82-83 BLACKFRIARS ROAD LONDON SE1 8HA.... h... FREEHOLD MULTI-LET OFFICE INVESTMENT... h... REVERSIONARY

Transcription

1 82-83 BLACKFRIARS ROAD LONDON SE1 8HA... h... FREEHOLD MULTI-LET OFFICE INVESTMENT... h... REVERSIONARY

2 INVESTMENT SUMMARY BLACKFRIARS STATION PLATFORM MILLENNIUM BRIDGE TATE MODERN NE0 BANKSIDE IPC Prominent position in Prime Southbank location Short walk to Southwark, Waterloo and Blackfriars Stations Grade II listed office building of 10,404 sq ft Entirely reconstructed in 1980 s and completely refurbished in 2006/7 Multi let to five tenants Income of 274,373 per annum reflecting psf overall Seeking offers in excess of 4.3m reflecting a net initial yield of 6.0% Blackfriars 413 psf on Net Internal Area... h... h... MAJOR LOCAL DEVELOPMENTS PROPOSED...

3 RBS PALESTRA BOROUGH MARKET TRANSPORT FOR LONDON GUY S HOSPITAL RATIONALE Rare opportunity to acquire a smaller commercial investment in prime SE1 Rapidly changing location Well specified modern office building Listed property so no empty rates payable London Bridge Reversionary income with asset management potential. ERV psf Ideal floorplate for residential conversion as planning policy evolves in Southwark No major capital expenditure required Low service charge and rates payable Southwark BLACKFRIARS ROAD LONDON SE1 8HA BLACKFRIARS ROAD, LONDON SE1 8HA h... FASTEST CHANGING DISTRICT OF CENTRAL LONDON... h...

4 Hungerford Bridge London Eye Strand SAVOY HOTEL Savoy Festival LONDON EYE Waterloo Bridge 16 York Road 15 Temple NATIONAL THEATRE SOUTHBANK CENTRE Victoria Embankment Upper Thames Street RIVER THAMES Waterloo Westminster Bridge Road Waterloo Road OXO TOWER Stamford Street 1 The Cut Blackfriars Blackfriars Blackfriars Road Blackfriars Bridge 14 6 Blackfriars Southwark BLACKFRIARS ROAD LONDON SE1 8HA Great Suffolk Street Queen Victoria Street 21 TATE MODERN Southwark Street Borough Road Millennium Bridge Sumner Street Lavington Street 9 Union Street 3 Southwark Bridge Road Bankside SHAKESPEARE S GLOBE THEATRE Marshalsea Road Borough High Street Southwark Bridge Union Street Borough Mansion House Borough High Street Cannon Street Long Lane Cannon Street Swan Lane BOROUGH MARKET London Bridge London Bridge Tooley Street Monument 7 Tower Millennium London Bridge THE SHARD AND SHANGRI-LA HOTEL... h... PRACTICAL LAW COMPANY TO MOVE TO BLACKFRIARS ROAD... h...

5 DEVELOPMENT ACTIVITY OFFICES 1. Sea Containers House - (Architects: TP Bennett) Refurbishment incorporating a new 8 storey office building, a 356 bed Mondrian Hotel and new restaurants and cafes on the river walkway. 2. Kings Reach Tower (KPF) Refurbishment and extension to provide 370,000 sq ft of offices, 173 flats and 72,000 sq ft of retail Southwark Street (ESA) Rockspring and Moorevale have recently completed the 55,000 sq ft Harlequin Building. 4. The Crane Building - 20 Lavington Street (Allies and Morrison) Dorrington are building a 48,000 sq ft office scheme Valentine Place (Stiff + Trevillion) New 22,500 sq ft offices just completed Blackfriars Road (AHMM) Great Ropemaker Partnership are building a 200,000 sq ft office. 100,000 sq ft pre-let to United Business Media. 7. The Shard & The Place (Renzo Piano) The tallest building in London, and The Place, office schemes at London Bridge totalling over 1,000,00 sq ft 8. Land Securities Bankside 1,2 and 3 (Allies and Morrison) Home to IPC Media and Royal Bank of Scotland. HOTELS 9. CitizenM (Sheppard Robson and Concrete) First central London hotel on Lavington Street, this 200 bedroom boutique hotel opened in July Premier Inn (Allies and Morrison) At 15 Great Suffolk Street, Jansons completed a 125 room Premier Inn in June Hilton Bankside (Dexter Moren) At 14 Bear Lane, Splendid Hotel Group have started construction of a 5 star Hilton, to include a 700 person conference facility Blackfriars Road Accor have recently opened a 182 bedroom Novotel and 297 room Ibis Hotel RESIDENTIAL 13. One Blackfriars (Ian Simpson) Berkeley Homes has recently started construction of a 51 storey residential tower, a 260 room hotel, plus offices and residential. 14. Ludgate House, Blackfriars Road and Sampson House, Hopton Street (PLP) To be developed by Carlyle into 1.5m sq ft mixed use scheme incorporating about 1,000 flats, 300,000 sq ft of office space and 200,000 sq ft of retail. 15. Elizabeth House (David Chipperfield) Redevelopment by Chelsfield and London & Regional Properties into 1.4m sq ft of residential, office and retail. 16. The Shell Centre (Squire and Partners) Redevelopment into 2.15m sq ft of residential, office, retail and leisure by Canary Wharf Group and Qatari Diar. STUDENT HOUSING 18. Great Suffolk Street Unite plc has completed Moonraker, providing 674 bedrooms. 19. Paris Gardens (Allies & Morrison) McLaren are under construction on a 80,000 sq ft student housing scheme incorporating a ballet school. 20. Ewer Street (TP Bennett) Generation Estates have started construction of a 150 unit scheme. CULTURAL 21. Tate Modern Contemporary art gallery, receives the most visitors of any museum in the UK, many using the Millennium Bridge across the River Thames from St Paul s Cathedral. The Tate extension, designed by Herzog & de Meuron is under construction, scheduled to open in The London Eye The most popular paid tourist attraction in the United Kingdom, visited by over 3.5 million people annually. 23. The London Dungeons Recently relocated from Tooley Street. 24. Shakespeare s Globe Theatre Since the Globe theatre reconstruction opened for performances in 1997, Shakespeare s Globe has welcomed visitors from all over the world. 17. St Giles Circus, Blackfriars Road (Macreanor Lavington) Barratt Developments proposed. 400 homes and 60,000 sq ft offices and retail.... h... OVERSEAS DEVELOPMENT INSTITUTE MOVE TO BLACKFRIARS ROAD... h...

6 LOCATION The property lies on the west side of Blackfriars Road, 50 metres south of Southwark Underground Station. Blackfriars Road runs north to south linking Southwark with the City of London via Blackfriars Bridge. This area is known as Bankside and is the most popular part of Southwark with commercial tenants, residential occupiers and tourists. The New and Old Vic Theatres, The London Eye, The Southbank Centre, Tate Modern Art Gallery, Borough Market and the attractions of the riverside are all a few minutes walk away. The property is within easy walking distance of Southwark Underground Station, (Jubilee Line), Waterloo Mainline and Underground Station (South West Trains, Waterloo and City, Bakerloo, Northern and Jubilee Lines) and London Bridge Station (Network South-East, Thameslink, Northern and Jubilee Lines). In addition, Blackfriars Station (Thameslink, District and Circle Lines) has been redesigned with new platforms on the bridge and a new pedestrian entrance from the Southbank Riverwalk. Major office tenants nearby include Transport for London, United Business Media, Computacentre, Practical Law Company, Shell, American Express, Medical Defence Union, Overseas Development Institute, British Telecom, Lloyds Bank, The Royal Bank of Scotland, publishers IPC, Financial Times and The London Fire Brigade. This part of London has experienced unprecedented levels of development in the last decade in both transport infrastructure (Jubilee Line and Thameslink) and property stock, which continues unabated. Current landmark schemes include Sea Containers House, Kings Reach Tower, No 1 Blackfriars, 240 Blackfriars Road, Tate Modern extension, The Shard of Glass, The Place at London Bridge and NEO Bankside. Blackfriars Road view north Palestra, Blackfriars Road In addition: Tate Modern and Millenium Bridge McAleer and Rushe have completed two new hotels for Accor on Blackfriars Road Proposals are advanced for a redevelopment of London Bridge Station, after the completion of the Thameslink improvements Shell have entered into an agreement with Canary Wharf Group for a major development at the Shell Centre London and Regional are planning a mixed use development of 1m sq ft + at Elizabeth House on York Road. Carlyle are planning a 1.5m sq ft mixed use redevelopment on the site of Ludgate House, 245 Blackfriars Road, and Sampson House, 64 Hopton Street, incorporating 1,000 flats, 300,000 sq ft of office space and 200,000 sq ft of retail Barratt Homes are planning a 350,000 sq ft + development at the southern end of Blackfriars Road, 400 homes and 60,000 sq ft of offices and retail.... h... UNITED BUSINESS MEDIA TO MOVE TO 240 BLACKFRIARS ROAD... h...

7 DESCRIPTION The property comprises a self contained office building built in the 1980s, in the style of the listed Georgian building which previously occupied the site. It has brick elevations, a reinforced concrete frame and solid concrete floors on basement, ground and four upper storeys. The fourth floor is mansarded with a large roof terrace. A spacious central staircase and eight person passenger lift serve all floors. In 2006 the property was completely refurbished by our client to provide suspended ceilings, recessed lighting, perimeter trunking, and perimeter heating and comfort cooling to most areas. Male and female WC s alternate on half landings and there is a shower room on the lower ground floor. In 2009 the rear lower ground floor was converted from undercroft parking into office accommodation, retaining one car parking space and installing bicycle racks. ACCOMMODATION Floor Use Net Internal Area 4th + 4th Mezzanine Offices 650 ft m 2 3rd + 3rd Mezzanine Offices 1,372 ft m 2 2nd Offices 1,177 ft m 2 1st - Rear Offices 1,151 ft m 2 1st - Front Offices 1,200 ft m 2 Ground Offices 2,444 ft m 2 Basement- Rear Offices 1,250 ft m 2 Basement - Front Offices 1,160 ft m 2 Total 10,404 ft 2 9,66.6 m 2 The main access is from Blackfriars Road with a secondary entrance from Burrows Mews. There is an independent access off the pavement into the lower ground floor. PLANNING The property lies in the London Borough of Southwark and forms part of a group listing for a Grade II terrace. TENURE Freehold Fourth Floor BLACKFRIARS ROAD, LONDON SE1 8HA... h... BERKELEY GROUP PRE-SELL APARTMENTS IN ONE BLACKFRIARS ROADS... h...

8 Roller Shutter BURROWS MEWS Car Parking Bike Racks Lift Terrace Roof Fourth Floor & Third Floor Mezzanine Courtyard Lift Lift Lift Lift Lightwell Lightwell Lightwell Lightwell BLACKFRIARS ROAD Lower Ground Floor Ground Floor First Floor Second Floor & Third Floor... h... BARRATT HOMES PROPOSE 400 NEW UNITS ON ST GILES CIRCUS... h...

9 Entrance Hall Lower Ground Front First Floor Front TENANCY SCHEDULE Floor Tenant Area Lease Start Lease Expiry Rent pa ERV pa Comments sq ft (Break) psf Fourth and Boyer Planning /03/ /03/ ,000 21,141 Area includes 170 sq ft of fourth floor mezzanine. Inside the Act. Fourth Mezzanine (02/03/2014 or after) Third and Core 5 LLP 1,372 22/04/ /04/ ,178 41,160 5 months rent free, rent commencement date 22/09/2013. Third Mezzanine (22/04/2015 & 16) Break penalty 1 months rent per annum for unexpired lease term. Area includes 200 sq ft mezzanine. Outside the Act. Second Music Choice Limited 1,177 07/02/ /02/ ,500 35,310 Outside the Act. (3 months rolling) First - Rear and Bovill Limited 1,151 01/12/ /06/ ,428 70,530 Tenant recently invested in new fit out. Outside the Act. First - Front 1, Ground Bovill Limited 2,444 30/05/ /06/ ,100 73,320 Tenant recently invested in new fit out. Outside the Act Lower Ground - Rear Orbit Management Limited 1,250 10/07/ /08/ ,687 28,750 Outside the Act Lower Ground - Front Orbit Management Limited 1,160 17/08/ /08/ ,480 26,680 Outside the Act TOTALS 10, , , psf psf... h... LAND SEC TO SELL BANKSIDE... h... h...

10 ASSET MANAGEMENT The tenant of the lower ground floor, Orbit Management Limited, has rent arrears and is negotiating to surrender their lease of the lower ground floor front. There is interest from another tenant in the building to relocate to the lower ground floor front. COVENANT INFORMATION Boyer Planning Equifax rating of: A - Very Low Risk Boyer Planning is in the top 25 of UK planning consultancies, operating from offices in Colchester, Cardiff, Twickenham, London and Wokingham. Core Five LLP Equifax rating of: D - Very High Risk An independent firm of construction cost consultants, established in 2012 by five former Partners of Davis Langdon. Ground Floor Front Music Choice Limited Equifax rating of: C - Marked Risk Music Choice is the original digital music pioneer and has been providing non-stop, legal music to over 40m European consumers across TV and the internet since Bovill Limited Equifax rating of: A - Very Low Risk A specialist financial services regulatory consultancy founded in They have offices in London and Manchester advising financial services clients. Orbit Architects Equifax rating: not available A multi-disciplinary firm of architects. Lower Ground Floor Rear... h... DO OGILVY & MATHER LIKE SOUTHBANK?... h... RENTAL GROWTH.

11 SOUTHBANK LETTING MARKET SE1 office vacancy rates are below 5%. There is a particular shortage of good quality small suites, and there have recently been a number of comparable rental transactions which support the level of the passing rent: Date Address Specification Tenant Floor Area sq ft Psf Terms Q Valentine Place New build, stiff trevillion architects TBC 6th 2, years, break at 5 Q Valentine Place New build, stiff trevillion architects Under Offer 5th 2, years, break at 5 Q Southwark Street Full spec refurb Under Offer 4th 7, years Q Valentine Place Refurbished warehouse with cooling Client Relationship Consultancy 1st 3, years Q Boundary Row Refurbished warehouse with cooling SO TV (Graham Norton ) 2nd 3, years Q Friars House, Blackfriars Road Grade A Practical Law Building 92, years Q Blackfriars Road Grade A The Overseas Development Institute Building 21, years Q Blackfriars Road Grade A United Business Media 11th - 20th 105, years SOUTHBANK INVESTMENT MARKET Date Address Description Price Yield PSF Q Southwark Street 61 Multi let office building 27,200, % 406 Q Metro House, Blackfriars Road 1970s office buildi ng, single let 3,300, % 407 Q Southwark Street 48, Saxon House Period Vacant Office building needing full refurb 2,100, Q Boundary Row 2-6 Vacant 1980s office building 9,250, h... LOW RATES PAYABLE... h... LOW CAP EX PROJECTED... h...

12 CAPITAL ALLOWANCES These may be made available to a purchaser, subject to separate negotiation. Details on request. VAT The property is registered for VAT. PRICE We are seeking offers in excess of 4.3m for the freehold interest, subject to contract and excluding VAT, to show a net initial yield of 6.0% after acquisition costs of 5.8%. The price reflects 413 psf before costs. FURTHER INFORMATION For further information or to arrange a viewing, please contact: Sam Stevens DDI: Mobile: ss@kinglypartners.com Andy Verschoyle DDI: Mobile: av@kinglypartners.com Subject to Contract and Exclusive of VAT. Messrs Kingly Partners for themselves and for the vendors of this property, whose agents they are, give notice that: i) These particulars are only for the guidance of prospective purchasers and do not form part of any offer or contract. (ii) Whilst the information contained herein is issued in good faith, neither the firm nor its clients guarantee its accuracy and it is not to be relied upon as statements or representation of fact. (iii) Any intending purchasers must satisfy themselves as to the correctness of each of the statements made herein. (iv) The vendor does not make or give, and neither the firm nor any of their employees have any authority to make or give, any representation or warranty whatever in relation to this property. (v) Nothing in these particulars constitutes a statement that the property and/or any services or facilities are in good condition or working order. (vi) These particulars were completed in June (vii) Kingly Partners will not be liable, in negligence or otherwise, for any loss deriving from these particulars. June 2013 Designed and produced by Oracle Creative h... LISTED MODERN OFFICE BUILDING... h... REVERSIONARY... h...