Aparthotel plans in for ‘redundant’ City office
A City of London investor wants to develop an aparthotel block after Allsop advised that refurbishment of the existing vacant office on the site would not be cost effective.
Jastar Capital has lodged a change-of-use application with the City of London Corporation for 59 Carter Lane, EC4, part of the King’s Wardrobe estate close to St. Paul’s.
King’s Wardrobe comprises 92 aparthotel rooms, including studios, and one- and two-bed rentals operated by Native Places.
A City of London investor wants to develop an aparthotel block after Allsop advised that refurbishment of the existing vacant office on the site would not be cost effective.
Jastar Capital has lodged a change-of-use application with the City of London Corporation for 59 Carter Lane, EC4, part of the King’s Wardrobe estate close to St. Paul’s.
King’s Wardrobe comprises 92 aparthotel rooms, including studios, and one- and two-bed rentals operated by Native Places.
The five-storey, 3,800 sq ft 59 Carter Lane was built in the early 1900s and, according to architects at Burns Design Associates, is now “redundant” and “in a poor state of repair due to lack of use and maintenance associated with not meeting modern office accommodation requirements”.
Like several other owners of offices large and small – including Art-Invest Real Estate at Dockside Canada Water, SE16; Hatton Garden Properties at 15-17 Black Friars Lane, EC4; and Central & Provincial Properties at Grove House, W6 – Jastar now wants to turn the site into a residential scheme.
If approved, its plans will see the Carter Lane block turned into an aparthotel of nine rooms, also operated by Native Places.
A market report from Allsop, filed alongside the planning application, said that a refurbishment of the office would deliver a loss and negative IRR.
Allsop said: “If the building was to be comprehensively refurbished and launched to the market, the building is at a significant disadvantage given compromised floorplates and slanted eaves on the fourth floor.
“Furthermore, given the location of the unit and its location within the submarket, it would fall second to numerous serviced office space locations such as WeWork, Knotel, Orega, The Office Group and Convene, which cater for requirements of c.500 sq ft.
“Furthermore, their leasing strategy involves attractive, short-term leaseholds that, if undertaken at 59 Carter Lane, would hamper investment value.”
The agency added: “A change of use to serviced apartments… is likely to be a more successful outcome than delivery of lower-grade offices in an already saturated market.
“Serviced apartments will further enhance the environment for office occupiers in the surrounding area and improve the Carter Lane address.”
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