FOR SALE - OFFICE AND RETAIL BUILDING OF INTEREST TO INVESTORS, DEVELOPERS & OWNER OCCUPIERS 98,684 FT² (9,168 M²) GIA

Transcription

1 69 89 MILE END ROAD, WHITECHAPEL, LONDON E1 FOR SALE - OFFICE AND RETAIL BUILDING OF INTEREST TO INVESTORS, DEVELOPERS & OWNER OCCUPIERS 98,684 FT² (9,168 M²) GIA

2 KEY INVESTMENT CHARACTERISTICS _ Dept. W is a mixed use iconic building consisting of office and retail. It is situated in the heart of Whitechapel, comprising 98,684 ft² (9,168 m²) GIA arranged over basement, ground and three upper floors. _ Dept. W is a 1920 s art deco building, which formerly housed the famous Wickhams department store. _ Located 200 yards east of Whitechapel s proposed Elizabeth Line station. Occupiers include Tesco, Sports Direct, Central Working, Foxcroft & Ginger and KANO Computing. _ The property is held by way of 4 Freehold and 6 Long Leasehold Interests. _ The site covers an area of 0.65 acres. _ Planning consent has been granted as of 31st March 2016 for a Buckley Gray Yeoman Architects designed scheme to improve the existing 1st and 2nd floor office accommodation and replace the existing 3rd floor with a new two storey extension. A new central core would serve the upper floors accessed from a new main entrance fronting Mile End Road. _ Current passing rent of 747, per annum. _ Vacant possession of the 1st to 3rd floors can be provided by February _ The planning permission extends the existing building to 127,775 ft² (11,871 m²) gross external area and 97,553 ft² (9,063 m²) net internal area of B1 on 1st to 4th floor with retail and leisure use (use class A1/A2/A3/A4/B1/D1/D2) on ground and lower ground. _ Offers in excess of 38,500,000, representing ft² on the existing gross internal area. 01 DEPT. W

3 02

4 Royal London Hospital Whitechapel Station Cambridge Heath Rd Elizabeth Line Entrance 03 DEPT. W

5 A RICH BUILDING HISTORY This iconic property was for the early part of the 20th Century occupied primarily by Wickhams Department Store, heralded as the Harrods of the East End. The building was designed to upstage Selfridges department store on Oxford Street, having a grand neo-classical colonnaded front but with a central tower and clock that Selfridges did not have. Mr Wickham s store was a grand and glorious East End emporium heralded as the Harrods of the East End. His highly respected store was a celebrated part of the community for over 40 years. At the time that Mr Wickham was putting together his first design plan, a certain Mr Spiegelhalter had a thriving jewellery business along that particular stretch of the Mile End Rd. It s not known why, but the jeweller, having initially agreed to re-locate, had a change of heart. The story goes that Mr Spiegelhalter was made an offer of having the floor covered with sovereigns to move out. His response was, only if they are stood on edge. He then wasn t in the mood to move until 1982 and the front of his shop still stands defiantly proud in the middle of the grand colonnade. 04

6 LOCATION Dept. W is located approximately 5 minutes walk east of the proposed Whitechapel Elizabeth Line station and approximately 7 minutes walk west of Stepney Green station. It s situated in a prominent position on the north side of Mile End Road at its junction with Cleveland Way. This iconic building is located three miles to the east of the City of London within Tower Hamlets with a substantial frontage onto Mile End Road, which links East London and the City. The surrounding area is due to dramatically change with the opening of the Elizabeth Line in Further, Tower Hamlets recent consultation paper proposes c. 900M of redevelopment in the area over the next 15 years to revitalise Whitechapel Road with new offices, shops and homes funded by a mix of grants and private finance. Whitechapel Vision to provide: _ Elizabeth Line to open in _ 3,500 new homes by _ 5,000 new jobs. Civic redevelopment of the Old Royal London Hospital. Transforming Whitechapel Road into a destination shopping area for London. Creating 7 new public squares and open spaces. Creating a world class Life Science Campus at Queen Mary University London. 05 DEPT. W

7 06

8 LOCATION The area is undergoing a dramatic transformation and along with the excellent travel links has attracted occupiers from a wide range of sectors. Bethnal Green Road Bethnal Green Cambridge Heath Road Sceptre Road obe Road The property is seven minutes walk to the west to the current Whitechapel station entrance (East London, District and Hammersmith & City lines) and Stepney Green station (District and Hammersmith & City lines). Bethnal Green station (Central line) to the north is less than a 10 minute walk away. The new Elizabeth Line station will connect Whitechapel to Canary Wharf and Heathrow via Central London. Amenities Winks Hotel 02 Genesis Cinema 03 Chicken Shop 04 Dirty Burger 05 CrossFit London Transport lines London Underground London Overground Elizabeth Line National Rail 06 Currys PC World 07 Halfords 08 Mile End Retail Park 09 Sainsbury s Central District Hammersmith & City Weavers Fields Durward Street Bethnal Green Brady Street Royal London Hospital Wilmot Street Corfield Street Three Colts Lane Cudworth Street 09 Whitechapel Barnsley Street Collingwood Street Cavell Street St Bartholmew Gardens Headlam Street Darling Row Elizabeth Line Raven Row Cambridge Heath Road Sidney Street Bethnal Green Gardens Malcolm Place Adelina Grove Cephas Street Lindley Street Cleveland Way Edward Passage Road Hadleigh Street Mantus Road Coopers Close Redmans Road Colebert Avenue Bancroft Road Smithy Street Cephas Street Hannibal Road Jamaica Street Cephas Avenue Globe Road Massingham Street Stepney Green Stepney Green Stepney Green Whitechapel Road Mile End Road Stepney Green Park 07 DEPT. W

9 ELIZABETH LINE As the City moves east, Whitechapel is set to become one of the most connected places in the capital by public transport, with a significant rail and tube interchange at Whitechapel station. The Elizabeth Line will run 118 km from Maidenhead and Heathrow in the west, through new twin-bore 21km tunnels under central London to Shenfield and Abbey Wood in the east. It will bring an additional 1.5 million people within 45 minutes commuting distance of London s key business districts. Around 200 million passengers will travel on the Elizabeth Line each year and the route will provide a 10% increase to rail capacity in the capital. The new Whitechapel Elizabeth Line station will use the existing Whitechapel Road entrance to the London Underground and London Overground station, with a new separate entrance onto Cambridge Heath Road providing access to all lines and within a 5 minutes walk (350 yards) of Dept W. The Elizabeth Line platforms will be in deep tunnels to the north of the existing station but they will all share a concourse, ticket hall, gateline and station operations room, leading to a fully integrated station that provides an easy step-free interchange between the Elizabeth Line, Hammersmith and City, District and Overground lines. Reading 63 mins Slough 41 mins Heathrow 38 mins Paddington 13 mins Bond Street 10 mins Tottenham Court Road 7 mins Top: New over-station development from Durward Street. Above left: New concourse. Above right: New secondary Elizabeth Line entrance at Cambridge Heath Road. Farringdon 5 mins Liverpool Street 2 mins WHITECHAPEL Stratford 5 mins Canary Wharf 3 mins Elizabeth Line times from Whitechapel (in mins) 03 CANARY WHARF 05 STRATFORD 07 CITY AIRPORT 10 BOND STREET 38 HEATHROW AIRPORT 08

10 WHITECHAPEL DEVELOPMENT Whitechapel has a rich history often characterised by extremes of social conditions in the times of Victorian London. 5,000 NEW JOBS Notoriety Whitechapel was at the centre of national attention during the tragic murders committed by Jack the Ripper, the Siege of Sidney Street by Winston Churchill and the Second World War bombing of the East End. Within a short walk of Dept. W is the notorious The Blind Beggar pub where Reggie Kray stabbed to death Jack The Hat McVitie. Royal London Hospital Opposite Whitechapel station is the Grade II listed old Royal London Hospital site which was originally opened in 1757 and is now dwarfed by the 1bn world class hospital facility that replaced it in The old building was recently purchased by Tower Hamlets Council to be the new town hall. The site received planning in November 2015 for a 77M makeover by AHMM architects and is due to be open in The new Town Hall will be the central part of the Whitechapel Masterplan designed to manage the regeneration and redevelopment around Whitechapel Road and Cambridge Heath Road over the next 10 to 15 years. The Civic Hub regeneration of the old Royal London Hospital building which will house a new 21st Century town hall will be set around a new high quality Civic Square to encourage complementary community and commercial uses including a media hub, retail and restaurants. 09 DEPT. W

11 3,500 NEW HOMES BY 2025 Life Science Campus To the rear of the site is a proposed new life science campus to support health, bio tech and life sciences research. The Whitechapel Vision aims to deliver over 3,500 new homes by 2025, generate 5,000 new jobs, create 7 new public squares and a world class Life Science Campus at Queen Mary University London which operates 5 campuses centred around Whitechapel and has over 17,500 students. 07 NEW PUBLIC SPACES The new Elizabeth Line entrance on Cambridge Heath Road will sit adjacent to the Sainsbury s Superstore which within the Whitechapel Vision will be re-developed to provide a larger store with new residential and community facilities. Culture Dept. W sits adjacent to the Genesis Cinema complex which has been used for entertainment purposes since the mid 19th century. Charlie Chaplin and Laurel & Hardy are both known to have performed here. At 109 Mile End Road is one of Conde Nast s boutique hotels of the year, 40 Winks ( The hotel is a particular favourite for fashion folk and artists and hosts many fashion shoots. 10

12 EXISTING BUILDING Dept. W occupies a site totalling c.0.65 acre constructed over basement, ground and three upper floors, extending to a gross internal area of c. 98,684 ft 2 (9,168 m 2 ) arranged as: Existing Floor Areas Floor Use Area m² ft² 3 3rd Offices GIA ,130 2nd Leisure and Assembly GIA 1, , st Offices GIA 2, ,275 Ground Retail, Office and Café GIA 2, ,940 1 Basement Retail or Storage GIA 2, ,942 Total 9, ,684 G *Net Internal areas for the Part Ground, First & Third Floors available upon request. B 11 DEPT. W

13 Mile End Road LIFT Mile End Road OPEN VOID LIFT WC FROM PHASE 1 WORKS LIFT DISUSED Mile End Road Mile End Road EXISTING FLOOR PLANS Basement Retail / Storage 22,942 ft² / 2,131.4 m² (GIA) Ground Floor Retail / Office / Café 24,940 ft² / 2,317.0 m² (GIA) 1st Floor Office 22,275 ft² / 2,069.4 m² (GIA) 2nd Floor Leisure and Assembly 19,397 ft² / 1,802.0 m² (GIA) 3rd Floor Office 9,130 ft² / m² (GIA) O P E N V O I D O P E N V O I D Mile End Road H O A R D I N G Usable Space Reception Core Floor plans not to scale, for indicative purposes only. 12

14 13 DEPT. W

15 14

16 DEVELOPMENT POTENTIAL The planning permission dated 31st March 2016 proposes a comprehensive refurbishment, change of use and extension of the former department store to provide a co-working office hub for startups and SMEs with ground floor and basement retail and commercial uses. _ The front elevation of the former department store would be refurbished with new shopfronts installed, together with modern awnings. _ The existing 3rd floor mansard extension would be removed. _ A new modern two storey roof extension erected at 3rd and 4th floor levels. _ A new central core would serve the upper floors accessed from a new main entrance/reception from Mile End Road. _ Make good and repair all existing ground floor stonework, original windows etc Building Arrangement 4th B1 Office 1 3rd 2nd B1 Office B1 Office G 1st B1 Office Ground Basement A1 4 Retail + B1 Office Flexible A1/A3 + B1 Office + D1/D2 B 15 DEPT. W

17 16

18 17 DEPT. W CGI for guidance purposes only. Not a statement of fact.

19 DEVELOPMENT POTENTIAL Planning permission was granted in March 2016 for the comprehensive refurbishment, change of use to the second floor and extension of Mile End Road to provide 127,775 ft² (11,871 m²) Gross External Area and 97,553 ft² (9,063 m²) Net Internal Area of B1 accommodation on 1st to 4th floors, with A1, B1, café and gym accommodation on ground and lower ground floors. The Buckley Gray Yeoman designed scheme will provide the following accommodation: Gross External Areas Floor Use m² ft² 4th Offices ,398 3rd Offices 1,523 16,393 2nd Offices 1,988 21,397 1st Offices 2,331 25,090 Ground Retail, Office and Café 2,499 26,899 Basement Retail and Leisure 2,564 27,598 Total 11, ,775 Net Internal Areas Floor Use m² ft² 4th Offices 910 7,696 3rd Offices 1,444 12,992 2nd Offices 1,885 17,491 1st Offices 2,229 20,893 Ground Retail, Office and Café 2,387 17,190 Basement Retail and Leisure 2,443 21,291 Total 9,063 97,553 18

20 PROPOSED FLOOR PLANS Basement Retail/Leisure 21,291 ft² / 2,443 m² (NIA) Ground Floor Retail / Office / Café 17,190 ft² / 2,387 m² (NIA) 1st Floor Office 20,893 ft² / 2,229 m² (NIA) UNIT A UNIT B Mile End Road Mile End Road UNIT C Mile End Road UNIT D Usable space Reception Core 19 DEPT. W

21 Mile End Road Mile End Road Mile End Road 2nd Floor Offices 17,491 ft² / 1,885 m² (NIA) 3rd Floor Offices 12,992 ft² / 1,444 m² (NIA) 4th Floor Offices 7,696 ft² / 910 m² (NIA) Floor plans not to scale, for indicative purposes only. 20

22 TENANCY SCHEDULE Floor Planning Use m 2 Approx ft² Approx Tenant Current Rent Lease Term Comments 3rd B ,130 Wellarm Services Ltd 60, nd D2 1, ,397 Castigliane Commercial Ltd 188, years to expire on 10/02/17 with landlord s rolling 6 month break. 3 years to expire on 04/12/16 with mutual rolling 6 month break. 1st B1 2, ,275 City Lounge Ventures Ltd 246, years to expire 27/02/17 Ground A ,512 Tesco Stores Ltd 83, years to expire 16/07/25 Next review due 17th July Review is based on cap and collar of 1% and 4%. Ground A ,336 Sportsdirect.com Retail Ltd 90, years to expire 14/09/21 Next review due 15th Sept Ground A ,099 Dept. W Ltd 25, Ground B ,196 Kano Computing Ltd 55, Basement D2 2, ,942 Vacant Total 747, years to expire 02/03/17 with Landlords break after 03/06/15 on 3 months notice. 5 years to 25/06/19 with mutual break at 3 years subject to 6 months notice. Current income plus turnover rent. * Areas stated above are approximate gross internal areas of the let accommodation. 21 DEPT. W

23 TENANT COVENANTS LG FLOOR LETTING Tesco Stores Ltd Year Ending Feb 2013 Feb 2014 Feb 2015 Turnover Bn Bn Bn Pre Tax Profit 921 M Bn Bn Total Net Worth Bn Bn M Sports Direct.Com (retail) Year Ending Apr 2013 Apr 2014 Apr 2015 Turnover Bn Bn Bn Pre Tax Profit M M M Total Net Worth M M M City Lounge Ventures (t/a Central Working) Established in May 2011, Central Working provides invaluable tools to help small and medium enterprises to grow. They currently have four clubs which provide a collaborative environment for businesses to foster collaboration and peer development. Central Working has three sites in London, with Dept W running an escalator service in partnership with Barclays. Further information is provided at about their existing clubs in Bloomsbury, Shoreditch, Whitechapel and Deansgate, Manchester. Kano Kano is a DIY computer kit designed to help people of all ages to assemble a computer from scratch and to learn basic coding skills. In November 2013 Kano initiated a crowd funding Kickstarter campaign, which raised $1.5M in one month to help launch the mass production of the device. Foxcroft & Ginger Foxcroft & Ginger opened in Soho in January The restaurant provides an all day food and drink experience offering high quality coffee, food and alcohol. The Gym Group Heads of terms are being agreed with the Gym Group on the lower ground floor for 20,311 Ft² GIA comprising a dedicated ground floor entrance with stairs and lift leading to a basement gym space. These works have already been completed as of The accommodation is to be handed over in shell condition. The Landlord will undertake to provide the following: _ Provide fully self-contained premises including internal stairs and DDA access lift connecting ground and lower ground. _ All capped off services to the unit with utility requirements in agreed locations. _ Provision of plant area size and location to be agreed on site. Term: 20 year lease inside the L&T Act 1954 from completion. The tenant will have an option to determine the lease at the 15th anniversary. Years 1-5: Years 6-10: Years 11-15: Years 16-20: /ft² /ft² /ft² /ft² The tenant will have the benefit of 12 months rent free from commencement of the term. Rent Review pattern: The rent will be reviewed every 5th year on an upward only basis and will increase at each review by 10%. Planning: The tenant is seeking planning consent for 24 hour opening. 22

24 23 DEPT. W

25 24

26 a FURTHER INFORMATION 20 to to c 18b 68 18a Bellevue Place 1 63 to to to El Sub Sta to 16 Tenure The property is held part Freehold and part Long Leasehold under 10 separate Land Registry titles, four of which are held freehold and six long leaseholds within dates from 25/03/1670 for a term of 500 years. Further information is available on request. Current Income VAT The property has been elected for VAT purposes, however it is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC). EPC Available on request. 6 Current passing rent of 747, /A. Lodge CLEVELAND GROVE ESS 1 to 12 Hamilton Lodge to 16 Cromwell Lodge to to City Gate 107 Price Offers in excess of 38,500,000, representing 390 ft² on the existing gross internal area. 1a 69 to to to 20 Elizabeth Bates Court Shelter m 10m 20m 30m 88 El Sub Sta 25 DEPT. W

27 26

28 FURTHER INFORMATION To access the full data room, please contact sole agents: Shaun Simons Michael Raibin James Abrahams Matthew Millman Colliers International & Allsop, give notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Party should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Colliers International & Allsop has any authority to make any representation or warranty whatsoever in relation to this property. October Designed & produced by Cre8te cre8tedesignuk.com