NEWS ARCHIVE
FREEHOLD ACQUISITION ACCELERATES TOLWORTH TOWER DEVELOPMENT PLAN | 08/05/07
A strategy to transform one of London's best known office towers into a much sought after business centre is being successfully applied to another Targetfollow tower building.
Similar to Targetfollow’s iconic Centre Point building, Tolworth Tower in Tolworth near Surbiton is experiencing a significant boost in lettings and uplift in rental values since it was acquired by Targetfollow some 10 months ago. Both towers were designed by the renowned architect Richard Seifert.
Targetfollow has now confirmed that it is to push ahead with imaginative plans to refurbish and extend the 21 storey mixed use property and regenerate the surrounding area.
The development plans follow the £4.3 million acquisition of the freehold interest of Tolworth Tower by Targetfollow. The purchase price for the freehold was based upon an initial yield of 0.4% reflecting the strong market demand for an interest of this nature.
Since the landmark property was acquired by Targetfollow for £60 million during 2006 with the purchase being funded by Norwich Union, the value of the asset has risen by over 50%. Rents have increased from £18.50 psf to £19.50 psf and an additional 7,800 sq ft of office space has been let with a further 8,800 sq ft under offer.
Tolworth Tower comprises office, retail, hotel and leisure uses with a total net internal area of over 300,000 sq ft as well as 666 car parking spaces.
Julian Wells, Targetfollow’s Development Director, said that the freehold acquisition had encouraged Targetfollow to accelerate its major development plans, which could include the provision of up to 200 new residential units, improvements to the car parks and an enhancement and extension of the retail provision, as well as some refurbishment to the tower.
He added: "Our in-house development team has been working closely with PRC Architects to prepare an exciting plan which maximises Tolworth Tower's potential as a premier office, retail and residential location.
"We have had preliminary discussions to date with the planning officers at Kingston-upon-Thames Council and it is our intention to submit a planning application later this year."
Mr Wells said that the in-house Targetfollow team had gained valuable experience revitalising Centre Point where an integrated management and development strategy had resulted in attracting major new international tenants. He added that the same approach is being adopted at Tolworth Tower.