08|04|11 £4.95 propertyweek.com NEWS ANALYSIS MARKETS PROFESSIONAL HMV pleads for monthly rents p5 Labour view p29 Hants, Dorset + Wiltshire p41 Newmarket’s racing form p62 CBRE boss’s £11.5m pay p17 Heron Tower’s hour p30 CoreNet Global salary survey p48 Interview for senior staff p65 Berkeley’s banked (from left): Berkeley chairman Tony Pidgley, comedian Michael McIntyre and British Land chief executive Chris Grigg were the big stars at Tuesday night’s Property Awards. More than 1,300 people packed into London’s Grosvenor House for the event, organised by Property Week. Go to propertyweek.com/awards2011 PHOTOGRAPHS: OLIVER KNIGHT OLIVER PHOTOGRAPHS: CB Richard Ellis goes Countrywide 9 World’s biggest property adviser taps into UK residential market with huge estate agency partnership BY NICK JOHNSTONE It is unusual for a leading commercial-led agency and Knight Frank in areas such as local residential to join a high street chain, but the two worlds’ sales, land valuations and social housing advice. CB Richard Ellis has taken a huge leap into the interests are converging. Mixed-use development The plan is that CBRE clients, such as government lucrative residential property market through is driving the change. Commercial firms in particular departments, will now have access to local a tie-up with the UK’s largest estate agency. are attracted by fees that are typically higher in the knowledge and advice on the timing of land The world’s biggest property services firm has residential sector. Residential development fees can disposals or the local residential market. entered into a financially binding agreement with top 2% — at least double most commercial fees. It is the latest development in a rapid expansion Countrywide to offer joint regional residential sales. In a first mandate, David Wilson Homes has of CBRE’s residential team. Former Harrods Estates Countrywide owns 46 high street brands and instructed CBRE and Countrywide brand Chappell chief Mark Collins has been recruited to replace 1,300 branches. Its network includes Bairstow Eves, & Matthews to sell 40 semi-detached homes in Nick Jopling as head of residential, following Beresford Adams, John D Wood, Wilson Peacock, Bristol’s Barrow Guerney. Jopling’s departure for listed landlord Grainger. Gascoigne-Pees, Alan de Maid and Austin & Wyatt. The agreement is also a widening of CBRE’s Former Grainger managing director Andrew Staff were informed this week of the tie-up. joint venture with south-east agent Hamptons Pratt was then appointed as a consultant. Countrywide agents will pitch alongside CBRE International, which has existed since 2003. Collins; CBRE executive director for residential staff and co-brand on instructions. Countrywide bought Hamptons in June last year. Chris Lacey; Hamptons residential development A joint executive board, chaired on a rotational It then began negotiations with CBRE to expand director Godfrey Winterton; and Countrywide basis by CBRE UK managing director Martin the agreement from Hamptons’ 64 branches to divisional director Tom Harris will be on the Samworth and Countywide chief executive Countrywide’s 1,300. executive board. Grenville Turner, will lead the venture. CBRE has long sought to rival firms such as Savills Continued on p4 ›› NEWS CB Richard Ellis goes Countrywide « continued from front page by using their infrastructure. Samworth said “On new home sales where Countrywide’s local sales skills we are involved, we will use would allow the fi rm to off er the most relevant Countrywide clients a more local approach brand to drive sales. to residential marketing. “In addition, if we need WR Berkley buys prized Prupim asset He told Property Week: information on residential “This is an extension of our values in a certain part of the US insurance fi rm WR Berkley assets — for around £38m. bought 33 Grosvenor Gardens existing relationship with country, for example, we will has bought a City offi ce The properties total 98,000 in Victoria for £160m. Hamptons. Countrywide has get that with a phone call.” that could become its sq ft and could be refurbished WR Berkley is listed on a much greater reach than Turner said: “Some of the UK headquarters. or redeveloped. WR Berkley the New York Stock Exchange Hamptons on its own. big commercial practices have In its second UK property is understood to be and specialises in property “We’re dealing with a lot been London based and require purchase, the company has contemplating moving its UK casualty insurance. of land developments that expertise elsewhere in the UK. agreed to buy 52-54 Lime headquarters to the buildings Jones Lang LaSalle advised have residential elements, You have agents who are really Street and 27 Leadenhall from nearby 40 Lime Street. Prupim. DTZ advised WR and we need to improve our commercial agents working on Street (pictured) — one of The company made its UK Berkley. All parties declined residential sales capability mixed-use schemes.” seller Prupim’s longest-held debut in January, when it to comment. Asians fuel London resi fire 9 Frogmore and Galliard, Land Securities and Heron International all cash in on red-hot market BY NICK JOHNSTONE sell the rest at higher prices later on. International investors are attracted AND MIKE PHILLIPS Heron is also close to completing a by the fact that sterling has devalued deal to buy International House on by around 20% against its 10-year Developers working on prime London Chiltern Street from Deloitte, the average. Exchange gains have created residential schemes are receiving a administrator to the collapsed a window of opportunity to acquire windfall, as overseas buyers continue subsidiaries of Targetfollow. It will then London stock at a discount. to snap up off -plan sales in record time. be converted to residential. Tim Wright, partner at King Sturge A joint venture between Frogmore Prices being achieved at these selling Marconi House, said: “Central and Galliard has sold 80% of the fl ats schemes are between £1,500-£2,000/ London is very diff erent from the rest it is developing at Marconi House on sq ft. The off -plan sales underline the of the UK. Most of it is bought by the London’s Strand, just eight weeks hot performance of the City residential super-rich. The interest is being after it started marketing them. market, where high-end fl ats are being generated from the huge wealth Land Securities is understood sold to Asian investors months before coming out of China. With the Olympics to have sold 51 of the 59 units at its project completion. next year, now is a good chance to get Wellington House scheme in Victoria. Frogmore and Galliard sold 60 of the into the market.” The penthouses at both schemes have 65 units to overseas investors and 17 James Thomas, head of residential been held back for sale at later date. of the Marconi fl ats are worth more property at Jones Lang LaSalle, said: Sixty per cent of Heron than £2m. “There are several factors driving this International’s 284 fl ats at the Given wings: Heron has sold 60% Research from King Sturge shows performance. Currency is certainly an Heron next to the Barbican in the of the Heron in City (pictured) and 69% of overseas buyers in London issue; people see central London City have been sold. Heron has will hold the rest until prices rise are buying for investment and only residential as a status symbol; and halted the sale of units, so it can 7% for their own occupation. the tax conditions are favourable.” Seven days @ 70 Gracechurch deal on table Mailbox deal delivered Irish McInerney goes under The Irish owner of 70 Gracechurch Brockton Capital and Milligan have The UK arm of Irish housebuilder Street in the City is in talks to sell completed their purchase of the McInerney Homes was placed into the building, which houses Marks & Mailbox in Birmingham for £127.1m. administration this week. Spencer and Exel, for around £200m. 9 Details at propertyweek.com 9 More at propertyweek.com 9 Full story at propertyweek.com 4 08|04|11 propertyweek.com UK NEWS Industrial trio for £110m Henderson Global Investors is is at bidding process and Landlords dance selling a selection of industrial Henderson is confident that assets for £110m, and the it will attract a strong price.” sale of the largest is due to Henderson Indirect complete imminently. Property Fund Europe (HIP), to HMV’s tune The global fund manager is a €419m fund of funds, marketing the £50m Cyrus bought stakes in two UK portfolio, alongside the £35m property funds this week 9 Retailer’s request to pay rents monthly accepted by most Gillingham Business Park and for €23.5m. £27m of ex-Chancerygate The deal marks the fund’s business centres. first investment in the UK The Cyrus portfolio is property market. thought to contain three It has paid €11.7m for industrial assets in the south- units in the Standard Life east and has attracted a Core UK Shopping Centre shortlist of six bidders. Trust and €11.8m for units A spokeswoman for in the Unite UK Student Henderson said: “The portfolio Accommodation Fund. Heineken refreshes West End Heineken has taken 13,500 sq ft at HAMILTON MAXWELL PHOTOGRAPH: Great Portland Estates’ Elsley BY KAT BAKER to sort the business out and relevant financial covenant Court on 20-30 this will help to a degree. HMV tests from the year to 30 April Great Titchfield Struggling music and book are very difficult for us to refuse 2011 to the year to 2 July 2011. Street in London’s retailer HMV Group has entered because of the volume of sales HMV is expected to sell its West End.