The Office Gossip

Following this mornings Estates Gazette Development Summit, it is clear that things are progressing on the Kings Cross Central site.

From the dancing water fountains in Granary Square to whatever ends up in the gasholder, which the King's Cross Central Partnership has launched a national open design competition for, it is clear that Kings Cross is set to be an amazing new part of central London, where everything is surprising and mediocrity will be outlawed.

Some photos taken on the tour of the site offer only a mere glimpse of the extensity of this exciting scheme which hopefully will fulfil its full potential.

Works progressing.

Gasholder 8, set to be incorporated into the scheme.

Robert and Vincent Tchenguiz's High Court showdown with their brother-in-law, canned-fruit millionaire Vivian Imerman, over an alleged breach of confidence has begun.

This morning, Eady J began hearing Imerman's application for summary judgment, without the need for a full trial, of his claim against the brothers.

The dispute began three months ago when Imerman, a former chairman of food giant Del Monte, was evicted from his office at Leconfield House, 18 Curzon Street, London W1, which he shared with Robert, as a result of a family dispute.

Following his eviction, Imerman filed an application against the brothers and three other men, claiming that they took confidential information that belonged to him from the premises and are therefore in breach of confidence.

Following an application by Imerman's counsel the press was barred from the three-day hearing, but Eady J indicated that his judgment on the dispute will be given in public.

Most lenders to the UK's investment property market will be unable to shrink troublesome loan books for the foreseeable future, despite much of this debt being under water, analysts claim.

Some £50 billion out of £280 million of loans arranged in the markets during the 2004 to 2007 boom are now worth more than the underlying properties, according to property consultants Savills.

'My guess is that at least 75% of all loans are in breach of at least the LTV (loan to value) covenant,' warned William Newsom, head of valuation at Savills UK.
He added that around half of existing lenders also plan to decrease their loans to the sector this year so foreclosing on the debts of property owners may not be an option because the lack of financing makes it difficult to find new buyers. Banks are also reluctant to sell into a falling market.

As an alternative to calling in the debt, most lenders are extending repayment periods, in some cases by as much as eight years, while renegotiating loan terms at higher margins, Newsom said.

He believes that the next five to ten years will be about managing existing loans for the banks who are effectively the new property owners, in partnership with their borrowers.
However banks in Germany and the UK in particular are willing to lend. Of 22 banks willing to originate loans of above £10 million in value, 10 are German lenders and eight are from the UK, including Barclays, Lloyds, and HSBC. Just two German banks, DG Hyp and Eurohypo are willing to make loans of above £100 million pounds.

Mat Oakley, head of commercial property research at Savills, expects UK investment sales for the first six months of 2009 to be higher than in the second half of last year, and thinks that this signals the property market has turned the corner.

While buyers have so far concentrated on top-end buildings with long leases and strong tenants, he expects to see a new wave of risk-loving investors, keen to take advantage of the massive discounts currently available.

'We will start to see the opportunistic deals coming in, and the best deals will be done before the herd returns in 2010, 2011,' he said.

The downturn continued to take its toll on the UK property sector with nine administrations recorded last month, according to the EGi Tracker.

KPMG's Richard Fleming said: "We predict a wave of fallouts in the commercial property market as the true value of losses becomes apparent".

This is expected to increase job losses across the sector, which had started to show signs of easing.

With the new series of the Apprentice having just climaxed on the BBC and attempts by Gordon Brown to get him to join the government it seems there's no keeping Alan Sugar back, something proven once more by this latest proposal to stand on Bishopsgate by his property company, Amsprop.

The scheme has been designed by Blair Associates and is located on 119 - 121 Bishopsgate and will be approximately 40 m tall. Consisting of a ground floor plus 10 floors above, the scheme will offer 9,930 sq m (106,886 sq ft) of space.

The architecture is roughly cylindrical in shape and steps back on the upper levels reducing the overall bulk of the building. Cladding comes in the form of horizontal bands of red limestone with narrow lines of crystalline stone running through it adding a spot of contrast. Set in between the stone cladding will be horizontal ribbons of floor to ceiling glazing that wrap around much of the building. Topping it will be green roofs.

It's an important development for Amsprop which has done little by the way of new build schemes preferring to concentrate on buying prime space in and around London's central core and doing it up. It should be interesting to see if this marks a change in strategy as Amsprop move towards dreaming up new schemes as the property market recovers.

Last week saw UK Developer Gerald Ronson celebrate his 70th birthday, and this week has seen the release of his autobiography. But he has assured that this does not signal the imminent retirement many would be expecting.

With a total of £2 billion worth of projects in the pipeline and numerous opportunities lined up, he insists he has at least another 10 years of working life ahead of him.

Ronson has certainly led an interesting life, with early fame coming through the 1980's Guiness share-trading scandal, and subsequent 1990 jail term. This was followed by the near collapse of his firm Heron, and latter rescue by American investors, paying out handsome dividends in return.

Ronson has also been tireless in raising more than £25 million for the Jewish community. But, as one of the book's chapter headings testifies, "First and foremost I am a property man".

So, it will be his property achievements on which he will be judged. Right now, that reputation rests with the 46-storey Heron Tower, due for completion in 2011.

Only time will tell whether he has judged the market correctly but there is little doubt that the tower will provide a fitting tribute to this remarkable man.

At first glance, burying your office in an unpopulated wilderness could be deemed as commercial suicide, but Spanish architecture practise SelgasCano is obviously very comfortable with its position in the market, as it's done precisely that.

The lack of any other construction certainly helps this inspiring structure stand out.

It is accessed via a hidden stairwell, which winds into the forest floor.

Workers find themselves at chest level with the ground (an eco-conscious bid to conserve energy via natural insulation) and sit beneath a glass roof that provides natural light and a leafy prospect into the trees' canopy.

Yet there is more to this building's design than first meets the eye. Neuroscientists studying how rooms affect your mood believe that low ceilings encourage detailed work, while views of nature help employees' creativity.

Two important factors the workers should bear in mind when they realise they are spending their days in a sunken glass tube.

Former Economist editor Helen Alexander has told firms to hire more women for boardroom roles, just hours after being nominated as the next president of industry union the CBI.

Alexander warned there is a risk of "group think" at firms which only put white men in senior roles, arguing the benefits of diversity justify focusing on female appointments. She added that given the uncertain economic times, constructive dialogue is critical.

Alexander will become the first ever female president of CBI if she gets approval in June. The CBI, considered the most important trade association, represents 80 of the FTSE 100 firms.

The absence of the trademark Knight Frank sausage at its central London breakfast back in February certainly did not go unnoticed and clearly showed the tough times we are all in. But thankfully it has now made its return and with it comes the hope of recovery.

The meaty snack was resplendent in all its glory at the agent's M25 Breakfast in London's Dorchester hotel on Tuesday, and one property figure remarked: "The Knight Frank banger has become a bellwether for our times. The larger it gets, the happier we can feel."

Following the disappointments of the highly controversial Champions league game this week which would have left many City workers long in the face, there is at least one opportunity for Chelsea fans to possibly raise a smile.

Chelsea FC is staging a special tournament on Thursday 4th June, where 24 teams will compete for the Stamford Cup and the chance to win an executive box for one of next seasons home matches.

But don't get too carried away. It costs a hefty £1,980 (plus VAT) to enter a squad of nine players, something I'm sure would not be covered on the company expenses.

Although for the lucky few, City A.M. is offering one team of City-based workers a place for free.