Demand for London residential will see Freud Communications almost double its investment on a headquarters it bought just one year ago.
The PR giant is in talks with residential developers over the possible sale of its 31,000 sq ft headquarters at 55 Newman Street, W1.
Freud, which counts Mars and Gucci among its clients, bought the building – which it has occupied for four years – in March 2012 from Nick Leslau’s Prestbury Investments for just over £21m.
However, the group has been approached by a number of housebuilders offering as much as £40m for the Soho block.
To facilitate a sale, Freud has lodged plans with Westminster council to add one storey to the block and convert it into an MMM Architects-designed scheme comprising 23 luxury flats (pictured).
Based on current prime residential values of £1,840 per sq ft in the area, a residential redevelopment would be valued at more than £57m. However, experts believe that with the arrival of Crossrail in 2018, this would rise to £85m.
One West End agent said: “This surge of buyers wanting residential in and around Soho is largely down to the potential of a significant return on an investor’s equity. There is still a shortage of residential schemes in this part of the West End, and with the looming arrival of Crossrail and the ongoing ?sprucing-up of the area, it is losing its tired reputation and becoming a more desirable place to live.”
Last year 1.2m sq ft of office space in the West End was converted into homes – a 168% increase on 2011, according to research from H2SO.
Freud has now appointed Savills to find it a new 30,000 sq ft West End HQ.
It is understood to be keen ?to take a large chunk of Facebook’s 36,000 sq ft at Seven Dials Warehouse, WC2. The social networking giant is relocating to British Land’s 10 Brock Street, NW1.
Joanna.Bourke@estatesgazette.com
