12-18 Theobalds Road, London WC1
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 a private 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.
The period property fits in perfectly with Boutique’s design ethos, with the owners 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 in our experience that a property owner and flexible workspace owner have negotiated simultaneously two separate agreements, a traditional lease and joint venture management agreement under the same ownership. We could well see the adoption of this type of approach by other commercial property owners and flexible office operators.”
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”.
GKRE are flexible workspace specialists, bringing their wealth of expertise to operators, landlords and agents who are looking to act, merge and acquire flexible office space. Headed by Douglas Green and Will Kinnear, GKRE have advised on over 1m sq. ft. in deals across 78 business centres.