The Weekly Wrap
Rocket Properties close in on Ibex House, EC3 for £123m
According to CoStar, Ibex House is close to being sold for around £123m to the private
London investor and developer, Rocket Properties. Following strong levels of interest
in the City office development, Rocket Properties have agreed to pay just over
the £120m asking price to secure the deal.
Allsop have been formally selling the 191,000 sq ft City
office development since July on behalf of Israeli based investor, Harel
Insurance. The sale reflects a net initial yield of 5.02% and a capital value
of £647 per sq ft.
The building is located on the Minories in London’s Tech
Belt, close to Whitechapel and Aldgate. The grade II listed building stands on
0.75-acre site and is let to 28 tenants including BBC Media Action, Capita
Business Services, London Headquarters of PLP Architecture, Breast Cancer Now,
Lark Group and Virgin Active.
The location is no stranger to Rocket as they have completed
deals on Old Street having bought the Atlas Building and in 2015 securing a
£240m deal from Lloyds Bank, Bank of East Asia and ICBC to build out the
development, comprising a 40 storey residential tower with over 300 apartments,
an 82,000 sq ft office building and 9,000 sq ft of retail space for cafés,
shops and restaurants.
The unexpired term is weighted at 5.25 years to expiry and
2.98 years to lease breaks. Ibex House produces a gross income of £6.42m per
year, reflecting £34.68 per sq ft overall. 12 months of rental top up will be
provided by Harel on all of the vacant units – 19,625 sq ft.
The refurbishment and re-letting of vacant space will
possibly increase the rental income as well as obtaining rental uplifts through
the upcoming rent reviews and lease events.
Draft Transport Strategy promotes cyclists and pedestrians for the City
The City of London has set out plans to remove cars from half
of its streets and implement a 15 mph speed limit throughout. This will, in
turn, encourage more people to ride bikes thereby making it “safer and more
pleasant” to do so.
The Corporation of London, which governs the City, says that
93% of commuter travel there is by public transport (84%), walking (5%) or
cycling (4%), with fewer than 5% of workers driving in.
Within the City itself, walking is by far the most common way
people get around, with more than three quarters of a million trips by foot
every day. Meanwhile, cyclists make up a quarter of all vehicles on the City’s
streets and in some locations can account for more than 50 per cent during rush
Proposals to get more people cycling include limiting motor
vehicles, or even removing them altogether, on key routes at busy times as well
as building protected cycle lanes with the development of a cycle network
throughout the City. We have seen cycle parking facilities in office buildings
in the City become an important amenity to have as well as shower
The Draft Transport Strategy is due to be approved by the
City’s Planning and Transportation Committee on 30 October with the final
document, following consultation, to be submitted for adoption in March next
It says: “We want the range of people choosing to cycle to
match the diversity of people who live, work and study in or visit the City.”
“Most people, whether they choose to cycle or not, will
consider cycling to be a safe, easy and pleasant way to travel around the
Square Mile. Reduced traffic, slower speeds and a dense network of cycle
friendly streets will mean that anyone who wishes to cycle is not prevented
from doing so because of concerns about safety.”
“The cycle network will cater for all types of cycles,
including cycles as mobility aids and cargo cycles. Different types of cycles
will also be available for hire across the City, supporting more flexible
cycling. A safer and more relaxed cycling experience will in turn encourage
safer and more relaxed cycling behaviour that reflects the priority given to
people walking on the City’s streets.”
The Draft Transport Strategy also envisions pedestrian
priority zones where cars, vans, buses and taxis would be banned except for
access, including in the areas around Moorgate and Liverpool Street stations.
The Corporation of London has already banned all traffic
other than bicycles and buses from the roads around Bank Junction between 7am
and 7pm on weekdays.
Bloomberg wins 2018
Riba Stirling Prize!
According to a recent report, Bloomberg’s European headquarters, designed by Foster and
Partners, has won the 2018 Riba Stirling Prize for best new building in the UK.
The award furthers the accolade environmental experts have given it as the world’s
most sustainable office building.
"Bloomberg is comprised of two buildings connected by a
bridge. Each sit either side of a new public arcade, which re-establishes an ancient
Roman road”. The scheme also incorporates new access to Bank Underground
station, cafes and restaurants, and a museum displaying the Roman Temple of
Mithras. Altogether, the scheme has set a new benchmark for future office
designs and city planning.
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