STAGE 6 TELEVISION CENTRE 101 WOOD LANE LONDON W12

Transcription

1 TELEVISION CENTRE 101 WOOD LANE LONDON W12

2 For over 50 years, the BBC has been broadcasting from Television Centre in White City, West London. This location and the iconic Television Centre, are firmly associated with the BBC and instantly recognisable to people throughout the world. The regeneration of Television Centre by Stanhope and The White City Opportunity Area, are key drivers behind the transformation of this vibrant part of West London. This long leasehold investment with approximately 996 years unexpired offers the strong covenant of BBC Worldwide, let for 25 years, at a low passing rent of psf with the benefit of annual uncapped RPI increases. 2

3

4 EXECUTIVE SUMMARY Located in the heart of White City, a rapidly changing part of West London, undergoing widespread redevelopment and regeneration Situated opposite Westfield Shopping Centre, White City Underground Station (Oxford Circus 14 minutes) and Wood Lane Underground Station Unique opportunity to acquire an interest in the iconic Television Centre redevelopment comprising a total of circa 2 million sq ft of refurbished and new build mixed use real estate An existing leasehold interest with approximately 996 years unexpired Comprehensively refurbished 94,009 sq ft (8,734 sq m) office building, scheduled for practical completion in February The refurbishment has been carried out by the BBC with warranties available in favour of the landlord Let to BBC Worldwide Ltd (5A1), guaranteed by BBC Commercial Holdings Ltd (5A1) 25 year FRI lease from 1st April 2015, which has already been granted, benefiting from uncapped upwards only annual RPI increases Low passing rent of 2,650,000 per annum, reflecting per sq ft overall Prime Rents in Hammersmith are already circa 50 per sq ft, offering excellent potential for reversion on lease expiry We are instructed to seek offers in excess of 54,800,000 subject to contract, equating to a low capital value of 583 per sq ft and a net initial yield of 4.75%, assuming purchase of the Luxembourg SPV and acquisition costs of 1.8%. The property can also be acquired by way of an asset sale. CONTACT For further information, to arrange an inspection, or obtain a data site password, please contact one of the following: Ezra Nahome enahome@lsh.co.uk James McAdden jmcadden@lsh.co.uk Jason Winfield jason.winfield@dtz.com Richard Wadham richard.wadham@dtz.com 4

5 LOCATION A1(M1) Stage 6 is located in an enviable position in West London, in the heart of White City. The West End is easily accessible and is only 5.4 kilometers from Stage 6. A5 A406 N CIRCULAR The A40 / M40 passes immediately to the north of the property, providing direct access to the North Circular and the M25 as well as being the primary arterial route connecting Central London to Oxfordshire and the Midlands. M40 LONDON From Hammersmith, 1.5 miles to the south, the A4 / M4 provides access to Heathrow Airport and the Thames Valley. A40 Wembley M25 TELEVISION CENTRE Brentford Chiswick A40 White City West End Kensington Hammersmith Westminster The City M4 M4 A4 Fulham River Thames A4 Richmond HEATHROW AIRPORT Kingston upon Thames A306 A30 A316 Wimbledon A205 S CIRCULAR M3 A3 5

6 SITUATION White City has been historically synonymous with the BBC but is now known for being much more than just the home of this venerable institution. Opposite Stage 6 is Westfield s 1.6 million sq ft Shopping Centre and the 7.6 hectare northern extension, to be anchored by John Lewis. The east side of Wood Lane, adjacent to the Westfield northern extension, comprises circa 35 acres which will be completely transformed by Imperial College and St James. To the south is the bustling Shepherd s Bush Market (a favourite of local residents and tourists) which has consent for a six acre, 150 million redevelopment by Development Securities and Orion. Alongside the Shepherd s Bush Market improvements, the London Borough of Hammersmith & Fulham (LBHF) are pushing forward plans to invest in and improve the public realm along Uxbridge Road and Shepherd s Bush Market through the Shepherd s Bush Town Centre West regeneration scheme. EDGWARE The following tubes are within easy walking distance of Stage 6:- White City 1 min Shepherd s Bush Market 9 mins Wood Lane 2 mins Shepherd s Bush 12 mins White City / Wood Lane tube stations, directly adjacent to Stage 6, provide the following journey times to these stations:- Bond Street 12 mins Victoria 22 mins Oxford Circus 14 mins Paddington 15 mins Kings Cross 20 mins Euston 20 mins HIGH BARNET LUTON AIRPORT COCKFOSTERS Bank 22 mins Liverpool Street 24 mins Heathrow 30 mins Stage 6 Crossrail Circle Line Central Line District Line Piccadilly Line Northern Line Hammersmith & City Line Thames Link MAIDENHEAD PADDINGTON ST PANCRAS INTERNATIONAL / KINGS CROSS FARRINGDON LATIMER ROAD WHITE CITY NOTTING HILL GATE TOTTENHAM COURT ROAD HOLBORN STRATFORD EALING BROADWAY ACTON TOWN WOOD LANE SHEPHERD S BUSH SHEPHERD S BUSH MARKET BOND STREET LEICESTER SQUARE EMBANKMENT BLACKFRIARS LIVERPOOL STREET CANARY WHARF/ LONDON CITY AIRPORT BARKING/ UPMINSTER HAMMERSMITH SOUTH KENSINGTON VICTORIA HEATHROW AIRPORT MORDEN GATWICK AIRPORT 6

7 BT Tower City of London The Shard West End Hyde Park Notting Hill Gate Kensington Holland Park Notting Hill Holland Park Shepherd s Bush Latimer Road A3220 Westfield A40 Westfield Phase 2 Imperial West Last Phase St James White City White City Wood Lane Television Centre Imperial West Phases 1 & 2 BBC Media Village

8 THE BUILDING The property was constructed in the 1990s and is currently undergoing a comprehensive refurbishment, due for completion in February The building comprises 94,009 sq ft (8,734 sq m) of modern specified office and ancillary accommodation arranged over lower ground, mezzanine, ground and five upper floors. The fifth floor houses the majority of the plant, the remainder is on the roof. The refurbished specification will include: Air-conditioning four pipe fan coil system 150mm raised floors Full height central atrium 4 x 16-person (1,250kg) passenger lifts Male and female WCs on all floors DDA compliant ACCOMMODATION Floor NIA (sq m) NIA (sq ft) Fifth Floor Plant Plant Fourth Floor 601 6,471 Third Floor 624 6,718 Second Floor 1,895 20,399 First Floor 2,032 21,869 Entrance Mezzanine Level 1,584 17,047 Raised Ground Floor 350 3,764 Lower Ground Floor 1,648 17,741 Total Approximate Area 8,734 94,009 8

9 FLOOR PLANS Raised Ground Floor Typical Upper Floor (Second) 9

10 TENURE White City Station FB An existing long leasehold interest with approximately 996 years of the term remaining subject to a rent of 10 per annum. Our client is retaining the freehold to enhance and preserve the estate management of Television Centre, of which Stage 6 forms the gateway Exhibition Close LB An estate service charge will be payable to the estate management company Und El Sub Sta TCB TENANCY m The property is let on full repairing and insuring terms in its entirety to BBC Worldwide Ltd with BBC Commercial Holdings Ltd acting as a guarantor FF Ward Bdy CR The current lease is effective from 1st April 2015, with a rent commencement date of 1st June 2015, expiring 31st May 2040 being a term of 25 years and 2 months, at a passing rent of 2,650,000 per annum with upwards only annual uncapped RPI linked reviews. A full copy of the lease is available on the dataroom. 7.3m 0m 10m 20m 30m Wood Lane Station Ordnance Survey Crown Copyright All rights reserved. Licence number Plotted Scale - 1:1250 Crown Copyright All rights reserved. Not to scale. Stage 6, BBC Television Centre W12 7RJ 10

11 TELEVISION CENTRE PAST Stage 6 forms part of Television Centre, a 14 acre site comprising five core buildings, opened on 29th June 1960 as the world s first purpose built television factory. From the air, the design of Television Centre appears as a question mark in shape. The architect, Graham Dawbarn CBE, drew the sketch below on an envelope while contemplating the design of the buildings and realised that it would be an ideal layout for the site. 11

12 TELEVISION CENTRE FUTURE Stage 6 is the gateway to Television Centre, which in December 2013, was granted planning consent to open up and transform Television Centre into a mixed-use development. A revised application was made in May 2014 and received a resolution to grant planning on 10th December CGI of Television Centre

13 TELEVISION CENTRE DEVELOPMENT Plot F Delivery Date: TBC Type: New Build Plot E Delivery Date: TBC Type: New Build Plot B Delivery Date: Q Type: Refurbishment Plot C Delivery Date: Q Q Type: New Build Total Size (sq ft) NIA/GIA: 36,124 / 37,738 Total Size (sq ft) NIA/GIA: 190,782 / 326,835 Total Size (sq ft) NIA/GIA: 185,266 / 415,756 Total Size (sq ft) NIA/GIA: 261,275 / 325,641 Use: Residential Use: Residential Use: Retail / Residential / Hotel Use: Residential / BBC Store Plot H Delivery Date: TBC Type: New Build Total Size (sq ft) NIA/GIA: 106,364 / 153,041 Use: Retail / Residential Plot G Delivery Date: TBC Type: New Build Total Size (sq ft) NIA/GIA: 143,160 / 196,613 Use: Retail / Residential PLOT H 2014 Resolution to grant planning Number of Residential Units 941 PLOT F PLOT G PLOT E BBC STUDIOS 1, 2, 3 PAVILION PLOT B+C PLOT A PLOT D Plot D Delivery Date: Q Type: New Build Total Size (sq ft) NIA/GIA: 115,306 / 166,905 Use: Retail / Office Plot A Delivery Date: Q Type: New Build Total Size (sq ft) NIA/GIA: 330,344 / 458,187 Use: Retail / Office Areas GEA sq ft GEA sq m Residential floor area 1,236, ,833 Commercial floor area 544,144 50,553 Retail floor area 62,704 5,825 Leisure floor area 104,368 9,696 Publicly accessible open space 151,717 14,095 Private amenity space 140,340 14,038 Pavilion Delivery Date: Q Type: New Build Total Size (sq ft) NIA/GIA: 8,250 / 10,700 Use: Restaurant Number of parking spaces - Residential - Commercial Phase 1 Phase 2 13

14 WHITE CITY OPPORTUNITY AREA 14 Stage 6 is situated in the heart of The White City Opportunity Area (WCOA), which covers approximately 110 hectares (272 acres) on the eastern edge of the London Borough of Hammersmith & Fulham, along the boundary with the Royal Borough of Kensington & Chelsea. The WCOA sets out planning guidance to promote economic development and wealth creation, the delivery of new homes, promotion of social development and environmental improvement for the key development sites in the Opportunity Area. Stage 6 and Television Centre are integral parts of the White City East sub area within the WCOA. The WCOA has aligned the delivery of uses on several major development sites to produce a cohesive plan for White City. The area is being transformed and will offer exceptional new build residential and business accommodation with ample outdoor space. These improvements will allow White City to become an established office market for both national and international occupiers. The Imperial West site is core to White City becoming a renowned hub for creative industries and innovation, attracting creative, media and entertainment companies together with bio-tech and high-tech start-ups. Cutting edge business and academic research will be linked with schools and colleges to inspire young people, providing opportunities for training and skills development in the community. Imperial West Phases 1&2 Forms part of Imperial College s new research quarter for London. Comprises a total site area of circa 25 acres. Phase 1 post graduate accommodation comprising 600 units, completed and occupied. Phase 2 Work commenced in October 2014 on a 500,000 sq ft Research and Translation hub, a high specification research centre, which will combine finance, providers and businesses. 192 residential units in a 35 storey tower. The last phase, south of the A40, is currently being master planned to comprise a new biomedical engineering centre, dubbed a new Silicon Valley for research into new and affordable medical technology. Westfield Phase 2 Outline planning permission granted in April 2014 for 1,347 homes, leisure facilities and retail including a new John Lewis department store. Construction to begin on the circa 750,000 sq ft (GIA) of retail and the first phase of residential in early John Lewis department store and the first phase of residential to complete in December Construction expected to begin on second phase of residential in St James White City A planning application was submitted in October 2014 to create a new high quality residential neighbourhood, alongside a new public park. The proposed development will include: 1.5 hectares (3.7 acres) of open space with 1,465 new homes in a range of different sizes and tenures, including affordable housing. Various commercial premises to support the residential development. St James aim to start construction in Autumn Shepherd s Bush Market Development Securities, in joint venture with Orion Land and Leisure, has secured detailed planning consent to redevelop a 6-acre site running between Uxbridge Road and Goldhawk Road that includes the existing Shepherd s Bush Market. The proposed scheme comprises up to 212 residential apartments and mews style houses. Maximum of 14,050 sq m non-residential floor space including up to 6,000 sq m of retail and market space, 4,000 sq m of food and beverage uses along with ancillary floor space, landscaping and amenity / open space. A rejuvenated market will be at the heart of the redevelopment.

15 Imperial West Phases 1 & 2 N ay West W est Way W A40 Imperial West Imperial West Last Phase A40 BBC Media Village Latimer Road St James White City White City A3320 Wood Lane Television Centre 4 Westfield Phase 2 Queens Park Rangers FC St James White City Westfield 3 A33 20 Uxbridge Road Shepherd s Bush Market Shepherd s Bush Westfield Phase 2 Shepherd s Bush Shepherd s Bush Market Goldhawk Road hawk Gold S TA G E 6 Shepherd s Bush Common Shepherd s Bush Market Regeneration Road 15

16 BBC The British Broadcasting Corporation (BBC) is the largest broadcasting corporation in the world, established by Royal Charter in Across its network the BBC offers services including 8 national televisions channels, a range of regional programming, 10 national radio stations, 40 local radio stations and an extensive website ( which also hosts its on-demand television and radio service, BBC iplayer. The BBC is governed by the BBC Trust, which is responsible for setting the corporation s overall strategy and ensuring the interests of licence fee payers are protected. The BBC will recommence filming in Television Centre Studios 1, 2, 3 in April COVENANT BBC WORLDWIDE The BBC has a commercial arm, BBC Worldwide Ltd, which operates a range of businesses including selling programmes around the world and publishing books, DVDs and merchandise. BBC Worldwide Ltd exists to support the BBC public service mission and to maximise income to the group. All profits generated by BBC Worldwide are returned to the BBC for investment in new programming and services. BBC Worldwide Limited entered a new phase in 2014 with a revised regional structure, an updated strategy and a mission to grow the BBC brand around the world and to increase its global presence. BBC Worldwide Ltd s revenue from these operations in the year ending March 2014 was 1.042bn, generating a headline profit of 157.4m, an increase from 156.3m in BBC Worldwide has a D&B rating of 5A1. GUARANTOR Strictly Come Dancing BBC COMMERCIAL HOLDINGS LTD BBC Commercial Holdings Ltd is the holding company for the BBC s principal commercial subsidiaries including BBC Worldwide Limited, BBC Global News Limited and BBC Studios & Post Production Limited. BBC Commercial Holdings Ltd s overall revenue including joint ventures was 1.169bn in This represented a small decline from 2013 ( 1.228bn) which resulted from BBC Worldwide s new commercial arrangement for and the disposal in 2013 of Lonely Planet. Operating profit before specific items was 151.8m in the same period, an increase of 2.2% on

17 WHITE CITY OCCUPATIONAL MARKET The West London office market has seen a rapid rise in popularity as London has become the most sought after location on the international stage. Businesses have particularly been drawn to the wealth of young talent in the creative industries which is embedded in West London. The West London office market has historically been associated with Hammersmith but the success of Chiswick Park and the rise of White City has established these areas as internationally recognised destinations, attracting media, oil and gas as well as other retail, professional services and IT companies. White City has benefited from a large scale, integrated masterplan, which should lead to rents growing from an attractive current low base level of psf to compete with other growth areas of Central London. As momentum and critical mass develop, White City is expected to increase its presence as a destination in its own right. This investment offers purchasers a unique opportunity to gain a foothold in this growth story and benefit from the expected rental growth while the transformation is still in its infancy. Paddington 55 psf Kings Cross psf psf Mayfair 110 psf Chiswick 55 psf Hammersmith 50 psf River T h a mes Southwark psf 17

18 OCCUPIER TRENDS & DEMAND Lack of development and dwindling stock levels are forcing large Central London occupiers to widen their area of search beyond traditional core markets in order to accommodate their requirements. As a result, locations such as White City, with its excellent transport links to Central London and its relatively economical occupational costs, are becoming increasingly attractive. Changes in working practices and increasing pressure to compete and attract the best work force are driving companies to design and create better working environments in places that have a sense of place and a balance of working and social environments. As such, occupiers are increasingly seeking large campus-style developments which are capable of accommodating their entire London staff, creating a truly collaborative working environment. White City offers occupiers just such an opportunity and occupational demand should therefore thrive. These changing occupier dynamics and the wealth of amenities and transport links offered by White City make it a highly attractive destination for occupiers seeking first class accommodation in London. PRIME RENTS psf Chiswick Park Hammersmith Paddington Kings Cross South Bank Headline rents in Hammersmith have now reached psf with the letting of 10 Hammersmith Grove and further, Building 7 on Chiswick Park will be the last building on the park to be developed targeting rents of psf. White City has the potential to achieve similar levels of rent if not higher as the wider area is developed over the next 10 years. RECENT COMPARABLE LETTINGS Date Address Size (sq ft) Aug Hammersmith Grove 34,240 Aug Hammersmith Grove 25,000 Mar nd 3rd floor Building 12, Chiswick Park, Chiswick 41,800 Rent ( per sq ft) & Lease Terms 50 psf 15 years, 10 year break, 15 months rent free psf 15 years, 21 months rent free psf Lease expiring August 2020 Tenant Phillip Morris Accor Hotels Pernod Ricard 18

19 LONDON: A GLOBAL CITY Central London attracts the finest people and diverse capital from around the world, drawn to its unique culture, transparent legal system and cosmopolitan population. When the world has experienced economic and political instability, London has gone from strength to strength. For international businesses, London s exceptional connections and favourable time zone make it an appealing location which is evidenced by the wealth of global companies that call London home; over 70 per cent of the FTSE 100 are located in London and 75 per cent of Fortune 500 companies have offices in London. Furthermore, 100 of the world s largest 250 companies have chosen London for their global or European headquarters. London is constantly regenerating its urban landscape with unprecedented improvements, combining infrastructure and local communities to produce new and exciting places to live and work, maintaining London s reputation as a truly global city. INVESTMENT MARKET The West End office investment market experienced the highest turnover on record in 2013, surpassing the highs of 2007 by reaching circa 6.92bn of transactions. However, restricted supply has resulted in suppressed investment turnover in Q1 to Q with only 3.5bn being transacted. Sub markets in Central London directly benefit from this unprecedented demand, as investors look for opportunities away from the traditional core. The old notion of Core and fringe markets no longer accurately describes the Central London office market. As investors and business occupiers demonstrate their flexibility when seeking business space, sub markets, such as Shoreditch, Aldgate, Southwark, Hammersmith, and Chiswick, have undergone unprecedented investment. New office supply has been built in these locations, creating destinations offering modern business accommodation and outdoor space. The effect of this movement of people and capital has been a rapid increase in rents and compression in yields. RECENT INVESTMENT TRANSACTIONS Date Address Post code Tenure Area (sq ft) Tenant Unexpired Term Net Price NIY Capital Value Jan Brook Green W6 FH 85,672 Halcrow Group Limited 11 years 54.9m 4.91% 641 psf Oct Bloomsbury Street, Fitzrovia WC1 FH 79,368 The Secretary of State 8 years 73m 4.28% 920 psf Jul 2014 The Point, North Wharf Road, Paddington W2 VFH 236,239 Multi-let 8.5 years 210m 5.48% 889 psf Jun Wright s Lane, Kensington W8 FH 69,205 Warner Music 6.5 years 60m 4.23% 867 psf Dec 2013 Dec 2013 Clive House, 70 Petty France, Victoria Partnership House, Carlisle Street, Victoria SW1 FH 85,674 The First Secretary of State 12 years 90m 4.22% 1,050 psf SW1 FH 38,392 John Lewis Partnership 15 years 49m 3.52% 1,275 psf Nov 2013 Building 8, Chiswick Park W4 VFH 134,000 QVC 19.7 years 72m 4.75% 547 psf 19

20 PLANNING The property is situated within the London Borough of Hammersmith and Fulham and lies within the Wood Lane Conservation Area and is not listed. Current planning is for B1 high class offices. DATA SITE Further information on the sale can be found on the data site. Please contact LSH /DTZ for further details. VAT The property is registered for VAT. If the transaction were to proceed by way of an asset sale, it is anticipated that the sale of the property would be treated as a transfer of a going concern (TOGC). CAPITAL ALLOWANCES Capital allowances for the recent refurbishment works may be available, further details can be found on the data site. EPC An Energy Performance Certificate will be available on practical completion of the works. 20

21 PROPOSAL We are instructed to seek offers in excess of 54,800,000 subject to contract, equating to a low capital value of 583 per sq ft and a net initial yield of 4.75%, assuming purchase of the Luxembourg SPV and acquisition costs of 1.8%. The property can also be acquired by way of an asset sale. The following table illustrates the running yield assuming RPI at 2.5% per annum and the above purchase price and SPV acquisition costs. Rent Passing Running Yield Year 1 2,650, % Year 5 2,925, % Year 10 3,309, % Year 15 3,744, % Year 20 4,236, % Year 25 4,793, % CONTACT For further information, to arrange an inspection, or obtain a data site password, please contact one of the following: Ezra Nahome enahome@lsh.co.uk James McAdden jmcadden@lsh.co.uk Jason Winfield jason.winfield@dtz.com Richard Wadham richard.wadham@dtz.com Subject to Contract and Exclusive of VAT Lambert Smith Hampton January 2015 Disclaimer: Lambert Smith Hampton Group Limited and its subsidiaries and their joint agents and DTZ if any ( LSH ) for themselves and for the seller or landlord of the property whose agents they are give notice that: (i) These particulars are given and any statement about the property is made without responsibility on the part of LSH or the seller or landlord and do not constitute the whole or any part of an offer or contract. (ii) Any description, dimension, distance or area given or any reference made to condition, working order or availability of services or facilities, fixtures or fittings, any guarantee or warrantee or statutory or any other permission, approval or reference to suitability for use or occupation, photograph, plan, drawing, aspect or financial or investment information or tenancy and title details or any other information set out in these particulars or otherwise provided shall not be relied on as statements or representations of fact or at all and any prospective buyer or tenant must satisfy themselves by inspection or otherwise as to the accuracy of all information or suitability of the property. (iii) No employee of LSH has any authority to make or give any representation or warranty arising from these particulars or otherwise or enter into any contract whatsoever in relation to the property in respect of any prospective purchase or letting including in respect of any re-sale potential or value or at all. (iv) Price or rent may be subject to VAT and any prospective buyer or tenant must satisfy themselves concerning the correct VAT position. (v) Except in respect of death or personal injury caused by the negligence of LSH or its employees or agents, LSH will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars or any information provided in respect of the property save to the extent that any statement or information has been made or given fraudulently by LSH. (vi) In the case of new development or refurbishment prospective buyers or tenants should not rely on any artists impressions or architects drawings or specification or scope of works or amenities, infrastructure or services or information concerning views, character or appearance and timing concerning availability or occupation and prospective buyers or tenants must take legal advice to ensure that any expectations they may have are provided for direct with the seller or landlord and LSH shall have no liability whatsoever concerning any variation or discrepancy in connection with such matters. 21

22 TELEVISION CENTRE 101 WOOD LANE LONDON W12