Halkin goes after mixed use with Angelo Gordon backing

Michael Kingshott’s Halkin has secured the backing of US investment giant Angelo, Gordon & Co to pursue mixed-use development projects and separately signed a 62,000 sq ft letting on London’s South Bank for its expanding serviced office portfolio.

The Halkin team aims to create 11,000 workstations in expansion drive.

In an interview with Property Week, Kingshott, the founder of Halkin and former managing director of Serviced Office Group, said the group would split in two, creating an operations company to manage its serviced offices and a property company to seek development and investment opportunities.

The first scheme for the propco is a £200m, 300,000 sq ft project on an island site in Graphite Square, Vauxhall, which Halkin will develop in partnership with property development and investment firm Bmor.

“Bmor came to us about the site and we pulled the finance together,” said Kingshott.

With the backing of Angelo Gordon, Halkin is on the lookout for other sites.

Rapid expansion next year

The company also has its sights on a rapid expansion from three to 15 serviced offices during the course of the next year.

Advised by Lambert Smith Hampton, it has already agreed a deal to take the entire 62,000 sq ft at 1-2 Paris Gardens, on London’s South Bank, where the group will open its fourth serviced office centre later this month.

Paris Gardens, which was marketed by Union Street Partners, will have 900 workstations, a mixture of open-plan co-working space, meeting rooms and self-contained office units.

While Kingshott would not comment on the details, it is believed Halkin has agreed a 10-year lease at close to £50/sq ft for the premises.

The Paris Gardens site joins Halkin’s exclusive Brook Street serviced office and club, which are next to and run in partnership with upmarket hotel Claridge’s. The group also has an office at Watford Junction, and the soon-to-be-launched Mermaid Theatre in the City of London.

Paris Gardens is going to be a great place to work - Michael Kingshott

“We will phase the opening of Paris Gardens, with the ground floor and first floor opening within two weeks. We’ll have the rest of the building ready within three months,” said Kingshott. “With high-end 2GB broadband, a really flexible working space to suit one-man-bands to growing start-ups, and the delights of the South Bank on your doorstep, it’s going to be a great place to work.

“We are aiming to create a 15-strong portfolio of serviced office sites, looking for sites in areas such as Waterloo, the West End, Midtown and the City. We may then expand our locations again, into cities such as Birmingham, Milton Keynes and Manchester. Overall, this current expansion phase will result in around 11,000 workstations across the portfolio.”

Kingshott launched Halkin last year with cash from the £44m sale of his former business, Serviced Office Group, to Regus.

If you are interested in any of Halkin's serviced offices please call Gryphon Property Partners on 0203 440 9800 or click on the following link - Halkin