401 KING STREET HAMMERSMITH W6 - Allsop · Attractive roof terrace on third floor The building is...

4 0 1 K I N G S T R E E T • HAMMER SM I TH • W 6

PROMINENT FREEHOLD CORNER PROPERTY, 0.45 ACRE SITE

HAMMERSMITH IS A WELL-ESTABLISHED OFFICE, RETAIL, LEISURE AND RESIDENTIAL DESTINATION PROVIDING EXCELLENT CONNECTIVITY

OFFICE AND RETAIL ACCOMMODATION TOTALLING 24,566 SQ FT (2,282.3 SQ M) ARRANGED OVER GROUND AND THREE UPPER FLOORS WITH 23 CAR PARKING SPACES TO THE REAR

TENANTS INCLUDE QANTAS AIRWAYS LIMITED AND JOURNEY LATIN AMERICA LIMITED

TOTAL PASSING RENT OF £766,026 PER ANNUM. THIS REFLECTS A VERY LOW AVERAGE PASSING RENT OF £31.18 PER SQ FT

OFFICE BLOCK DATE OF MARCH 2019 ALLOWING FOR A POTENTIAL REFURBISHMENT / EXTENSION INCLUDING THE ADDITION OF A FOURTH FLOOR

OPPORTUNITY TO DEVELOP THE CAR PARK SITE TO THE REAR OF THE PROPERTY

WE ARE INSTRUCTED TO INVITE OFFERS IN EXCESS OF £14,350,000 (FOURTEEN MILLION THREE HUNDRED AND FIFTY THOUSAND POUNDS) SUBJECT TO CONTRACT AND EXCLUSIVE OF VAT. THIS REFLECTS 5.00% NIY AND A VERY LOW CAPITAL VALUE OF £584 PER SQ FT.

INVESTMENT SUMMARY

3


FULHAM ROAD

LILLIE ROAD

OLD BROMPTON RD.

WESTWAY

HOLLAND PARK AVE.

BAYSWATER ROAD OXFORD STREET

GOLDHAWK ROAD

UXBRIDGE ROAD

FULH

AM

PALA

CE RD

.

CASTELNAU

HOLLA

ND ROA

D WA

RWICK RO

AD FINBO

ROUGH RO

AD

CHELSEA EMBANKMENT

FULHAM ROAD

EDGWA

RE ROA

D

WESTWAY

PARK LA

NE

NEW KING’S ROAD

KING’S ROAD

VAUXHALL BRIDGE RD.

NINE ELMS LANE

PORTLA

ND

RD.

REGEN

T ST.

PICCADILLY

THE MALL

KING STREET

KENSINGTON HIGH ST.

MARYLEBONE ROAD

HA

MM

ERSMITH

GRO

VE Hammersmith

Ravenscourt Park

A4 A4

River Thames

Green Park

Hyde Park

St James’s Park

South Kensington

Sloane Square

Hyde Park Corner

Embankment

Victoria

Green Park

Goldhawk Road

Stamford Brook

Earls Court

Shepherd’s Bush

Notting Hill Gate

Paddington

Vauxhall

Euston

Oxford Circus

Bond Street

Great West Road

Heathrow Airport CHELSEA

FULHAM

BELGRAVIA

MAYFAIR

BAYSWATER

KENSINGTON

KNIGHTSBRIDGE

A404A404

CHISWICK

20 minutes by car40 minutes by tube

M4

Kensington Olympia

The property is located on King Street, which connects Hammersmith town centre with Chiswick High Road. The London Borough of Hammersmith and Fulham is a well-established office, retail, leisure and residential destination. The area is undergoing major regeneration through significant investment from internationally renowned developers including Legal & General, Bell Hammer, AXA, Eastern & Oriental, Kier and Investec. Attracted by high-quality office product, lower occupancy costs and excellent transport links, there has been a recent trend of occupiers from central London relocating to Hammersmith.

The area’s transport links and extensive retail and leisure amenities have attracted major corporate occupiers such as L’Oreal, Walt Disney, Sony Ericcson, Harrods, Fox International, Shazam, Virgin Media and Dunnhumby

401 King Street holds a prominent corner position on the southern side of King Street at its junction with St Peter’s Square.

LOCATION & SITUATION


Ravenscourt Park

The Clockwork Building

St Peter’s Square

Earl’s Court

10 & 12 Hammersmith Grove

The Ark

The Foundry

A4

SHEPHERD’S BUSH ROAD

KING STREET

HAMMERSMITH

5


Westfield London

The Aircraft FactoryHammersmith Bridge

The London Automotive Factory Lyric Square

Kings Mall

HAMMERSMITH

EALING BROADWAY14 mins

EARLSCOURT

5 mins

LIVERPOOL STREET34 mins

S H E P H E R D ’ S B U S H15 mins

V I C T O R I A16 mins

WESTMINSTER18 mins

MONUMENT28 mins

PADDINGTON12 mins

KING’S CROSS24 mins

HAMMERSMITH & CITY LINECIRCLE LINE

CENTRAL LINE

PICCADILLY LINE

W H I T E C I T Y11 mins

DISTRICT LINEPICCADILLY LINE

DISTRICT LINE

DISTR

ICT LIN

E

HEATHROW AIRPORT30 mins

via Paddington Express & Piccadilly Line

WIMBLEDON26 mins

The property is served by a number of London Underground stations providing onwards access to central and Greater London. Stamford Brook (District Line) is situated approximately 300 metres to the north, whilst Ravenscourt Park (District Line) is located approximately 600 metres east of the property. Hammersmith Station, approximately 0.75 miles east of the property, serves as a major interchange on the London Underground network (Hammersmith & City, District and Piccadilly Lines).

Rail communications are supplemented by Hammersmith bus station, which provides access to 17 bus routes.

COMMUNICATIONS

Situated just 4 miles west of London’s West End and 10 miles east of Heathrow International Airport, Hammersmith serves as a key arterial route in and out of London via the A4.

Not to scale, indicative only

HAMMERSMITH STATION OFFERS

4 Underground Lines

17 Bus Routes

Elizabeth Line (Crossrail) connecting from Paddington Station 2018

Heathrow Express connecting from Paddington Station


The property occupies a 0.45 acre (0.18 hectare) site and comprises a three-storey red brick clad retail and office building constructed in 1983.

The property was comprehensively refurbished in 2009 to provide the following:

New reception

Two new 10-person passenger lifts

New WCs on all floors

Reconditioned air conditioning (3 pipe VRF fan coil system)

Combination of under floor trunking and fully accessible raised floors

Suspended ceilings with LG7 compliant lighting

Attractive roof terrace on third floor

The building is predominantly B1 Office use arranged over the ground and three upper floors. The office accommodation totals 23,000 sq ft (2,136.8 sq m) providing typical floor plates of approximately 7,000 sq ft. The floor plates are ‘L’ shaped with the main staircase and core at the junction of the L. There are two additional cores at each end of the ‘L’ containing fire exits.

There are two retail units, totalling 1,566 sq ft (145.5 sq m), which front the southern side of King Street. The two units are currently occupied by a single tenant.

The property benefits from 23 uncovered car parking spaces to the rear of the property.

DESCRIPTION

9


ACCOMMODATION

ACCOMMODATION SCHEDULE

FLOOR USENIA

(SQ FT)NIA

(SQ M)

Third Office 4,036 375.0

Second Office 6,916 642.5

First Office 6,833 634.8

Ground Office 5,215 484.5

Ground Retail

(Units 1 & 2)1,566 145.5

TOTAL 24,566 2,282.3


EXISTING FLOOR PLANS

Office: 6,833 sq ft / 634.8 sq m

TYPICAL UPPER FLOOR PLAN

Floor plans not to scale, indicative only

393

Office: 5,215 sq ft / 484.5 sq m

Retail: 1,566 sq ft / 145.5 sq m

GROUND FLOOR PLAN

Car Park

SubStation

King Street

St Peter’s Square

St Peter’s Square

King Street

© Morrow & Lorraine © Morrow & Lorraine

11


TENUREFreehold.

35

Vicarage

4

St Peter's

S

KING STREET

TP

ET

ER

'SS

QU

AR

E

S T PETER 'S

1to

8

39

350a

El Sub Sta

37

360a

3 62

41 7

395to403

a

366

407

348

360

370372

350

43

393

EntwistleTerrace

1

4

5 to 38

ES T PE

S'

S T PETER 'S VILLAS

R

ST

C

RE

T

SQ

UA

RE

344

330

340a

B lack Lion Mews

46

6

El

338

1

3

Wes tcroft M

ews

346

6

61

373

1

4

Court

Wes tcroft

65

1

44

4

Sub Sta

160to

59

1

338a

383to385

340

1a

58

TENURE & TENANCY

Not to scale, indicative only


King Street

TENANCY SCHEDULE

DEMISE USEAREA SQ FT

TENANT NAME

PASSING RENT

RENT £PSF

TERM START

TERM END

RENT REVIEW

BREAK OPTION (LANDLORD)

1954 ACT COMMENTS

Third Floor Office 4,036 Ultima Media Limited £161,109 £39.92 25/03/2015 24/03/2021 - 24/3/2019 OutsideInclusive of five car parking spaces.

Tenant break option 24/3/2018 (not exercised).

Second Floor Office 6,916 Journey Latin America Limited £212,005 £30.65 25/12/2008 25/03/2019 - - Inside Inclusive of five car parking spaces.Assignment from Qantas.

First Floor Office 6,833 Qantas Airways Limited £207,247 £30.33 25/12/2008 25/03/2019 - - Inside Inclusive of five car parking spaces.

Ground Floor Office 5,215 Qantas Airways Limited £150,655 £28.89 25/12/2008 25/03/2019 - - Inside Inclusive of five car parking spaces.

Ground Floor Retail

(Units 1 & 2)1,566 Marble Arch Paints Limited £35,000 £22.35 24/01/2011 23/01/2021 24/01/2016 - Inside Inclusive of one car parking spaces.

2016 rent review outstanding.

Electricity Sub-Station Site

- - London Power Networks Limited £10 - 29/04/2009 28/04/2030 - - Inside

TOTAL 24,566 £766,026

QANTAS AIRWAYS LIMITED

46.72% of the contracted income

Founded in 1920 in Queensland, Qantas is now Australia’s main domestic and international airline providing services to 36 countries over Australia, New Zealand, Asia-Pacific, the Americas, Europe and South Africa. The airline’s headquarters are in Sydney, and their domestic network serves over 55 destinations. Qantas Group’s key business is passenger transport via the two airline brands Qantas and Jetstar.

Qantas Airways Limited has a Dun & Bradstreet rating of O (undisclosed).

THE ARCH HARDWARE LTD / MARBLE ARCH PAINTS LIMITED


The Arch Hardware Ltd is an independent business that was founded over 12 years ago. The business offers a range of hardware products for building, electrical works, plumbing, and decorating.

Marble Arch Paints Limited has a Dun & Bradstreet rating of H3.

TENANTS COVENANTS

ULTIMA MEDIA LIMITED


Ultima Media’s parent company is Suddeutscher Verlag, which is one of Germany’s largest media companies focusing on newspapers, journals and books. Ultima Media publishes online and on paper to provide coverage of the automotive industry.

Ultima Media Limited has a Dun & Bradstreet rating of 1A 1.

JOURNEY LATIN AMERICA LIMITED


Since 1980 Journey Latin America has been the UK’s leading expert in travel to Latin America. The travel company has won an array of awards over the years including The Times Travel Awards 2017, Conde Nast Traveller Reader’s Awards 2017 and Best Website, The Travel Marketing Awards 2017.

Journey Latin America Limited has a Dun & Bradstreet rating of 2A 1.

13


THE HAMMERSMITH & CHISWICK OFFICE OCCUPATIONAL MARKETS

KEY OFFICE LEASING COMPARABLES

DATE PROPERTY FLOORAREA

(SQ FT)TENANT

RENT (PSF)

TERM (YEARS)

Dec-17 The Clockwork Building, 45 Beavor Lane, W6 3rd 2,777 Vosaio Travel £53.50 5

Dec-17 The Clockwork Building, 45 Beavor Lane, W6 5th 3,842 Cult Wines £55.00 10

Dec-17 One King Street, W6 5th 5,764 Insulet Corp £55.00 5

Dec-17 Smith Square, W6 3rd 5,500 Yoobic £56.50 5

Oct-17 12 Hammersmith Grove, W6 6th & 7th 24,938 Perform Media Group £55.50 10

Sep-17 12 Hammersmith Grove, W6 1st, 2nd & 3rd 52,837 WeWork £55.00 20

Jan-17 Colet Court, 100 Hammersmith Road, W6 Ground 5,305 Gambit Research LLP £54.00 10

Jan-17 1 Queen Caroline Street, W6 2nd (Part) 8,239 BTS £52.50 10

Hammersmith is one of London’s fastest growing sub-markets, supported by the Greater London Plan endorsing development around the communication nucleus of Hammersmith Broadway.

Rental levels in Hammersmith and Chiswick range from £30 to £59 per sq ft. Grade A vacancy rates remain low at 3.4%, which is above the 5-year average of 3.1%. This is largely a result of the recent delivery of 566,000 sq ft. of Grade A stock from recent developments including: The Foundry, 1 Lyric Square, 245 Hammersmith Road and Kings House, 174 Hammersmith Embankment. Development immediately proximate to the 401 King Street is restricted with ‘new’ office stock typically delivered by way of refurbished existing buildings.

Hammersmith is experiencing the benefits of the movement of occupants from the core West End as they become increasingly ‘foot-loose’ and more cost-sensitive. There is currently significant demand for sub-5,000 sq ft floorplates in the area.


OFFICE INVESTMENT COMPARABLES

DATE ADDRESS TENUREAREA

(SQ FT)PRICE NIY

CAP VAL(PSF)

Dec-17 Thames Wharf Studios, Rainville Road, W6 FH 46,706 £Confidential (quoting £40.0m) 5.25% £856

Dec-17 227 Shepherds Bush Road, W6 FH 12,942 £9.75m 5.64% £753

Dec-17 12 Hammersmith Grove, W6 LLH 170,985 £170.0m 5.25% £994

Sep-17 10 Hammersmith Grove, W6 LLH 122,744 £122.0m 4.93% (1.80 % costs) £994

Apr-17 The Aircraft Factory, 100 Cambridge Grove,W6 FH 77,502 c. £625m (exchanged) c. 6.25% c. £806

Mar-17 The Warwick Building, Kensington Village, W14 vFH 79,506 £56.6m 5.20% £712

Nov-16 10 Hammersmith Grove, W6 LLH 122,744 £103.5m 5.33% £843

Nov-16 One King Street, W6 FH 36,951 £34.5m 4.85% £934

Jun-16 245 Hammersmith Road, W6 FH (50% stake) 121,000 (50%) £137.5m n/a £1,136

May-16 200 Hammersmith Road, W6 FH 66,280 £59.15m 4.69% £892

INVESTMENT MARKET COMMENTARY

Following the recent uncertainty surrounding the UK’s decision to leave the EU, central London’s commercial property investment market has recovered quickly. Overseas wealth continues to be deployed in the capital buoyed by the favourable sterling-US Dollar currency rates, with yields in the West End remaining at all-time lows in Q4 2017. Investor appetite has continued to favour those assets with long income and/or strong rental growth potential.

Investors are increasingly shifting their focus from core West End locations to fringe locations such as Hammersmith, seeking higher returns and value add opportunities. Consequently, in line with the wider London market, Hammersmith is characterised by strong competition and yield compression.

Hammersmith has seen a significant amount of investment activity over the course of the past two years, with a number of transactions highlighted in the table below:

15


DEVELOPMENT OPPORTUNITY

© Morrow & Lorraine

Indicative Office Extension SchemeNot to scale, indicative only

OFFICE EXTENSION

Potential ConfigurationMorrow & Lorraine Architects have considered potential extension schemes increasing the massing by circa 7,000 sq ft from the existing 24,566 sq ft to circa 31,500 sq ft of commercial accommodation.

The scheme could include the following:

Third floor extension

Additional fourth floor for B1 office use

Light/medium refurbishment of current office accommodation

Remodelled ground floor to include an enlarged reception

External terraces to the first, third and fourth floors

Potential to create a larger ground floor unit for enhanced A1/A3 use.


PROMINENT FREEHOLD CORNER PROPERTY OCCUPYING

A 0.45 ACRE SITE

LOW SITE COVERAGE OF 65%

FLEXIBLE OFFICE FLOORPLATES RANGING BETWEEN

APPROXIMATELY 4,000-7,000 SQ FT - READILY DIVISIBLE

23 CAR PARKING SPACES TO THE REAR OF THE PROPERTY

REVERSIONARY INCOME. VERY LOW AVERAGE PASSING

RENT OF £31.18 PER SQ FT. THE MOST RECENT LETTING

WITHIN THE BUILDING ACHIEVED £39.92 PSF IN 2015

BUILDING REFURBISHED IN 2009 TO INCLUDE TWO NEW

10 X PASSENGER LIFTS, NEW WCS, NEW RECEPTION AND

RECONDITIONED AIR-CONDITIONING

RENTS ON GROUND, FIRST AND SECOND FLOORS SET

AT A LOW POINT IN THE RENTAL CYCLE (2009) AND ARE

THEREFORE SIGNIFICANTLY REVERSIONARY

OFFICE BLOCK DATE OF MARCH 2019 ALLOWING FOR A

POTENTIAL REFURBISHMENT / EXTENSION INCLUDING

THE ADDITION OF A FOURTH FLOOR

OPPORTUNITY TO DEVELOP THE CAR PARK SITE TO THE REAR

OF THE PROPERTY TO PROVIDE ADDITIONAL COMMERCIAL

ACCOMMODATION OR A RESIDENTIAL SCHEME

INVESTMENT CONSIDERATIONS



ALTERNATIVE COURTYARD OPPORTUNITYAdditionally there is the opportunity to develop the large rear car park site for a possible commercial or residential scheme (subject to obtaining the necessary consents). The scheme below shows three mews houses:

New Build Mews Houses

17


VATThe property is elected for VAT. It is anticipated that the transaction is to be treated as a transfer of going concern (TOGC).

EPCFull EPCs are available in the dataroom.

PLANNINGThe property is situated within the London Borough of Hammersmith & Fulham and sits within the St. Peter’s Square Conservation Area. The building is not listed.

DATA ROOMPlease contact Allsop for password protected access to the data.

PROPOSALWe are instructed to invite offers in excess of £14,350,000 (Fourteen Million Three Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT based on adjusted purchasers costs of 6.73%. This reflects 5.00% NIY and a very low capital value of £584 per sq ft.

FURTHER INFORMATION

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 to the property are to 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 to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to 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 to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to 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. January 2018.

Mark IbbotsonT +44 (0) 20 7543 6879E [email protected]

Nick PembertonT t +44 (0) 20 7543 6775E [email protected]

Victoria BarronT +44 (0) 20 7543 6808E [email protected]

18 4 0 1 K I N G S T R E E T • HAMMER SM I TH • W 6

401 KING STREET HAMMERSMITH W6 - Allsop · Attractive roof terrace on third floor The building is...

Documents

Transcript of 401 KING STREET HAMMERSMITH W6 - Allsop · Attractive roof terrace on third floor The building is...