A week away from work last week so unfortunately no blog entry for week 7, but here goes with my pick of this week’s news distilled down into five bite sized chunks.
New US Embassy in London
Architect Kieran Timberlake has won the design competition for the new United States Embassy on the banks of the River Thames in London. US Ambassador Louis B.Susman announced the winner which was chosen by a jury of American and British property, architecture, academia and diplomatic figures including British architect Lord Richard Rogers and property developer and patron of the arts Baron Peter Palumbo. Kieran Timberlake beat competition from shortlisted firms Morphosis Architects, Pei Cobb Freed & Partners and Richard Meier & Partners to design the new embassy which is located in Nine Elms in Battersea. The US State department said: “Kieran Timberlake’s design met the goal of creating a modern, welcoming, timeless, safe and energy efficient embassy for the 21st century. At the press conference it was announced that the date of transfer was expected to be 2017 and the cost of building the new embassy would be £1bn before VAT.
“Walkie Talkie Tower” may be going ahead
Land Securities is talking to contractors about the cost of building its proposed “Walkie-Talkie” tower – a significant step towards starting work on the mothballed project. The office development, one of the biggest proposed for the City of London, was put on hold by the property developer in 2008 because of concerns about the economy. The restarting of a major scheme in the City would indicate a new level of confidence in the property market and London as business centre. Francis Salway, chief executive of Land Securities, has committed £655m to three new developments this year ( all in the West End). He said in January that the company had “started” to consider reviving the 600,000 sq ft scheme.
Capita Symonds Purchase of NB Real Estate
Capita Symonds – part of outsourcing vompany Capita – has bought NB Real Estate for £10m, with an additional £10m deferred consideration if certain targets are met. The deal is Capita Symonds seventh major acquisition in two years. NB Real Estate will continue to trade under it existing name as a trading name of Capita Symonds, supported by Capita Group, during 2010. Michael Hatt, chief executive, NB Real Estate, said: “The deal will provide a platform for significant growth across all of our service lines from sustainability, through asset, property and facility management, to our agency and investment teams. I think our clients and staff will benefit enormously.”
Cautious Optimism re Occupiers (JLL)
Europe’s economies continue to show encouraging signs of economic recovery, according to Jones Lang LaSalle’s Q4 2009 European Property Clock. However, the time lag between the wider economy and European office occupier markets remains evident. There are also significant differences between markets in terms of their position in the rental cycle, with certain markets expecting to see prime rental growth in 2010 with others still expecting declines. Patricia Lannoije, Head of Research at Jones Lang LaSalle Belux, said: ‘While economic prospects improve, labour market fundamentals are weak and remain somewhat based on governmental stimulus. Business confidence across Europe continues to improve from record lows in early 2009 but companies remain cost sensitive. However, some companies are taking the opportunity of the low rent environment to secure prime space or renegotiate leases.’
UK Retail Rents Stabilising (Cushman & Wakefield)
Average retail property rents declined just over 8% in 2009, says Cushman & Wakefield in its latest quarterly update on the UK market. The property adviser notes that although rents declined by a further 1% in the final quarter of 2009, the rate of softening has begun to ease and the market should return to stability in 2010. Most of the UK’s major cities saw rental falls in Q4, although London has bucked the trend throughout the economic downturn and rents have increased to new highs on Bond Street where a 9.7% rise was recorded. While London’s office markets have borne the brunt of the financial crisis, the capital’s retail market has benefited from a continued influx of newcomers chasing a limited supply of good quality space. A weak sterling has also boosted London’s appeal to European tourists who have continued to spend in the capital’s shops.
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