PRIME TOWN CENTRE OFFICE BUILDING INVESTMENT & … · 2020-04-02 · Apr-17 The Malt House,...
Transcript of PRIME TOWN CENTRE OFFICE BUILDING INVESTMENT & … · 2020-04-02 · Apr-17 The Malt House,...
1 WHEATFIELD WAY | KINGSTON UPON THAMES | SURREY | KT1 2TU
PRIME TOWN CENTRE OFFICE BUILDING
INVESTMENT & FUTURE DEVELOPMENT OPPORTUNITY
1 WHEATFIELD WAY | KINGSTON UPON THAMES | SURREY | KT1 2TU 2
RIVER THAMES JOHN LEWIS & WAITROSE
MARKET PLACE
EDEN WALK SHOPPING
CENTRE
KINGSTON RAILWAY STATION
PREMIER INN
1 WHEATFIELD WAY
BENTALL
CENTRE
A rare opportunity to acquire a prime Kingston upon Thames town centre office
building, comprising 6,351 sq ft of grade A space.
North wing ground floor suite, comprising 2,047 sq ft, let to Svenska Handelsbanken,
a major Scandinavian bank with 200 branches in the UK who hold a lease until 5th
February 2019.
Terms agreed with Svenska Handelsbanken to grant them a new 5 year lease from 6th
February 2019 at a rent of £55,759 per annum, reflecting £27.24 per sq ft.
The Vendors are prepared to top up the rent for the remaining space for a period of up
to 12 months at £113,290, reflecting approximately £28 per sq ft.
Prominently situated adjoining the prime retail pitch of Kingston town centre.
Prime rents in Kingston are now close to £30 per sq ft.
Town centre rents are set to see further rental growth as a result of a severe lack of
grade A supply and a minimal development pipeline.
Freehold opportunity.
Potential to increase the overall rental with future lettings of the vacant space.
The property is not subject to an Article 4 Direction, therefore allowing future
residential conversion.
Potential for a future office or new residential development, STPP, at a higher density.
PROPOSAL Offers are sought in excess of £2,500,000 (Two Million Five Hundred Thousand
Pounds), subject to contract and exclusive of VAT.
1 WHEATFIELD WAY | KINGSTON UPON THAMES | SURREY | KT1 2TU
INVESTMENT SUMMARY
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1 WHEATFIELD WAY | KINGSTON UPON THAMES | SURREY | KT1 2TU
LOCATION
Kingston is an affluent, historic London suburb located on the banks of
the River Thames and situated approximately 10 miles south west of
Central London.
Kingston is an established office location as well as providing one of the
largest retail centres in Greater London and the south of England. Office
occupiers are a mix of local and international companies which include
Unilever, Sitel and Saipem, whilst Surrey County Council’s Head
Quarters are located in the area. Major retailers include Bentalls and
John Lewis.
Kingston is also the home of Kingston University and Kingston College
with an estimated 20,000 student population.
Kingston is extremely well connected, being some 8 miles from J10 of the
M25 thereby providing access to the wider UK motorway network.
Kingston Railway Station provides a regular train service to London
Waterloo with an approximate journey time of 25 minutes. Also well
located to both Heathrow and Gatwick Airports, being approximately 8
miles to the north west and 24 miles to the south, respectively.
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1 WHEATFIELD WAY | KINGSTON UPON THAMES | SURREY | KT1 2TU
SITUATION
The property occupies a prominent corner position situated at the junction of
Wheatfield Way and Penrhyn Road and directly facing Kingston Hall Road.
Kingston’s historic Market Place is within one minute’s walk as is the main shopping
centre, whilst Kingston University and County Hall, the HQ of Surrey County Council,
are approximately 200 metres from the premises. Kingston mainline railway station is
within 10 minutes walking distance.
DESCRIPTION
The property was constructed in 1990 and is arranged over ground and first floor
levels.
The property is of a concrete framed construction with brick elevations and a natural
slate weathered pitch roof.
SPECIFICATION
Internally the property is highly specified to a grade A specification:
A surfaced car park is located to the rear of the building providing 12 on site car
parking spaces, reflecting a ratio of 1:529 sq ft. The car park is approached from
Palmer Crescent via Knights Park.
− VAV air conditioning
− Full raised access floors
− Suspended metal tile ceilings
− Recessed LG7 lighting
− Double glazed windows
− 8 Person passenger lift
− Male, female and disabled WCs
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NIA GIA
Floor Suite Sq Ft Sq M Sq Ft Sq M
First
North Wing 2,190 203.5 2,332 216.75
South Wing 928 86.25 1,041 96.75
Reception - - 250 23.25
Ground
North Wing 1,934 179.75 2,247 208.75
Comms Room 113 10.5 - -
South Wing 928 86.25 1,041 96.75
Reception 258 24.0 378 35.0
TOTAL 6,351 590.25 7,289 677.25
1 WHEATFIELD WAY | KINGSTON UPON THAMES | SURREY | KT1 2TU
ACCOMMODATION & FLOOR PLANS
The property has been measured in accordance with the RICS Code of Measuring
Practice (6th Edition) and the approximate Net Internal Areas (NIA) and Gross
Internal Areas (GIA) are as follows:
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Ground Floor
First Floor
SITE
The property extends
to approximately 0.21
acres (0.085 hectares).
Not to Scale - for indicative purposes only
1 WHEATFIELD WAY | KINGSTON UPON THAMES | SURREY | KT1 2TU 7
TENANCY
Terms have been agreed with Svenska Handelsbanken to take a new lease of the ground floor north wing, thereby showing the following
tenancy details:
Demise Tenant Size Sq Ft
Rent £pa
Rent £psf
Lease Start
Lease End
L&T Act 1954
Ground Floor North & Comms Room Svenska Handelsbanken 2,047 55,759 27.24 6th Feb 2019 5th Feb 2024 Outside
Ground Floor South Vacant 928 - - - - -
Ground Floor Reception 258 - - - - -
First Floor North & South Vacant 3,118 - - - - -
TOTAL 6,351 £55,759
The Vendors are prepared to top up the rent for the vacant space outlined above for a period of up to 12 months by paying an annual rent of
£113,290. Should any lettings of the vacant space be completed within the 12 month period then a pro rata discount would then apply.
COVENANT INFORMATION
Handelsbanken, one of Sweden’s leading
banks, was founded in 1871 and now
operates over 800 branches worldwide
including over 200 UK branches offering full-
service banking facilities.
Handelsbanken have continually topped the
EPSI rating for customer satisfaction for both
corporate and individual customers.
£million*
2017 2016 2015
Total Income 3,636 3,557 3,519
Operating Profit 1,834 1,800 1,786
Total Equity 12,335 11,900 11,192
* At conversion rate SEK:GBP 1:0.087 as at 7th December 2018.
1 WHEATFIELD WAY | KINGSTON UPON THAMES | SURREY | KT1 2TU 8
KINGSTON OFFICE MARKET
Kingston is characterised by a limited supply of all grades of office space,
whilst a lack of any new developments along with the loss of a great
amount of space to residential under Permitted Development means that
this situation is unlikely to change for the foreseeable future. However,
demand for office space in Kingston remains active with the
consequence that the area is likely to see good prospects for rental
growth exceeding current levels at £30.00 per sq ft.
Prime rents in the neighbouring markets of Wimbledon and Richmond
have progressed to £54.00 and £48.50 per sq ft respectively, whilst
Surbiton, an adjoining town, has achieved £36.00 per sq ft. KINGSTON £30.00
TWICKENHAM £32.50
RICHMOND £48.50
WIMBLEDON £54.00
SURBITON £36.00
PUTNEY £47.50
Date Address Size
Sq Ft Tenant Rent psf Comments
Aug-18 Burgoine Quay, Hampton Wick 18,000 Accenture £33.50 Re-gear of existing lease for 5 years.
May-18 Parc House, Kingston 1,294 Vertex Resourcing £29.37 6 year term, mutual breaks subject to 6 months’ notice.
Jan-18 The Factory, Kingston 2,916 Incite Out Ltd £27.50 5 year term.
Oct-17 DST House, Surbiton 8,832 Navisite £36.00 10 year term, break in year 5.
Apr-17 The Malt House, Kingston 2,550 Techtotal Ltd £27.50 5 year term, break at year 3.
Apr-17 The Malt House, Kingston 2,800 Protocol Education Ltd £28.50 10 year term, break at year 5.
Dec-16 Hind Court, Kingston 21,115 Kingston University £28.00 5 year term.
RENTAL COMPARABLES
SOUTH WEST LONDON RENT MAP
THE KINGSTON OFFICE MARKET IS
CONSTRAINED WITH VERY LIMITED
SUPPLY OF AVAILABLE OFFICE SPACE
1 WHEATFIELD WAY | KINGSTON UPON THAMES | SURREY | KT1 2TU 9
FUTURE RESIDENTIAL DEVELOPMENT OPPORTUNITY
A great deal of Kingston Town Centre is subject to an Article 4 Direction which
prevents a change of use via Permitted Development Rights (PDR) from offices to
residential. However, 1 Wheatfield Way is located just outside the Article 4 Direction
area and could benefit from a future approval for conversion to residential. This could
establish the principle of residential on the site, thereby allowing potential for a new
residential development at a higher density.
Current residential values in the location appear to be supporting approximately £650 /
£700 per sq ft.
ASSET MANAGEMENT OPPORTUNITIES
The property offers a number of asset management opportunities including the following:
Drive up the rental income by creating new tenancies on the vacant office space.
Increase the height of the building to increase the net lettable area and rental
income.
Future residential conversion through the PDR policy or residential development of
the site.
1 WHEATFIELD WAY | KINGSTON UPON THAMES | SURREY | KT1 2TU 10
MISREPRESENTATION ACT 1967 and PROPERTY MISDESCRIPTIONS ACT 1991
Cattaneo Commercial for themselves and for the vendors of this property whose agents they are give notice that: a) the particulars are set out as general outline only for the guidance of intending purchasers and do not constitute, nor constitute part of, an offer or contract; b) all descriptions,
dimensions, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchaser should not rely on them as statements or representations of fact but should satisfy themselves by inspection
or otherwise as to the correctness of each of them; c) no person in the employment of Cattaneo Commercial has any authority to make or give any representation or warranty whatever in relation to this property.
FURTHER INFORMATION
TENURE
Freehold. The property is held on Title Number SGL148754.
VAT
We are advised the property is elected for VAT.
EPC
The building has an EPC rating of D (86) and a copy of the certificate is available on request.
PROPOSAL
Offers are sought in excess of £2,500,000 (Two Million Five Hundred Thousand Pounds),
subject to contract and exclusive of VAT. A purchase at this level will reflect a low capital
value of £394 per sq ft on the NIA and £344 per sq ft on the GIA.
CONTACT
Bob Cattaneo
Managing Director
+44 (0) 20 8481 4744
+44 (0) 79 6647 8472
CATTANEO COMMERCIAL LTD
19-23 High Street
Kingston upon Thames
Surrey KT1 1LL
www.cattaneo-commercial.co.uk
Adam Soliman
Director
+44 (0) 20 8481 4742
+44 (0) 77 1475 9701
Andy Armiger
Director
+44 (0) 20 8481 4741
+44 (0) 79 7320 7424