New Instruction – 66 Prescot Street, London E1
66 Prescot Street is a high quality, multi-let office building in the City of London where we are marketing the refurbished ground floor office space of 11,279 sq ft.
The floor can be split from 6,000 sq ft upwards and tenants are also able to have a self-contained ground floor entrance, however the building does benefit from an impressive, double height entrance. The amenities of the floor include air conditioning, a fully accessible raised floor and a new suspended ceiling with new integrated LED lighting. The building also has bicycle storage and shower facilities that are located in the common parts.
Other tenants in the building include Mitsubishi UFJ Financial Group, Carter Backer Winter LLP, Ingeus UK and Bureau Veritas.
The property is located on the corner of Prescot Street and Leman Street to the east of the City. The building benefits from good transport links with Aldgate, Aldgate East and Tower Hill underground stations within close walking distance. Tower Gateway (DLR), Fenchurch Street (National Rail) are also nearby.
London office market stuns Brexit predictions
According to Financial Times, the decreased levels of construction in The City of London have kept the supply tight and vacancy rates below the 20 year average.
BT Headquarters are planning to relocate within the next 3 years which would not be a risk free investment as the new occupant will have to refurbish the building and find a new tenant as the UK will leave the EU.
Last month, the first round of auction took place on the building at 81 Newgate Street where more than 10 bidders of different nationalities submitted offers. According to some people within the sale, these were over £200m asking price.
The building close to St. Pauls Cathedral has a high level of interest and has been the latest sign of strong demand for London.
According to one of the property agencies, in the first three quarters of this year, around £12bn of central London office real estate has changed hands – in line with last year’s sum which was the highest in five years. For the five year record, the take up of new offices for this year has been on track as in the first 9 months of the year, deals have been agreed on 10.8m sq ft. of new office space including Deutsche Bank, Facebook and the Chinese Government.
‘Booming’ London transactions in 2018
- Plumtree Court - £1.16bn (Korea)
- 5 Broadgate - £1bn (Hong Kong)
- Ropemaker Place - £650m (Singapore)
- The Adelphi Building - £550m (Spain)
- Verde, 10 Bressenden Place - £455m (Germany)
- 15 Canada Square - £400m (Hong Kong)
- 20 Old Bailey - £340m (Korea)
- 60 London, Holborn Viaduct - £320m (Norway)
- Regent Quarter, King’s Cross - £300m (Hong Kong)
Investors from Hong Kong, South Korea, Singapore and Spain has all purchased offices in London this year with tenants in place for over £500m. However there is riskier repositioning opportunities as agents are also popular with investors whereas the building on Lavington Street has attracted over 20 bids.
Last month, The Financial Times headquarters which has been seen as a redevelopment opportunity, was sold by Pearson to the fund manager M&G for £115m – 28% above the asking price. Financial Times will be relocating to The City of London in the next year.
The energy of the London office market contrasts with other types of commercial property especially retail, as the values are decreasing and the market for shopping centres is at its slowest in over two decades.
London office market has stunned the expectations of the Brexit vote when analysts predicted that London office market will fall by as much as 20%.
Germany to swipe £711bn assets from London
Frankfurt is poised to grab a stunning amount of £711bn worth of office space from London as investors move operations to Germany ahead of Brexit.
Frankfurt has been the destination for 30 financial institutions which have applied to the European Central Bank for new licences, or to extend existing ones, according to Frankfurt Main Finance. And this could just be the start of the business migration, as the Frankfurt lobby group expects more assets to be transferred from London.
The group are predicting some banks will first move only what is necessary, meaning more businesses could be poised to move from the British capital. Hubertus Vath, managing director of Frankfurt Main Finance, said: “All in all, we expect a transfer of £750 billion to £800 billion in assets from London to Frankfurt, the majority of which will be transferred in the first quarter of 2019.”