The infamous BBC Television Centre known as The Doughnut, in White City, is about to go through a £200-million development, which will introduce a new hotel, as well as residential and office space into the area. It will also provide access for the public into the forecourt. This development will still maintain a significant BBC presence as three studios will be refitted, allowing programmes to continue. The office space within the 14 acres will primarily be used for the BBC’s commercial division and BBC Worldwide. 

Typical London … we wait for big real estate players; and then two businesses come along at once …

At its planning meeting on Wednesday 5th February Westminster City Council refused the American fashion trader Abercrombie & Fitch consent to convert the Grade II Listed Building at 3 Savile Row, Mayfair – which is in a Special Policy Area – into an Abercrombie Kids Store. The company’s flagship store is already nearby at the junction of Savile Row and Burlington Gardens and is renowned for its topless male store greeters and loud music.

Indirect means buying into a property investment without actually buying the property itself directly. For example, indirect investment might involve purchasing units in a company or scheme which does own the property investment. These can take several forms: 

On the 1st February London’s Mayor Boris Johnson cut the ribbon to welcome the first public visitors onto the threshold of the Shard. The building’s 310-metre futuristic tower rises over London Bridge, with a viewing platform on the 72nd floor.

Offices in the West End are now more expensive to lease than those in Hong Kong. Morgan Pryce, the London office agent, has observed that current top-end rents for offices in Mayfair can reach over £95 per square foot and around £75 in Knightsbridge.

ITV has bought 2.5 acres of the 22-storey tower that it occupies and in which its headquarters and studios are based, also known as the London Television Centre.  ITV acquired this plot from Coal Pension Properties for £56 million and will have to pay Coal Pension Properties an additional £6.5 million if ITV proceeds with any major redevelopments within the next 3 years. 

The demand for housing in Central London is getting greater and greater and many foreign investors feel that having a prestigious residential asset in London is vital. The number of overseas businesses and funds investing in the London commercial property market has taken off in the past year and a half. Many foreign investors enjoy the stable yields of owning prime commercial office space coupled with the benefits of a residential address in the heart of London.

The events we have seen recently in the capital, such as the Olympics and Jubilee celebrations, contributed in 2012 towards the world’s image of London as a cultural, international, and vibrant city. This kind of popularity, combined with London’s historic influence in terms of international finance, comes at a price, at least if you rent offices in Mayfair, St James’s or other prime West End locations.

Due to the large regeneration of the King’s Cross and St Pancras stations the area has become an increasingly popular office destination. The area benefits from excellent underground connections on the Victoria, Northern, Piccadilly and Circle lines as well as improved connections from the newly renovated King’s Cross and St Pancras stations, including of course easy access into Europe via the Eurostar. Rent for high-end offices can now reach over £52 per square foot, close to much of the grade-A space within the West End.