SIR WALTER RALEIGH HOUSE

Transcription

1 48-50 ESPLANADE, ST HELIER, JERSEY PRIME MULTI-LET OFFICE

2 INVESTMENT SUMMARY Jersey is the largest of the Channel Islands and one of the worlds leading offshore banking and finance centres. Prominent office located in the prime pitch on the Esplanade. Grade A office totalling approximately 21,013 sq ft (1,952.1 m2 ) NIA over basement, ground and 4 upper floors. Low rent ranging from 27 psf to 29 psf, compared to levels of 40 psf achieved in nearby buildings. Multi-let to tenants including; Aberdeen Private Wealth Management Limited, CVC Capital Partners, Jersey Finance Limited, Capco Trust Jersey Limited and Touchstone (CI) Ltd. WAULT to lease expiries of c.5 years and c.4 years to breaks. Total income of 630, per annum reflecting psf on the office space. Freehold. Significant asset management opportunities. SPV company available. Offers in the region of 8,300,000 exclusive of GST (if applicable). A purchase at this level reflects a net initial yield of 7.5% assuming purchasers costs of 1.5%.

3 St John s Village B35 B64 St Ouen s Village B53 St Mary s Village B40 A10 A9 A9 A8 Trinity Carrefour Selous A8 A12 B30 A11 A6 St Martin St Peter s Village B30 Jersey Airport A9 A10 B28 A12 A11 A6 B35 B36 St Brelade A13 St Aubin A1 A1 ST HELIER A9 A8 A7 A1 A6 St Saviour A3 A3 Gorey A3 A4 A4 A5 St Clements A5 LOCATION A4 Jersey is the largest of the four Channel Islands covering an area of approximately 45 square miles, lying 160km (100 miles) south off the coast of England and 20km (14 miles) west off the coast of France. The Island is served by regular sea and air links to both the United Kingdom and continental Europe with regular air services provided to London Gatwick, London City, Southampton, Birmingham, Manchester, Paris and Geneva, together with a fast ferry service and daily sailings to Weymouth, Poole and St Malo. Jersey is a crown dependency, it is not part of the UK nor is it a colony, but it does owe its allegiance to the British Crown and the UK is responsible for Jersey s defence and international representation. Jersey is not represented in the UK parliament, however, has its own government called the States of Jersey, members of which are elected by the population. St Helier is the Island s capital and the commercial and retail centre of the Island.

4 JTC Jersey Financial Services Commission Capita Fiduciary Group Ltd Phase 1 Jersey International Finance Centre BNP Paribas UBS AG Ernst & Young LLP KPMG PwC CI LLP Citibank Ogier Intertrust Carey Olsen SIR WALTER HSBC Royal Bank of Canada

5 LOCAL ECONOMY Jersey is a thriving island and a renowned financial centre with a strong and prosperous economy. Financial services dominate the economy employing more than 28% of the population and contributing over 40% of gross value added (GVA). As a result there are approximately 29 banks from the UK, Europe, North America, Switzerland, Asia and Africa based in the Island. Total bank deposits on the island are estimated at 114 billion, with the total value of funds under investment management standing at 260 billion, a new record. Activity in Jersey contributes around 5 billion to the UK in tax revenue, and helps facilitate 0.5 trillion of foreign investment into the UK and almost 200 billion in the rest of the EU each year. Jersey s finance industry has received endorsements from authorities including the OECD, IMF, World Bank and MONEYVAL. The jurisdiction has signed up to all cooperation and information sharing mechanisms, including BEPS and the Common Reporting Standard. The Jersey Financial Services Commission is responsible for the regulation, supervision and, within its legal remit, the development of the financial services industry on the island. More information can be found at their website,

6 ST AUBIN S RD A2 VICTORIA AVE PEOPLE S PARK ST AUBIN S RD CHEAPSIDE ELIZABETH PLACE THE PARADE PARADE GARDENS A1 ESPLANADE LES JARDINS DE LA MER GLOUCESTER STREET SEATON PLACE YORK STR ET UNION ST ESPLANADE A1 ESPLANADE Jersey International Finance Centre Bus Station ESPLANADE Liberty Wharf Shopping Centre A1 ESPLANADE WATERFRONT GARDENS WEIGHBRIDGE PL SITUATION The property occupies a prominent landmark position at the western end of the Esplanade, the prime office address in St Helier, overlooking the Esplanade and Waterfront beyond. Nearby occupiers include Citibank, BNP Paribas, UBS, Royal Bank of Canada, Ned Bank, Lloyds Bank, HSBC, Ogiers, Carey Olsen PWC, KPMG, Capita and Brevan Howard. The property is conveniently located a short walk from the Waterfront, the Liberty Wharf shopping centre, Liberation Station and opposite the new Jersey International Finance Centre ( JIFC ), where phase one is complete and phase two is currently under construction. The JIFC will ultimately comprise 6 high quality office Buildings and will consolidate the area around the subject property as the prime office location, including a high quality public realm.

7 DESCRIPTION The property comprises a granite faced, five storey (plus basement car parking) office block capable of single or multiple occupation. Internally the property benefits from the following: Modern entrance lobby and communal areas 13 person, passenger lift serving all floors Full access raised floors Suspended ceilings with recessed lighting Air Conditioning Male and female WCs on all floors Excellent natural light The ground and first floors of the property have recently been refurbished to a very high standard, including new air conditioning. The premises benefit from 23 secure underground parking spaces, providing a town centre parking ratio of 1:914 sq ft. One of the spaces is currently used for bicycle storage. TYPICAL FLOOR PLAN (SECOND FLOOR) RISER RISER WC WC WC TEA POINT WC

8 TENANCY SCHEDULE Floor Tenant Use Area Prescribed in Lease, Sq Ft Lease Start (Rent Review) Ground Touchstone (CI) Limited Office 4,487 04/07/2016 (04/07/2019) (04/07/2022) 1st Floor Aberdeen Asset Management Ltd Office 4,540 10/02/2014 (10/02/2017) 2nd Floor Capco Trust Jersey Ltd Office 4,611 27/07/2011 (27/07/2017) Part 3rd Floor CVC Capital Partners Jersey Ltd Office 2,500 05/01/2018 (05/01/2021) Lease Expiry (Break) Rent p.a. Rent psf Notes 03/07/ ,022 Office rent - 123,228 ( 28psf) Stores (71 sq 14psf) Car Spaces - 2,600 per space 09/02/2023 (10/02/2020) 132,580 Office rent - 122,580 ( 27psf) Car Spaces - 2,500 per space 26/07/ ,297 Office rent - 124,497 ( 27psf) Car Spaces - 2,600 per space 04/01/2027 (04/01/2024) 84,500 Office rent - 72,500 ( 29 psf) Car Spaces - 3,000 per space SC Cap currently 26, increased annually JRPI. Guarantor - Aberdeen Private Wealth Management Ltd. SC Cap with RPI increases, currently 17, SC Cap with RPI increases, currently 17, Schedule of condition. SC Cap with RPI increases, currently 9, Schedule of condition. 5 months rent free from 25/03/2018. Part 3rd Floor Jersey Finance Limited Office 1,506 06/01/ /07/ ,662 Office Rent - 40,662 ( 27 psf) SC Cap with RPI increases, currently 5, no shortfall. CVC have ROFR if Jersey Finance don t renew. Schedule of condition. 4th Floor Jersey Finance Limited Office 3,369 27/07/2011 (27/07/2017) 26/07/ , Office rent - 84,780 ( 27psf) Restricted headroom (229 sq psf) Car Spaces - 2,600 per space SC Cap with RPI increases, currently 12, no shortfall. Schedule of condition. Basement Vacant Car Parking 1 Space 18 Basement Geoffrey Grime Car Parking 1 2,600 Space 2 Let on rolling licence. Basement Capco Car Parking 1 2,600 Space 22 let on rolling licence. Basement Capco Car Parking 1 2,600 Space 17 let on rolling licence. Basement Communal Bike Rack - Car Parking 1 2,600 Space 23 paid by SC 21, ,732.50

9 TENURE SIR WALTER The property is held Freehold. COVENANT INFORMATION ABERDEEN PRIVATE WEALTH MANAGEMENT LTD Specialist private wealth division of Aberdeen Asset Management Plc., who currently manage over 304 billion worldwide. CAPCO JERSEY TRUST LTD Offshore independent trust company providing wealth management / commercial solutions for private / corporate clients. CVC CAPITAL PARTNERS JERSEY LTD Private equity / investment advisory firm employing 420 people across Europe, Asia and the US, providing trust company business services to CVC group companies funds. ww.cvc.com JERSEY FINANCE LTD Not for profit-making organization founded in 2001 to represent and promote Jersey as an international finance centre of excellence, it is funded by members of the local finance industry and the States of Jersey Government. TOUCHSTONE (CI) LIMITED Design and delivery of software and associated consultancy services for the specific needs of the wealth management industry. The company is part of Touchstone Group Plc. FURTHER INFORMATION AVAILABLE UPON REQUEST.

10 MARKET COMMENTARY The total office stock in St Helier is approximately 3.2 million sq ft. and over the past few years there has been considerable development activity, with over 300,000 sq ft being constructed, the majority of which was pre-let. This development activity has coincided with strong take up over the past few years, as large corporates who had to occupy substandard office accommodation or occupy multiple sites in St Helier, have relocated to the modern Grade A buildings. Due to take up prime headline rents have shown steady growth and are now in the region of 36 psf for lettings in excess of 10,000 sq ft and over 40 psf for smaller suites. As occupiers have migrated towards the Esplanade, buildings in secondary locations are, in a number of cases, being redeveloped to residential. 40 YEAR TO SEPTEMBER Take up as a percentage of total stock 35 St Helier Birmingham Bristol Manchester PRIME RENTS LEEDS LIVERPOOL JERSEY Prime Rents ( per sq ft) BRISTOL 15 SOURCE: D2 Real Estate and BNP Paribas 10 SOURCE: BNP Paribas Real Estate / Note: 2017* = as of end September % 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% *

11 MARKET COMMENTARY The lack of Grade A supply allied with significant take up means the property is well placed to benefit from further rental growth. Recent lettings include: PRIME RENTAL TRANSACTIONS: DATE PROPERTY AREA TENANT LEASE TERM RENT PSF COMMENTS Jan-18 Sir Walter Raleigh House, Esplanade 2,500 sq ft CVC Capital 9 years 29 psf and 3000 per car space Regear May-17 International Finance Centre, Esplanade 3,272 sq ft Family Office 15 years 40 psf and 3500 per car space Aug-17 International Finance Centre, Esplanade 3,541 sq ft ED Capital 15 years 40 psf and 3500 per car space New Lease New Lease Nov-17 Windward House, Castle Street 5,000 sq ft Quilter Cheviot 6 years 9 months 29 psf and 3000 per car space Sublease Dec-16 International Finance Centre, Esplanade 32,000 sq ft Sanne 15 years 36 psf and 3000 per car space Pre-let CHANNEL ISLAND INVESTMENT TRANSACTIONS: The office investment market in St Helier shares similar fundamentals to the more established UK prime regional markets. Investors are attracted to the jurisdiction by a number of key characteristics including; established covenants, long leases, a stable economy and solid rental growth prospects. Recent investment transactions include: DATE ADDRESS PRICE YIELD COMMENTS Dec Esplanade, Jersey 45m 6.65% WAULT 10.8 years to break Sep-17 Royal Chambers, Guernsey 47m 6.75% WAULT 13.8 years to break Mar Esplanade, Jersey 11.9m 6.60% Let to Citibank & Aztec, breaks in 12 & 7.5 years Sep-16 Windward and Liberation House, Jersey 34m 7.50% WAULT 8 years to break Jul Esplanade, Jersey 10.75m 6.80% Single Let, 13 years to break ASSET MANAGEMENT Offers scope to drive returns through: 1. Regearing leases. 2. Agreeing Outstanding rent reviews. 3. Excellent rental growth prospects at future reviews.

12 VAT Value Added Tax is not levied in Jersey. Good and Services Tax (GST) may be applicable. All figures quoted in this brochure are exclusive of GST and we would recommend that prospective purchasers make their own enquiries in this regard. PROPOSAL Offers invited in excess of 8,300,000, which reflects a net initial yield of 7.5%, allowing for purchasers costs at 1.5%. FURTHER INFORMATION Viewing strictly by appointment with the vendor s agents. For further information please contact: PHIL DAWES Telephone: phil.dawes@d2re.co.uk NICK TROWER Telephone: nick.trower@d2re.co.uk HUGH WHITE Telephone: hugh.white@realestate.bnpparibas WILL OLIVER Telephone: william.oliver@realestate.bnpparibas Misrepresentation Act 1967: D2RE and BNP Paribas Real Estate Advisory & Property Management UK Limited for themselves and for the vendor(s) or lessor(s) of this property whose agents they are, give notice that: 1. these particulars do not constitute, nor constitute any part of, an offer or contract. 2. None of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact. 3. Any intending purchaser or lessee must satisfy himself by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 4. The vendor(s) or lessor(s) do not make or give and neither D2RE nor BNP Paribas Real Estate Advisory & Property Management UK Limited nor any person in their employment has any authority to make or give any representation or warranty whatever in relation to this property. Finance Act 2013: Unless otherwise stated all prices and rents are quote exclusive of VAT. The Business Protection from Misleading Marketing Regulations 2008: These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. January Designed and produced by Creativeworld Tel: