- 33 Margaret Street secures first occupier
- Orchard picks Conduit Street
- Moët & Chandon find SW1 HQ
- 3 Burlington Gardens letting
- Max charters agents for St Katharine Docks
- Fenwick's full house
- Scottish Widows in £32m deals
- iPad improves property viewings
- Expedia books into Angel Building
- £32.3m Marylebone purchase
- 40 Bruton Street Fully Let
- 175 Oxford Street letting
- New partners appointed
- Hedge fund signs at 23 Savile Row
- Meadow in Kensington High Street
- Apple signs up at St Martin’s Courtyard
- H2SO promote duo
- SWIP makes £36m West End buy
- Teachers fund buys into Google HQ
- Lucidus signs at 55 New Bond Street
- Brands seek headquarters
- Rhône sign up at 40 Bruton Street
- H2SO nominated in Property Awards
- Cadogan shop in King's Road
- Invista sells in SW1 for £34m
- GMS sells Covent Garden building for £10.3m
33 Margaret Street secures first occupier
From Property Week online 21.12.11:
Great Portland Estates has agreed to pre-let the majority of the office space at 33 Margaret Street to Savills.
Savills will relocate from its two existing premises north and south of Berkeley Square on completion of the development, estimated to occur in October 2012.
The 102,291 sq ft building, formerly Marcol House, includes 95,165 sq ft of office space and 7,126 sq ft of retail space. The building was acquired as a development opportunity by GPE from Dubai World in November 2009.
Savills will take five separate 20 year leases on ground to part fifth floors, totalling 64,142 sq ft and will pay £4.4m per annum after 30 months rent-free.
The initial rent is valued at approximately £68.60 per sq ft. The fourth and part fifth floor leases, which account for 22,061 sq. ft and £1.67m per annum, will be subject to a tenant-only option to break at the tenth year.
If lease breaks are taken advantage of, the penalty payable by the tenant will be the equivalent of 15 months rent.
The deal means that 31,023 sq ft will remain unoccupied on part of the fifth floor, as will the entirety of the sixth and seventh floors. However, up until completion, June 2012, Savills will be permitted to take additional space in the building, should they require it, on those two floors.
H2SO and Knight Frank are joint letting agents for 33 Margaret Street.
Orchard picks Conduit Street
Orchard Street Investment Management, the specialist commercial property investment manager, has exchanged contracts to acquire 61-65 Conduit Street, London, W1, from Threadneedle Investments for £36m, reflecting a net initial yield of 4.7%. The acquisition was made on behalf of St James's Place property funds.
The property, in the heart of London's West End, is fully let and provides a total of 32,000 sq ft of office and retail space across the ground and five upper floors.
Commenting on the acquisition Chris Bartram, Chairman at Orchard Street said: "This is a high quality asset and an excellent addition to the St James's Place portfolio. The West End office market is one of the few areas with genuine prospects for rental growth and 61-65 Conduit Street is well placed to benefit from this".
H2SO advised Orchard Street in the acquisition.
Moët & Chandon find SW1 HQ
From Property Week 21.10.11:
Moët & Chandon will move into a new European headquarters in London's West End, after sparkling third-quarter results from its parent company this week.
Louis Vuitton Moët Hennessy has signed a 24,000 sq ft lease at 12-18 Grosvenor Gardens in Victoria for subsidiaries Moët Hennessy UK and Europe, after announcing a 15% rise in revenues on Tuesday.
It instructed H2SO to find a replacement for its 15,000 sq ft offices at 13 Grosvenor Crescent in February.
The Grosvenor Gardens lease is 15 years and the rent just more than £40 per sq ft.
The landlord is a private UK family trust advised by Tuckerman.
3 Burlington Gardens letting
From EGi 14.10.11:
Rent of £100 per sq ft - one of the highest rents paid this cycle for London refurbished offices - is understood to have been agreed by Index Ventures.
The venture capitalist is taking the 6,320 sq ft fifth floor at 3 Burlington Gardens, W1, on a 10-year lease.
Epic is owner of the building, which is also home to Lord Browne's office.
H2SO and Knight Frank are letting agents.
Max charters agents for St Katharine Docks
From Estates Gazette 16.9.11:
Nick Leslau's Max Property Group has hired agents to find tenants for his newly acquired 500,000 sq ft St Katharine Docks development, E1.
H2SO, Savills and Ingleby Trice have been appointed to let the whole scheme, but will first focus on the 130,000 sq ft Commodity Quay, due for completion in 2013, and the 30,000 sq ft refurbishment of International House.Traditional City and West End tenants are being sought.
St Katharine Docks was acquired for £156.3m by Max Property Group in July, backed by £86.7m of financing from Eurohypo.
Fenwick's full house
From Property Week 9.9.11:
Fenwick has fully let its 20,812 sq ft office block at 55 New Bond Street, in London's Mayfair, after hedge fund manager LMR Partners took the entire first floor this week.
Among the other tenants is hedge fund manager Lucidus Capital Partners, which is paying £70 per sq ft, one of the highest rents on the street. H2SO and Cushman & Wakefield advised Fenwick.
Scottish Widows in £32m deals
From Property Week 22.7.11:
Scottish Widows Investment Partnership (SWIP) has this week completed £32m of central London transactions.
It sold 17-19 Rochester Row (pictured above) in Victoria for more than £28m, reflecting a yield of 5.8%, to private clients of UBS. The 1987 property comprises 46,000 sq ft of offices and a residential building, Stockton Court, which has six flats and parking.
In Soho, SWIP has bought 19 Golden Square for £4.5m, reflecting a 4% net initial yield, from clients of Pilcher Hershman. The average rent at the 4,715 sq ft multi-let property is £28 per sq ft.
H2SO advised SWIP; Tudor Toone advised the buyer of Rochester Row.
iPad improves property viewings
From Estates Gazette 16.7.11:
Not got your IPad app up and running yet? Come along! West End agent H2SO has just served up its second Apple application. Next week, Hammerson will launch its first: a 500Mb monster for London Wall Place, which took a year to build and cost £150,000.
But first let's take a look at the software which cost H2SO a mere £3,500 - plus countless man-hours, put in by partner, Ed Betts. Even more hours perhaps than the first gimmicky app young Ed came up with to enable occupiers to figure how many sq ft they may need to rent.
But there is nothing gimmicky about his new app, which essentially transfers the electronic marketing of investment properties from the traditional website to the more portable, more strokable and so much sexier IPad2.
Ed had to pay a geek £3,500 for bespoke software. Some geek will surely soon build a "white label" app, which agents can label as their own and insert property details - but perhaps not one to fly you through a 600,000 sq ft City development, the one that has cost Hammerson £150,000.
That's less than the cost of a traditional 360° fly-through, says Hammerson marketing manager Marie-Louise Preen. And for a bit less money you get a lot more. "For a start, it makes the physical 3-D models redundant," she says.
Indeed. A quick play in the Covent Garden offices of marketing agency and app builder Bostock & Pollitt showed why. The HD-quality fly-through was supplemented by a constantly updated live map of the area. Want to book a restaurant? Click through here
But it is the literally dizzying ability to stand in London Wall and tilt and twist the tablet to see on screen what will one day appear in front of you that Jonty Roots of Bostock & Pollitt calls "the game changer," thanks to the internal gyroscope and GPS of the IPad2.
Expedia books into Angel Building
Expedia has agreed to lease the top two floors of the Angel Building at 407 St John Street, London EC1. The world's largest online travel company will occupy 81,260 sq ft on a 10-year lease with no breaks, a rent review in year five and a rent-free period of 24 months. They will pay a rent of £40 per sq ft.
The Angel Building redevelopment is now 95% let. H2SO, CBRE, DTZ and Pilcher Hershman are leasing agents on the project. Cushman & Wakefield advised Expedia.
£32.3m Marylebone purchase
Scottish Widows Investment Partnership (SWIP) on behalf of HIFML UK has bought the 999-year leasehold interest in 35 Marylebone High Street, London W1 in an off-market deal for £32.3m.
The vendor was Conegate, the property investment vehicle of the publisher and West Ham United joint owner, David Sullivan. The 47,421-sq ft office building is currently let to the BBC. However, the corporation is set to vacate the property in six months' time after which SWIP and its development adviser, Welbeck Land, will explore options for the property.
Nick Ireland, Investment Director, Real Estate at SWIP comments: "The area around Marylebone High Street is one of the most vibrant places to live and work in London. This property occupies a 0.38-acre site and offers strong growth potential and excellent active management opportunities. We shall evaluate the options and look to progress our plans once vacant possession is obtained".
H2SO advised SWIP while Harris Associates acted for Conegate.
40 Bruton Street Fully Let
Platinum Equity has taken 3,225 sq ft of offices at PRUPIM'S 40 Bruton Street development in the heart of London's Mayfair. The 14,847 sq ft of offices in the building are now fully let.
In the latest deal, the Californian based mergers & acquisitions specialist has taken the entire second floor on a 10-year lease at an initial rent of £98.50 per sq ft. The deal was subject to market incentives with Platinum receiving the benefit of a break option at year five of the lease.
Giles Difford, Asset Management (Commercial) Director at global real estate fund managers, PRUPIM, commented: "We are delighted with the success of 40 Bruton Street from both a retail and commercial viewpoint, and to have secured occupiers of such a high calibre.
"The success of the project underlines a continuing global demand for top quality developments in prime locations from demanding occupiers who will only accept the very highest standards. The transaction is testament to the strengthening demand for prime West End offices from the international financial sector, and PRUPIM's investment in the project reflects the opportunities real estate fund managers see in this sector."
Other occupiers in the building include Rhône Group and William Blair.
H2SO advised PRUPIM. Vail Williams acted for Platinum Equity.
175 Oxford Street letting
From Property Week 27.5.11:
NFU Mutual and Salmon Property have signed the first office tenant at their £30m 175 Oxford Street redevelopment in London.
Korean oil company, SK Energy, is taking the 3,195-sq ft third floor on a 10-year lease at a rent of £47.50 per sq ft.
H2SO and Knight Frank are the letting agents. Pickthorn advised SK Energy.
New partners appointed
H2SO has expanded its teams with two new key appointments.
Felix Fiennes has agreed to join as a Partner in its Lease Advisory & Asset Management team while Richard Townsend is joining the firm as a Partner in the West End Office Agency Team.
Announcing the appointments, H2SO founding partner, Paul Smith commented: "H2SO is based on the strategy that a niche consultancy can provide the highest level of expertise and experience across the investment, development, agency and professional sectors. It is the only central London property niche consultancy to offer this range and depth of advice.
"The appointment of Felix and Richard - who are both vastly experienced and respected in the market - expands our capabilities in two key area areas of the business."
Felix Fiennes was formerly a Director in the lease consultancy department at CBRE where he specialised in West End offices advising a wide variety of landlords and tenants. Prior to that, he had worked at Savills and Cluttons.
Nick Powell, Head of H2SO Lease Advisory & Asset Management, commented: "Lease advice is an essential component of H2SO's service offer. The firm's blend of market knowledge and technical expertise gives it a unique capability in this area.
"Felix is one of the leading experts in the market and brings with him a wealth of experience. He has advised on many high profile lease issues for a wide range of clients including Aberdeen Property Investors, Aviva, The Cadogan Estate, and the Imperial War Museum.
"He will extend our lease advisory capabilities and reinforce the quality of our service."
Richard Townsend is a leading West End office agent and was previously with Drivers Jonas Deloitte and DTZ. He was worked on many of the West End's most prominent developments including Wells & More, 14 St George Street/50 New Bond Street and Charles House.
Paul Smith commented: "Richard has a proven track record in the West End. We worked together at DTZ so I'm well aware of his strengths, and most recently H2SO has worked with him as joint agents on a number of successful projects. We're delighted he's joining the team."
In the 2010 CoStar statistics for West End office agency, H2SO were placed fourth in the Agents by Instruction rankings with just under 500,000 sq ft of instructions. Among the projects it is currently advising on are Great Portland Estates' redevelopment of Marcol House and Land Securities' 123 Victoria Street project.
Hedge fund signs at 23 Savile Row
D2 Private has secured another high profile letting at their leading Mayfair development, 23 Savile Row - often considered to be a bellwether of the West End Office Market.
Major hedge fund, York Capital Management, which manages over $15bn of assets, has acquired 7,610 sq ft on the part fourth floor on a 10-year term at a rent of £97.50 per sq ft with a rent-free package of just 12 months.
The transaction means that 75% of the building has been let at an average rent of over £91.50 per sq ft. Only 25,000 sq ft now remains available on the first and second floors.
With only four high-quality, new-build or refurbishment schemes offering more than 25,000 sq ft in the West End core being delivered to the market between now and Q4 2012, H2SO forecasts that prime office rents will reach at least £105 per sq ft by the end of 2011.
As a consequence D2 Private is now seeking a rent in excess of £100 per sq ft for the remaining office space at 23 Savile Row, which is available in units from 7,000 to 25,000 sq ft.
CB Richard Ellis and H2SO advised D2 Private with GVA acting for York Capital Management.
Meadow in Kensington High Street
From Property Week Online 26.4.11:
Meadow Partners' Real Estate Fund has taken control of Kensington Arcade in west London from Englander Group.
The deal follows a £100m restructuring of the debt secured against the building with the lender and owner of the 140,000 sq ft property, Eliasz Englander's private investment company.
DTZ was instructed to sell it in December 2009 and it was withdrawn in April 2010 after failing to sell.
The property is leased to tenants including Boots, Como Holdings, Hutchinson 3G and the National Basketball Association. Meadow, which was advised by H2SO, plans to improve the property's retail mix.
Apple signs up at St Martin’s Courtyard
Apple is to occupy 7,181 sq ft of offices at St Martin's Courtyard - the mixed-use development in London's Covent Garden by Longmartin, a joint venture of Shaftesbury plc and The Mercers Company.
The technology giant has taken the second and third floors in 10 Slingsby Place on a 15-year lease. With August Equity also having taken the 4,842-sq ft first floor, the building is now fully let.
Elsewhere in the development, the multi-national personal healthcare manufacturer, PZ Cussons plc, has taken the entire 11,530 sq ft 14 Upper St Upper Martin's Lane on a 10-year lease. In January 2010, recruitment consultants, Robert Walters, took a prelet of 43,000 sq ft of offices in 11 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.
"The scheme's location and quality of offices together with exclusive shops, restaurants and contemporary living space is demonstrating how a complementary mix of uses can come together to provide a superb environment."
The development covers nearly two acres in the heart of Covent Garden bounded by Upper St Martin's Lane, Long Acre, Shelton Street and Mercer Street. It provides 101,000 sq ft of offices; 70,000 sq ft of retailing in 23 shops; 8 restaurants; and 75 apartments.
H2SO and EA Shaw are letting agents for the offices at St Martin's Courtyard. Cushman & Wakefield advised Apple while Cyril Leonard & Partners acted for August Equity.
H2SO promote duo
H2SO has promoted Ed Betts (above left) to Partner and Oliver King to Associate Partner.
H2SO founding partner, Paul Smith, commented: "Ed and Oliver have made important contributions to H2SO's success since the firm was established and we are delighted to recognise that with these promotions".
SWIP makes £36m West End buy
Scottish Widows Investment Partnership (SWIP), on behalf of Scottish Widows Unit Funds, has bought 1-2 Welbeck Street in London's West End for £36m in an off-market deal.The prime office building provides eight floors of space currently let to Debenhams plc at an annual rent of £1.43m.
Debenhams' lease expires in 2013 and there is planning consent for a 53,100-sq ft redevelopment of the building to provide office, retail and residential space.
James McLean, Investment Manager, Real Estate at SWIP comments: "This purchase is in line with the fund's strategy to increase weightings in Central London and take advantage of the strong rental growth prospects in this sector. SWIP's strong transactional reputation in the market and its ability to operate effectively were key in securing this core West End property off-market."
H2SO advised SWIP. The vendors were private clients of GM Real Estate.
Teachers fund buys into Google HQ
From Property Week 4.3.2011:
Teachers fund buys into Google HQ
The US teachers' pension fund TIAA-CREF has been confirmed as the buyer of Henderson Global Investors' 50% stake in Google's London headquarters, Belgrave House.
It is paying £108m, reflecting a 5.97% yield, as revealed by
Property Week (03.12.10). H2SO advised Henderson; Knight Frank
Lucidus signs at 55 New Bond Street
From Property Week 25.2.11:
Hedge Fund manager Lucidus Capital has leased the third floor of Fenwick's 55 New Bond Street. The 5,741 sq ft office letting, which was sealed last week, will cost Lucidus £70 per sq ft.
Cushman & Wakefield and H2SO represented Fenwick and Charter Land represented the occupier.
Mark Fenwick, chairman of Fenwick, said, "Lucidus will be a driver for an excellent tenant mix in this development, adjoining our store on one of the most desirable streets in London."
Brands seek headquarters
From Property Week 18.2.11:
A gamut of names from across the fashion spectrum are lining up to take more than 100,000 sq ft of offices in central London. Calvin Klein has begun a search for 30,000-40,000 sq ft close to travel links at Paddington or King's Cross.
The US designer wants to sign a 15-year lease, with a break at year 10, by the third quarter of 2012. A prelet at Development Securities' Paddington Central, Argent's King's Cross Central or British Land's Regent's Place are be among the label's options.
Department store Debenhams is already close to signing an office prelet of up to 150,000 sq ft at the North East Quadrant of Regent's Place.
Champagne brand Moët & Chandon, which is part of the LVMH luxury goods stable, is on the hunt for offices. It occupies 15,000 sq ft at 13 Grosvenor Crescent, but the landlord, an Irish investor, wants to enfranchise the freehold in order to convert the property from office to residential use.
Fashion retailer All Saints is understood to be searching for up to 50,000 sq ft of offices. It plans to take space in the Shoreditch area, preferably during 2011, on a 15-year lease.
A potential candidate for All Saints would be Derwent London's Angel Building in Islington, but it is unclear whether the retailer would be able to afford a rent in the £30s/sq ft.
Gucci Group is said to have placed under offer 8,000 sq ft at 125 Shaftesbury Avenue at more than £30/sq ft. The fashion house would use the building as its main London administrative office. It emerged in June 2010 that it was quitting its Grafton Street headquarters in Mayfair and relocating most of its operations to Switzerland.
Clothing brand Jane Norman has also taken 11,000 sq ft of offices on Tenterden Street in Mayfair on a seven-year lease at around £39/sq ft.
Susan Earl Commercial and Western Ridge Consultancy are advising Calvin Klein; H2SO is advising Moët & Chandon; Brogan Danvers Gold advises All Saints and Jane Norman; McHardy Wilson advises Gucci Group and CB Richard Ellis advises Debenhams.
All parties declined to comment.
Rhône sign up at 40 Bruton Street
Rhône Group LLP has taken 7,750 sq ft of offices at real estate fund manager PRUPIM'S 40 Bruton Street development in the heart of London's Mayfair.
The privately-owned international investment firm has taken the fourth, fifth and sixth floors on 10 year leases. The firm intends to occupy the fourth and fifth floors and will be bringing the top floor to the market by way of sublease.
The transaction follows the letting of the 3,225 sq ft third floor to William Blair International. Only the 3,225 sq ft second floor now remains available at a guide rent of "high £90s per sq ft".
Giles Difford, Asset Management (Commercial) Director at PRUPIM, commented: "We are delighted with the success of 40 Bruton Street from both a retail and commercial viewpoint, and to have secured occupiers of such a high calibre.
"The success of the project underlines a continuing demand for top quality developments in prime locations from demanding occupiers who will only accept the very highest standards and is testament to the strengthening demand for prime West End offices from the international financial sector."
H2SO acted for PRUPIM, CBRE for Rhône Group and JLL for William Blair.
H2SO nominated in Property Awards
H2SO has been shortlisted for awards in two categories at this year's Property Awards.
The firm has been nominated for the Investment Agency of the Year Award and the Newcomer of the Year Award.
Now in their 16th year, the awards will this year take place on April 5 at the Grosvenor House Hotel in London's West End.
For more information, please click here
Cadogan shop in King's Road
Cadogan Estates, advised by H2SO, has bought 55-59 King's Road, London SW3 for £8.51m. The purchase - from The National Farmers Union Mutual Insurance Society - reflected a yield of 4.45%
The 5,366-sq ft property is let to Crocs UK and Jones Bootmaker. Chapman Petrie advised the vendor.
Invista sells in SW1 for £34m
Invista Real Estate, on behalf of clients, has sold the 73-year headleasehold interest in 10 Spring Gardens, SW1 to the property's freeholder, the Crown Estate, for £34m. The sale reflects a yield of 6.7%.
The 77,452-sq ft building is occupied by the British Council as its UK headquarters. The council's lease has a further nine years to run.
Invista Real Estate was advised in the sale by H2SO. GM Real Estate acted for the Crown Estate.
GMS sells Covent Garden building for £10.3m
GMS Estates, advised by H2SO and Martin Cramer Associates, has sold 17-19 Bedford Street in London's Covent Garden for £10.3m.
Advised by EA Shaw and Leslie Perkins, Dukelease Properties has bought the 16,349-sq ft office building that is currently let to MWB Business Centres at a rent of £350,000 per year.
Commenting on the deal, H2SO's David Hanrahan, said: "The yield on the sale - around 3.25% - reflects the potential that the building offers for a residential conversion which could unlock further value". The lease to MWB expires in September of next year.
Dukelease owns a number of mixed-use buildings throughout London and earlier this year bought, in partnership with Scottish Widows Unit Fund, Charlotte House in Windmill Street, W1 - another office building with potential for residential conversion.
Recent research from H2SO has identified around 1.8m sq ft of office space in London's West End on which planning permission has been granted for conversion to residential.