Next week Land Securities will hold a party at its Cardinal Place development to celebrate the fledging of a separate residential division run by Tom Eshelby, who joined in 2010 to hatch the new chick. Will other commercial developers be tempted by LandSec’s move to give wings to staff working on what is still seen as an unwelcome by-product of commercial activity?
Figures from Green Street Advisors suggest 40% of the current development pipeline of both LandSec and British Land is residential – and that 25% of the activity of all listed REITs will be residential. So ?it would seem almost perverse not to set up separate ?divisions. What Green Street does not say is that most of the residential activity is still a by-product of commercial development.
Eshelby signaled in the FT last week that LandSec has “moved from a position where we did residential because we had to, to a position that we now undertake residential for its own sake”. That implies his new division will be allowed to lead rather than follow. Rivals will now be wondering where that will lead LandSec – and dare they follow?
Sugar Candy in the City
Christian Candy paid the receiver £34m for Sugar Quay in the City in the spring of 2012. Many warned he would never get permission to convert the offices into flats. Permission was granted in January. Many then warned there was not a chance of Candy being able to persuade the stone-faced Fishmongers’ Company to relinquish freehold rights and give permission for residential. Well, it did. The Fishmongers Company no doubt squeezed every drop of cod liver oil from the deal. Even if it did, all credit to Christian Candy.
Mike Hussey of Almacantar faces a similar obstacle. The Portman Estate is freeholder of land at Marble Arch on which Hussey plans a 17-storey residential tower. Hussey is at least as inventive as Candy. But the Portman Estate has even more reason to be obdurate than the Fishmongers. It just hates owners who might one day try to enfranchise. No doubt an accommodation will be reached – one day. Almacantar bought Marble Arch Tower in May 2011. Hussey says he has “yet to start discussions with the Portman”. Good luck.
Mystery man with big plans
Who is Tom Ryan? Two weeks ago the unknown Irishman announced plans to build ?the UK’s tallest residential skyscraper in London’s Docklands, after paying Commercial Estates £100m for a site long reserved for the mixed-use Columbus Tower. On Saturday, The Guardian dug up some history, but ?failed to find our mystery man. All I can add is that the address listed at Companies House for Tom Ryan of the Ryan Corporation UK Ltd is a small but becoming house in Dublin. His fellow director is 24-year-old Lithuanian, Alvydas Damalakas. They will both be aware that two freshly-dug Crossrail tunnels lie beneath the site.
Savills’ plush new home
Do try and take a peek at Savills’ sleek new offices in Margaret Street, just north ?of London’s Oxford Circus. Rumours swirl that carefully planned desk layouts will have to be rearranged. The current arrangements are not working as well as envisaged, apparently. Not something anyone was keen to talk about when I visited last week to make a sales pitch for my book to graduates. But the foyer and basement restaurant are awesome.
The dignity of more senior visitors can be compromised ?in a struggle to rise from sleek but rather too low settees in the airy foyer. However, the service is four-going-on-five-star. “Would you like me to take your umbrella sir?” asked ?the kindly doorman, before signaling the spot where coats can be hung. This is on the ?way down to the luxurious basement restaurant, where serving staff actually come ?up to you and ask what you want to eat.
It’s all a far cry from the cramped concrete bunker up on Grosvenor Hill and the gruesomely marbled halls of the overspill office in Berkeley Square. All that’s left to sort out is where everyone works after they have finished eating.
