A number of developers are planning new office projects in London
(Picture: PA)Landlord and property developer Helical has agreed a £160 million deal, giving it a substantial office refurbishment project to work on in London.
The firm said it has exchanged contracts to acquire the single asset company that owns 100 New Bridge Street, a office block mid-way between Farringdon and Blackfriars stations that is used by law firm Baker McKenzie.
The tenant’s lease at the 167,026 square feet building ends in December 2023 and the law firm will relocate to a new HQ.
Confidence to invest comes despite some employers looking to reduce office space post-pandemic, or spend fewer days in offices as more flexible working is embraced.
However, some developers are betting that demand for modern and green-friendly space will hold up, even if workers use the offices for only part of the week.
Gerald Kaye, chief executive of Helical, said the purchase provides his firm with the opportunity to carry out a major refurbishment, “which will have less impact on the environment than a ground up development, and which we will be able to deliver more quickly”.
He added: “We expect this to involve recladding the elevations and incorporating the latest technology as well as high-quality tenant amenities to create a new best in class grade A office building, which will operate to the highest standards of sustainability.”
Property agents Ingleby Trice and Knight Frank advised on the deal.
According to research from Knight Frank, London office buildings that achieve the highest standards in sustainability can achieve up to a 12.3% premium in rents.
