Nine Elms - the greatest transformation story, in the world s greatest city. At the Heart of Nine Elms, 2.7 acres

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2 Nine Elms - the greatest transformation story, in the world s greatest city. At the Heart of Nine Elms, an opportunity to purchase a freehold development site of 2.7 acres 3 1

3 The number 1 Opportunity Area in the UK 2 new London Underground stations extending the Northern Line 25,000 new jobs Opposite the 400,000 sq ft US Embassy 800 staff and 1,100 visitors each day Adjacent to a new 11 acre Linear Park connecting Vauxhall to Battersea Power Station 16,000 new homes 140% forecasted price growth over next 4 years the highest rate in London The Garden Heart London s new culinary hub on your doorstep 2 3

4 Contents Executive Summary Introduction Situation & Description Location Connectivity Vauxhall, Nine Elms & Battersea Opportunity Area History of Nine Elms The Masterplan Evolves Key Sites Linear Park Nine Elms Timeline Northern Line Extension Opportunities & Constraints Scheme Evolution Indicative Scheme Planning Market Commentary Additional Information Contact p07 p08 p11 p12 p15 p16 p21 p24 p26 p30 p34 p37 p38 p40 p42 p46 p49 p52 p55 February

5 EXECUTIVE SUMMARY A unique opportunity to invest in a strategically located mixed use development site at The Heart of London s most exciting regeneration area known as Nine Elms. Battersea Power Station The Nine Elms Opportunity Area is the last major regeneration zone in Central London, spanning 195 hectares of underdeveloped, riverside land in the heart of the world s greatest city. It is quickly evolving to become a uniquely modern district in one the world s oldest cities. Imagine developing Canary Wharf again but in a location 10 minutes walk from the Houses of Parliament, 10 minutes taxi ride to Mayfair, and 15 minutes Underground journey to the City of London. We present to you a 2.7 acre freehold development site for sale on behalf of the world famous fine art auction house, Christie s. Location The Nine Elms Opportunity Area is located south of Chelsea on the River Thames, stretching between Chelsea Bridge and Lambeth Bridge. With new development and transport links opening up the area, Nine Elms is the new Central London. Situation - The new US Embassy, Linear Park, food market and Nine Elms Underground station (estimated delivery 2019) surround the site. The river is a 3 minute walk through the Embassy/Embassy Gardens development. Vauxhall Underground station is currently an 8 minute walk (700 metres away). Planning - The site is allocated for mixed use residential within Wandsworth s site allocations document. The GLA s VNEB* Opportunity Area Framework was adopted in March 2012 and outlines the Mayor s, Wandsworth s and Lambeth s vision for high density mixed use development with capacity for 16,000 new homes; up to 25,000 new jobs; the delivery of a two station extension of the Northern Line from Kennington to Battersea via Nine Elms; and public realm works. There is a clear adopted tariff for calculating affordable housing provision (15%) and infrastructure funding. Value Over the past 10 years new apartments have been built at either end of the Opportunity Area at Chelsea Bridge Wharf and St George Wharf. More recently a steady stream of off-plan sales activity has established values in the areas. Coupled with the investment in infrastructure to provide a high quality environment where people want to live and work, the area is forecasted to be London s highest growth area by 2016 (140%)**. The Situation and Scale of the site suits a two phased development which is likely to range in height between 6 to 23 storeys but typically 8-12 storeys. A Feasibility Exercise indicates the site has capacity for a mid-density residential led scheme of 380,000 ft² NIA of residential (493 units), 24,000 ft² NIA commercial and car parking. Alternative uses may also include student housing, offices, hotels, and mixed use retail. Disposal - The first available freehold site in the core Opportunity Area since Christie s propose to remain in occupation with a mutual break option on 6 months notice, and a rent passing of 1.5m pa. Unconditional and Subject to Planning Proposals are invited which maximise the site value. Guide price of 40 million ( 81/ft² on the proposed GIA). * VNEB Vauxhall Nine Elms Battersea, the given name of the Opportunity Area. ** Forecast from Knight Frank September 2011 London Hotspots report. US Embassy 6 7

6 Introduction Christie s, the world famous fine art auction house, operate from two warehouses spreading across a 2.7 acre site in the middle of the Vauxhall Nine Elms Battersea Opportunity Area. The site is now available to purchase the first available freehold site in the core of Nine Elms for three years. This 2.7 acre site will lie at the heart of this rapidly changing regeneration zone. The next steps in the Nine Elms transformation will be: 1. The 50-storey Tower at St George Wharf completing (Winter 2013) 2. The Rogers Stirk Harbour & Partners designed Riverlight scheme continuing construction and sales momentum (St James). 3. Construction beginning at Embassy Gardens (Ballymore) in Summer 2012 and continued sales activity. 4. the US Embassy beginning construction with occupancy expected Q The new Northern Line extension funding package being agreed a preferred route has already been selected and an application for a Transport and Works Act is expected in early The adjoining railway embankment arches being punctuated providing permeability through to the current Sainsbury s supermarket, future Garden Heart (likened to Borough Market) and future Nine Elms station. 7. The Battersea Power Station is in the process of being sold. By the site will be at the heart of the New Central London a modern district bordering the Thames for people to live, work and visit. The parallels with the Southbank and Canary Wharf are uncanny. It is expected that the site may serve a number of uses including: Residential Student accommodation Offices Hotel Mixed use retail. The ground floor will provide active frontages to the many visitors to the Embassy, Linear Park and Garden Heart - all arriving at Nine Elms station. Be part of something new. February 2012 CGI of Embassy Gardens and the Embassy - courtesy of Ballymore 8 9

7 Situation & Description The site is strategically located at the heart of the Nine Elms Opportunity Area, surrounded by the US Embassy, Nine Elms Parkside, Linear Park, Embassy Gardens and the railway embankment, linking it to the proposed Garden Heart and Nine Elms Underground station. February 2012 The site is located at Ponton Road, which leads off Nine Elms Lane (A3205), the main thoroughfare which runs parallel to the river, linking Vauxhall with Battersea Park. Ponton Road, as part of the Embassy application, is in the process of being realigned to accommodate the US Embassy building. The existing premises occupy an area of 2.67 acres (1.08 hectares) and comprise two interconnecting operations. 40 Ponton Road consists of a warehouse used for pre and post sale storage and provides at total of approximately 54,625 sq ft (GIA) over ground and first floor levels. This warehouse has its own yard with access before the bend in Ponton Road. 40 Ponton Road consists of a high security, environmentally controlled warehouse that extends to approximately 93,500 sq ft (GIA) over ground and first floors. Access is further along Ponton Road opposite the railway arches. Although originally built as two separate warehouses, the two are now interconnected. The site coverage is approximately 74%. The Rateable Value is 1,030,000. To the north is a much larger site owned by Royal Mail Group and known as Nine Elms Parkside. As part of their own consented scheme, the phases immediately adjoining the subject site are known as Blocks F (10-13 storeys) and G (23 storeys), as well as a new footpath called Belfour Place. To the east is the site of the US Embassy and Phase 3 of Ballymore s Embassy Gardens development. It is currently occupied by DHL (vacant possession 2016). To the south over Ponton Road is the railway embankment (services from Clapham Junction to Waterloo). Through the arches (which are proposed to be selectively opened up) is a large Sainsbury s and the New Covent Garden Market Authority s main fruit and vegetable market which is subject to a major planning application. To the west is an allocated mixed use residential site, currently a warehouse leased to the Government car and dispatch agency. Nine Elms Masterplan 10 11

8 Regent s Park Location The City Full address: Ponton Road, Nine Elms SW8 5BA. The site is situated at the heart of the Vauxhall Nine Elms Battersea Opportunity Area in the northeast corner of the London Borough of Wandsworth. The border with London Borough of Lambeth is located a short distance directly to the north and east. Ponton Road provides access from Nine Elms Lane (A3205) to Vauxhall Station and Gyratory to the east and Battersea Park to the west. The site is approximately 700 metres from Vauxhall, which provides overland rail services and an underground station, and access to an extensive bus network. It is approximately 2.5 km (1.5 miles) southwest of the Houses of Parliament at Westminster, less than 4 km (2.4 miles) from Piccadilly Circus and only 3.6 km (2.2 miles) from Hyde Park. Sloane Square and the King s Road, in the heart of fashionable Chelsea, are a 25 minute walk, 3.7 km (2.3 miles) away. To the west is the very popular and attractive Battersea Park, a 81 hectare recreational facility used by visitors and local residents. Hyde Park Mayfair St James s Park Kensington Gardens Belgravia Westminster Victoria Chelsea London Eye Waterloo Vauxhall Oval Battersea Park Fulham Clapham 12 13

9 Connectivity The Heart of Nine Elms is located minutes from the travel hubs of Vauxhall and Battersea Bridge. Underground Boat Masterplan, including proposed footbridge Less than 700m from Vauxhall station, the Heart of Nine Elms has easy access to the Victoria Line with services to: Victoria 4 minutes Green Park 6 minutes Oxford Circus 8 minutes Two proposed new Northern Line Underground stations will link to the City and West End by The site is not reliant on the construction of the Northern Line Extension, but once complete, the new underground station Nine Elms will be located 150m from the Heart of Nine Elms. See Northern Line Extension section (p36). Train Vauxhall is 700m from the Heart of Nine Elms and offers services to London Waterloo, Clapham Junction and the South of England. Battersea Park Station is less than 1.4 km from the Heart of Nine Elms and offers services to Victoria and the South of England. Bus Nine Elms Lane has two bus routes which will take you to the heart of the City in 30 minutes. Vauxhall is a major bus interchange. Cycle River Bus services run every 30 minutes during peak hours from the new River Bus pier at St George Wharf. Airports London s main international airports are all located within an hour from the Heart of Nine Elms. Heathrow 58 minutes (via Heathrow Express from Paddington) Gatwick 44 minutes (via Gatwick Express from Victoria) London City 42 minutes (via London Underground and DLR) Heliport London Heliport lies less than 5 minutes drive from the site. Both business and leisure flights and transfers are available from here to other destinations. Walk once the proposed Linear Park is complete the walk to Vauxhall and Battersea Power Station will be direct through the park. In addition to the existing travel infrastructure, as part of the public realm strategy, now adopted within the OAPF, it is proposed that a pedestrian and cycle bridge will link Nine Elms Lane with Grosvenor Road/Pimlico, and be funded through section 106 and/or CIL monies. Proposed Northern Line extension route Cycle hire schemes are in-situ at Vauxhall, Grosvenor Road and are likely to feature extensively within the development of the Opportunity Area. The Barclays Cycle Superhighway No.8 runs from both Chelsea Bridge and Vauxhall Bridge into Westminster

10 Vauxhall, Nine Elms & Battersea Opportunity Area Nine Elms on the South Bank* is a unique investment opportunity, the last piece of underdeveloped central London to be transformed on a massive scale. And with the area set to change the face of London, Nine Elms promises more than the potential of financial returns it offers the chance to be part of something genuinely new in one the world s oldest cities. The key catalyst for the formation of the Nine Elms regeneration zone has been the Greater London Authority and the London Borough of Wandsworth providing the planning framework for private sector residential led mixed use development. In March 2012 the Greater London Authority (GLA) published the adopted Vauxhall Nine Elms Battersea Opportunity Area Planning Framework (VNEB OAPF). This policy document marks an area of around 450 acres of historically industrial land as an opportunity area, where future regeneration will be actively supported. The Opportunity Area stretches from Lambeth Bridge in the north to Chelsea Bridge in the south. The northern part of the Opportunity Area is located in the London Borough of Lambeth, with the southern part located in the London Borough of Wandsworth - which is where the subject site is located. The VNEB OAPF is intended to provide: 20,000 to 25,000 new jobs 16,000 new homes Access by public transport through provision of the Northern Line Extension New schools, health centres and community facilities A linear park linking Vauxhall to Battersea Power Station Social and economic inclusion and relate development to the surrounding areas Improved Community, environmental and other local characteristics of each area Good design, including public realm, open space and, where appropriate, tall buildings * following consultation with the VNEB Land Owners Group, Nine Elms On the South Bank is the official branded name of the VNEB Opportunity Area. The opportunity area is the largest and most high profile of its type in London, and a multi-billion pound redevelopment programme is now transforming this industrial area into a brand new residential and business quarter. More than 1,000 new homes are now under construction at Riverlight on Nine Elms Lane and The Tower at St George Wharf. Plans for another 14,000 are either approved or making their way through the planning pipeline. Ballymore begin construction of Embassy Gardens in Q2 2012, have secured a pre-let to Waitrose for a 22,000 ft² store and a number of presales on their first phase residential. The new Nine Elms will be much more than just housing. It will include hundreds of thousands of square metres of business, retail and office space alongside new cultural attractions, parks, Underground stations, the new home of the US Embassy and a revitalised New Covent Garden Market. Nine Elms over the next 5-10 years will become an affluent residential and commercial centre in London. The US Embassy will add significant new employment (circa 800 jobs) to the area when they take occupation in and encourage investment through ancillary services associated with the presence of the embassy. 1,100 daily visitors are anticipated to the Embassy alone. Over the next decade and beyond, this little known district will become a new, ultra modern destination on the South Bank and will support the same high levels of employment and commercial activity as the rest of Central London. It is one of the greatest investment opportunities in the world. We draw very similar comparisons to Canary Wharf. Over the last 25 years, Canary Wharf has achieved one of the greatest feats of civic transformation developing previously derelict docklands into over 15 million square feet of office, retail, residential and leisure space. One of the key differences is Nine Elms is already located in Central London

11 New Covent Garden Flower Market US Embassy Embassy Gardens Riverlight Battersea Power Station Nine Elms on the Southbank. The greatest transformation story at the heart of the world s greatest city. Riverside Court Elm Quay Court 18 19

12 History of nine elms Circa 1880 Nine Elms got its name around 1645, relating to a row of trees that bordered the main road. This area was a low, swampy district, which was prone to flooding and had windmills and some willow beds. Despite its setting, the area soon attracted industry with docks for wood and timber companies lining the riverbanks and brewing, lime kilns and potteries lining the road. Circa 1930 By the end of the 18th century, much of eastern Battersea was taken up with market gardens supplying central London. There were about 300 acres of market gardens in Battersea parish in the 1790s, and 250 acres in Lambeth parish. In the early 19th century vinegar and pickle making were established between Vauxhall Stairs and Vauxhall Bridge. Burnett s vinegar factory eventually expanded to cover most of this area, there were also iron foundries and steam engine factories, saltpetre, whiting and varnish factories. In 1838 The Southampton and London Railway Company opened its London terminus at Nine Elms. Passengers continued to London by boat or cab. The line was extended to Waterloo in 1848, by means of 290 brick arches. Locomotive works and engine sheds were established and the site became a huge railway yard/goods depot. Taking its place among the industry of Lambeth in the early 19th century was the pottery of John Doulton. There were a total of twelve Doulton kilns in the block by 1889 and another was added in Royal Doulton s Lambeth works closed in 1956, although the firm s headquarters remained there until In 1853 a gasworks was established, close to some existing waterworks which later became the site of Battersea Power Station. The power station was built for the London Power Company on the site of the Battersea waterworks to the design of Giles Gilbert Scott in At first there was only one turbine hall with two chimneys; the second hall and remaining two chimneys followed in In 1974 the New Covent Garden Market opened, and other derelict land in the area became part of the current industrial park. In 1983 the Battersea Power Station was decommissioned and the generating machinery was removed. The main turbine hall is now a roofless shell, although the control room, steel frame and masonry are well preserved. Battersea Power Station is currently listed grade II*. Christie s commissioned the construction of the current buildings on site, and first occupied them in As indicated in the historical images, prior to this the site was used as railway sidings. Circa

13 March 2012 Dolphin Square Royal Mail Group Embassy Gardens US Embassy The Tower St George Wharf Vauxhall Cross City of London Battersea Park Battersea Power Station Riverlight New Covent Garden Market Flower Market Sainsbury s 22 23

14 The Masterplan Evolves Royal Mail US Embassy Garden Heart Vauxhall Square Planning permission March 2012 Planning permission 2010 Planning application submitted Planning application submitted Battersea Power Station Riverlight Planning permission Aug 2011 Under construction Sep 2011 New Covent Garden Market Entrance Site Linear Park Embassy Gardens Planning permission March 2012 New Covent Garden Market Planning application submitted Sainsbury s Planning application submitted 24 25

15 Key sites Embassy Gardens New Covent Garden Market Ballymore were granted part detail, part outline planning permission in March 2012 for their residential led scheme known as Embassy Gardens - a large 15 acre site surrounding the new US Embassy and adjacent to the Heart of Nine Elms. The site will provide 1,994 dwellings, serviced apartments, retail, hotel and office uses and includes external works linked to the new Linear Park. The first phase is under construction at the moment and a marketing campaign has commenced. US Embassy The US Government acquired 3.8 acres of land from Ballymore on Ponton Road for the provision of a new 400, ,000 ft² GIA Embassy building. It is expected that once occupation commences in January 2017, around 800 staff and 1,100 visitors will visit the site each day. The development of the US Embassy requires the diversion of Ponton Road. Nine Elms Parkside (Royal Mail) A part outline and part detailed application was recently granted consent by LB Wandsworth for 1,870 apartments, retail, offices, the provision of a new primary school and 175,00 sqft of business space (new Royal Mail delivery offices). The site has a large swath of the new Linear Park running through it. The New Covent Garden Market Authority have submitted an application for the redevelopment of the 57 acre site to include a new wholesale market facility, 2,450 homes, a hotel, ancillary commercial uses and public open space. A developer/contractor partner is in the process of being procured to commence the construction of the new market payment for which will be the release of several land parcels for future development. Garden Heart (part of NCGMA) It is expected that the Garden Heart will commence construction in 2017, following the re-provision of the new wholesale market facility; thereby completion and occupation will commence from 2019 onwards, in conjunction with the opening of the new Northern Line Extension station at Nine Elms. The Garden Heart is proposed to contain a number of complementary cafes, restaurants and bars, as well as quality convenience operations such as grocers, butchers, bakers, florists and delicatessens, mirroring the success of Borough Market. It will have its own energy and create a distinct fusion of niche businesses linked to the new wholesale markets, and moments from the Heart of Nine Elms. Embassy Gardens One Nine Elms US Embassy 26 27

16 Key sites The Heart Riverlight (Tideway) The development of the first major residential led development site in Nine Elms began in September 2011, after St James acquired the site for 50.7m in March St James have agreed a fixed contribution towards the Northern Line Extension as part of their S106 obligations. Since the original planning consent was granted, the owners have reworked the planning within the scheme to replace a small hotel with an additional 54 residential apartments. The scheme totals 806 residential apartments and mixed commercial use on the ground floor. Sainsbury s Sainsbury s have submitted a planning application doubling the size of their existing store, lifting it to the first level and placing car parking underneath. Above the store will be residential dwellings located in three towers of 19, 28 and 37 stories, totalling 750 apartments. The site has been marked as the preferred location of the new underground station, Nine Elms. One Nine Elms (Market Towers) CIT and Green Property have submitted a planning application to create two towers (58 and 43 stories) including 491 apartments, a 209 room 4* hotel located in the podium of the west tower and 72,000 ft 2 of offices, as well as a new public square with shops, restaurants and cafes. Battersea Power Station At the far end of the opportunity area, Battersea Power Station won outline planning approval in August 2011 for massive redevelopment of 3,400 homes and 5,000 jobs. The Power Station attracts a section 106 contribution in excess of 210m and there are additional planning conditions associated with the redevelopment of a Grade II* listed structure, making the site extremely complex. The site s owner was placed into administration in December This site is in the process of being sold. Computer generated image of proposed Garden Heart development 28 29

17 Linear Park The linear park will form an avenue of green public open space through Nine Elms. It will run from Vauxhall in the east to Battersea Power Station in the west. It will be predominantly green open space, comprising lawned areas, recreational spaces, trees, planting and water features. Where it intersects with the new US Embassy, a garden square will be created, which will host civic functions for visitors to Nine Elms and the US Embassy. From the Embassy, the linear park splits, affording access over the river to Chelsea via a new pedestrian bridge or continuing down to the Battersea Power Station. The park will be over a kilometre long, have an average width of 45m and be in excess of 11 acres (4.5 hectares) in area. The park has been planned to encourage green swaths to spread both north and south of the linear park, increasing the permeability of schemes surrounding the park and improving access to the river and through the railway arches to the new Garden Heart and Underground station. The park will be funded and provided through developer contributions and is expected to come into active use from 2016 onwards in line with the completion of the US Embassy. Proposed Linear Park Computer generated image of the Linear Park 30 31

18 The 11 acre Linear Park will connect Vauxhall to Battersea Power Station Computer generated image on proposed Linear Park An antidote to urban living - open green spaces and pedestrian links 32 33

19 Movement of NCGMA to current site 1985 Christie s move warehousing function to Ponton Road Jun 2003 The Tower at St George Wharf gains planning permission Feb 2008 London Plan Consolidated Apr 2009 DIFS study completed Sep 2010 The Tower commences construction Mar 2011 Tideway Industrial Estate acquired by the Berkeley Group Nov 2011 NCGMA submit major planning application Feb 2012 Ballymore granted outline permission Mar 2012 VNEB OAPF adopted 2016 Estimated completion of the Heart of Nine Elms Jan 2019 Northern Line Extension opens Period of industrial use 1983 Battersea Power Station ceases electrical generation 1999 St George Wharf commences construction 2008 Opportunity Area identified by GLA Mar 2009 London Borough of Wandsworth Core Strategy Dec 2009 US government acquires new embassy site from Ballymore Nov 2010 Battersea Power Station granted outline permission Sep 2011 St James start construction of Riverlight Dec 2011 George Osborne backs Northern Line Extension March 2012 Royal Mail granted permission (part outline, part detailed) 2013 First occupations at The Tower Jan 2017 US Embassy Occupation Nine Elms timeline 34 35

20 Pimlico Kennington Station e ngton L an Kenni Vauxhall Station A Oval Station Nine Elms Station Wa nd sw ort h Queenstown Road Roa d Battersea Station Battersea Park Northern line extension Proposed route of Northern Line Extension The Northern Line Extension (NLE) will provide two new Underground stations within the Opportunity Area. Nine Elms station will be built at the far end of the car park currently serving Sainsbury s Nine Elms store. It will be approximately 150 m from the boundary of the subject site and pedestrian access to the Underground station from the northern side of the Opportunity Area and the Embassy will be provided by opening up pedestrian routes through the arches beneath the existing railway line. The Nine Elms Station will provide a direct link to Kennington Station and then onwards to the City and West End. Journey times to the City and West End are expected to be less than 15 minutes. The second station will be located to the west at Battersea Power Station. The two stations will help improve the existing public transport infrastructure which is currently centred on the bus, Underground and over ground rail services available at Vauxhall. It is anticipated that an application for a Transport and Works Act Order will be made early in It is hoped that this will be granted in 2014 which would enable construction to commence in The line would then open to passengers in The new line is expected to cost 900m (including 35% optimism bias and allowing for inflation). Of this total approximately 564m is anticipated from the private sector by way of S106 contributions or payment of the local authority CIL. More than 360m has already been pledged by the private sector as part of the planning process. The government is committed to these works and indicated in the 2011 autumn statement that Tax Increment Financing (TIF) may be permitted to allow the London Borough of Wandsworth and/or TFL to borrow against future income in order to make up any shortfall in the public contributions against the final costs. The crown of the proposed rail tunnels will pass beneath the Heart of Nine Elms at an anticipated depth of 15m below Datum. Any planning consent to redevelop this site will require approval from TFL so as to ensure any planned piling does not impact on the tunnels. Plan of proposed underground tunnels 36 37

21 Opportunities & constraints Preliminary design work has been undertaken by Rolfe Judd Architects, with reference to the OAPF masterplan, to enable a detailed consideration of the capacity of this site, while having regard to its context and the design of proposals around it. Existing Layout / Masterplan Daylight All development around the site is currently 3 4 stories although this is due to change as adjacent sites are redeveloped in accordance with the land use strategy of the Opportunity Area. The adjacent sites are being redeveloped into a series of storey perimeter blocks with two towers of 23 storeys proposed on the edge of the American Embassy to the northern corner of the site. Proposed The Christie s site is identified by the OAPF Land Use Strategy as being within the area for high density mixed use housing led intensification. The new housing-led intensification should come forward with a mix of commercial and community uses to support emerging communities. The OAPF has an indicative Masterplan layout that includes indicative block layouts which aim to deliver the linear park, a mix of uses, desired development densities and provide high quality private open space in the form of internal courtyards. The site lies on an almost north to south line allowing good solar aspect. Minimum distances between buildings should be adhered to, in order to address privacy, daylight/sunlight issues. The location of the rail viaduct at the southern boundary will prevent adjacent developments getting too close, potentially removing issues of overshadowing at this edge. There will however be acoustic considerations due to the close proximity of the rail line. The site will be surrounded by high density, medium to high rise, residential developments with mixed use commercial, retail and civic projects at lower level; both integrated and stand alone. As the context is being completely altered and recreated, there will be a mix of new architectural styles that emerge, each dependant on the particular design style of the redevelopment architect. Consideration will need to be made for the proposed developments but the impact of existing local context is almost nonexistent. Density Views There is opportunity to create views from the site into the central green belt and of the American Embassy Quarter; dependent on final orientation of building massing. The influence and connections to The Garden Heart cannot be overlooked as a design opportunity. Having a produce market so close to the site will be very attractive to residents, adding to the special character of the proposed development. The London Plan density matrix suggests a range of between 650-1,100 habitable rooms per acre ( dph). Other schemes in the immediate area, whether permitted development or in the planning process, are currently achieving around units per hectare. Height The OAPF Tall building strategy sets out the likely heights to be anticipated from developments within the Opportunity Area. It states development will predominantly be 8 10 storeys in height, tall buildings of up to 60-70m may be supported, but should not appear in the backdrop of the Houses of Parliament

22 Enhanced perimeter plus tower Scheme Evolution Opportunity to create a small tower form on an axis with the US Embassy Perimeter plus linear block Given the uniform shape of the site, there were a number of development solutions considered before a preferred scheme was identified. The viability and appropriateness of the various options have been considered, and the preferred, identified solution supports a perimeter development, rather than either urban village or tower development. Opportunity to create internal spaces Seek to create variety of form and size Urban Village Precedent has been set on neighbouring Ballymore site Perimeter scheme - preferred solution Tower could create an identifiable landmark for site Perimeter plus tower Detailed perimeter scheme Urban grain supported by OAPF masterplan Efficient land use creating blocks of 10 to 12 stories Connections through the viaduct to the Garden Heart 40 41

23 indicative Scheme The evolution of the scheme has resulted in a design led proposition that adheres to the original VNEB Master plan of Perimeter development, and in planning terms is therefore the least controversial. Example podium development at Embassy Gardens (CGI) Depending on layout there is an opportunity to create a taller building on an axis with US Embassy, not least since the approvals for Nine Elms Parkside and Embassy Gardens. Two distinctive phases of 234 and 258 units respectively. Provides a logical fit with the consented Royal Mail proposals immediately north. Traffic connections around the site retained as current. Create secondary green/pedestrian/ cycle links through the site between the two phases. Southern portion of perimeter block offers acoustic screen from rail viaduct, allowing the creation of quiet internal private gardens above podium. South facing units have best solar amenity and views over viaduct towards New Covent Garden Market and beyond. Podium level provides secure car parking at grade, mitigating full basement. The ground floor provides active frontage for what will shortly become a busy thoroughfare between the Garden Heart, Market, Nine Elms Underground station to the south of the arches and the River and Embassy Quarter to the immediate north. Commercial units facing onto Ponton Road will benefit from this increased footfall. Compatible ground, lower ground and 1st floor uses could include A1, A2, A3, A5, B1, D1, D2. 3D visualisation - West 42 43

24 indicative Scheme Phase 1 (up to 12 storeys) No. Size (ft²) Size (m²) Total NIA (ft²) Total NIA (m²) 1 bedroom ,009 2,974 2 bedroom ,226 12,284 3D visualisation - East 3 bedroom , ,107 3,169 Residential total ,342 18,427 Commercial (GIA) 17,761 1,650 Car parking 53 spaces Phase 2 (up to 23 storeys) No. Size (ft²) Size (m²) Total NIA (ft²) Total NIA (m²) 1 bedroom ,849 2,309 2 bedroom ,689 10,752 3 bedroom , ,748 3,973 Residential total ,287 17,034 Commercial (GIA) 15,554 1,445 Car parking 56 spaces Model of Nine Elms Parkside 44 45

25 planning Site Location Both the local and regional planning authorities support the redevelopment of the site for high density residentialled, mixed use development. A number of adjoining proposals provide design and massing precedents and there is a clear framework for delivering 15% affordable housing and financial contributions towards the NLE. The site is located with the Central Activities Zone (CAZ) as well as the Vauxhall Nine Elms and Battersea Opportunity Area (VNEB OA) as identified in the London Plan. The Council s vision for Nine Elms is set out in the Area Spatial Strategy for Nine Elms, which forms part of the Site Specific Allocations Document (SS AD), adopted February Within this policy document, the site is allocated for Mixed use development including residential. The OAPF promotes high density development in the region of 8-10 storeys in height in perimeter form, with tall buildings of varying heights in key locations such as at important roads junctions. Most proposals are at least 2 storeys higher than the OAPF guidelines. Wandsworth s Area Spatial Strategy for Nine Elms identifies the site within the Nine Elms Parkside (yellow) district, on the border with the Vauxhall/Embassy district. As part of the development of the OAPF and as reflected in the SS AD, the GLA with support of Wandsworth and Lambeth, and the VNEB Land Owners Group, commissioned the Development Infrastructure Funding Study (DIFS ), published in October 2010, to determine the infrastructure necessary to support the development of Nine Elms and the means of funding that infrastructure (particularly the Northern Line Extension). The DIFS recommended Section 106 Tariffs for two areas of the OA based on residential value area, with the higher value area (Residential value area 1/Nine Elms Zone A) reflecting the significantly higher values of riverside sites. The Nine Elms residential charges are based on two scenarios of 15% and 40% affordable housing provision. The charge is only levied on private market dwellings. The findings of the DIFS have been used as the basis for setting the Wandsworth local levy known as CIL (Community Infrastructure Levy). The Council has consulted on its CIL Draft Charging Schedule and further information and updates relating to the progress of the Wandsworth CIL are on the disposal website and Wandsworth s own website. The Mayoral CIL (Crossrail) has been taken as a deduction from the overall level of charge that was determined from the DIFS The Heart of Nine Elms site is within the area designated as Nine Elms Residential Area B and therefore upon adoption of the LBW CIL Charging schedule, any gross additional floor space (GIA), will be subject to the policy contributions as determined from the table to the right. Based on the feasibility study proposed, totalling 2,683 m² GIA mixed use retail and 395,591 m² GIA private residential (totalling 418 private apartments at 85% private, 15% affordable) this would give rise to a policy payment of approximately 12m. It is recognised by the authorities that the phasing of tariff payments is extremely important to scheme viability and should be negotiated on a case by case basis. The land owner has met with Wandsworth s VNEB Planning Coordinator three times in the past 2 years. Most recently the proposed scheme layout was discussed at a pre-application meeting in November The officer applauded the perimeter form of development and commented that the overall scale of the development was in line with neighbouring proposals [which have been granted planning permission]. Nine Elms Opportunity Area With regards to proposals for a taller block of 23 storeys, he commented that more work would be required to demonstrate its visual effect on other schemes. Adjoining proposals by Royal Mail Group (Block J) and Ballymore Phase 3 (Block A05) have been consented and both provide 23 storeys. The site is located in Flood Zone 3a and has a PTAL rating of 1. The site is not within a Conservation Area. The site is within an Archaeological Priority Area as defined by the Wandsworth s Unitary Development Plan. There is no record of any buildings listed as being of special architectural or 15% affordable housing* historical importance by English Heritage on the site or in the immediate vicinity. The closest Listed building is the Grade II* listed Battersea Power Station approximately 500 metres to the west of the site. The site is not affected by any Tree Preservation Orders. * a reduced rate psm applies if 40% affordable housing is provided. Land Use Mayoral CIL Current Local Charge Total Charge /m² /m² /m² Residential Zone A Residential Zone B Office (B1), Retail (A1-A5) Other incl Hotel (C1) and student housing

26 Market Commentary Chelsea Bridge Wharf St George Wharf Chelsea Bridge Wharf Embassy Gardens Central London Demand for Central London residential property has remained strong during the first four months of Jones Lang LaSalle has had a number of notable successes with various London schemes, marketed domestically and overseas. The international market remains strong for quality Central London apartment schemes, appropriately priced and marketed. Notable off-plan successes in recent months include schemes such as Embassy Gardens and Riverlight (both Nine Elms), Altitude (E1), Maple Quays (SE16), The Heron (EC2), and Merchant Square (W2). The good start to 2012 comes on the heels of an uncertain end to However, JLL research reveals that prices for new Central London development schemes still managed to rise during the final quarter of 2011 despite a very challenging economic, political and financial climate. Price growth in central London averaged 0.2% during Q meaning that prices of new central London residential developments finished 3.2% higher for the calendar year Schemes in more central areas continued to experience higher price growth during Core locations saw a 3.9% surge in prices with outer core areas seeing a slightly more subdued 2.5% improvement. Our research also reaffirms the out performance of central London compared to elsewhere in the UK with the 3.2% price rise in sharp contrast to the 1.1% fall in national prices reported by the Land Registry. A vibrant rental market in London is also encouraging investors, both domestic and overseas. Vauxhall, Nine Elms and Battersea The Heart of Nine Elms stands to benefit hugely from the regeneration effect of the Opportunity Area. A multitude of buyer types will be attracted to Nine Elms by the additional infrastructure (NLE, linear park, public realm, new school) and retail and leisure amenities. The Nine Elms area has been identified by many market commentators as having significant growth prospects. For instance in Knight Frank s 2011 Hot Spots report, Nine Elms is identified as the number one growth area in London (140% growth by 2016). Assuming a Q construction start, The Heart Phase 1 is likely to complete in New build apartment development is not new to Vauxhall and Battersea -several notable developments over the past 13 years have consistently achieved premiums over second-hand traditional stock. Phase 1 of St George Wharf at Vauxhall began selling in 1999, and the final phase, the 50-storey tower is due to complete in late Over 12 years sales values have increased by over 300%. In Battersea, the Battegg (334 Queenstown Road), Albion Riverside and Montevetro are major popular developments around the park. More recent sales of relevance include Chelsea Bridge Wharf by Berkeley Homes which completed in 2011, and Viridian by Barratt, who completed 180 private apartments in late The rental market is particularly buoyant in Battersea, with rents reported to have climbed 25% in 12 months. In between Battersea and Vauxhall, is this new modern district known as Nine Elms. Off-plan sales activity here is already encouraging with sales continuing at Riverlight, Embassy Gardens, and The Tower at St George Wharf. Riverlight 48 49

27 OUTER CORE London residential value map The Heart of Nine Elms Vauxhall Nine Elms Battersea Opportunity Area Core The Heart of Nine Elms Outer core Max, min and average price per square foot Source Jones Lang LaSalle, April

28 BIDDING, PRICING AND OCCUPATION Offers are invited on an unconditional and/or subject to planning basis. Any conditions attached to your proposals should be clearly stated. The property is currently elected for VAT. Therefore VAT will be payable on the sale price. Christie s wish to remain in occupation, and propose two separate 3 year IRI leases with a rolling mutual break option on 6 month s prior notice, and paying 500,000 pa for 40 Ponton Road and 1,000,000 pa for 42 Ponton Road. Further information on this is available on request. Guide price of 40m, equating to - 81 /ft² and 99 /ft² on the proposed GIA and NIA respectively, of the proposed scheme m per acre. - 80,000 per proposed plot (assuming average residential and commercial unit sizes of 776 ft² and 3,383 ft² respectively). Additional bid procedure guidelines are on the disposal website. Computer generated image of the Linear Park Legal The site known as 40/42 Ponton Road is held under three freehold title interests, SGL303852, SGL and TGL A report on title has been prepared by the vendors solicitors and is available to view within the data room. Viewing details External viewing of the site is possible during daylight hours. Both warehouses are currently occupied, for internal inspections please contact a member of the disposal team. Computer generated image of Embassy Gardens 52 53

29 Website For further information and downloads please register your interest on the disposed website for login details. An introductory video to Vauxhall, Nine Elms & Battersea is available on our home page. Contact details For all enquiries please contact the joint agents James Cobb Surveyor Jones Lang LaSalle +44 (0) (0) Will Grant Director Jones Lang LaSalle +44 (0) (0) Matthew Bailey Director Angermann Goddard & Loyd agl-london.co.uk +44 (0) (0) Jones Lang LaSalle 30 Warwick Street London W1B 5NH Angermann Goddard & Loyd 26 Mount Row London W1K 3SQ 54 55

30 COPYRIGHT JONES LANG LASALLE IP, INC All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without prior written consent of Jones Lang LaSalle. It is based on material we believe to be reliable. Whilst every effort has been made to ensure its accuracy, we cannot offer any warranty that it contains no factual errors. No liability for negligence or otherwise is assumed by Jones Lang LaSalle for any loss or damage suffered by any party resulting from their use of this publication. Any plans, photos and computer generated images shown are indicative and cannot be guaranteed to represent the buildings shown. May Brochure design & production by GQ Design

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