BURFORD ROAD BUSINESS CENTRE, 11 BURFORD ROAD, LONDON, E15 2ST

Transcription

1 BURFORD ROAD BUSINESS CENTRE, 11 BURFORD ROAD, LONDON, E15 2ST LONDON E 1 5 MULTI-LET OFFICE INVESTMENT OPPORTUNITY

2 THE LONDON COLLECTION CITY OF LONDON PUDDING MILL LANE OLYMPIC STADIUM BURFORD ROAD BUSINESS CENTRE THE INTERNATIONAL QUARTER STRATFORD HIGH STREET HERE EAST STRATOSPHERE STRATFORD VICTORIA PARK AQUATIC CENTRE WESTFIELD STRATFORD A118

3 BURFORD ROAD BUSINESS CENTRE, 11 BURFORD ROAD, LONDON, E15 2ST INVESTMENT CONSIDERATIONS An East London multi-let office investment opportunity located in, one of London's most accessible locations Freehold office building totalling 21,274 sq ft (1,976 sq m) Prime location in close proximity to High Street DLR and underground station providing access to Central London in 15 minutes Immediate surrounding areas have experienced significant regeneration as a result of hosting the Olympics in 2012 Excellent road, rail and air communication links High occupancy rate of 88% (as at 28th January 2016) Asset management opportunities including regearing leases on more institutional terms, letting vacant accommodation, ultimately increasing rents and a longer term redevelopment opportunity A site area of 0.19 acres with a strong underlying site value Potential to explore Permitted Development Rights with residential values in the area in excess of 700 psf The gross passing rent is 558,721 per annum. The Landlord's service charge liability is 197,504 equating to 9.28 psf. Net rents receivable are therefore 361,217 per annum which equates to an average rent of psf based on the let area Offers are sought in excess of 6,200,000 (Six Million, Two Hundred Thousand Pounds) subject to contract and exclusive of VAT. This reflects a net initial yield of 5.50% after allowing for purchaser s costs of 5.8%. A sale at this price reflects a low capital value of 291 psf.

4 Rd A1006 Cambrid THE LONDON COLLECTION A104 Lea Bridge Rd A104 A 1006 Church Ln H A112 Leyton Midland Rd Leytonstone Bush Wood LOCATION M11 Oliver Rd Church L n igh R d Leyton A112 Leytonstone High Rd is one of London s most accessible locations and has undergone significant redevelopment. The most important stimulus for regeneration was the Olympic development which helped put in the spotlight. The transformation of the Olympic has completed, capitalising on its prestige and profile. The reopened as Queen Elizabeth Olympic, with world-renowned sports facilities, attractions, event spaces and parkland. With an urban entertainment plaza in the South of the, anchored by the Stadium and Aquatics Centre, the area is animated with fountains and art installations. The North of the features a river valley centred around waterways, parklands and green space. benefits from excellent road communications in and out of central London. High Street (A118) provides access into central London and the A112 to the north links with the and the M25 approximately 12 miles (19 km) to the north east at Junction 27. The M11 is less than 5 miles (8 km) to the north of Town Centre. Station is 500m north of the subject property where DLR, London Underground (Central and Jubilee lines) and London Overground Services are available. International station is approximately 800m north west of the subject property and provides DLR services as well as Parliament Hill Eurostar and HS1 services. High Street Station (DLR) is 50m to the north of the subject property. Crossrail is the biggest engineering project in Europe. Once operations commence in 2018 Crossrail will connect London 37 stations across a horizontal axis through London. Zoo The journey time from to the West End will Regent s be 16 minutes. has 3 International and 2 Regional airports within an hour s drive, the closest being London City Airport located West End approximately 5 miles (8 km) south east of the subject property. London City Airport already serves 3.03 million passengers per year with plans in place to accommodate 8 million passengers per year by London City Airport will continue to play an increasingly key role in London s economy. A1 Camden A503 St Pancras Kings Cross Millenium Wheel Highbury Square Barbican City of London Waterloo London Bridge Tower Bridge Victoria Millenium A13 Hackney Marsh A11 Limehouse OLYMPIC SITE Canary Wharf WANSTEAD Victoria Rd Victoria A13 Hackney Marsh Valley Green Eastway A106 Redbridge A406 N Circular Rd Ruckholt Rd E Cross Route E Cross Route Hackney Wick A106 Olympic Site Olympic Stadium International Leyton High Rd Leyton Rd Major Rd Wise Rick Roberts Way Ca m Great Eastern Rd Burford Rd Rd Shopping Centre Chant St A118 High St Broadway A118 A112 Bryant St High Street Rockeby St Abbey Rd Maryland Paul St Mortham St West Ham Ln Abbey Rd West Ham Lane Recreation Ground Abbey Road Romford Rd A118 A1008 Blake Hall Rd A114 Woodgrange Rd Forest Gate Wa Par TfL HQ REGENERATION At the centre of the regeneration is the upgrade of International station and installation of Crossrail. In August 2011 an extension of the Docklands Light Railway was opened to connect the station directly to the wider London public transport network and Regional station slightly to the south. is served by the HS1 rail route which provides services to Europe. FCA HQ Westfield City opened in 2011 and provides 1.9 million sq. ft. of retail and leisure accommodation with 300 shops and over 50 food and beverage outlets. The centre represents a complete package of retail, dining and entertainment situated over a 700 acre 1.45 billion development. It features major retail anchors including John Lewis, Waitrose and Marks & Spencer as part of a 300 strong tenant line-up of the world s most innovative and recognisable brands. Westfield extends over three levels with an elaborate lifestyle street linking International and stations. Due to its accessibility, is establishing itself as a major employment centre within London. The Financial Conduct Authority and Transport for London have announced pre-lets at the The International Quarter where they will locate their headquarters providing further evidence that is becoming a desirable business hub. The International Quarter is a new business space development which will provide approximately four million sq ft of work space, 350 new homes, 275,000 sq ft of hotel provision and 52,000 sq ft of retail provision.

5 FB to 353 Club BURFORD ROAD BUSINESS CENTRE, 11 BURFORD ROAD, LONDON, E15 2ST High Street Station (DLR) Location Plan CROSSRAIL London Overground Surface line Tunnel Portal (tunnel entrance and exit) DLR London Underground National Rail Workshops 1 to 44 Victoria Mills 10 1 to 359 Taplow Slough Iver Hayes & Harlington Hanwell Ealing Broadway Bond Street Farringdon Whitechapel Maryland Forest Gate Manor Ilford Goodmayes Seven Kings Chadwell Heath Romford Gidea Harold Wood Brentwood Shenfield Burford Wharf 11 BURFORD ROAD Maidenhead Burnham Langley West Drayton Southall West Ealing Acton Paddington Tottenham Main Line Court Road Liverpool Street Custom House Abbey Wood Heathrow Airport Canary Wharf Woolwich 3.4m El Sub Sta HEATHROW 42 MINS <<<< PADDINGTON 18 MINS <<<< BOND STREET 16 MINS <<<< TOTTENHAM COURT ROAD 14 MINS <<<< LIVERPOOL STREET 8 MINS <<<< STRATFORD >>>> CANARY WHARF 9 MINS CAM ROAD 2 Crown Copyright, ES For identification purposes only. 1 to 20 20m 21 to to 133 SITUATION Burford Wharf Burford Apartments Road Business Centre is situated within an area of modern 1 to 86 Hallings Wharf Studios 134 to 162 residential and office developments. The property fronts the west side of Burford Road and is approximately 50 metres from its junction with High Street (A118) which provides access to Central London 5 miles to the west and High Street DLR station. The property is situated approximately 500 metres to the south of central and station. CHANNELSEA ROAD CAM ROAD 30m Significant nearby office developments include One Place, The Square, First Avenue, Here East, The International Quarter and the University of East London Campus. Notable local Ordnance Survey Crown Copyright All rights reserved. occupiers Licence number include London Plotted Scale Borough - 1:1250 of Newham, Barclays, NatWest, The Metropolitan Police Service, Barratt and Unison, BT Sport, Infinity and Loughborough University. SITE AREA The site extends to approximately 0.19 acres (0.08ha) TENURE 1 DESCRIPTION Built in 2004 the property is of steel frame construction with a combination of a glass and brick façade. At ground floor level there are 4 self-contained units, a loading bay with access to 10 parking spaces and a reception area. The reception provides access to first, second, third and part fourth floors where there are a further 30 self-contained units. There is a roof terrace on the remaining part of the fourth floor. Internally the offices are arranged to provide self-contained suites ranging from 275-1,524 sq ft. The specification is as follows:- Carpeted floors Suspended ceilings Recessed lighting Raised floors Air conditioning Burford Road Business Centre also benefits from 24 hour access, centre manager, 24 hour security, CCTV, meeting rooms, staffed reception and recycling facilities. Outline for identification purposes only. Freehold

6 THE LONDON COLLECTION Unit Tenant Area sq ft Area sq m Lease Commence Lease Expiry Gross Rent p.a. Service Charge Net Rent Net Rent psf Tenant Break Frequency Tenant Break Notice BR.111 Renaissance Partnership /04/15 08/04/17 12,155 3,946 8, Rolling 3 Months Contracted Out Tenant vacating 31/03/2016 BR.112 One Stop Cloud Ltd /06/14 22/06/16 11,466 3,806 7, Rolling 6 Months BR.113 Travelstay Ltd /05/13 30/05/16 12,815 4,048 8, Rolling 6 Months BR.114 H R Partners Care Ltd /04/14 31/03/16 11,970 3,788 8, Rolling 6 Months Section 25 notice served. 5% annual rent increase BR.115 Oxademy Graduate School Ltd /05/15 14/05/17 12,480 3,444 9, Rolling 6 Months Contracted Out Rent increase 15/05/16 to 13,104 p.a. BR.116 Vacant ,444-3,444 BR.117 Unitas Communications Ltd. & Shiraz Ahmad /03/14 20/03/16 10,440 3,444 6, Tenant vacating 20/03/2016 BR.118 Vacant ,454-3,454 BR Premier Work Support Ltd /12/15 08/12/17 30,800 8,031 22, Rolling 3 Months Contracted Out Rent increase 09/12/16 to 32,340 p.a. BR.121 Mars3 International Ltd /01/14 19/01/17 7,872 2,553 5, % annual rent increase BR.1MR Tryfood.co.uk Ltd /08/14 31/07/16 10,530 3,454 7, Rolling 6 months Contracted Out 5% annual rent increase BR.210 Khalid Aamir Qadri /05/14 14/05/16 12,222 3,834 8, Rolling 6 Months BR.211 Learning Resource Network Ltd /09/15 31/08/17 15,371 4,206 11, Rolling 6 Months Contracted Out Rent increase 01/09/16 to 16,140 p.a. BR Newham Music Trust /04/15 08/04/17 28,680 7,845 20, Rolling 6 Months Contracted Out Rent increase 09/04/16 to 30,114 p.a. BR.214 Diamond Biopharm Ltd /05/15 30/04/17 14,280 3,927 10, Rolling 3 Months Contracted Out Rent increase 01/05/16 to 14,994 p.a. BR Supreme Company And Sons Ltd /10/14 26/10/16 19,530 6,972 12, Rolling 6 Months 5% annual rent increase BR Desktop Genetics Ltd /02/15 01/02/17 22,320 6,981 15, Rolling 6 Months Contracted Out Rent increase 01/02/16 to 23,436 p.a. BR.219 Dar Eiman UK Ltd /12/14 07/12/16 12,222 3,416 8, Rolling 6 Months Contracted Out BR.220 Social Care Locums Ltd /11/14 23/11/16 10,710 3,426 7, Rolling 6 Months Contracted Out BR.221 I-Galaxy Media Ltd /11/14 31/10/16 11,088 3,556 7, Rolling 6 Months Contracted Out BR.2MR Mr Pretzels (UK) Retail Ltd /12/15 08/12/17 12,450 3,240 9, Rolling 6 Months Contracted Out Rent increase 09/12/16 to 13,073 p.a. BR Allied Recruitment Services Ltd /12/15 08/12/17 29,200 8,058 21, Rolling 6 Months Contracted Out Rent increase 09/12/16 to 30,660 p.a. BR British Chinese Young Entrepreneurs /09/14 31/08/16 21,924 7,845 14, Rolling 6 Months Contracted Out BR.314 Square Rock Ltd /04/15 08/04/17 11,730 3,946 7, Rolling 3 Months Contracted Out Rent increase 09/04/16 to 12,317 p.a. BR.315/18 Adveniunt Medical 1, /04/12 31/03/15 37,600 14,149 23, Rolling 3 Months Section 25 notice served BR Red Door Venture Ltd /12/15 14/12/17 26,640 7,074 19, Rolling 6 Months Contracted Out 5% annual rent increase BR.321 Vacant ,537-3,537 BR.3MR Imobilize Ltd /10/14 21/10/16 10,836 3,240 7, Rolling 6 Months Contracted Out BR.410 Thrive Tribe Ltd. 1, /11/15 05/11/17 49,800 13,638 36, Rolling 6 Months Contracted Out Rent increase 06/11/16 to 52,290 p.a. BR.411 Vacant 1, ,099-13,099 Rolling BR.4MR Easy Claim Ltd /11/15 18/11/17 12,600 3,240 9, Rolling 6 Months Rent increase 19/11/16 to 13,230 p.a. BR.A Acorn Insurance and Financial Services Ltd /07/13 30/06/16 19,151 7,733 11, Rolling 5% annual rent increase BR.B Acorn Insurance and Financial Services Ltd /03/15 19/03/17 18,420 7,873 10, Rolling Contracted Out Rent increase 20/03/16 to 19,341 p.a. BR.C-D Underated London Ltd. 1, /10/14 30/09/16 30,618 13,257 17, Rolling 6 Months Contracted Out BR.CP001 Allied Recruitment Ltd. 1 space 01/04/07 1,200 1,200 Rolling 1 Month BR.CP002 Square Rock Ltd. 1 space 01/04/13 1,200 1,200 Rolling 1 Month BR.CP003 Allied Recruitment Ltd. 1 space 01/04/07 1,200 1,200 Rolling 1 Month BR.CP004 Allied Recruitment Ltd. 1 space 01/04/07 1,200 1,200 Rolling 1 Month BR.CP005 Vacant 1 space BR.CP006 Premier Work Support Ltd. 1 space 16/11/15 1,200 1,200 Rolling 1 Month BR.CP007 H R Partners Care Ltd. 1 space 01/04/07 1,200 1,200 Rolling 1 Month BR.CP008 Social Care Locums Ltd. 1 space 24/11/14 1,200 1,200 Rolling 1 Month BR.CP009 Allied Recruitment Ltd. 1 space 01/04/07 1,200 1,200 Rolling 1 Month BR.CP010 Allied Recruitment Ltd. 1 space 01/04/07 1,200 1,200 Rolling 1 Month 21,274 1, , , , L&T Act Comment Tenancy schedule as at 28th January 2016

7 BURFORD ROAD BUSINESS CENTRE, 11 BURFORD ROAD, LONDON, E15 2ST One Place STRATFORD OFFICE MARKET STRATFORD RESIDENTIAL MARKET Here East The office market has historically been seen as spillover space for the City and has attracted occupiers driven by good value. However over the past 12 months the office market has experienced a significant change. has already benefited from 12.5bn of investment in the area to date and this is only set to continue, evidenced by the 2.3bn development of The International Quarter (TIQ) and the fact that they have prelet 270,000 sq ft and 425,000 sq ft to Transport for London (TfL) and the Financial Conduct Authority (FCA) respectively. Deutsche Bank s asset management company has recently purchased the FCA HQ at a cost of more than 370 million. Lendlease and LCR recently announced the forward sale of the 265,000 sq ft TfL HQ at TIQ for 246 million. Pre-lets at TIQ are achieving high 30 s psf. Here East is a 100m project to retrofit the Olympic s former media centre into a 1.2 million sq ft tech hub for start-up companies working with students and major corporations. The centre is already 52% let with a final completion date set for 2018 when an estimated 5,500 people will occupy the offices. Deals have already been done at 35 psf and future deals are expected to be done in excess of 35 psf and possibly as high as 45 psf. One Place is a 130,000 sq ft office development with only 10,000 sq ft remaining and rents of 40 psf plus being achieved in the building. Major office occupiers include Westfield, Coral Bookmakers, London Legacy Development Corporation and the University of East London. Self-evidenced rents in Burford Road Business Centre are as follows: Premier Work Support Ltd has taken 865 sq ft of accommodation on a two year lease from December 2015 at a gross rent reflecting psf, psf net of service charge. Red Door Venture Ltd has taken 762 sq ft of accommodation on a two year lease from December 2015 at a gross rent reflecting psf, psf net of service charge. Thrive Tribe Ltd has taken 1,469 sq ft of accommodation on a two year lease from November 2015 at a gross rent reflecting psf, psf net of service charge. has transformed significantly since the Olympics. With the regeneration still ongoing s connectivity to central London, housing, retail and commercial provision have all improved significantly. The increase of new residential developments means supply is high, however so is demand which has increased by approximately 60% over the past 12 months. As a result of this increased demand residential values in now command in excess of 700psf. Burford Road Business Centre may be suitable for a conversion to residential in the longer term through Permitted Development Rights subject to the necessary consents. ASSET MANAGEMENT OPPORTUNITIES Let vacant units Re-gear current leases on more institutional lease terms A longer term redevelopment opportunity to include Permitted Development Rights SERVICE CHARGE The service charge for the current year is budgeted at 197,504 reflecting an average of 9.28 psf. All rents are inclusive of service charge. More information available on request. VAT The property has been elected for VAT. It is anticipated that the sale will be treated as a TOGC. EPC EPCs available at

8 PROPOSAL Offers are sought in excess of 6,200,000 (Six Million, Two Hundred Thousand Pounds) subject to contract and exclusive of VAT. This reflects a net initial yield of 5.50% after allowing for purchaser s costs of 5.8%. A sale at this price reflects a low capital value of 291 psf. For further details please visit: LONDON E 1 5 For further information or to make arrangements for viewing please contact: Scott Tyler scott.tyler@allsop.co.uk Guy Scott Plummer guy.scott-plummer@allsop.co.uk Richard Lea richard.lea@allsop.co.uk Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design: CommandD