The Weekly Wrap
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.
For any enquiries please contact Jonathan Beilin 0207 456
0727 or Jack Wells 0207 456 0729.
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
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.
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
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%.
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
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.”
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