Business Outlook. To read the digital edition of the latestIPE Real Assets magazineclickhere. Castleforge Partners has invested over 500 million of asset value in the UK since its formation in 2010. Visit our. What are the benefits of a serviced office rental? A more localised approach is ideally suited to the current Covid-19 climate as people seeking flexible working closer to home becomes commonplace. Rents have remained relatively stable in relation to wages in recent years. Pros. For more information visit www.castleforgepartners.com. On the other hand, many large corporations do have real estate experts in house and do have a significant amount of balance sheet cash on hand, so still do take traditional leases. Across Europe and the US, real estate markets are strained today to a degree that we have not observed since the global financial crisis (GFC). How Will The Line Change The Future Of Work? The investment comes as Castleforge looks to expand its foothold in the UKs secondary cities, which the firm has identified as having great potential to grow as national and regional business hubs. U.K. Planning System Pitfalls and Opportunities. Castleforge Partners' flexible workspace provider Clockwise will operate part of the building which is 67% occupied. Our vision is for a future in which every work environment and experience has a positive impact for people, places and the planet. Lerche brings20 years of experience in the real estate sector, leading value-added asset management for a range of private equity and international institutional investors, and working closely with stakeholders to steer and reposition portfolios. Even if we charge a higher rent per square foot, this is still a more cost-effective option for the larger tenant versus taking on a longer-term lease for more space than required, just in case they need more in the future. Prior to this, Lerche was Director of Asset Management at Cording Real Estate Group where he managed multiple office assets across Germany, and Partner at real estate debt fund Bright Capital. We offer high-quality affordable multi-family housing. It was founded in 2010 by Brandon Hollihan and Michael Kovacs. Rather than provide a white box for tenants to take on traditional leases where they themselves have to fit out their space, we have begun to also offer a fit out option on the smaller floorplates to a turnkey stage (meeting rooms, furniture, desks, toilets and all) where a tenant can sign the lease and begin working the very next day. A Returning Opportunity in the London Office Market? Clockwise offers a variety of flexible spaces to suit. The value of the deal was undisclosed. We are thrilled to be contributing to these vibrant professional communities in every corner of the country. Since its inception in 2010, Castleforge has invested approximately 1 billion, gaining a strong reputation for value-add investment in office and residential real estate across the UK and Europe. While we believe the offering is increasingly attractive to a variety of tenants (discussed in detail later), the typical business model possesses numerous potential risks, primarily because typical serviced office operators lease their, For those of you who attended our annual meeting, which was held in London on May 9th, you will know that we spoke in some detail about the three main pillars of our investment strategy: vertical integration, thematic investing and operational enhancement. Additional phases are due to be released. One example from Savoy is a 15-person recruitment business that took space in a Clockwise unit. Again, back at Savoy weve recently signed a 25-desk lease at Clockwise on a month-to-month basis with a major blue chip corporation. ft. of serviced office space operated by Clockwise. Would you like to read more? in 2019. We use cookies to ensure that we give you the best experience on our website. Castleforge Partners has acquired its first office building in Germany, in the historic old town of Bremen. Tony McDonough reports. Project manager / cost consultant: Quartz. Clockwise's owners, Castleforge Partners, has appointed Evora, a leading sustainability consultant, to help develop and implement a sustainability strategy framework for their business and investment portfolio. Help? Brandon Hollihan, Founding Partner of Castleforge Partners said, We are thrilled to announce our first acquisition in Germany as we look to invest significantly in more secondary cities across the country over the next 18 months. Castleforge, a vertically integrated, operationally focused private equity real estate manager targeting the UK and select European cities, today anno. Further, while competition amongst serviced office providers is lower than in the UK regions, and desk rates are sometimes higher than in the UK regions, the cost basis for construction is pretty similar. PROPERTY investment firm Castleforge Partners today (November 13) announced the acquisition of Broadwalk House, a corporate office building in Southernhay Gardens, Exeter. As Castleforges sustainability strategy develops, we will work closely with them to align our approaches wherever possible. We invest in real estate located in and around select UK and European cities. On the one hand, London is a volatile market and is not immune to economic cycles that create cap, We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Our readers will know that we have been covering the WeWork story for a number of years now and that we have been sceptical, at least to the extent that WeWorks business model was a poor bargain for landlords and likely obscured a reduction in net absorption in central London, Over the past 20 years, the UK property industry has seen a substantial rise in construction costs. Clockwise Castleforge Partners is a successful private real estate investment firm that has invested over 500 million in asset value throughout the UK since 2010. In apresentation of April 2022, the company declared that all its investment activities would be guided by a new mandate going forward:If not Flex or HQ repositioning [] [then] exit.GPEs latest annual report describes, In this paper, we lay out the case for investing in European real estate, particularly relative to US real estate, in the coming decade. Why should property investors consider Leith? Linesight has been providing full cost consultancy services on the . M&E engineer: Lehding Services Design. Our team has a proven track record of investing throughout the capital structure and across asset classes, adding value with operational expertise. . I look forward to bringing my experience to the firm during this important time to support further growth of the business., Sign up to our weekly round-up of plastic free stories. Clockwise offices are renowned for preserving architecturally significant and interesting details of the existing building and creating features of these as focal points in a contemporary designed office. Serviced Offices, Co-working & Meeting Rooms | Clockwise Traditional leases Longer commitment - leases lasting an average of three years Large initial investment in CAPEX Project management required Lag between signing to move in Running costs and utilities paid separately, multiple suppliers and management required Distressed Opportunities in European Real Estate, The Winning Bookends of the Office Market, Even Bits Need a Place to Work: the Rise of the Data Centre, Why Youd Want to Live Here: Spatial Equilibria from the Industrial Revolution to the Information Age, A Tale of Two Classes: Prime Office Supply in London and Paris, Gateway Cities and the Death of Information Monopolies. About Clockwise. Through focusing on Clockwise we have made a number of observations that we would not have seen without this experience, and we felt it would be valuable to share some of these with you. London-based property investment firm Castleforge has announced the acquisition of five multi-let office buildings on the historic Koninginnegracht in The Hague as part of its first expansion into the Netherlands property market. This localised approach is ideally suited to the current Covid-19 climate as more people move out of London and flexible working close to home becomes commonplace. Fantastic to see this landmark heritage building given a new lease of life. Castleforge Partners is a private equity real estate investment firm based in London, UK that has invested approximately 1 billion of asset value throughout the UK and Europe. With extensive experience in hospitality and real estate, she is perfectly positioned to lead the business through this exponential growth. For Media Enquiries, please contact: castleforge@higginsonstrategy.com +44 (0)786 605 1626. Reading Time: 2 minutes Across Europe and the US, real , Reading Time: < 1 minute The London-focused office REIT Great , Reading Time: 2 minutes In this paper, we lay out , Reading Time: 3 minutes The internet has already changed the , Reading Time: 4 minutes As weve discussed before, the office . Dentons Europe served as legal advisor for Castleforge Partners while Drees & Sommer were mandated as technical advisors. He is also a former Director at Tristan Capital Partners. A truly flexible approach and varied membership packages has attracted a client mix of entrepreneurs, start-ups, scale-ups and established businesses from a cross section of sectors. Flexible offices platform Clockwise has announced its second London location, a 73,000-square-foot office in Bromley's Old Town Hall, will open in spring 2022. Clockwise is headed up by COO, Alexandra Brunner. COMPANY. This implies that achievable yields on cost are higher in certain markets in continental Europe. Affordable housing Europe: Should investors be part of the solution? Castleforge Partners's Clockwise at Edwards Pavilion has recognised at the Mixology Awards 2019 as 'Commercial Interiors Project of the Year over 30,000sq.ft.'. 42-46 Princelet Street Virna Asara Editor Profile Events We note that the likes of Great Portland Estates and Derwent London, who often deal with smaller floorplate occupiers and who have had a more difficult time recently as those smaller occupiers have used serviced office as a substitute to traditional leases, are themselves fitting out the space to a turnkey finish so as to win back tenants from the likes of WeWork and The Office Group. While we monitor performance on the operational assets, we are entering design stages for our fourth and fifth locations in Bristol and London, adjusting our deployment of Clockwise accordingly. It captures our four key goals Climate Change, Circular Economy, Health & Wellbeing and Socio-Economic Impact and details a roadmap for achieving them. 100% FREE. We note that recently, Ernst & Young (E&Y) announced that they are looking to increase the proportion of flexible offices in their estate from 10% to 30% in the UK and Ireland. MESSAGE. And it worked. Martin Claisse - Castleforge Partners: Project Manager: Adrian Poucher - Malcolm Hollis LLP: Architect: John Lee - Povall Worthington: Cost Consultant: Michael Riordan - Linesight: M&E Engineers: Thomas Lehd - Lehding Services Design: Structural Engineers: . However, we believe this tool enables us to create complementary portfolios in key markets where we can maximise our operational advantages and maintain a defensible portfolio mix of tenants. At the heart of Southampton's Business District, this prominent office building boasts occupiers such as Savills, Mott MacDonald, Norweigen Cruise Line Group, Benefex, Hays, Clockwise, Rubix Business System, VOA, Health Care Resourcing Group and Ocean Network Express. Since 2000, construction costs have outstripped inflation by nearly two times. A couple weeks ago,, As we have discussed in previous letters, over the past 20 years the UK property industry has seen a substantial rise in construction costs, which has lead to a large and sustained increase in the replacement cost of buildings. Spaces that are perfect for a discussion with your board or a workshop with the whiteboard. You consent to our cookies if you continue to use this website. The firm has identified a clear investment opportunity in so-called 'secondary cities' across the country and will look to expand its reach across the German commercial market, with further purchases to be announced over the next 18 months. At Castleforge we foster an environment that encourages continued learning and development of each member of staff. It causes us some amused frustration that many brokers in our industry dont spend much time on a day-to-day, On a recent trip to Berlin to meet with the buyer of 160 Aldersgate (a Germany-based fund), Mike and our colleague Martin were walking around the Alexa shopping centre in Mitte. The clock reset to 20 seconds and Scherzer was already in the stretch. Higginson Strategy organises a number of exclusive events for clients and friends over the course of the calendar year. Castleforge | 1,896 followers on LinkedIn. This attention to detail dovetails with the services that PMP provided to deliver Clockwise Commercial Quay for Castleforge Partners. Clockwise provides well-designed, contemporary private offices, shared workspaces and meeting rooms with a focus on attention to detail. E1 5LP, Work.Life By continuing to use this website you are giving consent to cookies being used. Property investment firm Castleforge Partners has announced a significant expansion of its UK operation with the acquisition of four major office spaces across England. Adam Riggs CEO Of Frameable | Can a Virtual Experience Really Replace the Office? Interview: Stefan Mchler, Swiss Life Asset Managers, Top 150 Real Estate Investment Managers 2022, Top 100 Infrastructure Investors 2022: Survey, Castleforge raises 270m for third value-add real estate fund, Brookfield and Copley recapitalise UK logistics portfolio sold by Tritax, Indiana PRS supports new Carlyle Europe fund with $75m commitment, EQT to buy South Korean security operator SK Shieldus, CIP and Viviid partner to develop 1.8GW renewable energy projects in India, Singapores GIC to invest 1bn in EDP Renovaveis. We invest in real estate located in and around select UK and European cities. We use cookies to offer you a better browsing experience, personalise content and ads, to provide social media features and to analyse our traffic. This strategy was proposed by PMP to allow our Client to maximise their investment as early in the development as possible and allow them to market the offices to attract new users and members and showcase the best of the Clockwise offering at the earliest opportunity. Well make sure everything works, so they can do their best work. This year we opened our first building in London, Wood Green with a second planned in Bromley. LONDON-based property investment firm Castleforge Partners has appointed Christian Lerche to head its asset management in mainland Europe and to support further European growth, following its recent expansion into the German commercial market. Be the first to find this review helpful. When doing like-for-like comparisons of serviced office product, one of the most interesting things we have found was that while serviced office as a product is far less developed and sophisticated on much of the continent when compared to UK regional cities, the serviced office desk rates are often higher than they are in UK regional cities. Airbnb pulled millions of new suppliers into the market, and pricing algorithms, As weve discussed before, the office has changed a great deal in the last quarter-century. Our initial involvement with River House was in undertaking a pre-acquisition survey with input from our M&E engineers which included a reinstatement cost assessment.Following our client's purchase of the building, we were instructed to act as project manager on the refurbishment of the 80,000 sq ft property to provide a mixture of co-working space and private offices. By continuing to browse our site you agree to our. It plans to use its flexible workspace provider Clockwise to deliver a positive experience for occupants as well as attractive returns for its investors. STATUS Completed. Will Influencers Be The New Recruiters In The Future Of Work? Nice offices and a relaxed approach to office working. PROPERTY investment firm Castleforge Partners has announced the acquisition of its first office building in Germany, in the historic old town of Bremen. It is therefore often helpful to draw parallels to previous market cycles as a way to help us understand what may be happening now. We expect to continue the strategy of providing a turnkey solution, and we are finding that were not the only ones. Here,, At Castleforge we foster an environment that encourages continued learning and development of each member of staff. 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In this spirit, we thought we would take the next couple of pages to review what weve learned in our experiences so far with our Clockwise serviced office product. Since the referendum vote in mid-2016, we have maintained an analysis of the dynamics of supply and demand in select European cities, since we believed that some could one day become competitors for the universe of UK tenants who need to remain within the EU. We have been monitoring select markets where we think we can create a competitive advantage, though we are being judicious with our resources in doing so. Lerchesappointment follows Castleforges recentacquisition of its first office building in Germany, in the historic old town of Bremen. Rachael Pittaway is a director at Castleforge Partners, the real estate investment firm behind Clockwise Offices. A unique addition to Clockwise Commercial Quay is the bespoke bar and microbrewery and a commercial kitchen within the Grade A Bonded Warehouse. Within 15 months of opening in May 2017, we were over 90% occupied on the private office space and over three times subscribed on the club membership which provides hot desking in the common lounge area. We provide spaces for the local community and key workers. Castleforge acquires Linley House. We strive always to be at the forefront of change, developing in-house capabilities and a thoughtful view on the world that together create a sustainable competitive advantage. workclockwise.co.uk. CEO Approval. The building will be fully refurbished to enable the firm to introduce its flexible workspace provider, Clockwise into the space, offering an alternative to traditional fixed-term offices. Located in the prime central business district, the 5,000-square-meter (53,820-square-foot) Martinistrasse building was acquired off market and is currently at 63 percent occupancy, presenting a repositioning opportunity for Castleforge. He waited until Adams stepped back into the box at the 10-second mark and immediately threw his pitch. Real estate fund managers target net zero, New Forests seeks to raise A$600m for Australia and New Zealand fund, Japanese firms Mitsui, Nomura to buy global forestry manager New Forests, NYSCRF adds $425m to emerging manager programme, Alaska Permanent Fund to invest up to $360m in US multifamily projects. 75% Of Business Leaders Lack Data Needed For Crucial CRE Decisions. Start by Keeping It Simple, Fun, and Consistent, 5 Pros Share How To Use Instagram To Grow Your Coworking Business, Want To Wow Coworking Members? Castleforge Partners has created new office space at Edward Pavilion . At our Liverpool asset we have also experienced blue chip tenants approaching us on a 5-10 year lease basis because the building also provides overflow space for them through Clockwise that can eventually be converted into an additional lease if required. Mountbatten House, home to Clockwise Southampton, is a new, flexible co-working space designed to encourage members to interact, network and socialise. Based in Germany, Lerche joins Castleforge fromCapitaLand International where he was Director of Portfolio Management. E&Y has already gone from zero flexible office space to 10% of their portfolio in the past two years alone, but understands that in order to be agile and efficient with the use of space they will need to triple the amount of flexibility they currently have. Castleforge Partners has acquired four UK sites for a 175m (192m) office development. ft. of CAT A space which included circa 22,000 sq. 3 Steps To Build A Three-Dimensional Hybrid Workplace, Peter Miscovich JLL Global Future Of Work Leader | The Hybrid Workplace Evolution: Unlocking The Future Of Work, AI Is Transforming The Future Of Industrial Work, Reimagining Offices for Hybrid Work: Frameable.com CEO on the Future of Virtual Offices. With the investment, Castleforge plans to create flexible workspace through its provider, Clockwise. Belfast, 100,000 sq. By continuing to browse our site you agree to our. EMAIL. Castleforge Partners Limited is authorised and regulated by the Financial Conduct Authority. Our views about that transformation are structured around a broader narrative about the evolution of information and communications (ICT) technologies. The investor is . Castleforge Partners. The Million Dollar-Mistake Businesses In California Cannot Afford To Make: Compliance Deadline Approaching! The works achieved practical completion in April 2021, on time and on budget . Thus, the flexibility of being able to scale up and down on space is helpful but not essential. Castleforge Partners Fund Native Currency GBP Fund Manager's Location The Heals Building 22-24 Torrington Place London WC1E 7HJ England, United Kingdom +44 020 0000 0000 Fund Domiciles United Kingdom: Guernsey Castleforge Partners Fund III Investment Strategy Investments by Industry Investments by Deal Type Want detailed data on 3M+ companies? It was founded in 2010 by Brandon Hollihan and Michael Kovacs. traditional leases over certain floors would look like. Whether you need to meet face to face, dial in, log on or do it all at once. Equally importantly, the velocity of leasing was materially improved as a result of the Cat B turnkey fitout as the switching costs for potential tenants to come into Waterloo Street were significantly lowered. This combination is occurring elsewhere in our portfolio. When you factor in that borrowing margins and the bank risk-free rate are both lower, the degree of positive leverage for serviced offices on the continent begins to look much superior to that achievable in the UK regional markets. We are committed to socially responsible business plans. We invest in real estate located in and around select UK and European cities. The first phase, completed in July 2020 created over 35k sq/ft of flexible office space in Leith, one of Edinburghs busiest commercial districts. 42-46 Princelet Street The first phase, completed in July 2020 created over 35k sq/ft of flexible . We also keep in mind that Clockwise is not one fits all solution, and so we are careful to select the type of buildings and locations that best suit this offering while also limiting liquidity risk on exit. Castleforge Partners Clockwise Cartwright Pickard Hawkins/Brown Architects MoreySmith Atelier Works Studio Fernando Gutirrez GBS Fine Art Firms, Firm Listing, Timothy Groom Design Consultancy, London, Wayfinding, Information Design, Product Design, Timothy Groom Design Consultancy New Member Offer Upcoming SEGD Events Email this page We engage with local communities around our assets. London Under Castleforge's coworking brand Clockwise, office tenants will be able to rent a private office or dedicated desk, or sign up to a club membership. Clockwise is headed up by COO, Alexandra Brunner. LONDON-based property investment firm Castleforge Partners has appointed Christian Lerche to head its asset management in mainland Europe and to support further European growth, following its recent expansion into the German commercial market. 22/02/2023 5 min read Property investment firm Castleforge Partners has acquired four major office spaces across England, in Leeds, Manchester, Exeter and Southampton. Support new businesses to thrive and create positive socio-economic impact in our local communities. Sustainability is ingrained in our corporate vision and values, our culture, and everyday actions. With recent political movements drawing greater attention to the potential impacts of human activity on climate change and governments coming together to discuss ways to reduce and mitigate these impacts, it is no surprise that ESG issues are at the forefront of the minds of stakeholders in the property industry. In his January 2021 memo, Something of Value, he writes that their obsession with cheapnessor more specifically, with a nave definition of cheapnesshas confounded their ability to spot genuine value. Sustainability is ingrained in our corporate vision and values, our culture, and everyday actions. Flexible workspace provider Clockwise will manage the sites to "deliver a positive experience for occupants and attractive returns for its investors". If economic fundamentals continue to soften, liquidity problems could turn Market Commentary 2023 Future Of Work Forecast: Five Ways Tech Will Change The Ways We Work In 2023, 2023 Instagram Trends Reveal How To Market To Gen Z, 2023 Future Of Work Forecast: Focus Marketing On Values and Customer Experience, Not The Product, Want Your Coworking Newsletter to Actually Convert? Read about how we use cookies and how you can control them by reading our Privacy Policy. Examples include skill-specific educational courses that team members are welcomed to take, our internal library filled with books (albeit many of which are still in pristine i.e., unread condition) or our Monday meetings where everybody on the team contributes something they learned during the week before. Higginson Strategy organises a number of exclusive events for clients and friends over the course of the calendar year. Sectors Learn more about the core sectors in which we work, each with a unique set of challenges that we account for in our approach. A hot-desk for the freelancer, satellite worker or lone wolf who needs space to focus and fire up their next project. What Does a Serviced Office Correction Look Like? Building value by improving the connection between people and real estate | Founded in 2010, we are a leading UK-based private real estate investor that combines research-led investment themes with vertical integration and in-house operating platforms.
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