PEMBROKE HOUSE GUILDFORD GU1 4QA Prime Thames Valley Office Development Opportunity
INVESTMENT CONSIDERATIONS Guildford is strategically located with excellent communication links to London, the M25 and both Heathrow and Gatwick Airports Development site of 0.26 ha (0.64 acres) in an attractive riverside setting offered with full vacant possession Detailed planning permission preserved for a development of 29,927 sq ft (NIA) of Offices to provide a BREEAM Very Good building Located within 5 minutes walk of the train station and the Friary Shopping Centre Prime Grade A rents in Guildford are currently 31.50 psf Availability stands at under 6% of total built stock. There is currently NO GRADE A Supply in the town centre Offers in excess of 3,000,000 (Three Million Pounds) are sought for an unconditional purchase of the freehold interest
1 1 1000 & 2000 Cathedral Hill Avaya, RBS 6 Wey House Stevens & Bolton LLP 2 Guildford Business Park, Multi-let 7 One Onslow Street Sanofi UK 3 Tempus Court Laytons Solicitors LLP, Punter Southall & Co 8 1 Farnham Road Regus 9 Ranger House Barclays, Ubisoft 4 10 Bridge House Highways Agency Onslow House Electronic Arts 5 65 Woodbridge Road TWM Solicitors, Wood Mackenzie 2 UNIVERSITY OF SURREY 11 The Billings Investec 12 Bishops Wharf Smith & Williamson PARKING P1 Mary Road 107 spaces P2 Bedford Road 1,033 spaces P3 Bedford Road (surface) 68 spaces P4 Commercial Road / Old Police Station 114 spaces P5 Leapale Road 384 spaces P6 Farnham Road 917 spaces P6 8 GUILDFORD STATION 12 PEMBROKE HOUSE GUILDFORD CROWN COURT 9 FOOTBRIDGE 11 10 P1 P3 P2 SURREY POLICE 4 TOWN CENTRE 3 6 7 FRIARY SHOPPING CENTRE P4 NEW WAITROSE SUPERMARKET P5 5
LOCATION M4 M3 A417 Reading 3 2 A404 Slough 1 0 4a 4 14 13 12 M3 11 3 M4 Heathrow Woking A25 LONDON Croydon Epsom A287 100 A281 Gatwick 9a 9 Crawley 11 Haslemere A272 A23 10 GUILDFORD 1 M25 7 M23 Guildford is the affluent county town of Surrey and is a major employment centre. The proximity of London and excellent shopping and leisure amenities have proved popular with firms in all sectors of the economy. Major office occupiers in the town include Sanofi Aventis, BAE Systems, Colgate Palmolive, EA Games, Allianz Cornhill, Highways Agency, Avaya, Philips Electronics, Honeywell and Ericsson. The town centre is set for further improvements with the proposed 150m redevelopment of Guildford Station. The scheme, a joint venture by Kier and Network Rail, will include 445 new apartments and create a new Station Quarter with shops, restaurants, commercial space and a new multi-storey car park (www.guildfordforward.com). There are also plans to extend the Friary Shopping Centre which will further improve the extensive retail offer of the town. Guildford Borough Council is also shortly to commence renewed public consultation on a new Town Centre Master Plan which is being prepared by Allies and Morrison. This sets out a long term vision for the town centre and how it can be improved with a particular focus on the River Wey corridor. www.guildford.gov.uk COMMUNICATIONS SITUATION To London M25 Junction 10 ROAD Excellent road communications are provided by the, 1 mile to the north, which gives access to the M25, 9 miles to the northeast. RAIL Guildford Station provides direct services to London Waterloo with 8 trains per hour and a fastest journey time of 37 minutes. The station is also on the Gatwick to Reading line which further adds to the excellent rail connectivity. AIR Heathrow, one of the World s Busiest Airports is located approximately 20 miles north of Guildford. Gatwick airport is located approximately 22 miles east. Pembroke House is situated within Guildford town centre, and is approximately 5 minutes walk from the mainline railway station, where office development is typically focussed. The amenities of the town centre shops and restaurants are also approximately 5 minutes walk away. It benefits from an attractive frontage to the River Wey and vehicular access from Mary Road. Mary Road is home to a mixture of residential and commercial uses. Immediately to the north of the property is Wey Court, a modern courtyard office development which is fully let with further office buildings along Leas Road and Woodbridge Road in close proximity to the east. The remainder of Mary Road is predominantly residential. There are more than 1,200 public car spaces in the Mary Road and Bedford Road car parks, both within a 3 minute walk of the property. ALRESFORD ROAD THE CHASE 1 A25 GUILDFORD University of Surrey PEMBROKE HOUSE To Winchester M3 Junction 10 GUILDFORD FARNHAM ROAD LADYMEAD WOODBRIDGE ROAD Town Centre STOKE ROAD HIGH STREET PARKWAY LONDON ROAD ACCESS ROUTES
DESCRIPTION FLOOR PLAN The property comprises a development site with an existing trade counter warehouse of approximately 13,000 sq ft GIA. Vacant possession has been obtained and demolition work commenced, which is set to take 4 weeks from 28th September. WEY COURT STAIRS/ DUCTS PLANNING RIVER WEY RIVER GARDEN MAIN CORE THE STUDIO THE PAVILION GATE Planning Permission (Ref: 10/P/01422) has been granted and implemented for the development of a three storey Grade A office (class B1) building with the following outline specification: SUSPENDED DECKING RIVERSIDE BUILDING MAIN ENTRANCE PEDESTRIAN PRIORITY COURTYARD 29 CAR PARKING SPACES INCL. 2 SPECIAL NEEDS VEHICULAR ACCESS MARY ROAD GEA for construction of 35,209 sq ft STAIRS/ DUCTS CYCLE PARKING 14 STANDS Assumed NIA of 29,927 sq ft offering floor plates of c. 10,000 sq ft Flexible design to allow three self contained offices - Pavilion / Studio / Riverside Raised access floors and suspended ceilings Air-conditioning Not to scale Two passenger lifts Slab to slab height of 3.7m giving internal floor to ceiling height of 2.65m BREEAM Rating Very Good 29 car parking spaces providing a ratio of 1:1,000 sq ft Conditions have since been discharged under permissions 15/D/00057, 15/D/00057/1, 15/D/00057/2. The Local Planning Authority is Guildford Borough Council - http://www.guildford.gov.uk/planning DRAFT GUILDFORD BOROUGH LOCAL PLAN 2014 The Draft Local Plan 2014 has identified the property as a development site allocated for Housing (C3) and/or offices (B1a) use. It is estimated that the site could provide 26 homes. The property therefore has potential for a range of alternative uses including residential, student housing and the existing quasi-retail use subject to planning.
SITE The site consists of a broadly flat and rectangular shaped plot with a total area of 0.257 ha (0.636 acres) as shown in the OS plan. 36 34 BUS DEPOT WEY COURT BAYLISS C ENVIRONMENTAL PEMBROKE HOUSE Guildford Borough Council consider the site to be within Flood Zone 3a, comprising land assessed as having a 1 in 100 or greater annual probability of river flooding (>1%). Clarkebond have provided a Flood Risk Mitigation Report which states: The highest recorded flood level for the site is 31.67m Above Ordinance Datum (AOD) effective sea-level. The finished ground floor level of the proposed building is 32.35m AOD 680mm above this level and 690mm above the predicted 1 in 100 level. Ground Floor Level 32.35m ROOF 1% + Climate Change Floodplain Level + 31.68 AOD SECOND River Level +29.83-13/01/10 FIRST GROUND FFL +32.35 Highest Recorded Flood on site 31.67m SLAB SOFFIT +31.90 RIVER WEY RIVERSIDE GARDEN RIVERSIDE BUILDING Not to scale
THAMES VALLEY OFFICE MARKET RENTS WITH CURRENT AND FORECAST PRIME LEVELS The Thames Valley has a total office stock of c. 65 million sq ft, of which 9.6 million sq ft was available at the end of Q2 2015, down 4% year-on-year. In the last 12 months, supply has been bolstered by the delivery of Grade A stock to the market which, in turn, has pushed prime rents upwards across the region. So far, total take-up to Q2 2015 is 896,419 sq ft, an increase of 77% on the Q2 2014 figure - 506,787 sq ft. Transactions have been agreed on a further 400,000 sq ft which continues to demonstrate the positive trend. It should be noted that, over the last 12 months, 54% of the total take-up in Q2 2015 was grade A against 46% grade B. The proportion of grade A take up should continue to climb through the rest of the year. 42.50 34.00 M4 43.00 35.00 MAIDENHEAD 30.00 34.50 26.50 SLOUGH M4 Heathrow CHISWICK 65.00 52.00 56.50 45.00 LONDON Occupiers are consistently proving Grade A quality is a key requirement and will have to focus increasingly on newly built options, which will help drive further rental growth over the next two years. READING 22.50 BRACKNELL 44.50 RICHMOND 36.00 A24 GUILDFORD OFFICE MARKET M3 33.00 30.00 WOKING STAINES M25 Total built office stock in Guildford is approximately 3.3 million sq ft, and at the end of August 2015, the vacancy rate was only 5.9%. Of the available supply, only two buildings are able to provide more than 10,000 sq ft and less than 80,000 sq ft is available direct from the landlord. There is currently NO Grade A supply and none under construction in the town centre. Opportunities to develop new office stock in the centre of Guildford are extremely rare particularly as the two largest consented schemes, Guildford Plaza and Station View (both circa 90,000 sq ft) were sold in 2015 for residential uses. 39.50 31.50 GUILDFORD Gatwick A24 30.00 24.50 M23 The 10 year annual average take up of office space in Guildford is 90,000 sq ft. 2014 saw take-up exceed 100,000 sq ft and take up to the end of August in 2015 is over 83,000 sq ft with a further 13,000 sq ft under offer. Forecast Source: IPD Real Estate Strategies Index CRAWLEY Prime rents have increased to 31.50 psf, rising by 19% over the last 2 years, driven by the lack of Grade A supply. Healthy demand, for good quality stock, is forecast to continue this trend and push prime rents are expected to exceed 35 psf. Key office lettings in Guildford in 2015: Address Tenant Area sq ft 3 Guildford Business Park Philips Electronics 34,205 31 Chertsey Street Eagle Eye 5,500 1 London Square Alpha Petroleum 7,500 1A Guildford Business Park Linden Homes 11,003 Term (break) 10 years (5th) 10 years (5th) 10 years (mutual 5th) 10 years (5th) Rent psf Date Town centre/ Business Park 26.00 Aug 2015 Out of town 31.00 Jul 2015 In town 25.00 Jul 2015 Out of town 25.00 Jun 2015 Out of town 31 Chertsey Street BDO 10,048 10 years 30.50 Mar 2015 In town 31 Chertsey Street Penningtons Manches 14,973 10 years 30.50 Mar 2105 In town GUILDFORD PRIME HEADLINE RENTAL FORECAST SQ FT 40 35 30 25 20 15 10 5 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (f) 2016 (f) 2017 (f) 2018 (f) 2019 (f) 2019 (f) Source: LSH/IPD Real Estate Strategies Index
OFFICE INVESTMENT MARKET Investment demand for South East offices has continued to grow through 2015. In Q2, a record 572m of assets changed hands, which is an increase of 14% on the level recorded in Q1 ( 500m). The total volume for the 12 months to June 2015 was 1.92bn, an increase of 38% on the preceding 12 months and over five times the cycle low of 352m recorded in 2009. Prime yields stand at 5.00% - 5.25% and are expected to come under downward pressure as investors will be forced to compete for prime stock. In core markets, where Grade A supply is restricted, speculative new build and refurbishment opportunities are allowing investors to capitalise on strong occupational activity and rental growth. Recent transactions of Grade A buildings include: Date Property Town Tenant Term Price Yield Cap Val ( psf) Aug 2015 Velocity Weybridge Multi 12.2 55.63m 5.70% 553 Aug 2015 Griffin House Hammersmith Virgin Media 10 76.5m 5.00% 910 Purchaser Orchard Street National Bank of Kuwait May 2015 Flow Staines VMWare UK 9.8 37.95m 5.20% 595 NFU Mutual GUILDFORD INVESTMENT MARKET Guildford is one of the premier towns in the South East as evidenced by the continual demand and investor appetite for opportunities that arise. Recent transactions of note in Guildford include: Date Property Tenant Term Price Yield Under Offer Building 1000 & 2000, Cathedral Hill Avaya 1.2 40,000,000 (Quoting) Cap Val ( psf) Purchaser 7.84% 332 Under Offer Jul 2015 Gateway Guildford Multi 2.7 6,900,000 5.94% 432 BMO Real Estate May 2015 Tempus Court Multi 1.5 10,500,000 5.86% 431 Kames Capital Mar 2015 Buryfields House Vacant N/A 4,000,000 N/A 229 Bowood Homes Jan 2015 The Billings Multi 3.4 5,700,000 7.00% 309 Guildford Borough Council Mar 2015 St George House West Wimbledon Multi 8.8 58.70m 4.56% 731 Orchard Street Dec 2014 Blenheim House Vacant N/A 1,850,000 N/A 183 Mercer Oct 2014 Kia House, Halfway Green Walton on Thames Kia 13.0 29.50m 5.25% 526 Aberdeen AM Dec 2014 London Square Office Park Multi 2.5 43,500,000 6.71% 370 M&G
TENURE CONTACT Freehold VAT The property is elected for VAT DATA SITE A data site has been prepared for the purpose of sale. For access please contact the sole agent. PROPOSAL Charlie Lake e clake@lsh.co.uk t 020 7198 2227 Paul Dowson e pdowson@lsh.co.uk t 01483 446 703 EPC We are seeking offers in excess of 3,000,000 (Three Million Pounds) subject to contract, for an unconditional purchase of the freehold interest in the property. Matt Jones e mhjones@lsh.co.uk Robert Neaverson e rneaverson@lsh.co.uk The existing building is rated C(60) t 020 7198 2393 t 020 7198 2189 Misrepresentation Act 1967: Lambert Smith Hampton Group Limited and its subsidiaries and their joint agents 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 ena 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. September 2015 04604 / 020 7355 2500 / taylerreid.co.uk