17-19 COCKSPUR STREET

Transcription

1 17-19 COCKSPUR STREET LONDON SW1 PRIME WEST END INVESTMENT AND REFURBISHMENT OPPORTUNITY WITH OFFICE AND RESIDENTIAL CONSENT ON 2ND TO A NEW 7TH FLOOR

2 INVESTMENT SUMMARY Freehold totaling 18,864 sq ft GIA with consent for an additional 1,179 sq ft (20,043 sq ft) GIA Ground and part basement retail let to The Original London Sightseeing Tour Limited at 247,000 pa until 20th May 2022 First floor and part basement let to Tourism Authority of Thailand at 147,500 pa until 24th March 2018 Second to sixth floors currently vacant offices with consent for a new seventh floor providing an GIA of 11,883 sq ft Planning and Listed building consent obtained for both residential and office use Located in a vastly improving and vibrant central London location Excellent Owner Occupation opportunity An offer is sought of 25,000,000 (Twenty Five Million Pounds), subject to contract. A purchase at this level reflects a capital value of 1,247 per sq ft on the consented GIA COCKSPUR STREET, LONDON SW1 2

3 LOCATION The property is located just to the west of Trafalgar Square, the heart of central London, uniting the exclusive and prestigious area of St James s with the creative and stimulating areas of Soho and Covent Garden. As a consequence, the property profits from the plethora of restaurants, theatres, hotels, clubs, galleries, museums and residential homes that are on its doorstep. Cockspur Street has become a sought after location for both office and retail/restaurant occupiers looking to benefit from the amenities the area affords. Not only is the area synonymous with the retail and leisure industry, it is home to some of the world s leading office occupiers including BP, Anglo American, McKinsey & Co, KKR, Rio Tinto and Global Radio. In addition to the Institute of Directors, there are also prominent representative offices from Canada, New Zealand, South Africa, Brazil, Kazakhstan, The Philippines and Uganda in the immediate area. COMMUNICATIONS The property is served by numerous public transport interchanges being situated close to four main underground stations - Charing Cross (Bakerloo and Northern lines), Piccadilly Circus (Bakerloo and Piccadilly lines), Leicester Square (Northern and Piccadilly lines) and Green Park (Jubilee, Piccadilly and Victoria lines). Multiple bus routes serve the immediate area, whilst mainline railway access is available from Charing Cross Station. Gatwick, Heathrow and London City airports are all easily accessible via the public transport network. CONDUIT ST GREEN PARK GREEN PARK SAVILE ROW MAYFAIR BUCKINGHAM PALACE REGENT STREET OLD BOND ST OXFORD CIRCUS ST. JAMES'S STREET OXFORD STREET PICCADILLY JERMYN STREET KING ST ST JAMES S PALACE WARDOUR STREET BREWER ST PICCADILLY CIRCUS ST JAMES'S SQUARE THE MALL REGENT ST PALL MALL DEAN STREET SOHO ST. JAMES S ST. JAMES'S PARK BIRDCAGE WALK ST. JAMES'S PARK SOHO FRITH ST SQ S HAFTESBURY AVE HAYMARKET GREEK ST WHITCOMB ST CHARING CROSS ROAD LEICESTER SQUARE LEICESTER SQUARE TRAFALGAR SQUARE COCKSPUR ST HORSE GUARDS ROAD VICTORIA STREET ST MARTINS LANE CHARING CROSS WESTMINSTER ABBEY WHITEHALL LONG ACRE COVENT GARDEN WESTMINSTER STRAND NORTHUMBERLAND AVE HOUSES OF PARLIAMENT VICTORIA EMBANKMENT KINGSWAY COVENT GARDEN EMBANKMENT RIVER THAMES WESTMINSTER BRIDGE ALDWYCH VICTORIA EMBANKMENT WATERLOO BRIDGE LAMBETH PALACE RD WATERLOO COCKSPUR STREET, LONDON SW1 3

4 17-19 COCKSPUR STREET, LONDON SW1 4

5 BUCKINGHAM PALACE THE MALL GREEN PARK ST JAMES S SQUARE PICCADILLY CIRCUS HORSE GUARDS PARADE ST JAMES S PARK ADMIRALTY ARCH TRAFALGAR SQUARE COCKSPUR STREET, LONDON SW1 5

6 SITUATION The property is located on the south side of Cockspur Street close to its junction with Pall Mall and Haymarket. St James s is immediately to the west and Trafalgar Square to the east. The immediate area will benefit from a number of new developments which will transform this part of London: St James s Market - the 340,000 sq ft mixed use development by The Crown Estate and Oxford Properties has been completed this year, together with proposed public realm improvements to Haymarket. LSQ London a 113,000 sq ft recently completed mixed use development on the western side of Leicester Square The Trocadero Centre a new 583-room, Ibis budget hotel with two flagship retail stores by Criterion Capital with completion due in Leicester Square Hotel, 40 Leicester Square a new 360-room hotel and cinema complex being developed by The Edwardian Group with completion in early ST JAMES S St James s is undergoing a transformation. A number of recently completed and upcoming developments have further established St James s position as a prime office market, bringing the area into the 21st Century whilst retaining its unique and elegant heritage. The Crown Estate s portfolio within St James s covers nearly four million sq ft, accounting for approximately 50% of the freehold buildings. The Estate is in the process of an extensive investment and development programme. Over the next 10 years over 500 million will be invested further enhancing and promoting the location as a world class office, retail and residential destination COCKSPUR STREET, LONDON SW1 6

7 DESCRIPTION The property comprises a striking Edwardian building with frontages to both Cockspur Street and Warwick House Street. It was built in for The Canadian National Railway Company by Sir Aston Webb, a prestigious English Architect whose most famous works in London included the redesign of the main facade to Buckingham Palace in 1913 and Admiralty Arch in It is Grade II Listed. It currently provides office accommodation over first to sixth floors with retail beneath. The office accommodation is accessed from Cockspur Street through a ground floor reception area with a staircase and an 8 person passenger lift serving all floors. The second to sixth floor offices have recently been vacated. The first floor offices are let as are the ground and basement retail premises COCKSPUR STREET, LONDON SW1 7

8 TENURE The property is available freehold. EMBASSY OF BRAZIL Experian Goad Plan Created: 04/11/2016 Created By: BC Retail COCKSPUR STREET, LONDON SW1 8

9 ACCOMMODATION AND TENANCIES The property is let to two tenants occupying the basement, ground and first floors and produces a total income of 394,500 per annum. The second to sixth floors have recently been vacated and, together with the consented seventh floor, provide the following approximate net internal and gross internal areas: Name Description Existing Existing Consented Consented Term From Reviews Expiry Next NIA NIA GIA GIA NIA NIA GIA GIA RR (sq m) (sq ft) (sq m) (sq ft) (sq m) (sq ft) (sq m) (sq ft) The Original London Sightseeing Tour Ltd 1 Tourism Authority of Thailand 3 Basement - retail Ground - retail 1st floor - offices Basement - store 122 1, , , , years 150 1, , , ,131 Typical floor plan 180 1, , , , years 97 1, , , ,378 Landlord Basement store Landlord Ground entrance Sub Total 566 6, , , ,159 Refurbishment Vacant 2nd floor , , , ,336 offices Vacant 4 3rd floor , , , ,422 offices Vacant 4th floor , , , ,207 offices Vacant 5th floor , , , ,099 offices Vacant 6th floor , , , ,668 offices Vacant 7th floor ,152 offices Sub Total 2nd - 7th floors 776 8, , ,752 1,104 11, May 07 5 years 25 Mar 08 5 years Rent pa Rent psf Comments 20 May May , RPI rent reviews every 5 years 2. Inside Act. 24 Mar , Discussions on new lease. Outside Act. Notes: 1 Surety is Arriva Plc. 2 Anticipated rent from May 2017 based on RPI is 270,000 pa. 3 Rent includes requirement to provide 2 parking spaces in Westminster Underground Car Park to rear. 4 Occupied under a temporary license on 2 months notice of possession. Total 1,342 14,445 1, ,864 1,470 15,845 1,862 20, , COCKSPUR STREET, LONDON SW1 9

10 Ground floor plan Second floor plan COCKSPUR STREET, LONDON SW1 10

11 COVENANT INFORMATION The Original London Sightseeing Tour Ltd (Tenant) Arriva Plc (Surety) With a history dating back to the early 1900s, The Original London Sightseeing Tour was the first sightseeing tour of its kind. It was formally introduced by London Transport for the Festival of Britain in 1951 with its hop-on hop-of service being introduced in For the year ending December 2015, the company reported a pre tax profit of 2.37 million based on a turnover of 19.1 million. In April 2001 London Pride Ltd was acquired and merged with The Original London Sightseeing Tour, creating the largest single operation of its kind anywhere in the world. In December 1997, The Original London Sightseeing Tour Ltd was taken over by Arriva plc, one of Europe s largest public transport providers. In turn Arriva plc, became part of Deutsche Bahn GmbH, with The Original Tour joining its subsidiary DB UK Holding Limited in August In September 2014, the company was acquired by RATP Dev, owned by RATP Group; the world s 5th largest public transportation provider. RATP Dev alone has a network of over 70 subsidiaries including several sightseeing tour operators; L Open Tour in Paris, Open Loop in New York and The Bath Bus Company which operate tours in Bath, Cardiff, Eastbourne and Windsor Tourism Authority of Thailand The Royal Thai Government established the Tourist Organisation on March 18, 1960 to be specifically responsible for the promotion and marketing of Thailand s tourism and the tourism industry. It was renamed the Tourist Organization of Thailand (TOT) in Thailand s first international tourist office under the TOT banner opened in New York in 1965 and first domestic office in Chiang Mai in As Thailand s tourism continued to grow and increasingly played a pivotal role as one of the country s top export earners, the government saw the need to place greater emphasis on promoting and marketing the kingdom as a tourism destination among global travellers. In 1979, the government passed a bill that brought the Tourism Authority of Thailand (TAT) into existence. Since then, the TAT has grown into a sophisticated tourism marketing organisation. Now in its 55th year with headquarters in Bangkok, 35 offices in Thailand and 27 offices overseas, the TAT has helped to make Thailand one of the world s favourite destinations for global travellers. Visitor arrivals grew from 81,000 tourists in 1960 to million in COCKSPUR STREET, LONDON SW1 11

12 DEVELOPMENT OPPORTUNITY Cockspur Street has an established use of offices on the upper floors over retail on ground and basement. The ground and basement are let until 20th May 2022 and the 1st floor is let until 18th May The 2nd floor and above are currently vacant and offers a purchaser various refurbishment or conversion options including: Undertake the existing planning consent and carry out a refurbishment on the 2nd to 6th floors and add a new consented 7th floor to provide Grade A offices to capture the strong office demand and rental growth in the West End. Implement the alternative existing planning consent for a conversion to residential apartments at 3rd floor level and above including a new consented 7th floor. Planning consent was granted on the 6th October 2015 to convert the existing offices on 3rd to 6th floors with extensions and create a new 7th floor into four residential apartments. 3 x 3 bed and 1 x 4 bed (ref: 13/07903/FULL). Planning consent was granted on 8th February 2016 for alterations at 5th and 6th floors with a new 7th floor and formation of a terrace and roof plant. (ref: 15/11374/ FULL) COCKSPUR STREET, LONDON SW1 12

13 MARKET UPDATE INVESTMENT There is significant demand for commercial property in London with high levels of liquidity and transparency attracting both domestic and international investors. A lack of quality assets in core locations has led to investors seeking increasingly diverse holdings and asset management opportunities. Tight supply constraints in the occupational market have stimulated increasing development activity seeking to capture projected positive rental growth. The historic delineation of London s sub-markets is being eroded with occupiers and investors being increasingly footloose. The West End prime yield is currently 3.75% and at over 7.4 bn, investment turnover in the West End in 2015 was 52% above the long term annual average and the highest on record has seen a slow down in turnover as this level of activity was unsustainable, but demand continues to outstrip supply of opportunities. OCCUPATIONAL The vacancy rate in the West End is 3.4% which is the lowest level for 25 years. A lack of Grade A office accommodation throughout central London has led to significant rental growth across all sub-markets. Prime West End rents have risen from per sq ft in 2013 to over 115 per sq ft today. The whole of Central London is benefitting with previous sub-market rental ceilings being met and surpassed. The increase in occupier demand has been driven by employment growth throughout the business and services sectors although an increasingly significant area is the TMT and creative sectors together with owner occupiers taking advantage of historically low finance rates. The capital continues to drive the UK economy and record levels of employment and new business formation has led to net absorption outstripping new supply. Economic forecasters expect London employment levels to continue to increase well into COCKSPUR STREET, LONDON SW1 13

14 17-19 COCKSPUR STREET LONDON SW1 VAT The building is not elected for VAT. PROPOSAL We are instructed to seek an offer of 25,000,000 (Twenty Five Million Pounds) subject to contract. A purchase of this level reflects a capital value of 1,247 per sq ft based on the consented GIA of 20,043 sq ft. FURTHER INFORMATION Further information is available at This includes: Copy leases on basement, ground and first floors Existing Floor Plans Heritage Statement Dec 2015 Residential Consent and Plans Oct 2025 Office Consent and Plans Feb 2016 Office Proposals Nov 2016 Should you wish to access the data room or inspect the property please contact: Peter Trinder e: ptrinder@hanovergreen.co.uk t: m: Simon Hall e: shall@hanovergreen.co.uk t: m: Chris Shepheard-Walwyn e: cswalwyn@hanovergreen.co.uk t: m: Hanover Green for themselves and for the vendors of this property for whom they act, give notice that: 1. These particulars are prepared only for the guidance of prospective purchasers. They are intended to give a fair overall description of the property but do not constitute the whole or any part of an offer or contract. Hanover Green undertakes to comply with the terms of the Property Misdescriptions Act 1991 but prospective purchasers must satisfy themselves as to the accuracy of the contents of these particulars, and Hanover Green will not be liable in negligence for any loss arising from the use of these particulars; 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but Hanover Green cannot guarantee the accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation or any other details contained herein, nor should any information contained herein be relied upon as a statement or representation of fact; 3. Rents quoted in these particulars may be subject to VAT in addition; 4. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise, and reference to any plant, machinery, equipment, services, fixtures or fittings at the property shall not constitute a representation as to its state or condition or that it is capable of fulfilling its intended function. Prospective purchasers should satisfy themselves as to the fitness of such items for their requirements; 5. The photographs appearing in this brochure show only certain parts and aspects of the property. Certain aspects of the property may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. It should not be assumed that everything shown in the photographs is included in the sale of the property. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs; 6. Any reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser; and 7. No employee of Hanover Green has any authority to make or give any representation or warranty whatsoever in relation to the property. November