Cain International agrees £109 million development loan for green Southbank office with Barings and LBS Properties

London, England, 7th September 2021 Cain International, the privately held investment firm led by Jonathan Goldstein, has agreed a 109 million development loan with Barings and LBS Properties for the delivery of a 146 334 sq ft environmentally friendly office development at 135 Park Street in London’s Southbank.

Located next to the Tate Modern and Shakespeare’s Globe, Barings and LBS Properties have planning consent for the demolition of the existing buildings and subsequent development of 146 334 sq ft of Grade A office space, arranged over 11 upper floors, as well as ancillary retail the joint venture partners are highly focused on the ESG credentials of the completed building and are targeting a minimum of BREEAM with aspirations to achieve “Net Zero Carbon”.

The forthcoming office development has been designed by world renowned architects Squire Partners, with 90% of the floor space designated for traditional office use and the remaining space is to be used as affordable workspace. Demolition work is due to commence in Q3 2021.

“We believe that offices which place an emphasis on sustainability like 135 Park Street are extremely important and will play a critical role in the future success of leading organisations and cities,” said Matteo Milan, Principal at Cain International. We are pleased to be working with such highly regarded sponsors to support the delivery of a new standard of sustainable office space in London. There is no doubt that the asset class is integral for inclusion, diversity and innovation initiatives, as well as developing and fostering both talent and corporate culture.

Darren Hutchinson, Head of UK Real Estate Transactions and Managing Director at Barings, said: “We acquired this development project having recognized the attractive fundamentals of the local market, the lack of Grade A office space available and the unique opportunity it offered to create a new breed of sustainable work space in a sought after location. This development loan from Cain will allow us to realize our strategy and ambition for this site to its full potential and we look forward to working with Cain and LBS in the months ahead.

Nick Crawford, Managing Director of LBS Properties Ltd, commented: “We are delighted to have secured financing from Cain International to support the delivery of this best in class, highly sustainable office building of scale in one of London’s most attractive submarkets. The development will set the benchmark as a forward looking office building, fit for a fast evolving market, with tenant experience our priority from day one, a vision we feel the team at Cain shares completely JLL advised Barings and LBS Properties on the financing, led by Senior Director Edward Daubeney and Director Andrew Hornblower, supported by Senior Analyst Bart Smith and Analyst Tarun Mehta.

Barings and LBS Acquires Southbank Office Development Scheme for £43.25 Million

Barings, one of the world’s largest diversified real estate investment managers, has completed the joint venture acquisition of an office development scheme in Southbank, London for £43.25 million. LBS, a London based developer, is Barings’ joint venture and development partner for the project. The development scheme was acquired from LaSalle Investment Management.

The site has full planning consent for the demolition of the existing Emmerson building and the development of c. 150,000 sq ft of new Grade A office space that will be built to the highest sustainability standards with the target of creating a net zero carbon building.

On completion, the new building will comprise 11 upper floors of high quality, Grade A office with a ground floor retail unit and complemented by 14,000 sq ft of affordable workspace at lower ground, ground and first floor.

Designed by renowned architects Squire & Partners, occupiers of the building will benefit from access to a wide range of amenities including a roof top communal terrace overlooking the Thames and the City of London, as well as 300 lockers, cycle storage for 284 bicycles, and 28 showers all on the lower ground floor.

Located in the heart of the ‘Bankside’ village of Southbank, the asset will benefit from easy access to both strong public transport infrastructure with Blackfriars, London Bridge and Waterloo train stations all a few minutes’ walk away, as well as the area’s extensive amenities and cultural landmarks including the Tate Modern, Shakespeare’s Globe and Borough Market.

Darren Hutchinson, Head of UK Real Estate Transactions and Managing Director at Barings, added: “We are pleased to have partnered with LBS who have an impressive track record of delivering similar schemes in London. We very much look forward to working with them to deliver a best in class scheme with strong ESG credentials and that will appeal to a wide range of occupiers and in a vibrant submarket, characterized by very low Grade A vacancy rates and high levels of demand.”

Gunther Deutsch, Head of Transactions Europe and Managing Director at Barings, commented: “This transaction represented a rare opportunity to acquire a well-located development site in a historically undersupplied and attractive submarket of London. We have strong convictions in the London office market and believe that there will continue to be strong demand for well-located Grade A office space with strong occupier appeal.”

Nick Crawford, Managing Director of LBS Properties Ltd, commented: “We are delighted to have secured this rare opportunity to deliver a best in class, highly sustainable office building of scale in one of London’s most attractive submarkets. We are pleased to be working with Barings, an investor with deep investment expertise across global real estate markets, and share a vision of creating a forward-looking office building, fit for a fast-evolving market, with the tenant experience our priority from day one. “

Chris Lewis, Fund Manager for Debt & Value-Add at LaSalle Investment Management, added: “This is an excellent example of value-creation for our client; we have delivered on our business plan to achieve a significant increase in building area through improved planning permission and retain the freehold. We are looking forward to LBS delivering on the scheme and working with them again in the future.”

LBS PROPERTIES SECURES LETTING AT 107 GRAY’S INN ROAD, WC1

Allsop, acting on behalf of development manager LBS Properties, has succeeded in securing a letting of a five-storey office building on Gray’s Inn Road in Clerkenwell, London, to Tetra Tech, a leading global consulting and engineering firm. Tetra Tech is listed on NASDAQ with a market cap in excess of USD 4bn.

Tetra Tech, represented by Ashwell London, will occupy a total of 6,600 sq ft at 107 Gray’s Inn Road across the ground, first and second floors, on a 10-year lease at £58 psf. This leaves a remaining 3,921 sq ft available across the third and fourth floors.

LBS Properties, acting as the property advisor on behalf of the Guernsey-based LBS Real Estate Investment fund, oversaw the comprehensive refurbishment of the building with Oktra appointed as architect and contractor. 107 Gray’s Inn Road provides a total of 10,521 sq ft of office space over five floors as well as facilities which include lockers, cycle parking, showers and a rear courtyard. It’s well positioned to benefit from numerous transport links including King’s Cross, Farringdon, Russell Square, Chancery Lane and Holborn tube stations and can take advantage from the lifestyle amenities on offer at Kings Cross.

James Neville, Partner, Allsop, said: “The letting at 107 Gray’s Inn Road is a really encouraging sign of positive movement in the market. We received a healthy amount of interest in the building despite lockdown. The location is certainly one of the strongest selling points for the property, with the occupiers benefiting from the upcoming Farringdon Cross Rail which is only a few minutes’ walk away as well as transport links and amenities on offer at King’s Cross. This, combined with the high spec fit out, makes an appealing option for tenants”.

Nick Crawford, Managing Director, LBS Properties, said: “With early leasing success, we are really pleased with the outcome at 107 Gray’s Inn Road. The mid-town location presents a fantastic proposition for tenants with excellent amenities and connectivity. The design concept of the building was to showcase the bones of the building yet reflect the local surroundings, with a combination of exposed ceilings, striking light fixtures and modern finishes. We are very proud of the outcome and look forward to welcoming Tetra Tech to the building.”

Allsop acted on behalf of Gray’s Inn Limited and LBS Properties.

Ashwell London acted on behalf of Tetra Tech.

LBS Properties disposes of Chapter House, 1 Cranwood Street, London for £45,500,000.00

On behalf of its client Chapter House Limited, LBS Properties has successfully sold Chapter House, a prime freehold central London investment opportunity, to RTP Global Real Estate Investments LP, a pan-European fund targeting prime assets for £45,500,000 reflecting a net initial yield of 4.48%.

Chapter House is located one street back from Old Street Roundabout in the heart of London’s tech and creative cluster.

A former Victorian School that was comprehensively refurbished and extended to a very high specification in 2019. The property, which originally dates back to 1887, offers a high specification with 4.5 metre floor to ceiling heights and external terraces, providing 32,323 sq ft of office accommodation arranged over lower ground, ground and four upper floors.

Chapter House, one of two adjoining buildings developed by LBS Properties is fully let to three tenants, Ebiquity Plc, Totally Money Limited and Recorded Future, with a passing rent of £2,202,552 per annum, equating to £68.00 per sq ft.

Nick Crawford, Managing Director of LBS Properties, says, we are delighted to have completed the sale of Chapter House to RTP Global Real Estate Investments LP. Through high quality of refurbishment, Chapter House has been transformed to a best in class office building in a prime Old Street location. This resulted in the property being 80% pre-let prior to completion.

LBS Properties were represented by Cushman & Wakefield and Colliers. Crossland Otter Hunt acted for the purchaser.

LBS PROPERTIES SECURES BLOOMSBURY OFFICE FOR DEVELOPMENT AS PART OF NEW FUND LAUNCH

Award-winning London developer and asset manager LBS Properties has completed on the purchase of 107 Grays Inn Road, a 14,000 sq ft multi-tenanted office building in Bloomsbury, for £7.1m.

The acquisition marks the first transaction for the new Guernsey-based LBS Real Estate Investment Fund, to which LBS Properties is sole Property Advisor. The new fund’s strategy is to invest in value-add commercial opportunities across London.

LBS Properties plans to undertake a full internal and external refurbishment of the building, which spans five floors, with work due to complete in Q1 2020. Located in what is known as London’s ‘Midtown’, 107 Grays Inn road enjoys a good location within a ten minute walk of Farringdon, Chancery Lane and Russell Square stations, while also being less than a mile from Kings Cross.

Nick Crawford, Managing Director of LBS Properties, comment: “This marks a significant acquisition in the Midtown area, which is currently suffering from a record low of quality new office supply coming to market. We will undertake a comprehensive refurbishment, delivering prime office space that will appeal to the area’s increasingly diverse tenant base which includes professional services, TMT and legal firms. There is a continually improving food, beverage and retail offering in the area, making it an attractive destination for occupiers.”

“The new Fund will continue to seek opportunities where we can leverage our development and asset management expertise to add value in a relatively short space of time by refurbishing and repositioning buildings that benefit from good fundamentals.”

LBS PROPERTIES LAUNCHES SCRIPT EC1 AFTER RECEIVING PLANNING FOR OLD STREET OFFICE TRANSFORMATION

Award-winning London developer and asset manager LBS Properties has been granted planning permission by Islington Council for the redevelopment of the Defoe Court building at 44 Featherstone Street EC1, to provide 51,000 sq. ft of prime office space. The project has been launched to the market this month as Script EC1.

Designed by Thirdway Architecture, the development will include the delivery of an additional seventh storey with roof terrace, a complete external and internal refurbishment, provision of cycle storage and new facilities, which will create an exemplar scheme just 150 metres from the iconic Old Street roundabout.

LBS Properties acquired the freehold office building last year from Paris-headquartered Amundi Asset Management. It sits among the area’s thriving tech and media cluster which includes blue chip occupiers as well as fast growing start-ups. In addition to Old Street station just moments away, the building is in close proximity to Moorgate and Liverpool Street stations, with the new Elizabeth Line services due to open soon.

LBS Properties has a proven track record in the area, having recently developed Chapter House, providing over 34,000 sq. ft of accommodation which was almost entirely pre-let prior to launch, as well as the adjoining Verse building which has just launched, providing over 16,000 sq. ft of accommodation.

Nick Crawford, Managing Director of LBS Properties, comments: “The Old Street area continues to thrive as a prime city-fringe office location, with strong tenant demand leading to record rents being set in recent months for the best buildings. The redevelopment of Defoe Court will deliver another high-quality office building with excellent amenities at a time when there is limited new supply coming to market. Our previous Chapter House project just across Old Street roundabout was very well received, and is now 100% let, shortly after it completed.”

Work is due to commence immediately with completion expected in Q3 2020.