Nick McCalmont-Woods « McCalmont Woods

Orsted (formerly known as DONG Energy) is a renewable energy company headquartered in Denmark employing 5,600 people including over 900 in the UK. Its shares are listed on Nasdaq Copenhagen and in 2017 the group’s revenue was DKK 59.5 bn (EUR 8.0 bn).

Brief

McCalmont-Woods was tasked with developing a property strategy for DONG Energy in London which recognised that the business occupied circa 50,000 sq ft under six leases due to expire within a short 2-3 year timespan and which leases were all held from different landlords.

With headcount in London expected to grow significantly beyond the existing lease expiry dates it was important to identify a new headquarters building that would be capable of meeting the businesses’ future growth needs and which was available to lease within the timescale identified. In addition the new HQ building would also be required to meet various exacting technical, environmental and sustainability requirements in keeping with the businesses’ corporate image and standards.

Outcome

Against the backdrop of an increasingly tight London office market characterised by low levels of supply and high levels of occupier demand, McCalmont-Woods was successful in identifying and securing 81,000 sq ft Grade A offices for Orsted in an award-winning building at 5 Howick Place, Victoria, SW1 some 18 months ahead of lease expiry, on highly competitive terms.

Brent Cheshire, UK Country Chairman
“We are delighted to have leased this new state-of-the art office. This reflects the rapid growth of our business and our commitment to the UK where we have invested over £5 billion in the last decade. The new office space will give us a great opportunity to bring together all 400 of our London-based staff, with all the benefits that improved collaboration can bring. Securing this accommodation also ensures that we remain in Central London, close to our key Government and business stakeholders.”

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Trinity Mirror, advised by McCalmont-Woods has sublet the 10,521 sq ft remainder of the 19th floor of One Canada Square, Canary Wharf to High Speed Two (HS2).

Trinity Mirror is one of the largest multimedia publishers in the UK and Ireland with an award-winning portfolio of media brands employing over 4300 people across more than 48 locations around the country. HS2, is the company responsible for developing and providing the UK’s new high speed rail network and is wholly owned by the Department for Transport.

This is the second deal in just seven months with HS2. In May 2014, Trinity Mirror, also advised by the niche London real estate agency, let the first part of the 19th floor comprising 16,410 sq ft to HS2 on a new sub-lease expiring in June 2018. The new December, 10,521 sq ft sublease is on a coincidental lease term. It takes HS2’s occupation on the 19th floor to 27,000 sq ft and 81,000 sq ft in total in the iconic Canary Wharf tower. GM Real Estate act for HS2.

McCalmont-Woods CEO, Nick McCalmont Woods said: “When it was built One Canada Square was, and is arguably still, the finest piece of UK real estate. As a previous tenant in the building it is always interesting to revisit clients and assist on reconfigurations within the tower”.

Reach plc is the largest national and regional news publisher in the UK with a leading portfolio in Ireland. It creates engaging, relevant content which is distributed through newspapers, magazines and digital platforms – playing a central role in its audiences’ daily lives. Its national and regional brands have a long heritage of being trusted sources of the latest news, information, sport and entertainment, offering a range of opportunities to connect brands with consumers. With one of the biggest monthly multi-platform audiences in the UK, Reach’s national and regional news brands are prominent champions, campaigners and changemakers.

Background

In Q4 2013 Canary Wharf was awash with over 1.7 million sq ft available offices (ignoring ‘grey’ space which accounted for an additional 12% floorspace) and it was into this market that Reach wished to reduce its office footprint by disposing of circa 27,000 sq ft surplus offices at One Canada Square, E14 (the UKs tallest building) for the remaining 4.5 years under its lease. With prime rents flatlining for 10 quarters McCalmont-Woods recommended quoting a deep discounted rent of £17.50 per sq ft (from £40 per sq ft rent passing) to pique the interest of potential occupiers.

Outcome

McCalmont-Woods concluded a letting to High Speed Two (‘HS2’), the government funded company responsible for developing and promoting the UK’s new high speed rail network, on 16,410 sq ft in May 2014. Then, six months later, McCalmont-Woods persuaded HS2 to lease the 10,521 sq ft balance of Level 19. The successful disposal of the entire surplus floor under two subleases, with rent payable from day one, produced a combined cost saving to Reach of circa £5,750,000.

Mike Shaw, Group Services Director
“We have had a long-standing business relationship with Nick McCalmont-Woods, where he has acted for us appertaining a number of difficult and delicate property transactions, within our London portfolio. In all respects the work undertaken by Nick has been done in an utterly professional and conscientious way and he has a unique ability to understand his clients requirements from day one, without being overawed by the task at hand.”

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Danish power company DONG Energy takes new lease on 81,000 sq ft London offices as its growth continues.

Niche office agency McCalmont-Woods has advised Danish company DONG Energy on its new UK office headquarters. The company has signed an agreement for lease to take 81,000 sq ft of office space at 5 Howick Place, London W1.

The move will allow it to consolidate its existing London offices across five floors of one building. DONG Energy currently occupies offices in Trafalgar Square and Grosvenor Place.

Brent Cheshire, UK Country Chairman of DONG Energy said:

“We are delighted to have leased this new state-of-the art office. This is a reflection of the rapid growth of our business and our commitment to the UK where we have invested over £5 billion in the last decade.

“The new office space will give us a great opportunity to bring together all 400 of our London-based staff, with all the benefits that improved collaboration can bring. Securing this accommodation also ensures that we remain in Central London, close to our key Government and business stakeholders.”

Nick McCalmont-Woods, CEO of McCalmont-Woods said:

“This is an exciting time for DONG Energy as its rapid growth in the UK continues. It is always a challenge for fast growing companies to find quality space in London. We worked closely with DONG Energy and are delighted to have secured this award winning building for them on excellent terms. It gives them the ideal platform to continue to expand their business.”

DONG Energy is one of the leading energy groups in Northern Europe. It is the market leader in offshore wind and is the UK’s second largest industrial and commercial gas supplier.

DONG Energy has about 6,500 employees worldwide. The Danish-based group generated DKK 73 billion (EUR 9.8 billion) in revenue in 2013. For further information, see www.dongenergy.com

5 Howick Place was awarded Best UK Office Development in the prestigious 2013 UK Property Awards. The landlord, Doughty Hanson & Co. Real Estate and Urban & Civic, was advised by CBRE and Cushman & Wakefield.