UNION COURT, UNION ROAD, LONDON, SW4 6JP

Transcription

1 UNION COURT, UNION ROAD, LONDON, SW4 6JP LONDON S W 4 MULTI-LET MIXED USE INVESTMENT OPPORTUNITY

2 THE LONDON COLLECTION BATTERSEA PARK HYDE PARK MARBLE ARCH REGENTS PARK CENTRE POINT VAUXHALL WANDSWORTH TOWN BATTERSEA POWER STATION UNION COURT ST GEORGE WHARF STOCKWELL BIG BEN CLAPHAM NORTH CLAPHAM HIGH STREET NINE ELMS REGENERATION AREA For identification purposes only.

3 UNION COURT, UNION ROAD, CLAPHAM, SW4 6JP INVESTMENT CONSIDERATIONS A South West London multi-let mixed use investment opportunity Freehold property offering both office and light industrial accommodation talling 67,710 sq ft (6,290 sq m) Large site area talling 1.72 acres (0.70ha) with a strong underlying site value Excellent road and rail communication links being in close proximity the and only 500 metres from Clapham North and Sckwell Underground stations as well as Clapham High Street Overground The immediate surrounding area is experiencing significant regeneration High occupancy rate of 97% (as at 28th January 2016) Asset management opportunities including regearing leases on more institutional terms, letting vacant accommodation and refurbishment increase the rents Potential conversion of the accommodation residential via Permitted Development Rights Residential values in the area are in excess of 800 psf Current passing rent of 1,193,694 per annum which equates a low average rent of psf based on the let areas Offers are sought in excess of 22,500,000 (Twenty Two Million, Five Hundred Thousand Pounds) subject contract and exclusive of VAT. This reflects a net initial yield of 5.00% after allowing for purchaser s costs of 5.8%. A sale at this price reflects a low capital value of 332 psf. Outline for identification purposes only.

4 THE LONDON COLLECTION LOCATION The area benefits from excellent public transport M4 links via Clapham M4 READING North Underground Station 500m the south west and Sckwell Underground Station 500m the 29(M) north east. Overground rail services run from Clapham High Street 500m the south west linking Vicria, Clapham Wokingham Bracknall Junction and Canary Wharf with quickest journey times of 10 minutes, 21 minutes and 31 minutes Ascot respectively. Regular bus services are also available central and outer London. 22 The property is well serviced by London airports with City Airport within 8.2 miles (13 km), Bagshot Heathrow Airport within 13.9 miles (22 km) and Gatwick Airport within 21.1 Sandhurst miles (33.8 km). M BASINGSTOKE M3 1 Aln High Wycombe A404 Clapham is located in the south 4west London Borough of Lambeth. Henley-on-Thames It is 4 miles (6.4 km) south west of central London and nearby suburbs include Westminster, Wandsworth and Wimbledon. Maidenhead It benefits A404(M) from excellent road links via the, A23 and A24 all of which provide direct access the M25 and central London. Famborough Fleet 31 Aldershot Famham M40 55 Godalming Witley J19 J25 Borehamwood J27 BATTERSEA M25 M25 PARK Watford A1 Loughn Barnet Enfield Rickmansworth M11 A413 South Battersea Park Oxney Chigwell Tottenham Harefield Brent Queenswn Road M1 Cross Woodford Harrow A10 Ruislip A12 J16 Wembley Hampstead Ilford Slough A40 Southall LONDONLondon A23 Burgess Hill Romford A13 J28 J29Larkhall Park J15 Wandsworth M4 City Road Brentford Hounslow Fulham A2 Heathrow M25 16Richmond Dartford Clapham Staines Clapham CLAPHAM High Street ClaphamGravesend Egham Ashford Junction Kingsn North J2 Upon Thames A20 J12 M3 09 A23 Bromley Swanley Brixn J3 Rochester Gillingham Waln-on-Thames Croydon A232 A21 M2 M25 M20 Epsom Sutn Shoreham Snodland J10 Woking A217 CLAPHAM Biggin Hill A22 COMMON J9 J5 M26 M20 M25 Sevenoaks Maidsne J8 J7 J6 Oxted Reigate A26 Dorking Redhill A21 A24 Tonbridge M23 Paddock Horley REGENERATION Wood Staplehurst Gatwick Royal Cranleigh A264 Nine Elms, 400m the north of the subject property and extending the Tonbridge A229 Crawley Three Bridges River Thames, is undergoing a significant Wells regeneration with projects including North A264 East Battersea Grinstead Power Station, New Covent Garden Market and the new American Horsham Embassy amongst others. Horsham Windsor GUILDFORD Uxbridge Albert Bridge Road Prince of Wales Drive 205 Battersea Park Road Sabine Road Eversleigh Road 036 Lavender Hill 216 Cedars Road B224 Silverthorne Road The Chase 205 Heathbrook Park B224 North Street Nine Elms L Steward s Road 036 Wandsworth Road A24 y Grove Recr Brentwood M25 A127 Billericay Basildon Sckwell A130 Wickford Benfleet Southend- Canvey Stanford-le-Hope Island The whole development plans create a new destination in central London providing 20,000 new homes, 25,000 new jobs, education facilities, green spaces and new visir attractions. The development will span across Haywards 3km of the Thames riverside and more than 1bn is be spent on new Heath Union Road Union Road Larkhall Rise Larkhall Lane Clapham Highstreet A2217 Lansdowne Way infrastructure including two new Underground stations and a new park, improving the areas connectivity and desirability. The Clapham area has benefited from large-scale investment in recent years, being situated a mere ten minutes from Vicria, with a number of residential developments completed over the past few years, including The Yard, which is a shared ownership development undertaken by Notting Hill Housing Group comprising a tal of 59 residential units. Immediately the rear of Union Court is a new development fronting Clapham Road and Jeffrey s Road, which is a mixed use scheme consisting of 36,000 sq ft of offices, retail and café as well as 79 residential units. A mixed use development providing a tal of 74 residential units and four office units talling approximately 15,000 sq ft is also be built fronting both Union Road and Clapham Road. The introduction of Permitted Development Rights in 2013 has led the conversion of numerous office blocks residential by developers looking capitalise on the high residential values in the area which are now in excess of 800 psf. 036 Chelsham Road Jeffreys Road A2217 Ferndale Road S Lambeth Road Landor Road A203 A2217 Brixn Road Brixn Road A2217 Sh Sittingb

5 3 5 UNION COURT, UNION ROAD, CLAPHAM, SW4 6JP Internal Courtyard Talking Tables office Talking Tables office GASKELL STREET m 151 Location Plan Posts UNION ROAD El Sub Sta Stane Grove MCCALL UNION COURT FF ESS Marion Court e 18 FW 7 UNION MEWS 9.0m ROAD 33 Barringn Court f 362a Crown Copyright, ES For identification purposes only. 0m 10m 20m 30m Ordnance Survey Crown Copyright All rights reserved. Licence number Plotted Scale - 1: a b Cycle Hire Station CR 10.2m LB PH m LB 21 El Sub Sta Def Works Barn 9.1m 17 Court FW Ward Bdy 340a SITUATION The subject property occupies a prominent position on Union Road approximately 50m north of the (Clapham Road) and occupies a large site. The surrounding area comprises mainly residential with some local commercial occupiers fronting Clapham Road the south. The property benefits from ever improving amenities with there being restaurants, bars and retail units 500m the south west, in the area immediately surrounding Clapham High Street overground station and Clapham North underground station. Occupiers in the area include Sainsbury s, Sweat Shop, Chicago Rib Shack and Clapham North Public House. Other nearby occupiers include Dreams, HSS Hire, Iceland, Greggs and numerous local occupiers. SITE AREA The site extends approximately 1.72 acres (0.7ha). TENURE Freehold DESCRIPTION The property has good road frontage of 30 metres along Union Road and 60 metres along Gaskell Street. It is divided in a number of buildings and uses including modern offices and light industrial. Access is through an arch off Union Road leading in a courtyard area that is part developed and part allocated for parking and circulation space. The main building that forms the boundary of the estate is arranged over ground and two upper floors and offers a range of unit sizes and configuration. Units 1-2 which front Union Road are accessed from the courtyard area and span the arch make up more traditional office accommodation which has been fitted out a good standard by 3 separate tenants all of which benefit from their own front door. Units 3-5 back on Gaskell Road and are part industrial part office units. Accessed from the courtyard there is a roller shutter door leading in the industrial unit which is double height at the front with mezzanine offices forming the first floor at the rear of the unit. On the second floor there is further office accommodation. Unit 6 is a stand alone unit with the same specification. Unit 7 is situated on the northern boundary of the site and is made up of office accommodation arranged over two floors and is fitted out by the tenant a good specification. In general the specification includes carpeted floors, suspended ceilings, AC, perimeter trunking, recessed lighting, intercom system and central heating. The light industrial units vary but all offer flexible accommodation providing a specification including concrete flooring, strip lighting, electric roller shutter doors and gas heaters. Unit sizes range from ,980 sq ft and the majority of the units have been fitted out the tenants specification. In the centre of the site are two industrial units arranged over ground floor only. 18 Union Road or Charan House has a loading door on the courtyard area of the site although this is outside the demise. Union court also benefits from 24 hour access, a centre manager, CCTV, loading bays, cycle racks and recycling facilities. CAR PARKING There is a tal of 66 car parking spaces on site.

6 Unit Tenant Area sq ft Area sq m Lease Commence Lease Expiry Rent p.a. Rent p.s.f. Next Rent Review Next Fixed Break Tenant Break Frequency Tenant Break Notice L&T Act Comment UC.1 Elite Environments Ltd. 3, /10/15 30/09/18 66, Rolling 6 Months Contracted Out Rent increase 30/09/16 69,050 p.a. UC.2.1A Salon UK Ltd. 2, /09/15 13/09/18 58, Rolling 6 Months Contracted Out UC.2.1B Provident Financial Management Services Ltd /03/14 02/03/16 22, Rolling 6 Months Contracted Out UC.2G Cult Furniture Ltd. 3, /09/15 20/09/18 86, Rolling 6 Months Contracted Out UC.3.1A Esmale Ltd /10/15 30/09/17 11, Rolling 6 Months Contracted Out UC.3.1B Chantel Elshout Design Consultancy Ltd /03/16 08/03/18 9, Rolling 6 Months Contracted Out Rent increase 08/03/16 12,975 p.a. UC.3.1C Under offer UC.3.1D Outline Press (Book Publishers) Ltd /06/15 30/05/18 14, Rolling 6 Months Contracted Out UC.3.1E Esmale Ltd /09/14 31/08/16 15, Rolling 3 Months Contracted Out UC.3.1F Contact Public Relations And /08/15 31/07/17 16, Rolling 6 Months Contracted Out UC.3A-1 Cleaver Electrical Services Ltd. 1, /05/14 22/05/17 31, Contracted Out UC.3B Ralph Lauren UK Ltd. 1, /03/14 28/02/17 29, Rolling 6 months Contracted Out UC.4.1 Ceterna Ltd. 1, /11/14 31/10/17 36, Rolling 6 Months Contracted Out UC.4A Aircon Hire Ltd. 1, /01/13 06/01/18 27, /01/16 Rolling 6 Months UC.4B Vacant 1, UC.4BUPPER Passion Digital Ltd. 1, /05/14 11/05/17 32, Rolling 6 Months Contracted Out UC.5AB Believe Direct Ltd. 3, /03/13 17/03/18 46, /03/16 30/09/16 One off 6 Months Contracted Out Tenancy schedule as at 28th January Tenancy schedule as at 4th January 2016 Terms agreed for a term expiring 18/10/2017 at 6, subject tenant break on 6 months notice. UC.5G Richard Anthony K Threadgill 2, /03/15 03/03/20 43, Rolling 6 Months Rolling break commences after 1st year of the term UC.6 Health and Care (UK) Ltd. 5, /07/14 24/07/19 87, /07/17 25/07/17 One off 6 Months UC.7A/B Talking Tables Ltd. 5, /04/14 30/06/17 95, Contracted Out Rent increase 01/07/16 115,500 p.a. UC.AGF IB Food Ltd. 10, /02/10 31/01/20 169, Rolling 6 Months UC.AGR Crown Worldwide Ltd. 16,980 1,577 23/01/15 22/01/25 272, /01/20 Contracted Out UC.CP01 Cult Furniture Ltd. 1 space 21/09/ Rolling 1 Month UC.CP02-03 Cleaver Electrical Service Ltd. 2 spaces 01/02/15 1,000 Rolling 1 Month UC.CP04-05 Contact Public Relations And 2 spaces 03/08/15 1,000 Rolling 1 Month UC.CP06/16 Chantel Elshout 2 spaces 02/10/14 1,000 Rolling 1 Month UC.CP07 Esmale Ltd. 1 space 01/02/ Rolling 1 Month UC.CP08 Streym Ltd. 1 space 05/09/ Rolling 1 Month UC.CP09-10 Ceterna Ltd. 2 spaces 10/11/14 1,000 Rolling 1 Month UC.CP11-12 Air Con Hire Ltd. 2 spaces 01/02/15 1,000 Rolling 1 Month UC.CP13-14 Vacant 2 spaces UC.CP15 Passion Digital Ltd. 1 space 01/02/ Rolling 1 Month UC.CP17-22 Richard Anthony K Threadgill 6 spaces 04/03/15 03/03/20 3,000 Rolling 1 Month UC.CP23-5 Believe Digital Ltd. (n/c) 3 spaces 03/10/14 Rolling 1 Month UC.CP38-43 Health Care Ltd. (n/c) 6 spaces 25/07/14 Rolling 1 Month UC.CP44-60 Vacant 11 spaces UC.CP61 Outline Press Ltd. 1 space 01/02/ Rolling 1 Month UC.CP62 Breslich & Foss Ltd. 1 space 01/02/ Rolling 1 Month UC.CP63-65 & 70 Provident Financial Management Services Ltd. 4 spaces 01/10/14 2,000 Rolling 1 Month UC.CP66-69 CIBS Ltd. 4 spaces 01/02/15 2,000 Rolling 1 Month UC.CP71 & Mark McCormack 3 spaces 01/09/14 1,500 Rolling 1 Month UC.CP72-74 Talking Tables Ltd. 3 spaces 01/02/15 1,500 Rolling 1 Month UC.CP77-80 Crown WorldWide Ltd. 4 spaces 17/08/15 2,0000 Rolling 1 Month UC.CP81-84 Vacant 4 spaces UC.SUB London Electricity Board Plc. (n/c) 23/06/92 67,710 6,290 1,193,

7 UNION COURT, UNION ROAD, CLAPHAM, SW4 6JP CLAPHAM OFFICE MARKET Clapham s office market has provided an invaluable location for those occupiers on a budget. Being located 10 minutes from central London, the Clapham office market has experienced a significant change since 2013 and the introduction of Permitted Development Rights (PDR). The introduction of PDR led an influx of various developers, mainly residential, buying office buildings and converting them taking advantage of the strong prices in the area. As a result the office supply has decreased significantly which has led steep increases in the office rents. Well specified offices in the area are now achieving psf with secondary offices achieving psf. Typical office occupiers in Clapham come from the fashion, travel, hospitality and catering industries. Self-evidenced rents in Union Court are: Salon UK Ltd has taken 2,252 sq ft of office space on a three year lease at a rent reflecting psf in September Cult Furniture Ltd has taken 3,440 sq ft of office space on a three year lease at a rent reflecting psf in September Other nearby letting transactions are outlined below: Annie McCall Studios, 31 Jeffreys Road Studio Moross has taken 1,294 sq ft of office space on a five year lease with a break in year three at a rent reflecting 20 psf in March Annie McCall Studios, 31 Jeffreys Road Hamiln Phography has taken 646 sq ft of office space on a five year lease with no break at a rent reflecting 20 psf in March Tradescant Court, 77A Tradescant Road Local Dialogue has taken 2,215 sq ft of office space on a five year lease with a break in year four at a rent reflecting 25 psf in September CLAPHAM RESIDENTIAL MARKET Clapham residential values have experienced significant growth over the past 5 years with prices now in excess of 800psf. Property values for the year of 2015 increased by c.11% for 1 bed flats, c.12% for 2 bed flats and c.16% for 3 bed houses. The market in Clapham below 1m, the majority of which is flats, has remained strong with buoyant demand from young professionals and invesrs. The property may be suitable for a conversion residential in the longer term through Permitted Development Rights subject the necessary consents. ASSET MANAGEMENT OPPORTUNITIES Let vacant units and car parking spaces Refurbishment increase rents in line with local market Put tenants on more institutional leases Re-gear current leases A longer term redevelopment opportunity SERVICE CHARGE The service charge for the current year is 85,180 reflecting an average of 1.26 psf. More information available on request. VAT The property is registered for VAT. It is anticipated that the sale of the property will be treated as a TOGC. EPC EPCs available at

8 PROPOSAL Offers are sought in excess of 22,500,000 (Twenty Two Million, Five Hundred Thousand Pounds) subject contract and exclusive of VAT. This reflects a net initial yield of 5.00% after allowing for purchaser s costs of 5.8%. A sale at this price reflects a low capital value of 332 psf. For further details please visit: LONDON S W 4 For further information or make arrangements for viewing please contact: Scott Tyler [email protected] Guy Scott Plummer [email protected] Richard Lea [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 the property are 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 make or give, any representation or warranty whatsoever in relation the property. The only representations, warranties, undertakings and contractual obligations be given or undertaken by the vendor/lessor are those contained and expressly referred 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 : (a) satisfy themselves as the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed 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. Design: CommandD