Weekly round up - Real Estate
Goldman Sachs' new London HQ
January 2019 - Goldman Sachs completed the Sale and Leaseback of their new London HQ. The sale was completed at approx. £1.2b to Korea's National Pension Service (NPS). The building is leased for a term of 25 years with a break option at year 20 and compromises of 826,000 square feet. Goldman has the ability to extend the lease beyond the current term. The new HQ includes a landscaped roof garden, eight workspace floors, an auditorium, a fitness centre, a nursery and a pre-school.
The building is located in Midtown, an area attracting an increasing number of firms including Amazon, Airbnb, Unilever and JP Morgan. Rents in the area have also picked up with prime headline rents reaching the £80s psf. Other major developments in the area include The Bloom by HB Reavis (145,000 sq ft) and Kaleidescope by Helical (88,000 sq ft).
Landowners' response to the growing influence of the E-commerce market
It is no secret that e-commerce is having a growing influence on the retail market. So Whilst all the talk is about online retailing, one must not underestimate the importance of physical space facilitating these online operations.
Savvy property owners of industrial sites have benefitted from this market change. They have added value to their real estate by adapting how their land is used. Whether that be by facilitating last-mile delivery or big-box warehouses, data centres and telecommunication towers. These are essential for delivering online shopping and groceries as well as a place to store, run and automate data. One can expect the value and importance of these assets to increase as the digital world's presence is ever increasing.
"Fill the Doc"
Start-up of the week
Fill the doc is a provides software which automates the legal process. Amongst other documents, the platform automates leasing contracts. The user needs to fill in the terms for the specific transaction and the platform will automate the standard assumptions of a contract. The form is saved through an Application programming interface (API) which will maintain the file securely, and easily enabling editing, or converting the file. One of its key features is its flexibility. The platform allows its users to dictate the font, page layout, whilst easily being able to adapt the terms inserted within the contract.