101 Newington Causeway London SE1Significant Zone 1 Development Opportunity

02 Executive Summary

06 Location

18 The Site

22 The Opportunity

40 Planning

42 Sales Process & Deal Structure

44 Market Research & Overview

48 Further Information

49 Contacts

2

Executive SummaryAn outstanding opportunity to create a landmark scheme through the redevelopment of the existing Salvation Army UK Territorial Headquarters

• Freehold development site located in the heart of Elephant & Castle

• Rare opportunity to create a mixed use scheme through redevelopment of Zone 1 site in London Borough of Southwark

• 0.65 acre (0.26 hectare) site currently occupied by Salvation Army UK & Republic of Ireland Territorial Headquarters

• Three buildings currently occupy the site: 10 storey existing B1 office building with basement, a 5 storey building used for publishing with ancillary shop, and a single storey building with staff facilities including prayer room and band practice hall

• Existing total gross internal floor space of the three buildings is approximately 8,446.7 sq m (90,918 sq ft) GIA

• The Salvation Army is to relocate to new premises within the borough

• Pre-application discussions with London Borough of Southwark in August 2018 for comprehensive redevelopment to provide 39 storey tower and 14 storey commercial building on-site

• Pre-application proposals include residential use (238 units) or student use (630 units) within a 39 storey tower, and a separate 14 storey office building with proposed total scheme GIA of up to 31,753 sq m (341,790 sq ft)

• The site has potential for a number of alternative uses subject to securing the necessary planning permission

• Expressions of Interest invited on a Subject to Planning basis

• Freehold

Computer generated image of pre-application scheme

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LondonThe city contributes £3 trillion to the UK economy and 21% of GDP

• London is now home to 8.7 million people, making it an increasingly diverse city to live and work

• London received 19.8 million international visitors staying overnight in 2017, generating £12bn annual revenue

• The capital is home to over 70% of FTSE Top 100 companies and 75% of Fortune Global 500 Companies have offices in London

• London accounts for 17% of the total UK student population and 32% of the UK’s foreign student population. Four out of the UK’s top ten universities are located in the capital

• British tech business attracted $7.8bn of funding in 2017, London is the largest tech sector hub in Europe with Google, Amazon, Facebook and Apple remaining in the city

• London residential market appeals to both international and domestic buyers with more than 80 nationalities purchasing property in London in 2017

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SE1 Elephant & Castle Elephant & Castle is undergoing a £3bn regeneration programme. The next 15 years will include:

• Creation of a new pedestrianised town centre

• Market square

• 5,000 new and replacement homes

• Up to 450,000 sq ft of retail space through redevelopment of Shopping Centre

• Integrated new public transport hub

• A new 2 acre park – the largest new green space in central London for 70 years

109

Tate Britain

Imperial War Museum

The Oval

Battersea

Park

Battersea

Power Station

University of

The Arts

Tate Modern

Waterloo

Southwark

The London Eye

River Thames

Tower Hill

Tower Bridge

City of London

Liverpool

Street

The Shard

Victoria

Pimlico

Sloane Square

Saatchi Gallery

Green Park

St James's Park

Newport Street Gallery

Vauxhall

Borough

V A U X H A L L

K E N N I N G T O N

Kennington

S O U T H B A N K

Elephant &

Castle

W E S T M I N S T E R

M A Y F A I R

C H E L S E A

Charing Cross

Covent Garden

Westminster

Westminster

Abbey

Lambeth Palace

T H E C I T Y

Burgess

Park

UCL

Cass Business School

Holborn

Oxford Circus

St Paul’s Cathedral

Bank

Blackfriars

Green Park

London Bridge

White Cube GalleryLondon South

Bank UniversityB E L G R A V I A Ministry of Sound

Knightsbridge

W A L W O R T H

US Embassy

British

Museum

M I D T O W N

W E S T E N D

Piccadilly Circus

B E R M O N D S E Y

Kennington

Park

Riv

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River Thames

Location

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Lifestyle, Culture & LeisureSE1 includes Waterloo, London Bridge & Elephant & Castle and some of the most visited tourist landmarks in London

• These areas are home to many of London’s key cultural sights including Tower Bridge, Shakespeare’s Globe, London Eye, The Shard, Tate Modern and Borough Market

• Imperial War Museum is in close proximity to the north west of the site

• London South Bank provides an extensive cultural offering with The Old Vic, IMAX, National Theatre and Royal Festival Hall

• Ministry of Sound - a world class music venue - is located in Elephant & Castle

• Mercato Metropolitano is a sustainable food market with extensive UK and Italian artisan offerings. The space also hosts popup events for the local community

• Popup venues nearby include Backyard Cinema and The Artworks providing a wide range of restaurants and vibrant leisure amenities

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Leicester Square

Piccadilly Circus

Bank

Moorgate

Oxford Circus

*Scheduled to open in 2020. Source: Transport for London.Excerpt from London Underground map.

Vauxhall

*Nine Elms Kennington

Pimlico Waterloo

Lambeth North

Elephant & Castle

Stockwell

Victoria

Westminster

Charing Cross

Bond Street

Green Park

Clapham Junction

London Bridge

New Cross Gate

Old Kent Road

Borough

Covent Garden

Bakerloo Line Extension scheduled for 2028 / 29

Transport & ConnectivityExcellent transport links demonstrated by the site's PTAL rating of 6b

• Elephant & Castle station is located approximately 200m to the south west of the site

• The station provides access to London Underground Bakerloo and Northern lines, as well as National Rail services

• Multiple bus routes run from a stop outside of the building along Newington Causeway and London Road to the south west

• Extensive cycle routes adjacent to the site further highlight the excellent site location and connectivity

Journey Times from Elephant & Castle Station

Bank 7 minutes

Farringdon 9 minutes

Blackfriars 10 minutes

Canary Wharf 13 minutes

Oxford Circus 14 minutes

King's Cross 21 minutes

Source: Transport for London.

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The Site101 Newington Causeway is a 0.26 hectare site. It is situated at the northern gateway to Elephant & Castle Opportunity Area

• The site occupies a corner position on the junction of Newington Causeway and Rockingham Street

• The existing site comprises a 10 storey building with basement, and is currently occupied as office premises for the Territorial Headquarters of The Salvation Army UK

• The site also houses Salvationist Publishing & Supplies (SP&S) a five storey building located off Tiverton Street which is the publishing house for TSA with an ancillary retail shop

• The third building on-site is single storey providing staff facilities including prayer room and band practice hall

• Existing total gross internal floor space of the three buildings is approximately 8,446.7 sq m (90,918 sq ft) with a breakdown by building provided on the measured survey in the dataroom

• The Salvation Army have been in occupation of the building since 1998 when the Territorial Headquarters (THQ) administration moved from the City of London to 101 Newington Causeway

• The building was originally constructed in 1982

• The site boundary is bordered by Newington Causeway to the west, and the recently completed ‘Pioneer Building’, a 22-storey residential tower to the north

• Tiverton Street is located on the eastern site boundary, together with the railway viaduct and the Rockingham residential estate. Immediately to the south is the Metro Central Heights, a Grade II listed, Erno Goldfinger designed residential development completed by St George in 1997

• Cycle and car parking spaces are also provided at the rear of the site at ground level

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The Opportunity Proposed Scheme Overview 101 Newington Causeway offers the opportunity to create a landmark residential-led, mixed use scheme in an improving Zone 1 location

Computer generated image of pre-application scheme looking south

39 Storey tower

630 student beds or 238 apartments

c. 250,000 sq ft GIA

14 Storey B1 commercial tower

c. 76,000 sq ft GIA

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Summary of Indicative Residential Led Scheme Proposals

Use GIA sq m GIA sq ftProposed Units

Division of Site by building

Residential (C3) 23,314sqm 250,956 sq ft 238 Block A (39 storeys)

Office (B1) 7,080sqm 76,207 sq ft Block B (14 storeys)

Retail (Flexible A1-A5/D1/D2)

310sqm 3,333 sq ftBlocks A&B ground floor

Total: 30,704sqm 330,497 sq ft

• This proposal provides 238 residential units in Block A, a 14 storey commercial building in Block B with retail units at ground floor level

• 238 proposed residential apartments totalling 23,314sq m (250,956 sq ft) GIA within Block A

• Proposed scheme arranged over basement, ground and 38 upper floors located on the southern part of the site

• Indicative layout of Block A provides 8 units per floor around a central core with 4 x 2 beds and 4 x 1 bed units, with each unit having private external amenity balconies

• The upper levels provide larger 3 bed units, with some of these units having access to landscaped roof terraces/gardens

• There are communal residential amenity spaces within the building at the lower and mid-level floors, including child play space areas

• Block B provides circa 7,080sqm (76,207 sq ft) GIA of office floorspace across basement, ground and 13 upper floors

• Each floorplate would comprise approximately 441sq m (4,746 sq ft) and a floor to ceiling height of circa 3.75m

• Across ground floor level of Block A and Block B, 310 sq m (3,333 sq ft) GIA of flexible A1-A5/D1/D2 retail is proposed to activate street frontages, particularly along Newington Causeway

• The central area between both buildings proposes a high quality landscaped area where members of the public, including pedestrians and cyclists can access and use as a public realm/open space

Residential Scheme

Residential Scheme Unit Mix

Unit Type

Number of Units

Average Unit Size

1 bed 104 (44%) 52 sq m

2 bed 120 (50%) 70 sq m

3 bed 14 (6%) 100 sq m

Total: 238

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Retail Unit 2

Stairs

Lifts

Circulation

Retail Unit 1

Reception

Main Entrance

Rockingham Street

Concierge / Office

Plant

Residential Cycle / Refuse Store

Ground Floor

FloorplansResidential

Lower - Mid Floor

Bed 2

Bed 1

Bed 1

Bed 2

Bed 1

Bed 1

Bed 1 Bed 2

Bed 2

Bed 1

Bed 1Bed 1

Lobby

Lobby

LobbyLobby WC WC

LobbyLobby WC WC

Lobby

Lobby

WC

WC

Stairs

Lifts

WC

WC

Circulation

K / D / L K / D / L K / D / L K / D / L

K / D / L K / D / L K / D / L K / D / L

Bed 2Bed 1

Bed 2

Bed 1

Bed 2

Stairs

Lifts

Circulation

Lobby

Lobby

Bed 3

Bed 3

WC

K / D / L

Roof Garden

K / D / L

K / D / L

Bed 1

Bed 1

K / D / L

Lobby

Lobby

WC

Bed 2

WC

WC

Upper Floor

Penthouse Floor

Bed 2

Bed 1

Bed 1Bed 2

Bed 3

Stairs

Lifts

Circulation

Lobby

Lobby

Bed 3WC

K / D / L

K / D / L

Roof Terrace

Roof Terrace

North North

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Computer generated image of pre-application scheme from Newington Causeway.

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Summary of Indicative Student Led Scheme Proposals

Use GIA sq m GIA sq ftProposed Units

Division of site by building

Student Accommodation (Sui Generis)

24,363sqm 262,249 sq ft 630 Block A (39 storeys)

Office (B1) 7,080sqm 76,207 sq ft Block B (14 storeys)

Retail (Flexible A1-A5/D1/D2)

310sqm 3,333 sq ftBlocks A&B ground floor

Total 31,753sqm 341,790 sq ft

• This proposal provides 630 student beds in Block A, a 14 storey commercial building in Block B with retail units at ground floor level

• 630 proposed units / beds for student accommodation totalling 24,363 sq m (262,249 sq ft) GIA within Block A

• Proposed student scheme arranged over basement, ground and 38 upper floors located on the southern part of the site

• Indicative layout proposes two x 10 bed cluster flats around a central core

• The proposed layout would have no single aspect north facing units and the common/amenity rooms would be strategically located on the corners of the building benefiting from views to the city centre and Elephant and Castle.

• It is intended that amenity/facility spaces (e.g. gym, games rooms, sky lounge) would be incorporated throughout the building in strategic locations

• Block B provides circa 7,080sqm (76,207 sq ft) GIA of office floorspace across basement, ground and 13 upper floors

• Each floorplate would comprise approximately 441sq m (4,746 sq ft) and a floor to ceiling height of circa 3.75m

• Across ground floor level of Block A and Block B, 310 sq m (3,333 sq ft) GIA of flexible A1-A5/D1/D2 retail is proposed to activate street frontages, particularly along Newington Causeway

• The central area between both buildings proposes a high quality landscaped area where members of the public, including pedestrians and cyclists can access and use as a public realm/open space

Student Scheme

Student Scheme Unit Mix

Unit Type

Number of Units

Average Unit Size

Standard 498 (79%) 13 sq m

Studio 132 (21%) 25 sq m

Total: 630

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Plant

StairsLifts

Student Cycle / Refuse Store

Retail Unit 2

Retail Unit 1

Concierge / Office / Post

Reception

Main Entrance

Rockingham Street

Ground Floor

FloorplansStudent

Lower - Mid Floor

Room 1

Room 2

Room 3

Room 4

Room 5

Room 6

Room 7

Room 8

Room 8

Room 7

Room 6

Room 5

Room 4

Room 3

Room 2

Room 1

WC

WC

WC

WC

WC

WC

WC

WC

WC

WC

WC

WC

WC

WC

WC

WC

WC WC

Circulation

Storage Storage

StairsLifts

Kitchen / Common Room

Kitchen / Common Room

Room 9Studio

Room 10Studio

Room 10Studio

Room 9Studio

Room 3

Room 2

Room 1

Room 1

Room 2

Room 3

Kitchen / Common Room

Room 5Studio

Room 4Studio

Room 5Studio

Room 4Studio

Kitchen / Common Room

WC

WC

WC

WC

WC

WC

Circulation

Storage Storage

WC WC

WC WC

Lifts Stairs

Roof Garden

Upper Floor

Amenity Floor

Student Amenity

Student Amenity

Student Amenity

Student Amenity

Student Amenity

Student Amenity

Storage / WC

Storage / WC

StorageStorage

Circulation

Lifts Stairs

North North

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Office Lift

Stairs

Retail Unit 3

Reception

Main Entrance

Waiting Area

Plant / Refuse

Ground Floor

FloorplansBlock B - Commercial

Office

WC

Lift

Stairs

Upper Floor

North North

Block B office building is the same on both student and residential pre-application scheme options.

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Ground Floor

Plant

Goods

Linen

Lifts Stairs

Kitchen Store

Bar Store

Staff

Office

Main Reception

Retail Unit 1

Retail Unit 2

Reception / Foyer

WC

Room 11

Room 12

Room 13

Room 14

Room 15

Room 16

Room 17

Room 7Room 8 Room 9 Room 10

Room 20 Room 19 Room 18

Room 6

Room 5

Room 4

Room 3

Room 2

Room 1

Linen Vending

Circulation

StairsLifts

Lower - Mid Floor

Upper Floor

Room 1 Room 2 Room 3Room 4

Room 5

Room 6

Room 7

Room 8

Room 9

Room 10Room 11Room 12Room 13

Linen Vending

Circulation

StairsLifts

Alternative UsesHotel & All Office Potential

• The site has potential for alternative uses including hotel or commercial use on-site.

• Hotel capacity for 612 bed hotel with outline envelope of 24,363 sq m (262,249 sq ft) GIA

• Commercial B1 led scheme with capacity for up to 20,620 sq m (221,962 sq ft) GIA

• Further details on these indicative capacity studies are available via the project website.

Indicative Hotel Scheme Layout

North

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Retail Unit 2

Retail Unit 1 Plant / Refuse

WC

StairsLifts

Reception

Main EntranceWaiting Area

Security / Office

Ground Floor

FloorplansIndicative All Commercial Scheme in Block A

WC

StairsLifts

Office

Office

WC

WC

North

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Planning The site’s location means a wide range of designations are applicable to the site within the London Borough of Southwark planning policy. Savills Planning have outlined the following adopted designations which apply to the site:

• Within Central Activities Zone (CAZ);

• Within Elephant and Castle Opportunity Area (OA);

• Within Elephant and Castle Major Town Centre;

• Within Enterprise Area and Area Core of the E&C OAPF;

• Within Borough, Bermondsey and Rivers Archaeological Priority Zone;

• Within Flood Zone 3;

• Within an Air Quality Management Area;

• Adjacent to Newington Causeway, a Classified Road A;

• Not statutorily or locally listed, although opposite is the Grade II listed Metro Central Heights, and further to the south of the site is the Grade II Listed Michael Faraday Memorial; and

• Subject to an Article 4 Direction which withdraws ‘permitted development’ rights for office to residential

In addition to the adopted designations listed above that are due to be carried over to the New Southwark Plan the site is subject to:

• Draft site allocation NSP45: Salvation Army Headquarters, Newington Causeway (“draft site allocation NSP45”) identified for a large-scale mixed use redevelopment to include residential and commercial uses

• The overall feedback from LBS officers from initial high level engagement with senior officers in 2016 highlighted the preference to locate the tower element to

the south of the site as this had a better relationship with the neighbouring Eileen House, and that further exploration of the ‘splitting’ of the blocks should provide an additional link or landscape space

Pre-Application August 2018

The formal pre-application meeting was undertaken with London Borough of Southwark in August 2018

Full details of London Borough of Southwark response to pre-application are available on the project dataroom. The pertinent areas of regarding the redevelopment of the site are outlined below:

• LB Southwark are fully supportive of a comprehensive redevelopment of the site

• Both the planning and design officers have confirmed a tall building on this site is acceptable in principle, subject to detailed design

• Large scale residential and office development of the site is acceptable

• The layout of the proposals was generally considered acceptable

• Officers advised that in light of the surrounding existing and emerging context, it was considered there was no significant harm to the adjacent listed building

The indicative scheme submitted for pre-application has only been reviewed by London Borough of Southwark. Any design proposal of this scale would also be required for review by Greater London Authority

View from 11th floor of existing building 4241

05

Sales Process & Deal Structure• 101 Newington Causeway is held freehold. As a charity the vendor is

required to run an open and transparent marketing campaign and the site will be sold by a two stage informal tender process

• The first stage will be to invite interested parties to submit an Expression of Interest by a fixed deadline to be confirmed

• Further to the Expression of Interest, a shortlist will be invited to participate in the Tender stage

• The vendor is not obliged to accept the highest or any offer and all submissions will be fully considered

• Further details of the information required to submit an Expression of Interest will be made available on the project dataroom in due course

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Market Research & OverviewDevelopment Pipeline & Local Schemes

• More than £3billion is being invested into the regeneration of Elephant & Castle, including new homes, improved infrastructure and the potential for 10,000 new jobs

• The proposed Bakerloo line extension from Elephant & Castle would improve connectivity throughout south east London as well as an opportunity to upgrade Elephant & Castle station itself

• 30 schemes across the postcode districts of SE1, SE11 and SE17 currently have planning permission, with the potential to deliver almost 5,000 private units over the next 5 years

• House prices in Southwark have increased by 62% over the last 5 years, compared to 53% on average across London

• Compared to the 2007/2008 peak, prices in Southwark have increased by 178% - the third highest of all London boroughs after Hackney and Waltham Forest

• The area is forecast to see house prices increase by 10.2% over the next five years

• The population of Southwark is forecast to increase by 11% over the next 10 years, according to Oxford Economics

• Three university campuses are located within Southwark. These include two colleges of The University of the Arts London, Guy’s Hospital, teaching hospital for King’s College London) and London South Bank University, which have over 17,000 students

Source: Savills Research

Elephant & Castle Market Comment

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251 Southwark Bridge Road Oakmayne

• 251 Southwark Bridge Road is a 41 storey residential tower comprising 273 private units and 65 intermediate apartments

• There is residents’ gym, private cinema, dining area, residents’ garden and restaurant

• The site includes 48,000 sq ft of office/ educational/ health uses (Use Class B1/D1) and retail use (Use Class A1-A5)

• The new Shopping Centre is a mixed-use redevelopment of the existing Elephant & Castle Shopping Centre and London College of Communication sites

• The scheme will comprise 979 residential units to rent across 2 phases, over 170,000 sq ft of new retail and leisure space, a 1,000 seat multi-screen cinema and a 500 audience capacity cultural venue.

• The developer will also build a new university campus for London College of Communications

• The scheme will also provide a new station entrance with escalators for access to Northern & Bakerloo line underground within the site

Elephant & Castle Shopping Centre Delancey

• Lendlease has been working in partnership with Southwark Council to deliver a £2.3 billion regeneration project in Elephant & Castle since 2013

• The project will deliver 3,000 new homes in the town centre (25% affordable housing)

• 6,000 new jobs (5,000 in construction and 1,000 in completed development)

• Creation of a 2 acre new park – the largest new green space in central London for 70 years

• Space for over 50 new shops, restaurant and cafés, including affordable retail space

• Up to 50,000 sq ft of workspace

• Phased delivery of site with practical completion of masterplan due in 2025

Elephant Park Lendlease

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Further InformationTechnical

A full suite of technical information is provided in the dataroom and includes:

• Full pre-application submission

• Technical Reports

• Existing Measured Surveys

• EPC

• Title Documentation

• Legal Development Summary document

Tenure

101 Newington Causeway is held freehold and registered under title number SGL285309.

VAT

The property is elected for VAT.

IMPORTANT NOTICE

Savills and their clients give notice that:

1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact.

2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise.

Brochure prepared September 2018. Design & print by GQ. gqdesign.com

Contact

Andrew Cox Director Residential Development Land acox@savills.com +44 (0)20 7016 3851

Lucy Robbie Associate Residential Development Land lrobbie@savills.com +44 (0)20 7409 5988

Richard Dawes Director Hotels Agency rdawes@savills.com +44 (0)20 7409 8106

Oliver Fursdon Director Commercial Development ofursdon@savills.com +44 (0)20 7409 5900

Jemma Aitken Quack Associate Director Commercial Development jaquack@savills.com +44 (0)20 7409 5974

Lizzie Beagley Director Residential Capital Markets lizzie.beagley@savills.com +44 (0)20 7016 3863

Further Information

All further information about the opportunity is available via the project website at:

www.101newingtoncauseway.co.uk

Viewings

All internal viewings are strictly by appointment only via the sole selling agents. Please contact any of the agents listed on this brochure to arrange a viewing.

Contacts

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