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The <strong>Leadenhall</strong> Building<br />
122 <strong>Leadenhall</strong> Street<br />
1
Authors<br />
Marianne Gatti, Liviu Neagu, Jahi Razzaq<br />
Carried out<br />
in ENVS1030 Introduction to Real Estate at the Bartlett School of Planning, University College London<br />
Date<br />
21. March 2016<br />
Content<br />
The Ledenhall Building<br />
Investment Summary<br />
Building Description<br />
Facts and Figures<br />
Architecture<br />
Sustainability<br />
Location in the City of London<br />
Context<br />
Culture and Relaxation<br />
Connectivity<br />
By Tube and Train<br />
By Crossrail<br />
Surrouding Developments<br />
The Aldgate Area<br />
New Constructions<br />
Occupation<br />
Tenures<br />
Tenancies<br />
Rental Values in the <strong>Leadenhall</strong><br />
Rental Values in the City<br />
4<br />
7<br />
8<br />
8<br />
11<br />
17<br />
19<br />
19<br />
20<br />
22<br />
22<br />
25<br />
26<br />
26<br />
28<br />
30<br />
30<br />
32<br />
35<br />
37<br />
Market Development<br />
2 3<br />
38
The Ledenhall Building<br />
The Ledenhall building – or fondly called the Cheesegrater by<br />
Londoners – is an architecturally impressive and highly workable<br />
office building on a prime site in the City of London.<br />
Why you should be interested? This brochure is going to show you –<br />
and convince you.<br />
References<br />
Image cover: http://www.dailymail.co.uk/news/article-2750808/Latest-addition-Londons-iconic-skyline-<strong>Leadenhall</strong>-Building-opens-doors-offering-stunning-views-city.html (access: 16.2.16)<br />
Image p. 4: http://www.building.co.uk/cheesegrater-tower-nears-completion/5067153.article (access: 10.3.16)<br />
Image p.5: http://www.ifsecglobal.com/fire-engineering-cheesegrater-london-landmark-case-study/ (access: 10.3.16)<br />
4 5
Investment summary<br />
• Iconic building in the heart of the dynamic City of London.<br />
• Floors 15, 27, 32 and 43 are still on offer.<br />
• „Inside-Out“ architecture provides extensive, open and flexible<br />
• spaces.<br />
• The building has BREEAM Excellent rating, which reduces<br />
• cost for cooling and heating.<br />
• The <strong>Leadenhall</strong> has the perfect location to profit substantially<br />
• from the opening of Crossrail in 2017.<br />
• The rents are lower than in the West End and Rent Free Perio-<br />
• des are longer.<br />
• Since market predictions forsee a further increase in rent pri-<br />
• ces, it is now the time to get hold of such a prime asset.<br />
6 7
Building Description<br />
- Facts and Figures -<br />
- Architectural Height: 224m<br />
- Occupied Height: 202.9m<br />
- Hights Ranking:<br />
Europe: 25<br />
UK: 4<br />
London: 4<br />
The City: 2<br />
- Construction: 2011-2014<br />
- Construction costs: approximately £340m.<br />
- Number of floors: 56<br />
Above ground: 52<br />
Under ground: 4<br />
- Lettable floorspace: 610‘000 ft 2<br />
- Floor to ceiling height 2.75m<br />
- Elevators: 26<br />
- Elevator speed: 8 m/s<br />
- Energy lable: BREEAM Excellent<br />
224m<br />
References<br />
http://skyscrapercenter.com/building/the-leadenhall-building/1194 (access: 16.3.16)<br />
Image: http://www.skyscrapercity.com/showthread.php?t=415718 (access: 17.3.16)<br />
Image: http://images.adsttc.com/media/images/5410/9bde/c07a/80b1/d700/0072/large_jpg/Key_Components‘_Expression.jpg?1410374613 (access: 17.3.16)<br />
http://www.insuranceage.co.uk/insurance-age/news/2126025/aon-takes-floors-cheese-grater (access: 17.3.16)<br />
8 9
“For me, The <strong>Leadenhall</strong> Building is about drawing people in. Yes, it‘s impressive;<br />
yes, it‘s an incredible feat of engineering; but it‘s also permeable<br />
and accessible in a way so many other buildings in the City are<br />
not. It engages people - they feel it belongs to them.” [Rogers Stirk<br />
Harbour + Partners]<br />
- Architecture -<br />
The <strong>Leadenhall</strong> Building is a stunning and unique skyscraper in<br />
Central London. Its slanted wedge shape has earned it the nickname,<br />
“cheese grater.“ The lean of the façade is designed so as<br />
not to obstruct the view of St. Paul’s Cathedral from Flee Street.<br />
The tallest building on the Square Mile, the “Cheese Grater” has<br />
the character of an office space with poise. The 46th floor terrace<br />
offers a stunning view of London, and the bottom floor offers a<br />
large and interactive public space. With 610‘000ft 2 of lettable<br />
floor space, this gorgeous building is a ripe opportunity.<br />
The Building is a project by Rogers Stirk Harbour + Partners.<br />
The firm’s focus is mainly on sustainability and social responsibility.<br />
They also tend to focus on spaces that engage the public and<br />
provide for social interaction with their developments.<br />
References<br />
http://www.theleadenhallbuilding.com/architecture/ (access: 17.3.16)<br />
http://www.rsh-p.com/projects/the-leadenhall-building/ (access: 16.3.16)<br />
10 11
The outstanding open floorplan allows a flexible arrangement of<br />
your office space, which is light flooded from three sides of glass<br />
facades. This advantage was made possible through the north facing<br />
circulation and service tower, which includes the lifts and<br />
bathrooms. This so called „Inside-Out“ design is typical for Rogers<br />
and can be described as „exposing the structural skeleton,<br />
servicing entrails and vertical circulation outside the main body<br />
of the building“ (Buchanan 2013). This can also be observed at<br />
the Lloyd‘s Building accross the street from the <strong>Leadenhall</strong>.<br />
Floor 6 Floor 22 Floor 40<br />
References<br />
Buchanan, Peter (2013): Inside Inside Out: Under the skin of Richard Rogers‘ show at the RA. http://www.architectural-review.com/rethink/reviews/inside-inside-out-under-the-skin-of-richard-rogers-show-at-the-ra/8652165.<br />
fullarticle (access: 17.3.16)<br />
http://www.theleadenhallbuilding.com/architecture/spaces/ (access: 17.3.16)<br />
http://www.rsh-p.com/projects/the-leadenhall-building/ (access: 17.3.16)<br />
Images: http://www.archdaily.com/547041/the-leadenhall-building-rogers-stirk-harbour-partners/54109c4ac07a80dfae000068-the-leadenhall-building-rogers-stirk-harbour-partners-level-40-floor-plan(access: 17.3.16)<br />
12 13
14 15
- Sustainability -<br />
The distinctive shape of the building is for sustainability just as<br />
much as for aesthetics. The south side, the side of the incline, is<br />
equipped with three layers of glass specifically designed to minimize<br />
the need for cooling systems to regulate office temperature.<br />
The north side contains elevators and other services, and in the<br />
top of the building- where there is too little space for offices- resides<br />
other infrastructure necessary to the inner workings of the<br />
building. This, and other aspects of the design, earned the building<br />
an ‘Excellent’ BRREEAM rating.<br />
References<br />
http://www.theleadenhallbuilding.com/architecture/ (access: 17.3.16)<br />
Images p. 14-15 & 16: http://www.theleadenhallbuilding.com/gallery/ (access: 17.3.16)<br />
16 17
1<br />
London Wall<br />
Liverpool Street<br />
Bishopsgate<br />
Location in the City of London<br />
- Context -<br />
2<br />
3<br />
Bank<br />
Cornhill Street<br />
<strong>Leadenhall</strong><br />
Market<br />
Bishopsgate<br />
4<br />
L<br />
3<br />
Lloyd‘s<br />
2<br />
St. Mary Axe<br />
Bevis Marks<br />
1<br />
<strong>Leadenhall</strong> Street<br />
Willis Towers<br />
The Gherkin<br />
Aldgate<br />
Aldgate High Street<br />
The City of London is one of the 33 Boroughs of London with<br />
an area of only one square mile. Here Londinum was founded<br />
by the Romans in 50AD and has since then evolved into one of<br />
the leading centres of global finances (cityoflondon.gov.uk). In<br />
2014, the City’s economy generated £45 billion, which equated<br />
to 14% of London’s economic output and a staggering 3% of the<br />
UK (Cambridge Econometrics 2014). This massive turnover is<br />
produced by 320’000 workers. Only 10’000 people actually live<br />
on the Square Mile in specific residential areas (City of London<br />
Carbon Footprint 2009).<br />
In the report “Decoding Global Talents” London topped the<br />
list for employee attraction, which again shows how competitive<br />
London is in terms of salaries, living standards and in attracting<br />
highly qualified workers (Roberts 2014).<br />
In June Britain will have a referendum on whether to stay in the<br />
EU (Wheeler & Hunt 2016). Even tough voices from both sides<br />
of the argument foresee Britain’s doomsday, the more realistic<br />
views are – either way – by far not that daunting. In case Britain<br />
stays in the EU, business continues as usual. In case Britain decides<br />
to leave the EU, the nation will very likely retain its pre-eminent<br />
position in the world’s economy. Outside EU regulations,<br />
Howard Shore explains, Britain “would be able to liberalise […]<br />
(their) economy, set […] (their) framework and rules to suit […]<br />
(the nation)” (Jenkins & Agnew 2016).<br />
References<br />
Cambridge Econometrics (2014): The Future of the City of London’s Economy. http:// www.camecon.com/FutureoftheCityofLondonsEconomy.aspx (access: 29.10.2015)<br />
The City of London (2009): City of London Carbon Footprint. https://www.cityoflondon. gov.uk/services/environment-and-planning/sustainability/Documents/pdfs/sus_carbon¬footprintreport.pdf (access: 18.11.15)<br />
The City of London: City Timeline. https://www.cityoflondon.gov.uk/things-to-do/visit-the-city/our-history/Pages/timeline.aspx (access: 3.3.16)<br />
Roberts, Hywel (2014): London top city for employment attraction. http://www.hrmagazine.co.uk/article-details/london-top-city-for-employee-attraction (access. 3.3.16)<br />
Wheeler, Brian; Hunt, Alex (2016): The UK’s EU referendum: All you need to know. http://www.bbc.co.uk/news/uk-politics-32810887 (access: 3.3.16)<br />
Jenkins, Patrick; Agnew, Harriet (2016): What would Brexit mean for the City of London? http://www.ft.com/cms/s/2/e90885d8-d3db-11e5-829b-8564e7528e54.html#axzz41rWxBVqs (access: 3.3.16)<br />
Photos and Map: Marianne Gatti<br />
18 19<br />
4<br />
Gracechurch St.<br />
Monument<br />
Walkie<br />
Talkie<br />
Fenchurch Street<br />
Fenchurch<br />
Street<br />
1:5000<br />
0 50 100 150 200 250m<br />
N
- Culture And Relaxation -<br />
The City of London is not only a place for business, but there<br />
are also many opportunities for culture and relaxation. The project<br />
“Sculpture in the City” is a free art exhibition in the public<br />
spaces of the City of London and is running for the fifth year in<br />
2016. Artists present their works in annually changing exhibitions,<br />
many of which stand in close proximity to the <strong>Leadenhall</strong><br />
building. This year, the “Cheese Grater” is actively participating<br />
in this program by providing the space for the educational programming,<br />
which should engage school children with the art installations.<br />
There are many places across the busy City of London, which<br />
invite people to spend a moment of tranquillity. Just outside the<br />
<strong>Leadenhall</strong>, there is a big open square with greenery and benches.<br />
However, there are also a variety of more quiet green spaces, hidden<br />
in small churchyards and alleys, which want to be explored<br />
and used for a lunch break in summer time.<br />
Two important cultural venues are the <strong>Leadenhall</strong> market and the<br />
Guildhall Art Gallery. The first one is a retail centre in a Victorian<br />
market hall, where events take place occasionally. The Guildhall<br />
Art Gallery is only a ten-minutes walking distance away from the<br />
<strong>Leadenhall</strong> and presents since 1886 art pieces mostly related to<br />
London.<br />
References<br />
https://www.cityoflondon.gov.uk/things-to-do/visit-the-city/art-architecture/sculpture-in-the-city/Pages/introduction-to-sculpture-in-the-city.aspx (access: 17.3.16)<br />
Image: http://hifructose.com/2015/07/06/londons-sculpture-in-the-city-presents-public-art-by-damien-hirst-ai-weiwei-and-more/ (access: 17.3.16)<br />
http://www.cityoflondon.gov.uk/things-to-do/visit-the-city/attractions/guildhall-galleries/Pages/guildhall-art-gallery.aspx (access: 17.3.16)<br />
20 21
Connectivity<br />
- By Tube and train -<br />
Moorgate<br />
Liverpool Street<br />
Rail services from<br />
Fenchurch Street: Tilbury and Southend Railway<br />
Liverpool Street: Great Eastern Main Line; West Anglia Main<br />
Line (google maps).<br />
Bank<br />
L<br />
8mins<br />
Aldgate<br />
L<br />
Canon<br />
Street<br />
Monument<br />
Fenchurch<br />
Street<br />
Tower<br />
Gateway<br />
Tower Hill<br />
References<br />
Google Maps: https://www.google.ch/maps/place/122+<strong>Leadenhall</strong>+Street,+London+EC3V,+Vereinigtes+Königreich/@51.513831,-0.0848679,16.36z/data=!4m2!3m1!1s0x4876034d5f990f3d:0x9e61a92d03c0a8dd (access:<br />
3.3.16)<br />
Tube Map: https://alex4d.files.wordpress.com/2009/09/tube-map-merchandising-vers.gif (access: 3.3.16)<br />
Map: Marianne Gatti<br />
1:7500<br />
0 100 200 300 400 500m N<br />
22 23
- By Crossrail -<br />
Liverpool<br />
Street<br />
L<br />
The benefit Crossrail is going to contribute to the City of London<br />
will be immense, since the number of people who are able to<br />
access work in the City will soar. Furthermore, the travelling time<br />
from Heathrow airport to Liverpool Street will shorten from a<br />
current 55mins to only 34mins. This strengthens the <strong>Leadenhall</strong><br />
buildings location as an international meeting point. Of high<br />
interest to a possible investor in the <strong>Leadenhall</strong> building is the<br />
fact, that Crossrail will create a £5.5 billion added value to the<br />
real estate along its lane (crossrail.co.uk A). The <strong>Leadenhall</strong> has<br />
the perfect location to gain increased value through the project.<br />
The closest station to the <strong>Leadenhall</strong> building will be Liverpool<br />
Street. Already in May 2017 the first trains will run from this<br />
station towards the East of London. The full line will be operable<br />
by December 2019 (crossrail.co.uk B).<br />
References<br />
Crossrail A: http://www.crossrail.co.uk/news/crossrail-in-numbers (access: 3.3.16)<br />
Crossrail B: http://www.crossrail.co.uk/route/improved-journeys (access: 3.3.16)<br />
24 25
Surrounding Developments<br />
- Aldgate Area -<br />
No area in London is spiked with more cranes than the City:<br />
Construction is everywhere. The Aldgate area used to be a deprived<br />
area with fewest people living there in the whole of London.<br />
This is changing with the Aldgate project. A new public square<br />
is under construction as well as new offices and residential units.<br />
These residences are of high interests to workers in the City, as<br />
they can easily walk to their workplace in just a few minutes<br />
(City A.M.).<br />
References<br />
https://www.cityoflondon.gov.uk/services/transport-and-streets/transport-planning/transport-projects/aldgate-area/Pages/about.aspx (access: 15.3.16)<br />
26 27
- New Constructions -<br />
22 Bishopsgate<br />
Mitre Square<br />
Aldgate<br />
Bank<br />
L<br />
The Scalpel<br />
Aldgate<br />
Development Area<br />
22 Bishopsgate<br />
- Offices<br />
- Cultural Programs on Ground<br />
- Floor<br />
- Retail on Lower Floors<br />
- Resaurant, Bar and free Viewing<br />
- Platform at the top<br />
The Scalpel - 52 Lime Street<br />
- Office Building<br />
Mitre Square 1<br />
- Office Building<br />
N<br />
Fenchurch<br />
Street<br />
1:5000<br />
0 50 100 150 200 250m<br />
N<br />
References<br />
22 Bishopsgate Image: http://www.dezeen.com/2015/07/01/replacement-london-pinnacle-skyscraper-officially-revealed-22-bishopsgate-plp-architecture-england-stuart-lipton/ (access: 16.3.16)<br />
The Scalpel Image: Photo by Marianne Gatti<br />
Mitre Square Image: http://www.mitresquareec3.com/building.php (access: 16.3.16)<br />
28 29
Occupation<br />
- Tenures -<br />
British Land and Oxford formed a joint venture in 2010 and<br />
together developed the <strong>Leadenhall</strong> Building. British Land owned<br />
the P&O Tower (Peninsular and Oriental), which was occupying<br />
the site before the <strong>Leadenhall</strong>. The project was initially delayed<br />
by the financial crisis but was revived in 2010 when Oxford Properties<br />
joined the development efforts.<br />
Paul Brundage, Executive Vice President, Senior Managing Di-<br />
rector Europe of Oxford Properties said: “We are delighted to be<br />
partnering with British Land on the <strong>Leadenhall</strong> project. In terms<br />
of both strategy and approach British Land is strongly aligned<br />
with Oxford Properties’ own objectives, making us well placed<br />
as partners […]. In investment terms, this project […] is further<br />
evidence of our long-term commitment to, and confidence in,<br />
the London market.“<br />
British Land is one of Europe‘s largest Real Estate Investment<br />
Trust (REITs). Its portfolio includes commercial, retail and residential<br />
assets and is worth £19.7bn.<br />
Oxford Properties, established in 1960, is a global real estate owner,<br />
investor, developer and property manager with a portfolio<br />
of office, retail, multi-residential and hotel assets. Their Europe<br />
Portfolio is worth £4bn.<br />
References<br />
http://www.theleadenhallbuilding.com/architecture/the-team-behind-the-leadenhall-building/ (access: 16.3.16)<br />
http://www.britishland.com/news-and-views/news/archive/2010/22-12-2010.aspx (access: 16.3.16)<br />
http://www.britishland.com/about-us/our-portfolio.aspx (access: 16.3.16)<br />
http://www.oxfordproperties.com/corp/Web/Default.aspx (access: 16.3.16)<br />
30 31
- Tenancies -<br />
According to a press release from 29th of January 2016, the<br />
<strong>Leadenhall</strong> Building is now 94% let or under offer, with ten<br />
companies currently in occupation across 32 floors. Among the<br />
occupiers are global insurance broker AON, leading insurance<br />
companies Amlin and FM Global and other high-profile organisations.<br />
Floor(s): 35 34<br />
Area [sq. ft.]: 9‘970 10‘345<br />
Lease: 10 years 10 years<br />
Info: The oil and gas company Petredec will move its European<br />
headquarters here.<br />
4-13 19-24<br />
203‘333 111‘000<br />
19<br />
Insurer Aon occupies 1/3 of the total office<br />
space.<br />
Insurer Amlin occupies 1/5 of the<br />
total office space.<br />
References<br />
City A.M.: http://www.cityam.com/224329/british-lands-leadenhall-building-cheesegrater-has-two-new-tenants-petredec-and-fidelis (access: 16.3.16)<br />
http://www.cityam.com/220396/whats-cheesegrater-aon-amlin-heres-storey-storey-breakdown-every-business-leadenhall-building (access: 14.3.16)<br />
http://www.cityam.com/220396/whats-cheesegrater-aon-amlin-heres-storey-storey-breakdown-every-business-leadenhall-building http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/9749648/Insurer-Amlin-rents-space-in-the-Cheesegrater.html<br />
(access: 16.3.16)<br />
http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/9749648/Insurer-Amlin-rents-space-in-the-Cheesegrater.html (access: 16.3.16)<br />
http://www.freeofficesearch.com/OfficeSpaceNews/Aon-Signs-Office-Space-Pre-Let-At-The-<strong>Leadenhall</strong>-Building (access: 16.3.16)<br />
32 33
Most of the occupiers have decided not to disclose details of their<br />
contracts. However, the rental value in the <strong>Leadenhall</strong> building<br />
is believed to be over £70 per ft 2 , being one of the highest in the<br />
City.<br />
Servcorp, is currently occupying Level 30, which provides 30ft 2<br />
on a rent of £72.50 per ft 2 . The lease term is 15 years, with a bre-<br />
- Rental Values in the <strong>Leadenhall</strong>ak<br />
option at 10 years. There is also an initial rent free period of 24<br />
months and there will be a second rent free period of six months,<br />
should the option to break not be exercised.<br />
The <strong>Leadenhall</strong> building also established a record-high for City<br />
office rent. The insurance company FM global agreed to pay £85<br />
per ft 2 per annum for Floor 41, comprising circa 7,700ft 2 .<br />
References<br />
https://www.cityoflondon.gov.uk/services/transport-and-streets/transport-planning/transport-projects/aldgate-area/Pages/about.aspx (access: 15.3.16)<br />
34 35
- Rental Values in The City-<br />
Prime City office rents are typically £57.50 - £67.50 per ft 2 per<br />
annum and £72.50 - £82.50 per ft 2 for the upper floors of tower<br />
buildings.<br />
“City core rent, rates and service charge occupancy costs are typically<br />
£85.00 - £102.50 per ft 2 compared with £155.50 - £187.50<br />
per ft 2 for prime West End space.”<br />
In ‘landmark’ towers, such as the <strong>Leadenhall</strong> building, rents tend<br />
to be higher. For the upper floors of such buildings, rents are now<br />
typically above £77.50 per ft 2 per annum.<br />
Usual rent free periods for 5-year leases go up to 11 months in<br />
the City core area. In comparison, for a 5-year lease in the West<br />
End prime, the rent-free period typically goes up to 8 months.<br />
References<br />
Carter Jonas: http://www.carterjonas.co.uk/our-services/~/media/BF71AF1B0F854D09BD82542AA35E06EF.ashx (access: 16.3.16)<br />
36 37
Market Development<br />
The demand for Central London office space has continued to<br />
increase during 2014. The increasing demand also impacted on<br />
the rental values of the area. Consequently, the office market<br />
landlords have increased the rents by circa £2.50 and £7.50 per<br />
ft 2 per annum since 2014. For the next two years, the rents are<br />
expected to continue rising.<br />
Comparison and Expectation:<br />
Q1 2015 Q1 2016 Q1 2017<br />
City Prime £62.50 £65.00 £67.50<br />
The increasing rental prices encouraged the signing of pre-letting<br />
agreements, which enabled the tenant to benefit from a lower<br />
commencing rents once construction has been completed.<br />
The <strong>Leadenhall</strong> Building was 50% pre-let prior to completion.<br />
The proliferation of pre-letting agreements, however, is limiting<br />
choice and accelerates the already existing trend for rent increase.<br />
However, according to a market research of Carter Jonas, the current<br />
wave of office developments is likely to restore by 2017/2018<br />
the stability between supply and demand.<br />
References<br />
Carter Jonas: http://www.carterjonas.co.uk/our-services/~/media/BF71AF1B0F854D09BD82542AA35E06EF.ashx (access: 16.3.16)<br />
Image: http://www.theleadenhallbuilding.com/wp-content/uploads/2014/08/The_<strong>Leadenhall</strong>_Building_Aerial_101-1024x684.jpg (access: 16.3.16)<br />
38 39
Investment summary<br />
• Iconic building in the heart of the dynamic City of London.<br />
• Floors 15, 27, 32 and 43 are still on offer.<br />
• „Inside-Out“ architecture provides extensive, open and flexible<br />
• spaces.<br />
• The building has BREEAM Excellent rating, which reduces<br />
• cost for cooling and heating.<br />
• The <strong>Leadenhall</strong> has the perfect location to profit substantially<br />
• from the opening of Crossrail in 2017.<br />
• The rents are lower than in the West End and Rent Free Perio-<br />
• des are longer.<br />
• Since market predictions forsee a further increase in rent pri-<br />
• ces, it is now the time to get hold of such a prime asset.<br />
40 41