Table of Contents Table of Contents
Previous Page  11 / 32 Next Page
Show Menu
Previous Page 11 / 32 Next Page
Page Background

Derwent London has secured a

133,600 sq ft pre-let (41%) at its

380,000 sq ft headquarters Fitzrovia

development, 80 Charlotte Street,

to engineering firm Arup. Arup has

agreed to a 20 year lease of the lower

floors at a headline office rent of £75

per sq ft.

The deal also saw Derwent

London agree to a conditional put

and call option to sell 8 Fitzroy

Street to Arup, who already occupy

the building which sits opposite 80

Charlotte Street, for £197 million.

Simultaneously Arup has agreed to

vacate 13-17 Fitzroy Street which they

owner occupy, selling the freehold to

Workspace Group for £98.5 million.

This sequence of transactions is a rare

example of not two but three parties’

interests aligning in the congested

central London property market.

CC Land, the investment vehicle of

Chinese property magnate Cheung

Chung-Kui, have completed on their

purchase of The Leadenhall Building

for a record City price tag of £1.15

bn. This equates to a capital value of

£1,893 per sq ft for this iconic piece

of London’s skyline.

Following British Land’s decision

to market their 50% stake in The

Leadenhall Building in December

2016, the deal subsequently evolved

with Oxford Properties agreeing to

put the remaining 50% on the table.

Since then, Canary Wharf Group has

begun marketing a 50% stake in 20

Fenchurch Street (‘The Walkie Talkie’)

with a number of Asian investors

reportedly looking at a potential

purchase. Aside from the obvious

prominence and quality of these two

assets, a weakened pound following

the vote for Brexit in June 2016 is

acting as a significant catalyst for

change in the market for London’s


Slovakian developer HB Reavis has

had a busy start to 2017, exchanging

contracts to buy Elizabeth House

in Waterloo, and reportedly putting

two further development sites under

offer: 120 Moorgate in the City core

and Cardinal Tower in Farringdon.

Collectively this equates to a

consented pipeline of around

1.25 million sq ft.

Elizabeth House is by some

way the largest at 945,085 sq ft,

comprising 740,630 sq ft of office

space, 142 residential units and

12,422 sq ft of retail across two

buildings. JV partners Chelsfield and

London + Regional gained planning

consent for the major mixed use

scheme in July 2015, and has now

exited its position for a reported

price of in excess of £250 million.

HB Reavis has reportedly

agreed to pay close to £50 million

for 120 Moorgate, a 130,000 sq ft

consented office scheme currently

owned by Redevco. Pricing is not

yet reported on Cardinal Lysander’s

12-14 Farringdon Road site, but this

will comprise a further 200,000 sq ft

office scheme. Both developments are

extremely well positioned to benefit

from the delivery of Crossrail in 2018.


Sam Harper,

Senior Surveyor,

rounds up the top

news stories of the

past quarter

The Cheesegrater goes for

Record City Price Tag

HB Reavis Hoovers up

London Pipeline

London at

a Glance

Derwent, Arup and

Workspace tie up Tripartite

Fitzrovia Deal

Orchestrating logistics across London,

in the face of ever-increasing demand

for deliveries, is one of the key issues

facing our capital. Along with the

well-documented rise of online retail

– which has largely accounted for the

growth in urban industrial demand,

there has been a steady decline in the

supply of available land owing to the

value arbitrage in relation to alternative

uses. This is leading the industry to

look for creative solutions, the latest

of which is multi-storey sheds.

The concept is not entirely new,

with plenty of successful examples

in Asian cities, as well as Segro’s

(formerly Brixton’s) 234,000 sq ft

X2 scheme in Heathrow which was

arguably delivered ahead of its time

in 2008. In recent months however

there has been renewed push, with

Segro launching a paper titled ‘Keep

London Working’ and multi-storey

industrial specialists Compagnie Du

Parc (CdP) announcing plans to invest

£80 million over the next 12 months,

principally in Greater London.

Multi-Storey Sheds