Executive Summary. Freehold.

Transcription

1

2 Executive Summary Freehold. Located in the heart of London s legal district, in a premier position and directly adjacent to the Royal Courts of Justice. Attractive Grade II listed building arranged over lower ground, ground and four upper floors providing circa 9,000 sq ft of Gross Internal Area with existing B1 (office) use. Detailed consent for 6 residential apartments (C3 use) comprising of 6,210 sq ft Net Saleable Area. Offers in excess of 5,500,000 (Five Million, Five Hundred Thousand Pounds) are invited for the Freehold interest, subject to contract and exclusive of VAT. I

3 Investment Rationale A beautiful Grade II listed investment opportunity for re-letting, owner occupation, or residential conversion. Vacant possession. The planning consent offers an excellent residential mix of 1, 2 and 3 bedroom apartments. Located in London s prime legal district, an area forecast for exceptional residential and commercial capital growth. II III

4 Russell Square Bloomsbury Square Gardens Russell Square Holborn Great Ormond Street Hospital Aldwych Quarter University of the Arts London Lincoln s Inn Fields King s College London Gray s Inn Gardens Royal Courts of Justice Chancery Lane Farringdon Middle Temple Gardens IV V

5 Blackfriars Waterloo Southbank Centre London Eye Westminster Embankment Temple Somerset Leicester Royal Aldwych Piccadilly House Square Courts of Quarter Justice Royal Opera House Lincoln s Inn Fields Chancery Lane VI VII

6 Location Located within the city of Westminster, Bell Yard is situated to the north of Temple, one of London s most famous legal establishments. The local area is home to many legal entities, including the Royal Courts of Justice and The Old Bailey. Due to the close proximity to the Law Courts surrounding Holborn, the area is a popular office location. In recent years however, the area has become increasingly popular as a residential location and the retail and restaurant operators have evolved in order to service the local demographic. Bell Yard is situated in close proximity to Lincoln s Inn Fields, the largest public square in London and providing attractive green open space for local residents and occupiers. Directly to the west of the site lies Covent Garden which is known for its many acclaimed theatres, restaurants and retail operators. An established location for professional, legal and financial sectors, and also a popular residential, retail and leisure destination in its own right. VIII

7 RUSSELL SQUARE CLERKENWELL ROAD E RUSSELL SQUARE BRITISH MUSEUM NEW OXFORD STREET HIGH HOLBORN SEVEN DIALS BLOOMSBURY SQUARE GARDENS 8 COVENT GARDEN BLOOMSBURY WAY COVENT GARDEN 7 6 STRAND RED LION SQUARE GARDENS 12 HOLBORN KINGSWAY ALDWYCH STRAND GRAY S INN GARDENS THEOBALD S ROAD LINCOLN S INN FIELDS HIGH HOLBORN 5 GRAY S INN ROAD ROYAL COURTS OF JUSTICE TEMPLE 13 CHANCERY LANE STRAND LEATHER LANE CHANCERY LANE HIGH HOLBORN HATTON GARDENS VICTORIA EMBANKMENT RIVER THAMES NEW STREET SQUARE HOLBORN VIADUCT SHOE LANE FARRINGDON FARRINGDON ROAD 6 15 FLEET STREET FARRINGDON STREET 3 3 COWCROSS ST NEW BRIDGE STREET ST. JOHN STREET SMITHFIELD MARKET CHARTERHOUSE STREET CITY THAMESLINK NEWGATE STREET LUDGATE HILL CITY THAMESLINK BLACKFRIARS ST. BART S HOSPITAL Business Occupiers 1 Lacoste 2 Farrer & Co 3 Deloitte 4 Coutts 5 Covington & Burling 6 CapGemini 7 Brunswick Group 8 Bird & Bird 9 Ashmore 10 Amazon 11 AECOM 12 Text Four New Square 14 King s College 15 Goldman Sachs Leisure Occupiers 1 Rosewood Hotel 2 Fleet River Bakery 3 Ye Olde Cheshire Cheese 4 Bleeding Heart Restaurant 5 Icecool Diamonds 6 Royal Opera House 7 Ivy Market Grill 8 Hoxton Hotel 9 AWC 10 Urban Golf 11 Roka 12 The Delauney 13 Bounce 14 Radio Rooftop Bar 15 Tom s Kitchen, Somerset House Situation 4 5 Bell Yard occupies a prominent position at the end of a terrace on the eastern side of the street and is directly adjacent to the Royal Courts of Justice. The site bordered by Chancery Lane to the east and Strand to the south, which is the main thoroughfare from the City to the West End. The street itself comprises predominantly commercial occupiers. X XI

8 Communications 4 5 Bell Yard is situated in very close proximity to a number of mainline rail and Underground stations providing excellent connections across London and beyond. Communications in the area are excellent and the site is centrally located in close proximity to both the City and the West End. Nearby Underground stations include Temple (District and Circle Lines), Holborn (Piccadilly and Central Lines) and Chancery Lane (Central Line). National Rail services are accessible via City Thameslink station which is situated 0.4 miles to the east of the site and operates services to destinations outside of central London. In addition to the existing transport links, Farringdon station will provide access to Crossrail on completion of the project in Crossrail will directly connect London s main business centres, linking Heathrow with Paddington, the West End, the City and Canary Wharf with up to 24 trains per hour. STRATFORD HAYES & HARLINGTON HANWELL EALING BROADWAY BOND STREET FARRINGDON WHITECHAPEL TO SHENFIELD > < TO READING SOUTHALL WEST EALING ACTON MAIN LINE PADDINGTON TOTTENHAM COURT ROAD LIVERPOOL STREET TO ABBEY WOOD > HEATHROW AIRPORT CANARY WHARF Faster journey times from Farringdon Station Crossrail will be available from Farringdon in 2018 FARRINGDON STATION TO: EXISTING CROSSRAIL Stratford 15 minutes 10 minutes Canary Wharf 24 minutes 9 minutes Paddington 14 minutes 7 minutes Heathrow Airport 64 minutes 31 minutes Source: Network Rail and TfL Artist s impression of the new Farringdon Crossrail Station. XIII

9 Description 4 5 Bell Yard is an attractive end of terrace; Grade II listed building located in the Strand Conservation area of the city of Westminster. The building itself is a mid-victorian era office building dating back to 1854 in the classical style and faced in stucco. The building provides six storeys with an additional mezzanine floor. Internally and externally the building has retained many of the features which allow it architectural standing in the local area and the Grade II listed status. Full details regarding the history of the building are available in the data room. XIV XV

10 Building Overview Existing Floor Plans The below table outlines the existing Gross Internal Areas and Net Internal Areas for the existing B1 office space. Existing Floor Areas FLOOR USE GIA (SQ M) GIA (SQ FT) NIA (SQ M) NIA (SQ FT) Lower Ground Ground Office Storage Office Reception ,453 1,367 Mezzanine Office FOURTH FLOOR THIRD FLOOR First Office 133 1, Second Office 136 1, ,045 Third Office 136 1, ,022 Fourth Office 117 1, TOTAL 839 9, ,578 SECOND FLOOR GROUND FLOOR MEZZANINE FIRST FLOOR GROUND FLOOR LOWER GROUND FLOOR Plans not to scale for indicative purposes only XVI XVII

11 Tenure The Opportunity The property is held Freehold under one individual title with the Land Registry; title number to 11 Andrews Crosse Passage Clifford's Inn Planning application number (15/07344/FULL) dated 10 August 2015 has been granted full approval by Westminster City Council for the Use from offices (B1) to residential (C3) to provide 6 apartments (4 x 2 bed units and 2 x 3 bed units), 2 front elevation windows shall be fitted on the lower ground floor, windows at the fifth floor shall be replaced with metal windows, creation of a terrace at roof level with associated railings, and a plant level roof is to be installed. Copies of the planning application as well as the historic building report can be found via Westminster City Council planning portal. 4 5 Bell Yard is located within the Strand Conservation Area to 3 Proposed schedule of areas 191 to The table below outlines the proposed Net Saleable Area for the consented residential scheme: Statue on site of Temple Bar STRAND STRAND to 28 APARTMENT FLOOR BEDS AREA SQ M AREA SQ FT G.1 Lower Ground & Ground G.2 Ground & Mezzanine First , Second 2/ , Third 2/ , Fourth XVIII XIX

12 Lower Ground Mezzanine floor G1 G2 COURTYARD COURTYARD Ground First floor G2 1.1 G1 COURTYARD COURTYARD Plans not to scale for indicative purposes only XXI

13 Second floor Fourth floor COURTYARD COURTYARD Third floor Fifth floor 3.1 COURTYARD COURTYARD Plans not to scale for indicative purposes only XXIII

14 Residential Market Commentary Residential Lettings Following on from a strong Q2, the West End residential market continued to perform well in Q3. The macro economy in the UK remains robust with consumer confidence at record highs and interest rates remaining low for the foreseeable future. Overall sales activity in the West End market was up 78% on last quarter and 41% up on this period last year. There has been a surge in sales activity to date in 2015, specifically for properties over 2m as the possibility of a mansion tax has now been abolished. The volatility in the Chinese stock market has also played an important role in the increased sales activity following the crash mid-june which saw shares drop and the Yuan become decreasingly devalued. In an attempt to avoid the volatility, Chinese investors have been concreting London s reputation as a safe haven for investment accounting for 13% of sales over the quarter, the second highest West End market share. In addition to the strong international presence in the market, we have also seen a resurgence of the domestic purchaser who now account for 50% of the sales completed in the West End market. Strong capital growth is forecast to continue for the area and the West End market is set to out-perform the more traditional prime areas of Central London as there is still opportunity in the value gap. The quality of stock in the area has risen dramatically over the past few years with an average sales value now in excess of 1,800 per sq ft. Below is a selection of recent comparable transactions nearby to Bell Yard: Sustained demand from the student market in the run up to the start of the academic year accounted for 49% of lettings agreed this quarter, with average weekly rent up 24% on the same time last year. The most popular units for student tenancies are one and two bedroom apartments, which accounted for 46% and 30% respectively of all student tenancies agreed. The average rent in the West End has now reached 655 and demand from the student population is expected to continue its growth path as global middle classes become increasingly mobile. Bell Yard is well placed to benefit from the local student population with prestigious educational institutions such as London School of Economics and King s College all in the nearby vicinity. Recent comparable transactions PROPERTY ADDRESS Broad Court PH 6, 21 Gatti House, Strand, Apt 1 Gatti House, Strand, Apt 2 POST CODE SALE PRICE SQ FT / SQ FT NO OF BEDROOMS FLOOR WC2B 3,250,000 1,483 2,192 3 Third / fourth EXCHANGE DATE Apr-15 WC2R 3,750,000 1,783 2,103 2 First Sep-15 WC2R 3,650,000 1,744 2,093 2 Second May-15 Hop House 12 WC2N 1,750, ,017 2 First Sep-14 Gatti House, Apt 3 Aldwych Chambers, Apt 16 Aldwych Chambers, Apt 17 Aldwych Chambers, Apt 7 Buckingham Street, Apt 5, 6-7 WC2R 2,750,000 1,363 2,017 2 Third & Fourth Aug-15 WC2R 2,350,000 1,168 2,012 3 Fourth Apr-15 WC2R 1,075, ,998 1 Fourth Apr-15 WC2R 2,232,500 1,163 1,920 Sep-15 WC2N 2,150,000 1,152 1,866 3 Third Jun-15 Aldwych Chambers Gatti House, Strand Hop House 12 XXIV XXV

15 Office Market Commentary Central London take-up decreased by 11% in Q to reach 3.6 million sq ft. Despite the fall, take-up remained above the 10-year average of 3.2 million sq ft. Take-up in Midtown increased 32% on the previous quarter totalling 565,100 sq ft and is 56% up on the 10-year average of 362,800 sq ft. Leasing activity in the quarter was led by the acquisition of three units over 50,000 sq ft at Aldwych Quarter by King s College London totalling 237,900 sq ft, the largest of which was at Bush House (104,100 sq ft). As a result of these lettings to King s College, the public sector represented the largest portion of take-up in Midtown in Q3 accounting for 53% of the total. The total availability in Midtown in Q remains significantly below the 10 year average at 1.1 million sq ft, and is likely to fall further towards the end of Despite the sharp fall in availability, the volume of vacant space available for immediate occupation increased over the course of the quarter, causing the vacancy rate to rise marginally from 2.5% to 2.6%. A total of 640,300 sq ft of development space has completed in Midtown so far in 2015, out of an anticipated full year total of 719,100 sq ft. Development completions are forecast to increase in the coming years to 1.3m sq ft in 2016 and 1.2m sq ft in Prime rents in Midtown remained unchanged in Q at per sq ft. Recent comparable transactions DATE ADDRESS FLOOR TENANT AREA (SQ FT) RENT (PER SQ FT) June 15 1 Kingsway Second Svenska Hadelsbanken AB Oct 15 9 Kingsway Seventh Chartered Institute of Building 13,950 sq ft ,364 sq ft August 15 Brettenham House, Lancaster Place Part First Lyceum Capital 5,576 sq ft August Chancery Lane Ninth Fitzalan Partners Limited 2,820 sq ft September Fetter Lane Ground Nintex 7141 sq ft September 15 Holborn Gate Fourth LaCoste 8548 sq ft XXVI XXVII

16 Proposal Tenure 4 5 Bell Yard WC2A 2JR is held freehold and registered with the Land Registry under the title number Planning The local planning authority is The City of Westminster and the property is located in the Strand Conservation area. EPC The Energy Performance Certificate will be made available in the data room. VAT The Property is elected for VAT and as such, VAT will be payable on the purchase price. Proposal We are instructed to seek offers in excess of 5,500,000 (Five Million, Five Hundred Thousand Pounds) for the Freehold interest, subject to contract and exclusive of VAT. XXVIII

17 For further information please contact: Charlie Philip +44(0) Residential Enquiries James Mashiter +44(0) Kathryn Durrant +44(0) Ben Deacon +44 (0) Commercial Enquiries Charlie Killen +44 (0) Lucy Dowling +44(0) DISCLAIMER: CBRE Limited CBRE Limited on its behalf and for the Vendors or Lessors of this property whose Agents they are, give notice that: 1. These particulars are set out as a general outline only for guidance to intending Purchasers or Lessees, and do not constitute any part of an offer or contract.2. Details are given without any responsibility and any intending Purchasers, Lessees or Third Parties 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. 3. No person in the employment of CBRE Limited has any authority to make any representation or warranty whatsoever in relation to this property. 4. Unless otherwise stated, all prices and rents are quoted exclusive of VAT. November siren +44 (0) sirendesign.co.uk S07071