We re building and managing quality

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1 We re building and managing quality homes in Southwark London & Brighton, completed March 2015 Wandle is proud to be tackling the shortage of good quality affordable housing. We have a detailed local knowledge and a track record of building outstanding and thoughtfully designed developments. Wandle builds homes and communities where people want to live. Our developments provide new homes for the people most in need and those who would otherwise not be able to afford to own their own home. We are looking for partners to deliver more new homes in Southwark. Please get in touch to find out more. Second Floor Minerva House, Montague Close London SE1 9BB Freephone John Walton - Head of Development JohnW@wandle.com Yvonne Thomson - Executive Director of Operations YvonneT@wandle.com

2 Business space Appetite for high quality office space in central London has seen the traditional markets, such as around Victoria, fill up. As media and related businesses flock to new opportunities on the South Bank, Maria Shahid reports on where they ve settled and where next? space station It would be difficult to imagine London s skyline without the iconic buildings of the South Bank. The evolution of this stretch of the River Thames to become one of London s prime sites for offices and retail has developed with the transformation of the capital itself. More London, 240 Blackfriars and The Shard are all situated on the South Bank. The redevelopment of London Bridge station, due to complete in 2018, will, according to Network Rail, house a concourse bigger than the pitch at Wembley Stadium, and is about to lead to further regeneration of the area. Part of the South Bank s attraction is without doubt its connectivity, which is by no means limited to London Bridge station. Others nearby are Waterloo (just on the border, in neighbouring Lambeth), Blackfriars, Southwark and Borough, which all provide ready access to mainline and underground rail services to the rest of the country. Added to this, the South Bank is one of London s most thriving cultural quarters, with the Southbank Centre housing the Royal Festival Hall and Hayward Gallery, as well as, further along the river, the London Eye, Tate Modern and Shakespeare s Globe, all attracting tourists and residents in droves. And just a short walk away from the river is Borough Market, described by Time Out as London s best, and best-known, food market, with surrounding streets lined with an eclectic mix of restaurants, catering to every taste: from traditional and modern British, to Turkish, pan-asian and Spanish tapas. Topping the list of companies looking to relocate to the area are those in the design, advertising, marketing and PR, media, internet, and technology and telecoms (DAMIT) sector. Union Street Partners is dedicated to commercial property in five key submarkets which they identify as Bankside, Bermondsey, Borough West, London Bridge and Waterloo. southwarkmagazine.com issue 13 summer

3 Business space 56 issue 13 summer 2015

4 Business space It notes in a recent report that the South Bank has become the UK s leading media cluster, with companies in advertising, marketing and PR making up 34% of all take-up in the South Bank, totalling 1.6 million sq ft. And the interest of the DAMIT sector in the capital is unlikely to slow any time soon, according to BNP Paribas Real Estate, which in its latest research into the sector found that 64% of media tech companies plan to increase the number of employees in London over the next three years, an increase of 18% in headcount overall. It s clear that 2015 is going to be a vintage year for landlords on the South Bank, with rental growth on the cards. Julian Hind deals with leasing, sales and development at commercial property advisers Union Street Partners, and says: It is incredible that an office market spanning just 20 million square feet has attracted some of the biggest leasing deals of the last few years, all in and around the media sector. No other office market in the UK boasts the same critical mass of companies from these sectors as the South Bank. News UK and Ogilvy & Mather lettings were landmark deals in 2013, which according to Union Street Partners merely accelerated a trend that was already emerging with London s media sector moving south. News International acquired 6,410sq m at The Place, and Ogilvy & Mather took 20,095sq m at Sea Containers House. In October 2014 advertising company, Omnicom Group, completed a deal for 34,375sq m at Bankside 2 and 3, the second largest deal in central London that year. Other notable lettings in the same year involved marketing group Aegis and Lonely Planet. However, as predicted at the end of 2014, take-up at the beginning of 2015 has been significantly slower. Rupert Cowling of Union Street Partners also deals with leasing and development, and notes that this slowdown is, in a sense, artificial, as the demand is clearly still there, but the appetite for space is unlikely to be satisfied in the short term. All space at 240 Blackfriars is now let, with major occupiers including Lonely Planet, United Business Media and law firm, Boodle Hatfield. This only leaves two other buildings, The Shard and South Bank Central within the South Bank Tower as options for occupiers looking for space in the 4,500sq m to 10,000sq m bracket. Cowling predicts that a large portion of South Bank Central is likely to be pre-let before it is complete. The first phase of the building is due for completion in the middle of In the first quarter of 2015 only 20,942sq m of office space has been let, which, according to Union Street Partners, is a drop of 70% on the fourth quarter of The top three lettings of the quarter were all by occupiers from the serviced offices and collaborative working sector. And the thirst for space is unlikely to be quenched any time soon, with little development in the construction pipeline. No other office market in the UK boasts the same critical mass of companies from the media sector as the South Bank previous page, opposite and above right: 240 Blackfriars has been fully let, with major occupiers including Lonely Planet and United Business Media. above left: Omnicom Group has leased 34,375sq m of space in Bankside 2 and 3. southwarkmagazine.com issue 13 summer

5 above: The redevelopment of London Bridge station will improve existing connectivity and attract further regeneration. left: Peabody Housing Association s Borough Triangle development includes new workspaces. Union Street Partners noted at the end of 2014 that this lack of supply of suitable office premises had reached a critical point, which would have a considerable impact on rents. Nonetheless, the South Bank remains a strong investment opportunity, and there is excitement around the London Bridge Quarter, which is expected to deliver a further 16,722sq m of retail space. Peabody Housing Association is also likely to get planning permission over summer 2015 for its Borough Triangle development at Elephant and Castle. The site sits between London South Bank University, Borough Road and the Crown Court on Newington Causeway. It will create a mixed-use scheme including cafes and shops, featuring modern and sustainable homes, as well as new workspaces. The site is currently home to IPSOS MORI buildings and a Baptist church on Borough Road, which will remain. The development will also feature a brand new club and head office for the Ministry of Sound, which has 200 employees. In March, Sampson House and Ludgate House, adjacent to Blackfriars station s southern entrance, were bought by a consortium consisting of Native Land, Temasek, Hotel Properties and Amcorp Properties, with the intention of creating Bankside Quarter, for which planning permission is in place. It will include 489 apartments and 26,756sq m of office space, alongside a retail, leisure and cultural offering. Derwent London has planning permission for Wedge House, 40 Blackfriars Road, for a 15-storey, mixed-use scheme, including four floors of office space. The site will also comprise a 192-bedroom Hoxton hotel with Soho House members club, a rooftop bar, cafe, and restaurant. The development would be open to the public and is planned to complete in At Blackfriars Circus in Blackfriars Road, Barratt Homes mixed-use development entails demolition of Hill House and Erlang House, to make way for 336 homes, shops, cafes and 2,787sq m of office space. The scheme is due to complete in At 20 Blackfriars Road, demolition was scheduled for June 2015 and the scheme is redesignated as 18 Blackfriars Road. A new planning application is expected in the autumn, proposing more employment space with larger and improved public realm. In a market that favours landlords, investors are eyeing up opportunities and interest is unlikely to dampen any time soon along this much sought-after stretch of Southwark s riverfront. 58 issue 13 summer 2015

6 Crest Nicholson presents THE SE1 PORTFOLIO Proud to be building in Southwark 1-19 Valentine Place, London, SE1 8QH 61 homes & 24,000 sq ft of commercial space neighbouring the cultural hub of The Cut & nestled around a communal garden. Brandon House, 180 Borough High Street, London, SE1 1LH 97 homes & 37,000 sq ft of commercial space in a prominent position opposite borough underground station Melior Street, London, SE1 3QQ 37 homes, 5,000 sq ft of commercial space & a community centre; ideally located just 505 meters away from the Shard. For more information: londonenquiries@crestnicholson.com Digital illustrations are indicative only.