Kinney green, acting on behalf of CIEE have acquired 46/47 Russell Square, London WC1, comprising 11,500 sq ft from The Bedford Estate. CIEE are a not for profit world leader improvising education and cultural exchange.
Despite being in competition from a number of parties, the rent payable will be just under £55 per sq ft after a market rent free period.
In October 2012, the Government postponed the next business rates revaluation from 2015 to 2017. This decision was based on the desire to keep rates bills increasing by the rate of inflation year on year and to avoid unexpected hikes in rate liability.
However, in reality this will delay the much needed rebasing of rateable values which are currently fixed to ‘pre-recession’ rental levels in April 2008. In the vast majority of cases ratepayers would have paid significantly less in the ‘delayed’ 2015 revaluation as based on rental levels in April 2013 which in most cases will be lower than rental levels in April 2008 when the market was at its peak.
The 2017 Revaluation will be based on rental values at the Antecedent Valuation Date (AVD) which the government has set at 1st April 2015. The implication of this is that as rents have started to recover following the recession, rental value at the April 2015 AVD will be much higher than what would have been the April 2013 AVD, thereby significantly increasing the 2017 rateable values of most properties.
This delay in Revaluation heightens the importance for businesses to make sure their current rateable values are correct as with the likely reintroduction of transitional relief this could have a longer effect on your liability where calculated with reference to the rates paid in the previous year and subject to annual inflationary increases.
New values are likely to be published this time next year but we would welcome providing an appraisal now if you have not yet considered this potentially growing liability. With the valuation date being so recent, if you are in discussion on a rent review or lease renewal or have received a form of return we would advise taking advice as the implications could be significant for the next seven years!
Business Rates Consultant & Research Analyst
Tel: 020 7643 1525
Email: e.osunbor@kinneygreen.com
Bindi Buttar has joined the property management department at Kinney Green as an Associate Partner. Bindi has over 28 years’ experience within the commercial property sector predominantly focusing on City and West End assets.
Prior to joining, Bindi worked on behalf of institutional pension funds, international investors and owner occupiers. The main focus being to provide a hands on management approach, building tenant relationships and to ensure asset growth and value enhancement of client's investments.
We are delighted to welcome him to the team and his contact details are below.
The Kinney Green professional department has recently settled a compensation claim on behalf of a long established Brixton Nightclub which was to be Compulsory Purchased as part of the ‘Your New Town Hall” redevelopment by Lambeth Council.
The ‘Your New Town Hall’ project is part of the Lambeth Council plans to regenerate a core 2.5 acre site around the Town Hall in Brixton between Acre Lane and Brixton Hill.
The professional team engaged with the client early in the process to provide strategic advice which is essential in the build up to and when faced with compulsory purchase powers.
Through this early dialogue the team were able to understand the clients business and aspirations and approach the assessment of compensation in a structured and justified way with the acquiring authority to enable early settlement before the Council made the Compulsory Purchase Order.
This project is just one of many Compulsory Purchase schemes Kinney Green is involved in. Should you wish to find out more about our CPO service then please do not hesitate to contact a member of the professional department.
After several years of seeking a central City freehold with a ground floor banking hall, Kinney Green identified 45/47 Cornhill in behalf of Ziraat Bank. We then negotiated the purchase of the building in an off-market transaction.
Kinney Green have now also been instructed to manage the building . The building which is arranged over ground and first –sixth floors will need substantial modernisation.
Hot on the heels of their purchase of 10 Dean Farrar Street SW1 in December the CERN Pension Fund completed their purchase of Monument Place, 24 Monument Street EC3 on 16th March.
This 80,000 sq ft landmark building, situated next to Christopher Wrens’ monument to the great fire of London, is the jewel in the crown of CERN’s European property portfolio and confirms their continued commitment to the London commercial property market. The building was completed in December 2013 and following fierce competition from prospective tenants is now almost fully let.
As with all of CERN’s acquisitions to date, Kinney Green assisted throughout the due diligence phase pre-purchase and have been instructed to undertake the ongoing management of this prime asset.
For similar focused acquisition advice at partner level contact Stephen Griffiths or Jonathan Burt.