by Alex Catalano
Goldman Sachs, the US investment bank, have bought the Daily Telegraph’s premises in Fleet Street to redevelop for their London headquarters.
The site, which was owned by a private company, Rothesay Developments, comes with two alternative planning permissions for around 340,000 sq ft. However, Goldman Sachs will not be using either scheme, but designing their own building.
The new scheme is likely to increase the floorspace, as it will include the 77,000 sq ft of offices currently leased to the Daily Telegraph. “No decision has yet been taken on how to incorporate the front building, which is listed,” says Brian Maier of Goldman Sachs.
No price has been revealed, but Brian Maier says Goldman Sachs are “very happy with the deal”. He describes the price as “reasonable” and “good value”. “Open tender bids are getting ridiculous,” he said. “This was a private deal.” In fact, the bank have bought Rothesay Developments, whose main asset is the Telegraph site.
Rothesay are a Jersey-based company headed by Greville Mitchell, whose track record includes stints at John D Wood, the Lyon Group, Bovis Property, Investment & Property Holdings and Sime Darby. In June 1984, Rothesay bought the Telegraph properties for an undisclosed amount.
The Daily Telegraph have already moved their printing operations to a new plant in Docklands and recently took the first phase of South Quay Plaza for their editorial offices. They will completely vacate the Fleet Street site later this year, and Goldman Sachs hope to move in by the end of 1989.
Goldman Sachs’ purchase ends the bank’s extended search for a new London home. Earlier this year they lost tenders for both the City Corporation schools site on Blackfriars embankment and the Royal Mint site near the Tower of London. “We put in a very aggressive bid for the schools site,” says Brian Maier. “However, we were not prepared to pay what it took to win.” Instead, Morgan Guaranty were the victors, paying £90m.
The Royal Mint site — where City Merchant Developers and Postel won the tender — did not suit Goldman Sachs quite as well. “It didn’t meet all our objectives,” says Brian Maier. “We wanted a freehold, and a location in the centre or west of the City, so we were not prepared to be as aggressive.”
In terms of location, the Telegraph site meets Goldman Sachs’ needs. “Most of our clients are in the centre or west of the City or the West End,” says Brian Maier. “That’s what drove the decision.” In addition, the site has the benefit of being near Goldman Sachs’ existing premises. The bank are currently spread over three buildings — 5 Old Bailey, Strand House in New Fetter Lane, EC4, and 179 Queen Victoria Street, EC4, with a small amount of extra space in Bridewell Place.
