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- Design-led flexible office provider The Boutique Workplace Company has acquired over 16,000 sq ft in London’s Midtown.
- Flexible workspace specialist GKRE negotiated the space on both a joint venture management agreement and a traditional lease.
- The deal is further evidence of the UK’s strengthening market; London alone saw 5.1 million sq ft leased as flexible workspace in the third quarter of 2018.
Flexible workspace specialist GKRE has acted on behalf of design-led flexible office provider The Boutique Workplace Company, in what is believed to be the first deal of this nature, to acquire over 16,000 sq.ft. of office space through both a joint venture management agreement and traditional lease.
GKRE advised The Boutique Workplace Company on its acquisition of over 11,500 sq.ft. of office space at the front of 12-18 Theobalds Road in London’s Midtown through a joint venture management agreement with the property owner.
The remaining 4,000 sq.ft. to the rear of the property was secured by GKRE for The Boutique Workplace Company under a separate traditional lease agreement with the same property owner. This office space directly connects to The Boutique Workplace’s property at 2 John Street, which GKRE also acquired on their behalf in 2014. James Proctor of Allsop LLP acted for the landlords in the letting of the rear offices.
The period property fits in perfectly with Boutique’s design ethos, with Fernglen planning to refurbish the front section in line with The Boutique Workplace Company’s specifications. Located near Chancery Lane, Holborn and Farringdon stations the building is situated in an area that is experiencing strong growth in flexible workspace offerings with major occupiers moving into the area demanding high-quality space as a service platforms.
The deal is further evidence of the strength of the UK’s flexible workspace market. London alone saw 5.1 million sq. ft. leased as flexible workspace in the third quarter of 2018, accounting for over 20% of commercial space leased to office providers in the capital.
Headed by Will Kinnear and Douglas Green, GKRE has 30 years’ experience in the flexible workspace sector advising on over 1m sq. ft. of deals since the company was established in 2013.
GKRE director Douglas Green commented: “We were delighted to work with The Boutique Workplace Company, as they were the perfect fit for this landlord’s period property. This was a particularly complicated deal and the first time a property owner and flexible workspace owner have come to a two separate agreements, a traditional lease and joint venture management agreement under the same ownership.
“This deal also demonstrates that matching the right flexible workspace operator with the right property owner is vital to determining the success of any joint venture management agreement and our knowledge of the sector has once again proved to be pivotal.”
The Boutique Workplace Company CEO, Daniel Wheble, commented: “These acquisitions are part of our group’s continued expansion in the flexible workspace market and takes the number of workplaces in the capital to 33, equalling a footprint of 260,000 square feet over 4,500 desks”.
