However, we believe this tool enables us to create complementary portfolios in key markets where we can maximise our operational advantages and maintain a defensible portfolio mix of tenants. 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. Flexible workspace provider Clockwise will manage the sites to "deliver a positive experience for occupants and attractive returns for its investors". Our readers will know that we have been covering the WeWork story for a number of years now and that we have been sceptical, at least to the extent that WeWorks business model was a poor bargain for landlords and likely obscured a reduction in net absorption in central London, Over the past 20 years, the UK property industry has seen a substantial rise in construction costs. A future in which every work environment and experience has a positive impact for people, places and the planet is a key part of the Clockwise vision. Castleforge said the site is currently at 67% occupancy, and . To find out more, read our cookie policy. Property investment firm Castleforge has acquired a large corporate office building in the centre of Manchester. Moving forward, for many companies flexibility is going to be key when it comes to office space leases. . We act as a trusted real estate investment partner to provide consistent returns while making a positive impact in the communities in which we invest. To find out more about Clockwise, visithttps://work-clockwise.co.uk/. Castleforge Partners' flexible workspace provider Clockwise will operate part of the building which is 67% occupied. This strategy was proposed by PMP to allow our Client to maximise their investment as early in the development as possible and allow them to market the offices to attract new users and members and showcase the best of the Clockwise offering at the earliest opportunity. And as he walked into the buildingthen named after the man who the last, A recurring theme when we here at Castleforge attempt to prognosticate over the central London office investment market is that it is very hard to predict the trajectory of cap rates. 3233596, VAT No. Would you like to read more? The firm has identified a clear investment opportunity in so-called secondary cities across the country and will look to expand its reach across the German commercial market with further purchases to be announced over the next 18 months. As a landlord we also possess more negotiating leverage given that we are reducing the number of vacant floors available in buildings where we deploy Clockwise, creating some scarcity of space for these larger tenants. It was founded in 2010 by Brandon Hollihan and Michael Kovacs. We invest in real estate located in and around select UK and European cities. U.K. Planning System Pitfalls and Opportunities. 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. Additional phases are due to be released. 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. We are thrilled to be contributing to these vibrant professional communities in every corner of the country. To receive priority invites and tips on how to communicate purpose please add your email. Sectors Learn more about the core sectors in which we work, each with a unique set of challenges that we account for in our approach. Since launching in 2017 weve made it our business to anticipate the needs of our members and their companies from day one. Sustainability is ingrained in our corporate vision and values, our culture, and everyday actions. However, we learned that many of these tenants immensely value the convenience of serviced office space that is already fitted out. Architects Cartwright Pickard will oversee the repurposing on behalf of Castleforge Partners, a UK-based private real estate investor. 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. We provide flexible workspaces with all the functionality, simplicity and service, community and connectivity you need to make it happen. 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 . 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). Castleforge Partners purchased the 197-bedroom hotel, located in the heart of the capital, from a private owner who had owned the hotel for 14 years. Prior to this, Lerche was Director of Asset Management at Cording Real Estate Group where he managed multiple office assets across Germany, and Partner at real estate debt fund Bright Capital. Through our flexible workspace provider Clockwise, we are very well positioned to offer this type of bespoke service to our members.. Help? We are committed to socially responsible business plans. Read about how we use cookies and how you can control them by reading our Privacy Policy. 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. Belfast, 100,000 sq. Castleforge, a vertically integrated, operationally focused private equity real estate manager targeting the UK and select European cities, today anno. This . Though weve grown, weve maintained that spirit which allows us to be thoughtful, rigorous and innovative in our approach. Higginson Strategy organises a number of exclusive events for clients and friends over the course of the calendar year. The heritage project will now serve as Castleforge's official headquarters, with additional space for its flexible workspace provider, Clockwise, making room for over 60 employees. While this would make this years cost for the project team higher, they would be able to quickly eliminate costs associated with the team should that project ever be cut. Lower commitment - from monthly rolling contracts, All inclusive one fee covers everything, Spaces designed for collaboration, opportunity to connect with members, Longer commitment - leases lasting an average of three years, Running costs and utilities paid separately, multiple suppliers and management required, Independent working with little-to-no shared space. 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 flying solo, starting up, growing steadily, scaling rapidly or spinning out something new. Within 15 months of opening in May 2017, we were over 90% occupied on the private office space and over three times subscribed on the club membership which provides hot desking in the common lounge area. Strive towards zero waste and use of sustainable materials, by embedding circular economy principles into the way we design, operate and maintain our spaces. Brandon Hollihan, Founding Partner of Castleforge Partners, said: Select secondary cities in the UK are continuing to grow as business hubs for young professionals and exciting start-ups. 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. 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. It has occurred to us that planning risk, Whilst there may be an affordability crisis in relation to the price of housing for sale, there is not the same crisis in relation to rental prices, particularly outside of London. Clockwise provides well-designed, contemporary private offices, shared workspaces and meeting rooms with a focus on attention to detail. It may therefore not come as a surprise that due to our experience with Clockwise, weve updated the way we think about how we lease smaller floorplates (below ~5,000 square feet). To find out more, read our cookie policy. 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. Rethinking Retirement Plans Is Phased Retirement The Future? "We have loved working with Clockwise and Castleforge Partners to breathe new life into this beautiful heritage building," comments Linda Morey-Burrows, . Flexible workspace provider Clockwise will manage the four new sites, located in secondary cities across England. Sustainability is ingrained in our corporate vision and values, our culture, and everyday actions. 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 invest in real estate located in and around select UK and European cities. 685 1784 92. We revitalise heritage buildings and local landscapes. ft. of serviced office space operated by Clockwise. 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. The first phase, completed in July 2020 created over 35k sq/ft of flexible . MESSAGE. Distressed Opportunities in European Real Estate, The Winning Bookends of the Office Market, Even Bits Need a Place to Work: the Rise of the Data Centre, Why Youd Want to Live Here: Spatial Equilibria from the Industrial Revolution to the Information Age, U.K. Planning System Pitfalls and Opportunities. 22/02/2023 5 min read What Is The Impact Of Hybrid Working On Space Optimization? Very hierarchical company structure and limited work life balance. M2 1DH, We use cookies to provide you with a great experience and to help our site run effectively. We use cookies to ensure that we give you the best experience on our website. Allwork.Space is committed to sharing news, updates and developments from flexible workspace owners, operators and suppliers across the globe. Clockwise offers a variety of flexible spaces to suit. London property investment firm Castleforge Partners has acquired the 97-bedroom hotel for an undisclosed sum. 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. It was founded in 2010 by Brandon Hollihan and Michael Kovacs. We recognise that we need to advance our sustainability maturity and put a series of key enablers in place. The turnkey solution is certainly beginning to pay dividends. The firm, which closed its most recent real estate fund at over 270 million, has gained a reputation for investing in office property in undersupplied markets across the UK.