We note that recently, Ernst & Young (E&Y) announced that they are looking to increase the proportion of flexible offices in their estate from 10% to 30% in the UK and Ireland. Compare this to our latest discussion on a turnkey half floor in the same building at 27 per square foot with virtually no rent abatements on a three-year lease, so still about 27 per square foot net effective, resulting in a 50%+ gain on net effective rent. Thus, the flexibility of being able to scale up and down on space is helpful but not essential. Should You Put Your Job On AI-Pilot Mode? Moving forward, for many companies flexibility is going to be key when it comes to office space leases. Latest fund raise exceeds the235m raised by thepredecessor CFP II fund in July 2016, Tritax Big Box REIT sells three non-core UK logistics warehouses for 125m, Fundraising details for Carlyle Europe Realty are currently unknown, EQT Infrastructure VI to buy 68% stake fromSK Square andMacquarie forKRW2trn, Partnership will initially focus on developing two onshore wind projects with a combined 500MW capacity, GICs equity is part ofEDPs plan to invest 21bn into renewables by 2026, Copyright 19972023 IPE International Publishers Limited, Registered in England, Reg No. You can unsubscribe or manage your preferences at any time. Sign up to our weekly round-up of plastic free stories. Reading Time: 2 minutes Across Europe and the US, real , Reading Time: < 1 minute The London-focused office REIT Great , Reading Time: 2 minutes In this paper, we lay out , Reading Time: 3 minutes The internet has already changed the , Reading Time: 4 minutes As weve discussed before, the office . We are a UN PRI signatory and a GRESB participant. Suddenly, Martin stopped and turned to Mike, remarking with some surprise even the adverts are all in English! Of, Recently, you might have heard us discuss how we think that leasing agents are significantly less incentivised at the individual level here in the UK than they are in many other real estate markets around the globe. While US real estate outperformed in recent years, all investors know that past performance says little about future returns, and the next decade may look very, The internet has already changed the lodging sector in meaningful ways. Provide spaces and services that enhance the productivity, health and wellbeing of colleagues and members. Clockwise will cater to businesses of all kinds, ranging from freelancers to SMEs, whilst also regularly hosting . LOCATION Mountbatten House, 1 Grosvenor Square, Southampton, SO15 2JU. This included a 32K SF Liverpool outlet opened in 2019. It was founded in 2010 by Brandon Hollihan and Michael Kovacs. The London-based private equity real estate investment firm said it has bought Yorkshire House in Leeds, Linley House in Manchester, Broadwalk House in Exeter, and Mountbatten House in Southampton. The Future of Commercial Real Estate in San Francisco Doesnt Look Good, 2023 Future Of Work Forecast: 3 Things CRE Players Must Do To Stay Relevant In 2023, The Office Space Sector Is Projected To See A Strong Fourth Quarter In 2022, Meet Flex Spaces More Chaotic Cousin: Gray Spaces, The Future Of Our Offices And Our Planet Hinges On The Real Estate Industrys Priorities, JLLs New Future Of Work Survey: The Next Few Years Are Crucial For Commercial Real Estate. We invest in real estate located in and around select UK and European cities. Equally importantly, the velocity of leasing was materially improved as a result of the Cat B turnkey fitout as the switching costs for potential tenants to come into Waterloo Street were significantly lowered. Mountbatten House, home to Clockwise Southampton, is a new, flexible co-working space designed to encourage members to interact, network and socialise. Instead, we offered them space in our other building at 58 Waterloo Street nearby on a three-year lease. The whole team is involved from the outset, and the process incorporates a holistic approach to sourcing investments, which leverages our local knowledge and extensive connections. By continuing to use this website you are giving consent to cookies being used. Yorkshire House. This combination is occurring elsewhere in our portfolio. As part of this engagement, Castleforge is implementing systems to monitor, measure and report sustainability performance to better understand and improve the environmental performance of assets. Online travel agencies (OTAs) allowed buyers to sort thousands of competing products and compare prices. PHONE. Castleforge Partners has acquired its first office building in Germany, in the historic old town of Bremen. Strive towards zero waste and use of sustainable materials, by embedding circular economy principles into the way we design, operate and maintain our spaces. Castleforge Partners' flexible workspace provider Clockwise will operate part of the building which is 67% occupied. The investor is . Please enter your username or email address to reset your password. If you continue to use this site we will assume that you are happy with it. Affordable housing Europe: Should investors be part of the solution? It plans to use its flexible workspace provider Clockwise to deliver a positive experience for occupants as well as attractive returns for its investors. With the investment, Castleforge plans to create flexible workspace through its provider, Clockwise. We began our journey into the serviced office market back in late 2012 with a paper that outlined the business plan for what five years later would eventually evolve into Clockwise. The clock reset to 20 seconds and Scherzer was already in the stretch. When you prefer some privacy or crave a space to call your own, dedicated private . Our views about that transformation are structured around a broader narrative about the evolution of information and communications (ICT) technologies. Embarking on a new partnership with Castleforge Partners, Sharkey has been appointed to undertake the 3m reconfiguration of the Category A listed Commercial Quay, Leith into Edinburgh's latest shared workspace by Clockwise. Castleforge said the site is currently at 67% occupancy, and . MESSAGE. Registered Office: 1 Kentish Buildings, 125 Borough High Street, London SE1 1NP, Germany eases tax on Spezialfonds investing in renewables, Ivanho Cambridge, Belfius, Belgiums SWF back co-living firm Cohabs, Patrizia Infrastructure acquires Italian bio-LNG producer Biomet. Approach; Culture; Impact; Insights; Contact; Investor Login Until the fourteenth century, silk was mainly imported from Asia. Additional phases are due to be released. It was founded in 2010 by Brandon Hollihan and Michael Kovacs. By continuing to browse our site you agree to our. LOCATION Leeds . The first phase, completed in July 2020 created over 35k sq/ft of flexible office space in Leith, one of Edinburghs busiest commercial districts. Castleforge has purchased Yorkshire House in Leeds, Linley House in Manchester, Broadwalk House in Exeter, and Mountbatten House in Southampton. What Does a Serviced Office Correction Look Like? LONDON-based property investment firm Castleforge Partners has appointed Christian Lerche to head its asset management in mainland Europe and to support further European growth, following its recent expansion into the German commercial market. This website uses cookies. Be the first to find this review helpful. Since the referendum vote in mid-2016, we have maintained an analysis of the dynamics of supply and demand in select European cities, since we believed that some could one day become competitors for the universe of UK tenants who need to remain within the EU. Our team is encouraged to collaborate and think creatively, to ensure that we retain our competitive edge. For the London, Given the substantial attention dedicated to a market update at our recent Annual Meeting, we thought that rather than a letter about the market, it would be more interesting to put together a one-off discussion piece focused on the U.K. planning system. It causes us some amused frustration that many brokers in our industry dont spend much time on a day-to-day, On a recent trip to Berlin to meet with the buyer of 160 Aldersgate (a Germany-based fund), Mike and our colleague Martin were walking around the Alexa shopping centre in Mitte. Biophilic design and employee wellbeing has been prioritised throughout the design by bringing nature into the heart of the project. Under Castleforge's Clockwise co-working brand, office tenants will be able to rent a private office, dedicated desk or choose club membership, a hot-desking model which provides start-ups with access to the benefits and facilities of more established businesses at a lower cost. Building value by improving the connection between people and real estate | Founded in 2010, we are a leading UK-based private real estate investor that combines research-led investment themes with vertical integration and in-house operating platforms. Cons. Castleforge has been repurposing parts of its existing UK portfolio as serviced space since 2018. Castleforge | 2,514 followers on LinkedIn. Across Europe and the US, real estate markets are strained today to a degree that we have not observed since the global financial crisis (GFC). Fill out the form below to get access to the full document. Higginson Strategy organises a number of exclusive events for clients and friends over the course of the calendar year. The Most Important Coworking Perk Of 2023: Brain Breaks, 6 Benefits Of Embracing AI In Your Coworking Space, Bond Collective Inaugural NYC Location Closing After Landlord Battle, Revive Your Coworking Space With A Wellness Program, Culturally Diverse Workforces Require Bespoke Mental Health Support, Dispelling the False Narrative About Working Two Remote Jobs, 4 Challenges in Navigating Remote Work Layoffs, Level Up To Reduce Stress How to Convince Your Boss Video Games Belong At Work, Programming Strategies For A Happy Workplace, The Rise of Work From Home Jobs For Disabled Adults: A Powerful Solution For Inclusive Employment, How To Create Office Environments That Fuel Both Introverts and Extroverts. Of course, were always keen either to challenge, At our annual meeting Mike discussed at length one of the very simple but powerful metrics we use to understand the rental cycles in London: the amount of space under construction. He is also a former Director at Tristan Capital Partners. The first phase, completed in July 2020 created over 35k sq/ft of flexible . In 2007 Tonstate Hotels bought the hotel with a funding package from Bank of Scotland Corporate in a deal believed to be in the region of 30m. To receive priority invites and tips on how to communicate purpose please add your email. Across Europe and the US, real estate markets are strained today to a degree that we have not observed since the global financial crisis (GFC). Upon full stabilization to an average 90% occupancy level, we are a net EBITDA per square foot on Clockwise that is typically 76% above market rents versus an overall cost basis to achieve this that is only 23% higher than traditional fit outs. He struck Adams out. A more localised approach is ideally suited to the current Covid-19 climate as people seeking flexible working closer to home becomes commonplace. With 20 years of experience in the German real estate market, Christians knowledge of the sector will become invaluable to us as we continue to evolve and manage our commercial portfolio across Europe., Commenting on his new role, Christian Lerche added: Castleforges deep understanding of the commercial real estate market makes it uniquely placed for further expansion across Europe and specifically Germany. Our experience has shown us that most smaller and medium-sized enterprises, especially in UK regional cities, are not tech and software businesses that grow from two to 200 employees overnight. Since 2000, construction costs have outstripped inflation by nearly two times. 685 1784 92. To achieve this vision, we have created a framework to guide our actions. Clockwise Brochure. . Castleforge Partners Ltd. Castleforge Partners Limited operates as a real estate investment firm. Clockwise Bristol is the second Grade II listed building that the business has redeveloped following the opening of Edward Pavilion in Liverpool's Albert Dock, . When doing like-for-like comparisons of serviced office product, one of the most interesting things we have found was that while serviced office as a product is far less developed and sophisticated on much of the continent when compared to UK regional cities, the serviced office desk rates are often higher than they are in UK regional cities. The investment comes after Castleforge's research team identified Exeter as having one of the fastest growing city economies in the UK. Proactively support the UKs levelling up agenda and help reduce inequalities. It is therefore often helpful to draw parallels to previous market cycles as a way to help us understand what may be happening now. London-based property investment firm Castleforge has announced the acquisition of five multi-let office buildings on the historic Koninginnegracht in The Hague as part of its first expansion into the Netherlands property market. Would you like to read more? PMP enabled this through our multi disciplinary services working collaboratively with the design team and the client. Most Popular Yorkshire workplace introduces four-day working week with same pay - but staff. As each of these services were delivered by PMP, decisions and actions were achieved in a timely manner which in turn allowed the development of the brief and the construction phase to complete efficiently in terms of cost and programme, even during the Covid-19 pandemic and national lockdown. We strive always to be at the forefront of change, developing in-house capabilities and a thoughtful view on the world that together create a sustainable competitive advantage. in 2019. For more information visit www.castleforgepartners.com. Property investment firm Castleforge Partners has announced a significant expansion of its UK operation with the acquisition of four major office spaces across England. We expect to continue the strategy of providing a turnkey solution, and we are finding that were not the only ones. The off-market transaction was arranged by Eastdill Secured. Moving forward, for many companies flexibility is going to be key when it comes to office space leases. Castleforge Partners Limited is authorised and regulated by the Financial Conduct Authority. These tenants are not equipped to become temporary real estate experts by finding and negotiating with a contractor and architect to fit out their office space. Brandon Hollihan, Founding Partner of Castleforge Partners said: We are thrilled to welcome Christian during this exciting period of growth for Castleforge. Castleforge | 1,896 followers on LinkedIn. Recommend. CEO Approval. For those who want to drop in and drop out, this is their office for the day. If you continue to use this site we will assume that you are happy with it. Allwork.Space is committed to sharing news, updates and developments from flexible workspace owners, operators and suppliers across the globe. Clockwise Commercial Quay is their 4th development under this brand and the Client was keen to push the design to new and higher standards whilst maintaining a viable budget. Castleforge Partners has created new office space at Edward Pavilion . Belfast, 100,000 sq. This sounds like a superior deal, but they still chose to take Clockwise at Savoy at the full rack rate, citing two reasons: first, their lack of desire to pay upfront the 50,000 or more for a security deposit and fit out cost and second, avoiding the need to find someone internally who would take the time to work with an architect and contractor to design and fit out the office as nicely as we had done for one of the 15-desk units at Clockwise. Bremen has a thriving economy, with a generation of young professionals and start-ups who are increasingly seeking flexible-office models as opposed to the usual traditional offering. U.K. Planning System Pitfalls and Opportunities. What is a little less intuitive is that different sized occupiers value each of these two benefits to varying degrees. From modest beginnings in Glasgow, we currently . In his January 2021 memo, Something of Value, he writes that their obsession with cheapnessor more specifically, with a nave definition of cheapnesshas confounded their ability to spot genuine value. Business Outlook. We are deeply committed to sustainability, and want to be at the forefront of providing environmentally and socially responsible workspaces that contribute to the well-being of all who use our spaces. Clockwise is owned by private equity real estate investment firm Castleforge, which owns and operates its spaces across the UK. Whether you need to meet face to face, log on or do it all at once, all Clockwise buildings have meeting rooms that come fully equipped with tech to create a seamless experience across the physical and virtual. With extensive experience in hospitality and real estate, she is perfectly positioned to lead the business through this . It is the third major hotel investment made by Castleforge this year, following deals . 20-strong delegation from Property Agents Independent attended launch of 70,000 sq ft office scheme at Edward Pavilion in Liverpool's historic Royal Albert Dock. VISIT CLOCKWISE Mid-market Residential Management Professional, responsive, corporate landlord enhancing the tenant experience Standardised, high quality product Modern units rented at affordable levels Increased operating and management efficiencies Locations around key employment hubs in undersupplied locations VISIT OCASA Clockwises owners, Castleforge Partners, has appointed Evora, a leading sustainability consultant, to help develop and implement a sustainability strategy framework for their business and investment portfolio. To date, Castleforge Partners have invested over 500 million of asset value throughout . We use cookies on the site to improve your experience. STATUS Completed. But the Black Death led to a consolidation of European wealth, which funded fresh investment in fixed capital, enabling local entrepreneurs to produce silk, Howard Marks is worried that value investors have lost the plot. An office to call their own, great for an SME who needs to work at pace and express their company culture. Martin Claisse - Castleforge Partners: Project Manager: Adrian Poucher - Malcolm Hollis LLP: Architect: John Lee - Povall Worthington: Cost Consultant: Michael Riordan - Linesight: M&E Engineers: Thomas Lehd - Lehding Services Design: Structural Engineers: . "We have loved working with Clockwise and Castleforge Partners to breathe new life into this beautiful heritage building," comments Linda Morey-Burrows, . Located in the prime central business district, the 5,000 sqm Martinistrasse building was acquired off market and is currently at 63 percent occupancy, presenting a repositioning opportunity for Castleforge. We also keep in mind that Clockwise is not one fits all solution, and so we are careful to select the type of buildings and locations that best suit this offering while also limiting liquidity risk on exit. Since launching in 2017 weve made it our business to anticipate the needs of our members and their companies from day one. Website. Our collective knowledge and experience, including input from development management, asset management and operations, is brought to bear in each investment decision. The building will be fully refurbished to enable . Tony McDonough reports. Rents have remained relatively stable in relation to wages in recent years. Clients: Castleforge Partners, Clockwise. Clockwise Castleforge Partners is a successful private real estate investment firm that has invested over 500 million in asset value throughout the UK since 2010. Clockwise is headed up by COO, Alexandra Brunner. Status: Complete. The four sites together hold a gross development value of over 175 million. The Clockwise Positive Impact Strategy 2021 is based on our biggest environmental impacts, our values, and our opportunity to influence. The turnkey solution is certainly beginning to pay dividends. Rachael Pittaway is a director at Castleforge Partners, the real estate investment firm behind Clockwise Offices. Adam Riggs CEO Of Frameable | Can a Virtual Experience Really Replace the Office? Lerche brings20 years of experience in the real estate sector, leading value-added asset management for a range of private equity and international institutional investors, and working closely with stakeholders to steer and reposition portfolios. Sustainability is ingrained in our corporate vision and values, our culture, and everyday actions. It captures our four key goals Climate Change, Circular Economy, Health & Wellbeing and Socio-Economic Impact and details a roadmap for achieving them. E1 5LP, Work.Life As landlords, this ability to provide both traditional leases and flexible space in the same building has served us very well, and sure enough this same tenants interest was piqued, and they are seeing what Fora Whether your HQ is too far away or working from home is too hard to handle. Sustainability is ingrained in our corporate vision and values, our culture, and everyday actions. Well start by laying out that narrative, since it is crucial to understanding the rise, Our 2021 white paper takes up a very basic question:why do people live where they do? Why should property investors consider Leith? PROPERTY investment firm Castleforge Partners today (November 13) announced the acquisition of Broadwalk House, a corporate office building in Southernhay Gardens, Exeter. Clockwise's owners, Castleforge Partners, has appointed Evora, a leading sustainability consultant, to help develop and implement a sustainability strategy framework for their business and investment portfolio. Again, back at Savoy weve recently signed a 25-desk lease at Clockwise on a month-to-month basis with a major blue chip corporation. Since launching in 2017 we've made it our business to anticipate the needs of our members and their companies from day one. These new acquisitions signal continued confidence from Castleforges investors in secondary city growth, even amid COVID-19 uncertainty. Clockwise is headed up by COO, Alexandra Brunner. NAME. Pros. In April 2019, it was announced serviced office provider Clockwise would be the first occupier at the project. Five for five: Conran and Partners We speak to the design and architecture studio's longstanding principals and new owners, following a recently-completed buy-out. We are not alone in discovering that, given the choice, tenants typically prefer more flexibility around office size and more convenience of having a pre-fitted office space. Whether youre expanding your team or chasing your dream. commercial space Michael Riordan Managing Director, United Kingdom United Kingdom See All Contacts Contact Representative Back to all projects Mar 4, 2022 - Anonymous Employee. If economic fundamentals continue to soften, liquidity problems could turn, The London-focused office REIT Great Portland Estates (GPE) recently made an announcement that caught our attention. For example, Mike led the discussion that saw 160 Aldersgate leased to DLA, We recently read with some amusement and amazement an article in a UK property industry magazine, using research contributed by a UK property company, about a new way we should all be looking at office demand: net absorption. We use cookies on the site to improve your experience. The occupational cost of this would have been ~45,000 versus ~55,000 per year in Clockwise, a 20% saving for the tenant, while the initial rent free provided by us would have covered their fit out cost, keeping the overall capital cost the same over the three years in a demonstrably "better" building in a core CBD location. Can A.I. The real estate firm announced the purchase of Linley House on Friday, with the 68,000sq ft Dickinson Street site estimated to hold a gross development value of over 30m. We invest in real estate located in and around select UK and European cities. Read about how we use cookies and how you can control them by reading our Privacy Policy. To date Castleforge Partners has invested over 500 million of asset value throughout the UK and generated average returns in excess of underwritten . M2 1DH, We use cookies to provide you with a great experience and to help our site run effectively. LONDON-based property investment firm Castleforge Partners has appointed Christian Lerche to head its asset management in mainland Europe and to support further European growth, following its recent expansion into the German commercial market. Our vision is for a future in which every work environment and experience has a positive impact for people, places and the planet. To find out more, read our cookie policy. Clockwise offices are renowned for preserving architecturally significant and interesting details of the existing building and creating features of these as focal points in a contemporary designed office. We have been monitoring select markets where we think we can create a competitive advantage, though we are being judicious with our resources in doing so. ESG: Dont forget physical climate risk for real estate, On the right path? Manchester While we monitor performance on the operational assets, we are entering design stages for our fourth and fifth locations in Bristol and London, adjusting our deployment of Clockwise accordingly. Examples include skill-specific educational courses that team members are welcomed to take, our internal library filled with books (albeit many of which are still in pristine i.e., unread condition) or our, Within our discussion of serviced offices, its important to separate the product offering from the business model. Rapid Work Style Shifts Are Tanking Tax Revenues Can City Planners Catch Up? You consent to our cookies if you continue to use this website. The building will be fully refurbished to enable the firm to introduce its flexible workspace provider, Clockwise into the space, offering an alternative to traditional fixed-term offices. Project manager / cost consultant: Quartz. Edward Pavilion is a Grade 1 listed building based on a UNESCO World Heritage site with a mix of open-plan floor space and serviced offices operated by Clockwise. Following the success of our flexible workspace provider Clockwise in locations across the UK, we are now looking forward to refurbishing the building and saying Willkommen to our first Clockwise members in Bremen., Castleforge Partners was advised on the acquisition by IC Immobilien Gruppe.