This Week's London Deal Sheet
Derwent London let 84k SF in four office transactions at its 185k SF White Chapel Building, representing 46% of Phase 1. Law firm Reddie & Grose leased 20k SF. Perkins+Will, a US architecture and design firm, will move from 10 Bonhill St to take 30k SF at the building and The Shipowners’ Club will take a further 20k SF. Unruly Media snapped up 14k SF. All are on 10-year leases, and each will pay £4M per year.
The eight-story White Chapel Building was acquired in December 2015 and the refurbishment of Phase 1 is due for completion in Q4. The majority of the remaining available space consists of the top three floors. The building will include a new 7k SF reception area with an independent café, and an external terrace. Phase 2 will predominantly comprise the lower ground floors representing another 85k SF where work could start in 2017.
EXECS
Oliver Jordan joined CBRE as a director within its retail investment team. He was previously with JLL.
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John Mcguire was appointed new business development director for McLaren Construction.
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Lesley Roberts joined Allsop as executive development director of letting and management.
LEASES
Exterion Media signed a 10-year lease for the seventh floor at Lacon London, Blackstone’s 215k SF building at 84 Theobalds Road in the heart of Midtown.
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Newspaper group Newsquest agreed to a 10-year lease with landlord DIB Partnership on 10k SF at 4 Cygnet Court on the edge of Warrington Town Centre. BE Group and Cushman & Wakefield repped the landlord.
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Historic England leased 21k SF for 15 years in Blackstone’s The Atrium Building, Cannon Bridge House, 25 Dowgate Hill. The public body that looks after England's historic environment will pay £53/SF. Bilfinger GVA repped Historic England; GM Real Estate and Savills repped Blackstone.
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8x8 signed a lease for 16k SF at the Relay Building in Aldgate. The cloud-based communications and media company will occupy the third floor at a rent of £55/SF on a 10-year lease. GM Real Estate and Allsop repped the landlord, Angelo Gordon; Brasier Freeth repped 8x8.
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Hammerson signed seven leases totalling over 32k SF in the past 10 days across its UK-wide shopping centre and retail park portfolio—despite economic and political uncertainty caused by Brexit.
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Benugo, the UK-based restaurant, café and catering group, signed a lease at Picton’s Angel Gate Estate for its head office. After a major refurbishment, the unit has been let on a 10-year lease at an annual rate of £151k, reflecting £47.50/SF. Picton was advised by Thompson Yates and Benugo by Strutt and Parker.
DEVELOPMENT
Urban&Civic will develop a £55M leisure-led mixed-use project in Wolverhampton. The company will deliver apartments, a multi-screen cinema, restaurants, bars, a hotel, a multi-level car park and public gathering areas in two phases over five years.
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A fund advised by Clearbell completed the £21M development of two distribution warehouses at Banbury Cross. The two new units are 111k SF and 169k SF, respectively. A major e-tailer has now completed a lease on the 169k SF unit.
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The NHS will redevelop St. George’s Hospital in Havering—and will build a residential-led development with 279 homes, a park and open spaces.
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Morgan Sindall launched its £70M scheme to transform Lambeth’s Town Hall and civic buildings. Plans call for the Grade II listed Brixton Town Hall to be revamped to create more open and accessible buildings for residents and local businesses.
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In Hackney, the former Kingsland Fire Station will be demolished and a new primary school and luxury flats will be built in its place.
FINANCE
Wanda One, the UK subsidiary of China’s largest property company, Dalian Wanda Group, secured £500M in development finance for its residential scheme at One Nine Elms in London.
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ING Real Estate Finance provided a £26.5M loan to real estate investment manager Meadow Partners to finance its recent acquisition of an office building close to the South Bank of London’s River Thames.
