A weekly round up of the latest property news from the central London boroughs
PW reports that Europa Capital and Hobart Partners has pre-let two floors of its Fetter Yard office scheme in London’s Midtown to Marriott International. The deal will see the hotel chain take 50,000 sq ft on a 15-year lease.
PW reports that Coal Drops Yard in King’s Cross has reached 90% occupancy after two retailers signed up to open their first London stores at the scheme. Fashion retailer Twiin and outdoor goods provider Outsiders Store will take 850 sq ft and 2,000 sq ft respectively.
City of London
EG reports that US-based law firm Morrison & Foerster has placed four floors under offer at WRBC Development’s the Scalpel, EC3, with an option to take more space at London’s newest trophy office building. The firm, which advised Softbank on its £24bn acquisition of UK-based semiconductor and software design company ARM Holdings in 2016, is looking to take levels 22 to 25, totalling more than 55,000 sq ft.
City of Westminster
EG reports that Aberdeen Standard Investments’ pension fund has bought the 46,627 sq ft student accommodation block Grosvenor House, Drury Lane WC2, from GH Partnership for £68.8m. The building is let to LSE until September 2027. The pension fund was represented by Bidwells and Savills acted for GH Partnership.
EG reports that Royal London Asset Management is in talks to buy the 103,000 sq ft 23 Saville Row, W1, from LaSalle Investment Management and Quantum Global Real Estate for around £280m, reflecting a sub-4% yield. JLL was instructed to sell the building owned by the pair’s joint venture, Plaza Global Real Estate Partners earlier this year for around £300m, a yield of £3.8%. The jv invests worldwide on behalf of the Angolan sovereign wealth fund.
PW reports that US private equity firm Cerberus Capital Management has taken all 21,000 sq ft of space at 5 Saville Row. The reported 10-year lease will be rent-free for a period of 24 months with rents then ranging from £96/sq ft for lower floors to £105/sq ft for the upper floors.
EG reports that Berkeley Homes is set to submit revisions to its Old Kent Road scheme, SE15. Plans were originally submitted in July 2017 for 1,050 homes in towers of up to 40 storeys. Amendments to the scheme, however, propose 1,300 homes in towers of up to 44 storeys. Issues connected to the amount of affordable housing are understood to be behind the uplift. The 2017 application proposed only 20% affordable housing. According to the Southwark Design Review Panel, the revised scheme will provide 35% affordable housing with a 70/30 split between rented and shared ownership, in line with GLA policy
PW reports that Westferry Developments has doubled the number of homes it plans to build on the former site of the Westferry Printworks. Initial consent was granted in 2016 for 722 new homes, but a new planning application to Tower Hamlets council includes 1,540 units, as well other elements including a secondary school and retail space.