Post on 29-Aug-2018
S TA N D B R O O K H O U S E
07
• Super prime freehold Central London retail, office and residential investment.
• World renowned, retailing location of Old Bond Street in the heart of Mayfair.
• Retail units let to luxury brands of Tods and Alexander McQueen for in excess of 12 years.
• Highly reversionary retail rents.
• Self-contained, newly let Grade A offices on floors 2 to 5.
• Two residential appartments on floor 6.
• Current income of £3,472,309 pa.
• ERV of £4,931,116 pa.
• Opportunity to acquire a substantial core Bond Street asset.
• Seeking offers in excess of £160,000,000, providing a net initial yield of 2.05% and a reversionary
yield of 2.91%, assuming purchaser’s costs of 5.80%
06
The Opportunity
S TA N D B R O O K H O U S E
08
London is a global city and increasingly in a league of
its own. It is among the largest cities in Europe and
one of the world’s most vibrant, cosmopolitan and
wealthy.
London’s growing population hit a record high this
year reaching 8.6m people and this is predicted to
grow to 10 million by 2029. The current resident
labour force totals 4.5 million and this is expected
to increase by 22.1% over the same period. The
increases are driven partly by organic growth but
mainly migration both nationally and internationally
with London being the preferred domicile in particular
for the global rich.
The world’s businesses are attracted by the stable
politics, transport and banking systems, its cultural
heritage and its educational and training facilities.
As the world’s largest financial centre, London has
a number of distinct advantages including its skilled
labour pool, integrated transport network including
five international airports and its optimum time zone
sitting between Asia and America. Consequently, it is
the financial and business home to 33% of European
HQ’s with 40% of the world’s foreign equities traded
and 30% of the world’s currency exchanges taking
place here. Beyond these traditional strengths,
London has also become Europe’s top technology
start up centre and is a global leader in media,
advertising and other service industries.
London is now also the number one global city for
tourism and shopping and is ranked above both
Paris and New York with an estimated total spend
of £26.8bn. London has a higher concentration of
international retailers than any other city and this
is forecast to grow further over the next five years,
dominated by the luxury goods sector.
In real estate terms central London remains a preferred
location for investors providing a combination of
wealth preservation and outperformance over its peer
group.
London World City
LO N D O N I S N O W T H E N U M B E R O N E G LO B A L C I T Y F O R TO U R I S M A N D S H O P P I N G A N D I S R A N K E D A B O V E B OT H PA R I S A N D N E W YO R K
09
011
S TA N D B R O O K H O U S E
The property is located within the Mayfair district of the City of
Westminster in Central London. Mayfair is home to a variety of uses
including retail, offices, restaurants, hotels and residential. The area is
highly affluent and internationally renowned, attracting a wide range
of occupiers, shoppers and tourists from across the globe.
Old Bond Street has an outstanding international reputation and
continues to attract elite tenants who value the exclusive location and
high volumes of shoppers that frequent the area.
Location
Standbrook House
010
ST
JA
ME
S’S
ST
DU
KE
ST
RE
ET
HA
YM
AR
KE
T
P I C C A D I L L YP I C C A D I L L Y
O X F O R D S T R E E T
Ber
kele
y St
reet
G R A F T O N S T
C L I F F O R D S T
B U R L I N G T O N G A R D E N S
BU
RL
ING
TO
N A
RC
AD
E T H E R O Y A L A C A D E M Y
J E R M Y N S T R E E T
B R O O K S T R E E T
PO
LA
ND
ST
RE
ET
SA
VIL
E R
OW
C O N D U I T S T R E E T
G R O S V E N O R S T
B R U T O N S T R E E T
BR
UT
ON
LA
NE
CO
RK
ST
RE
ET
OL
D B
UR
LIN
GT
ON
ST
DO
VE
R S
TR
EE
T
BE
RK
EL
EY
ST
RE
ET
ST
RA
TT
ON
ST
BO
LT
ON
ST
AL
BE
MA
RL
E S
TR
EE
T
SA
CK
VIL
LE
ST
RE
ET
RE
GE
NT
ST
RE
ET
Beak Street
B E R K E L E YS Q U A R E
H A N O V E RS Q U A R E
P I C C A D I L L YC I R C U S G R E E N
P A R K
O X F O R DC I R C U S
P I C C A D I L L YC I R C U S
G O L D E NS Q U A R E
LO
WE
R J
OH
N S
T
KIN
GL
EY
ST
CA
RN
AB
Y S
T
Old
Bon
d St
reet
GR
EA
T M
AR
LB
OR
OU
G
H S T
NE
W B
ON
D S
TR
EE
T
StandbrookHouse
Old
Bon
d St
reet
New
Bon
d St
reet
S TA N D B R O O K H O U S ES TA N D B R O O K H O U S E
12
The subject property is situated on the east side of
Old Bond Street towards its southern end, close to the
junction with Piccadilly. The property is flanked by
similar mixed use properties commensurate with the
typical style of properties in this location.
The property is situated on a section of the street
which attracts significant footfall and is considered
to be the prime location on the street, being between
Piccadilly and Bruton Street.
The quality of the location is highlighted by the
occupiers in close proximity to the subject property
including Dolce & Gabbana, Gucci, Cartier, DeBeers,
Etro, Saint Laurent, Prada and Max Mara.
Situation
P
AUBAINE
WILLIAM HUNT
DEGRISOGONO
SOMLO
ANTIQUES
NPEAL
GISMONDI
PRET A MANGER
PRADA
HARRY WINSTON
MICHAEL
ROSE
BROWSE &
DARBY
GEORGE
ETRO
JEWELLERY
THEATRE
MICHAEL
ROSE
THE KING`SHEAD
CIRO
PEARLS
FLOWERS
MICHAEL JOHN
PENFRIEND
GARRARD
NOBU BERKELEY
DKNY
PICCADILLY
NEWS
&CARDS
CHANEL JEWELLER
HIRSH
WOLF & BADGER
CHURCH`S
ADLER
CARTIER
DAKS
D.R. HARRIS
&CO.
ERCO
RALPHLAUREN
GUCCI
PAUL SMITH
STEPHEN FRIEDMAN
WILLIAM WESTON
PENHALIGON`S
LADUREE
THAI
AIRWAYS
MALLETT
REDFERN GALLERY
SERMONETA
GLOVES
KITON
COLNAGHI
CHAUMET
RICHARDOG
DEN
MATT
ROBERTS
CHANEL
PEYOTE
AMANDA WAKELEY
SUSANNAH
LOVIS
BOGHART
BOODLES
TESSIER
VILEBREQUIN
ALEXANDER MCQUEEN
WATCHCLUB
ROYAL ACADEMY OF ARTS
PAUL SMITH
LINLEY
JOHNSON
WALKER &
TOLHURST
LIMITED
WADDINGTON CUSTOT
PETROCCHI
GAZELLI
ASPREY
BENTLEY &
SKINNER
EDE&
RAVENSCROFT
CHUCS DIVE & MOUNTAINSHOP
TOD`S
MR. HARE
DAMIANI
TO BE
DE GRISOGONO
ALEXANDER
MCQUEEN
SALVATORE FERRAGAMO
JOSEPH
TO BE
CRISTINA SAULINI
WHISTLES
VERTU
DOM
INIQUE
TO BE
CARTUJANO
LULU GUINNESS
CAMPER
VACHERON
CONSTANTIN
AKRIS
ERES
UNDER
VAN CLEEF
& ARPLELS
VANCLEEF
BAR + KITCHEN
ARMOUR
WINSTON
CHARBONNEL ET WALKER
ABERCROMBIE& FITCH
ANDERSON & SHEPPARD
GIEVES & HAWKES
TO BE
ASPREY
DOLCE & GABBANA
NOURBEL
&
LECAVELIER
PHILIPMOULD
MIKIMOTO
MAYFAIR
DESIGN
BROWNS HOTEL
HELLY NAHMAD
WARTSKI
AGNONA
DAVIDMORRIS
MAYFAIR
SANDWICH
SHOP
MICHAEL
ROSE
THEGOAT
TAVERN
GUILLAU
ME
ALAN
HOUSEOF
CASHMERE
JOHN MARTIN
OF LONDON
WILLIAM HILL
REXTAIL
MARLBOROUGH FINE ART
CARTIER
TIFFANY & CO ROYAL
ACADEMY
OFARTS
DOVER STREET
MARKET
VANESSA
BRUNO
CROCKETT
&JO
NES
GYMKHANA
GRAFFDIAMONDS
PAUL SMITH
BREGUET
BOUTIQUE
MATTHEWFOSTER
TOBE
ACHILLESALVAGNI
CHRISTIAN
LOUBOUTIN
CHOR BIZARRE
HOLLY
HUNT
CHOPARD
ABERCROMBIEKIDS
CECCONI`S
BOUCHERON
GLOBE-TROTTER
STRATSTONE
PIAGET
MARINA RINALDI
BAXTER
LA PERLA
SIMON
GRIFFIN
VINTAGE
WATCH
COMPANY
CALLEIJA
ROLEX
BOUTIQUE
MESSUM`S
SUMOSAN
HOUSE OF
CASHMERE
ZO
JIMMY CHOO
EAT
HANCO
CKSGJ
CLEVERLEY
DAVIDDUGGAN
ALMAR
THERIFIFI
HARRYS
PETES
FABERGE
CHANEL
EBMEYROW
ITZ
LEVIEV
CHURCH`S
CASHMIRINO
KENT & CURWEN
ORMONDE
JAYNE
MARCUS
VICTORIABECKHAM
NE
GUINOT
BUCCELLATI
MAZZOLENI
OMEGA
CHATILA
BABBO
MOUSSAIEFF
BULGARI
ALMA
MILLE
PERLEZZERIA
ACNE
QUATTRO PASSI
LEPETIT
LELEPYP
ERATA
STOWERS BESPOKE
NAIN
ESSIE
CARPETS
BURBERRY
CAFFE
CONCERTO
B
CAFFE
FRATELLI
STRAWBERRY
MOONS
ITSU
VODAFONE
BUCK`S
RICH
STARBUCKS
PESCATORI
THE CLARENCE
CARPENTERS
WORKSHOP
DEGE & SKINNER
SIMON LEE
NATWEST
ANDERSON&
SHEPPARD
V
BARBARA
TIPPLE
NICK TENTIS
HARDY AMIES
CGXGIFTS
AUBAINE
MEAD CARNEY
PICCOLINO
DOVER STREET
WINE MERCHANTS
GALLERY OF
ALON ZAKAIM
FINE ART
ALBEMARLE
PETER HARRINGTON
RYMAN
MARK STEPHEN
MARENGO
LUTWYCHE
KOREAN AIR
HARDY A
CLARENDON
UNDER
ALTERATION
JERSEY
LILY
SAMFOGG
ILLUMINUM
STRADA
MAPPIN
& WEBB
ESKENAZI
CRISIAN
LONDON
GARY
ANDERSON
HEDDON
STREET KIT
HANJINSHIPPING
RICHARD ANDERSON
SAINSBURY`S
LOCAL
THE FLEMING
COLLECTION
SMART
TURNOUT
WATERHOUSE & DODD
STEPHEN
FRIEDMAN
GALLERY
KILGOUR
CASE
PRETA
MANGER
LANVIN
DAVIES & SON
40 SAVILE
ROW
ALANCRISTEA
THECHANGE
GROUP
ENTRANCE
SCABAL
HOLI
LORO PIANA
CONNAUGHT BROWN
THEMAAS
MAC
KENZIES
OF
PICCAD
ILLY
DEBEERS
HUNTSMAN
ALEXANDER MCQUEEN
LOUIS
VUITTON
PATISSERIE
VALERIE
YOG
GAZIANO
& GIRLING
MO
RRIS`S
RICHARD JAMES
CAMPO
MARZIO
FRENCH RESTAURANT
LADIES &
MENS WEAR
UNDER
ALTERATION
UNDER
ALTERATION
CLOTHING
SANDWICH BAR
LADIES & MENS WEAR
JEWELLER
VACANT
JWLR
JWLR
BLANCPAIN
JENSON
LADIES & MENS WEAR
TO BE DIOR
JEWELLER
PUBLICHOUSE
JWLR
ART
GALLERY
(RETAIL)
HAIRDRESSING
STAT
JEWELLER
JAPANESE RESTAURANT
LADIES & MENS WEAR
VACANT
U/A
UNDERALTERATIO
N
LADIES & MENS WEAR
SHOES
JWLR
JEWELLER
LADIES & MENS WEAR
HLTH&BEA
LIGHTING
LADIES&
MENS
WEAR
LADIES&
MENS
WEAR
L/WR&M/WR
ART GALLERY (RETAIL)
ART GAL (RET)
HLTH&BEA
CO
NF&
BIS
TRAVEL
AGENT
ANTIQUES
ART
GAL
(RET)
L ACCESS
LADIES&
MENS
WEAR
ART GALLERY (RETAIL)
UNDER
ALTERATION
JEWELLER
THE
MELLIER
MENS
W
HEALTH CLUB
LADIES WEAR
MEXICAN
RESTAURANT
CLOTHING
JWLR
JEWELLER
JEWELLER
JEWELLER
MENS
WEAR
LADIES & MENS WEAR
JWLR
MUSEUM & ART GALLERY
LADIES &
MENS WEAR
MAISON
MICHEL
JWLR
ART GALLERY
(RETAIL)ART GALLERY (RETAIL)
SEDE UNICA
ART HOUSE
OFFICE
SAINT
LAURENT
LADIES & MENS WEAR
JEWELLER
PICKETT
MENSW
EAR
LADIES & MENS WEAR
SHOES
MAXMARA
UNDER ALTERATION
JEWELLER
OFFICES
LADIES & MENS WEAR
LADIES WEAR
LADIES WEAR
BAR & RESTAURANT
VACANT
ALEXANDER
WANG
VACANT
ROPION
ROJA
BOTTEGA VENETA
SHOES
JEWELLER
BELL+ROSS
JAMES PERSE
OFFICE
CHUCS
RESTAURANT
ALTERATION
TO BE
FALIERO SARTI
UNDERALT
+ARPELS
JEWELLER
KWANPEN
CONF & BIS
LADIES & MENS WEAR
MENS WEAR
MENS WEAR
VALENTINO
JEWELLER
LADIES & MENS WEAR
JEWELLER
ART GALLERY
(RETAIL)
JEWELLER
STUDIO
TO BE
ALANYAU
ART GALLERY
(RETAIL)
L/WR
&M/WR
JEWELLER
PATEK
PHILIPPE
PUBLIC
HOUSE
INTDECO
R
CLOTHING
ART GAL (RET)
BETTING OFFICE
BAR & RESTAURANT
ART GALLERY (RETAIL)
JEWELLER
JEWELLER M
USEUM&
ARTG
ALLERY
LADIES &
MENS WEAR
SHOES
BRITISH RESTAURANT
JEWELLER
LADIES &
MENS
WEAR
JEWELLER
OFFICE
UNDER
ALTERATION
SHOES
OFFICE
JEWELLER
OFFICE
BOODLES
JAEGER-LECOULTRE
CAR SALES
JEWELLER
OFFICE
NTDECOR
CHANEL
LINGERIE
OFFICE
JWLR
OFFICE
ART GALLERY
(RETAIL)
JAPANESE
RESTAURANT
OFFICE
TO BE DIOR
SHOES
S/WBAR
OFFICE
CANT
SHOES
OFFICE
OFFICE
JWLR
JWLR
SHOES
FLOR
JEWELLER
OPT
JWLR
OFFICE
OFFICE
MENS WEAR
HLTH&BEA
JEWELLER
LADIES & MENS WEAR
ALES
BEAUTY SALON
JEWELLER
PICKETT
JWLR
JEWELLER
JEWELLER
JEWELLER
OFFICE
JEWELLER
OFFICE
OFFICE
CAFE
SHOES
ITALIAN RESTAURANT
LADIES & MENS WEAR
AURANT
FURN
ITALIAN REST
ART GALLERY
(RETAIL)
C/WR
SHOES
N
LADIES WEAR
OFFICE
SOCIALCLUB
JEWELLER
LAPERLA
CLOTHING
JEWELLER
JWLR
JEWELLER
LADIES & MENS WEAR
TRAVEL GOODS
JEWELLER
OFFICE
ITALIAN
RESTAURANT
CHILDRENS WEAR
INTERIOR
DECORATIONS
INDIAN REST
ATELIER
JEWELLER
LADIES &
MENS WEAR
JWLR
JEWELLER
UNDER
ALTERATION
UNDER
ALTERATION
ANTIQUES
JWLR
UNDER
ALTERATION
UNDER
ALTERATION
CLOTHING
OFFICE
L ACCESS
OFFICE
ENTRANCE
TEL
OFFICE
LADIES WEAR
JWLR
BRUNELLO
CUCINELLI
SHOES
FURN
JEWELLER
ART GAL (RET)
MENS WEAR
CARPETS
&FLOORING
CLOTHING
MAHIKI
BAR
JAPANESE
REST
MENS WEA
BAR &
RESTAURANT
TELEPHONES
BULGARI
COFFEE
SHO
P
SEAFOOD REST
PUBLICHOUSE
MENS WEAR
ART GALLERY (RETAIL)
BANK
MENS
WEAR
JWLR
M/WR
LADIES & MENS WEAR
OFFICE
FRENCH
RESTAUSOCIAL
CLUB
ITALIANRESTAURANT
OFF LICENCEAFRICAN ART
ART GAL (RET) ART GALLERY (RETAIL)
BOOKS
MENS WEAR
MENS
WEAR
MENS WEAR
JEFF
BANKS
L ACCESS
DADIANI
CAFE
JWLR
ARTG
ALLERY(RETAIL)
ART GALLERY
(RETAIL)TORNABUONI
GALLERY
M/
CONVENIENCE STORE
ART GALLERY
(RETAIL)
ART GALLERY ( RETAIL)
OFFICE
FFICE
ARTG
AL
ARTG
ALLERY
(RETAIL)
BUREAUDE
CHANGE
UNDER
ALTERATION
LADIES &
MENS WEAR
ART GALLERY (RETAIL)
ARTGAL
(RET)
LADIES&
MEN
SW
EAR
JEWELLER
MENS WEAR
LADIES & MENS WEAR
LADIESACCESSO
RIES
BAKER
&CAFE
OFFICE
OFFICE
VACANT
LEATHG
DS
OFFICE
OFF
MENS WEAR
FFICE
CAFE
SHOES
VACANT
OFFICE
I/CREAM
PARL
OFFICE
MENS WEAR
ART GALLERY (RETAIL) ART
GALLERY
(R
OFFICE
MENS WEAR
OFFICE
OFFICE
OFFICE
MENS WEAR
LADIES
& MENS
WEAR
SANDWICH
BAR
TRAVELG
OO
DS
LADIES &
MENS WEAR
ART GAL (RET)
STATIONER
BUSINESS
SERVICES
EURO
RESTA
HERMES
CLOTHING
HIRE
ITALIAN
RESTAURANT
ARTGAL
(RET)
TRAVEL
GENT
OFFICE
LLERY (RETAIL)
31
41
9 - 1035
- 36
37- 40
25
40
16- 18
171
6 3
11
32- 33
42- 43
161- 162
44- 45
10
30
21
25
34
- 39
24
13A- 14A
27
173
29- 30
14
32
58- 59
13- 14
175- 177
10
51A
38
1- 5
34- 36
15 - 16
28
7
16- 17
71- 72
41
37
19- 20
5
14A
44
22
28- 29
26A
9
16
26
13- 14
18
5045A
178
5
1- 2
14
4
6
11
46
64- 65
11- 12
36
39
3
32- 33
22
52 - 55
108
31
2- 3
19- 21
15
15A- 15B
36
4- 5
24
23
19- 20
66- 68
43- 44
27-26
14
51
14
28
37
49
30A
12- 13
30B
5-9
37
9
15
20
1
18- 19
28
7
32
1
39
165 - 167
6- 8
22- 23
28- 29
179
16 - 17
13
2- 4
4
180
15-16
3
1 - 11
6- 9
38
33
16
174
6
40- 41
25
10- 11
20- 21
42
6 - 8
9
41
10
22
26
35
23
12
31
19
13
14
11A
54- 55
9
25
14
1A
28- 29
26B
16
160
35
15
28- 29
13
4
7
63
69- 70
180
14A
6
31
21
24
2
12
170
36A
17
8
8
12
12
223A
172
168 - 169
5
11
62
26
27
11B
5A
34
13
8
39
27
31
163
4
158
30
21
15A
52- 53
56- 57
4
29
24
3
5
35
164
15
5
3
20
16
12
25
1
15
7
23
27
14
43
22
24
30
2
42
26
1338
3
8
10B
62
21- 23A
61
15
168
153A
171
11
2
10
12
63 - 65
17
10A
1
2B
37
7- 8
10
4
167
19- 21
12
45
5- 7
49
43
31
15C
14
36
18
40A
30
1
10
42
46
13
173
13
47
3
31
164 - 165
8- 10
157
2
15A
50
169
6 - 7
59
48
11
9
17- 20
39
25
816
166
5
46
19
44
15B
39
8
4
15D
50
2- 4
10
12
6- 10
40
40
34- 35
9
153
24C
38
31- 32
163
170
3 - 9
12
67
169
BURLINGTON GARDENS
OLDBOND
STREETSAVILE
ROW
ALBEMARLE
STREET
LACE
BURLINGTONARCADE
DOVERSTREET
ROYAL ARCADECORK
STREET MEWS
STAFFORD STREET
NEWBOND
STREET
PICCADILLY
ALBEMARLE
STREET
GRAFTON STREET
STAFFORD STREET
CORKSTREET
ROYAL ARCADE
OLDBURLINGTON
STREET
KELEYSTREET
HILL
CLIFFORD STREET
BERKELEY
ON
STREETHEDDON
EET COACH
&
(2RETAIL FLOORS)
UNDER
UNDER
&
&
(PEDS
ONLY)
ELYHOUSE
UNDER
&
QUEENSBURY
HOUSE
RAMP
DOVER
YARD
ENT
ENTRANCE
ENTRANCE
GARAGE
ENTRANCE
ENT
ENTRANCE
ENTRANCE
ENT
ENT
ENTRANCE
ENTRANCE
ENT
ENTRANCE
ENT
ENTRANCE
ENTRANCE
ENTRANCE
ENT
ENTENT
ENTRANCE
ENT
ENT
ENTRANCE
ENT
ENTRANCE
ENT
ENTRANCE
ENT
ENT
ENTRANCE
ENT
ENTRANCE
ENT
ENT
ENTRANCE
ENT
ENT
ENT
ENT
ENTRANCE
ENTRANCE
EN
ENTRANCE
ENTRANCE
ENTRANCE
ENT
ENT
E
ENTRANCE
ENTRANCE
ENT
ENT
ENTRANCE ENT
ENT
ENTRANCE
ENTRANCE
ENT
ENTRANCE
RANCE
ENT
ENTRANCE
ENTRANCEENTRANCE
ENTRANCE
ENTRANCE
ENTRANCE
6
5A
13
38
2- 5
16
10
43- 44
14
34
23
11
15
24
32
14
19
19- 21
10
31
9
11
3
45
13A
49
7
12
33
15159
166
21
9
12A
172
47
25- 28
5
LAND ROVER
(350) (ACTUAL)
LONDON WEST END
0 10 20 30 40 m
13
15
S TA N D B R O O K H O U S ES TA N D B R O O K H O U S E
14
Communications to and from Mayfair are excellent.
Green Park, Piccadilly Circus and Oxford Circus
Underground Stations provide direct access to the
whole of the Greater London area and beyond.
Mainline stations within easy reach include Charing
Cross, Victoria and Paddington.
Heathrow Airport lies some 12 miles west of Mayfair
and is easily accessed via the A4/M4, Piccadilly
Line or on the Heathrow Express train service from
Paddington. With the opening of Crossrail in 2018
a further direct service to the airport will be available
from Bond Street Station, only 5 minutes walk from
the subject premises.
Communications
17
S TA N D B R O O K H O U S E
16
London’s West End is one of the world’s leading retail destinations
attracting over 390 million visitors a year, both domestic and overseas.
The area offers shoppers a wide range of amenities including the world
renowned shopping streets of Oxford Street, Regent Street and Bond
Street. With London’s position as a Global city, a presence in the West
End is now seen as crucial by retailers in order to maximise exposure to
their brands.
Mayfair
Mayfair sits at the heart of London’s West End and is the prime retail
destination for the world’s top fashion houses. Over 65% of the world’s
top 100 luxury brands are represented and this is forecast to grow
with international brands being attracted by London’s position as the
top destination for overseas visitors combined with strong economic
growth fundamentals and the continuing growth in luxury spend.
Mayfair’s luxury offer is still dominated by Bond Street with other
emerging luxury shopping streets including Mount Street, Bruton
Street, Conduit Street and the Burlington Arcade.
West End Retail
19
S TA N D B R O O K H O U S ES TA N D B R O O K H O U S E
Bond Street
Bond Street is approximately half a mile in length
and connects Oxford Street at its northern end
with Piccadilly at the Southern end. The prime
pitch is at the southern end of the street, running
from the established jewellery quarter around
Burlington Gardens through to Old Bond Street,
towards the junction with Piccadilly. Bond Street
dominates Mayfair’s luxury offer and is arguably the
most prestigious address for international luxury
brands. Bond Street is estimated to capture 25% of
the entire luxury spend in London and demand for
representation on the street is at an all time high,
pushing rents to record levels.
Occupiers on Bond Street range from the established
international brands through to emerging and
aspirational brands. The tenant mix on Bond Street
varies as one moves along the street from south
to north. The southern end on Old Bond Street is
dominated by the high end luxury brands, moving
into the traditional jewellery quarter between Conduit
Street and Burlington Gardens onto the emerging
luxury area between Conduit Street and Grosvenor
Street with the northern end of the street attracting
more UK based retailers.
Immediately adjoining Standbrook House are Dolce
& Gabanna to the north and Jaeger Le Couture to the
south. Other nearby occupiers on this part of Old
Bond Street include Cartier, Gucci, Prada, Mappin
& Webb, DeBeers, Etro, Salvatore Ferragamo, Rolex,
DKNY, Tiffany & Co and Omega.
Planning and delivery began in 2014 for the first
improvement plan in 30 years for Bond Street.
The project is being driven by the New West End
Company in partnership with Westminster City
Council and Transport for London.
The multi-million pound project will increase
pedestrian space by 50%, create a two way traffic
scheme for the street and improve the public realm.
The project will also provide greater pedestrian
connectivity with the new Bond Street Crossrail
Station at Hanover Square, due to open in 2018.
The works are scheduled to start on site in Q2 2016
and will cost £10.5m. Part of this cost will be met
by property owners via a BID levy linked to rateable
value. For Standbrook House the levy is expected
to be £13,250 per annum. (further information
can be found on the data site). Once the works are
completed it is forecast that there will be significant
benefits to retailers with an improved public realm
creating better, longer and more profitable visitor
experiences leading to increased sales and growth
for businesses. There will also be considerable
corresponding benefits for landlords with additional
uplifts in both rental and capital growth forecast at up
to 8%.
18
.
B O N D S T R E E T D O M I N AT E S M AY FA I R ’ S LU X U RY O F F E RA N D I S A R G U A B LY T H E M O S T P R E S T I G I O U S A D D R E S SF O R I N T E R N AT I O N A L LU X U RY B R A N D S .
21
S TA N D B R O O K H O U S ES TA N D B R O O K H O U S E
20
The Global luxury retail market is substantial with
sales exceeding €850bn in 2014, an increase of 7%
on the previous year. By 2020 forecasts suggests that
Global luxury retail spend will grow by a further 102%.
This follows a tripling in personal luxury retail spend
over the last 20 years.
Central London is the largest retail market on a city
basis in Europe with a total spend of £26.8bn in
2014, an average growth of 4.2% pa over the last five
years. This is almost three times greater than the level
of growth seen I Paris where total retail sales have
expanded by an average of 1.5% pa.
On Bond Street alone, total sales in 2014 exceeded
£1.1bn with an average spend of £800 per transaction.
The growth of central London’s retail market is being
driven by the fact that it has become a key Global retail
destination for consumers and retained its position as
the largest destination market for international tourists
in 2015. This influx of overseas visitors coupled with
London’s Global city status and concentration of
wealthy residents means that it is now the top Global
city for international visitor spend.
W I T H LO N D O N ’ S P O S I T I O N A S A G LO B A L C I T Y, A P R E S E N C E I N T H E W E S T E N D I S N O W S E E N A S C RU C I A L B Y R E TA I L E R S I N O R D E R TO M A X I M I S E E X P O S U R E TO T H E I R B R A N D S .
Luxury Market
S TA N D B R O O K H O U S ES TA N D B R O O K H O U S E
26
The property comprises a modern mixed use
building with an elegant period façade arranged over
basement, ground and six upper floors. The building
was originally constructed in circa 1900 but was
comprehensively redeveloped and refurbished for the
first time in 2002. The current owner of the property
has recently finished a further refurbishment of all
the office floors and common areas. The property
occupies a prominent mid terrace site on Old Bond
Street.
No.2 Old Bond Street is let to Alexander McQueen
and comprises a ground floor and basement retail unit
which was comprehensively refitted in 2013.
No.4 Old Bond Street is let to Tods who currently
trade off ground and basement floors. Tods have
recently taken a lease over the first floor of the
property and a total remodelling of all elements of
their demise, including a full incorporation of the first
floor, is due to start in January 2016. The first floor has
already been completely stripped out to a shell finish
in anticipation of these works starting.
The second to fifth floors provide clear open plan
office space all of which has been completely
remodelled and refurbished since 2014.
The specification includes :-
• Brand new contemporary reception area and
common parts.
• Perimeter VRF air conditioning to all floors
• New raised access flooring
• New plasterboard ceilings with integrated lighting
• 8 person passenger lift
The sixth floor of the property is put over entirely
to residential use and comprises two self-contained
two bedroom apartments. The vendor has let
and managed these apartments throughout their
ownership. Potential exists to refurbish these
apartments to improve rental income or to offer
potential sales on a long leasehold basis.
Description
T H E B U I L D I N G WA S O R I G I N A L LY C O N S T RU C T E D I N C I R C A 1 9 0 0 B U T WA S C O M P R E H E N S I V E LY R E D E V E LO P E D A N D R E F U R B I S H E D F O R T H E F I R S T T I M E I N 2 0 0 2 .
27
S TA N D B R O O K H O U S ES TA N D B R O O K H O U S E
28 29
N O. 2 O L D B O N D S T R E E T I S L E T TO A L E X A N D E R M C Q U E E N A N D C O M P R I S E S A G R O U N D F LO O R A N D B A S E M E N T R E TA I L U N I T W H I C H WA S C O M P R E H E N S I V E LY R E F I T T E D I N 2 0 1 3
S TA N D B R O O K H O U S ES TA N D B R O O K H O U S E
30
TO D S H AV E R E C E N T LY TA K E N A L E A S E O V E R T H E F I R S T F LO O R O F T H E P R O P E RT Y A N D A TOTA L R E M O D E L L I N G O F A L L E L E M E N T S O F T H E I R D E M I S E W I L L C O M M E N C E I N J A N U A RY 2 0 1 6 .
31
33
S TA N D B R O O K H O U S ES TA N D B R O O K H O U S E
T H E S E C O N D TO F I F T H F LO O R S P R O V I D E C L E A R O P E N P L A N O F F I C E S PA C E A L L O F W H I C H H A S B E E N C O M P L E T E LY R E M O D E L L E D A N D R E F U R B I S H E D S I N C E 2 0 1 4
32
35
S TA N D B R O O K H O U S E
34
Accommodation
Tenant Floor UseArea
Sq m Sq ft
Alexander McQueen
Ground Retail 192.12 2,068
ITZA 1,319
Basement Sales 73.95 796
Basement Store 66.52 716
Basement Vault 16.7 2 180
Unit Total 349.32 3,760
Tod’s
Ground Retail 135.73 1,461
ITZA 106.00 1,141
Basement Sales 138.43 1,490
Basement Vaults 17.19 185
Unit Total 3,136
Tod’s First Retail 311.23 3,350
John Pye & Sons Second Offices 297.75 32.05
Argentex LLP Third Offices 292.37 31.47
Tritax Management LLP Fourth Offices 281.40 30.29
Squarestone Property Management Ltd Fifth Offices 236.25 25.43
LRJ Cazalet Sixth Residential 66.05 711
F. Emanuel Sixth Residential 69.12 744
Total 2194.84 23,625
The approximate net internal floor areas are as follows:-
Stairs
Stairs
Stairs
Staff Toilets
Common Access
Common Access
Stairs
Lift
Plant Plant
Plant
Plant
Plant
Plant
Basement
S TA N D B R O O K H O U S E
Ground Floor
Old Bond Street
Core
Staff Toilets
Common Access
Entrance Lobby
Stairs
Stairs
Stairs
3736
S TA N D B R O O K H O U S E S TA N D B R O O K H O U S E
Second Floor Fourth Floor
First Floor Third Floor
Old Bond Street Old Bond Street
Old Bond Street Old Bond Street
Old Bond Street
CoreChange in Level
Change in Level
Steps
Steps
Stairs
Core
Steps
Steps
Stairs
Core
Steps
Steps
Stairs
Core
Steps
Steps
Stairs
3938
S TA N D B R O O K H O U S E
Stairs
Fifth Floor
Old Bond Street
Sixth Floor
Core
Steps
Steps
Stairs
Flat 2
Awaiting split
Flat 1
4140
S TA N D B R O O K H O U S ES TA N D B R O O K H O U S E
Tenure
The property is held on a clean unencumbered freehold title, the extent of which is outlined on the below plan.
Planning
Energy Performance Certificates
The property has a variety of permitted uses including retail (A1), offices (B1) and residential. The most recent
change of use within the property was in relation to the first floor where the use has been changed from B1 to
A1 in order to accommodate the extension of the Tod’s store as they expand their retail operation.
The property is not listed but is located within the Mayfair Conservation Area.
Available within the data room
43
S TA N D B R O O K H O U S ES TA N D B R O O K H O U S E
42
Tenancy Schedule
Demise Tenant DescriptionAreas Lease Terms Rent ERV
CommentSq m Sq ft Start Expiry Break Review £ pa £ psf £ pa £ psf
Retail
4 – 5 Old Bond St. Basement & Ground Floors
Autumnpaper Ltd t/a Alexander McQueen
Ground Floor Sales 192.12 2,068
11-Oct-02 24-Dec-27 10-Oct-17 11-Oct-17 £1,22,300 £825 £1,830,000 £1,273
Rising rent agreed t last review being &2 £1,150,400 Yr 3 £1,186,360 Yr 4&5 £1,222,300 Have assumed rent of £1,222,300 as due from 11th Oct 2015.
Basement Sales (A/10) 73.95 796
Basement Store (A/20) 66.52 716
Basement Vaults (A/50) 16.72 180
TOTAL ITZA 133.594701 1,438
2 – 3 Old Bond St. Basement & Ground Floors
Tod’s UK Ltd
Ground Floor Sales 135.72 1,461
29-Sep-02 24-Dec-27 29-Sep-17 £1,000.000 £800 £1,593,000 £1,273 6 months rent free due from start of the 1st floor fit out works
Ground Floor ITZA 106.00 1,141
Basement Sales (A/10) 83.61 900
Basement Store (A/20) 54.81 590
Basement Vaults (A/50) 17.19 185
TOTAL ITZA 117.448137 1,264
1st Floor Tod’s UK Ltd Retail 292.92 3,350 24-Jun-14 23-Jun-29 24-Jun-19 £200,000 £59.70 £427,000 £127.32
Fit out works due to start Q1 2016 linking with ground floor retail unit. Floor to be valued @ A/10. Rent free of 6m due from start of fit out works.
Flagpole Tod’s UK Ltd 16-Oct-03 24-Dec-27 £1,000 £1,000
FlagpoleAutumnpaper Ltd t/a Alexander McQueen
25-Dec-09 24-Dec-27 10-Oct-17 £500 £500
933.58 10,249 £2,423,800 £3,851,500
Office
2nd Floor John Pye & Sons Ltd Office 292.92 3,205 1-Sept-15 31-Aug-25 1-Sep-20 £269,220 £84.00 £269,220 £84.00
6m rent deposit until tenant net profits = 3x rent for 3 years. 6 m rent free. TOB – if not exercised then 4 m rent free. Outside the act.
3rd Floor Argentex LLP Office 296.83 3,147 1-Sep-15 31-Aug-20 £262,775 £83.50 £264,348 £84.006m rent deposit until tenant net profits = 3x rent for 3 years. 7.5 m rent free. Outside the act.
4th Floor Tritax Management LLP Office 298.22 3,029 1-Sep-15 31-Aug-25 1-Sep-20 £254,436 £84.00 £254,436 £84.006m rent free deposit for 1 yea. 6 m rent free. TOB – if not exercised then 6 m rent free. Outside the act.
5th FloorSquarestone Property Management Ltd
Office 219.90 2,543 1-Jan-14 1-Jan-19 £184,078 £72.39 £213,612 £84.00
1107.87 11,924 £970,509 £1,001,616
Residential
6th Floor Flat A LRJ Cazalet Residential 219.90 711 1-May-12 30-Apr-15 £39,000 £39,000 Holding over – short term lease is to be agreed.
6th Floor Flat B F. Emanuel Residential 219.90 744 31-Jul-15 30-Jul-16 £39,000 £39,000 £4,500 rent deposit held.
439.80 1,455 £78,000 £78,000
Total 2,481.25 23,625 £3,472,309 £4,931,116
The property is fully let and income producing as per the below tenancy schedule. The next scheduled lease events of significance are the rent reviews on the retail units due in September and October 2017.
S TA N D B R O O K H O U S ES TA N D B R O O K H O U S E
44
Income Analysis
Rent pa % of Income
Retail £2,423,800 70%
Offices £970,509 28%
Residential £78,000 2%
Total £3,472,309 100.00%
Rent pa % of Income
10 - 15 Years £2,423,800 69.80%
5 – 10 Years £523,656 15.08%
Less than 5 Years £524,853 15.12%
Total £3,472,309 100.00%
Income By Use
Income By Expiry / Break
28%Office
15%5-10 Years
70%Retail
70%10-15 Years
2%Residential
15%Less than 5 Years
47
S TA N D B R O O K H O U S ES TA N D B R O O K H O U S E
46
Tod’s Tod’s UK Limited
Guarantor: Tod’s Spa
(34.59% of total gross income)
Tod’s UK Ltd is the trading name of Tod’s, an Italian
luxury fashion retailer specialising in shoes and other
leather goods. The company was founded in 1920 and
now has numerous stores around the world including
flagships in Europe, US, China, Japan, Malaysia,
Singapore, Hong Kong, Indonesia and Australia.
As of 31st December 2014, Tod’s UK Ltd reported the
following figures:-
Turnover: £20,844,882
Pre-Tax Profit: £2,802,581
Total Assets: £14,012,887
The company has a D&B Rating of 3A1 representing a
minimal risk of business failure.
Tod’s Spa have a net worth of €644,223,000 and a D&B
Rating of 5A 1 representing a minimal risk of business
failure.
Alexander McQueen
Autumnpaper Limited
Guarantor: Kering Holland N.V.
(35.22% of total gross income)
Autumnpaper Ltd is the trading name for Alexander
McQueen, an international retailer of luxury clothing
and accessories. The company has stores around the
world including flagships in London, Paris, New York,
San Francisco, Los Angeles, Las Vegas, Miami, Milan
and Hong Kong.
As of 31st December 2013, Autumnpaper Ltd reported
the following figures:-
Turnover: £31,172,574
Pre-Tax Profit: £3,003,624
Total Assets: £27,306,847
The company has a D&B Rating of E1 representing a
minimal risk of business failure.
Kering Holland N.V. is the company name of the Gucci
Group. They have a net worth of €3,690,301,000 and
a D&B Rating of 5A 1 representing a minimal risk of
business failure.
Tritax
Tritax Management LLP
(7.33% of total gross income)
Tritax Management LLP is a market leading investment
fund management house focused on acquiring and
managing commercial property investments for private
equity. The company was founded in 1995 and currently
has £1.61 billion pounds of assets under management.
As of 31st March 2015, the company reported the
following figures:-
Total Assets: £3,199,523
The company has a D&B Rating of O2 representing a
lower than average risk of business failure.
Squarestone
Squarestone Property Investment Management Ltd
(5.30% of total gross income)
Squarestone Property Investment Management Ltd are
a well established property investment management
company with significant funds under management.
As of 31st March 2014, the company reported the
following figures:-
Turnover: £920,978
Pre-Tax Profit: (£493,676)
Total Assets: £724,724
The company has a D&B Rating of A1 representing a
minimal risk of business failure.
John Pye & Sons
John Pye & Sons Ltd
(7.75% of total gross income)
John Pye & Sons Ltd is an auction house established
over 60 years ago specialising in property auctions,
vehicle auctions and public auctions.
For the year ending 31st July 2014, the company
reported the following figures:-
Turnover: £1,279,705
Pre-Tax Profit: £1,279,705
Total Assets: £4,598,515
The company has a D&B Rating of 1A2 representing a
lower than average risk of business failure.
Argentex
Argentex LLP
(7.57% of total gross income)
Argentex LLP is a foreign exchange specialist providing
bespoke, advisory and execution services to corporates,
institutions, government agencies and not for profit
organisations.
For the year ending 31st March 2015 the company
reported the following figures:-
Turnover: £1,738,582,863
Pre-Tax Profit: £0
Total Assets: £180,032,785
The company has a D&B Rating of 2A1 representing a
minimal risk of business failure.
Covenants
Rental deposits are held for each of the office tenancies. Further information is provided in the dataroom.
S TA N D B R O O K H O U S E
48
Retail
The Bond Street retail occupational market continues to
strengthen with ever increasing demand from international
retailers seeking representation on the street. Since 2012,
twenty nine luxury brands have opened their first UK site
in London with the largest proportion of those locating
on Bond Street. This influx of new international entrants
and robust demand from existing occupiers, coupled with
constrained availability, has generated upward pressure on
rents across the whole of Central London and Bond Street
in particular. Since Q1 2007, prime Zone A rents on Old
Bond Street have increased by an average of 13.4% per
annum and rents now stand 160% higher than at the onset
of the financial crisis in Q3 2007. With the continuing
demand/supply imbalance and improving Global economic
landscape, this upward pressure on rents looks set to
continue.
The Zone A rent on the Tod’s unit currently equates
to £800 per sq.ft. The Zone A rent on the Alexander
McQueen unit equates to £825 per sq.ft. We consider both
of these rents to be highly reversionary and a schedule
of supporting evidence is below. A key deal, currently
in solicitors’ hands, is at 45a Old Bond Street, directly
opposite the subject property. This is an open market
letting at a rent of £1,050,000 per annum, equating to
£1418 psf Zone A, which will set a new rental high in
this pitch. In light of this, our estimate of the ERV is in the
region of £1,400 Zone A which produces rental levels of
£xxx for Tods and £xxx for Alexander McQueen.
Offices
Mayfair is internationally recognised as one of London’s
most prestigious and exclusive office locations with a
diverse occupier base housing multinational corporations
through to boutique service providers and hedge fund
operators. Mayfair has seen the greatest levels of rental
growth and commands some of the highest office rents in
the world. Demand is outstripping the restricted supply and
prime rents are now headlining at around £150 psf for the
best space.
The 2nd to 4th floors in Standbrook House have just
been refurbished and were let within a short period of
completion at rents reflecting an average of £84 psf,
providing a reversion on the 5th floor and a low base for
future rental growth on the remainder.
Residential
The residential market in Central London remains strong
as demand for housing consistently outweighs supply,
supported by the strong economy and emergence of
London as one of the top Global Cities. International
demand remains strong and will continue to be a key driver
for prime London residential.
Mayfair is one of the worlds most exclusive and prestigious
residential addresses, with unrivalled amenities including
some of the worlds best restaurants and hotels and luxury
retail offer. The rental market remains strong and sale
values are now achieving rates which reflect capital values
of over £5,000 per sq ft.
Occupational Market
T H E P R O P E RT Y I S F U L LY L E T A N D I N C O M E P R O D U C I N G .
51
S TA N D B R O O K H O U S ES TA N D B R O O K H O U S E
50
D£1,150
E£1,100
A£1,418
G£1,150
B£1,230
C£1,175
F£1,150
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72.14%
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Rental Tone Plan
Address Occupier Transaction Date Rent Zone A
A 45a Old Bond Street TBC Open Market Letting TBC £1,050,000 £1,418
B 10 Old Bond Street DAKS Rent Review May 15 £2,900,000 £1,230
C 12 Old Bond Street Omega Rent Review Apr 15 £724,000 £1,175
D 6-8 Old Bond Street Dolce & Gabbana Re-Gear Jan 15 £3,915,990 £1,150
E 40-41 Old Bond Street Cartier Rent Review Jun 14 £1,100,000 £1,100
F 22 OId Bond Street Chatila Rent Review Jun 14 £915,000 £1,150
G 28 Old Bond Street Camper Rent Review Apr 14 £508,000 £1,150
Address Tenant Price Yield Date CV £psf
1 New Bond Street House, 1-5 New Bond Street
Patek Philippe and Georg Jensen
£112m 2.4% Q2 2014 £3,848
2 141-142 New Bond Street Fendi £75.2m 2.60% Q1 2014 £6,116
3 16 Old Bond Street Prada £55m 2.75% Q4 2013 £4,813
4 103 New Bond Street Christies £30.3m 1.87% Q4 2013 £3,202
5 126-127 New Bond Street Canali £44.1m 2.10% Q3 2013 £3,553
6 9 OId Bond Street Gina Shoes £19.15m 1.42% Q2 2013 £6,533
7 178 New Bond Street Boodles £33m 2.14% Q2 2013 £10,210
8 174 New Bond Street Harry Winston £31.3m 2.26% Q2 2013 £7,242
53
S TA N D B R O O K H O U S ES TA N D B R O O K H O U S E
52
Proposal
VAT
We are instructed to seek offers in excess of £160,000,000 (One Hundred and Sixty Million
Pounds) subject to contract and exclusive of VAT. A purchase at this level assuming costs of
5.80% provides the following yield profile:
Initial Yield 2.05%
Nominal Equivalent Yield 2.98%
Reversionary Yield (2017) ….%
Reversionary Yield (2019) ….%
The property is registered for VAT and it is therefore proposed that any agreed sale will be
treated as a TOGC (Transfer of a Going Concern).
Investment Rationale
• Standbrook House offers investors the opportunity to acquire a substantial and rarely
available freehold investment on Old Bond Street, one of the World’s premier luxury retailing
thoroughfares.
• The retail units are let to the internationally recognised luxury brands of Tod’s and Alexander
McQueen for in excess of 12 years providing excellent security of income.
• The contracted retail rents are low offering the successful purchaser significant reversionary
potential on their investment.
• Retail rents on Old Bond Street have seen considerable growth in recent years having grown
by an average of 13.4% per annum since the beginning of 2007.
• Rental growth is forecast to continue with the demand for space far exceeding supply and
being driven by the continuing growth of the global luxury retail market.
• The upper floors comprise newly refurbished and fully let Grade A offices and two
residential flats providing a diversified income stream.
• The purchaser of Standbrook House will benefit from a landmark ownership in Central
London, a key Global city that continues to attract significant inflows of capital from both
domestic and overseas investors.
Investment Commentary
Central London remains one of the most globally sought after destinations for international
property investment with investment volumes already this year exceeding that of last year.
Demand remains strong from private overseas buyers attracted to the safe haven status, liquidity,
transparency and rental growth story that London offers. Bond Street investments are considered
super prime and demand for them is consistently high with very few being openly traded.
S TA N D B R O O K H O U S E
54
Further Information
For further information can be found on the website at www.standbrookhouse.com.
There is in addition a comprehensive data room containing all relevant supporting
information and legal documentation. For access to the data room or to arrange an
inspection of the property please contact either of the joint agents:
Robert Mortimer
020 7528 9415
rmortimer@chapman-petrie.co.uk
Will Horder
020 7528 9400
whorder@chapman-petrie.co.uk
Tim Morgan
020 7318 1933
tjm@hsmuk.com
Andrew Taylor
020 7318 1934
art@hsmuk.com
MISREPRESENTATION ACT 1967 – Chapman Petrie and Hoddell Stotesbury Morgan Ltd for themselves and for the Vendors of the property whose agents they are give notice that: 1. The particulars are set out as a general outline only for the guidance of intending purchasers and do not constitute part of an offer or contract; 2. All descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given without responsibility, and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; 3. No person in the employment of Chapman Petrie or Hoddell Stotesbury Morgan Ltd has the authority to make or give any representation or warranty whatever in relation to this property; 4. Rents quoted in the above particulars may be subject to VAT in addition; 5. Chapman Petrie and Hoddell Stotesbury Morgan Ltd will not be liable, in negligence or otherwise for any loss arising from the use of these particulars. September 2015.