A PRIME CENTRAL LONDON DEVELOPMENT OPPORTUNITY

Transcription

1 A PRIME CENTRAL LONDON DEVELOPMENT OPPORTUNITY

2 FITZROY SQUARE 2 2

3 INVESTMENT SUMMARY A prime Central London development opportunity with full planning consent for a residential-led, mixed-use scheme The site would also suit other potential alternative uses (STP) including: Prominently located on the corner of Cleveland Street and Clipstone Street in the heart of Fitzrovia Well positioned to benefit from the opening of Crossrail at Tottenham Court Road in 2018 n office-led redevelopment totalling 91, 847 sq ft NIA A (106,767 sq ft GIA) A 252 key boutique hotel scheme Development opportunity within a site area of 1.09 acres (0.44 hectares) For sale with the benefit of vacant possession and a new 150 year lease (for details see legal summary on page 28) Full planning consent for a new-build Assael Architects designed scheme of 187,601 sq ft GIA providing: We are instructed to seek offers for an 100% interest in the SPV Soho Data Holdings Ltd which benefits from an agreement to obtain the leasehold interest in The Cleveland 90 private residential units Private resident s amenities including a gym and car parking Seven commercial units (A1-A4, B1, D1, D2) Boutique covered petrol filling station (2 pumps) 15 on-site affordable residential units 3 3 INVESTMENT SUMMARY L O C AT I O N THE EXISTING SITE THE OPPORTUNITY A LT E R N AT I V E S C H E M E S F U R T HFURTHE E R I N FRO RINFORMATION M AT I O N

4 LOCATION 4 INVESTMENT SUMMARY L O C AT I O N THE EXISTING SITE THE OPPORTUNITY A LT E R N AT I V E S C H E M E S F U R T H E R I N F O R M AT I O N

5 CANARY WHARF THE CITY THE SHARD LONDON EYE REGENT STREET ST JAMES S PARK TOTTENHAM COURT ROAD GOODGE STREET OXFORD CIRCUS FITZROY SQUARE BRITISH MUSEUM BBC 5

6 Balcombe Street Park Road Glentworth Street Outer Circle REGENT S PARK Outer Circle Albany Street Warren Street Drummond Street York Street Gloucester Place Outer Circle Allsop Place Outer Circle REGENT S PARK Longford St. GREAT PORTLAND STREET Euston Road WARREN STREET EUSTON SQUARE Euston Road Crawford Street Seymour Place Montagau Place George Street Baker Street Gloucester Place Upper Berkeley Street Seymour Street Baker Street Chiltern Street Luxborough Street Nottingham Place Manchester Street Marlylebone High Street Duke Street Devonshire Place Devonshire Street Marylebone Lane Wigmore Street Wimpole Street Welbeck Street Harley Street New Cavendish Street Harley Street Wigmore Street Henrietta Place 6 Great Portland Street OXFORD CIRCUS Cleveland Street Wells Street Berners Street Eastcastle Street Great Marlborough Street GOODGE STREET Newman Street Gower Street Bloomsbury Street Gordon Square Tavistock Square Coram Street MARYLEBONE Seymour Place Edgware Road Marylebone Road MARBLE ARCH BAKER STREET PORTMAN SQUARE Euston Road MARYLEBONE George Street MANCHESTER SQUARE Oxford Street BOND STREET WESTERN TICKET HALL Portland Place EASTERN TICKET HALL CAVENDISH SQUARE MAYFAIR HANOVER SQUARE Regent Street FITZROY SQUARE Great Titchfield Street FITZROVIA Mortimer Street Goodge Street Tottenham Court Road Tottenham Court Road Wardour Street Percy Street Rathbone Place WESTERN TICKET HALL Dean Street SOHO SQUARE Store Street Frith Street TOTTENHAM COURT ROAD Greek Street BEDFORD SQUARE Great Russell Street Charing Cross Road British Museum RUSSELL SQUARE Oxford Street New Oxford Street SOHO Seven Dials et e

7 LOCATION The Cleveland is located in the vibrant and trendy area of Fitzrovia within the City of Westminster and is surrounded by the adjoining neighbourhoods of Mayfair, Soho, Marylebone and Regent s Park. An area steeped in tradition yet equally at the forefront of the capital s diverse range of shops, restaurants, bars and hotels, Fitzrovia offers a multitude of choice. For fine dining, nearby Charlotte Street has what many believe to be some of the capital s most popular restaurants including Michelin-starred Pied à Terre, Japanese inspired Roka and Elena s Etoile. For the more contemporary there is Riding House Café and Berners Tavern just a short stroll away. As a neighbourhood it also boasts a long history associated with the arts, indeed it is home to over 10% of London s art galleries and formerly witnessed greats such as Jimi Hendrix and Bob Dylan playing live in the local area during their early careers. For green spaces Fitzroy Square is just under 80 metres away from the subject site, whilst the expanse of Regent s Park is 600m to the north west. Although well-known as an office, restaurant, and retail location it also benefits from a increasingly vibrant residential community with recent developments such as Fitzroy Place reaffirming it as a prime residential London address. 7

8 LOCAL OCCUPIERS & AMENITIES OFFICE 11 Coca Cola Google BT Bridgepoint Capital Double Negative Estee Lauder Ricoh Exemplar Dennis Publishing BBC Facebook 7 LS EL E AR QU 9 EE T REET WIMPO REET LE ST Honey & Co Hakkasan Roka Berners Tavern Dabbous Pied à Terre Salt Yard The Riding House Cafe Villandry House of Ho TR Y ST ES TT LO AR 3 5 HARLE RESTAURANT NE EN AN EET THAYER STR SS RU 1 CH ET STRE QUE HOTELS The Sanderson Charlotte Street Hotel The London Edition The Soho Hotel Dean Street Townhouse The Langham Hotel 7. The Mandeville Hotel ETTA HENRI E PLAC 4 Bond Street 5 8 INVESTMENT SUMMARY L O C AT I O N THE EXISTING SITE THE OPPORTUNITY A LT E R N AT I V E S C H E M E S F U R T H E R I N F O R M AT I O N

9 CONNECTIVITY Cleveland Street is situated amid an excellent communication infrastructure which offers direct access to strategic road, rail and underground links. Baker Street Journey Time 1 min Euston Journey Time 1 min The London Underground can be accessed from Great Portland Street, Warren Street and Goodge Street stations (Circle, Hammersmith and City, Metropolitan, Northern and Victoria Underground lines) all of which are within a short walking distance of the site. For National Rail links, Euston and King s Cross are 1.1km and 1.6km respectively to the north east, while adjoining St Pancras offers international Eurostar trains to Paris, Brussels and beyond. Paddington Journey Time 9 mins GREAT PORTLAND STREET 5 minutes walk WARREN STREET 5 minutes walk King s Cross St. Pancras Journey Time 2 mins REGENT S PARK GOODGE STREET Key 7 minutes walk 8 minutes walk Bakerloo Central Circle District Hammersmith & City Jubilee Metropolitan Northern Piccadilly National Rail London Underground Elizabeth Line TFL Rail London Overground Riverboat Service Eurostar Heathrow Express Green Park Journey Time 1 min OXFORD CIRCUS 13 minutes walk Victoria Journey Time 3 mins TOTTENHAM COURT ROAD 13 minutes walk Waterloo Journey Time 5 mins Liverpool Street Journey Time 8 mins Victoria Waterloo & City 9

10 CONNECTIVITY - THE ELIZABETH LINE TOTTENHAM COURT ROAD The area will shortly benefit from the brand new Crossrail station at Tottenham Court Road. The plans include a dramatic regeneration of the surrounding public realm, to include a new public piazza around Centre Point, creating a distinctive new West End landmark location. Hayes & Harlingdon Paddington Bond Street 13 MINS WALK Farringdon Liverpool Street 13 mins Stratford To Shenfield Due for completion in 2018, the Elizabeth Line will provide: 24 trains per hour at peak times 200,000 passengers to complete journeys daily through the station Proposed journey times from Tottenham Court Road: Liverpool Street Canary Wharf Stratford Heathrow T1/2/3 Maidenhead 5 minutes 2 minutes 13 minutes 28 minutes 42 minutes To Reading Heathrow Airport 28 mins 5 mins 2 mins Tottenham Court Road 3 mins Surface Line 5 mins Tunnel 12 mins Canary Wharf To Abbey Wood National Rail Connection Note: Not all stations are shown Longer term it is proposed that Crossrail 2 will interconnect at Tottenham Court Road extending connectivity even further. Services are expected to open in the early 2030s and the legal safeguarding process is already underway to protect the preferred route and stations. Proposed Tottenham Court Road Elizabeth Line station Proposed Tottenham Court Road Elizabeth Line station 10

11 FITZROVIA NEW DEVELOPMENT PIPELINE L EL SS RU 6 Rathbone Square - Exemplar Proper ties - Great Por tland Estates plc units, 235 private, 50 affordable units, 142 private, 20 affordable - Mixed-use development - Mixed-use development - Completed Q Completion date Q The Charlotte - 55 units, 40 private, 15 affordable - Mixed-use scheme - Mixed-use scheme - Completed Q Completion date 2019 TE ET RE ST T TREE EY S 4 3 TREE OLE S 2 T Corner House 8 7 T LO - Derwent - 9 units HARL - Dukelease WIMP 3 ET RE ST AR The Artisan LE P MA CH 2 Fitzroy Place RE UA SQ Great Portland Street - Derwent - Mount Eden Land - 9 units - 31 units - Completed Q Mixed-use scheme 1 - Application pending The Fitzbourne - Oakmayne Proper ties - 8 units - Completed Q REET THAYER ST 4 6 REET NE ST N AN QUEE Centre Point - Almacantar 5-95 units, 82 private and 13 affordable - Mixed-use development - Completion date Q Bond Street 11 INVESTMENT SUMMARY L O C AT I O N THE EXISTING SITE THE OPPORTUNITY A LT E R N AT I V E S C H E M E S F U R T H E R I N F O R M AT I O N

12 EXISTING SITE 12

13 EXISTING SITE The island site is bounded by Clipstone Street to the south, Cleveland Street to the north and east, and Clipstone Mews to the west. The site currently comprises a two-storey concrete frame structure, constructed in the circa 1960s with a mixture of uses including retail (A1 and A4), office (B1) and a petrol filling station. The building has been stripped of all furniture, fixtures and partition walls, and currently stands as shell and core with the petrol station at the south of the site having also been decommissioned and made safe providing an incoming purchaser with the benefit of being able to imminently enact the consented scheme. Further information regarding existing servicing, the removal of asbestos, and trial pits will be made available within the data room hosted by Brechers. 127 to 16 EWS o 38 to 4 1 to to to m TCBs 90b PH 125 to 13 90a to 123 Cleveland Court a Surgery 32 GRAFTON WAY Posts to 10 8County PH TCBs 3 Bromley Place CONWAY STREET 4 PH 82 2a 1 to 244 Holcroft Court CLEVELAND STREET 2 1 CLIPSTONE MEWS 27.5m to LB 30 PH CLIPSTONE STREET Not to scale, indicative only 13

14 THE OPPORTUNITY 14

15 CONSENTED RESIDENTIAL SCHEME Full planning consent was granted on 10th November 2015 (ref: 14/11837/FULL) for an Assael designed scheme, permitting the redevelopment of the site into a prime residential led mixed use scheme comprised of: - 90 private residential units - 43 secure car parking spaces - Seven commercial units (A1-A4, B1, D1, D2) - Boutique covered petrol filling station (2 pumps) - 15 on-site affordable residential units This planning consent is subject to a S106 obligation totalling 4,948,880 and Mayoral CIL payment of c. 650,000. The consent provides 37 one-bedroom units, 36 two-bedroom units and 32 three-bedroom units, the majority of which have the benefit of outside space onto landscaped courtyard views. This unique scheme once refined and optimised, alongside its prime residential location, will have mass appeal from a wide target market including owner occupiers, investors and pied à terre buyers alike and as such we believe will encourage the very highest exit values. Since September 2015, Westminster City Council have sought to protect existing B1 office use. As such the future supply of high volume residential opportunities like The Cleveland are anticipated to be limited. Architects impression of The Cleveland consented scheme 15

16 CONSENTED AREA SCHEDULE The below tables outline the consented residential and commercial floor areas for The Cleveland. Net Area (sq ft) Net Area (sq m) Size Range Habitable Rooms Beds # Units % Mix Total Average Total Average sq ft sq m % Area Total Percentage 1 Bed 27 30% 15, , % 54 20% Private 2 Bed 31 34% 28, , , % 93 34% 3 Bed 32 37% 38,471 1,202 3, ,014-1, % % Summary 90 82, Bed 10 67% 5, % 20 61% Affordable 2 Bed 5 33% 3, % 13 39% Summary 15 9, Residential Total , Commercial/Retail/Restaurant Unit Number Use Class GIA (sq m) GIA (sq ft) Ground and Basement 1 A ,064 Ground and Basement 2 B1 1, ,911 Ground and Basement 3 A ,849 Ground and Basement 4 (Petrol Station) A ,563 Ground 5 A ,284 Ground and Basement 6 A3/A ,902 Commercial Total 3, ,574 Scheme Total 17, ,601* *Please note there is an existing basement car park of 15,562 sq ft 16

17 17 Architects impression of The Cleveland consented scheme

18 CONSENTED LOWER BASEMENT FLOOR PLAN KEY Clipstone Mews Gym/Residential Amenity Gym / Residential Amenity Cleveland Street N Not to scale 18

19 CONSENTED BASEMENT FLOOR PLAN KEY Clipstone Mews Office/B1 Retail A3/A4 RESI BIKE STORE 78 SPACES RESI BIKE STORE 88 SPACES Unit 1 A1 / GALLERY / RETAIL Unit 2 OFFICE / B1 Unit 3 A1/ B1 / D1 / D2 Unit 6 A3 / A4 COMMERCIAL BIKE STORE 40 SPACES CARPARK EXTRACT Cleveland Street N Not to scale 19

20 CONSENTED GROUND FLOOR PLAN KEY Clipstone Mews Office/B1 Retail A3/A4 Unit 2A OFFICE / B1 Unit 2B OFFICE / B1 Unit 1 GALLERY / RETAIL Unit 3 RETAIL Unit 4 RETAIL Unit 5 RETAIL Unit 6 A3 / A4 Cleveland Street N Not to scale 20

21 CONSENTED FIRST FLOOR PLAN KEY Three Bed Two Bed One Bed Clip ston em ews Cleveland Street N 21 Not to scale INVESTMENT SUMMARY L O C AT I O N THE EXISTING SITE THE OPPORTUNITY A LT E R N AT I V E S C H E M E S F U R T H E R I N F O R M AT I O N

22 CONSENTED SECOND-THIRD FLOOR PLAN KEY Three Bed Two Bed One Bed Clipstone Mews Cleveland Street N Not to scale 22

23 CONSENTED FOURTH-SIXTH FLOOR PLAN KEY Three Bed Two Bed One Bed Clipstone Mews Cleveland Street N Not to scale 23

24 CONSENTED SEVENTH FLOOR PLAN KEY Three Bed Two Bed One Bed Clipstone Mews Cleveland Street N Not to scale 24

25 CONSENTED EIGHTH FLOOR PLAN KEY Three Bed Two Bed Clipstone Mews Cleveland Street N Not to scale 25

26 C3 CONSENTED NINTH FLOOR PLAN KEY Three Bed Clipstone Mews Cleveland Street N Not to scale 26

27 CONSENTED TENTH FLOOR PLAN KEY Penthouse Roof Terraces Clipstone Mews Cleveland Street N Not to scale 27

28 LEGAL SUMMARY The owner currently holds the site pursuant to a lease dated 23 January 2012 for a term expiring on 16 January 2047 at a passing rent of 1.4 million per annum. The landlord and freeholder is Westminster City Council (WCC). An agreement dated 3 March 2014 is in place between the owner and WCC which dictates the terms of development, as summarised below. The original agreement dated 3 March 2014 provided for: - Payments totalling 300,000 have already been made to WCC. - A payment of 6.7 million is due to WCC (subject to increase or decrease as described below) upon the earlier of: the substantive commencement of the Re-Development works; and 3 months after the later of:- the expiry of the judicial review period following the grant of planning consent for the Approved Development; the date of completion of any related Section 106 Agreement; and the obtaining of all necessary releases, to enable the Approved Development to be constructed free of any rights of light claims by third parties. - The payment is subject to increase or decrease at the rate of per sq ft if the NIA of the development for which planning permission is obtained exceeds or is less than 87,784 sq ft. - Subject to practical completion of a mixed-use scheme on the site with residential use on the upper floors and commercial, retail and leisure uses on the ground floor and lower floors, WCC will accept a surrender of the existing lease and grant a new lease of the site for a term of 150 years at a peppercorn rent. - Immediately following grant of the new lease the owner will lease back to WCC the commercial space at ground floor and basement level for a term of 150 years (less 2 days) at a peppercorn rent. - The owner is to act as WCC s agent in securing initial occupational lettings of the commercial space. - Where the rental income generated by the commercial space is less than 1.4 million per annum during the period of 5 years from the date of practical completion then the owner is to top up the rent payable to WCC to such sum during such period. - Where the rental income generated by the commercial space is less than 1.4 million per annum as at the date 5 years from the date of practical completion then the owner is to pay to WCC a capitalised sum based on a 5% yield by reference to the following formula: S x 20 (less purchasing costs of 5.8% of such sum), S = the shortfall between the annual rent receivable from the commercial space on the date which is 5 years from practical completion of the Approved Development and 1,400,

29 LEGAL SUMMARY CONTINUED - Where the rental income generated by the commercial space is more than 1.4 million per annum as at the date 5 years from the date of practical completion then WCC is to pay to the owner a capitalised sum by reference to the following formula: U x 20 (less purchasing costs of 5.8% of such sum). U = the uplift between 1,400,000 and the annual rent receivable from the commercial space as at the earlier of:- (A) the date the commercial space becomes fully let; and (B) the date which is 5 years from practical completion of the Approved Development. - The owner is to pay sales overage to the Landlord (WCC) based on average private sales values achieved (price per sq ft) for the private residential units in the completed development. This is calculated as 25% payable to WCC between 1,500 psf and 1,550 psf; 35% between 1,551 psf and 1,650 psf; 50% above 1,650 psf. - The benefit of the agreement is personal to the owner until planning consent for the approved development is granted. (P A +B) x 50%. - If the owner lawfully assigns the benefit of the agreement before the expiry of a period of 36 months from the date on which planning consent is granted then such an assignment will trigger a further payment to WCC calculated by reference to the following formula:- Where:- P = the premium received by the owner for the assignment of the benefit of the agreement. A = The Initial Payment (Part One) - 100,000 and the Initial Payment Part Two ( 200,000) + the Subsequent Payment of 6,700,000 + any planning overage or minus any planning underage. B = the reasonable and proper cost incurred by the owner in securing the assignment. 29

30 ALTERNATIVE SCHEMES 30

31 ALTERNATIVE RESIDENTIAL SCHEME Following the consent of planning in late 2015, the design team have looked to refine the proposals in conjunction with Dara Huang at Design Haus Liberty. This has resulted in a variation of condition application submitted 24th February 2016 (ref: 16/01635/FULL) which seeks to provide: - External amendments including facade treatment, window and balustrade redesign - 74 private loft style residential units - Private resident s amenities including swimming pool and gym - 43 secure car parking spaces - Seven retail units - Boutique covered petrol filling station (2 pumps) - 15 on-site affordable residential units The application seeks 34 one-bedroom units, 28 two-bedroom units and 27 threebedroom units, 13 of which will be loft style duplexes. Architects impressions of The Cleveland alternative scheme 31

32 32 Architects impression of a potential unconsented scheme

33 OFFICE SCHEME FIRST FLOOR PLAN OFFICE REDEVELOPMENT: - The office redevelopment study provides 9,919.6 sq m (106,767 sq ft) GIA of new grade A office space in addition to the other commercial uses at ground and lower ground floor. KEY Offices - The office scheme uses the same massing and façades of the consented residential scheme. - DP9 have commented that it remains the position that an office led scheme incorporating ground floor mix uses (A Class uses and replacement Petrol Filling Station) would, in principle, be capable of securing support from Westminster given the current and emerging policy position and the supportive stance it takes towards office provision. This would be subject to the appropriateness of any proposed scheme in terms of its scale/ massing and its impact in relation to neighbouring amenity, transport considerations etc. Clipstone Mews - In April 2016, Westminster City Council (WCC) published its updated City Plan which now incorporates their new approach to mixed use policy. As the site continues to be located outside of the Core Central Activities Zone (CAZ), the mixed use policy requirements (as they relate to the provision of residential floorspace where an uplift in office floorspace is proposed) do not apply to the Cleveland Street site. For clarity on the new policy requirements DP9 have verbally rehearsed this position with WCC. WCC have reconfirmed that the mixed use requirements do not apply to sites outside of the Core CAZ. Cleveland Street - WCC, as freeholder, have confirmed that an office-led redevelopment would be acceptable subject to provisions around premiums and overage (to be agreed). Not to scale N 33

34 ALTERNATIVE COMMERCIAL SCHEME 34

35 HOTEL SCHEME FIRST FLOOR PLAN HOTEL REDEVELOPMENT: - The hotel redevelopment study provides: hotel rooms (of varying sizes) - Hotel NIA: 6,912 sq m (74,400 sq ft) - Hotel GIA: 11,341 sq m (122,073 sq ft) KEY Hotel rooms - The hotel scheme uses the same massing and façades of the consented residential scheme with a main reception entrance accessed off Cleveland Street. - DP9 have commented that in relation to a proposed hotel use, the site is not within the preferred locations where Westminster normally look to direct hotel uses. The adopted policy says: - New hotels will be directed to the Paddington, Victoria and Tottenham Court Road Opportunity Areas, the Core Central Activities Zone, Named Streets, the Knightsbridge Strategic Cultural Area and the North Westminster Economic Development Area. Hotels are directed to those streets which do not have a predominantly residential character sq m 14 LIGHTWELL sq m 22 sq m sq m sq m sq m sq m 37.8 sq m Clipstone Mews sq m 27.2 sq m sq m - Notwithstanding this, the site s proximity to the Core CAZ and central location mean that a case could still be made for a hotel use at this location but there would inevitably be significant interest in this from the neighbouring residential properties, particularly in Holcroft Court, and there would be likely to be a high level of objection to such proposals. WCC would need to be satisfied that all of the various amenity considerations associated with a hotel use and its proximity to neighbouring residential occupiers could be addressed sq m Cleveland Street sq m sq m - A hotel scheme would need to address the requirements in relation to incorporating a ground floor mix uses (A Class uses, replacement Petrol Filling Station). Not to scale N 35

36 FURTHER INFORMATION 36

37 FURTHER INFORMATION PLANNING The local planning authority is the City of Westminster and the property is not listed and lies outside of the Fitzroy Square Conservation Area. PROPOSAL We are instructed to seek offers for an 100% interest in the SPV Soho Data Holdings Ltd which benefits from an agreement to obtain the leasehold interest in The Cleveland. DATA ROOM Further information is available upon request. CONTACT TENURE The title of the property is registered under Title number NGL VALUE ADDED TAX The property is elected for VAT purposes. Tim Whitmey Luke Hawkesbury Lizzie Parrott James Mashiter Charlie Philip Tom Moore CBRE nor Savills give notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4 The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is 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 this 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. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. November

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