Following its recent purchases in Shoreditch and Farringdon the National Farmers Union Mutual Insurance Society has paid £21.6m for a third office building — this time in London’s Fitzrovia district.
Acquired through the society’s subsidiary, NFU Mutual, the Old Fire Station in Maple Street was bought from Aberdeen Asset Management. The NFU was represented by Springer Nicholas and DTZ. The vendor was represented by Colliers International.
Completed in the early 20th century and converted to offices when the London Fire Brigade vacated the premises in the late 1990s, the building extends north to Midford Place and offers almost 19,000 sq ft spread across a basement, ground and three upper floors.
“The building incorporates cast-iron steel columns and steel beams with an attractive aesthetic barrel vaulted brick ceiling at ground floor,” said the Colliers’ brochure.
“There is a potential to increase massing through relocation of plant to the lower ground and roof extensions to create additional space, subject to planning.” it added. “The internal walls can be stripped to expose original period features and brickwork, and suspended ceilings can be removed to expose the ornate beams and create more contemporary offices.”
David Hidderley, of NFU Mutual, commented: “With Fitzrovia office void rates at historically low levels of three per cent we see strong potential for rental growth and future performance. We will be undertaking an extensive refurbishment of the Old Fire Station to capitalise on the growing Fitzrovia occupier demand.”
Fitzrovia is close to the West End and situated between Bloomsbury and Marylebone. Hidderley said the Maple Street offices were within walking distance of both Goodge and Warren Street underground stations and would benefit from the upcoming Crossrail scheme.
“Occupier demand in Fitzrovia has increased quarter-on-quarter for the last 18 months and has gained a reputation as being a hub for creative industries and forward thinking corporates,” explained Richard Howard, Head of Central London Agency at DTZ.
“The arrival of global luxury brands such as Estee Lauder after many years in Mayfair is testament to the sea change that this location has undergone.
“Equally, investor appetite is growing and with the opening of Crossrail expected by 2018, and we can expect capital and rental growth to continue as more occupiers become attracted to the area.
“Most occupiers are looking for character and DNA in their office surroundings and the Old Fire Station, with its history and its exposed brick barrel vaulted ceilings and steel beams, has ample amounts of these.”
