LDG London Commercial Property

CB Richard Ellis September Reports

noreply@blogger.com (LDG London Estate Agents) — Thu, 09 Sep 2010 11:12:00 +0000

Central London September Report - Leasing Levels Exceed Last Year But Take-Up Weakens

Take-up dropped 58% in Central London to 0.6m sq ft with only the West End higher over the month.

Availability in Central London fell marginally to 15.0m sq ft.

Active demand fell to 9.3m sq ft - its lowest level since January.

For the Full Report Click Here

UK Property Returns Steady in August

noreply@blogger.com (LDG London Estate Agents) — Wed, 08 Sep 2010 11:16:00 +0000

CB Richard Ellis’ latest UK Monthly Index shows that the All Property total return slowed only marginally in August, to 0.8% from 0.9% in the previous month. Capital growth increased by 0.3% for the month due to a small amount of yield compression, as rental values remained unchanged from July. August’s return brings the year-to-date total return to 12.3%, with capital values up 7.5% in 2010.

The CB Richard Ellis Monthly Index showed:

- All Property total return was 0.8% in August, with annual returns of 26.3%.

- All Property capital growth was 0.3% in August, with values up 7.5% since the start of the year.

- The strongest performing market sub-sector over the month was again Central London offices, which recorded total returns of 1.0% and capital growth of 0.6%.

- All Property rental values were flat over the month, but down 1.0% in 2010.

- All Property equivalent yields were unchanged for the third successive month at 6.9%.

Foreign buyers cause London commercial property investment to boom

noreply@blogger.com (LDG London Estate Agents) — Tue, 17 Aug 2010 09:56:00 +0000

Foreign buyers cause London commercial property investment to boom. A new report has revealed that commercial property investment activity in London has boomed over the last few months due to rising levels of interest from international buyers.

According to CB Richard Ellis, strong demand resulted in central London investment volumes increasing significantly during the second quarter of 2010, which saw turnover rise by 57 per cent to reach £1.9 billion.

Central London Property Investments Rise to £1.9bn

noreply@blogger.com (LDG London Estate Agents) — Fri, 13 Aug 2010 13:31:00 +0000

Central London investment volumes rose sharply during the second quarter as strong investor demand was satisfied following an increase in stock on the market, reports Investor Today; Investment turnover rose 57% over the quarter to reach £1.9billion.

Mike Edwards, Head of City Investment, CB Richard Ellis, said: "With investor demand still strong, investment volumes are expected to remain high. Overseas buyers remain very active in the market and accounted for 62% of total investment volume. The acquisition of the Knightsbridge Estate pushed Middle Eastern investors’ share of Central London investment purchases to 45%.

"The Germans were still quite active and were responsible for 11% of investments. On the domestic side, UK property companies and UK institutions continued to show interest in the market and accounted for 19% and 14% of investments respectively."

Prime office yields fell to 5.5% in the City and 4.25% in the West End – prime yields have compressed in each market by 125 basis points since the middle of last year.

Shaftesbury West End Property Port Folio Flourishes

noreply@blogger.com (LDG London Estate Agents) — Thu, 12 Aug 2010 13:28:00 +0000

London-focused property company Shaftesbury (SHB.L) remains on the hunt for new buys in its core West End market, as its enduring status as a tourist magnet helps to offset property market chills sweeping across Britain,Reuters reports.

"Although much uncertainty persists regarding the future direction of both the domestic and international economies, London's West End continues to flourish, thanks to unrivalled attractions which bring growing numbers of visitors," Shaftesbury said in a trading update from Apr. 1 to date.

"We are confident that the underlying strengths of the locations in which we invest and our management strategy will continue to deliver sustained out-performance in income and capital values," the statement said.

Shaftesbury, which owns more than 500 shops, restaurants and bars in the West End, has bought 63 million pounds ($99 million) of property in the 10 months to July 31 and has committed debt facilities of 575 million pounds to fuel a further investment spree.

It said completion of its St Martin's Courtyard development, part of a joint venture with the Mercers' Company in Covent Garden, was due in phases from this autumn.

To date, 72 percent of the scheme's space has been let, pre-let or is under offer, generating a total rental value of 10.5 million pounds. It said it was seeing "active interest" in the remaining space.

Dubai World Sell Off West End Property

noreply@blogger.com (LDG London Estate Agents) — Wed, 11 Aug 2010 13:24:00 +0000

Istithmar World,the overseas investment arm of Dubai World, has reportedly sold an office building on London’s Trafalgar Square for $272 million. Grand Buildings, the landmark Victorian office property in London’s West End, was bought by a private Russian investor, according to various reports.

The sale of the London property came as no surprise as Dubai World, which manages a group of businesses, has said it planned to sell assets to repay creditors as it seeks to renegotiate the terms of $23.5 billion in debt.

In November, Istithmar sold two properties in the same district to Great Portland Estates Plc for £10 million plus a share of the buildings’ future profits.

Istithmar bought the 200,000 square-foot Grand Buildings in 2005 for £155 million five years ago. Grand Buildings includes retail outlets and office space, which is let to Enterprise Oil. The property was constructed in the 1870s

West End Retail Market is Booming

noreply@blogger.com (LDG London Estate Agents) — Fri, 30 Jul 2010 16:05:00 +0000

The West End is soon to host a new luxury brand as Chanel, one of the most recognized names in luxury and haute couture fashion. are opening a store in Bond Street.

Central London top end shopping has not been affected by the recession, as the weak pound has provided incentive for overseas shoppers spending sprees in the West End.The New Chanel shop will sit between Chaumet and Moussaieff on the west side of New Bond Street.

The addition of such a prestigious name to the Bond Street list which includes Cartier, Jimmy Choo and Furla is a sure sign that in the traditionally expensive end of London Shopping is still booming.

Great Portland Street plc Interim Statement

noreply@blogger.com (LDG London Estate Agents) — Thu, 22 Jul 2010 13:41:00 +0000

First quarter valuation and business update

In today's Interim Management Statement, the Directors of Great Portland Estates plc announce an update on trading, as well as the quarterly valuation of the Group's properties as at 30 June 2010.

"London's property investment markets continue to recover during the quarter although at a lesser pace at the unsustainably high rates of the previous 2 quarters. We expect this less urgent mood to persist for the balance of the year, with investors looking to rental growth to support further price increases."

Middle East investors snapping up UK properties - Emirates Business 24|7

noreply@blogger.com (LDG London Estate Agents) — Thu, 15 Jul 2010 12:04:00 +0000

Middle East investors snapping up UK properties - Emirates Business 24|7

European Banking Authority to be Based in London

noreply@blogger.com (LDG London Estate Agents) — Tue, 13 Jul 2010 12:10:00 +0000

Reuters reports that European finance ministers have agreed to base the European Banking Authority, the new super-regulator, in London rather than Frankfurt, providing a major boost for the City. It had been proposed by members in the European Parliament to position the new watchdog next to the European Central Bank. However, the Ecofin council, which comprises George Osborne, the chancellor, and his counterparts from each EU member state, decided that London was its natural place.

Property Investment Market Slows

noreply@blogger.com (LDG London Estate Agents) — Thu, 08 Jul 2010 08:35:00 +0000

The CB Richard Ellis Monthly Index showed:
•The All Property total return was 1.1% in June, with annual returns up to 26.7%.
•All Property capital growth was 0.6% in June, with values up 6.8% since the start of the year.
•The strongest performing market sub-sector over the month was Central London offices, which recorded total returns of 1.8% for a second consecutive month.
•All Property rental values fell by 0.2% in June, down 0.9% in H1.
•All Property equivalent yields were flat in June at 6.9%, the first month without a yield shift since August 2009.

Nick Parker, Economics and Investment Senior Analyst for CB Richard Ellis UK, commented: “The property investment market is clearly slowing, with investors turning more cautious and yields flattening. Outside Central London, occupier markets remain fragile. The greater improvement seen in London’s occupier markets has saved it from the same fate as some of the regional markets in the second quarter of 2010. With the summer months now upon us, a further slowdown in investor activity could have an impact on competition for property and trends in yields.”

Carlyle Buys Six Landmark Central London Assets For £671M

noreply@blogger.com (LDG London Estate Agents) — Tue, 06 Jul 2010 08:26:00 +0000

Global private equity firm The Carlyle Group , today announces that it has exchanged contracts for the acquisition of six landmark central London properties, which were formerly part of the portfolio securing the White Tower 2006‐3 plc CMBS. The properties, comprising the Thames Portfolio and Alban Gate total in excess of 1.6m sqft and currently generate over £62m of rent per annum. They have been acquired for a total of £671m.

The portfolio of six assets comprises the following:

• 60 Victoria Embankment – 420,000 sqft of mainly office buildings, fully let to JP Morgan Chase.

• Ludgate House – A 170,000 sqft office building located on the south bank of the Thames next to Blackfriars bridge. The property is fully let to United Business Media.

• Sampson House – 350,000 sqft of office accommodation. Located on the south bank of the Thames, the office building is fully let to IBM.

• Millenium Bridge House – A 200,000 sqft office building located on the north bank of the Thames in the City, which is fully let to UBS.

• BSI tower – Located in Chiswick, West London, this office building totalling 140,000 sqft is fully let to BSI Management Systems Ltd.

• Alban Gate – An office property located on London Wall in the heart of the City, totalling 382,000 sqft over 22 floors. It is fully let to JP Morgan Chase.

West End commercial property market thriving due to foreign investment

noreply@blogger.com (LDG London Estate Agents) — Wed, 30 Jun 2010 10:56:00 +0000

London’s West End commercial property market is currently seeing a high level of activity, particularly from foreign investors, with several recent landmark sales in the office and retail markets.

Simon Taylor (FRICS), head of the commercial department at specialist West End estate agency, LDG, comments: “Although the pound is gaining strength, Central / West End of London commercial property investments still currently look cheap to foreign investors, hence significant recent deals such as the reported sale of Land Securities Park House development to a Qatari-backed investor for circa £250m.

“Because the property REITs are currently rebuilding their balance sheets and the banks are generally not lending on development, selling existing “oven ready” supply is one of the only ways commercial developers can raise capital, and whilst there is a significant amount of foreign money in the market to purchase, it makes sense to sell.

“Foreign investors want to buy tangible assets, and commercial property in London is deemed a safe bet, particularly as there are few places in the world with long leases with upward only reviews every five years; another attraction.”

Simon concludes: “We anticipate a continued strong market in the West End, particularly now the emergency Budget has been announced and there is more clarity on the detail of the Governments’ plans.”

For further information and to enquire about premises LDG is currently marketing, please visit www.ldg.co.uk or telephone: 020 7580 1010.

For further press information, please contact Emma Ward Hunt at Foundation PR Ltd on: emma.wardhunt@foundation-pr.co.uk or telephone: 020 8542 7400 / 07989 979693.

Hammerson Sells UK Offices; 74 %t Return on 1999 Purchase Price

noreply@blogger.com (LDG London Estate Agents) — Tue, 22 Jun 2010 09:46:00 +0000

Real estate investor Hammerson is set to make a 74 percent return from the 134 million pounds sale of a London Docklands office tower in a portfolio reshuffle aimed at unlocking capital for new buys,reports Reuters.

The 16-storey Exchange Tower property, near London's Canary Wharf business district, has been sold to MGPA Europe Fund III for 3 million pounds more than its valuation at Dec. 31, 2009.

Hammerson is benefitting from a resurgence in investor interest in London offices as prices and rents rally amid increased occupier demand.

"Harbour Exchange has been a good investment for the company over the last decade. However, I believe the capital can be better deployed in other opportunities," Hammerson Chief Executive David Atkins said.

The 45,000 square metre tower was originally acquired by Hammerson in 1999 for about 77 million pounds and generated rents of 10.7 million pounds at end-2009.

Rackspace Look For London Commercial Property

noreply@blogger.com (LDG London Estate Agents) — Mon, 21 Jun 2010 09:56:00 +0000

Rackspace, the web hosting company is looking to get into the London commercial property market. A spokesperson told Property Week that the into the company were "looking into the feasibility of relocating to the central London area."

Rackspace® Hosting is the World's leader in hosting. Since 2001 Rackspace has been hosting and supporting mission critical websites, internet applications, email servers, security and storage services for 6,000 customers.

Central London Retail Sales Rise

noreply@blogger.com (LDG London Estate Agents) — Mon, 14 Jun 2010 10:18:00 +0000

The British Retail Consortium (BRC)has announced that retail sales in central London in May were 11.6% higher on a like-for-like basis than a year ago, when sales had risen only 1.7%. Stronger consumer confidence in London helped boost sales.

Retail footfall in May picked up to just above its year-earlier level, after a year-on-year decline in April. Special sales events and discounts helped attract shoppers into the capital.

Sterling's weakness continued to attract overseas visitors, especially from western Europe, China and the Middle East. Tourists began to return to the UK after the volcanic ash disruption eased.

Food sales strengthened again after Easter distortions had depressed sales in April. Non-food similarly picked up. Clothing, footwear and outdoor leisure were boosted by sunny weather.

Hammerson Buys Leadenhall Court, London

noreply@blogger.com (LDG London Estate Agents) — Sat, 12 Jun 2010 10:27:00 +0000

Hammerson Property Group, who manage a commercial property portfolio worth around £5.1bn, have bought Leadenhall Court; a London office building providing 109,000 sq ft of prime office space located midway between Bank and Liverpool Street Stations.

Hammerson is buying the leasehold from Alan Bloom and Alan Hudson of Ernst & Young LLP, Joint Receivers over the property which provides 10,126 m2 in a prime City of London location.

The building is fully let until March 2014; Passing rents are GBP7.16 million per annum after payment of head rent to the City of London Corporation, reflecting an initial yield of 11%.

CB Richard Ellis Move to The West End

noreply@blogger.com (LDG London Estate Agents) — Fri, 11 Jun 2010 10:47:00 +0000

CB Richard Ellis (CBRE) has secured new offices in the West End of London pending the expiry of their current lease at Kingsley House, Wimpole Street W1 in May 2011. CBRE has entered into an Agreement for Lease to take Henrietta House, Henrietta Place, W1 which is being vacated by Diageo.
The landlord, Lazari Investments, is taking a surrender of the residue of Diageo's lease in order to completely refurbish the building in readiness for CBRE's occupation.

Following an innovative approach to the transaction CBRE will deliver the scheme on behalf of Lazari. CBRE will take an over-riding 15-year lease on the entire building, totalling approximately 98,000 sq ft. This will allow CBRE to manage the property for its own and the landlord's benefit.

UK Pension Groups Looking To London Commercial Property

noreply@blogger.com (LDG London Estate Agents) — Fri, 11 Jun 2010 09:44:00 +0000

UK pension schemes are actively looking to increase their exposure to property as the market continues to show signs of recovery, according to a survey by Aberdeen Asset Management.

More than one third of schemes surveyed that don't already invest in property are considering including it in their portfolios.

Of those that already have some exposure to property, 36 per cent also said they would possibly increase their weighting, while 57 per cent said they would be maintaining their current exposure.

Andrew Smith, group head of property at AAM, said the renewed interest in the sector came as investors increasingly looked to diversify their equity and fixed income exposure.

"The recovery of the UK property market continues, with strong investment demand continuing to drive a rise in capital values," he said. "A pronounced lack of new development is also helping London office rental values to stabilise more quickly than in previous downturns."

He added that property's role as an inflation hedge was also attractive, given the prospects for inflation rising in the medium term.

Those pension schemes that are not looking to invest in property cited the lack of liquidity and perceived risks.

UKCPT Trust Takeover Creates $2.5 billion Property Firm

noreply@blogger.com (LDG London Estate Agents) — Thu, 10 Jun 2010 09:33:00 +0000

Reuters reports UK Commercial Property Trust (UKCM.L) (UKCPT) is taking over F&C Commercial Property Trust (FCPTL.L) (FCTP) to create Britain's sixth-largest listed property company, worth about 1.6 billion pounds ($2.5 billion).

UKCPT's move follows the sale in April of a 16.5 percent stake in FCPT to the Phoenix Group, the parent company of UKCPT manager Ignis Asset Management Limited, from key FCTP shareholder Friends Provident.

Friends Provident and Phoenix, which have a combined 50.3 percent stake in FCPT, agreed on the deal, which is subject to approval from the trust's independent shareholders.

The combined portfolio would have a 60.5 percent weighting to London and the South East, with 27 percent of assets located in the capital's popular West End business district, research from UKCPT advisor Execution Noble showed.

Central London Office Space Continues to Growth

noreply@blogger.com (LDG London Estate Agents) — Wed, 09 Jun 2010 10:43:00 +0000

Capital growth slowed further in May, says CB Richard Ellis. The group’s UK monthly index for May showed a total return of 1.2% and capital growth of 0.7%. “Investor demand has weakened in recent months as a result of growing nervousness over the economy, as well as renewed financial market uncertainty,” it noted.

Office space in Central London continued to turn in a strong performance, with total returns of 1.8% in May and 13.5% year-to-date. Offices overall saw total returns of 1.4% and capital growth of 0.9%.

Industrial performance on the other hand was weak in May, with total returns of 0.9% and only marginal capital growth of 0.3%. Retail property recorded total returns of 1.1% and capital growth of 0.6% for the month.

“Rental fragilities and declines are still present across most sectors, with Central London the only exception,” CBRE noted.

The short-term indicator for capital growth slowed further in May to 16.1% and that for rental growth improved slightly to –2.1%. “These figures illustrate the cooling investment sentiment and the slowly improving occupier markets,” the group noted.

Jones Lang LaSalle: Lack of Commercial Property in London

noreply@blogger.com (LDG London Estate Agents) — Fri, 28 May 2010 12:27:00 +0000

The falling availability of premium commercial property for rent in London is likely to result in a variety of lower-specification sites being upgraded reports UK Business Property

This is according to Jones Lang LaSalle, which has predicted improvement work will be done on Grade B office space in order to fill the supply gap of Grade A sites.

James Morris, head of the project and development services team at the business property specialist - which has offices in 60 countries worldwide - said such a move is a "logical" one, given the current state of the office space market in the capital.

He explained the global economic downturn resulted in "the brakes being firmly applied to speculative development".

"As a result, there is now an imminent supply gap of Grade A office product in London," he continued, adding upgrading existing Grade B stock will help satisfy demand until new projects are completed.

Failing to take such action could result in a severe shortage developing by 2012, he warned.

West End Tourism Buoys Shaftesbury Plc

noreply@blogger.com (LDG London Estate Agents) — Thu, 27 May 2010 12:21:00 +0000

Shaftesbury Plc, the largest landlord in central London and the West End reported its first profit in more than two years after the value of its properties appreciated.

Values started to recover a year ago after a drop in the pound and a two-year slide in prices buoyed investment demand. Shaftesbury’s owns over 450 properties in Carnaby, Covent Garden, Chinatown, Berwick Street and Charlotte Street.

The West End Property Company earned 122.7 British pounds ($176 million) in the six months ended March 31, after losing £159.9 million in the prior-year period.

"Although the outlook for the UK and European economies remains uncertain, London's West End is prospering," Shaftesbury Chairman John Manser said.

West End Offices Queens Square

noreply@blogger.com (LDG London Estate Agents) — Tue, 25 May 2010 18:25:00 +0000

LDG has just achieved record figures for three floors of fabulous contemporary office space overlooking Queen Square.

This cutting edge West End office development is to be finished to the highest specification, with a spectacular glass atrium to ensure both front and back is flooded with light. For more information on renting or leasing offices in the West End of London, please contact us

New Skyscrapers for Central London Commercial Property

noreply@blogger.com (LDG London Estate Agents) — Fri, 14 May 2010 13:25:00 +0000

The central London commercial property landscape is on course to boasting 15 new skyscrapers thanks to developers who have rekindled schemes in a bid to counter a looming shortage.

Developments with a combined worth of more than £9 billion are currently being pushed forward, according to the Evening Standard, which reports that all the 15 are scheduled for completion by 2015.

The buildings include the Heron Tower, the Shard and the Pinnacle in the City of London, which are at an advanced stage and will be ready by 2011, 2012 and 2013 respectively.

Others include Trinity in the City and the Beetham Tower in Blackfriars, which are expected to be ready by next year, and the "Walkie Talkie" in Fenchurch Street, currently being reviewed in the hope of being revived.

Thanks to rising demand for prime office space and the recovery of the sector, rents in the City of London are set to increase, the Royal Institution of Chartered Surveyors revealed recently.
Adfredo