NEWS ARCHIVE
ICONIC OFFICE TOWER CENTRE POINT FULLY LET FOR THE FIRST TIME | 11/08/09
London landmark focus of a renaissance in the Capital’s West End
Iconic London office tower Centre Point is fully let for the first time in its over 40 year history following the letting of 4,450 sq ft of space on its 29th floor to software intelligence company Onalytica, which is owned by the original founders of Bebo.
One of the Capital’s landmark buildings and a striking part of the skyline, Centre Point has been revitalized and is now the focus of a much wider renaissance of London’s West End.
Over the past four years, under the ownership of Targetfollow, one of the UK’s leading private property groups with a £1 billion City Centre portfolio, not only has the offer for tenants been significantly upgraded but the yield has been improved and the rental income made more secure.
At the time the company bought the building, it had 12 vacant floors, some 25% of the floor area, with a further 14 floors let on leases that were due to expire within three years and largely medium-sized IT sector tenants.
Today Centre Point is a vibrant vertical village, which has benefited from a comprehensive £14 million Grade A refurbishment programme of 23 floors or 72% of the building in four years.
Vastly improved offer attracts blue-chip global tenants
Occupiers in the building now range from William Morris Agency- the top US talent agency, Aramco- one of the world’s biggest companies and the state-owned national oil company of Saudi Arabia, Petrochina- the most profitable company in Asia, and EA Games-a market leader in the electronic gaming industry not forgetting its longest serving tenant, the hugely respected and influential CBI, which hosts a continual stream of visiting dignitaries, heads of state, industry leaders and politicians.
All of these companies are global operators and had an extensive choice, yet all were sold on the unique selling points of the highly professional concierge and front of house flexible office accommodation, amazing views, and the excellent quality of shared services including Targetspace conference and café.
The addition of Paramount Private Member Bar and Restaurant following a change of use to the top two floors of the Tower has been a fantastic facet to Centre Point, raising its profile considerably and providing a highly prized amenity for existing and prospective tenants. Members include a number of high profile visitors, with the likes of Lord Saatchi, Keanu Reeves regularly attending the building.
Value of the property has increased dramaticallyThe property now provides a secure income stream with the immediate opportunity to benefit from further rental growth through 14 office rent reviews occurring over the next three years, giving the scope to increase the current annual income by circa £2 million pa.
The current total annual committed income is just under £8 million which is a 70% increase since purchase.
Targetfollow’s implementation of its asset management strategy has significantly improved the building’s worth. Office rents have grown from £35.50 psf at purchase to £63 psf in 2007, the latter being the highest office rent achieved since the building was constructed.
Future development offers further investment uplift
Centre Point is at the heart of one of London’s most intensive urban regeneration plans and the focus of the renaissance of the Capital’s West End. The general infrastructure and public realm serving Centre Point will be significantly improved over the forthcoming years with the upgrade of Tottenham Court Road Station and subsequent development of the ambitious £16 billion Crossrail scheme. The latter will bring Heathrow Airport within a 25 minute train journey to the west and Canary Wharf within 15 minutes to the east.
Centre Point is also set to become the focal point of London’s newest business/leisue/residential community. The sites occupied by Centre Point, and nearby properties, have been identified by the planning authorities as a key area for intensification within Central London, where high-density mixed-use development will be promoted.
Targetfollow’s Development Department continues to progress the design parameters of a proposed scheme, with a view to submitting a planning application in 2010.
Ian Fox, Targetfollow’s Managing Director, commented:
“Centre Point has a rich and colorful history and as is widely known was left empty by a previous owner for many years. However, I believe it is now regarded, as it always should have been, as one of London’s most iconic buildings, which brings character to the Capital’s skyline and is attracting great reviews for its design, architecture and services. I think it easily ranks among the world’s most recognisable buildings.”
Cedric Kennedy, CBI Finance Director, commented:
“As the largest tenant in Centre Point we have found Targetfollow to have a refreshingly different, engaged and sensibly commercial approach to their role as our landlord. They are very different to their more conventional predecessors and we much appreciate that.”