Freehold Office and Residential Investment Ames House 6-7 Duke of York Street St James s, London SW1
Investment Summary Core West End location. 15,987 sq ft (NIA) offices and 3,289 sq ft (GIA) of residential accommodation arranged over seven floors. Freehold. The property, offers multi-let offices and residential accommodation. The residential units are let on assured short-hold tenancies. The property currently produces 712,275 per annum net (inclusive of vendor guarantee). The property offers reversionary income following the letting of the vacant office and residential accommodation. Offers in excess of 14.25 million, subject to contract and exclusive of VAT showing a net initial yield of 4.7%, after the deduction of purchaser s costs at 5.7625%.
Location Ames House occupies a prominent position on the west side of Duke of York Street in the core St James s office market. Duke of York Street connects Jermyn Street to St James s Square, one of London s finest garden squares and exclusive West End office locations. Major office occupiers in the immediate vicinity include BP, RTZ, Polygram and Dunhill. The property is well positioned to benefit from access to some of the more prestigious retailing in the West End market with Fortnum & Mason, Alfred Dunhill, Hatchards and Turnbull & Asser in the immediate vicinity. Communications are excellent with Piccadilly Circus and Green Park (Piccadilly, Victoria, Bakerloo and Jubilee lines) Underground stations within easy walking distance and numerous bus services can be caught along Piccadilly immediately to the north. The area will be further enhanced following proposed developments by Hermes at 8 St James s Square and Standard Life and Bellhouse Joseph s redevelopment at 200 Piccadilly. These will further upgrade the quality of the stock in the area and attract new and substantial office and retail tenants. RE GENT S T R EE T PICCADILLY CIRCUS ALBEMARLE STREET DOVER STREET OLD BOND STREET BURLINGTON ARCADE Royal Academy of Arts SACKVILLE STREET P I C C A D I L L Y PICCADILLY ARCADE DUKE OF YORK STREET J E R M Y N STREET ST JAMES S AMES HOUSE LOWER REGENT STREET H A Y M A R K E T CHARLES II STREET GREEN PARK The Ritz ARLINGTON STREET ST JAMES S STREET BURY STREET KING STREET SQUARE RAC P A L L M A L L WATERLOO PLACE IOD GREEN PARK CLEVELAND ROW St James s Palace MARLBOROUGH ROAD Marlborough House ST JAMES S PARK T H E M A L L
N This plan is based upon the Ordnance Survey Map with the sanction of H.M. Stationery Office. Crown copyright reserved. The Property The property is of concrete frame construction with external brick elevations and a pitched tiled roof over. The accommodation is arranged over basement, lower ground, upper ground and four upper floors. The basement was converted into a lecture theatre for the owners and occupiers of the adjoining building of Chatham House, The Royal Institute of International Affairs. The lower ground to 2nd floors are in office use and the 3rd and 4th floors have been refurbished to provide five residential units. There are two entrances to the building. The lower ground floor is accessed via number 7 Duke of York Street, allowing this unit to be largely self-contained. This entrance also provides secure access and lift service to the residential units. The remaining offices are accessed via the main entrance at number 6 Duke of York Street. The property benefits from two lifts, one at either end of the property, air-conditioning to all offices floors, and excellent natural light from lower ground to 4th floors.
The property is completely self-contained following recent refurbishment. These improvements by the current owners included the installation of a new and comprehensive electrical heating and hot and cold water system. The residential floors have been fully refurbished and completed to a very high standard. All residential units have been furnished by the landlord in the last 12 months.
Tenancy Schedule Demise Tenant RRD LED Lease Area Rent Rent Comment Term sq ft psf B Royal Inst' Current Affairs n/a 24/12/2109 125 years 4,500 0 0.00 Peppercorn rent LG Springboard plc * 02/10/2005 01/10/2015 15 years 3,986 199,300 50.00 Mutual break option October 2010 UG Time & Tide * n/a 28/04/2009 5 years 2,387 84,000 35.40 New lease from 2004 1 Offices Vacant n/a tba n/a 2,603 117,000 45.00 See Vendors rental guarantee note 2 Next Pharma * 16/07/2006 15/07/2011 10 years 2,511 149,175 59.41 Sublet Boyden UK Ltd co-term lease 102,000 pax & rises to 108,375 @ 3rd year Pt 3 - Flat 2 Shell Employee * 04/10/2006 04/10/2006 1 year AST 780 37,800 n/a 726.92/wk 2 bed flat Benefits Trustee Ltd Pt 3- Flat 3 Shell Employee * 05/10/2006 05/10/2006 1 year AST 937 44,200 n/a 850/wk 2 bed flat Pt 4 Benefits Trustee Ltd Pt 3 - Flat 4 Vacant N/A N/A 1 year AST 398 23,400 n/a 450/wk 1 bed flat See Vendors rental guarantee note Pt 3 - Flat 5 Gucci * 16/08/2006 16/08/2006 1 year AST 604 26,000 n/a 500/wk 1 bed flat +terrace Pt 4 - Flat 6 Werner Teuffel * 01/11/2005 01/11/2005 1 year AST 570 36,400 n/a 700/wk 1 bed flat + terrace front and rear Totals 19,276 717,275 Less Landlords contribution to residential service charge 5,000 Net Rent 712,275 Notes: AST - assured shorthold tenancy Vendor Guarantees - Offices : 1 year s rent rates & service charge up to point of letting if let earlier - Residential : 1 year s rent up to the point of letting * - Rent deposits Tenure Proposal Offices Residential Freehold. Planning The local planning authority is Westminster City Council. The property is not listed but is within the St James s Conservation Area. Tenancies The property is currently let to four office tenants. The first floor offices are vacant and will be sold with the benefit of a vendor s rental guarantee. Four of the five residential units are let on assured short-hold tenancies (AST) and one unit is currently vacant and will be subject to a vendor s rental guarantee, if not let at point of sale. The total net income inclusive of vendor s rental guarantees is 712,275 per annum exclusive. Offers are sought in excess of 14,250,000 (Fourteen million two hundred and fifty thousand pounds) for the freehold interest, inclusive of vendor s furnishings in the furnished residential units and subject to contract. A purchase price at this level reflects a net initial yield of 4.7%, after the deduction of full purchaser s costs of 5.7625%. VAT The property has been elected for VAT and therefore will be payable on the purchase price. Investment Considerations Core Freehold Prime mixed use building immediately north of St James s Square Active management opportunities Reversionary potential on re-letting of vacant office and residential accommodation or residential sales.
Typical Floor Plan Not to scale, for identification only DUKE OF YORK STREET Viewings For further information or to arrange an inspection please contact: Bill Tyser Andrew Mayer 020 7382 2452 bill.tyser@amt.gb.com 020 7382 2451 andrew.mayer@amt.gb.com Andrew Mayer Tyser themselves and for the vendors of these properties, whose agents they are, give notice that: These particulars are set out as a general outline only for the guidance of intended purchasers and do not constitute, nor constitute part of, an offer or contract; All descriptions, dimensions, references to condition and necessary permissions for use and occupation and their details are given in good faith and are believed to be correct but any intending purchaser 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; No partner nor person in the employment of Andrew Mayer Tyser has any authority to make or give any representations or warranties in relation to this property or its particulars, nor enter into any contract relating to the property on behalf of Andrew Mayer Tyser nor any contract on behalf of the vendors; No responsibility can be accepted for any expenses incurred by intending purchasers in inspecting the property; Andrew Mayer Tyser has not made any investigations into the existence or otherwise of any issues concerning pollution and potential land, air or water contamination. The purchaser is responsible for making its own enquiries in this regard. OCTOBER 2005