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London skyscraper to become the most expensive office block in the UK

London skyscraper to become the most expensive office block in the UK
London skyscraper to become the most expensive office block in the UK

A skyscraper in London is reportedly set to become the most expensive office block in the United Kingdom after being put up for sale for a sum of £1.8 billion. The 37-storey 100 Bishopsgate building is situated at the center of the financial district, which houses the investment bank Jefferies, the Royal Bank of Canada, and law firm Freshfields.

The sale reportedly comes in spite of a transition to remote working amid the COVID-19 pandemic. Prominent companies comprising HSBC, Capita, Sainsbury’s, and Lloyds have all announced plans for closing or downsizing some of their London offices as more employees opt for flexible working patterns.

As per reliable sources, the transaction is anticipated to exceed the £1.3 billion sum that was paid for the Walkie Talkie building in 2017 regardless of an exodus from the City in 2020.

Brookfield, the Canadian asset management company, is planning to sell the entire building, whose construction was completed in 2019. Meanwhile, Far Eastern investors, who have been active in London through the entire course of the coronavirus pandemic, are supposed to be the most likely buyers.

According to property advisory firm, Colliers, a pickup in demand is expected in the latter part of 2021. This is because some occupiers intend to escalate their office footprints for making coming into the workplace more attractive for lockdown-weary staff, and for providing more space to employees for social distancing.

However, some bosses, comprising David Solomon, the Chief Executive of Goldman Sachs, stated that the work from home trend will not be sustained as several enterprises require face-to-face contact for fostering collaboration and innovation, and for training and guiding the next generation.

For the record, the amount of vacant office space in London went up 75 per cent year on year to a nine-year high in March 2021, cites Colliers. The firm projects that London vacancies will peak this year at the rate of 10 per cent. This level has not yet been witnessed since the last major recession was triggered by the 2008 financial crisis.

Source credit: https://www.theguardian.com/business/2021/apr/04/london-skyscraper-100-bishopsgate-set-become-uk-most-expensive-office-block-remote-working-pandemic

 

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Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for newsorigins.com, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.