Weekly round up - Real Estate
5 Marble Arch, London
78,000 sq ft of offices pre-let to Bridgepoint Capital
Bridgepoint Capital has pre-let all 78,000 square feet of office space at 5 Marble Arch. Rental levels achieved are estimated to be at £115 per sq ft (£8,970,000 per annum), expensive in terms of square footage value. The building is being developed to a high-end specification with panoramic views on to Hyde Park with parts of the building located on Edgware Road. The development will consist of an 18-story residential tower with 54 apartments.
Whether the development will be seen as a success remains to be seen. Local landlords will hope the project adds value to the area.
Tenant Bridgepoint Capital
Architect Rafael Vinoly
Transaction Date Q3 2019
Rent £115 per square foot
Total Size 78,000 sq ft
Wework Strategy Update
from Long Term Leases to Building Management
Marcello Claure, WeWork's incoming chairman, has announced a new strategy for the firm which will see it focus on managing other landlord's properties. The company will also focus its attention on franchising and revenue-sharing deals. The firm intends to keep its current model of singing long term leases in its leading markets.
With plans of going public halted, its controversial founder ousted, and out of the media attention, the firm now has an opportunity to clean itself up. The focus will be on creating a profitable company, something its directors do not anticipate until 2021.
Start-up of the week
What3words provides every square meter on earth with a specific location. The firm names each square meter through algorithms, enabling high accuracy to determine a location. This can be extremely helpful in remote locations across the developing world. Likewise, it is effective for rescue teams when they are called upon, whether on ski resorts or in the middle of a nature reserve.
The concept is simple. What3words makes GPS coordinates user-friendly.