Queen’s House...Q3-19 5 St James’s Square 2,500 Lawrence Stroll £200 Q3-19 The Smithson Plaza...

Queen’s House64 St James’s Street, London sw1

2 Queen’s House, SW1

Freehold interest with Vacant Possession obtainable at short notice.

Super-prime position in St James’s, London’s most exclusive corporate address.

Of interest to owner occupiers, investors and developers.

Attractive neo-Georgian property constructed behind an elegant Portland stone façade with excellent levels of natural light.

13,609 sq ft (1,264.3 sq m) NIA / 19,428 sq ft (1,804.8 sq m) GIA of well-configured office accommodation arranged over lower ground, ground and six upper floors.

Well-suited to either single headquarters use or multiple occupancy.

Opportunity to deliver best-in-class Grade A space and benefit from St James’s premium rental levels, which now average £135 per sq ft.

Positive feedback from Westminster City Council regarding creation of a new floor and infilling to the rear, which could increase the NIA by at least 22%.

Opportunity to benefit from recent relaxations in UK planning policy and introduce alternative commercial uses including retail, gallery or leisure.

Offers are invited in excess of £35,000,000 (Thirty-Five Million Pounds).

A sale at this level reflects a capital value of £2,572 per sq ft on the NIA and £2,110 per sq ft on the proposed NIA.

INVESTMENT SUMMARY

Extremely rare investment opportunity - only one office freehold has transacted on St James’s Street over the past decade

4 Queen’s House, SW1 5Queen’s House, SW1

ST JAMES’S STREET

PALL MALL

REGENT STREET

ST JAMES’S SQUARE

Queen’s House

OLD BOND STREET

NEW BOND STREET

PICCADILLY

FORTNUM & MASON

THE ROYAL ACADEMY OF ARTS

CLARENCE HOUSE

BRIDGEWATER HOUSE

SPENCER HOUSE

BERKELEY SQUARE

THE RITZ

ST JAMES’S PALACE

GREEN PARK

GREEN PARK

7Queen’s House, SW1

Bordered by Green Park, Mayfair, Royal Palaces and Covent Garden, St James’s was originally developed as a home for aristocrats in the 17th Century and remains synonymous with heritage and exclusivity.

Corporate occupiers today are drawn by its strong connectivity, proximity to open parks, brand enhancing address and exceptional amenities, which include international art galleries, private members’ clubs, luxury hotels and exclusive restaurants.

LOCATION


St James’s is situated in the heart of the West End and is widelyacknowledged as being London’s pre-eminent corporate address

9Queen’s House, SW1Queen’s House, SW18

KING S

TREET

JERMY

N STR

EET

DUKESTR

EETST

JAMES’S

OLD

BONDSTREET

PICCA

DILLY

PICCA

DILLY

STJAMES’S

STREET

PALL

MALL

REGENT STREET

THE M

ALL

GREEN PARK

THE ROYALACADEMYOF ARTS

ST JAMES’SPALACE

ST JAMES’SSQUARE

ST JAMES’SPARK

GREENPARK

PICCADILLY

1

9

10

11

5

12

2

3

4

6

7

8

1

2

9

10

11

12

15

13

14

3 4

5

6

78

1

2

34

5

6

7

8

1

12

9

2

3

45

10

11

6

7 8St James’s Street, which forms a direct link between Piccadilly and St James’s Palace, has historically been the epicentre of London’s Private Members’ Clubs and bespoke luxury goods trade.

St James’s Street’s proximity to the multiple transport hubs and the area’s wider amenities including leading art galleries, restaurants, 5* hotels and the open spaces of Green Park and St James’s Park all add to its enduring appeal.

SITUATION

1 The Rothschild Foundation

2 EC Hambro Rabben & Partners

3 Blackstone

4 Temasek

5 St James’s Place Wealth Management

6 Warburg Pincus

7 BP

8 Rolex

9 Exodus Point Capital

10 Saranac Partners

11 Cheyne Capital

12 Artemis Capital

OFFICEOCCUPIERS

1 Berry Bros. & Rudd

2 Lock & Co. Hatters

3 Davidoff

4 Turnbull & Asser

5 Hilditch & Key Ltd

6 Alfred Dunhill

7 Paxton & Whitfield

8 Fortnum & Mason

9 William Evans

10 Beretta

11 Sharps Pixley

12 Wartski

13 Justerini & Brooks

14 Truefitt & Hill

15 DR Harris

RETAIL

1 Dukes Hotel

2 The Stafford London

3 Royal Ocean Racing Club

4 Equinox Gym

5 Pratt’s Members Club

6 Ritz Hotel

7 Boodle’s Members Club

8 White’s Members Club

HOTELS & CLUBS

1 Chutney Mary

2 Wiltons

3 Sake no Hana

4 Café Murano

5 Portland Gallery

6 Christie’s Auction House

7 Franco’s

8 White Cube Gallery

9 The Avenue

10 The Wolseley

11 Stern Pissarro Gallery

12 Saint Jacques

GALLERIES & DINING

Not to scale.For indicative purposes only.

St James’s prime yet discreet location is now perceived as a natural destination of choice for elite private family offices, hedge funds and UHNW wealth managers

Queen’s House

50 ST JAMES’S STREET

Redevelopment to provide a c.30,000 sq ft prestigious private members club


Recently refurbished behind a retained façade by WELPUT to provide 116,000 sq ft of mainly office accommodation


Squire & Partners scheme to provide 110,000 sq ft of offices with terracing

ST JAMES’S MARKET

St James’s Market continues to evolve and is the cornerstone of The Crown Estate’s £1.5bn investment programme


Comprehensive office refurbishment including addition of new area at 6th floor to provide c.30,000 sq ft of Grade A offices

SMITHSON PLAZA

80,000 sq ft mixed use estate has been recently refurbished internally and externally and boasts rents in excess of £200 psf

NEARBYDEVELOPMENTS

ST JAMES’S MARKET ↘


Queen’s House was developed by Land Securities Plc in 1986 behind an attractive Portland stone façade, which dates from 1937. The property, which is not listed, comprises 13,609 sq ft (1,264.3 sq m) NIA / 19,428 sq ft (1,804.8 sq m) GIA of well-configured office accommodation arranged across ground and six upper floors.

Last refurbished in 2006, the property benefits from excellent fundamentals including high levels of natural light on both elevations, average slab heights in excess of 3.0 metres, efficient configuration and attractive aesthetics.

The floors are accessed via a prominent reception on St James’s Street, and are linked by two 10-person passenger lifts.

The specification is as follows:

VAV underfloor air conditioning

Raised floors and metal-tiled suspended ceilings

Two 10-person passenger lifts

Male and Female WC provision on alternate levels

Shower facilities

Spacious reception

Large under-utilised basement


DESCRIPTION


The property has been measured by PRE Chartered Surveyors in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following areas:

EXISTING AREA SCHEDULE

FLOOR USE NIA(SQ FT)

GIA(SQ FT)

SLAB TO SLAB HEIGHTS

6 Office 1,725 2,221 3.3m

5 Office 1,883 2,361 3.1m

4 Office 1,923 2,407 3.1m

3 Office 1,923 2,407 3.1m

2 Office 1,922 2,407 3.1m

1 Office 1,919 2,404 3.5m

Ground Office 1,0751,969 3.7m

Ground Reception 385

Lower Ground Storage 854 3,252 3.0m

TOTAL 13,609 19,428


17Queen’s House, SW116 Queen’s House, SW1

FLOOR PLANS

S T J A M E S ’ S S T R E E T

S T J A M E S ’ S S T R E E TS T J A M E S ’ S S T R E E T

S T J A M E S ’ S S T R E E T

Not to scale.For indicative purposes only.

Office

Reception

Storage

LOWER GROUNDFLOOR

GROUND FLOOR

TYPICAL FLOOR(1st - 4th)

SIXTH FLOOR

ST JAME'S STREET

ST JAME'S STREET

UP

UP

LIFT 1 LIFT 2

166.40 m²1791.2 SF

OFFICE

GROUND

FIRST

SECOND

THIRD

FORTH

FIFTH

SIXTH

SEVENTH

LOWERGROUND

ROOF

Whilst the existing building is capable of immediate occupation with minimal capital expenditure, there exists an opportunity to utilise its vacant, unlisted status and reposition into a best-in-class Grade A office building.

DEVELOPMENT POTENTIAL

UP

UP

LIFT 1 LIFT 2

166.40 m²1791.2 SF

OFFICE

GROUND

FIRST

SECOND

THIRD

FORTH

FIFTH

SIXTH

SEVENTH

LOWERGROUND

ROOF


Tate Hindle has explored several repositioning options to include additional massing and reconfiguration. A pre-application scheme was submitted to Westminster City Council in 2017, which received the following feedback:

The principle of demolishing / redeveloping the building behind the façade is acceptable

Additional office floorspace would comply with Westminster Policy

To the rear, the principle of extending outwards and increasing the footprint of the building is acceptable

An extension infilling within the location of the existing fire escape is acceptable

An enhanced office entrance with level access to the street is acceptable

Positive pre-application feedback regarding the creation of a new 7th floor and outdoor space

On the basis of this feedback a scheme providing a minimum 2,982 sq ft / 22% increase in NIA has been developed which would include the addition of a new 7th floor and outdoor space, infilling of a redundant fire escape and rear light-well, and enhancement of the office entrance with improved accessibility.


Freehold.(Title Number LN240657)

* The land is subject to a right of way through a public carriageway thatconnects St. James’s Street with Blue Ball Yard. The right of way (which is tinted blue on the title plan) runs over a portion of the basement and under a portion of the first floor.

TENURE

64-65 St. James's Street, London, SW1A 1NF

Scott Lister

ST JAMES’S STREET

Not to scale. For identification purposes only. This plan is based upon the Ordnance Survey Map with the sanction of the controller of H.M. Stationery Office. Crown Copyright reserved.

Vacant Possession can be obtained on short notice.

TENANCY

One of only six freehold office buildings on St James’s Street


Queen’s House affords superb views across St James’s and central London



St James’s has long been regarded as London’s most exclusive office location, underpinned by excellent connectivity, high quality accommodation, unrivalled amenities and brand-enhancing heritage.

The resultant appetite for space in the area, set against a backdrop of extreme scarcity, has witnessed average prime office rents in St James’s consistently outperform those achieved elsewhere in the West End, especially in the case of sub-5,000 sq ft floorplates.

The demand / supply imbalance is particularly acute at present, with only 135,700 sq ft of consented space set to be speculatively delivered over the next five years, compared to an average annual take up of 149,800 sq ft.

Relevant office occupational transactions are provided in the adjacent table:

MARKET COMMENTARY

DATE ADDRESS NIA SQ FT

TENANT RENT PSF

U/O 20 St James’s Street 5,777 Confidential £115

Q3-20 20 St James’s Street 6,540 Confidential £112.50

Q4-19 The Smithson Plaza 3,595 Greyhound Capital £160

Q4-19 The Smithson Plaza 7,000 Pelham Capital £195

Q4-19 32 Duke Street 4,241 Nordic Capital £135

Q3-19 32 Duke Street 18,331 Triton Investment £120

Q3-19 5 St James’s Square 2,500 Lawrence Stroll £200

Q3-19 The Smithson Plaza 3,601 Lee Overlay Partners £178

Q2-19 60 St James’s Street 4,771 Undisclosed £125

Q1-19 20 St James’s Street 5,259 EIG Partners £113

Q3-18 25 St James’s Street 3,630 Adrian Lee £178

The West End’s commercial property market maintains an enduring global appeal, with investors attracted by its natural strengths including a transparent legal system, linguistic advantages, central time zone and exceptional transport connectivity.

These comparative advantages are now more coveted than ever in the face of global uncertainty, and the resultant ’flight to quality’ has maintained upward pressure on values for prime assets.

For owner occupiers, the opportunity to acquire self-contained, headquarter space is highly coveted for both financial and more practical reasons, and in the case of St James’s freeholds, they hold trophy asset status.

Recent similar and local transactions can be found in the table below:

INVESTMENT MARKET

DATE ADDRESS TENURE SQ FT PRICE NIY PSF

Available 21 St James’s Square FH 61,381 £210.0m 3.26% £3,421

Available 5 St James’s Square FH 16,183 £75.0m 2.83% £4,634

Q3-20 32 Sackville Street FH 7,300 £20.5m VP £2,808

Q3-20 25 Hanover Square FH 13,421 £40.5m 2.87% £3,017

Q3-20 8-9 Stratton Street FH 16,523 £36.0m VP £2,179

Q2-20 Bennett House, 54 St James’s Street FH 3,592 £11.5m 3% £3,202

Q1-20 45 Clarges Street FH 3,992 £11.4m VP £3,319

Q1-20 3 St James’s Place FH 2,608 £8.1m 2.34% £3,117

Q4-19 2 St James’s Place FH 2,506 £8.1m 1.85% £3,232

Q4-19 14 Grosvenor Street LLH 5,489 £14.1m VP £2,546

Q2-19 7 St James’s Square FH 13,092 £47.5m VP £3,628

Q2-18 4 Tenterden Street FH 17,740 £50.6m VP £2,854

The average prime rent on newly developed floors across the St James’s sub-market currently stand at £135 per sq ft


OCCUPATIONAL MARKET

Queen’s House, SW126 27Queen’s House, SW1

FURTHER INFORMATION

EPC

A copy of the EPC is available on request.

PLANNING

The property is not listed however it does sit within the St James’s Conservation area.

VAT

The property is elected for VAT and it is proposed that the sale will be conducted as a Transfer of a Going Concern, subject to retaining the short term tenant.

VIRTUAL TOUR

Access to a Matterport Virtual Tour of the property can be provided on request, or accessed here.

The Automated Tour is launched by selecting the play icon in the lower left corner of the window.

MARKETING DATAROOM

Further technical, planning and legal information relating to the property is available on a secure data room, accessible on request.

PROPOSAL

Offers are invited in excess of £35,000,000 (Thirty-Five Million Pounds), subject to contract and exclusive of VAT.

A purchase at this level reflects a capital value of £2,572 per sq ft on the existing NIA & £2,110 per sq ft on the proposed NIA.

CONTACTSFor further information or to arrange an inspection, please contact the following Joint Agents:

Savills, Michael Elliott and their clients give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all neces-sary planning, building regulation or other consents and Savills and Michael Elliott have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. September 2020.

Jonathan O’Regan

+44(0)207 409 8179

[email protected]

Barry Mangan

+44(0)207 409 5915

[email protected]

James Purdon

+44(0)207 409 5920

[email protected]

Mark Shipman

+44(0)207 493 8184

[email protected]

Scott Lister

+44(0)207 529 5704

[email protected]

Peter Ng

+65 6733 3212

[email protected]

www.cube-design.co.uk (Q4584)

https://my.matterport.com/show/?m=pJAmXGBGmG9

Queen’s House...Q3-19 5 St James’s Square 2,500 Lawrence Stroll £200 Q3-19 The Smithson Plaza...

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