Weekly Property Roundup
The value of European commercial real estate stock held by investors hit a new record of €3.4trn in 2014, according to DTZ.
DTZ's 41st annual Money into Property report found European invested stock grew 3% to surpass its previous 2007 peak in local currency terms.
Three of the top 10 growth markets globally in 2014 were European, including Turkey which saw the strongest stock value growth of 30% albeit from a relatively low base.
However, nine of the bottom 10 growth markets globally were also European. These markets saw their stock fall in value over the year, led by Russia’s dramatic fall of -19% after investment collapsed in the wake of economic sanctions and hostilities in Ukraine.
Designs for a new tower at the Pinnacle site
After years of little change to the site of the "Pinnacle" in the heart of the City an exhibition is to be held on site at 22 Bishopsgate ahead of the anticipated submission of a new planning application later this summer.
The new design follows the acquisition of the site earlier this year by a consortium of international investors led by AXA Real Estate, with Lipton Rogers acting as development partner.
Of the existing structure, the foundations and basements will be retained, helping minimise the disruption from the new proposal.
The proposed new building is 278m and 62 storeys tall – 10m lower than the previously approved consent. Overall the building will provide more than 1.4m sq ft of internal area with the floor plates shaped to reduce the mass of the building.
At the top of the building will be a public viewing gallery, which will have dedicated lifts, be free to the public and sit alongside a two-storey public restaurant and bar.
On completion, 22 Bishopsgate will accommodate more than 12,000 people.
The building promises to set new standards in promoting cycling, providing a parking facility on site for more than 1,500 bikes and more than 100 showers, along with hire, repairs, sales, safety training, spinning classes, laundry and drying facilities.
Businesses could face a 60% rate of tax by 2022 unless the government makes significant changes to the business rates system, two property trade bodies have warned.
In a joint response to the Treasury’s consultation on its business rates review, the British Council for Shopping Centres and the British Property Federation said the tax did not correspond with rental values, which have grown only 5% since 2000.
They also said the tax did not reflect what is happening in the wider economy, because the total business rates yield to the Exchequer was effectively set by reference to RPI inflation rather than overall business profitability. Instead, they recommended the introduction of a fixed business rates multiplier.