Stratford, London E15

Transcription

1 Freehold Multi Let Office Investment 4 Cam Road, London E15

2 Regeneration is one of London s most accessible locations and has undergone significant redevelopment. the shard the city Olympic stadium westfield 4 cam road The most important stimulus for regeneration was the Olympic development which helped put in the spotlight. The transformation of the Olympic has already begun, capitalising on its prestige and profile. The will reopen in 2013 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 will be animated with fountains and art installations. The North of the, will feature a river valley centred around waterways, parklands and green space. 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. Westfield City opened in 2011 and houses 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.

3 4 Cam Road,, London, E15 2SY Investment Summary Well located east London office investment situated in an area that has experienced significant inward investment. Large scale regeneration projects in include the Olympic, Westfield, Crossrail, and International station. Outstanding road, rail and air communications. Modern specification office building completed in 2010 with limited capital expenditure required in the short term. Freehold Specification includes raised access floors, VRF air cooling system, 2 x 10 person passenger lifts and is DDA compliant. 83% of the 38,596 sq. ft. is currently let with the vacant accommodation providing the opportunity for reversionary income. The property has attracted strong covenants in the form of the NHS and Bank of Tokyo-Mitsubishi which account for 89% of the current income. Current passing rent of 568, per annum equating to an average rent of only psf. Benefit of an additional fit out rent from Bank of Tokyo Mitsubishi of 214,880 per annum until April Total rent equates to 783, per annum We are instructed to seek offers in the region of 7,500,000 (Seven million five hundred thousand pounds) subject to contract and exclusive of VAT. A purchase at this level reflects the following yield profile after allowing for purchaser s costs of 5.8%:- - Net initial yield of 9.86% - Reversionary yield of 10.88% assuming a conservative ERV of p.s.f. and a fit out cost of 300,000 ( 45 p.s.f.) on the vacant floor - Capital value of 194 p.s.f.

4 d Hackney Marsh Leyton High Rd Leyton Major Rd Valley Green A12 A106 Ruckholt Rd E Cross Route A106 Olympic Site Maryland Fores Cam Road London E15 2SY Victoria Rd Victoria Eastway A12 A12 E Cross Route Hackney Wick Olympic Stadium International Rd Wise Ca m Great Eastern Rd Burford Rd Rd Shopping Centre Chant St A11 High St Broadway A11 A112 Bryant St High Street Rockeby St West Ham Ln Paul St West Ham Lane Recreation Ground Rick Roberts Way Mortham St Abbey Rd is an important and thriving commercial centre located in east London. It lies approximately 9.7 km (6 miles) from the West End and 6.4 km (4 miles) from the City of London. et High Street Woodgrove House Abbey Rd Abbey Road Cam Road location is situated within the London Borough of Newham which has a resident population of 310,500. Of that number, 229,000 residents are in employment, with only 5,650 of residents long term unemployed. Offices Car Car Olympic Delivery Authority Burford Road WANSTEAD Due to its accessibility, is establishing itself as a major employment centre within London. Major office occupiers include Westfield, Coral Bookmakers, London Legacy Development Corporation and the University of East London. BT has recently taken 75,349 sq. ft. of accommodation at icity. Prime rents of 25 per sq. ft. have been achieved at the new City development. Amazon are currently canvassing London for a new headquarters campus of 750,000 sq. ft. and is rumoured to be on the destination shortlist. There has been an encouraging volume of inward investment into recently. Alongside the major regeneration projects taking place, University College London are building a 23 acre 1 billion campus. M&G Investments have just completed the purchase of 401 new build flats from Genesis Housing Association for 125m. A private overseas investor purchased two Intercontinental Hotels at Westfield in December 2012 for 58m, reflecting a net initial yield of 6.9%. Situation Occupying a large prominent site adjacent to the busy A11, the property is situated within an area of modern residential and office developments. The property is accessed from the east side of Cam Road approximately 100 metres from its junction with High Street (A11). Cam Road is situated approximately 400 metres to the south of central and International station. Significant nearby office developments include Place, The Square, First Avenue and the University of East London Campus. Notable local occupiers include London Borough of Newham, Barclays, NatWest, The Metropolitan Police Service, Barratt and Unison Site area 0.20 acres (0.08 hectars) 0m 10m 20m 30m Retail Parliament Hill London Zoo Regent s For identification purposes only. West End Channel Sea Road Crown Copyright, ES For identification purposes only. UKMap Copyright The GeoInformation Group 2013 Licence No. LANDMLON Plotted Scale - 1: A1 CamdenRetail Victoria Mills Studios A503 St Pancras Retail Kings Cross Millenium Wheel Industry Highbury Square Barbican City of London Waterloo London Bridge Tower Bridge Victoria Millenium A13 Hackney Marsh A11 Limehouse OLYMPIC SITE Canary Wharf A12 A13

5 Communications Road benefits from excellent road communications into and out of central London. High Street (A11) provides access into central London and the A112 to the north which links with the A12 and the M25 approximately 12 miles to the north east at Junction 27. The M11 is less than 5 miles to the north of Town Centre. Air has 3 International and 2 Regional airports within an hour s drive, the closest being London City Airport located approximately 8 km (5 miles) 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. London City Airport serves 40 destinations across the UK, Europe and the USA, with connections to the rest of the world through the major European hubs. Rail Station is 0.5km north of the subject property where DLR, London Underground (Central and Jubilee lines) and London Overground Services are available. International station is approximately 1km North West of the subject property and provides DLR services as well as Eurostar and HS1 services. High Street Station (DLR) is within a minute s walk to the north of the subject property. Crossrail is the biggest engineering project in Europe. Once completed in 2017 Crossrail will connect 37 stations across a horizontal axis through London. Below is a list of expected journey times from upon Crossrail s completion: Crossrail Maidenhead Taplow Burnham Slough Langley Surface line Tunnel Portal (tunnel entrance and exit) Iver West Drayton Hayes & Harlington Heathrow Airport Southall Hanwell West Ealing Ealing Broadway Bond Street Acton Paddington Tottenham Main Line Court Road London Overground DLR London Underground National Rail Farringdon Whitechapel Liverpool Street Canary Wharf Maryland Forest Gate Custom House Manor Woolwich Ilford Abbey Wood Goodmayes Seven Kings Chadwell Heath Romford Gidea Harold Wood Brentwood Shenfield heathrow 42 mins <<<< paddington 18 mins <<<< bond Street 16 mins <<<< Tottenham CourT Road 14 mins <<<< Liverpool Street 8 mins <<<< stratford >>>> Canary Wharf 9 mins

6 description The property was completed in 2010 and comprises 3,585.6 sq. m. (38,596 sq. ft.) of modern office accommodation over part ground and six upper floors. The property is of steel frame and concrete construction with striking glazed curtain walling and timber clad elevations. This gives the property a unique modern profile. There are 9 car parking spaces within the rear of the ground floor housed within a secure lock up garage. The property also benefits from a large modern open plan manned reception area. There are two roof terraces accessed from the 6th floor offices. The property benefits from a modern specification. Typical floors comprise the following specification: 1.5m planning grid 2750 mm floor to ceiling height DDA compliant VRF air cooling system Raised access floors 2 x 10 person passenger lifts Carpet tile flooring Acoustic metal tile suspended ceilings Integral LG3 compliant lighting Male and female and disabled access WC s on each floor. typical floorplan 2nd floor Core Core The 4th floor is currently only fitted out to shell and core. Tenure Freehold Tenancies Floor Tenant Name Area (Sq M) Area (Sq Ft) Current Rent ( p.a) ( psf) 5 & 6 NHS Shared Business Services Ltd 1, , , ( 18.69) Lease Start (Review) Lease Expiry (Break) Comments 23/12/ /05/2015 Outside the Act. Three car parking spaces. 4 Vacant , Part 3rd Careers Development Group ,247 50, ( 15.50) 26/09/2011 (26/09/2016) 25/09/2021 (26/09/2016) (26/09/2018) Rent commences 26/09/2013. Vendor to top up. Service charged capped at 16,235 pa. Reviewed annually to RPI. 3 months notice on tenant s break options. 6 months rent free from 26/09/2016 if break option not exercised. 2nd & Part 3rd Bank of Tokyo-Mitsubishi UFJ Ltd , , ( 16.92) 19/04/2010 (19/04/2015) 18/04/ Bank of Tokyo-Mitsubishi UFJ Ltd , , ( 17.00) 19/04/2010 (19/04/2015) 18/04/2020 Ground Seetec Business Technology Centre Ltd ,551 38, ( 24.98) 01/06/ /05/2013 Outside the Act. Schedule of condition attached to lease. Service Charge capped at 9,300 per annum. Fit out rent Bank of Tokyo-Mitsubishi UFJ Ltd , /04/ /04/2020 Total 3, , ,130.50

7 Tenants' Covenant Bank of Tokyo-Mitsubishi UFJ Ltd Mitsubishi UFJ Financial Group (MUFG) is one of the world s largest and most diversified financial groups with total assets of JPY218.9 trillion as of March MUFG s services include commercial banking, trust banking, securities, credit cards, consumer finance, asset management, leasing and many more fields of financial services. The group has the largest overseas network of any Japanese bank, comprising offices and subsidiaries, in more than 40 countries and 500 offices around the world. NHS Shared Business Services Ltd Careers Development Group Seetec Business Technology Centre Ltd NHS SBS is a unique joint venture between the Department of Health and Steria offering a wide range of innovative back office services to more than 40% of the NHS. They deliver operational efficiency, real cash savings and added value services. Their range of business support services are projected to save the NHS more than 3 billion over the next five years. Every year NHS SBS makes over 43 billion-worth of payments, process 2.5 million payroll transactions and recover 13 billion of NHS debt. The Careers Development Group (CDG) is a leading back to work charity with 30 years experience of helping people find and stay in work. Their team was supported by more than 30,000 people in 2011 from centres across London and the South East, delivering a wide range of back-to-work initiatives. CDG started delivering the coalition government s flagship Work Programme as a prime contractor in east London in June 2011 and merged with the Shaw Trust in September Seetec is one of the UK s largest and most experienced providers of Government funded employment and skills training programmes, helping thousands of individuals find employment or gain qualifications every year. Seetec employs hundreds of dedicated and experienced staff across a national network of training centres. Through a UK wide range of employment programmes, delivered on behalf of the Department for Work and Pensions and Jobcentre Plus, they work closely with thousands of jobseekers, employers and partner providers every year to support unemployed individuals back to work. 31st December st December st December Turnover 47,377,000 53,265,000 62,447,000 Turnover Turnover 21,203,872 37,594,182 53,457,888 Profit 564,000 1,926,000 3,278,000 Profit 1,599, , ,600 Profit 2,112,133 5,160,257 14,641,639 Total Net Worth - 8,243,000-5,124, ,000 Total Net Worth 4,805,500 5,578,700 5,252,100 Total Net Worth 5,330,215 7,081,033 15,985,222 Asset Management 4 Cam Road offers the following asset management opportunities to include: Regear existing leases with tenants to increase income length. Remove breaks. Let vacant 4th floor accommodation. rental income BANK OF TOKYO MITSUBISHI - 62% Careers development group - 6% SEETEC - 5% NHS - 27% Service Charge The service charge is currently running at 3.23 per sq. ft. Office Market The local occupational market has been dominated by smaller deals in of 42 transactions in the City and Fringe markets in Q3 were of less than 10,000 sq. ft. This proportion of smaller transactions has not been seen since There is currently 1,364,000 sq. ft. of office accommodation within and a vacancy rate of 7.1%, compared to the City and West End of 7.9% and 4.1% respectively. During 2012, there was 434,000 sq. ft. of take up within the Docklands/East London market in comparison to 496,000 sq. ft. in Positive activity in the area means demand for office accommodation has been focussed on developments in as opposed to other competing locations. Prime rents within stand at per sq. ft. with prime capital values remaining stable at 220 per sq. ft. since June The recent letting of 42,000 sq ft to Network Rail at One Place for 10 years was reportedly agreed at 35 per sq. ft, One Place is now 85% let. 23% of active demand is focussed on accommodation between 0-5,000 sq. ft. and 14% of availability is of this size. Similarly 35% of demand is focussed on accommodation between 10,000-25,000 sq. ft. and current availability in this bracket comprises 21% of overall availability. Rents are forecast to grow in the City Fringe and East London as occupational requirements grow. It is widely predicted that rapid TMT expansion within London should positively impact areas like as occupiers seek affordable rents while remaining close to central areas. The biggest infrastructure change within the London office market will be facilitated by Crossrail. This will likely produce a big gravitational pull along the Heathrow-Central London- axis, significantly improving these locations and further establishing them as commercial centres. This will boost long term rental growth as hubs like become financially and logistically viable for a new generation of occupiers. Any significant office development activity will likely occur in the most viable outlying locations along this cross-rail ribbon. Crossrail will open up and enable new opportunity in areas like. It will facilitate rapid and convenient movement across London linking with two major airports as well as HS1 and the proposed HS2.

8 Proposal We are instructed to seek offers in the region of 7,500,000 (Seven million five hundred thousand pounds) subject to contract and exclusive of VAT. A purchase at this level reflects the following yield profile after allowing for purchaser s costs of 5.8%:- - Net initial yield of 9.86% - Reversionary yield of 10.88% assuming a conservative ERV of p.s.f. and a fit out cost of 300,000 ( 45 p.s.f.) on the vacant floor - Capital value of 194 p.s.f. Energy rating The property has been rated C on the EPC scale (55). EPC certificate available upon request. Capital Allowances Further information can be provided upon request. VAT The property is elected for VAT purposes and therefore VAT will be payable by the purchaser, unless the sale is structured as TOGC. For further information or to make arrangements for viewing please contact: Scott Tyler [email protected] Guy Scott Plummer [email protected] Joe Raitt [email protected] 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