Demand for office space in London's Square Mile financial district is booming, according to the City of London Corporation.
The corporation is currently negotiating planning permissions for 500,000 square feet of office space, the equivalent of about 70 football pitches in size, with another 500,000 square feet already approved and under construction.
The demand is being driven by a 5 per cent rise in the number of city workers in the past two years to 617,000.
The corporation predicts a further 85,000 people will be working in London's Square Mile by 2040.
This increase will require a further 1.2 million square metres of office space, according to a recent report by Arup and Knight Frank, which was commissioned by the City Corporation.
There has already been a 25 per cent increase in planning applications received and decided upon so far this year, with most of the proposed taller buildings centred in the “City Cluster” area in the Square Mile's eastern corner, already home to some of London’s most famous high-rises.
The corporation received 1,023 planning applications up to September this year, compared with 820 in the same period in 2022.
'City Plan 2040'
It's all part of the City of London Corporation's “City Plan 2040", which sets out the corporation's vision, strategy and objectives for planning up to 2040, together with policies aimed at guiding decisions on planning applications.
The plan is not all about new high-rises – it also provides for retail and food outlets, as well as green spaces and areas of historic and cultural interest.
“Through our flagship ‘Destination City’ policy, we are creating a culturally vibrant, inclusive and welcoming city, enabled in part by these tall towers, which help accommodate the hospitality, leisure, social and cultural destinations that are flocking to the city,” said Shravan Joshi, the chairman of the planning and transport committee at the City of London Corporation.
“The City Corporation’s strong performance this year is underpinned by the Built Environment team’s efforts to de-risk many of the variables associated with real estate investment.
“This includes providing clear policy directives, working closely with stakeholders and undertaking transparent consultation on schemes.”
Nonetheless, data from Rightmove and property analytics company EG earlier this year showed that the number of inquiries for new working space in London between January and April this year dropped by 11 per cent, compared with 2022. But the figure was only 1 per cent below that in the same period in 2019.
“Whilst London inquiries are down, it really is only by a small amount considering the change in office occupancy levels,” said Anna Reed, data director at EG.
“What has changed, however, is the type of space occupiers want – high spec, sustainable with flexible terms and shorter leases, as well as shifting to smaller floor plates.”
Earlier this year, HSBC became the most high-profile tenant of Canary Wharf to announce that it was quitting the Docklands area of London to return to the City, albeit on a smaller scale.
The move was seen as a reaction to the increase in post-coronavirus hybrid working patterns, where employees spend some time working from home.
At the time, HSBC cited one reason for the move was that the City was “a more convenient location for employees”, despite the fact that Canary Wharf is connected to the new Elizabeth train line.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Sanju
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How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
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What is Diwali?
The Hindu festival is at once a celebration of the autumn harvest and the triumph of good over evil, as outlined in the Ramayana.
According to the Sanskrit epic, penned by the sage Valmiki, Diwali marks the time that the exiled king Rama – a mortal with superhuman powers – returned home to the city of Ayodhya with his wife Sita and brother Lakshman, after vanquishing the 10-headed demon Ravana and conquering his kingdom of Lanka. The people of Ayodhya are believed to have lit thousands of earthen lamps to illuminate the city and to guide the royal family home.
In its current iteration, Diwali is celebrated with a puja to welcome the goodness of prosperity Lakshmi (an incarnation of Sita) into the home, which is decorated with diyas (oil lamps) or fairy lights and rangoli designs with coloured powder. Fireworks light up the sky in some parts of the word, and sweetmeats are made (or bought) by most households. It is customary to get new clothes stitched, and visit friends and family to exchange gifts and greetings.
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The UAE volunteers campaign can be reached at www.volunteers.ae , or by calling 800-VOLAE (80086523), or emailing info@volunteers.ae.
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Juvenile arthritis
Along with doctors, families and teachers can help pick up cases of arthritis in children.
Most types of childhood arthritis are known as juvenile idiopathic arthritis. JIA causes pain and inflammation in one or more joints for at least six weeks.
Dr Betina Rogalski said "The younger the child the more difficult it into pick up the symptoms. If the child is small, it may just be a bit grumpy or pull its leg a way or not feel like walking,” she said.
According to The National Institute of Arthritis and Musculoskeletal and Skin Diseases in US, the most common symptoms of juvenile arthritis are joint swelling, pain, and stiffness that doesn’t go away. Usually it affects the knees, hands, and feet, and it’s worse in the morning or after a nap.
Limping in the morning because of a stiff knee, excessive clumsiness, having a high fever and skin rash are other symptoms. Children may also have swelling in lymph nodes in the neck and other parts of the body.
Arthritis in children can cause eye inflammation and growth problems and can cause bones and joints to grow unevenly.
In the UK, about 15,000 children and young people are affected by arthritis.
