The office market is forecast to see a fall in sales values over the next quarter whilst rents are expected to see some growth in comparison to the first quarter. This can be seen as purely a product of the cyclical nature of property and it reacting to other markets; although other headlines may seem more alarming The Guardian has asked could offices be the next big casualty of the banking crisis which on the surface of it may cause worry. At the same time as the Evening Standard tells us of the property market “London copes better than rivals with less vacant office space recorded “ The banking crisis comprises the failing of Silicon Valley Bank and the rescue of Credit Suisse, who had been in trouble for years - so not really a crisis as of yet. Accepted neither of these is great news but whether they a creating the perfect storm for the property industry [...]
What’s a Business Expert? Ed is not sure really as the question is somewhat vague. If you ask it very softly, however, (and we all know from The Times crossword this will involve a “pp” somewhere) you get WhatsApp Business Expert. Now I know what one of those is as Lucy Anderson is one and she would like to connect with our director Mr Close Regarding what a WhatsApp Business Expert actually does, on the other hand, I remain firmly in the dark so if your are reading, Lucy, give Closey a clue before he accepts or not.
Capital & Counties and Shaftesbury have completed their £3.5bn all-share merger to form Shaftesbury Capital. This new company will dominate the Soho and Covent Garden areas of central London. Shaftesbury Capital’s portfolio is focused on Covent Garden, Seven Dials, the Opera Quarter, Carnaby Street, Soho, and Chinatown. The portfolio has been independently valued at £4.9bn Ian Hawksworth, chief executive of the merged group, said: “Today we are delighted to complete the merger, bringing together two highly complementary portfolios to create the leading central London mixed-use REIT, Shaftesbury Capital. We look ahead with confidence, with an experienced and talented team, to deliver long-term economic and social value for stakeholders and contribute to the success of the West End.” Shaftesbury Capital’s assets offer 1.7m sq ft of hospitality, leisure and retail space, around 600,000 sq ft of office space and more than 800 apartments. The annual gross income of the merged group is £178m, while the portfolio’s estimated rental value is £227m [...]
Regus now looks even more attractive? WTF - really? And to whom? My mind drifts back to the early years when he who cannot be named tried to glean earlies on possible suitable premises from us lot doing brochures at Gilbert Doyle. Kinda set the corporate DNA back then methinks! BWV Ed needs to step up his game as Mr F brought this wholly unbelievable email subject line to my attention (along with a possible comparable “Estate Agent Innocent”) Leopards spots and all that jazz!
…or not quite, as US giant appoints JLL to sublet circa 200,000 sq ft at Warner House, Theobalds Road and 160 Old Street. Warner Bros Discovery will remain in around 58,000 square feet at Old Street and will still have a major presence at Chiswick Park. What’s up Doc you may ask? Well this can probably be seen as a trend for more marketed sublet space throughout 2023 as occupiers seek to mitigate rising costs of business rates, utilities, labour whilst already having to deal recession hit revenues
What's Your Take? According to that reliable source of credible information, unsolicited email, January and February saw "record office take-up across London" Being unable to glean anymore from said received newsletter (aside from an interesting and somewhat amusing use of English) I turned to Google to seek ratification of this good news. Alas, I could find none and have, thus far, resisted the temptation to delve further into the Dark Web or enquire of Belcor
Landsec has gained consent for the redevelopment of Red Lion Court, Bankside, part of a one million square foot development programme focused on building a green office cluster in London's Southwark. Red Lion Court will comprise 230,000 sq ft of offices, retail & open public space on the banks of the River Thames, next to Borough Yards. The scheme, designed by the Bjarke Ingels Group, offers floorplates from 18,000 to 26,600 square feet all with access to outdoor spaces, a communal roof terrace and views over the river into the City The building has been designed to be net-zero in construction and operation and by reusing part of the existing building and prioritising low carbon and recycled materials should meet or exceed the Greater London Authority and Southwark borough policy in terms of sustainability, biodiversity and energy efficiency. The building will also be fully electric and feature a sustainable urban drainage system which repurposes rainwater for future use. [...]
Got 125 Bar to Spend? We are all party to receiving various sales propositions via email and sometimes we do need some more bamboo socks from Scottsdale Golf. What has recently left our own Mr F bemused at, however, is the notion that one would consider marketing a £135 million “prestigious Mayfair hotel” in the same manner. It is certainly a departure from the limited run, high end, investment sale brochure with a coordinated release to a small number of highly targeted, predetermined, potential buyers. Maybe the good folk at Globalvestment Capital Partners know more about marketing than most? Ah; just checked their website - so that would be a no.
Transport for London has chosen listed London developer Helical as its preferred investment partner for its commercial office portfolio across central London. The decision is subject to contract negotiations and a 10-day standstill – or cooling off – period. The partnership will develop "high-quality and sustainable" office space above or close to Tube stations at Bank, Paddington and Southwark with all three sites have full planning permission. Bank: above the new station entrance on Cannon Street, this eight-storey development, along with a basement, will include both office and retail space, measuring around 140,000 square feet net internal area external terraces on fifth, sixth and seventh floors and a green roof. A start on site is envisaged next year. Paddington: located by Grand Union Canal and close to the new Elizabeth line station at Paddington, this 19-storey building currently has permission for new office and retail space at around 235,000 square feet NIA. It will include [...]
Logistics Developer and Investor Sees no End to Strong Rental Growth Segro reported a £2 billion pre-tax loss for 2022 compared with a £4.4 billion profit in 2021 under International Financial Reporting Standards accounting rules, due to unrealised valuation losses in its portfolio. The value of its portfolio fell 11% to £17.9 billion last year. The net yield moved out 100 basis points to 4.8% from 3.8%. Adjusted pre-tax profits came in at £386 million last year compared with £356 million in 2021. Strong rental growth cushioned the blow somewhat. Segro sees no end to rental growth. Net rental income rose 18.9% to £522 million from £439 million in 2021. On a like-for-like basis, rental growth rose 6.7% thanks to strong occupier demand and “extremely limited” supply of modern, sustainable warehouse space across Europe. Segro expects vacancy levels to remain low given increases in financing and construction costs. The company said it sees £130 million of reversionary potential [...]