Posted on March 16, 2011 by John Cronin
A tall office tower in the City of London is now on the market after the previous owners went into administration.
The offices at 6-8 Bishopsgate (pictured) are now being marketed for sale with a price tag of between £95m and £100m. The previous owners of the building, Canadian investment managers Jesta Capital purchased it in 2006 for £108m. Jesta Capital itself attempted to sell the building late last year.
The 24-storey office block offers total floor space of approximately 147,000 sq ft and is currently let to Deutsche Bank until 2015. The indicative yield for the building is 7%.
There were plans for a new replacement tower on the site but the design for the original DIFA tower were criticised and the proposed scheme lapsed. 6-8 Bishopsgate has undergone a refurbishment programme in recent years including a complete refit of the fire safety systems.
Last month another City office block that was previously owned by Jesta Capital also came to market. Peterborough Court in Fleet Street is up for sale at a price of around £300m. The 370,000 sq ft complex is actually two buildings comprising of the smaller 39,000 sq ft Daniel House and the larger 280,000 sq ft Peterborough Court. The remaining space in the buildings is used for retail and ancillary floorspace.
Formerly the offices of The Daily Telegraph, the building is currently occupied by investment banking giant Goldman Sachs. It is believed that Goldman Sachs pay approximately £18m per year in rent, or around £49 / sq ft, on a lease that runs until 2026.
Posted in London |
Tagged Renovations, Rental Prices, Transactions |
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Posted on March 15, 2011 by John Cronin
Microsoft Research has agreed to a multi-million pound deal for new headquarters offices in Cambridge.
In a £37m deal announced last week by Orchard Street Investment Management, Microsoft Research has signed for a new headquarters office scheme to be built at the CB1 development. Construction of the 77,000 sq ft building is to start immediately and a completion date of winter 2012 is expected.
Gary Felce, Partner at Orchard Street, said: “[This is] a landmark transaction for the Cambridge city centre office market, setting a new tone and a standard for the next wave of development to follow.”
CB1 (pictured) is a large, mixed-use scheme planned for a 26-acre site next to Cambridge mainline station. Developers Brookgate have plans for approximately 500,000 sq ft of Grade A office space along with student accommodation, residential, retail and hotel space. The revised scheme, announced last August, is a joint venture with Network Rail and a new station square is also planned.
The deal with Microsoft is seen as significant for the project and further commercial deals are now anticipated. The new-build headquarter building will be the first, new Cambridge office project seen in the city centre for more than 25 years.
The CB1 scheme has endured stop-start progress. The project was mothballed for much of 2009 due to former developer Ashwell Property Group entering into administration in December of that year. Brookgate was then formed and in summer 2010 had to submit revised plans for the first phase of scheme after the student accommodation buildings were described as “anywhere architecture” (pdf link).
Microsoft Research was represented by agents Jones Lang LaSalle.
Posted in Cambridgeshire |
Tagged Speculative Developments, Transactions |
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Posted on March 14, 2011 by John Cronin
An innovative, speculative office scheme that actually reduces the amount of carbon dioxide in the atmosphere has been completed in Barnsley, South Yorkshire.
The Old Corn Mill conversion scheme (pictured) has been given a rare A+ energy performance rating as a result of the energy efficient features installed in the building. The office development is 1 of only 14 carbon negative commercial buildings in the UK.
A combination of technologies including solar panels, wind turbines and water power have been incorporated into the refurbishment of the old mill that dates back to around 1750. The building at Bullhouse Mill, near Penistone, produces more green energy in a year than it consumes, with the exported surplus effectively removing carbon dioxide from the atmosphere, giving it an energy performance rating of A+.
Located at Bullhouse Mill, the converted and extended building is adjacent to the existing Bullhouse Mill Enterprise Hub which offers serviced office facilities from £35 / week for a single workstation. The 75,000 sq ft, mixed-use hub is supported by the Enterprising Barnsley organisation. Office suites within the Old Corn Mill range in size from 925 sq ft up to 6,305 sq ft. Quoted rental prices are £12.50 / sq ft and tenants are expected to benefit from reduced heating and electricity bills as a result of the energy efficiency measures used.
Developer Charles Booth says: “We believe there is a market for a sustainable office building, so whether that is for companies who believe in a low carbon future or others wanting to keep a low carbon chain, there is quite a wide market out there.”
Marketing agents for the scheme are Chris Rowlands and Co.
Posted in South Yorkshire |
Tagged Renovations, Rental Prices, Serviced Offices, Speculative Developments |
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Posted on March 11, 2011 by John Cronin
A new letting of a floor within a new office scheme in Bristol has left the city short of available Grade A floor space.
Developers Ashfield Land have announced the letting of the second floor of their St Catherine’s Court scheme (pictured) to international assurance group Lloyd’s Register. The firm has signed a 10-year lease for the 6,987 sq ft floor within the building. Quoted rental prices are £28 / sq ft.
According to agents Alder King, this latest letting has left the Bristol offices market short on availability for Grade A floor space. Simon Price, partner at Alder King said: “There is only one Grade A building currently under construction in Bristol and as a result of this and other recent deals, the amount of top quality space that is now available is extremely limited”.
St Catherine’s Court, completed in 2009, has only the 6,805 sq ft top floor available for immediate occupation. The BREEAM rated ‘Excellent’ speculative scheme was the first new-build office in the Clifton area of Bristol in over 20 years. The 5-storey building offers total floor space of approximately 31,000 sq ft along with basement car parking.
Another Bristol office scheme with a troubled history was sold yesterday in a multi-million pound deal. Aerium, the European real estate fund manager, purchased the speculative One Glass Wharf scheme from the administrators for £83m. The 215,000 sq ft scheme came to market last September. Reports indicate that the offices have a current occupancy rate in excess of 80%.
Marketing agents for St Catherine’s Court are Alder King and WGH Property.
Posted in Bristol |
Tagged Rental Prices, Speculative Developments, Transactions |
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Posted on March 10, 2011 by John Cronin
The Co-operative Group has launched an £800m development scheme for Manchester city centre, to be known as NOMA.
The ambitious, mixed-use scheme (pictured) was launched this week by the Co-op at the MIPIM property conference in Cannes. NOMA 53 (derived from north of Manchester) is a commercial led, 4million sq ft scheme that will include 1.5million sq ft of office floor space.
The scheme has a construction timeline approaching 15 years with phase one already in progress. The Co-op is currently having new 326,000 sq ft headquarter offices constructed on the 20-acre site by developers BAM. Scheduled completion for the BREAAM rated ‘Excellent’ offices is September, 2012. The land is owned by the Co-op.
The Co-op envisages NOMA as a leading commercial centre, consisting of headquarters accommodation along with offices for media, financial and service industries. The speculative scheme will however have to compete for media industry tenants with the large, Peel Holdings MediaCity scheme at nearby Salford.
Martyn Hulme, Managing Director of Co-op Estates said: “This commercially led scheme will offer a range of floorplates to satisfy the needs of both large corporate occupiers and small and medium sized enterprises”. Potential tenants will be able to specify their exact requirements at the pre-let stage. It is not clear if construction of new-build offices will commence without pre-let agreements being signed.
The scheme will involve a programme of public realm works, to be designed by Netherlands based Mecanoo and the site will be integrated into the existing transport network. The Co-op says the scheme will generate all of its own power requirements via a renewable energy centre and smart grid. As such BREEAM ratings of ‘Excellent’ should be expected.
The Co-op is currently the sole developer for the scheme but expects to commit to joint ventures.
Posted in Manchester |
Tagged Media City, NOMA, Speculative Developments |
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Posted on March 9, 2011 by John Cronin
A research report published by a leading commercial property agent indicates that the Edinburgh office market saw a marked improvement in 2010.
In the latest report published by property agents Colliers International it can be seen that there was a 24% increase in transactions for Edinburgh offices in 2010 compared to the previous 12 months. Total floor space take-up during the year amounted to 446,000 sq ft. As Edinburgh is a leading financial centre, lettings to the banking and financial services industry remain popular although activity is below average. Lettings amounted to 54,500 sq ft during 2010, substantially lower than the 10-year average of 114,247 sq ft.
The public sector accounted for one of the largest lets in the city centre with the NHS signing-up for 37,000 sq ft of floor space at the imposing Waverley Gate building (pictured – credit). There were no deals recorded for city centre Edinburgh offices over 40,000 sq ft and only 6 for space greater than 15,000 sq ft.
Colliers suggest that current demand is below trend and that they expect demand from public sector tenants to soften due to austerity measures. The first 2 months of 2011 have been strong however with significant lettings secured. Virgin Money has agreed to let 30,000 sq ft of floor space within the prestigious, Grade A, St Andrews Square scheme. Serviced offices provider Regus have extended their lease on 20,700 sq ft at Conference House.
Colliers estimate that some 300,000 sq ft of floor space remains available for occupation with average, city centre rental prices currently around £27.50 / sq ft.
Posted in Edinburgh |
Tagged Rental Prices, Research, Serviced Offices |
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Posted on March 8, 2011 by John Cronin
Converted offices within a converted Lincolnshire train station have been officially opened by the local council and are now available for start-up businesses.
An empty part of Sleaford train station (pictured) that had been boarded-up for several years has now undergone an 8-month, £125,000 refurbishment scheme to create 8 self-contained offices.
The scheme was officially opened last Friday by North Kesteven District Council Leader Councillor Mrs Marion Brighton, OBE. The council has signed a 15-year lease on the 2,000 sq ft listed building, owned by Network Rail.
The speculative scheme, known as the Sleaford Station Business Centre, is being primarily aimed at start-up businesses. The office suites range in size from 97 sq ft to 883 sq ft and have a rental price of £10 / sq ft. Flexible lease arrangements are available. Enquiries from potential tenants have been received and an initial letting is expected in the near future.
The scheme is part of the wider Sleaford Masterplan which aims to encourage investment and economic growth in the town. Cllr Mrs Brighton said: “The railway station is an important building, at a gateway to Sleaford. For too long it has been an eyesore”. She goes on to say: “We can only hope that as tenants move in to these useful and attractive workspaces, they enjoy every prosperity and success.”
The construction work was undertaken by Taylor Pearson who were awarded the contract in autumn 2010. Marketing agents are Hodgson Elkington.
Posted in Lincolnshire |
Tagged Listed Buildings, Renovations, Speculative Developments |
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Posted on March 7, 2011 by Rob Powell
i2 Office has opened a new serviced office centre in the heart of London’s financial district.
10 Lloyds Avenue in the City of London is a newly refurbished 1960s office building close to Fenchurch Street station and i2 Office says it has already achieved 50% occupancy.
Nick Wentworth Stanley, who joined i2 Office as an Executive Director last December, commented, ““These offices provide the ideal solution for a company looking for a modern office in London’s vibrant financial district. In opening this new business centre we are responding to the high demand for serviced offices in this part of the City which is known, in particular, as being the centre of the insurance and shipping world.”
i2 Office also has serviced office centres in Glasgow, Milton Keynes and London’s Marylebone.
Posted in London |
Tagged i2Office |
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Posted on March 7, 2011 by John Cronin
Plans for a multi-million pound office scheme on the site of a well-known Aberdeen landmark have been submitted.
The Evening Express reports that property developers Stewart Milne Developments have finally submitted plans for the speculative scheme having undertaken a public consultation exercise. The Aberdeen City Council planning database does not however list the application at time of publication. The developers want to develop a new office scheme at the Triple Kirks site where 3 churches were built in 1843. The site and ruined buildings have been derelict since the 1970’s. The remaining church spire is listed and must be incorporated into any new-build scheme.
The £40m scheme, if approved, will offer a 6-storey office building affording some 72,600 sq ft of Grade A floor space (pictured).
The new building, which will also include underground car-parking, is expected to achieve a BREEAM rating of ‘Excellent’. Construction on the site is hampered by a marked difference in adjacent ground levels giving rise to a 1-in-3 slope across the proposed 0.43-acre site.
The proposed scheme has met with some local criticism with some locals unhappy that the building does not fit with existing property in the vicinity. The Aberdeen Voice local news site describes the scale of the proposed office development as: “too large compared with the steeple and the building has a bloated rather bizarre appearance as a result. The blocks are too high compared to the skyline of the surrounding buildings. A five storey building would be more in keeping here.”
Architects for the scheme are Halliday Fraser Munro and marketing agents include CB Richard Ellis.
Posted in Aberdeenshire |
Tagged Listed Buildings, Planning, Speculative Developments |
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Posted on March 4, 2011 by John Cronin
International property investor Hines has announced that work has started on a new office scheme in London.
Hines announced yesterday that construction work has now started on a speculative office scheme to be known as 280 High Holborn, London in an area that developers have attempted to rebrand Midtown. The building replaces the now demolished Chichester House, an 8-storey office building that offered 70,000 sq ft of floor space. Hines acquired the building in April 2007 and achieved planning consent for a new scheme by the end of 2007. Hines had previously announced in August, 2008 that the old offices had been demolished and construction work had commenced on a new-build scheme.
The new scheme (pictured) consists of an 8-storey building that will offer 67,000 sq of office floor space and 3,000 sq ft of ground floor retail space. Individual floor plates will range in size from 7,000 sq ft to 9,400 sq ft. The Grade A scheme is expected to achieve a BREEAM rating of ‘Excellent’. A completion date of autumn, 2012 is expected.
Hines UK Project Director Alexander Knapp said, “We are very optimistic about the leasing prospects for 280 High Holborn as we expect it to be completed at a time when Midtown will have very low levels of Class A supply”.
Architects for the scheme are GMW and the main contractor is Mace who have previously worked with Hines on a mixed-use, residential and office scheme at One Grafton Street, Mayfair. Hines are also expected to complete their 389,000 sq ft Cannon Place office scheme later this year.
Joint marketing agents for 280 High Holborn are Jones Lang LaSalle and DTZ.
Posted in London |
Tagged Demolitions, Speculative Developments |
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