London’s office market was boosted on Thursday as an investor inked a deal to create a new 11-storey project near London Bridge station, and a insurer signed for a new home in the City.
In the investment market, Barings, a real investment manager which operates out of the US, Europe and Asia, said it had teamed up with London-based property developer LBS to pay £43.3 million for a South Bank site.
Work on the site is expected to start later this year, and there is consent for around 150,000 square feet of new office space.
Occupiers at the Squire & Partners-designed building will have access to a communal terrace overlooking the Thames and cycle storage space.
The purchase from LaSalle Investment Management comes despite much debate on how future office demand will look.
Numerous employers are looking at post-pandemic workspace plans that could see some reduce space. But a number of investors expect businesses will still seek modern and environmentally-friendly offices.
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.”
He added: “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.”
Elsewhere today investor Partners Group and developer YardNine said they have let 55,000 square feet of space at their EightyFen project to Royal London.
Darren Smith at Royal London, said: “Our colleagues will benefit from collaborating in a new, modern and sustainable space with innovative smart technology embedded throughout.”