NB Real Estate - Q4 2009 Review

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Take-up

Supply

Rental profile

Investment markets

Take-up

In Q4 take-up decreased by 36% to 789,000 sq ft down from 1.2 million sq ft in Q3. Twelve months earlier in Q4 2008 take-up was 317,000 sq ft.

In the year to December 2009 rolling 12 month take-up increased to 2.9 million sq ft up from 2.4 million sq ft in the year to September.

Supply

In Q4 availability decreased by 12% to 7.6 million sq ft, down from 8.6 million sq ft in Q3.

Over the last 12 months availability has decreased by 1% from 7.7 million sq ft available in Q4 2008.

20 Gracechurch Street, EC3V
Catlin Underwriting has taken 125,000 sq ft from Aviva and Atlas Capital Ltd at their 20 Gracechurch Street refurbishment. The rent is believed to be £42.00 per sq ft with 42 months rent free on a 15 year lease.

25 Copthall Avenue, EC2R
ING REIM has subleased 45,000 sq ft at 25 Copthall Avenue to telecoms provider Lebara Ltd. The tenants took a lease until January 2017 at a rent of £30.00 per sq ft and a market rent free period. NB Real Estate acted for ING REIM.

10 Dominion Street London, EC2M
IVG UK Ltd has sold its freehold interest to the Spanish company Metropolis for £20.2 million reflecting an initial yield of 6.75%. The property comprises 30,979 sq ft of office accommodation and is let to Fox Williams LLP until June 2016, at a rent equating to £46.52 per sq ft.