A weekly round up of the latest property news from the central London boroughs
City of London
PW reports that McCann Worldgroup UK has signed a 15-year lease for a new 148,000 sq ft office at 135 Bishopsgate, to consolidate 11 London-based agencies. The businesses are being brought together for the first time to boost interaction and collaboration between McCann Worldgroup’s brands.
PW reports that Singaporean investor City Developments (CDL) has paid Blackstone £385m for 125 Broad Street in the City of London.- the former home of the London Stock Exchange. Blackstone put the 26- storey 125 Old Broad Street on the market late last year with a guide price of £430m. The deal for the 329,000 sq ft office tower, which equates to £1,170/sq ft and reflects yield of 4.7%, is CDL’s second office acquisition in London in a matter of weeks.
PW reports that the British Steel Pension Fund has put Midtown office building 15 Fetter Lane on the market for the first time in 40 years. The pension fund has instructed CBRE to sell the 85,000 sq ft, seven storey property for in excess of £92.5m. This would reflect a net initial yield of 5% and a capital value of £1,084/sq ft.
City of Westminster
EG reports that Great Portland Estates has completed a land buy-back from Transport for London at its Hanover Square development, W1. The GHS partnership, a joint venture between GPE and the Hong Kong Monetary Authority, acquired the site through the grant of two 150- year leases, which are worth £75.4m. It has entered into an agreement with TFL to complete construction of the over-station development at the Elizabeth Line’s eastern entrance to the Bond Street station. It is expected to open in 2020.
EG reports that DWS and Deutsche Hypo have agreed an £85m financing package for 20-24 Carlton House Terrace, SW1. The building serves as the UK headquarters for De Beers. The companies will relocate to a new headquarters at 17 Charterhouse Street, EC1, in March 2020. Clivedale plans to refurbish or completely redevelop 20-24 Carlton House Terrace and will work closely with The Crown Estate, immediate neighbours and Westminster City Council.
EG reports that CBRE has been appointed to sell build-to-rent scheme Dalston Works, E8, for £55m. The scheme, operated by Native at 69-73 Dalston Lane, comprises 121 one-, two- and three- bedroom flats across a not area of 74,992 sq ft, with a further 38, 740 sq ft of commercial space. Investors will be able to purchase both the residential and commercial components, or the residential element on its own.
EG reports that UK investment manager M&G Real Estate is in talks to buy the Financial Times’ SE1 headquarters and lease it back to WPP. The advertising group has been in talks to acquire the FT’s headquarters at 1 Southwark Bridge, SE1, for £93m from the newspaper’s former owner, Pearson.
EG reports that Southwark Council has approved Avanton’s controversial plans for three towers providing 1,152 homes on the Ruby Triangle site on the Old Kent Road, SE15. Plans call for the demolition of the existing buildings and development of five mixed-use residential towers of 17, 40 and 48 storeys on the 3.5-acre site bounded by the Old Kent Road, Ruby Street and Sandgate Street.