OFFICE - Kier Group/media/Files/K/Kier/documents/capabilities/Property...a new office, an hotel and residential accommodation. In addition to Siemens’ growing anchor presence, the

OFFICEPortfolio

Kier Property

The Property division is an integral part of the Kier Group and we are keen to utilise Group resources to continue to grow the business.

Kier’s Property division undertakes investment, development and asset management across a broad spectrum of property assets.

Kier has built up an enviable track record of performance within the office market and our success is driven by determination not to overcomplicate the development process, and deliver against key milestones for occupiers and investors.

The office portfolio outlined in this brochure demonstrates our ability to add value in prime locations having successfully delivered more that £270m of office space in the UK.

Kier Property continues to expand and be inquisitive for new opportunities in the commercial sector throughout the UK.

INTRODUCTIONKIER PROPERTY INTRODUCTION

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INTRODUCTION

KIER PROPERTY CONTENTS

01 Kings House, Hammersmith 4

02 58 Victoria Embankment 6

03 University of Reading 8

04 One Reading Central 10

05 Siemens 12

06 Ordnance Survey 14

07 UK Supreme Court 16

08 National Trust 18

09 3 Savile Row 20

10 Electronic Data Systems 22

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CLIENT: Speculative

LOCATION: Kings House, 174 Hammersmith Rd, London

PrOjECT rOLE: Developer / Contractor

VALuE: £42 million

KIER PROPERTY OFFICES

01_KINGS HOUSEHammERSmITHKier acquired Kings House for speculative development. Kier Property identified Kings House as an excellent office development opportunity in the heart of Hammersmith, which currently has a disproportionate low level of Grade ‘A’ supply. The proposal is to demolish the existing 33,000 sq ft office space and develop a new 60,000 sq ft office building over 6 floors.

This speculative scheme has planning consent for the delivery of a first class headquarters building. Demolition of the existing 1960’s premises took place in 2014 with completion forecasted for 2016.

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While the footprint has remained virtually constant, the massing has been subject to sundry revision throughout consultation. The original proposal was marginally taller (by one floor) than neighbouring Latymer Court, as often befits the “bookend” urban townscape role of such sites, but this has been omitted at the behest of officers and various other subtleties of massing employed to refine the mass. A set back to the pent-floor has been introduced, including a blue sky break at top floor level from Latymer Court. A study to emphasise the corner by leaning out was tested and rejected and various subtleties associated with sunlight daylight incorporated and these too are illustrated below, culminating in the application massing as illustrated. As can be seen, the modelling is often examined in plain box form devoid of the application of wall plane detailing.

3.3. Proposed Massing

Left: Early massing modelling. Above: the final massing modelling forming the application, the top pent floor being level with the Gambrell roof of Latymer Court.

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CLIENT: FOrE Partnership

LOCATION: Victoria Embankment, London


VALuE: £30 million


02_58 VICTORIa EmbAnKmEnTFORE Partnership and Kier acquired 58 Victoria Embankment from the City of London Corporation. The property has a unique location on the northern embankment, across the River Thames from the famous Sea Containers House and OXO Tower, near to the recently refurbished Blackfriars Station. Plans to redevelop the prominent 34,000 sq ft building on Victoria Embankment, which was previously occupied by Hm Courts and Tribunals Service, are now being progressed. The outline proposals will see the building transformed into new Grade ‘a‘ offices offering tantalising views over the River Thames.

FORE Partnership, a London based investment company acting on behalf of Family Offices, funded the acquisition with co-investor Kier.

The structure of the transaction signifies Kier’s preferred approach for securing prime sites in London and expanding its portfolio in the capital through co-investment.

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CLIENT: university of reading

LOCATION: Whiteknights Campus, Reading


VALuE: £18 million


03_UNIVERSITY OF READInGKier’s partnership with the University of Reading on its Whiteknights campus.

The brief from the University of Reading (UoR) was for a landmark 55,000 sq ft Enterprise Centre to be designed and made as sustainable as possible. Design features include green and brown roofs, sun pipes, solar hot water heating and high efficiency chillers, all within a commercially viable project. The design was led by Kier working in partnership with UoR.

In return for a land payment made by Kier, the University committed to a lease on institutional terms. The scheme was developed on an open book basis with a revenue profit share agreement.

The scheme was funded by merchant Place Corporate Finance Limited.

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We selected Kier as our preferred developer at a very challenging time in the economy. Their partnership approach, integrated corporate model and strong balance sheet were all key factors in their selection. From the outset they adopted a ‘can do’ attitude and worked well with the client team to design and deliver a bespoke environmentally friendly building that met our key requirements in particularly tight timescales. We view the project as a real success and are proud of the landmark building that has been delivered and look forward to strengthening our relationship with Kier in the future.”

David Gillham,Director of Research & Enterprise Services

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CLIENT: Scottish Widows

LOCATION: Town Centre, Reading


VALuE: £48 million


04_OnE READInG CENTRaLa major new office development on the site adjoining the National Headquarters of Cable & Wireless. One Reading Central, a BREEam ‘Excellent’ building, is to date the largest office building development in central Reading.

The town-centre scheme was developed speculatively in a truly out of town scale, with 22,000 sq ft floor plates, and a double height reception.

The iconic development was a joint venture between Kier and Scottish Widows and completed ahead of programme.

Construction on One Reading Central started in October 2007 and in December 2007 Kier secured a pre-let to Yell plc, who committed to take 153,000 sq ft over 7 floors of the 10 storey building.

One Reading Central is a large scale building in the heart of a regional hub making it ‘The Ultimate Workplace’.

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They were so positive and had such a great product, offering big floorplates in the city centre next to the station. It is also a very striking building and when you look at who Yell is, it was just right for our staff.”

Simon Taylor, Head of Global Property, Yell.com

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CLIENT: Siemens

LOCATION: Princess Road, manchester


VALuE: £80 million


05_SIEmENSIn consultation with manchester City Council (mCC), Siemens plc has selected Kier as its preferred development partner to enter into detailed negotiation for the future of its prime 20 acre Princess Road site in South manchester.

Siemens employs 800 people on the site and has plans to increase this to 1,200 in the next three years via the development of offshore wind power transmission technologies. The investment and job creation is due to national and international investments in green infrastructure.

Siemens and the City Council working with Kier Property will now bring forward a mixed-use scheme primarily for commercial use. The scheme will be anchored by a new 100,000 sq ft office building for use by Siemens whilst the in situ Sir William Siemens House will be refurbished. The balance of the site will be developed in phases to provide a new office, an hotel and residential accommodation. In addition to Siemens’ growing anchor presence, the development will strive to harness manchester’s market leading credentials in the fields of science and innovation; forging direct and indirect links with the region’s leading universities and knowledge based businesses in the sustainable sector.

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CLIENT: Ordnance Survey

LOCATION: Southampton


VALuE: £34 million


06_ORDNaNCE SURVEY In 2010, we delivered a new freehold 175,000 sq ft headquarters for Ordnance Survey in Southampton.

The new headquarters achieves a bREEAm ‘Excellent’ rating and enables Ordnance Survey (OS) to introduce new working methods for its staff. The Kier team has worked very closely with OS and its advisers to ensure that the new building meets all the necessary occupational requirements, and utilises the space available in an efficient manner.

The development includes an acoustic wall parallel to the buildings front elevation, to minimise noise from the adjacent m271 motorway. Whilst this feature increased build costs, it reduced background noise, thus allowing a more sustainable form of mixed mode ventilation. The cost was offset against there being no need for a fully integrated air conditioning system.

a key factor of financing this development was the ability of Kier to maximise value from the existing OS estate to part finance the new headquarters building. By concluding a single transaction with Kier for both the new headquarters and the disposal of their existing site, OS was able to avoid ‘value leakage’.

Kier also explored life cycle costing and long-term maintenance with the occupier, in order to influence plant and equipment specification ahead of occupational fit-out.

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CLIENT: Ministry of justice

LOCATION: UK Supreme Court, London


VALuE: £34 million


07_UK SUPREmECOURTKier completed the refurbishment works to the Grade II* listed middlesex Guildhall in Parliament Square.

Against intense competition, Kier was chosen as an integrated developer and contractor to create the new United Kingdom Supreme Court – the pinnacle of the judicial system replacing the House of Lords as the highest court of appeal in the UK.

The key to Kier Property’s success was our ability to provide the ministry of Justice (moJ) with a co-ordinated approach resulting in delivery on time, on budget and to the highest quality. moJ wanted to retain long-term control of the freehold interest, whilst at the same time financing the works through a structured investment lease, thereby creating the revenue stream to fund the development works. Kier’s solution saw the moJ enter into a 30 year leasehold commitment at an annual rent with fixed minimum uplifts, which in return enabled us to finance and complete the refurbishment. The completed development was sold to an institutional investor on completion.

Another aspect unique to Kier as a developer/contractor was the ability to deal with change orders throughout the project as the precise requirements of the occupier were refined.

The completed development was bought by m&G Investments.

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The renovation of Middlesex Guildhall has now been completed on time and within budget by Kier Group Plc. The renovation works have been completed to the highest standard, as appropriate for its setting and required for a Grade II* listed building.”

mr Jack Straw, The Secretary of State for Justice and Lord Chancellor

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CLIENT: The National Trust

LOCATION: Swindon


VALuE: £20 million


08_NaTIONaL TRUSTFollowing an organisational review, the national Trust decided to withdraw from its headquarters in Westminster and a number of local offices, to a new Headquarters in Swindon.

Kier was selected as preferred developer, ahead of intense competition, as a result of its experience and integrated approach to occupier-led projects.

Kier’s role was to complete the site acquisition, fund construction costs and fees, bear the responsibility of cost overruns and deliver the building on time. Our tailored solution allowed an orderly decanting of staff to the new offices, with minimal disruption.

Kier worked with the National Trust to design office accommodation that improved productivity and financial efficiency. The new building represents state of the art design, is naturally ventilated and adheres to the national Trust’s sustainability principles. In January 2005 the building received an ‘Excellent’ bREEAm rating, and has since gone on to win over 17 sustainability awards.

Key project issues included ensuring the new building pioneered sustainability, respected adjacent listed buildings and maximised financial returns for the National Trust. The building was forward sold to real estate investment vehicle AAIm.

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CLIENT: Abercrombie & Fitch

LOCATION: Savile Row, London


VALuE: £33 million

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09_3 SaVILE ROWKier purchased this Grade II* listed building situated on Savile Row in the heart of Westminster in november 2007.

Savile Row, ‘The Golden mile of tailoring’ is located in mayfair in London’s West End and is famous for housing some of the world’s most bespoke tailors. It is located close to some of the best known international retailing brands such as Burberry, Tiffany & Co and apple.

The iconic property was built in 1733 and has had an interesting history; (the Bowler Hat was invented in 1950, and where in 1969, the Beatles famously held their last performance on the rooftop of apple Corps offices) in February 2008, Kier was granted planning permission to extend the building.

In august 2011, Kier signed abercrombie & Fitch (a&F) to take the whole property, approximately 14,000 sq ft, on a 20 year lease and in September 2011, received planning permission to change the use of the lower ground, ground, first and second floors to a retail use, as part of the lease deal with a&F to accommodate their new kids flagship store.

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CLIENT: Electronic Data Systems

LOCATION: milton Keynes

PrOjECT rOLE: Developer/ Contractor

VALuE: £39 million


10_ELECTRONIC DaTa SYSTEmSHeadquarters office park for Electronic Data Systems. a park of four new office buildings designed to be sensitive to the surrounding rural environment.

Kier was selected by global technology company Electronic Data Systems Ltd (EDS) to develop a new head office campus for its UK operation.

Working closely with EDS, Kier designed a business park of four new office buildings to consolidate several EDS offices across the South. Kier subsequently purchased the site from EDS to minimise stamp duty tax and to maximise returns to EDS in relation to its land value. The offices were developed on a phased basis, allowing EDS to plan and benefit from a smooth transition between premises with minimal disruption to operations. EDS leased back the new facilities from Kier on 15 year leases. The development was funded through internal Kier resources and subsequently sold to The Prudential.

The occupier sought a partner to not only manage the development process but show a competitive approach to the construction cost analysis. Crucial to EDS was Kier Property’s ability to manage its decant and reoccupation requirements seamlessly, allowing minimum disruption to staff. Key issues were the ecology on site and respecting the listed and historic Wavendon Tower which was retained on site.

The completed development was sold to m&G Investments.

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CONTaCT_Kier Property Ltd 6 Cavendish Place London W1G 9NB

t 020 7462 2750 w kier.co.ukw trade-city.co.uk

Documents

OFFICE - Kier Group/media/Files/K/Kier/documents/capabilities/Property...a new office, an hotel and residential accommodation. In addition to Siemens’ growing anchor presence, the