67-75 KINGSWAY LONDON WC2 Prime Midtown Office and Retail Investment

Transcription

1 67-75 KINGSWAY LONDON WC2 Prime Midtown Office and Retail Investment

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3 INVESTMENT RATIONALE Freehold office and retail investment opportunity. Prime location in the heart of Midtown, an established Central London office market. Prominent corner property on the west side of Kingsway close to Holborn Underground Station. Attractive stone building providing 30,528 sq ft (NIA) of office and retail accommodation over basement, ground and seven upper floors. Multi-let to eight tenants on nine leases producing an income of 1,087,273 per annum, which reflects an overall office rent of per sq ft. The fourth and fifth floors were fully refurbished in January 2011 and will benefit from a 12 month rental guarantee at per sq ft. Average weighted unexpired lease term of approximately five years with no single tenant accounting for more than 20% of the total income. Excellent asset management opportunities and the potential to benefit from continued rental growth on the vacant office floors. Offers are invited in excess of 16,000,000 (SIXTEEN MILLION POUNDS), subject to contract and exclusive of VAT. A purchase at this level reflects a low capital value of 524 per sq ft and a net initial yield of 6.42% after deducting purchaser s costs of 5.80%. For further information and to arrange an inspection, please contact CB Richard Ellis or Tudor Toone. John Starkie t: f: e: john.starkie@cbre.com Heidi Wade t: f: e: heidi.wade@cbre.com Ben Goodberry t: f: e: bengoodberry@tudortoone.com Rob Tudor t: f: e: robtudor@tudortoone.com

4 LOCATION Midtown is an excellent Central London location equidistant between the core West End and the City office markets and within a short walk of the world-famous retail and leisure district of Covent Garden. Midtown has traditionally been associated with the legal and accountancy professions due to its close proximity to the Royal Courts of Justice, but today it offers a diverse range of occupiers from the professional, financial, legal, media and public sectors. Midtown is an established and popular office destination in Central London, which has excellent transport connections and large modern office floor plates at affordable rents relative to the surrounding areas. TOTTENHAM COURT ROAD Kingsway is a prime thoroughfare within the heart of Midtown and a major north-south route through London linking High Holborn to the north with Strand to the south (via Aldwych). Kingsway was built in the 1900s and is still lined with many of the original stone buildings of various neoclassical and neo-baroque styles Kingsway occupies a prominent corner position on the west side of Kingsway at its junction with Wild Court. Kingsway provides a wide selection of shopping amenities, restaurant and wine bars serving the large catchment of local office workers. Many national retailers and food and beverage brands are represented, including Boots, Sainsbury s, Starbucks, EAT, Cafe Rouge, Belgo and Pitcher & Piano. TOTTENHAM COURT ROAD WHITCOMB ST LEICESTER ORANGE ST MALL PALL LEICESTER BLOOMSBURY STR ET THE NATIONAL GALLERY CRANBOURN STREET CHARING CROSS ROAD THE BRITISH MUSEUM RUSSELL GARDENS NEW OXFORD UPPER ST. MARTIN S LANE ST. MARTI N S LANE TRAFALGAR LONG ACRE STREET RUSSELL GREAT RUSSELL STREET ENDELL STREET NORTHUMBERLAND AVE SOUTHAMPTON ROW HIGH HOLBORN DRURY LANE COVENT GARDEN CHARING BLOOMSBURY WAY FLORAL STREET COVENT GARDEN MARKET KINGSWAY LONG ACRE ROYAL OPERA HOUSE STRAND EMBANKMENT DRURY LANE VICTORIA EMBANKMENT GARDENS VICTORIA EMBANKMENT WILD COURT GREAT QUEEN ST HUNGERFORD BRIDGE HUNGERFORD BRIDGE PROCTER STREET HOLBORN RED LION KEMBLE KINGSWAY ST THEOBALD S ROAD WATERLOO BRIDGE PORTU ALDWYCH LINCOLN S INN FIELDS G AL STRAND SOMERSET HOUSE GRAY S INN GARDENS HIGH HOLBORN STREET VICTORIA EMBANKMENT WATERLOO CHANCERY LANE ROYAL COURTS OF JUSTICE STRAND FLEET ST TEMPLE CHANCERY LANE MID DLE TEMPLE LANE RIVER THAMES H WHITEHALL

5 RUSSELL PRIME MIDTOWN OFFICE AND RETAIL INVESTMENT KINGSWAY, LONDON WC2 GARDENS LOCAL OCCUPIERS Banking & Finance 2. Eurohypo AG UK 6. Aegon 11. Babson Capital 12. Ashmore Group Legal 15. BCL Burton Copeland 17. Farrer & Co 18. Olswang 19. Towers Perrin COMMUNICATIONS TOTTENHAM COURT ROAD Professional, Government, Public Sector & Other 1. Virgin Media 3. Aegis 4. Ofsted 5. Action for Children 7. Civil Aviation Authority 8. Adecco 9. BBC 10. London School of Economics 13. Tishman Speyer 14. Royal College of Surgeons 16. Secretary of State 20. Mitsubishi Corporation 21. EDF 22. Davis Langdon Kingsway benefits from excellent transportation links with Holborn Underground station (Central and Piccadilly lines), Covent Garden Underground station (Piccadilly line), and Temple Underground station (Circle and District lines) all situated within a short walking distance. Charing Cross and Thameslink mainline stations are also within close proximity, offering high speed rail links to the south east of England. TOTTENHAM COURT ROAD WHITCOMB ST LEICESTER ORANGE ST MALL PALL LEICESTER BLOOMSBURY STR ET THE NATIONAL GALLERY CRANBOURN STREET CHARING CROSS ROAD THE BRITISH MUSEUM NEW OXFORD UPPER ST. MARTIN S LANE ST. MARTI N S LANE TRAFALGAR GREAT RUSSELL STREET LONG ACRE STREET ENDELL STREET HIGH HOLBORN DRURY LANE COVENT GARDEN CHARING 2 1 NORTHUMBERLAND AVE BLOOMSBURY WAY FLORAL STREET SOUTHAMPTON ROW KINGSWAY LONG ACRE ROYAL OPERA HOUSE COVENT GARDEN MARKET STRAND EMBANKMENT VICTORIA EMBANKMENT 3 4 HOLBORN 5 6 WILD COURT GREAT QUEEN ST PROCTER STREET DRURY LANE HUNGERFORD BRIDGE RED LION 7 KEMBLE VICTORIA EMBANKMENT GARDENS Kingsway 17 KINGSWAY ST THEOBALD S ROAD WATERLOO BRIDGE PORTU ALDWYCH LINCOLN S INN FIELDS G AL STRAND SOMERSET HOUSE GRAY S INN GARDENS HIGH HOLBORN STREET VICTORIA EMBANKMENT CHANCERY LANE ROYAL COURTS OF JUSTICE STRAND FLEET ST TEMPLE CHANCERY LANE MID DLE TEMPLE LANE RIVER THAMES Bakerloo Central Circle District Hammersmith & City Jubilee Metropolitan Northern Piccadilly D L R Victoria HOLBORN VIA WHITEHALL The location is well served by regular bus services that pass along Kingsway, High Holborn and Aldwych, providing quick access to the West End and City. HUNGERFORD BRIDGE Waterloo & City

6 Saint Anselm And Saint Cecilia DESCRIPTION OFFICES Kingsway was constructed in the early 20th century and forms the southern corner of a terrace block with return frontage to Wild Court. The property comprises high quality office and retail accommodation totalling 30,528 sq ft NIA. RETAIL The retail accommodation measures 4,472 sq ft NIA arranged as three self-contained units at 67, 73 and 75 Kingsway. 67 Kingsway is the largest unit arranged as a restaurant over ground and lower ground floors with a prominent return frontage to Wild Court; 73 Kingsway comprises a newsagent at ground floor; and 75 Kingsway trades as a Subway franchise over ground and mezzanine level. The office element measures 26,056 sq ft NIA and is arranged over basement, ground and seven upper floors. The floors are accessed via a dedicated entrance hall on the ground floor at 71 Kingsway, and storage is provided at basement level. The open plan L-shaped floor plates measure circa 4,100 sq ft and enjoy good levels of natural light from three elevations. The flexible floor plates are capable of sub-division, which is the case on the second floor. Much of the office accommodation has been subject to substantial refurbishment over recent years. The ground floor reception was upgraded and redecorated in 2011 and features a solid tiled floor with category II lighting. Retail Retail a 7c Kingsway Hall Hotel d N Offices Offices 0m 10m 20m 30m Not to scale UKMap Copyright The GeoInformation Group Licence No. LANDMLON

7 In addition to the 2007 refurbishment of the second, sixth and seventh floors, the fourth and fifth floors were refurbished in early 2011 to the following specification: VRF comfort heating and cooling Fully accessible metal tiled raised floors Suspended, metal tiled ceiling (4th floor) and hard plasterboard ceiling (5th floor) LG7 compliant lighting The remaining office accommodation is fitted with VRF air conditioning, fully raised floors and a combination of suspended ceilings with recessed lighting and hard plasterboard ceilings with suspended light fittings. The property has an automatic six person (476 kg) lift and central stairwell serving the office accommodation. The common areas have recently been redecorated and refurbished male and female WCs are located on alternate floors.

8 FLOOR AREAS The property has been measured by Plowman Craven in accordance with the RICS Code of Measuring Practice (Sixth Edition). The premises comprise the following net internal areas: Floor Use Floor Area Sq ft Sq m 71 Kingsway 7th Office th Office 3, th Office 4, th Office 4, rd Office 4, nd Office 4, st Office 3, Ground Reception Basement Storage 1, Sub-total 26,056 2, Kingsway* Ground Retail Zone A Retail Zone B Retail Zone C Basement Ancillary Sub-total 2, Kingsway** Ground Retail Zone A Retail Zone B Retail Zone C Sub- total Kingsway** Ground Retail Zone A Zone A Zone B Zone B Zone C Zone C Mezzanine Ancillary Sub-total 1, TOTAL 30,528 2, * Retail areas agreed at rent review ** Retail areas provided by CBRE

9 FLOOR PLANS Ground Floor Third Floor Not to scale - for indicative purposes only 67 Kingsway 73 Kingsway 75 Kingsway 71 Kingsway

10 TENURE Freehold. TENANCY SCHEDULE Tenant Floor Use Floor Areas Lease Details Next Rent Review (Break Option) Rent Passing Per Annum (Per Sq Ft) Comments Sq Ft Sq M Start Date Expiry Date Chayton Capital LLP Seventh Office Sixth Office 3, /02/ /02/ /02/ ,293 ( 52.43) Rent deposit of 108,146 plus a sum equivalent to VAT. Service charge cap of 43, per annum for 2010 rising in accordance with RPI. Sub Total 4, Rental Guarantee Fifth Office 4, ,135 ( 39.50) The vendor will provide a 12 months rent, rates and service charge guarantee. Rental Guarantee Fourth Office 4, ,256 ( 39.50) The vendor will provide a 12 months rent, rates and service charge guarantee. DataCash Group Limited Third Office 4, /03/ /03/ /03/2015 (30/03/2015) 102,500 ( 24.87) 6 months rent free if the tenant break is not exercised. Lease outside the Landlord and Tenant Act TDM Group Limited Second (South) Office 2, /12/ /12/ /12/2014 (06/12/2014) 62,150 ( 25.85) Half rent until 07/09/2011. Rent deposit of 23, held. 10 months rent free if the tenant break is not exercised. Lease outside the Landlord and Tenant Act Ashridge (Bonar Law Memorial) Trust Second (North) Office 1, /06/ /06/ /06/2014 (28/06/2014) 50,220 ( 29.44) Half rent until 29/06/ months rent free if the tenant break is not exercised. Lease outside the Landlord and Tenant Act SV Life Sciences Advisers LLP First Basement Office Storage 3, /04/ /04/ /04/2016 (25/04/2016) 103,695 ( 30.00) Rent free until 25/01/ months rent free if the tenant break is not exercised. Lease outside the Landlord and Tenant Act Sub Total 3,

11 TENANCY SCHEDULE Tenant Floor Use Floor Areas Lease Details Next Rent Review (Break Option) Rent Passing Per Annum (Per Sq Ft) Comments Sq Ft Sq M Start Date Expiry Date Retail Zone A Signature Restaurants Limited (t/a Belgo) 67 Kingsway Retail Zone B Retail Zone C Ancillary Basement /03/ /03/ /03/ ,000 ( Zone A) Sub Total 2, Sikander Ali Choudhary 73 Kingsway Retail Zone A Retail Zone B Retail Zone C Sub Total /07/ /07/ ,500 ( Zone A) Personal rent concession agreed as follows: 09/10-09/11 44,500 09/11-07/12 45,500 Lease on assignment from Phones 4u Limited. Retail Zone A Retail ZoneA STJ Associates (t/a Subway) 75 Kingsway Retail Zone B Retail Zone B Retail Zone C /05/ /09/ /09/ ,500 ( Zone A) Retail Zone C Ancillary Mezzanine Sub Total 1, TDM Group Limited Basement Storage /12/ /12/2019 (06/12/2014) 2,025 ( 7.61) Terminates with second floor lease. 10 months rent free if the tenant break is not exercised. Lease outside the Landlord and Tenant Act Vacant Basement Storage 1, Total * 30,285 2, ,087,273 * The total floor area excludes the reception, which measures 243 sq ft (22.58 sq m)

12 TENANT COVENANT INFORMATION Chayton Capital LLP* (20% of total income) Chayton Capital LLP are investment advisers providing development and strategic investment expertise to a variety of institutional and private clients investing in real estate, agriculture and related industries. The company has offices in London, Budapest, Czech Republic, Romania and South Africa. Chayton Capital LLP has an Experian Delphi Score of 93 out of 100, which represents a very low risk of business failure. Further information about Chayton Capital LLP can be found on the company website Signature Restaurants Limited (13% of total income) Signature Restaurants Limited is a UK restaurant operator with two brands: Strada and Belgo Restaurants & Bierodrome. Signature Restaurants Limited reported a net worth of million as at May 2010 and is part of Tragus Holdings, who purchased the company in May 2007 for 140 million. Tragus Holdings, formed in 2002, is one of the UK s largest independent restaurant chains operating 280 restaurants including brands such as Café Rouge, Bella Italia and Strada. The ultimate parent company is The Blackstone Group. Signature Restaurants Limited has an Experian Delphi Score of 100 out of 100, which represents a very low risk of business failure. Further information about Signature Restaurants Limited can be found on the company website SV Life Sciences Advisers LLP (10% of total income) SV Life Sciences Advisers LLP is a leading international life sciences venture capital firm with offices in Boston, London and San Francisco. The company was founded in 1993 and currently employs 33 professionals who advise or manage six funds with capital commitments of approximately $2 billion. As at December 2009, the company reported a turnover of million and pre-tax profits of million. SV Life Sciences Limited has an Experian Delphi Score of 98 out of 100, which represents a very low risk of business failure. Further information about SVLife Sciences Advisers LLP can be found on the company website DataCash Group Limited (9% of total income) DataCash Group Limited develops and provides outsourced and multi-channel electronic payment and fraud solutions principally in Europe. It also offers PayPal, an express payment lane for customers by adding to their checkouts via their existing integration with DataCash. The company was founded in 1997 and is headquartered in London. As at 31 December 2009, DataCash Group reported a turnover of million and a pre-tax profit of million (a 47.61% increase on the year from 31/12/2008). As of 22 October 2010, DataCash Group operates as a subsidiary of MasterCard/Europay U.K. Limited. DataCash Group Limited has an Experian Delphi Score of 100 out of 100, which represents a very low risk of business failure. Further information about DataCash Group Limited can be found on the company website TDM Group Limited* (6% of total income) TDM Group Limited is an IT solutions company that tailors bespoke IT solutions to a range of business clients. The company has partnerships with Microsoft (Gold Partner), HP, VMware, NetApp, Redhat and Cisco Systems delivering high quality software and hardware packages. TDM Group Limited has an Experian Delphi Score of 100 out of 100, which represents a very low risk of business failure. Further information about TDM Group Limited can be found on the company website Ashridge (Bonar Law Memorial) Trust (5% of total income) Ashridge (Bonar Law Memorial) Trust is an educational institution providing executive education and management training to individuals and business organisations through open enrolment programmes. The Ashridge Strategic Management Centre, administered at the property, is a widely recognised authority on strategic management issues within large companies. Further information about Ashridge Business School can be found on the company website Sikander Ali Choudhary (4% of total income) Sikander Ali Choudhary is a private individual operating the retail unit as a newsagent. STJ Associates Limited (3% of total income) STJ Associates Limited is a private limited company operating as a franchise to Subway Ltd. *Rent deposits held

13 PLANNING The property is not listed but is situated within the Kingsway Conservation Area. The property lies within the London Borough of Camden and further information can be found at VAT The property is elected for VAT and it is therefore envisaged that the purchase will be treated as a Transfer of a Going Concern (TOGC). PROPOSAL Offers are invited in excess of 16,000,000 (SIXTEEN MILLION POUNDS) subject to contract, and exclusive of VAT. A purchase at this level reflects a low capital value of 524 per sq ft and a net initial yield of 6.42% after deducting purchaser s costs of 5.80%. FURTHER INFORMATION For further information and to arrange inspections, please contact CB Richard Ellis or Tudor Toone: a John Starkie t: f: e: john.starkie@cbre.com Heidi Wade t: f: e: heidi.wade@cbre.com Ben Goodberry t: f: e: bengoodberry@tudortoone.com Rob Tudor t: f: e: robtudor@tudortoone.com

14 DISCLAIMER Important notice relating to the Misrepresentation Act 1967 and the Property Misdescriptions Act 1991: CB Richard Ellis Limited and Tudor Toone LLP (hereafter we ) for itself and for the vendor as agents for the vendor give notice that: 1. We provide the information contained in these particulars for guidance to intending purchasers, licensees or any other third parties and they are for your general information only and will be used at your own risk. 2. We will use all reasonable endeavours to ensure the accuracy of information, however, we do not guarantee or warrant the accuracy or completeness, factual correctness or reliability of any information in the particulars (especially as the information may have been obtained from third parties) and do not accept any liability for any errors or omission including any inaccuracies or typographical errors. 3. Any interested purchasers, licensees or any other third parties should not view the information in the particulars as statements or representations of fact and should satisfy themselves that the facts and specific details in the particulars are correct and accurate especially in relation to floor areas and other measurements through inspection or other means, as appropriate, and will be responsible for taking independent surveys or valuations before entering into any legally binding transaction in respect of the property or premises that is the subject matter of these particulars. 4. We have not made any investigations or otherwise of any issues concerning pollution and potential land, building, air or water contamination. Prospective purchasers, licensees or any other third parties must undertake their own enquiries and satisfy themselves in this regard. 5. Unless otherwise stated, all prices and rents are quoted exclusive of VAT. May 2011 NOTE: ALL PLANS AND PHOTOGRAPHS ARE FOR IDENTIFICATION PURPOSES ONLY AND ARE NOT TO BE RELIED UPON.