Office Space in Town, one of the UK’s leading serviced office providers, has announced the £21.35 million acquisition of the long leasehold interest in 20-22 Tudor Street, situated in London’s sought-after Midtown District, from international real estate investor and asset manager Meadow Partners.
Tudor Street is ideally located for businesses seeking a prestigious, Central London office, as it is prominently positioned on the north side of Victoria Embankment and very close to the iconic St Paul’s Cathedral.
The area is highly sought after, attracting a range of international businesses, including such global firms as Amazon, Bank of America Merrill Lynch and Goldman Sachs. Also, given its close proximity to the Royal Courts of Justice, the Central Criminal Court and the Commercial courts, it is also home to many blue-chip, international law firms.
Tudor Street offers companies unrivalled connectivity with excellent communication and transport links. It is well-served with tube and bus connections as Blackfriars Station is only a three minute walk and Temple and City Thameslink stations are also within a short distance, providing easy access to London’s City, Gatwick and Luton airports.
London’s Midtown is one of Central London’s three principal office markets and demand in the area continues to increase driven by a range of leading financial, law and professional service firms. Its high-quality office buildings at affordable rents have created a vibrant, popular first-class office location.
Office Space in Town is planning an extensive renovation of the seven-story building, which is 36,000 sq ft of office space. The approach will be consistent with OSiT’s ethos, of a strong commitment to outstanding quality, high-spec designs and providing the best possible services and experience for clients.
The plan is to re-develop the existing floor space, creating a variety of unique office spaces, and a host of conference and meeting rooms, with the addition of modern communal break out areas, cafés, and dining areas. There is also the opportunity for OSiT to enlarge the existing space and to provide a scenic roof terrace to harness the magnificent views over Victoria Embankment and the River Thames.
The acquisition of 20-22 Tudor Street complements OSiT’s existing portfolio of six unique, luxury central London serviced office properties – Mayfair, Monument, St Pauls, Euston, Waterloo and Liverpool Street – which enjoy an average occupancy rate of over 92%.
OSiT has the funding to acquire further buildings in the Capital, matched against its key criteria of being no more than a four minute walk to a tube station, available for refurbishment and renovation and not competing with other buildings in the OSiT portfolio.
Serviced offices globally are enjoying robust expansion and the UK serviced office market is no exception. The number of flexible and serviced office centres in the UK has risen to 5,320 over the past 12 months. More than 20% of commercial space in London was leased to flexible providers last year (up from 8.5% in 2016). The UK represents some 25% of global supply thanks to early adoption and strong demand from occupiers. Central London continues to dominate, as the leading city globally, ahead of New York and a number of European capitals.
Giles Fuchs, Co-founder, and CEO of Office Space in Town commented:
“Having not bought a building for a short while we are delighted to be back on the acquisition trail again and to acquire 20-22 Tudor Street. It is an exceptional location in the thriving commercial district of Midtown with excellent transport links and a host of fantastic businesses with offices in the area. Our renovation plans will deliver high-spec, modern flexible office space, with first-class tech and services, to meet the demands of modern ambitious, innovative businesses. This new acquisition complements our growing London portfolio of high-design flexible offices and with the serviced office sector in robust health, we continue to seek additional buildings to transform into the standard of offices that businesses need to expand and thrive in today’s fast-moving markets.”
Simon Eastlake, Developments Director at Office Space in Town, commented:
“This is a fantastic investment opportunity, which we managed to source off market and the building offers excellent potential for renovation into first-class flexible office space. Once this has been completed, the building will be one of the highest-quality offices in the Midtown area and will help further enhance the area’s appeal and spur its growth as one of London’s most desirable business districts. Demand is staying strong for flexible office space in London and we have record average occupancy levels across our portfolio, which bodes well for our future growth and expansion.”
Mike Tremayne, Principal at Meadow Partners, commented:
‘‘Tudor St was our first acquisition for the Meadow London Core-Plus Fund, having been purchased back in 2014, and this hold has generated significant income and capital returns to our investors. We wish OSIT all the very best with this latest addition to their portfolio.’’
BH2 & Taylor Wessing acted for Meadow Partners. OSIT was advised by Gryphon Property Partners and Nockolds.