The Financial Times has appointed DTZ to lead the search for a new 150,000-200,000 sq ft HQ in a move which could see its South Bank home brought to market.
The paper, owned by publisher Pearson, is currently headquartered at the 154,505 sq ft 1 Southwark Bridge, SE1, to which it owns the freehold.
It has enlisted DTZ to scour the area for a new HQ as it considers seeking planning permission to convert its current building to residential. Another option alongside a sale could be to partner with a developer.
The publisher is thought to be focusing its search on the South Bank in order to maximise its chances of gaining the consent from Southwark planners.
Pearson bought the building from Regalian Properties for £74.4m in 1987.
Permission to convert it to residential could see the price skyrocket as the area continues to benefit from flagship developments, including the Shard.
Land Securities owns the freehold to the neighbouring 128,000 sq ft Red Lion Court and 379,000 sq ft 1+2 Bankside but is thought unlikely to target the building if consent is granted for a residential conversion due to the high price it would attract.
Agents in the area predicted sovereign wealth funds would be the most likely buyers, with the likes of Qatari Diar – owned by the State of Qatar’s investment arm – having already invested in the nearby Shell Centre.
They added that, with the publisher committing to remain in the area, there were only a handful of developments and buildings the broadsheet could occupy.
Options include: Great Portland Estates’ and Ropemaker Properties’ 240 Blackfriars Road, SE1; the Shard; and CIT Group’s redevelopment of Kings Reach Tower. The buildings will be ready for late 2013-14.
All parties declined to comment.
jack.sidders@estatesgazette.com
