Newsletter Cyril Leonard make a Quantum leap with a major Investment Sale to M&G in Maidenhead

Transcription

1 Newsletter 2015 Cyril Leonard make a Quantum leap with a major Investment Sale to M&G in Maidenhead

2 Newsletter 2015 Cover story Quantum, Norden Road, Maidenhead Cyril Leonard first advised on the funding of this business park development back in Cyril Leonard then advised Terrace Hill / Urban & Civic on the sale of the completed investment in June 2014 to M&G Real Estate at a price of 46.75m to show an initial yield of 6.7%. Quantum comprises two buildings totalling 124,000 sq ft let to Biogen, Abbott, Compuware, AbbVie and Seagate Technology with a WAULT of 7.0 years and 3.6 years to Tenant breaks. Andrew Hogge / Olly Spero / Dan Rosenberg A price of 46.75m was paid by M&G to show an initial yield of 6.7% Stratford Place, London, W1 Cyril Leonard purchased this 18,000 sq ft West End building in 2013 for a Private Client. Having evaluated development / conversion options, Cyril Leonard procured an offer for the Client in 2014 and concluded a sale at a price showing a profit on cost of 66.6% over a 15 month period. The sale price showed a profit on cost of 66.6% over 15 months Mark Harrison / Peter Kauffer Andrew Hogge Unit 2 Deeside Industrial Park, Deeside Cyril Leonard advised LaSalle Investment Management on the purchase and leaseback to Great Bear Distribution on this 90,000 sq ft high bay warehouse on the Deeside Industrial Estate. Great Bear sold their freehold interest at a price of 4.25m subject to a 10 year leaseback with a Tenant break after 5 years at a rental of 361,000 pa equivalent to 4.00 psf. The investment provides a net return of 8%. Sale & Leaseback with Great Bear.

3 Bond Street, House, London W1 Cyril Leonard s Project and Building Consultancy team were instructed by Clients to undertake pre-acquisition technical due diligence and a building survey of this circa 54,900 sq ft mixed use development in connection with their acquisition for investment purposes for circa 110 million. Originally a series of individual townhouses, the building has seen a process of amalgamation and reconfiguration over its lifetime prior to a 2006 remodelling which provided office space on upper floors with retail at ground and basement level. Originally a series of individual townhouses, the building has seen a process of amalgamation and reconfiguration over its lifetime. Simon Blausten/Jonathan Slater Haywards Place, Clerkenwell, London, EC1 Cyril Leonard were instructed by Mayfair Capital to advise them on the acquisition of this 10,000 sq ft loft style predominantly refurbished office building in the heart of Clerkenwell. The building is multi-let to 5 Tenants and the current income is 360,000 pa with increases to circa 540,000 pa. The property has asset management opportunities including consent for the construction of a new floor. A price of 8.5m was paid. Cyril Leonard are working closely with Mayfair Capital, supervising the construction of two new commercial developments. Cyril Leonard advises Mayfair Capital. Olly Spero / Dan Rosenberg / Andrew Hogge Mount Street, London W1 Cyril Leonard advised Private Clients on the purchase of this prime Retail/ Residential building opposite the Connaught Hotel. This is an impressive Grade II Listed Building held on a 999 head leasehold interest from the Grosvenor Estate. The retail units are let to Groupe Arnault whose brands include Christian Dior and LVMH. Cyril Leonard secured this property off market. The price paid is subject to a Confidentiality Agreement. Cyril Leonard secured this prime property off market. Olly Spero 4 Clifford Street, London, W1 Cyril Leonard advised jointly with Orme Retail on the acquisition of this prime Mayfair freehold building providing circa 6,000 sq ft of floor area. The Purchaser will be occupying the building and trading as an art gallery. A price of 12m was paid equivalent to 2,000 psf. A price of 12m was paid for this Mayfair freehold art gallery. Mark Harrison

4 Newsletter 2015 Frankfurt Acquisition Cyril Leonard Munich was appointed to act for one of our major Corporate Clients to acquire about 7,000 sq m (75,000 sq ft) of modern office space with high quality fit out in the Frankfurt area. After searching the market and inspection of various existing buildings it was recommended to Lease 6,800 sq m of space in a development of STRABAG which was still in the planning phase. This way Cyril Leonard were in a position to negotiate a 10 year lease for the Client at market terms but including specialised fit out which would not have been achievable otherwise. This was the largest letting in the area in the period. Our Client was very satisfied with the building and standard of fit out. Cyril Leonard Munich Entire 3rd floor, 13 Hanover Square, London W1 Cyril Leonard represented Blue Mountain Capital on the disposal of their former offices, totalling 4,250 sq ft held on a Lease until April With only 18 months remaining, Cyril Leonard successfully negotiated a simultaneous surrender of Blue Mountain s Lease and the grant of a new 10 year Lease from the Freeholder. The in-going Tenant also accepted our Clients dilapidations obligation. The surrender of the lease and the grant of a new 10 year Lease was successfully negotiated. Peter Kauffer Dallington Street & 2-6 Northburgh Street, London On behalf of Property Company Clients Cyril Leonard have been appointed to act as Project Managers and Employer s Agents in relation to this existing 64,000 sq ft office development in Clerkenwell. The scheme will include the extension of the building to provide circa 80,000 sq ft of newly refurbished and reconfigured office accommodation. The extension will include the addition of new floors as well as extensions of existing lightwells to provide new accommodation. The scheme will include the extension of the building to provide circa 80,000 of additonal sq ft Jonathan Slater/Andy Black Olly Spero/Dan Rosenberg Chiltern Park Cyril Leonard advised on the off market acquisition of this 11,458 sq ft headquarter office building in Chalfont St Peter for a private overseas Client. The property was constructed to a high standard in 2012 and fully let to Zumtobel Lighting Ltd as their UK HQ with a term of 12.5 years unexpired. A price of 5m was paid equating to a Net Initial Yield of 5.65% and a capital value of 434 psf, which is slightly higher than the Vacant Possession value. The Project & Building Consultancy Department provided technical due diligence to support the quality of the build. South East Office investment acquired with well secured income

5 6 New Street Square, London, EC4 Cyril Leonard s Agency Department acted for AEA Technology Plc on the disposal of the entire 10th floor totalling 11,000 sq ft in this award winning mixed use development by Land Securities. Cyril Leonard were successful in securing Burgess Salmon and avoided our Client from providing an AGA, thereby voiding their liability for the remainder of the term. The premises comprised the entire 10th floor totalling 11,000 sq ft; in this award winning mixed use development by Land Securities. Peter Kauffer Volkswagen Dealership, Colchester Cyril Leonard were instructed by Institutional Fund Clients to act on their behalf as Monitoring Surveyors following execution of an Agreement for Lease under which the Fund acquired the Freehold interest in the development on completion. The work comprised the construction of 20,000 sq ft of car showroom and workshop space pre-let to Volkswagen on a Greenfield site which was procured under the terms of a JCT Design and Build Contract with a 31 week Contract programme and a 3.6 million Contract Sum. The work comprised the construction of 20,000 sq ft of car showroom and workshop space. Andy Black New Fetter Place, London EC4 Cyril Leonard s Agency Department advised the national house builder, Crest Nicholson Plc., on the acquisition of their new UK headquarters in Mid Town. The premises comprised the entire 7th floor totalling 6,160 sq ft. A rent of 354,200 per annum equating to per sq ft was negotiated by Cyril Leonard on the basis of a 10 year lease and a 12 month rent free period for the Client. The premises comprised the entire 7th floor totalling 6,160 sq ft and a rent of 354,200 per annum. Peter Kauffer Mutual House, Regent Street, London Cyril Leonard were instructed to undertake pre-purchase technical due diligence on behalf of Investment Clients on this circa 27,000 sq ft landmark property in Regent Street. The building was originally constructed in circa 1921/1926 and was extensively refurbished in The property currently comprises retail on ground floor level with 6 upper floors of office accommodation. The building was originally constructed in circa 1921/1926 and was extensively refurbished in Simon Blausten

6 Newsletter 2015 Kingfisher House, Aylesbury Cyril Leonard advised Amalgamated Berkshire on the sale of this 30,000 sq ft office building in Aylesbury. The property was previously let to the Inland Revenue who vacated upon lease expiry in Cyril Leonard advised the client to obtain a change of use to residential via Permitted Development Rights. Following consent for a residential conversion Cyril Leonard jointly marketed the property as a development opportunity. It sold significantly in excess of the asking price to a residential developer. Cyril Leonard sold for significantly in excess of the asking price to a residential developer. Dan Rosenberg / Andrew Hogge Fleet Street, London, EC4 Cyril Leonard advised Private Clients of the Royal Bank of Canada on the acquisition of this prime banking/ residential building on the south side of Fleet Street let on a long lease to Barclays Bank Plc. Cyril Leonard advised on this transaction, the surveys were undertaken by our Project & Building Consultancy Team. The property is now managed by our Asset Management Department. Surveys were undertaken by our Project & Building Consultancy Team. The property is now managed by our Asset Management Department. Mark Harrison 69 Carter Lane, London EC4 Following the completion of prepurchase surveys and acquisition of this office investment by Institutional Clients, Cyril Leonard were instructed to act with the Client s Asset Managers in order to assess and determine the Tenants dilapidation liabilities and to advise in connection with strategy for use of the property following expiry of the existing Tenant s lease. This involved the establishment of a Consultant Team, the undertaking of a feasibility study and the progressing of Planning studies in order to fully appraise Client s options. Simon Rooke Fitzroy Street and Eaton Street, Cambridge Cyril Leonard advised our in house Client, Oakburn European Properties on the acquisition of this retail parade in the pedestrianised section of Fitzroy Street opposite the Grafton Shopping Centre in the centre of Cambridge. There is potential to improve the value through conversion of the upper parts to residential. The reletting of a vacant unit and restructuring of occupational leases. Cyril Leonard s Asset Management Department have taken on the management of the building following surveys cleared by our Project & Building Consultancy Team. A price in the region of 3.5m was paid to provide a net initial yield of circa 6%. Olly Spero / Tom Fitzgerald

7 Industrial Portfolio On behalf of Investra Capital Ltd Cyril Leonard has acquired three industrial units for a total price of circa 7m. The three units are located in Telford, Norwich and Peterlee and total 205,930 sq ft. The unit in Telford is located on an established industrial estate and is let to Chequer Foods Ltd totalling 93,580 sq ft. The unit is let for a further 13 years to expiry at a rent of 298,650 pax equating to 3.20 psf. The Client acquired it for a price of million reflecting a net initial yield of 8.00% and a capital value of 37 psf. The unit in Norwich is located on the established Vulcan Road Industrial Estate and is let to A Novo UK Ltd totalling 43,172 sq ft. The unit is let for a further 4 years to expiry at a rent of 161,250 pax equating to 3.75 psf. The unit in Peterlee is on the established North East Industrial Estate where Caterpillar are the major occupiers. The unit is let to Saica Pack UK Ltd as their main UK production facility totalling 69,178 sq ft. The unit is let for a further 5.7 years to expiry at a rent of 180,200 pax equating to 2.60 psf. Olly Spero Sale and Leaseback transaction for leading engineering group in Germany Cyril Leonard Munich was appointed by one of the leading German engineering groups in the automotive sector which serves all the major German car brands to structure and facilitate a sale and lease back transaction for 5 core properties of the group located in Fulda, Recklinghausen, Cologne and Ingolstadt. There were conditions to be completed with regards to the off balance sheet structure and flexibility of use and further development. After focused marketing and extensive negotiations, Cyril Leonard achieved a sale at a price in the region of 38m in time to meet fiscal year requirements. Cyril Leonard Munich 43 Reeves Mews, London W1 Cyril Leonard acted as Development Monitors for building Clients in connection with the redevelopment of an existing mews property in Mayfair to create a new terraced town house providing approximately 7,500 sq ft (696 sq m) of accommodation on basement, ground and two upper floors. The project was completed at a cost of circa 3 million over a 13 month contract period. Simon Blausten

8 Contacts Investment / Development Andrew Hogge +44 (0) andrew.hogge@cyrilleonard.co.uk Mark Harrison +44 (0) mark.harrison@cyrilleonard.co.uk Oliver Spero +44 (0) oliver.spero@cyrilleonard.co.uk Corporate Real Estate Consultancy Douglas Blausten +44 (0) douglas.blausten@cyrilleonard.co.uk Project & Building Consultancy Simon Blausten +44 (0) simon.blausten@cyrilleonard.co.uk Jonathan Slater +44 (0) jonathan.slater@cyrilleonard.co.uk Simon Rooke +44 (0) simon.rooke@cyrilleonard.co.uk Leasing & Broking Peter Kauffer +44 (0) peter.kauffer@cyrilleonard.co.uk Professional Services / Asset Management James Portugal +44 (0) james.portugal@cyrilleonard.co.uk Munich Office Elmar Schilling +49 (0) elmar.schilling@cyrilleonard.de Cyril Leonard Chartered Surveyors 22 Gilbert Street Grosvenor Square London W1K 5EJ, UK T: +44 (0) F: +44 (0) Cyril Leonard Pettenkoferstr Munich, Germany T: +49 (0) F: +49 (0) No material may be reproduced in whole or part without written permission. While every care is taken, the publisher cannot be held legally responsible for any errors in articles or listings.