Ivybridge Investments - Offices Development - London WC2, Shell-Mex House

Date: 14 Apr 2000

Ivybridge Investments LP, a joint venture between New York-based property developer The Witkoff Group and global investment bank Lehman Brothers, has let a total of 37,160 sq metres (400,000 sq ft) at Shell-Mex House on The Strand.

Shell's oil trading company, STASCO, has agreed a sale and lease-back on 7,432 sq metres (80,000 sq ft) following the sale by its parent last year. US media and advertising group Omnicom will occupy 4,552 sq m (49,000 sq ft) in the adjacent Cecil Chambers building. Pearson plc will be the anchor tenant, leasing 25,083 sq m (270,000 sq ft).

The lettings are a triumph for the building's owners, who purchased the building last year after the oil giant restructured. Shell-Mex House is The Witkoff Group's first property development outside the US and the success of the London deal has encouraged the company to consider further ventures throughout Europe.

Witkoff Group principal Jeffrey A. Goldberger said: "We have the expertise to tackle many projects that other players might consider too risky. Shell-Mex House demonstrates our ability to sensitively redevelop a property and be commercially successful. Our team has a wealth of experience and we will consider any real estate opportunity where there is potential to add value."

Andrew Pettit, director of Lehman Brothers, commented: "Through the creative application of risk capital in strong market conditions, we have created an investment-grade real estate asset in a very stringent time frame."

Ivybridge will transform Shell-Mex House into a striking new office complex. The interior of the grade II listed art-deco building is being completely redesigned to provide grade A-specification work space.

The partnership will leave the distinctive white Portland stone exterior unchanged, whilst fitting the interior with the latest communications and M&E services to meet the IT-intensive demands of modern tenants. A new glazed courtyard will mark the building's transition into the 21st century.

Philip Dawe, director of Insignia Richard Ellis, who marketed the building on behalf of Ivybridge, believes that the redevelopment of Shell-Mex House sets an international benchmark for the reuse of architecturally-significant property. He explained: "We persuaded our tenants to share in our vision of an ultra-modern use of a historic building. We worked hard to ensure that Shell-Mex House retains the purpose for which it was designed, yet has been reconfigured to provide a very contemporary workplace."

Healey & Baker, a member of Cushman & Wakefield, and Richard Berzine & Company advised Pearson on its relocation to Shell-Mex House.

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