Posted on April 27, 2011 by John Cronin
A listed property investment company has purchased a City of London office scheme in a multi-million pound deal announced this morning.
London & Stamford plc has announced to the stock market it has purchased the long leasehold of One Carter Lane for £75m.
The building (pictured) is located in the heart of the City, immediately to the south of of St Paul’s Cathedral. As part of the transaction, London & Stamford have also purchased the adjacent bar and restaurant building 2 Old Change Court.
The offices offer a total of 125,844 sq ft of floor space and there is approximately 6,800 sq ft of retail space. The principal tenant is Goldman Sachs International whose lease expires in 2018, with a break clause due in March 2013.
The current rental income amounts to £5.814m per year of which 97% is received from Goldman Sachs. The buildings, previously owned by UBS Triton Property Fund were marketed at £72m following an inspection report by survey specialists Trident.
Raymond Mould, Chairman of London & Stamford Property, said: “..we are delighted to have acquired this prime, City of London property producing a relatively high net initial yield reflective of the nature of the investment.”
Following the demolition of existing buildings, One Carter Lane was completed in December 1997 by developers MEPC. Goldman Sachs International agreed to a 20-year lease in March 1998 at a rental price of £47 / sq ft following an initial 15-month rent free period.
London & Stamford have purchased the leasehold that has 136 years unexpired and the transaction reflects a net initial yield of 7.33%.
Posted in London |
Tagged Renovations, Rental Prices, Transactions |
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Posted on April 26, 2011 by John Cronin
A large, multi-let office scheme in Derby city centre has been put up for sale with an asking price of £11m.
The Heritage Gate scheme (pictured) is a 3-building development used as multi-let office accommodation. Total floor space amounts to approximately 140,000 sq ft and the development is considered to be the largest, city centre Derby office scheme. The development also includes 7 retail units and generous car-parking space.
Originally constructed in the 1970s for the city council, the offices are now multi-let. The 3 buildings that make up Heritage Gate are called Celtic House, Norman House and Saxon House. Derby Council is the principal tenant, occupying some 70% of Heritage Gate on a lease that expires in December, 2013. The other significant tenant is law firm Smith Partnership, occupying approximately 10% of the floor space.
Typical agreed rental prices for office suites are in the range £8 / sq ft to £10 / sq ft. At the asking price of £11m the rental income would give a yield of 12.30%. The scheme is being marketed on the assumption that new owners will undertake a refurbishment programme and develop an empty piece of land included in the sale.
Nick Hosking, director of joint marketing agent Innes England said: “For the last two decades Heritage Gate has been without question the most successful multi-let office complex within the city. The scheme has performed well because it offers good-quality flexible accommodation in a range of sizes and crucially benefits from a very high on-site car parking ratio complemented by secure basement parking.”
Heritage Gate is currently owned by Aviva Life and Pensions. Aviva had previously proposed to demolish Celtic House and Saxon House and replace the buildings with 2 new commercial developments (.pdf link).
The other joint agent for the scheme is GVA.
Posted in Derbyshire |
Tagged Renovations, Rental Prices, Serviced Offices |
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Posted on April 22, 2011 by John Cronin
The former headquarters of music publishers EMI have been acquired by developers who plan to rejuvenate the site.
The 18-acre site known as the London Gate Business Park, in Hayes, Middlesex has been purchased by Cathedral Group and Development Securities. The firms have a created a joint venture called Purplexed LLP that has purchased the site from The Blackstone Group in an undisclosed cash deal. Plans for a £250m redevelopment programme are expected to be published in the near future.
The sprawling development was once home to record label EMI who had various manufacturing facilities alongside their head offices. During the 1960s, 14,000 people worked for EMI at the site.
The site (pictured – source) offers approximately 700,000 sq ft of floor space across a mix of new and old buildings, many of which are unoccupied.
John Robertson Architects have previously produced a master plan for the site. Number 1 London Gate was one of the first buildings to be developed in to speculative office accommodation. Rental prices at the building and at new buildings 2 and 3 are quoted at between £25.50 / sq ft and £27.50 /sq ft. The 7-storey Building 2 was completed in 2000 and offers approximately 286,000 sq ft of floor space.
The new owners are planning a complete renovation of the site. Richard Upton, Chief Executive, Cathedral Group plc said: “It’s time for a new approach to the bland and tired business parks West of London.”
Matthew Weiner, Executive Director, Development Securities plc commented: “The site in Hayes has enormous potential for growth and we look forward to seeing this project through to completion.”
Posted in Middlesex |
Tagged Business Parks, Renovations, Rental Prices, Speculative Developments |
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Posted on April 21, 2011 by John Cronin
A planning application for office blocks at the Greengate Embankment scheme in Salford has been submitted.
Construction company Ask Developments, working in partnership with land owners Network Rail, has submitted a planning application for full permission for a 10-storey office block and outline permission for a 9-storey office block. The application is also for listed building consent for the partial demolition of a railway viaduct.
The offices are the 1st phase of the proposed Greengate Embankment (pictured) development, a mixed-use scheme that will include retail space, leisure units and a car park that has already been pre-let to Q-Park.
The 10-storey office building will offer 196,000 sq ft of floor space and will be named 101 Embankment. Salford City Council has agreed to guarantee 50% of the rent for a period of 10 years even though it does not plan to occupy the offices.
Alan Burke, director at Ask Developments, says: “The continued strength of the occupier market in [Manchester] and the lack of new Grade A space available from 2013 gives us confidence that now is the right time to be planning speculative development”.
Phase 1 of the scheme is a business district to be called The Exchange. Predominately consisting of office accommodation along with street level retail units, the area will offer approximately 400,000 sq ft of Grade A office floor space. The site used to be the former Exchange railway station that once had the longest platform in the world.
The North West Development Agency has previously contributed almost £5m to fund public realm improvements at the brownfield site that covers some 13 hectares.
Architects for the scheme are BFLS London.
Posted in Manchester |
Tagged Demolitions, Planning, Speculative Developments |
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Posted on April 20, 2011 by John Cronin
A speculative office scheme in Covent Garden, London is now fully occupied following a lease deal with technology giant Apple.
Apple has agreed a 15-year lease on the remaining 7,181 sq ft of floor space at 10 Slingsby Place, St Martins’s Courtyard, a mixed-use development in Covent Garden. Apple has agreed to let the office space on the 2nd and 3rd floors of the building. Market reports indicate that a rental price of £52 / sq ft has been agreed. Apple also has office space of more than 50,000 sq ft at the prestigious 67,000 sq ft One Hanover Street office scheme in Mayfair.
St Martin’s Courtyard (pictured) is a mixed-use development on a site covering about 2-acres and includes 101,000 sq ft of offices, 70,000 sq ft of retail space, 8 restaurants and residential apartments.
The speculative £100m development is a joint venture between Shaftesbury plc and The Mercers Company. The majority of the office accommodation was pre-let ahead of the scheme completion in late 2010. At the of September, 2010 76% of the offices had been let.
Other office tenants include healthcare company, PZ Cussons plc and recruitment consultants, Robert Walters who agreed a pre-let deal on 43,000 sq ft of floor space at 11 Slingsby Place. Private equity company August Equity have leased the 4,842-sq ft first floor of 10 Slingsby Place.
Shaftesbury plc Director, Simon Quayle, commented: “We are delighted to have attracted occupiers of the calibre of Apple, Robert Walters, PZ Cussons and August Equity to St Martin’s Courtyard”.
Marketing agents for the offices were H2SO and E.A. Shaw.
Posted in London |
Tagged Rental Prices, Speculative Developments |
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Posted on April 19, 2011 by John Cronin
A new research report indicates that office lettings in West London and the Thames Valley are up nearly 50% year on year.
In new research published by commercial agents Jones Lang Lasalle, lease data indicates that office lettings for the first 3 months of 2011 are broadly in line with the final quarter of 2010 but up 48% compared with the 1st quarter of 2010. The research report covers an area known as the Western Corridor which includes the sub markets of West London and the Thames Valley.
Lettings of approximately 393,000 sq ft of office space were secured during the 1st quarter of 2011, including a number of significant deals.
Software giant Adobe Systems signed for 49,500 sq ft of floor space at the Grade A, 75,000 sq ft Market House office scheme in Maidenhead (pictured) and BP took 36,400 sq ft of floor space at 5 The Square, Stockley Park.
Jones Lang Lasalle forecast that just over 2million sq ft of office space within the region will be let in 2011, broadly similar to letting volumes achieved in 2010. The reports notes that lettings between town centres and out-of-town locations have been evenly spread in 2011. James Finnis, head of Jones Lang LaSalle national offices team says: “Occupiers continued to favour Grade A space, with many taking advantage of the opportunity to upgrade. Grade A take-up accounted for over 245,000 sq ft – nearly two thirds compared with an average of nearer half.”
Driven by demand for offices in Windsor and Chiswick, rental prices during the quarter increased by 0.8% across the Western Corridor market. Jones Lang LaSalle expects an annual rental price growth of 3.6%, giving an average prime rent for the region of around £28.40 by the end of 2011.
Posted in London |
Tagged Rental Prices, Research, Transactions |
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Posted on April 18, 2011 by John Cronin
An office scheme at a business park in Sheffield that is popular with the digital media industry is now fully let following the signing of new tenants.
Ventana House (pictured) at the Sheffield Digital Campus is now running at full occupancy after lettings with Sky, Michael Page and Coal Pension Trustees Services have been secured.
The 5-storey, Grade A office complex offers 50,000 sq ft of floor space. Sky, the subscription TV giant, has become the major tenant after signing for 23,571 sq ft of floor space. Kennedys, a national law firm, had previously let 17,000 sq ft of floor space in July 2010. Recruitment consultancy Michael Page has signed for 2,932 sq ft and 5,779 sq ft has been let to Coal Pension Trustees Services. Rental prices for the latest letting have not been disclosed. Kennedys agreed to a headline rental price of £20 / sq ft for their 16-year lease.
Sheffield Digital Campus has the potential to offer approximately 600,000 sq ft of office accommodation. Ventana House, originally called Building Two, is a phase 1 building constructed alongside the Electric Works complex.
The Electric Works offers flexible and serviced office accommodation ranging in size from single workstation options up to suites of 5,000 sq ft. Smaller suites are available on flexible lease arrangements while the semi-serviced, larger units are available on 3 or 5 year leases.
Demand for offices within the Sheffield Digital Campus is reported to be “higher now than ever before”. Toby Hyam, MD of Creative Space Management who mananage the Electric Works also comments: “Despite these challenging conditions, it is impressive to see businesses investing in new workspace, both to improve their competitive edge.”
Marketing agents for Sheffield Digital Campus include Knight Frank and LSH.
Posted in South Yorkshire |
Tagged Business Parks, Rental Prices, Serviced Offices, Speculative Developments |
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Posted on April 15, 2011 by John Cronin
A multi-million pound, mixed-use redevelopment in Altrincham is the subject of an enquiry by the Planning Inspectorate.
It has been announced that the compulsory purchase order (CPO) made by Trafford Council to release land for the ambitious Altair scheme in Altrincham town centre is to be investigated. The CPO was made on 31st December 2009 to acquire the Bridge Inn and a tyre garage owned by ATS Euromaster. It is understood that both the Bridge Inn owner, developer-investor Petros, and ATS are objecting to the CPO.
The enquiry is being welcomed by Trafford Council. Nick Gerrard, Trafford Council, comments: “I am pleased we now have a date for this inquiry as this means we are one step closer to being able to secure key parts of this scheme and a hugely exciting development for Altrincham.”
The proposed £100m Altair scheme for the 6-acre site includes 31 homes, 90,000 sq ft of Grade A offices, 70,000 sq ft of retail floor space and a 125-bed hotel. Any large-scale speculative development of offices in Altrincham would compete with developments in Manchester city centre and out-of-town developments such as the nearby Airport City scheme.
Following the demolition of existing buildings, developers Nikal had hoped to start construction works on the site in early 2011 with a 1st-phase completion target of summer 2012.
The development is controversial, with a local action group suggesting: “there is no demand for a new development like this when the existing town centre is struggling”. However, a revised planning application was given unanimous approval by Trafford Council.
The 2-day inquiry is to take place on 28th June at Trafford Town Hall. A decision is expected to be announced in September.
Architects for the development are Ian Simpson Architects.
Posted in Cheshire |
Tagged Planning, Speculative Developments |
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Posted on April 14, 2011 by John Cronin
A large office complex in Greater Manchester has undergone a refurbishment programme and is now being marketed following a golf-themed launch event.
No 1 Park Square (pictured) is a large office complex located in Cheadle, south Manchester. Orbit Developments, owners of the building, have refurbished the 6-storey building and are now actively marketing the building.
A launch event was held earlier this week for commercial agents to view the revamped exterior and interior. The business park has a 9-hole putting course that was played on during the event.
Approximately 110,000 sq ft of Grade A floor space is available to let. The speculative scheme offers some of the largest floor plates available in the south Manchester office market at over 22,600 sq ft. While the building is suitable for use as a call centre or headquarters style offices, suites from 8,000 sq ft are available. Rental prices are in the region of £12.50 / sq ft.
Rhys Owen, Leasing Surveyor at Orbit Developments commented: “It is great to be able to present an office development that not only has possibly the largest available floor plate in South Manchester but has its own unique identity.”
The Park Square site currently consists of a single office building but there is scope for further buildings. Planning permission has been secured for 2 additional, 5-storey buildings of 45,000 sqft and 55,000 sq ft respectively. In total, the campus could offer in the region of 230,000 sq ft of floor space.
Orbit Developments, part of the Emerson group, is marketing the scheme.
Posted in Manchester |
Tagged Business Parks, Renovations, Rental Prices |
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Posted on April 13, 2011 by John Cronin
Construction work is set to start on a community building and business hub on the site of a former cattle market in Cornwall.
Construction company Mansell, which specialises in community based projects, has announced it has been awarded the £1.7m contract for a community based project in Helston, Cornwall.
The ambitious scheme is the brainchild of the South Kerrier Alliance (SKA) community group. The mixed-use facility will include a market hall and conference centre, retail units, accommodation for adult care and support and a business hub for small and start-up businesses.
The 1st floor of the building (pictured) will include approximately 2,000 sq ft of serviced offices, meeting rooms and a “business hub”. Profits generated from the office rents will be used to fund local community projects and are deemed to be an essential element of the scheme.
The project is part financed by the EU along with financial support from the European Regional Development Fund the European Agricultural Fund for European Development.
The building, designed by RLT Architects, will be constructed using various energy saving measures, including solar power and is expected to achieve a BREEAM rating of ‘Excellent’.
As part of the successful planning application a study into the viability of the scheme was undertaken by commercial property specialists GVA. Their report (.pdf) concluded that the Cornwall offices market lacked a supply of affordable office space with the greatest need for adaptable office space on flexible lease terms.
Demolition of the existing cattle market buildings has begun and construction work is set to start later this month. The target completion date for the build is January 2012.
Posted in Cornwall |
Tagged Demolitions, Public Sector, Serviced Offices |
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