ONE GROSVENOR SQUARE

Transcription

1 OE GROSVEOR SQUARE

2 OE GROSVEOR SQUARE 2 3

3 One enjoys both a rich history and an enviable position in the heart of Mayfair 4 5

4 OVERVIEW On the instructions of the Government of Canada, Savills are pleased to present the Canadian High Commission, Macdonald House, 1-3, London. The property is located in the heart of London s West End and is one of Mayfair s most prominent buildings. It enjoys an enviable position overlooking one of London s most renowned garden squares and benefits from extensive frontage on to both and Grosvenor Street. The Canadian High Commission has been situated at the property since 1960, and prior to this it was occupied by the American Embassy from The property provides 159,745 sq ft (Gross Internal Area) of floorspace arranged over lower ground, ground and six upper floors. The accommodation comprises of 92,004 sq ft (et Internal Area) of offices (B1 use) and 21,234 sq ft (et Saleable Area) of residential (C3 use), as well as 17,374 sq ft of ancillary and storage space. The property is owned leasehold with a 933 year unexpired term, following the grant of a 999 year leasehold interest in The property will be sold subject to a short term leaseback to the Canadian High Commission. The property is not Listed and provides a fantastic opportunity to redevelop for a range of alternative uses including residential or hotel use. There is also the potential to refurbish the property to provide high quality office or embassy use. All of the alternative uses would be subject to the necessary consents. 6 7

5 Canary Wharf The City The Shard London Eye Centre Point Picadilly Circus Parliament Square Regent Street The Ritz Oxford Street Bond Street Berkeley Square Claridges OE GROSVEOR SQUARE The Connaught Selfridges American Embassy 8 9

6 LOCATIO SITUATIO is located in the heart of London s West End. It is one of the oldest and most iconic garden squares in London having been first conceived in 1710 as part of Sir Richard Grosvenor s estate masterplan. along with Grosvenor Street is a renowned address enjoying an unrivalled position within prestigious Mayfair. Mayfair is synonymous with exclusivity and is populated with prime retail destinations such as Bond Street, Mount Street and Oxford Street, home to many of the worlds leading luxury brands. The area is also characterised by numerous art galleries, antique dealers and niche retailers located in Dover Street Market and Burlington Arcade. Many of the world s leading restaurants are located within Mayfair including obu, Scott s, The Wolsey and Gordon Ramsay s Maze. These sit alongside renowned hotels including The Ritz, The Connaught, Claridge s and The Dorchester. M A C H E S T E R S Q U A R E Mayfair continues to be one of London s golden postcodes for residential property and at the forefront of the super prime market that has evolved in recent years within the capital. Similarly, Mayfair remains a prominent commercial location and is the preferred destination for many leading national and international firms, as well as private equity houses and hedge funds. Mayfair is bordered by two of central London s most renowned parks, Hyde Park and Green Park, as well as the popular areas of Soho, St James, Knightsbridge and Marylebone. W I G M O R E S T R E E T C A V E D I S H S Q U A R E R E G E T S T R E E T O X F O R D S T R E E T The property is situated in a prime position with frontages on to Grosvenor Square to the west and Grosvenor Street to the south. To the east of the site are low rise commercial and residential properties in Three Kings Yard and the property is bounded to the north by the Italian Embassy. The property benefits from excellent public transport accessibility with Bond Street Underground Station (Central and Jubilee lines) 400 metres north east of the property and both Oxford Circus Underground Station (Victoria, Central and Bakerloo lines) and Green Park Underground Station (Victoria, Jubilee and Piccadilly lines) 850 metres to the north east and south east respectively. Crossrail is set to deliver a new world class, high speed rail link across London by The Crossrail network is currently under construction and this will further improve the communications of the area. The Bond Street eastern ticket hall will be located in Hanover Square (550m north east) and the new station will provide direct access to Heathrow Airport (29 minutes), Canary Wharf (13 minutes) and Paddington Station (2 minutes). P O R T M A S Q U A R E MARYLEBOE BOD STREET O X F O R D S T R E E T O X F O R D S T R E E T OXFORD CIRCUS H A O V E R S Q U A R E G R E A T M A R L B O R O U G H S T R E E T SOHO O R T H A U D L E Y S T R E E T MARBLE ARCH P A R K S T R E E T E W B O D S T R E E T R E G E T S T R E E T G R O S V E O R D A V I E S S T R E E T G R O S V E O R S T R E E T C O D U I T S T R E E T G O L D E S Q U A R E S A V I L E R O W S Q U A R E OE GROSVEOR SQUARE B R U T O S T R E E T P A R K S T R E E T B E R K E L E Y PICCADILLY CIRCUS P A R K L A E O L D B O D S T R E E T S O U T H A U D L E Y S T R E E T M O U T S T R E E T S Q U A R E ROYAL ARCADE P A R K L A E M A Y F AIR C H A R L E S S T R E E T D O V E R S T R E E T B E R K E L E Y S T R E E T B U R L I G T O A R C A D E P I C C A D I L L Y J E R M Y S T R E E T S T J A M E S S HYDE PARK C U R Z O S T R E E T S T R A T T O S T R E E T GREE PARK ST JAMES S S T J A M E S S T R E E T S Q U A R E P A L L M A L L Bond Street retail Three Kings Yard Grosvenor Street elevation of the property P A R K L A E P I C C A D I L L Y

7 4 1 9 DESCRIPTIO ACCOMMODATIO The footprint of the property extends to 0.27 hectares (0.67 acres). The property comprises 159,745 sq ft (Gross Internal Area) arranged over lower ground, ground and six upper floors. This includes 92,004 sq ft (et Internal Area) of offices (B1 use) and 21,234 sq ft (et Saleable Area) of residential (C3 use). In addition there is ancillary and storage space within the building extending to 17,374 sq ft which is primarily located at lower ground floor level. The office floorspace is arranged over ground to fifth floors, with the sixth floor comprising of residential with a small element of storage space. The High Commissioner s Residence is accessed separately via 3 Grosvenor Square and extends over three levels from lower ground to first floor. The property is an imposing building in a neo-georgian classical style built principally of brick and stone with a mansard roof. The building has been very well maintained and is in good structural condition with the most recent alterations dating from Most internal walls are of brick or concrete construction, some with hidden steel linings for security, as well as a limited number of timber walls. The main interior is largely dated in arrangement and decoration, with no features of note. The High Commissioner s Residence is spacious and of a higher standard of interior decoration. Historically the building was used for residential accommodation, however in 1936 the building was demolished as part of a redevelopment plan by the Duke of Westminster. Between the new building was occupied by the American Embassy. In 1960 the American Embassy relocated from the property and the Canadian Government purchased the building as a new High Commission. It was at this point that the property was renamed Macdonald House in honour of Canada s first Prime Minister, Sir John A. Macdonald. The property is located within Westminster City Council s jurisdiction and falls within both the Core Central Activities Zone and the Mayfair Conservation Area. The property is not a Listed building. The property benefits from a right of way over Three Kings Yard which provides access to the rear of the building. Cycle Hire S tation The composition of the building is detailed on the following page. 23.1m T hree K ings Ya rd TCB 37 The property has been measured by Plowman Craven & Associates in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following approximate floor areas. The full Plowman Craven report is available to download on the marketing website. et Internal Areas Floor Use Area Sq M Area Sq Ft Included Areas Sq M Sq Ft Excluded Areas Sq M Sq Ft Sixth Residence ,801 Corridor Heaters Sixth Floor Total 1, ,855 R Headroom Fifth Office 1, ,884 R Headroom Fourth Office 15, ,584 R Headroom Third Office 1, ,854 Second Office 1, ,427 First Office 13, ,822 Residence ,545 First Floor Total 1, ,367 Ground Office 1, ,433 Steps Entrance Lobby Residence ,015 Heaters Ground Floor Total 1, ,305 Basement 1, ,463 B.M.A Three Kings Yard Basement Total 1, , PC Gross Internal Areas Floor Use Area Sq M Area Sq Ft Roof Plant Sixth Residence Fifth Office Fourth Office Third Office Second Office First Office/ Residence Ground Office/ Residence Basement / Residence Overall Total , Overall Total 12, , LB DAVIES STR EET Bank Memorial to m 53 TCBs Cl ub Bank 24.6m LB 50 8 G R OS V E OR SQ UA RE 44 OTE:- Reproduced from the Ordnance Survey Map with the permission of the Controller of H.M. Stationery Office. Crown copyright licence number Savills (UK) Ltd. OTE:- Published for the purposes of identification only and although believed to be correct accuracy is not guaranteed. 45 to CAR LOS PLA CE to 22 MOUT R OW Living area within the High Commissioner s Residence 12 13

8 FLOORPLAS Plant Ramp Ramp Plant Plant Plant Entrance Hall Toilet Glass Roof Glass Roof Toilet External Stairway Plant Plant Bar Plant Library Snooker Room Bar Plant Security Security Office Entrance Hall Security Toilet Toilet BT Room Lounge Room Visa Entrance Restroom Gym Print Room Grosvenor Street Grosvenor Street Basement Ground Floor Ancillary & Residential Office Ancillary & Residential Office 14 15

9 FLOORPLAS Toilet Grosvenor Street Grosvenor Street First Floor Second Floor Ancillary & Residential Office Ancillary & Residential Office 16 17

10 FLOORPLAS Toilet Toilet Grosvenor Street Grosvenor Street Third Floor Fourth Floor Ancillary & Residential Office Ancillary & Residential Office 18 19

11 FLOORPLAS Flat 61 Flat 64 Flat 67 Store Motor Room Store Flat 62 Motor Room Flat 63 Conservatory Flat 60 Terrace Grosvenor Street Sixth Floor Ancillary & Grosvenor Street Residential Office Plant Plant Fifth Floor Plant Ancillary & Residential Office Seventh Floor Plant 20 21

12 Conservatory in the High Commissioner s Residence Entrance to the High Commissioner s Residence 22 23

13 PLAIG HISTORY One was the subject of three applications for Certificates for Lawful Existing Use for Development (CLEUD), all of which were approved on 7th August 2009 and confirm the use class of the building as a mix of office (B1 use) and residential (C3 use). These applications were as follows: Application number: 09/04639/CLEUD permitted, Use of part of basement, part ground, part first, second, third, fourth and fifth as offices (Class B1). Application number: 09/04640/CLEUD permitted, Use of part of the basement, ground and first floors as High Commissioner s official residence (Class C3). RESIDETIAL MARKET COMMETARY London continues to be the preferred global destination for wealthy people to invest and live in. Besides global standing, amenities, quality of life and facilities, buyers are attracted by the commercial and financial markets, as well as London s history for political and economic stability. The last three years have seen strong growth and as a result average prime central London values are 27.8% above their former 2007 peak, with values in Mayfair standing 37% above this level. Mayfair, along with Belgravia and Knightsbridge, comprise London s golden postcodes and are the focal point for equity rich international purchasers. Capital value inclusive Prime Central London 6.0% 3.0% -1.0% 8.0% 6.5% 24.3% Mayfair has seen limited new build development in recent years compared to these other prime central postcodes, although it is fully expected that Mayfair will re-position itself in the market and deliver product to compete with the very best that London can offer. International demand remains strong and we expect the market to continue along this trajectory and see 6% growth in residential prices by the end of the year (2013). This strong performance is expected to continue in to 2014 and contribute to a 24.3% increase in prime central London prices by 2017, as detailed in the table below. Application number: 09/04641/CLEUD permitted, Use of part ground floor and part first to fifth floors and sixth floor as 6 residential units (Class C3). There are no other planning applications of note pertaining to the property. A planning appraisal has been prepared by Savills, which is accessible at and includes a full schedule of historic applications. High Commissioner s Residence DEVELOPMET POTETIAL On achieving vacant possession of the property there is considerable potential to redevelop the site for alternative uses, subject to achieving the necessary consents. The planning appraisal prepared by Savills assesses this opportunity, considering the appropriateness of alternative land uses and the prospects of achieving a comprehensive redevelopment of the property. As the property is not Listed, there may be scope in principle to redevelop the property behind the existing facade provided that any proposal respects the context and situation within the Mayfair Conservation Area. With regard to hotel use, the Council s planning policy seeks to locate hotels within the Central Activities Zone, and therefore, the provision of such a use should be supported in this location subject to detailed planning considerations. The prevailing planning policy position seeks to protect residential use and accordingly, were it proposed to redevelop for occupation as a hotel, provisions would need to be made to re-provide the existing C3 residential floorspace. Alternatively, a mixed residential and hotel use could be provided to overcome any challenges in this regard. Current Westminster City Council planning policy supports the change of use of the B1 office element of the property to C3 residential use and identifies residential as the priority land use within the Borough. This is particularly the case within the Central Activities Zone, in which the building is located, where conversion to permanent residential use would be generally acceptable. Oval Room in the High Commissioner s Residence Front entrance to High Commissioner s Residence 24 25

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15 OFFICE MARKET COMMETARY TEURE FURTHER IFORMATIO The Mayfair submarket is the traditional core of the West End office market, with an office stock of around 12m sq ft. It is within Mayfair that the highest rents are achieved in the West End. This reflects a constrained market with a broad base of tenants, as well as the prestige of the Mayfair address. The sources of demand for offices in Mayfair are fairly diverse, reflecting its position as a headquarters location for many different types of business. Over the period the insurance and financial services sectors have been the most dominant players in these submarkets, accounting for 32% of all the office space leased, a trend continuing in to 2013 with a 31% market share. Mayfair has a supply of 965,280 sq ft representing a vacancy rate of 7.8%, with this rise resultant from several new major developments delivered over the course of 2013 including 90,000 sq ft at 10 ew Burlington Street, W1, 28,000 sq ft at Davies Street, W1, and 25,000 sq ft at 8 Hanover Street, W1. ine deals have achieved rents in excess of 100 per sq ft in 2013, of which the highest is 120 per sq ft. This is the highest rent since Quarter 3 in These deals have pushed average prime rents to 105 per sq ft, up on per sq ft in We expect continued rental growth in Mayfair over the course of 2013 and growth to average 6% per annum over a five year period ( ). Meeting Room within the property TThe property is registered with the Land Registry under the title number GL with a long leasehold interest. A copy of the lease can be found on the website and a summary of the lease terms is set out below: Estate - the long leasehold interest comprises os. 1, 1A and 3 and os. 37 and 38 Grosvenor Street. Term - a 999 year term from 28 ovember 1947 to 28 ovember 2946 was granted by the Grosvenor Estate and assigned to the Government of Canada on 30 September Rent - the rent is 100 per annum, fixed for the whole term of the lease. Access - the premises benefits from an easement providing access to and from Davies Street over Three Kings Yard. Use - the user clause permits the premises to be used for alternative purposes subject to obtaining the lessor s prior written consent, which cannot be unreasonably withheld having regard to the character and uses of neighbouring premises. The permitted uses are: offices for the diplomatic and consular purposes of the Government of Canada only; the basement, ground, first and second floors fronting onto Grosvenor Square may be used as a banking house or insurance office or such other business, profession or trade; the parts of the premises fronting Three Kings Yard and Grosvenor Street up to a point not closer than 60 feet from the corner of and Grosvenor Street may be used as shops or offices; and the premises can be kept and used as private residential flats or maisonettes. Alienation - the lease does not restrict or require any consent for assignment, subletting or charging the whole or any part of the premises. Alterations - alterations to and any redevelopment of the premises will be subject to obtaining the lessor s written consent under the terms of the lease. A dedicated project website is available which contains detailed information on this opportunity at: This includes the following information: Title Register and Plan Copy of the lease Plowman Craven Measured Building Survey Building Survey Energy Performance Certificates Planning Appraisal METHOD OF SALE The property is being marketed for sale on a private treaty basis. Offers are sought for the long leasehold interest subject to contract and a short term leaseback to the Canadian High Commission. VIEWIGS All viewings are by appointment only through Savills. Please contact any of the agents listed to arrange a viewing. EPC The Energy Performance Certificate can be found on the marketing website. COTACT The Connaught Hotel entrance Main Staircase within the property HOTEL MARKET COMMETARY Mayfair is recognised as London s most desirable hotel location with a significant concentration of 5* hotels located within its boundaries including Claridge s, The Ritz and The Connaught. The appetite for prime hotel investments in Central London is currently very strong. This is principally driven by demand from international buyers. In 2012 overseas investors accounted for approximately 60% of volumes dominated by Asia Pacific purchasers and followed by those in the US. This overseas interest has been very much focused on the luxury end of the market, which offers strong capital protection and the prestige of owning and operating some of London s finest hotels. Roof Terrace within the property In terms of visitors to the capital, the Olympics provided a welcome boost to the London hotel market last year with increased tourism levels. Moving forward, we expect visits by overseas residents for the year end of 2013 to exceed those seen in 2012 assisted by a relatively weak Sterling and the lure of the Capital s retail offer. Insurance - the lessee must insure the premises against loss or damage by fire in the full reinstatement value and in the joint names of the lessor and the lessee. Repair - the lessee must keep the premises in good repair and condition and must redecorate the exterior of the premises every three years. Additional items/costs The lessee is obliged to pay a fair proportion of the expenses of maintaining party walls and all gutters, sewers and drains which are used jointly with neighbouring properties and of the upkeep of the paving and lighting in Three Kings Yard. The lessee also pays all rates and other taxes and charges and all the costs of all utilities consumed on the premises. Tim Whitmey +44 (0) twhitmey@savills.com Simon Stone +44 (0) sstone@savills.com Luke Hawkesbury +44 (0) lhawkesbury@savills.com Andrew Boyd +44 (0) aboyd@savills.com 33 Margaret Street London W1G 0JD Macdonald House 1-3 London W1K 4AB 28 29

16 Important otice: Savills, their clients and any joint agents give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. Designed and Produced by Savills Marketing: October

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