Embed Size (px)
Citation preview
A PRIME MAYFAIR OFFICE AND RESIDENTIAL INVESTMENT OPPORTUNITY
INVESTMENT SUMMARY
• Prime Mayfair location, regarded as one of the West End of London’s
most prestigious office and residential addresses
• Rare opportunity to comprehensively refurbish/reposition a core
Mayfair property to let in the open market or for owner occupation
• The property provides well configured modern floor plates with
excellent natural light
• The floor plates of circa 2,000 sq ft are the most sought after size in Mayfair
• Multi-let to six tenants on flexible lease terms providing vacant
possession by 24 June 2014
• 12,476 sq ft of office accommodation over lower ground, ground and 4
upper floors with 2,046 sq ft of residential accommodation on the 5th floor
• Long leasehold interest from Grosvenor (Mayfair) Estate expiring
24 December 2115 (approximately 102 years unexpired) with a current
head rent of £39,800 per annum
• Net rent after deduction of head rent of £253,400 per annum
• Offers sought in excess of £18,000,000 (Eighteen Million Pounds) reflecting a capital value of £1,213 per sq ft
BROOK STREET LONDON W1
Taplow
Maidenhead Paddington
WhitechapelFarringdonIverSloughBondStreet
ActonWestEaling
TottenhamCourt Road
LiverpoolStreet
Burnham WestDrayton
Heathrow Airport
EalingBroadwayHanwell
Southall
Hayes &Harlington
Langley
ShenfieldRomford
Brentwood
HaroldWood
GideaPark
ChadwellHeath
Goodmayes
SevenKings
ManorPark
IlfordForestGate Stratford
CanaryWharf
CustomHouse
AbbeyWood
Woolwich
Maryland
CHARLES II ST
BER
WIC
K STREET
WAR
DO
UR
STREET
DENMAN ST
THE M
ALL
SPUR ROAD
QUEEN’S W
ALK
SOUTH STREET
FA
RM STREET
HAY’S MEW
S
MOUNT STREET
REEVES MEWS ADAM’S ROW
MOUNT ROW
UPPER GROSVENOR STREET
GROSVENOR STREET
HANOVER ST
BROOK STREET
CULROSS STREET UPPER BROOK STREET WOODS MEWS
GREEN STREET
NORTH ROW
SOU
TH AU
DLEY S
TREET
PARK
ST
DAVIES S
T
BROOK’S MEWS
DU
KE STR
EET B
INN
EY STREET
HILL S
TREET
HAY’S M
EWS
CHARLES STR
EET
BERKELEY STREET
SOUTH MOLTON STREET
GRAFTON ST
DOVER STREET
ALBEMARLE STREET
CORK STREET
OLD BURLING
TON ST
BURLINGTON GDNS
GLASSHOUSE ST
MILL ST SAVILE ROW
CLIFFORD ST
JERMYN STREET
WARW
ICK ST
BREW
ER ST
CARNABY ST
BROADWICK STREET
KINGLY ST
GT MARLBOROUGH STREET
POLAN
D STR
EET
STREET
ARG
YLL
CLARGES STREET
BOLTON STREET
STRATTON STREET
CURZON STREET
KING STREET
BRUTON PLA
CE
BRUTON STR
EET
COND
UIT
STRE
ET
MADDOX ST
LEXINGTO
N STREET
JAMES
STREET
REGEN
T STREET
PALL MALL
ST. JAMES’S STREET
BIRDCAGE WALK
SH
AFT
ESB
URY
AVE
REGEN
T STREET
OR
CH
AR
D S
T
PO
RTM
AN
ST
NEW
BOND STREET
OXFORD STREET
PARK LANE
PICCADILLY
OLD
BON
D STREET
GROSVENOR
SQUARE
HANOVER
SQUARE
PORTMAN
SQUARE
GOLDEN
SQUARE
ST. JAMES’S
SQUARE
BERKELEY
SQUARE
ST. JAMES’S PARK
HYDE PARK
Palace Gardens
GREEN PARK
ROYAL
ACADEMY
OF ARTS
ST. JAMES’SPALACE
BUCKINGHAMPALACE
OXFORD CIRCUS
BOND STREET
GREEN PARK
PICCADILLYCIRCUS
MARBLE ARCH
HAYM
ARKET
GILB
ERT STR
EET
Brook Street runs through the heart of Mayfair, one of the most exclusive districts in the West End of London. Mayfair is internationally recognised as Central London’s most prestigious and sought after office location.
Bounded by Oxford Street to the north, Regent Street to the east, Piccadilly to the south and Park Lane to the west, Mayfair sits in the core of London’s West End.
Mayfair is characterised by its attractive mix of period and modern buildings, providing a range of high quality office accommodation and residential dwellings. The desirability of this location to office occupiers is further enhanced by the high quality retail provision in and around Bond Street, South Molton Street and Mount Street.
Luxury retailers include Louis Vuitton, Dunhill, Chanel and Christian Louboutin. Hotels and restaurants including Claridge’s, The Connaught, Nobu, Cipriani and La Petite Maison are all located within a short walking distance.
Mayfair’s prestigious location has attracted a high number of corporate occupiers to the area including: Perella Weinberg Partners, Kleinwort Benson, BlueBay Asset Management, Qatari Diar, Blackstone, Condé Nast, Lazard and Estée Lauder.
The property is very well served by public transport, being situated within a short walking distance (200m) of Bond Street Underground Station (Central and Jubilee lines) to the north, Oxford Circus (Bakerloo, Central and Victoria lines) to the north east and Green Park (Piccadilly, Jubilee and Victoria lines) to the south. Regular mainline train services from Paddington and Victoria provide rapid access to Heathrow and Gatwick airports, with services every 15 minutes. London City Airport and St Pancras International Station (from where Eurostar services to Continental Europe operate) are accessible within approximately 45 minutes and 10 minutes respectively.
The Crossrail network is currently under construction and this will significantly improve communication links in the area. The new rail network, with an expected completion date of 2018, will provide high frequency and direct access to Heathrow in the west and Canary Wharf in the east. There will be direct commuter access through Central London with Crossrail stations at Paddington, Bond Street, Tottenham Court Road, Farringdon, Liverpool Street and Canary Wharf, increasing London’s existing underground capacity by 10%. Bond Street’s western ticket halls will be located only 100m from 73 Brook Street.
LOCATION COMMUNICATIONS
BROOK STREET LONDON W1
22.0m
23.1m
TCBs
Memorial
LB
BINNEYSTREET
DUKESTREET
WEIGHHOUSE STREET
DUKE'S YARD
4
1
Hanover Flats48to60
80
7
28
75
82
77
27
22
77
Hanover Flats81
12
Hanover Flats
75
2
9
87to
89
1129
to55
83
88
79
1to
12
13to
28
11a
85
84
6
athedralCatholic
Cycle HireStation
5
21.1m
22.1m
20.5m
23.6m
TCB
TCB
D
Three Kings Yard
ThreeKings
Yard
ST ANSELM'S PLACE
78
21
6044
46
28
2625
23 24
69
67
31
2
66
23
37
5411
9
36 35
59
Bank
1
10
29
62
38 to 41
14
49
43
67
8
5351
72
225
55
4
3941
33
PC
PH
48
17
18
1
50
Savile Club
32
3
64
71
35
52
15-1
6
53
61
20.9m
RTSTREET
NNEYSTREET
21
1 to 5
25to
47
Moore Buildings
hBuildings
krainian
21to38
2
LBOU
DAVIESSTREET
WEIGHHOUSE STREET SOUTH MOLTON LANE
58
56
7
TA Centre
19
6
0m 10m 20m 30m
Ordnance Survey © Crown Copyright 2013. All rights reserved. Licence number 100020449. Plotted Scale - 1:1250
73
Brook Street is prominently positioned within Mayfair, between Grosvenor Square to the west and New Bond Street to the east and one block north of Grosvenor Street. The property occupies a prime position on the south side of Brook Street, close to Grosvenor Square.
Claridge’s, the most iconic five star hotel in London, is situated on Brook Street 100m from the property.
Many international banks, hedge funds, wealth management companies, law firms and embassies choose to locate on Brook Street and in the immediate area, attracted by the prestigious address and the amenities offered by the West End.
BOND STREET
OXFORD STREET
HYDE PARKTHE CONNAUGHT
GROSVENOR SQUARE
CLARIDGE’S GREEN PARK
GROSVENOR STREETBERKELEY SQUARE
SITUATION
BROOK STREET LONDON W1
DESCRIPTION73 Brook Street’s prominence is enhanced by its significant frontage. The property comprises a multi-let office building arranged over lower ground, ground and four upper floors totalling 12,476 sq ft (1,159.1 sq m) with a 2,046 sq ft (190.1 sq m) residential flat on the fifth floor.
At ground floor level the manned reception leads to a curved staircase and 2 passenger lifts providing access to all office floors. The ground floor offices can be accessed from an independent entrance on Brook Street. The lower ground floor offices, benefiting from excellent natural light, can be accessed via the main reception, or directly from the ground floor office. This allows the ground and lower ground offices to be let as a self contained unit. A ground floor double garage, accessed from 3 Kings Yard is located at the rear of the building.
The specification of the open plan offices includes the following:
• Air-conditioning
• Fully accessible raised floors
• Suspended ceilings
• Two 6-person, 409kg passenger lifts
• WCs on each floor
• Concierge
• 2 secure car parking spaces
BROOK STREET LONDON W1
GROUND FLOOR 1,806 SQ FT / 167.8 SQ M
TYPICAL FLOOR 2,074 SQ FT / 192.7 SQ M
FIFTH FLOOR 2,046 SQ FT / 190.1 SQ M
LOWER GROUND FLOOR 2,256 SQ FT / 209.6 SQ M
PLANT
VAULT
GARAGE
RECEPTION
SKYLIGHT
PLANT
Floor plans are not to scale. For identification purposes only.
FLOOR PLANS
BROOK STREET LONDON W1
BROOK STREET LONDON W1
The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition). The approximate net internal floor areas are outlined below:
FLOOR USE SQ FT SQ M
5th Residential flat 2,046 190.1
4th Office 1,971 183.1
3rd Office 2,074 192.7
2nd Office 2,215 205.8
1st Office 2,154 200.1
Ground Office 1,806 167.8
Ground Reception 312 29.0
Lower Ground Office 2,256 209.6
TOTAL 14,834 1,378.1
ACCOMMODATION TENANCY SCHEDULE
TENUREThe property is held long leasehold from Grosvenor (Mayfair) Estate for a term of 125 years commencing on 25 December 1990 and expiring on 24 December 2115 (approximately 102 years unexpired).
The headlease terms are as follows:
• Freeholder: Grosvenor (Mayfair) Estate
• Lease Commencement: 25 December 1990
• Lease Expiry: 24 December 2115
• Term: 125 years (102 years unexpired)
• Current head rent payable: £39,800 per annum
• Permitted Use: Offices with residential on the 5th floor
• Review Date: 5 yearly intervals with the next review on 25 December 2015
• Review mechanism: The revised rent is to be the aggregate of £2,050 plus 5% of the increase (if any) between £25,000 and the current full market value at the review date.
FLOOR TENANT FROM/TO BREAK OPTION RENT PA AREA SQ FT COMMENTS
Fifth Ian Philion 30/03/2012 -29/03/2014
Rolling Landlord break, 3 months notice
£52,000 2,046 Outside the L&T Act.
Fourth Maslow Capital LLPMagyar & Co Ltd Amsterdam & Partners LLP
01/04/2013 - 24/06/2014
Landlord on or after 25 December 2013 with 3 months notice
£80,000 1,971 Outside the L&T Act.
Third Acropolis Capital Management Ltd
06/02/2013 -28/09/2015
Tenant - any time with 1 months noticeLandlord - any time after 24 June 2014 with 6 months notice
£0 2,074 Outside the L&T Act. In the event of landlord activating break Acropolis entitled to receive a cash sum equivalent to the balance of ‘headline’ rent in the sum of £117,070 per annum from the date of termination up to the lease expiry in September 2015 that would have been outstanding under their previous lease terms.
SC capped at £16.70 psf subject to annual increase in line with RPI.
Second The ECU Group Plc
19/11/2012 - 29/09/2015
Mutual after 25 December 2013 with min 3 months notice
£66,450 2,215 Outside the L&T Act. SC capped at £18.00 psf subject to annual increase in line with RPI
First ALMC HF 08/05/2012 -24/12/2014
Mutual after 8 November 2012 with min 3 months notice
£63,390 2,154 Outside the L&T Act.
Ground Txt Services Ltd
04/12/2012 - 25/12/2014
Mutual after 25 December 2013with min 3 months notice
£31,360 1,806 Outside the L&T Act.
Lower Ground Vacant 2,256 Outside the L&T Act.
SUB TOTAL £293,200
Head rent £39,800
TOTAL £253,400
BROOK STREET LONDON W1
MARKET COMMENTARYOccupational Market
Occupational confidence in the core West End office market remains high. There continues to be strong demand for new or refurbished units and especially those of 2,000 - 3,000 sq ft. Rents in excess of £100.00 per sq ft are being achieved on the best quality office space in the most sought after locations.
Rental growth is expected to resume in 2013 driven by the limited supply pipeline and low levels of availability throughout Mayfair as demand from tenants for the highest quality accommodation continues.
Grade A vacancy in Mayfair and St James’s stands at 4.1% against the ten year average of 4.4% and is forecast to reduce further due to the significant number of office to residential schemes that have or are being consented.
Recent Mayfair leasing transactions are detailed below:
DATE ADDRESS SIZE(SQ FT) FLOOR TENANT RENT (£ PER SQ FT) LEASE TERM
February 2013 5 Hanover Square, W1 7,614 5th Angola LNG £105.00 10 years with break at 5
December 2012 15 Sackville Street 5,349 5th Gulfstream £100.00 10 years
August 2012 3-5 Burlington Gardens, W1 3,200 4th Lone Pine Capital £105.00 10 years
August 2012 1 Grafton Street 4,887 2nd Abraaj Group £102.50 10 years with break at 5
August 2012 25 Hanover Square 1,654 5th & 6th Zais £100.00 10 years with break at 5
Investment Market
2012 saw £5.8 billion invested in London’s West End office market, the highest turnover since the financial crisis and the third highest on record. Investors have continued to concentrate on assets in core locations, relishing the opportunity to invest in this highly liquid and transparent market with strong rental growth prospects.
Overseas investors accounted for circa 65% of all transactions in 2012 with overseas capital forecast to continue to flood into London. Investors are attracted by the quality of assets available, high quality tenants, limited supply pipeline and the favourable exchange rates available.
West End prime office yields currently stand at 4.00% and have been at this level since 2009. The number of investors actively pursuing the limited number of assets being openly marketed will maintain pressure on prime yields.
ADDRESS AREA (SQ FT) TENURE PRICE CV (PSF) NIY DATE
*1 Grafton Street, W1 37,400 Freehold £80m £2,100 4.10% February 2013
50 Grosvenor Street, W1 13,704 Long leasehold £17.6m £1,284 4.47% December 2012
30 Berkeley Square, W1 52,000 Long leasehold £100m £1,923 N/A October 2012
24 Brook Street, W1 2,549 Freehold £5.53m £2,169 2.90% October 2012
39 Upper Brook Street, W1 8,394 Freehold £14.3m £1,704 N/A May 2012
63 Curzon Street, W1 7,999 Freehold £13.0m £1,625 N/A March 2012
3 Savile Row, W1 14,010 Freehold £33m £2,366 3.78% February 2012
* Reported to be
PLANNINGThe property is situated in the jurisdiction of Westminster City Council. It is not listed, but lies within the Mayfair Conservation Area.
VAT The property is registered for VAT.
EPCThe property has an EPC rating of F. A full Energy Performance Asset Rating Certificate is available on request.
PROPOSALOffers are sought in excess of £18,000,000 (Eighteen Million Pounds) subject to contract and exclusive of VAT. A purchase at this level equates to £1,213 psf on the current net internal floor areas.
MISREPRESENTATION ACT 1967 & DECLARATIONMisrepresentation Act 1967. Montagu Evans LLP for themselves and for the vendors or lessors of this property whose agents they are, give notice that: (i) The particulars are set out as a general guideline only for the guidance of intending purchasers or lessees and do not constitute the whole or any part of an offer or contract. (ii) All descriptions, dimensions, references to condition and necessary permissions of the use and occupation and other details are given in good faith without responsibility whatsoever and any intending purchasers or tenants 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. (iii) Neither Montagu Evans LLP nor their employees has any authority to make or give any representation or warranties whatsoever in relation to the property. (iv) Unless otherwise stated, all prices and rents are quoted exclusive of VAT and intending purchasers or lessees must satisfy themselves independently as to the applicable VAT position. (v) All the plans and maps provided within the particulars are for identification purposes only. April 2013. Designed and produced by Cooper Rose 020 3440 5160.
JAMES PARGETER
D +44 (0) 20 7312 7503M +44 (0) 7775 607725E [email protected]
PAUL GUMMER
D +44 (0) 20 7866 8611M +44 (0) 7966 784972E [email protected]
For further information and access to the data room please contact:
