing a major letting at one of the office buildings on the site furthest from the transport connections and before planning has been secured. But it is also mindful other occupiers don’t come to see the scheme as just Google’s giant campus. There is still another 1m sq ft of office space to go, much of it in smaller buildings. Sixty London Wall, EC2 Type of deal Office investment Size 260,000 sq ft Vendor Deutsche Fonds Buyer LaSalle Investment Management and Calsters Price £197.5m Let to ING Jack Sidders, EG’s news editor, says: The sale of Sixty London Wall by Deutsche Fonds to LaSalle Investment Management and Calsters for £197.5m speaks volumes about the City market at the moment. The price paid – around 20% over asking – reflects the depth of demand for value-add opportunities, with dozens of developers and private equity fund managers chasing a limited number of schemes. Take-up in the first half of this year – at an 18-year high for central London, according to Cushman & Wakefield – is reassuring investors there is substantial demand out there. The supply picture in the near term still looks constrained. But the usual dark mutterings of the underbidders at the prices some are clearly prepared to pay have started becoming much louder rumblings. People, politics and peculiarities OPDC announces new chief executive Victoria Hills has been appointed as chief executive of the Old Oak and Park Royal Development Corporation which has ambitions for a 15-year, 24,000-home regeneration that could boost the London economy by £15bn. JLL recruits residential reps JLL has bolstered its tenant representative team with three new appointments. Robin Pugh has been promoted to national director, Andrew Wood joins as associate director from CBRE and James Bromme joins as a surveyor from the firm’s Bristol office. Mayoral election race – 299 days to go Labour London Mayoral candidate David Lammy has called for a Homes for London Agency, which would be able to raise funds on the bond market in a similar way to housing associations, as a means of providing more affordable homes in the capital, Lipton joins the housing debate Not a Mayoral candidate, but wading into the London housing debate is Sir Stuart Lipton who has called for a London Housing Tsar with planning powers. Keeping quiet on airport report Not normally known for keeping schtum, warnings that ministers wouldn’t be commenting immediately on the Davies Commission report on airport expansion have proved true. It’s only taken three years and £20m to put together the report so why rush a response. Making your mind up Ministers might have to make their minds up a bit more quickly on what to do when the Houses of Parliament gets a long-needed renovation.The government is mulling three options: in-situ refurb, partial decamp and entire decamp with the latter – requiring 1m sq ft of space – sparking much interest in where the MPs, Lords and their staff could be accommodated. Underground farming? Meanwhile deep underground in Clapham – 100 ft, in fact – an unusual use has been found for some unusual space. The SW4 postcode is home to one of several second world war bomb shelters, which are not a very convenient or practical space to let. Not unless you’ve worked out a way of growing things with LED lighting and have an idea for a micro farm, that is. Fox broadcasts office needs Fox International Channels has launched a 100,000 sq ft office requirement in West London. Westfield expands luxury area Westfield London is to get an expanded luxury shopping quarter in response to consumer demand. Resi revisions at Bishopsgate Hammerson and Ballymore have unveiled revised plans for the 10.3-acre Bishopgsgate Goodsyard site, E1 (pictured) reducing residential and increasing office space.  West End market still top The West End remains the most expensive office location in the world according to research by CBRE.  West London availability drops Supply of freehold industrial space in West London is at it’s lowest level for 20 years. KCL withdraws Strand plans King’s College London has withdrawn its plans to redevelop its campus at 152-158 Strand, WC2, after they were called in.