London’s biggest deals for September
1
10 Bloomsbury Way, WC1
54, 229 sq ft
Tenant: The Office Group
2
Dawson House, 5 Jewry Street, EC1
30,342 sq ft
Tenant: Undisclosed
3
Old Fire Station, 4-8 Maple Street W1
19,699 sq ft
Tenant: Undisclosed
4
10 Bloomsbury Way WC1
18,462 sq ft
Tenant: BIomarin Europe
5
10 Bloomsbury Way WC1
18,462 sq ft
Tenant: Health Clinical UK
Significant September deals
1 Rathbone Place, W1
Type of deal Pre-let
Size 227,324 sq ft
Lessor Great Portland Estates
Lessee Facebook
Rent £16.9m pa
Jack Sidders, EG’s news editor says: Facebook exchanging contracts to pre-let Great Portland Estates’ Rathbone Square development was the most important deal in the West End in September and arguably the year. The social media giant has leased 227,324 sq ft for 15 years without break from practical completion (expected in February 2017). It will pay a rent of £16.9m pa once its 30-month rent-free period expires. Facebook has also signed a subject-to-planning agreement to lease a further 15,461 sq ft, which GPE had previously earmarked for retail. The deal means GPE has now secured deals for 87% by value of the 418,698 sq ft mixed-use scheme.
5 Cheapside, EC2
Type of deal Sale
Size 40,126 sq ft
Seller Amsprop
Buyer Al Gurg
Price £80m
Jack Sidders, EG’s news editor says: Many questioned Amsprop’s decision to pay £20.8m for 5 Cheapside, EC2, in 2012, significantly outbidding the competition at the time. But the sale of the refurbished building, nicknamed the Threepenny Bit, to Al Gurg in September for more than £80m, clearly proved those critics wrong. The deal crystalises a huge profit for Lord Sugar’s property company, which spent £10.5m refurbishing the 40,126 sq ft building before leasing the entire office space to upmarket serviced office company London Executive Offices at a record rent of more than £80 per sq ft.
People, politics and peculiarities
Colliers catches Cowley
After the summer lull, poaching is back. Colliers has lured Charles Cowley from Savills, where he has worked for 25 years.
Cowley will be head of Colliers’ London offices lease advisory, having worked as a director of lease advisory at Savills after heading the landlord and tenant team at CBRE’s West End office.
Hewes heads for BNP PRE
BNP Paribas Real Estate has hired Gemma Hewes from Deloitte Real Estate as a director in its City leasing team.
Trio reborn as Reesa
A trio of office agents specialising in tenant representation have merged to form a new company called Reesa. Perrins Dooley, Shoreditch Office Space and Keystone CRE will join forces and be headquartered in the West End, with a presence in the City and east London.
Keeping Boris busy
Since being elected MP for Uxbridge and South Ruislip in May, Boris Johnson has been busy juggling parliamentary work with his duties as London mayor. However, it hasn’t stopped him keeping a close eye on planning and development in the capital, as last month he called in British Land’s 350,000 sq ft Blossom Street, E1 mixed-use development after it was rejected by Tower Hamlets. He has also called in Hammerson and Ballymore’s revised plans for the 10-acre Bishopsgate Goodsyard, E1 at the request of the developers, as Hackney and Tower Hamlets councils have failed to determine the plans within 16 weeks.
Still on the topic of mayors, Zac Goldsmith (pictured) has been selected as Conservative candidate in next May’s elections.
A flighty trend
And the latest retro trend to hit Shoreditch is… darts. A pub themed around the game, called The Flight Club is due to open in the area later this month.
Resi conversion starts soar
The number of office-to-residential conversion starts has increased 16-fold in the 12 months to May, according to EGi London residential research.
Northwood plans for Midtown
Northwood Investors has submitted plans for a 245,500 sq ft office and residential scheme on the site of 81-87 High Holborn, WC1.
Student surge
London’s full-time student population is expected to rise by 50% in the next 10 years, while capital flow into student housing is expected to triple, reaching £5.7bn by end of 2015
Jaeger House set for revamp
Shaftesbury has lodged plans for the revamp of Jaeger House on Broadwick Street, W1 which will including extending by a floor and creating more retail space.
Croydon loses out on offices
Croydon has lost 2m sq ft of office space to residential conversion.
Planning pipeline drying up
London’s residential development boom is showing signs of peaking with the number of units in the planning pipeline having dropped for the first time in four years.
