July 2010 Archives

The Financial Times has reported that companies choosing to occupy the office and retail scheme, One New Change, could be asked to pay for the area's own dedicated police force. A year-long trial of the initiative elsewhere in London showed that many tenants are happy to pay for tighter security. Provided by the City of London police, it is hoped that the five-strong unit will offer additional protection against a number of risks, including terrorism.

With hopes that the development (set to open this Autumn) will become the next hot shopping destination, the move could be welcomed by retailers and office occupants alike. Not everyone will be happy about this development though; security companies could lose big contracts to the public sector, as the police force thinks of more innovative ways to raise revenue in these times of public sector spending cuts.

For the full story, see here.

Back in February 2009, we were informed of a letting to a company called Metro Bank. It took the entire 21,000 sq ft first floor of 1 Southampton Row, WC1, on a sixteen-year lease and was reported to be paying £60 per sq ft.

For months we wondered, "Where is this bank from?" and more importantly, "Who opens a new bank in the middle of a recession?" But over a year on, following a lengthy approval process with the Financial Services Authority and a refurbishment of over £2m, this British investment-backed bank is set to open the doors to its first branch on 29th July. Metro Bank hopes to bring some unique touches to the process of banking; sparkly customer toilets, free coin-counting machines and exactly what everyone needs when banking, biscuits for your dog. The branch will be open from 8am until 8pm and also at weekends and it's said that cashiers will not sit behind security screens.

Three more stores are planned for Earl's Court, Borehamwood and Fulham Broadway but the bank will have some way to go if it is to attract new customers. It is certainly not easy to switch to a different bank, but the bank's chairman Anthony Thomson told the BBC, "Consumers don't need convincing. There's a huge pent-up demand for better service. Banking has been a cosy oligolpoly for too long. People will vote with their feet." However, reports that interest rates will not be as competitive may outweigh the customer-focused approach that the bank will take.

The Carlyle Group confirmed yesterday that contracts have been exchanged to purchase part of Simon Halabi's former White Tower portfolio. Comprising five central London properties and one in Chiswick, Carlyle will acquire the portfolio for £671m.

The properties are let to tenants including JP Morgan Chase, IBM and UBS and generate over £62m per annum in rent. Carlyle European Real Estate was launched back in June 2008 and takes a long-term approach to investment, concentrating on European centres and landmark assets.

The portfolio comprises the following properties:

BSI Tower, Chiswick High Road, W4

60 Victoria Embankment, EC4

Ludgate House, 245 Blackfriars Road, SE1

Sampson House, 64 Hopton Street, SE1

Millennium Bridge House, 1 High Timber Street, EC4

Alban Gate, 125 London Wall, EC2

CB Richard Ellis is advising on the sale of other White Tower assets.

Whilst out site visiting in Docklands, we thought it best to check out what was happening with Riverside South, JP Morgan's long-awaited HQ-to-be... or, by the looks of it, not-to-be.

Although JP Morgan agreed to move here at the end of 2008, there have been numerous rumours that it could move to the City instead and that the scheme could be scrapped altogether.

Of course, nobody knows for sure but if our last visit is anything to go by, things aren't looking too good. Construction seems to have come to a standstill in recent months. Perhaps following the huge bail-outs with tax payers money, now just isn't the right time to spend $3bn on a brand-spanking new building. We'll keep you posted...