Property Matters - Mishcon de Reya

Transcription

History in the re-making
Breathing life into
heritage buildings
The Big Think
What does the future
hold for London?
Made in Brixton
The legacy of
Lord Mishcon
Issue 10
2013
Property
Matters
2013
THE
property
INDUSTRY’S
finEST MINDS
talked
LEGACY
•
here
Property matters. It has always had and will continue
to have a lasting impact on London's identity: physical,
cultural and social. Which is why the word "legacy"
features so prominently in the sector's vocabulary,
whether we are talking about great historic buildings
or the latest additions to the city skyline.
As new developments (Earls Court, Battersea Power
Station, King's Cross and the Queen Elizabeth
Olympic Park) spring up across the capital, the
challenge is combining new and old and creating the
best legacy for future generations. With co-organisers,
Central, we staged The Big Think for this very reason:
a series of high level discussions to stimulate industry
debate about the issues that really matter to the
future of London.
Of course, the word "legacy" has added significance
for Mishcon de Reya as we celebrate our 75th
anniversary. We have come a long way from our
Brixton roots. We are now part of an ever-changing
global commercial landscape. At the same time, our
rise can be traced to the values that have been with
the Firm since that day in 1937. We were recently
ranked 12th in the Sunday Times '100 Best Companies
to Work For' Awards 2013, and will continue to
maintain the culture that makes this such a great
place to work.
CONTENTS
Real Deals 1
MADE IN BRIXTON
2
HOME SUPERTAXED HOME
3
A selection of deals
our Real Estate department
have advised on
over the last year

ROUNDTABLE DISCUSSION
4
Planning: A blueprint for future review 6
YOUR RIGHT TO LIGHT BIGGER BASEMENTS
8
9
HISTORY IN THE RE-MAKING
10
BANKING ON THE NON-BANKS
13
HURRY WHILE SHOPS LAST 14
REORGANISING YOUR REAL ESTATE
16
MISHCON IN THE PRESS
17
MISHCON MOVERS
18
Representing D2 Private on the
£218 million sale of 23 Savile Row,
a 100,000 sq ft Grade A office
building in Mayfair, to Plaza Global
Real Estate Partners, the joint
venture between Quantum
Global Real Estate and LaSalle
Investment Management.
Advising Capital & Counties
Properties PLC on its 900,000
sq ft retail, office and residential
portfolio in Covent Garden,
central London. This includes a
number of high-profile lettings
as well as acquisitions valued at
almost £90 million in 2012.
Acting for CBRE on its high-profile
acquisition of leading UK commercial
real estate investment specialist
Franc Warwick – a transaction
shortlisted for Deal of the Year at
the Property Week Awards 2013.
We also advised on the acquisition
of independent West End specialist
EA Shaw.

The Big Think on the Future of London20
THE PRE-MIPIM BEACH PARTY
21
Acting for Delancey on the
£137.75 million sale of 40 Holborn
Viaduct, a 173,000 sq ft office
building in London’s Midtown, to
Cityhold Group.

Representing The Church
Commissioners on the sale of
Auckland Castle in County Durham
and its collection of 17th century
Old Master paintings. The Grade I
listed castle, along with 12 paintings
by Spanish artist Francesco De
Zurbaran and one painting by
English painter Arthur Pond, were
bought by financier Jonathan Ruffer.
Advising Chelsfield and the Ilchester
Estate on their redevelopment of
a 3.5 acre site housing the former
Commonwealth Institute in Holland
Park, west London. The scheme,
known as Hollandgreen, includes
The Design Museum and three
residential blocks. We are acting
on the sale of the apartments.
(See article on page 8.)
Editorial Team: Susan Freeman and Stephen Rowe
Nick Doffman
Head of Real Estate
[email protected]
+44 20 7440 7015
IMPORTANT: The information contained in this publication is only intended as a general summary and no action should be taken in reliance on it without legal advice. © 2013 Mishcon de Reya
Acting for Minerva on the City of
London's largest office letting of a
completed building since 2009.
Jardine Lloyd Thompson exchanged
contracts on a 25-year lease for
287,000 sq ft of space within The
St Botolph Building, London EC3.
The letting is shortlisted for Deal
of the Year at the Property Week
Awards 2013.
Acting for Almacantar on the
acquisition of CAA House and
1 Kemble Street in London’s West
End from Tishman Speyer. The
two 229,164 sq ft inter-connected
office buildings are leased to the
Civil Aviation Authority until
December 2019.
1
Made in Brixton
Philip Freedman CBE, QC (Hon) and Mitzi Grant in conversation with Susan Freeman
"The 'beginning' was May 1937. I had
passed my Final in that month and had
therefore qualified as a solicitor and – as
I see it now – had the impertinence at
the age of 21 to open in practice on my
own (such impertinence would not now be
permitted!)." This is an extract from Lord
Mishcon's foreword to the Firm's staff
magazine in 1992.
Since its formation in Brixton 75 years ago,
the Firm has grown enormously. However,
certain themes and values endure. And
despite the influx of new talent, it says
much for continuity that two partners on
the current Management Board together
with property partner Philip Freedman
were articled at the Firm.
Mitzi Grant, one of the Firm's longest
standing employees with 35 years' service,
was Lord Mishcon's secretary for 13 years.
She has watched the Firm grow from 40
to more than 500 people. "It was only a
small firm but it had major clients," she says.
"We always punched above our weight."
She speaks of Lord Mishcon's old-world
courtesy and charm and adds: "It was a real
privilege to listen to him negotiate over
the phone. He never raised his voice."
High-profile clients who sought out Lord
Mishcon for his wisdom and discretion
included top entrepreneurs, celebrities
and royalty, which is reflected in the Firm's
client base today. Freedman comments
that the Firm "was always a litigation
powerhouse but with a strong property
offering". He worked with Lord Mishcon
on many matters including Lord Palumbo's
controversial No.1 Poultry development.
A highlight of Freedman's early career was
the sale of the Miss World contest for
Mecca Ballrooms although "sadly he didn't
get to meet any of the contestants".
Lord Mishcon famously acted as trusted
intermediary between King Hussein of
Jordan and Israel's Shimon Peres, leading
to the 1994 peace treaty between Jordan
and Israel. Some meetings even took
place in his home. Mitzi tells how during
the peace-making process, King Hussein
and Shimon Peres were found talking
in Lord Mishcon's kitchen, one washing
the dishes and the other drying. She also
recalls being dispatched to greet King
Hussein on a visit to the Firm's Holborn
offices. Despite lectures on how to behave,
"etiquette went out the window" when
his limousine appeared to overshoot the
building and she ran down the road after
the car, calling "Kingy!"
The Firm has always had a strong sense of
community. Lord Mishcon was an officer
and supporter of many charities and this
philanthropic spirit still permeates the
Firm. Its CSR programme Mishcommunity
assists, among others, the local children’s
charity Coram as well as Kiva, a charity that
facilitates person-to-person micro-lending
in developing countries.
One of the Firm's key legacies is the calibre
of its people. It has always embraced
strong personalities and individualists,
and encouraged outside interests. One
partner chaired the Mozart Society and
another, Sir Roy Goode CBE, became a
professor of law. Lord Mishcon himself was
prominent in local government and, after
being appointed a life peer in 1978, was a
Labour Party home affairs spokesman,
and shadow Lord Chancellor. In 1992, he
was the first practicing solicitor to be
appointed an Honorary Queen's Counsel
on the recommendation of the then
Lord Chancellor. Freedman attended the
ceremony and – carrying on the legacy –
was awarded the same honour in 2009.
In 75 years, a lot has changed. As we grow
and the legal, political, social and technological
landscape around us evolves, we have adapted
as well. However, we will not compromise
our values and our unique culture.
It has been a year since the Government
first announced its onslaught against highvalue homes held in corporate wrappers.
Most of the detail of the proposals has now
been fleshed out, and it is clear that the
new rules will be with us from April 2013.
Yet, due to certain concerns about the
legality of the rules and enforcement,
HMRC instead opted to make owning
property in corporate vehicles as
unattractive as possible by introducing
the three-pronged anti-avoidance rules.
By way of reminder, a new 15% super rate
of Stamp Duty Land Tax (SDLT) now applies
to homes worth £2 million or more that
have been acquired by companies and
certain other entities. In addition, a new
mansion tax – the slightly clunky sounding
Annual Residential Property Tax – has been
introduced for companies and Capital Gains
Tax (CGT) applies to gains made by
companies (both UK and non-UK resident),
again subject to the £2 million limit.
This approach has mixed the SDLT debate
with fundamental tax policy issues such
as CGT and residence. By all means have
a debate about whether non-residents
should be allowed to remain exempt
from CGT on the sale of UK investment
properties, but it has not been helpful
to mix this in with what is ostensibly an
SDLT anti-avoidance exercise.
HMRC have over-complicated the debate in
this area. The original (perfectly valid) policy's
aim was to stop the avoidance of SDLT on
sales of high-value homes by the expedient
of selling shares in the non-resident property
owner. This policy could have been achieved
by seeking to tax the sale of shares in such
companies at higher rates: some form of
“property rich” stamp duty charge. This
was certainly what the author was expecting
them to do.
2
However, the Government has genuinely
listened to the business representations on
the proposals (including those of Mishcon
de Reya). It has accepted that owner
occupiers are the target of the rules so
has introduced extensive exemptions for,
among others, property traders, developers
and landlords.
While there is still the anomaly that the
SDLT reliefs for business from the 15%
rate will not apply before July or August,
when the Finance Act 2013 becomes law,
this has removed most – but not all – of
the burden from business.
Whether the rules affect inward investment
into the UK remains to be seen. Given
the business exemptions, it won’t scare
off non-resident landlords or developers,
although clearly activity in the last 12
months has been affected and deals have
been ‘parked’ due to the lack of reliefs
from the 15% charge.
Those acquiring properties in companies
for owner occupation will be hit by the new
rules. However, the key benefit for nonresidents investing into the UK – no tax on
capital gains on a future sale – can still be
achieved through the use of other structures
if this is the key driver. So London remains
an attractive market when compared with
other EU capitals.
Jonathan Legg
Partner, Head of Real Estate Tax
Email: [email protected]
Telephone: +44 20 7440 7092
3
Big thinking for a big city
Daniel Farrand: One question asked
in the discussions is the type of office space we
will require in the future because of the needs of the
TMT sector with their flexible and more activity-based working.
And then what does that mean for London office space that
already exists or is somewhere in the planning system? The possibility
of converting office – or retail – to residential in a big city is an interesting
concept. In terms of community, it could benefit areas that are high activity
zones during the week but dead over the weekend. But developers are most
likely to focus on London for office to residential conversions, at least in those
areas that don't get an exemption, when the reality is the
biggest benefit would be to areas
outside the capital.
Ian Paul: Spitalfields
and Boxpark are both good examples of landlords
taking a risk, offering pop-up retail space to tenants so that they don’t
have to spend much on fit-out. Once you get the retail mix right, the
bigger brands come – although there is the risk that this will gentrify the area
and force out the emerging brands. Unique concepts such as supper clubs
and pop-up restaurants have sprung up in edgy locations. From one
perspective, the recession has actually helped the retail
market, giving consumers more choice, both online and offline,
and encouraging more innovation. Even at the luxury end,
brands such as Burberry with its high-tech new
Regent Street store are feeding consumer appetite
for more creative approaches to shopping.
Nick Minkoff: In creative hubs,
as office and residential rents increase, many
bemoan the fact that the creative population is
being forced to move further out while the white-collar
workforce moves in, altering the character and vibrancy of
those areas. Some landlords are now starting to look at different
ways they can support SMEs, particularly within the TMT sector,
to keep them there. We are seeing an increase in landlords
understanding their needs and creating a community incorporating
ideas such as drop-in hubs/clubs for freelancers and
young businesses to both
work and network.
Nick Doffman: All public space
has to be created and managed to some
degree, so it was encouraging in The Big Think discussions that so
many developers mentioned drawing on the traditions of London and
talking to local communities when creating space. As a firm we frequently
use Red Lion Square for meetings and this reflects the growing need to
incorporate public space into work environments. Public realm in London
is not just about creating new space on major projects such as
Earls Court or King's Cross. It’s about making better use of what
we’ve got already, whether in the context of living or working.
We’re lucky to live in a city where there is such a variety
of public space available, from Leicester Square
to South Bank, from the markets to the parks.
4
What legacy are we leaving to the next generation of Londoners? It is such an important question that in 2012 Mishcon
de Reya and Central launched The Big Think on The Future of London. Teaming up with our sponsors, Derwent
London, Londonewcastle, James Andrew Residential and Capita Symonds, and with Property Week as media partner,
The Big Think debates brought together influential panellists from the worlds of development, telecoms, design and
local government to peer into the future and discuss what London really needs. And when they had finished, our Real
Estate department carried on thinking. Here are some of their thoughts on what happens next to our great city.
Beverley Lewis: Housing is one
of the biggest issues facing Londoners. The profile of the London buyer
is becoming more international, particularly following the 2012 Budget which
made local buyers – whether owner occupiers or investors – review their
requirements, especially in the £2 million to £2.5 million price range. Much
of our business at the prime end of the market is focused on buyers from
the Far East, Middle East, mainland Europe and Russia, and these are
the people who are sustaining the London market. They are less
sensitive to higher tax rates, many being used to higher
purchase costs in their own jurisdictions. However, it is
important to ensure that there is a supply of
housing available for the local community
to buy and rent.
Simon Hart: It was fascinating
hearing from the developers during the
debates as to how they go about creating a vibrant
community. They look closely at the working and living
habits of their proposed occupiers and try to provide the
right mix of people to create the desired tone of the environment.
There is a growing trend to provide public space with wi-fi in office
schemes so that tenants can engage and hold meetings
– and in some cases this is open to people
from outside the development.
Jonathan Legg: Following on from what
Beverley says, the tax breaks for foreign nationals
investing in UK property remain good so London is
still one of the best places in the world they can put their
money. The Government does need to ensure that the overall
taxation package remains coherent though. The worst thing it can do is
create uncertainty and confusion, which it did last year when announcing the
rules to tackle perceived Stamp Duty Land Tax avoidance in the high value
homes sector. While the Government has now remedied a lot of the
problems created last year, the decisions made then certainly
froze or delayed many transactions.
Susan Freeman: Because our series
of linked debates were attended by such a cross-section
of participants, they generated some interesting and thought-provoking
dialogue and ideas – and even the occasional conflict! Examples of the
many useful contributions included those on subjects ranging from how we
retain London’s authenticity and culture, the incorporation of technology
into public space, and how the Government’s plans for blanket
change of use from office to residential will affect the balance
of London’s ecology to how we provide appropriate
for sale and rental property for Londoners.
You can follow the debates on our website:
http://tv.mishcon.com/
5
Planning: a blueprint for future review
SIX WEEK
TIME LIMIT
ENFORCER
EAGLE EYE
TO SPOT
CASES TOTALLY
WITHOUT
MERIT
Judicial review in the planning arena has long
been the bane of the development industry
because of the time, expense and delay
involved in disposing of such actions. The
uncertainty created by judicial review
challenges can prejudice a developer's
ability to secure funding for the relevant
project, particularly in today's climate. It
is therefore important, wherever possible,
to avoid or to quickly defeat such challenges.
In recognition of these difficulties, the
Government proposes to reduce the
challenge period for planning decisions
from three months to six weeks with time
running from the date on which the claimant
knew – or ought to have known – of the
grounds for the claim, effectively bringing
the challenge period into alignment with
the statutory challenge period for appeal
decisions. It also proposes to:
Delays caused by such challenges can be
substantial. The Government, in its
recent consultation document Judicial
Review: Proposals for Reform, estimates
that in 2011 it took on average around 10
months for a judicial review challenge to
reach a conclusion. It has recognised that
judicial review proceedings not only create
delays and add to the costs of public
services, but also impact adversely upon
projects that are required to stimulate
growth and promote economic recovery.
— remove the right to an oral hearing
following a refusal of permission where
the case is assessed as “totally without
merit” or has been the subject of a prior
judicial hearing; and
It is not unusual for judicial review
challenges of questionable merit to be
lodged as a tactical delaying ploy. The
Government is alive to this practice
and has rightly indicated that it wishes
to ensure that weak or frivolous cases
are identified at an early stage and dealt
with promptly, while legitimate claims
are quickly and efficiently resolved. To
that end, it has flagged its intention to
promote reforms to three key areas of
the judicial review process, namely:
WEAK
CLAIM
REJECTOR
FIRM
HAND
— the time limits within which judicial
review proceedings must be brought;
— the procedure for applying for permission
to bring judicial review proceedings; and
— the fees charged in judicial review
proceedings.
NEW IMPROVED
JUDICIAL REVIEW
ACCELERATOR
6
Currently the court's permission is required
for a judicial review claim to proceed and
decisions on permission applications are
normally considered on the basis of the
papers filed. If the court refuses permission,
the claimant may request that the decision
is reconsidered at an oral hearing. Where
permission is granted, a substantive hearing
will follow. However it can often take up to
10 months for the case to reach substantive
hearing stage.
— require claimants to pay a fee for oral
hearings.
While these proposals are welcome, they
are counterbalanced by a disappointing
proposed enhancement of the Protective
Costs Order (PCO) regime. A PCO is an
option open to the courts which limits a
claimant's exposure to the defendant's costs.
An application for a PCO can be made at
the outset of judicial review proceedings
and, until recently, such orders would often
be awarded provided the applicant could
demonstrate a public interest justification
for the point at issue being considered by
the court. The PCO regime has inevitably
therefore encouraged third parties to
pursue challenges in the knowledge that
their exposure to substantial costs would
be limited, leading to an increase in the
number of challenges lodged.
Case law (R (on the application of Garner)
v Elmbridge Borough Council [2010] EWCA
1006) has developed a presumption that
a PCO will be granted where an
"environmental case" is brought in the public
interest. Environmental cases extend
to and include challenges relating to
environmental impact assessments – one
of the most fertile areas for challenge in
recent years in planning judicial reviews.
Garner has also encouraged third parties
to pursue judicial review challenges.
Side by side with this development, the
Government in 2012 published proposals
to implement the UK’s obligations under
the Aarhus Convention and Directive
2003/354/EC (the Public Participation
Directive). The Convention requires
member states to guarantee rights of
access to information, public participation
in decision-making and access to justice
in environmental matters. In particular, it
requires member states to ensure that the
public have access to a procedure to
challenge decisions subject to public
participation procedures and contraventions
of national law relating to the environment,
and specifies that those court procedures
should, among other things, not be
prohibitively expensive.
The Government's proposal, Cost
Protection for Litigants in Environmental
Judicial Review Claims, which is due to come
into force in 2013, limits a claimant's costs
exposure to £5,000 for individuals and
£10,000 for organisations. A combination
of Garner and this proposal may undermine
any objective to minimise the scope for weak
and frivolous judicial review challenges.
One can only hope that the courts will, if
and when the Government's judicial review
reform proposals are introduced, rigidly
enforce the six-week time limit and
vigorously test the robustness of claimants'
assertions. In the meantime, the current
unsatisfactory position will continue.
Wesley Fongenie
Consultant, Planning
Telephone: +44 20 7406 6119
Daniel Levy
Partner, Head of Property Litigation
Telephone: +44 20 7440 7483
7
Development can leave a lasting legacy
on neighbouring properties. One area
seeing a re-emergence in the disputes
arena is that of rights of light, with several
high-profile judgments in recent years.
A right of light is an easement (a legal
property right) that entitles windows in
buildings, both commercial and residential,
to continue to receive light across neighbouring property. These rights can be created
deliberately by deed but usually arise by
prescription (long usage), protecting light
that has been constant for 20 years.
The position of those who want to develop
so as to obstruct a neighbour’s right of light
has weakened significantly in recent years.
Courts are more willing to injunct development and even order demolition of new
build, and if damages are awarded to the
neighbour, the amount in many cases will
include a slice of the developer’s profit
and not just the loss in value to the
neighbouring property.
To stop commercial developers being held
to ransom over otherwise desirable
development, the City of London (in relation
to The Walkie Talkie) and Westminster
councils have recently used section 237
of the Town and Country Planning Act
1990, which enables a local authority to
acquire land and override a third party’s
rights of light. Compensation for loss
becomes payable but the threat of an
injunction or profit-based damages is
removed.
In February 2013, the Law Commission
published a consultation paper on rights
of light, aiming to bring more clarity,
certainty and transparency to the law
and make disputes easier to resolve. The
commission’s stance is in favour of
development: “We want to ensure that
rights to light do not act as an unnecessary
constraint on development. The availability
of modern, good quality residential, office
and commercial space is important to the
success of increasingly dense, modern town
and city centres, and to the economy
more generally.”
The 132-page consultation contains four
proposals:
3. Abolishing the law that allows rights of
light to be acquired by prescription. This
would not affect rights of light already
acquired.
4. Giving the Lands Tribunal power to
extinguish rights of light that are obsolete or
have no practical benefit, with the payment
of compensation in appropriate cases. The
tribunal already has jurisdiction to extinguish
or vary obsolete restrictive covenants.
The proposals are heavily weighted in favour
of development and are already being
attacked in the popular press. It will be
interesting to see what line the Government
takes when the Law Commission reports
back following the current consultation,
which is open until 16 May.
1. A new statutory procedure which
allows potential developers to notify
nearby landowners about their proposed
development and imposes a time limit
in which they can seek an injunction; a
landowner who misses the deadline can
then only sue for damages and cannot
stop the development taking place.
2. A new statutory test to determine
when courts may order a developer to
pay damages instead of ordering them to
demolish or halt development.
Philip Freedman CBE, QC (Hon)
Partner, Real Estate
Telephone: +44 20 7440 7018
Adding a basement to your existing
residential or commercial property may
allow you to maximise the square footage
and value of your property. However, it
needs to be approached properly.
The trend for adding basements to prime
residential property continues, but for
commercial premises the economics
(cost versus value) may limit the viability
of adding a basement to an existing
property. However, protected sight lines
for historic buildings and potential rights
of light and air issues may make deeper
basements more attractive to developers.
In addition, the idea that basement space
in commercial buildings is only good for car
parking or plant and machinery is untrue.
Fitness centres such as Gymbox and Fitness
First have carved out a niche in basement
locations, as have restaurants, bars and clubs.
Subterranean living, working and leisure
is a viable option for the right residential
and commercial properties.
Seven rules for successful conversions
1. Engage with the planning authority early
in the process. Whether you are building
a new basement or increasing the size
of an existing one, you are likely to need
planning permission. Do not assume all
planners are against basements. Kensington
8
and Chelsea council recently approved an
extensive nine-metre deep basement to
a residential property in South Kensington,
having been satisfied that the associated
above ground changes were visually
discreet and preserved the character and
appearance of the conservation area.
2. Take advice from a party wall surveyor.
Party wall notices and awards can be
complicated if special foundations such as
underpinning are needed. You may have
to pay money into an escrow account for
the duration of the works for any damage
you may cause to neighbouring properties.
You may also need to negotiate other
agreements, such as access and support
licences, with your neighbours. These can
be difficult to obtain and may involve you
paying them a licence fee.
3. Agree condition surveys for the surrounding
buildings. You don’t want to be blamed
for damage that you did not cause.
4. Design in accordance with the Building
Regulations and current codes of practice and
guidance. Basements for Dwellings, the guidance
document for local authorities assessing
residential schemes for compliance with the
Building Regulations, was withdrawn in
October 2010 and is being updated by the
Department for Communities and Local
Government and the Basement Information
Centre, so make sure your designers read it.
5. Use experienced and competent builders.
Take references and ask about their
previous projects before you engage them.
6. Keep your neighbours informed. Numerous
articles have been written on high-profile
residential property owners disturbing their
neighbours with basement works. Keep
reasonable working hours and warn your
neighbours in advance of noisy works,
possibly even agreeing specific times. Tell
your neighbours about the measures that
you and your contractor are taking to
protect them, such as hoardings and dust
and noise control. Acting reasonably is the
key to defending any future nuisance claims.
7. Make sure you and/or your contractor
have in place appropriate public liability
and “non-negligence” insurance in case
you damage your neighbour’s property.
Simon Hunter
Partner, Head of Construction
Telephone: +44 20 7440 7074
9
History
in the
re-making
It’s clear from conversations with
Manhattan Loft Corporation, Argent
and Chelsfield, key developers
involved in the transformational
activity of breathing new life into
redundant, heritage buildings, that
this activity is not for the fainthearted. It requires determination,
vision and perseverance, as well as
flexible funding.
St Pancras Chambers first came to the
attention of Manhattan Loft Corporation
founder Harry Handelsman in 1996. Sir
George Gilbert Scott's magnificent grand
hotel was a derelict office building,
neglected and unloved. It had, like its
New York counterpart Grand Central
Station, been narrowly saved from the
wrecking ball, in this case by Sir John
Betjemen who declared it “too beautiful
and too romantic to survive”. Handelsman's
Manhattan Loft Corporation, with a
reputation for looking at development
opportunities “at the periphery of the
obvious” and “out of the mainstream”,
was undeterred by the challenge.
The painstaking restoration of St Pancras
Renaissance Hotel has been described as
“a labour of love” but, says Handelsman,
“it had to translate into a commercial
success as if it was just based on love we
would be bankrupt pretty quickly!” After
16 years, it is an understatement to say
it took longer than anticipated. However
Handelsman, who has won accolades for
recreating Gilbert Scott’s Victorian vision as
a hotel for the 21st century, is “completely
delighted by the result”.
The Grade 1 listing meant “immense
interaction between Manhattan Loft
Corporation, English Heritage and the
building”. The chance find of original
wallpaper hidden behind old mirrors
proved costly as English Heritage wanted
the rooms repapered in the original style,
at £60,000 per room. Handelsman admits
he may have been naïve, as structurally
the property was more challenging than
anticipated, but he is convinced that the
right thing to do commercially was to put
in more money to restore the building’s
quality and character. He believes that
the result captures “the grandeur of the
time”. Although he does not like to mimic
things, Handelsman regards St Pancras as an
exception because “the modern amenities
work so well within the umbrella of the old”.
He reflects that “grand hotels are
semi-public buildings so their architecture
is important. People can come and relax.
It’s egalitarian. The hotel captures the spirit
of a train station but is not so transient.
It’s a visual museum and true magnet for
all to come and enjoy the space.”
What has he learnt from this project?
Unhesitatingly, he declares that “carrying
out a 16-year development of that
magnitude is a once in a lifetime experience”.
The King's Cross story
Just along the road, I spoke to Argent
partner Rob Evans about the King's Cross
development. Partly a conservation area
and with some 20 historic buildings and
structures from the Victorian age of
railways, Argent has worked closely with
English Heritage to ensure that these
are restored and brought back into use.
Boris Johnson describes The Granary
Building as “a stunning development that
embraces the past while looking to the
future”.
Argent was selected as development
partner in 2000. Evans admits that it was
a long haul to the grant of outline planning
consent in 2006, which he ascribes partly
to the sheer weight of aspirations and
expectations built up since the site’s
development was first planned in the 1970s.
Argent firmly believes that “heritage adds
value”, which cannot easily be replicated
with new development. In an earlier
scheme, The Great Northern Hotel
would have been bulldozed to make way
for an underground station. Now it has
been remodelled to be reincarnated as a
93-bedroom boutique hotel. Its idiosyncratic
curved frontage is one of the “delights
and surprises of the City”. Evans says
they may have considered losing it “but
only in the interests of public realm”.
Evans reflects on the changed approach
to heritage buildings. “It used to be about
rescuing buildings, putting them on a
The St Pancras
Renaissance
Hotel façade
Manhattan Loft
Corporation founder
Harry Handelsman
The Grand Staircase at St Pancras Renaissance Hotel
11
The Granary Building at Argent's Kings Cross redevelopment (© John Sturrock)
pedestal and revering them, treating them
like a museum”. Now we are starting to
retain and reuse rather than regard them
as a problem so that “heritage buildings can
have a long term future”. “You need to
treat them as the tough industrial structures
they are and not be too reverential.” Evans
cites The Granary Building, now home to
Central St Martins, as an example which he
sees as “fantastic for what’s going on inside”.
into its new offices in a refurbished train
shed, Evans wishes they had more old
buildings. He believes that the old context
coupled with the new is attractive to the
TMT sector. Argent has always believed
that you can be different and Evans points
to the recent Google letting as proof that
Argent’s approach has indeed added value.
Argent had great support from English
Heritage who grasped quickly its intention
to “knit King's Cross back into the City”.
The outline planning consent gave Argent
and its partners important flexibility.
During the consultation process, it became
clear that people didn’t want an “antiseptic,
corporate culture” but wanted to keep
the “grittiness and authenticity” which
set the tone of the place, with its street
food and art college students.
In Kensington, another iconic but very
different building to escape demolition
is The Commonwealth Institute, built in
1960-1962. Following refurbishment by
Chelsfield, it will be the new home of
The Design Museum at the end of 2014.
This Grade II* listed building has been
described as “Kensington’s architecturally
extraordinary but long unoccupied white
elephant”. With both English Heritage
and Kensington and Chelsea keen to see
a public building on the site, Chelsfield
was tasked with finding an appropriate
occupier. Director Mark Wenlock credits
agent David Rosen of Pilcher Hershman
Although cost planning went out of
window when they found asbestos in one
of the historic buildings, as Argent moves
The Commonwealth Institute
along with Sir Terence Conran with having
the vision to see that this would be the
ideal site for The Design Museum.
While clearly an important modernist building,
Chelsfield’s detailed research unearthed
some myths. For instance, only part of
the roof was constructed as a hyperbolic
paraboloid structure. Also the poor 1960s
specification meant that the building required
extensive renovation. Chelsfield employed
the original architect and engineer to “fill
in the history gaps”. It was able to help
persuade the authorities that without
massive and costly intervention, the building
had no viable use and that residential
development was needed to fund the
expensive restoration. The building turned
out to be in worse condition than anticipated
which increased the renovation costs.
Despite the problems and setbacks that
affected all these projects, the additional
time and costs were judged well worth the
end result of bringing historic buildings
back into viable use.
The new Design Museum at Chelsfield’s Hollandgreen
Susan Freeman
Telephone: +44 20 7440 7017
12
It looks like we are again catching up with
our friends across the Atlantic. As is the
norm in the US, the UK market is seeing a
more varied approach to debt provision.
The US has long been used to a competitive
market of non-bank lending, with half of
commercial lending coming from non-banking
sources, compared to a dominance of 90%
of the market that the five major clearing
banks hold in the UK. This is quickly changing
in the UK as a legacy of the recession-driven
cut-back of bank lending, greater capital
controls imposed on banks (as per Basle III),
and government encouragement of debt
provision through sources other than banks.
That said, UK lending – taking into account
that originating from “non-banks” – is
still down. According to the De Montfort
report, new lending for the first half of
2012 was down 12% on the previous year.
Whether the rise of non-banks will turn
the tide is difficult to predict. The demand
is there; the supply will largely be
determined by the success with which these
funds capitalise themselves. Borrowers
should pay attention to the outcomes of
the IPOs of the longer debt funds.
Further, it is not a ‘like for like’ substitution.
Non-bank lenders come in various shapes
and sizes, with their approach being driven
by how their capital is raised. They range
from listed debt funds such as Starwood
Capital and ICG-Longbow to high net
worth individuals. And they will each have
their own debt appetites, sensitivities and
internal rate of return requirements. This
poses interesting issues for borrowers
on entry, execution and on-going deal
management.
First, the borrower must work out which
non-bank lender is going to be right for the
deal with the appetite to fund it. Pockets
of activity can now be seen where debt
investors are matching investment targets
to transactions. For instance, the insurance
industry is happily banking low-risk, well-let
prime commercial, while more bespoke
private equity funds are looking towards
quick and healthy returns offered by high-end
residential. Other types of transactions,
however, are not well serviced by non-banks.
In terms of deal execution, the process is
different from a bank-led origination. The
dynamics of the relationship between, say,
a private equity fund and a developer will
be bespoke and probably novel on both
sides. The debt offered by new lenders is
not (yet) a commoditised product. From
our experience, the lawyers take on a
more involved role in managing the process
and ensure that the documentation fits
the particular dynamic.
In terms of the long-term relationship, the
good thing about banks is that they are
generally predictable. That is not to say
non-banks are unpredictable; with limited
exceptions they are creditable institutions
with knowledgeable executives and a firm
intention to remain in the market. However,
there may be concerns that the relevant
lender has little trading history and could
pull out of the market. It is vital to get
finance documents correct at the execution
stage to mitigate these concerns.
The advent of non-bank lending is good
for the industry. It is an exciting, rapidly
developing market but there are associated
growing pains that need to be approached
intelligently to ensure each transaction
runs smoothly.
Nick Strutt
Partner, Head of Real Estate Finance
Telephone:+44 207 440 7165
13
HU
RR
YW
HIL
E
Retail
The legacy of
the downturn
The downturn and increasing use of
technology have changed the way that
retailers operate and the public make
purchases. Much of the current press
coverage has focused on the negative –
high streets run-down or empty and a
string of high-profile retail failures, most
recently Blockbuster, Jessops and HMV.
Ethel Austin has been through no fewer
than five administrations in five years.
But it is not all doom and gloom. One
person’s retail failure is another’s
opportunity to realign the business, strip
away the dead wood and become more
profitable. That, in effect, was the stated
aim behind the Government’s appointment
of Mary Portas as a ‘high street tsar’.
Real property, with its associated costs in
the form of rents on shops and wages to
employees, is one of the most expensive
assets that retailers have. The downturn
and increasing use of the internet for
retail has forced retailers to rethink the
way in which they use those assets.
14
The learning curve
Starting with the negative,
the multiplicity of retail failures has
introduced the property world to the
more cynical side of insolvency processes.
In the first half of the downturn, there was
a trend towards using company voluntary
arrangements (CVAs) – that is, a statutory
contract between the company and its
creditors to reorganise the debts of the
company – to wipe out guarantees given
to landlords by still-solvent parent
companies. Some high-profile cases, in
particular that of Miss Sixty, in which
the insolvency practitioner was roundly
rebuked by the court, seem to have
discredited that approach.
Landlords whose tenants propose a CVA
have various options:
– If there are arrears of rent or breach of
other lease covenants, they may be able
to forfeit the lease before the CVA is
voted through.
– They can join with other creditors to
try to influence the result of the CVA,
for example as they did by turning up in
force with their advisors to the creditors'
meeting for the Stylo Barrett CVA.
– If the CVA is voted through against
their wishes, they can consider a legal
challenge on the grounds of unfair prejudice or material irregularity.
Tenants should do what they can to
keep landlords onside and assuage their
concerns.
In the last
couple of years,
two property cases
– Goldacre and Luminar in
2011 and 2012 respectively
– have to some extent clarified
the “rules of the game” where a
company enters administration. In short,
if the administrator is using the premises
for the benefit of the administration in
some way (usually but not always by
trading from it), the administrator must
pay in full any sums including rent as they
fall due under the lease, but only if the date
on which they are due falls during the
period of administration.
The commencement date of the
administration is therefore paramount.
Administrators have become wise to this
and companies now commonly lodge a
notice of intention to appoint administrators
before the quarter day, when the rent is
usually due. This is sufficient to put in place
a moratorium, preventing the landlord
from levying distress or forfeiting. The
administrator is then not actually appointed
until just after the quarter day, meaning
that quarter's rent is not payable as an
expense of the administration, effectively
giving the administrator a quarter's trading
rent free.
At present this is perfectly lawful, but it
is viewed by many landlords as an abuse
of the process and is ripe for challenge in
the courts. Landlords should:
— keep themselves properly informed
about the financial well-being of their
tenants and take prompt action if they
think there is a possibility of the tenant
entering into administration.
— consider requests for monthly rents,
as that would cut down the rent-free
period that the administrators have in
the premises and improve the landlord's
bargaining power.
— if the tenant does enter into administration, ask whether the administrator
is using the premises for the purposes of
the administration or, if not, whether it
will consent to forfeiture.
Insolvency practitioners will,
of course, say that these
are effective and
permitted
uses of the
insolvency
SH
O
legislation to create efficiencies and save
jobs at retailers that would otherwise have
failed. Certainly, where the accountants
were prepared to talk to landlords and
consider their concerns, CVAs were
successfully used to revive failing businesses.
Examples include Focus DIY, JJB Sports
and, most recently, Alexon. Likewise,
administration has been used to keep
retailers afloat. At the time of writing, the
HMV brand is likely to continue trading
in some form.
The future of retail
HMV is a good example of a trend that
has changed retail. Many people now
prefer to shop online as a result of the
increasing pressure to give value for money
and the now widespread use of technology
in the home. New business models have
emerged to deal with this. Concepts
such as “click and collect”, “dark stores”
(retail outlets not physically open to the
public but exclusively servicing orders
made online), and “pop-up shops” are
on the rise. Coffee shops and small-scale
grocery outlets are also thriving.
Retailers are starting to see the value of
short-term leases (if capital outlay can be
minimised). Shopping centres and high
streets are talking more about becoming
destinations, aiming to actively
entice consumers away from
their computers for a day
out shopping as a
lifestyle choice.
PS
L
The report of the demise of the high street
has (to paraphrase Mark Twain) been greatly
exaggerated. Clearly, e-commerce is here
to stay, but equally clearly consumers do
not wish to sit at home on their computer
every day.
The positive legacy of the downturn is that
retailers have been forced to think harder
about how they put their product before
consumers. It is no longer enough to just
be. However, that has left a retail scene in
the UK where the range of consumer choices
and experiences, online and offline, has
never been greater. It may well be that
the downturn will come to be seen as
the spur to creativity that retail needed.
Emma Macintyre
Legal Director
Telephone: +44 20 7440 7215
Richard Webber
SolicitorWebber
Richard
Email: of
[email protected]
Head
Planning and Environment
Telephone:
+44 20 7440 7213
Telephone: +44 207 440 4764
AS
T!
13
Reorganising
your real estate
Have you ever tried to move a property
asset around your group but been told that
it has insufficient profits to allow this? We
have acted on a number of reorganisations
where this has been an issue. The good
news is that there is often a solution.
A revaluation reserve or share capital
reserve sitting on your accounts may
be turned into the required
profits with a few extra steps.
pays, the law seeks to protect the
transferring company's capital by requiring
a certain level of profits.
a relatively straightforward capital reduction
procedure with the reduced amount being
credited to distributable profits.
Until relatively recently, the amount of profits
required was unclear. However, it has now
been clarified that a transfer at book value
requires only £1 of profit. Indeed, all is not
A revaluation reserve cannot be reduced
in this way but there is a possible way
around. The revaluation reserve can be
capitalised by using it to pay for the bonus
issue of shares. The capital
reduction procedure can then
be applied to the shares created
by this bonus issue, with the
amount reduced being credited
to distributable profits.
There are many reasons why
real estate groups reorganise.
You may be planning a sale of
or an investment into one of
your subsidiaries, but want to
retain prime real estate by first
moving it to another group
entity. Insufficient profits (known
as the "dividend block") may
be a hurdle to your goals.
Where an asset is moved
intra-group, the common
wish is to transfer at book
value or less. If the transfer
is made at less than market
value, your advisers will need
to check that there is no
"distribution". The concept is
similar to paying a cash dividend.
If a sister company or parent receives an
asset for nothing or worth more than it
Ross Bryson
Partner, Corporate
Telephone: +44 20 7440 7190
16
The capital reduction procedure
is a straightforward process.
It requires a shareholder
resolution and that each
director makes a statement as
to the company's ability to pay
its debts for the following year
(having properly considered
its creditor position).
lost if the company does not even have the
required £1. Through legal and accounting
alchemy, it is possible to turn share capital
and certain other reserves into profits.
Even an accumulated loss on your balance
sheet can be reversed into an accumulated
profit if the amount of your share capital
and reserve accounts is large enough. As
an example, if a company has a "share
premium account" or a "capital redemption
reserve", these can be reduced by following
Lack of distributable profits can
be a real headache when trying
to move assets or restructure,
for example before selling a
company. With guidance from
trusted advisers, companies can
avail themselves of the capital reduction
techniques to resolve this roadblock.
Kate Higgins
Legal Director, Corporate
Telephone: +44 20 7440 7433
Mishcon in
the press
London fights to
defend office space
By Ed Hammond and Jim Pickard “Th
ere
is already a massive disparity between
demand for office space and housing
,
so you are likely to see a lot of peop
le
take advantage,” says Daniel Lev y, a
real
estate lawyer at Mishcon de Reya.
Stamp duty measures
hit prime market
By Lucy Warwick-Ching
Participants in the roundtable, which included Mishcon
de Reya, PwC, the British Property Federation, a high-end
buying agent, and Hamptons, variously described the package
of measures as “conflicting”, “confused” and “muddled”.
Enfranchisement ruling
offers relief to landed estates
estate
Philip Freedman, a partner in Mishcon de Reya’s real
department, said: “This decision will help to keep the large
landed estates whole. Landlords will not be forced to sell off
freeholds at a price determined by the Act.”
The Big Think
The Lawyer Awards:
Mishcon de Reya, Brick
Court scoop top prizes
Mishcon and Nabarro
prove good fit for
£220m Savile Row sale
Mishcon taps new
property client
for £109m
Almacantar deal
By Lucy Scott
Property Week, Mishcon de Reya and Central, together
with sponsors Derwent London, Londonewcastle,
James Andrew Residential and Capita Symonds, bring
together thought leaders to tackle the future of London.
CC, Mishcons and BBC
up for prizes at 2012
British Legal Awards
DWF, Kennedys and Mishcons
trump top 50 rivals with
fastest five-year growth
17
Julie Bond
Associate, Residential Property
Julie was promoted to the level of Associate
in 2012. She specialises in all aspects of
residential property including lease
extensions and landlord and tenant work,
and advises individuals, companies and
investment funds, both on and offshore.
Helena Liebster
Associate, Real Estate
Helena, who also became an Associate last
year, specialises in commercial property
and deals with a variety of matters including
landlord and tenant work (acting for both
institutional landlords and occupational
tenants), development work, commercial
sales and regeneration projects. She also
has experience in real estate support for
corporate and finance-led transactions.
Louise Tainton
Louise, who was also promoted to Associate,
has wide transactional experience in all
aspects of commercial real estate, including
property investment sales and acquisitions,
development work, landlord and tenant and
corporate real estate. Her clients include
institutional investors and private property
companies such as Capital & Counties
Properties PLC, Delancey, Lumina and
London Business School.
18
Our Real Estate department has been
boosted by a number of new joiners.
Nick Strutt
Partner, Head of Real Estate Finance
Nick, a real estate finance specialist, was
also made up as a Partner. With more
than eight years’ experience in advising
financial institutions, funds, developers
and investors on all aspects of real estate
finance transactions, Nick has extensive
expertise in bilateral, syndicated, club,
structured, mezzanine and staple financings.
He primarily advises on restructurings,
refinancings, enforcements, intercreditor
issues and general work-outs for clients
in the banking sector.
Five of our Real Estate lawyers
were promoted in 2012.
Simon Hart
Simon was promoted to the partnership
in 2012. A commercial property specialist,
Simon has particular expertise in investment
work as well as experience in landlord and
tenant and development matters. Clients
that have drawn on this expertise include
Helical Bar plc, UBS Global Asset
Management (UK) Limited and residential
developer Londonewcastle.
Nick Harris
“My career highlight to date is being responsible
for the property contracts for the Olympic Park
and Village while working in-house at LOCOG;
a role which also meant I could experience
‘Super Saturday’ and the roar of the velodrome
first-hand.” Nick specialises in commercial
real estate with a particular emphasis on
development work and high value investment
sales and acquisitions. Prior to working for
the London Organising Committee of the
Olympic Games and Paralympic Games
(LOCOG), he was a solicitor at Macfarlanes.
Natalie Holland
Solicitor, Property Litigation
“I joined Mishcon due to its reputation in
litigation. I also wanted to do more professional
negligence work and now spend around 70%
of my time in this area.” Natalie has worked
on a diverse range of commercial disputes
at High Court level. She is currently acting
in numerous cases involving negligent advice
given by solicitors, financial advisers, architects
and surveyors. Natalie was previously
at Finers Stephens Innocent LLP (now
HowardKennedyFsi).
Edward Hughes-Power
Solicitor, Real Estate
“My aim at Mishcon? To help our clients
complete some of the UK’s most high-profile
and interesting property transactions. And
to become the top goal scorer in the London
Football Legal League...” Ed, who joined
from Slaughter and May, has expertise in
high value investment sales and acquisitions,
large development projects and major
lettings (acting for both landlords and
tenants). At his previous firm, he worked
on the development of the Athletes’ Village
for the 2012 Olympic Games.
Dilukshi Leanage
“What distinguishes Mishcon from other
law firms is the positive culture of the Firm
– everyone really is happy to work here!”
Dilukshi joined Mishcon from Nabarro LLP
where she specialised in commercial
property. She has a range of experience
including acquisitions and sales of investment
properties, due diligence on high value
transactions and asset management work
for landlords of large portfolios including
retail, industrial and offices.
Mark Reading
“The Mishcon brand excited me; the more I
heard about it, the more I wanted to be part
of it. There is a genuine tangible buzz about
the place.” Mark specialises in contentious
property with an emphasis on commercial
landlord and tenant disputes. He advises on
business lease renewals, dilapidations, rent
arrears recovery and property related
insolvency issues, and has a keen interest
in rights of light matters. He joined from
Nabarro LLP.
Kathryn Simms
“There is a clear sense of identity at Mishcon
and this is reflected in each client relationship
and our approach to each transaction,
whether big or small.” Kathryn, who joined
from Freshfields Bruckhaus Deringer LLP,
is experienced in a range of commercial
property matters, including large-scale
purchases and sales, development work
and asset management experience for
landlords of office, industrial and retail
premises.
Olivia Sinclair
“I joined Mishcon because I wanted more
experience working for a wide range of clients
with challenging and interesting work. Mishcon’s
clients and reputation made it an easy
decision.” Olivia, who joined from Herbert
Smith LLP, frequently deals with development
matters and acquisitions and disposals of
investment property. She also acts for
commercial landlords in asset management
matters, and has provided real estate support
for finance and corporate transactions.
Richard Webber
“The culture of excellent service really is
ingrained here. The extra mile is not seen as
an extra.” Before joining Mishcon, Richard
was a Senior Associate at Hogan Lovells.
He has a broad practice in contentious
real estate matters with a particular focus
on commercial and residential landlord
and tenant disputes including dilapidations,
service charge disputes, insolvency and
debt recovery, alienation disputes,
enfranchisement, illegal occupation and
party walls.
Andrew Wells
Solicitor, Planning
"Career highlight? Successfully defending
a judicial review challenge to the grant of
planning permission for subterranean
development while in-house at Kensington
and Chelsea." Andrew has experience
in a range of planning matters including
planning applications, section 106
agreements, listed buildings enforcement
and judicial review. He has a unique insight
into planning processes through local
authority in-house roles at Kensington
and Chelsea and at Merton.
19
Future Cities ANALYSIS
ANALYSIS
Future Cities
of an overseas
London base in early 2012, as part
a cursory
its “community”
city’s economic growth warrant only
expansion. For him, proximity to
— unsurprising
mention. the topic appears passé
and like-minded operators was key.
fellow
to grow our
given the guest list. Around the table
“it had the type of people we wanted
and social
it, too,” says
creatives like Edge — a tech entrepreneur
business with, and a social life around
represent what
media marketer from California —
Crucially, being close to their “communities”
Randall.
that
industrialists
and that
Brown terms the “new breed” of
gives them the ability to build relationships
place to these
are shaping the city’s future.
helps them to innovate. A desirable
sporting
US-born Marc Blinder from Adobe,
being able to grab
entrepreneurs can be as simple as
and
dyed pink hair and in casual clothing,
a coffee at a nearby cafe that has
Airbnb’s David Randall shine a
“always been there” or streets
light on the challenges ahead
that have an “ad hoc, authentic
for landlords, planners and
feel” and are devoid of
government. they recognise
homogenised global brands.
London’s pre-eminence as a
Although simple enough, these
world city, but their needs as
environments are hard to plan.
businessmen require a working
As Jason Prior, chief executive
Marc Blinder, Adobe of planning, design and
environment that is so much
remember
more than the office they
development at Aecom, says: “i don’t
conditioning is the
arts cluster and
occupy — whether or not it has air
anyone who set about to create an
mistake to try and
least of their concerns.
pulled it off,” adding, “it is a huge
in the software
“there is a major shift under way
prescribe and define fringe activities.”
cer is spending
industry, where the marketing offi
financial
chief
the
than
software
on
more money
Techs appeal
to be near to
as the
officer. therefore we need and want
there are nods of acknowledgement,
so
places,
cool
near
be
to
want
the government’s
our clients, and we
conversation quickly moves on to
in the evening,”
and Old Street’s
that we can take them out for drinks
recent efforts to promote tech City
operations,
to encourage
says Blinder, director of European
Silicon Roundabout through schemes
at Adobe, which
business development and strategy
young people to start their own businesses.
August 2011.
if you a see a
moved into an office in Fitzrovia in
“We post-rationalise movements.
for
Randall, head of business and development
you’ve probably missed it,” says Prior.
bandwagon,
accommodation
is that planning
Uk and ireland at online residential
the consensus around the table
— now home to
frameworks that
marketplace Airbnb says tech City
and masterplanning work best as
the “obvious”
»
rather
more than 600 businesses — was
facilitate individualism and change,
to its permanent
place to be when his firm moved
1
BӏgThӏnk
We need to be
near to our clients,
and we want to be
near cool places
The
Mishcon de Reya and Central
brought together London thought
leaders for a series of high-level
discussions, looking at the shift
towards east London, new ways
of providing housing for Londoners
and the value of good public realm.
W
ago,
hen i moved to Shoreditch 30 years
there was nobody there. Back then,
Shoreditch was perfect for creative
spaces in old and
people like me because it had big
cheap, it was
beautiful buildings that were really
is what it is
edgy, and risky. that’s why Shoreditch
way, and we
now. no one planned for it to be that
didn’t all decide to move there together.”
perfect place
London’s infamous East End is the
the city, and not
to start a debate on the future of
as a thriving
just because of its rising fortunes
the observations
artistic district. More importantly,
director of
of Steve Edge, founder and creative
organic
brand business Edge Design, on Shoreditch’s
of replicating its
evolution proves that the challenge
straightforward.
success elsewhere in the city is not
a series of
the Big think on the Future of London,
Central and
three debates organised by consultancy
take on this task.
law firm Mishcon de Reya, aims to
make that work
“So how do we balance that, and
of
director
and
chair
asks
for the whole of London?”
remarks at
Central, Patricia Brown, in her opening
offices on the
the first, at Mishcon de Reya’s holborn
evening of 4 October.
debate, talk of
Over the course of the two-hour
can do for the
the banks and what financial services
big
think
Alex Jan, Arup
Group
Eric Van der Kleij, Canary Wharf
Richard McCarthy, Capita Symonds
Richard Upton, Cathedral Group
Jonathan Eastwood, CBRE
Patricia Brown, Central (4)
(6)
Christopher Wilton-Steer, Central
Ben Rogers, Centre for London
Tom McGlynn, David Kohn Architects
(4)
Richard Baldwin, Derwent London
Steve Edge, Edge Design (3, 5)
Authority
Mark Kleinman, Greater London
Michael Raibin, Hatton Real Estate
David Barnett, Londonewcastle
Robert Soning, Londonewcastle
Economics (6)
Tony Travers, London School of
(5)
Susan Freeman, Mishcon de Reya
Giles Barrie, Property Week
and Chelsea (2)
Tot Brill, Royal Borough of Kensington
Angus Boag, Workspace (5)
propertyweek.com
12|10|12
41
10/10/2012 14:27:34
10/10/2012 14:27:10
41 p40 BIG THINK SUBBD.indd
41
40
Richard Baldwin (Derwent London), Marc Blinder
(Adobe), Tot Brill (Royal Borough of Kensington
and Chelsea)
Giles Barrie (Property Week), Clive Riding
(Native Land), Geoff Shearcroft (AOC)
propertyweek.com
The
Marc Blinder, Adobe (1)
Jason Prior, Aecom
David Randall, Airbnb (6)
Central and Derwent London
9 Property Week, Mishcon de Reya,
tackle the future of London.
bring together thought leaders to
by Jon Cardwell
Lucy Scott reports. Photographs
4012|10|12
41 p40 BIG THINK SUBBD.indd
THE big THiNKERS
3
thE
on the Future of London
2
Mark Kleinman (Greater London Authority),
David Kohn (David Kohn Architects), Amanda
Reynolds (AR Urbanism)
Susan Freeman (Mishcon de Reya), Angus Boag
(Workspace), Steve Edge (Edge Design)
Our joint party with CBRE took place in London on 28 February, marking the
start of the MIPIM trade show in Cannes. At the beach-themed event, guests
drank cocktails under the palm trees while the rest of London shivered.
David Barnett (Londonewcastle), Tom Bloxham
(Urban Splash)
am Emmett
Alan Spiers (Mishcon de Reya), Grah
d Pearl (Pearl &
(Longbow Real Estate Capital), Davi
ing)
Cout ts), Graham Stuar t (Brit annia Park
Beverley Churchill (Capital & Counties), Daniel Levy
and Stephen Hughes (Mishcon de Reya), Andrew
Hicks and Sarah-Jane Curtis (Capital & Counties)
Tr avers
UP Group), Tony
Alexander Jan (AR
lin Stanbridge
Co
),
LSE
p,
ou
Gr
(Greater London
Industry),
r of Commerce &
(London Chambe
thorit y)
Au
on
nd
Lo
reater
Mark Kleinman (G
Andrew Pratt (CBRE), Sir Terry Farrell (Terry
Farrell & Partners), Geoff Shearcroft (AOC)
Robert Davis (Westminster City Council), Elliot
Lipton (First Base)
Richard Blakeway (Deputy Mayor, Greater London
Authority), Paul Finch (Design Council CABE),
David Barnett (Londonewcastle)
Paul Fleming (Barclays Ban
k), Susan Freeman
(Mishcon de Reya), Cyril
Dennis (Capital & Provide
nt
Management)
Richard Fagg (Bouygues Development), Vincent
Stops (London Borough of Hackney), Rahul Ahuja
(Taskhub)
Tony Travers (Greater London Group, LSE),
Richard McCarthy (Capita Symonds), Pat Brown
(Central), Je Ahn (Studio Weave)
Richard Powell (Capital & Counties), Robert Evans
(Argent)
Foley (D2
Candice Sammeroff (Marsh), Deirdre
Private), Rebekah Tobias (CBRE )
20
The Pre-MIPIM
Beach Party
Beck y Wor thing ton (Lodestone Capi
tal), Steve
Timbs and James Hammond (CBRE ),
Robert Nadler
(Western Heritable)
See further photos of the event at our website, http://www.mishcon.com/news/events/archive/
Dean Poster (Mishcon de Reya), Step
hen Hubbard
(CBRE )
, Susan Freeman (Mishcon
Stephen Hubbard (CBRE)
(Heron Proper ty
son
de Reya), Gerald Ron
(CB RE)
ong
Str
e
Mik
),
ion
rat
Corpo
Steven Sharpe (Winston Group), Nick
Doffman
(Mishcon de Reya)
ties), Liz Peace
orrington Proper
Alan Leibowitz (D
rcus (Evans
Ma
Ian
),
ion
rat
Fede
(British Proper ty
Proper ty Group)
21
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It’s business. But it’s personal.
BUSINESS DISPUTE RESOLUTION REAL ESTATE MISHCON PRIVATE™
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