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    Fleet Place Office Tour

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    yas.bencherif
    Will and Amber presented details on a real estate office property located in a prime area of Midtown near the City of London. The CAT-A building was acquired during the pandemic and recently underwent renovations by Oxygen to improve tenant amenities and sustainability features. Comparable properties in the area are achieving rents of £75-90 per square foot. Upcoming capital expenditures totaling £7 million are planned to be invested by the landlord.

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    Fleet Place Office Tour

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    yas.bencherif
    12 views2 pages
    Will and Amber presented details on a real estate office property located in a prime area of Midtown near the City of London. The CAT-A building was acquired during the pandemic and recently underwent renovations by Oxygen to improve tenant amenities and sustainability features. Comparable properties in the area are achieving rents of £75-90 per square foot. Upcoming capital expenditures totaling £7 million are planned to be invested by the landlord.

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    Will and Amber presented details on a real estate office property located in a prime area of Midtown near the City of London. The CAT-A building was acquired during the pandemic and recently underwent renovations by Oxygen to improve tenant amenities and sustainability features. Comparable properties in the area are achieving rents of £75-90 per square foot. Upcoming capital expenditures totaling £7 million are planned to be invested by the landlord.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    12 views2 pages

    Fleet Place Office Tour

    Uploaded by

    yas.bencherif
    Will and Amber presented details on a real estate office property located in a prime area of Midtown near the City of London. The CAT-A building was acquired during the pandemic and recently underwent renovations by Oxygen to improve tenant amenities and sustainability features. Comparable properties in the area are achieving rents of £75-90 per square foot. Upcoming capital expenditures totaling £7 million are planned to be invested by the landlord.

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    Real Estate – Office Visit 15.05.

    2023

    Speakers
    Will – Property Manager (?)
    Amber – Building Development & Maintenance (Company: Oxygen)

    M&G Real Estate presentation (CBRE)

     + £300bn Assets Under Management


     Serving individual + institutional investors
     Invest primarily in Core RE
     Will takes care of RE Offices: £5bn AUM across 80 assets across X funds
     Fund objective: Maintain “Ready for Sale”

    Observations
     Interconnecting staircase between floors (tenant-built; will have to be dismantled at
    end of lease)
     2 fire escapes
     Exposed ceilings (no celling fit-out)
    o Ceilings are usually expensive to build, hence the choice
    o Yet, incur cots of architectural design (e.g., paint) + face risk of MEP’s
    subcontractors not doing a good job
     Constructions across the street: used to be a tall building;
    o Was causing darkness in the lower floors of our building
    o Now demolished -> created ++ lighting (for now)
     Needs to be reflected in our model

    Property details
     Location: Midtown - prime spot [around City of London, Chancery Lane, Farringdon]
    o Gentrification and Growth
    o Levy for rent hikes ++
     Timing: Acquired during pandemic lockdowns (down market)
     CAT-A building
    Zoom on CAT-A
    o Usually £120/sqm to get a CAT-A
    o Provides Ceilings and Toilets
    o Tenants have to dismantle to revert area to initial state at end-of-lease (i.e.
    all artificial set ups)
     Usually settled as a financial amount (negotiated at end-of-lease)
     Upcoming refurbishment
     Extended the W.A.U.L.T
     4th floor vacant
     Expected to hold for a longer-term
     They’re rethinking the debt structure (due to shifts in yields)

    Oxygen: 3rd party refurbishment company


     In charge of: rebranding, refreshing, adding floors, ESG-conformity
     Recent works: amend the building to accommodate for flexible working
    Real Estate – Office Visit 15.05.2023

    o Informal meeting areas in reception;


    o cycling docks;
    o parking spots;
    o Increase accessibility (for disabled people)
    o Showers etc. (accessible showers ^)
     Created a differentiated experience for the tenants
    o New lighting, new finishes
    o High ceilings

    EPC rating: C
    -> Look to upgrade to B by 2030 in accordance with Net Zero. How?
    o LED Lighting
    o Heat pumps
    o Increase effectiveness of the envelope for isolation
    o Change gas boilers to electric ones

    Property Certifications
     BREAM: Very good [holistic certification]
    o Carbon
    o Efficient water usage
     WELL: Very good [holistic certification]
    o Wellbeing of tenants
    o Welcoming area
    CAPEX
     All landlord-invested
     £7 million in general CAPEX (annual or until now?)
     Partitioning is also landlord-invested

    Comparables / ERV Benchmark

    (1) Hogan Levels


    - £75/sqft
    - Brand new building

    (2) Farringdon (nearby building)


    - £90/ sqft
    - 10,000 sqft with rooftop

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