From Estates Gazette 5.5.12:

West End assets totalling more than £70m have been snapped up this week. A private Russian client of Michael Elliott has bought 7 Howick Place, SW1, from Italian firm Fabbriche for £54m - a 5.3% yield.

The circa 74,000 sq ft building is used as a studio for fashion designer Tom Ford. Ford pays a passing rent of £3.2m pa, equating to £43.10 per sq ft. Elsewhere, Crosstree Real Estate Partners has bought 20 Golden Square, W1, from Scottish Widows Investment Partnership for £20m, a 3.39% yield. Crosstree said the 22,903 sq ft block offered a redevelopment opportunity as leases expire in December next year.

The firm is expected to retain offices in any redevelopment, but is also considering proposals for flats, a restaurant and an art gallery.

Crosstree, which was unrepresented, was founded by Nick Lyle, former head of Blackstone UK's business, and Sean Arnold, who led Starwood's European operations, last August and has £500m of backing from Swiss-Italian billionaire Ernesto Bertarelli.

H2SO advised SWIP and Fabbriche.  

Scottish Widows Investment Partnership, advised by H2SO, has acquired the freehold of Western House at 99 Great Portland Street, London W1 for £12m. The 41,000-sq ft property, which is currently occupied by the BBC, has been acquired by SWIP's Halifax Investment Fund Managers.

Built in the 1930s, the building is currently home to the studios of Radio 2 and Radio 6 music on a long leasehold interest which runs until 2034.

Nick Ireland, Manager of the Halifax Investment Fund Managers, comments: "The recent acquisition of 99 Great Portland Street indicates that there are still interesting real estate opportunities out there.  This is an area of the West End which will be transformed over the next five years with major developments due to complete at the former Middlesex Hospital and Post Office sites. The purchase is in line with the fund's strategy to acquire assets with strong fundamentals, with the ability to unlock long-term capital returns".

The vendors, The Trustees of Viscount Folkestone's 1963 Settlement, were advised by Smiths Gore.

From Estates Gazette 21.4.12

Investment group Sapinda UK is poised to take the top floor of 23 Savile Row, W1, for close to £110 per sq ft, defying reports that hedge funds are being deterred by high Mayfair rents.

It is in final negotiations to take around 10,000 sq ft, including a roof terrace, at the 100,000 sq ft block.

If agreed, the rent will be the highest this cycle and would provide a boost to the proposed £200m disposal of the building.

Several West End agents this week gave contradictory assessments of the attractiveness of the market to hedge funds, with Cushman & Wakefield claiming that some were being forced out of their preferred HQ locations because of soaring rents. It said that five years ago 70% of all hedge funds were based in Mayfair and St James's but that just half now reside in the area.

Knight Frank disagreed. It said that hedge funds were just as active in the West End last year as they were in the 2006 peak.

H2SO and CBRE are advising 23 Savile Row landlord D2 Private; Savills is acting for Sapinda.

All parties declined to comment.

From CoStar News 26.3.12:

Grosvenor Fund Management has leased two floor at its Almack House offices in London's St James's, SW1 to O2 owner Anschutz Entertainment Group.

Grosvenor FM subsidiary Grosvenor London Office Fund has let the ground and lower ground floors at 28 King Street, SW1 to Anschutz Sports Holdings, part of the Anschutz Entertainment Group, which owns and operates over 100 venues worldwide, including The O2.

The two floors, totalling approximately 18,700 sq ft, have been let on 10 year leases, subject to a tenant's break after five years.

Scott Rowland head of offices at Grosvenor Fund Management said: "We are delighted to welcome AEG to the property which we see as further testament to the skills of the Grosvenor Fund Management team to deliver quality real estate assets".

Montagu Evans acted for Anschutz Sports Holdings and DTZ and H2SO acted for the Grosvenor London Office Fund.

From EGi 26.3.12:

Savills has agreed to take all the remaining space at Great Portland Estates' 33 Margaret Street W1.

Savills announced in December that it was leaving Mayfair to take 64,000 sq ft at GPE's Margaret Street development in the West End.

Today the agent announced that it will now prelet the remaining 31,700 sq ft of offices in the building.

In total, Savills will occupy 95,617 sq ft, paying just under £7m pa, which equates to £73.17 per sq ft.

On completion of the building in October this year, Savills will take seven separate 20-year leases on the ground to seventh floors, with the 10th-year tenant breaks previously agreed in the fourth and part fifth floor leases now removed.

GPE chief executive Toby Courtauld said: "This deal continues GPE's successful run of prelettings, taking the total of recent lettings in development properties to over 290,000 sq ft at 33 Margaret Street, 160 Great Portland Street and 240 Blackfriars Road."

Savills chief executive Jeremy Helsby added: "This further preletting in this high-quality building now provides us with the security and flexibility of additional accommodation to satisfy our intended future expansion, whilst also giving us the right to manage and control the building."

GPE was advised by H2SO and Knight Frank. Savills represented itself.

The first issue of 020 - a magazine that H2SO has produced to reflect the vibrancy of London and some of the major developments that will help the Capital move forward in the near future - is now available to download below.

As a property consultancy that focuses on the Capital, we are passionate about everything that makes it unique. It is a city which continues to evolve at pace, and the magazine highlights some of the fascinating projects that reflect this rate of change.

We hope that you enjoy reading 020 and would be delighted to hear your comments.

Download 020 here.

Updated research from leading London office property consultants, H2SO, shows the trend for offices in the capital's West End to be converted to homes is continuing with around 2m square feet of conversions now having planning consent.

H2SO first analysed the trend in groundbreaking research 18 months ago and the latest research update shows that 202,301 sq ft of offices in London's West End were converted to residential accommodation in 2010. This brings the total office space that has been "lost" to the market because of residential development since 2001 to 3.2m sq ft. During the same 10 years, a further 1.3m sq ft-plus was also lost to other uses such as hotel and leisure developments.

While the level of completed residential conversions in 2010 was slightly down on 2009, the study shows that there are planning permissions have been granted for around 2m sq ft of office conversions which have not yet been implemented.

The belief that the trend will now accelerate is further borne out by the fact that in the first quarter of 2011 completed conversions accounted for the removal of more than 75,000 sq ft of offices which suggests that the pace of conversions is progressing at well above the rate seen in 2010.

H2SO partner, Paul Smith, comments: "As high-end residential values continue to outstrip their commercial counterparts, it is inevitable that an increasing number of property owners will continue to explore the option for residential conversion. This update demonstrates that the rate of conversion is not abating and is, in fact, due to start accelerating."

Residential conversions in the West End core of Mayfair and St James's are reflecting capital values of more than £3,000 per sq ft when the corresponding value for offices would be no more than £2,000 per sq ft. This relative disparity in capital values is also reflected in most other West End districts.

Paul Smith comments: "With office development in core West End areas at a historically low level, this further constraint on supply can only put greater pressure on office rents and leave occupiers with a narrowing range of choice. We have already recently seen rents for the best refurbished space in Mayfair once again pass the £100 per sq ft mark".

To view an executive summary of the research please click here

From EGi Online 25.1.12:

Jimmy Choo has followed the trend of other luxury goods retailers by moving its head office to SW1.

The shoes and handbags maker has this week signed for 37,000 sq ft at Land Securities' recently refurbished Ashdown House at 123 Victoria Street, paying around £52 per sq ft on a 10-year lease.

It is moving from smaller offices at Interfocus House, 4 Lancer Square, W8.

Robert Noel, managing director, London Portfolio, Land Securities, said: "Victoria is changing. We have a 10-year vision for this part of the West End, which will see the creation of vibrant new retail, residential, office and public space. We are delighted to welcome Jimmy Choo as yet another global brand to Victoria."

Agents claim government cost cutting and lease expiry dates are freeing up a lot of buildings in SW1, which is traditionally home to government agencies. The cheaper rents and close proximity to their shops is attracting designer labels to the area.

Burberry's HQ is nearby at Horseferry House, while fashion designer Tom Ford opened his first London head office at 7 Howick Place.

H2SO and CBRE advised Land Securities. Harper Dennis Hobbs represented Jimmy Choo.

PRUPIM's flagship 52,000 sq ft office scheme at 30 Berkeley Square has been granted planning permission by Westminster City Council.

The prominence of the site within Mayfair on the north side of Berkeley Square will mean that the Aukett Fitzroy Robinson-designed scheme will have one of the most exclusive business addresses in the world.

David Morris Director of Development at PRUPIM comments: "Extensive re-modelling of the building and the new designs by Aukett Fitzroy Robinson will yield two stunning new penthouse floors with terraces that will provide unrivalled outlooks over Berkeley Square.

"The scheme will also deliver a range of sustainability improvements which will ensure that it continues to provide a benchmark for prime-plus quality in the Mayfair office market."

H2SO has been appointed as letting agents for the building which will be available from summer 2013.

From Property Week 13.1.12:

An Italian development company has put a £60m block in London's Victoria up for sale. Estate Four has instructed H2SO to market the 70,000 sq ft multi-let 7 Howick Place block to raise cash to re-invest elsewhere in its portfolio. Modern art company Philips de Pury occupies 35,000 sq ft at the property, which is a block away from Land Securities' 123 Victoria Street redevelopment. The average lease term is seven years. A sale at the £57.25m asking price would represent a yield of 5.25%.

IVG Institutional Funds has exchanged contracts with The Regent Street Partnership - comprising The Crown Estate and Norges Bank Investment Management - to sell the head lease of 200-206 Regent Street for £50m.

The head lease of 200-206 Regent Street, also known as Jaeger House, has 73 years left to run.

The Grade II listed property comprises 48,000 sq ft of large open plan floorplates over six floors, including 29,000 sq ft of retail space - home to the fashion retailer Jaeger - as well as 19,000 sq ft of office space.

Ali Abbas, Head of UK Transactions at IVG UK Ltd, commented: "Given The Crown Estate's strategic approach towards Regent Street and our very good working relationship with them, they were the natural purchaser for us to treat with. This asset has considerably outperformed our expectations in a short period of time but in turn also remains a sound growth asset with numerous angles over the longer term".

H2SO and Jackson Criss advised IVG.