sanctuary buildings brochure 2013
TRANSCRIPT
Sanctuary Buildings //LONDON SW1
FREEHOLD GOVERNMENT LET OFFiCE inVEsTMEnT
Sanctuary Buildings // LONDON SW1
01 investment summary
05 location
10 communications
13 tHe cHanGinG Face oF victoria
17 description
22 accommodation
27 tenure and tenancy
28 asset manaGement initiatives
31 investment market commentary
32 proposal
34 FurtHer inFormation
The opportunity to acquire a substantial freehold office building with secure government income in one of the most rapidly developing areas of the capital. • Landmark headquarters
development of 227,100 sq ft of Grade A office space in a strategic West End location within close proximity to the Houses of Parliament.
• Freehold.• High quality office floor plates of
up to 26,790 sq ft centred around a spectacular atrium and arranged over two basements, lower ground, ground and eight upper floors.
• The building is entirely let to the undoubted covenant of The Secretary of State for the Environment, on a lease expiring September 2017.
• Total passing rent of £10,300,000 per annum which equates to only £45.35 per sq ft overall.
• Excellent asset management opportunities at lease expiry to increase the office floor area, or convert to residential and capitalise on the rising residential values in Victoria.
• Opportunity to benefit from the continued transformation of Victoria’s cityscape with a number of high profile mixed use, office, retail and residential schemes currently under construction.
• Offers are sought, subject to contract, for the freehold interest in Sanctuary Buildings. The freehold interest is held in a Special Purpose Vehicle (‘SPV’). We are seeking offers in excess of £184,000,000, reflecting a Net Initial Yield of 5.50% (assuming acquisition costs of 1.80%), and a capital value per sq ft of £810.
inveStment Summary
Sanctuary Buildings //A significant freehold investment with long term asset management opportunities.
01
BuckinGHam palace
st James’s park
Green park
Hyde park
Westminster catHedral
cardinal place
Westminster aBBey
Houses oF parliament
mayFair
st James’s
Horse Guards parade
Sanctuary BUILDINGS//
Bordered by St James’s Park and
Buckingham Palace to the north, the
squares of Belgravia to the west and the
River Thames to the south and east,
Victoria combines some of the most historic
sites in London, the busiest transport
interchanges and some of the capital’s
most desirable residences.
Victoria’s strategic location, separating
the iconic West End districts of Mayfair,
St James’s, Westminster and Belgravia,
coupled with the area’s excellent transport
links and ongoing transformation of its office,
retail and residential stock has established
Victoria as a thriving West End address.
Victoria has been historically shaped
by its proximity to Westminster and the
Houses of Parliament leading to the area
being dominated by political occupiers.
However, in recent times, thanks to
transformational developments such as
Cardinal Place, Belgrave House and
The Peak, the area has reinvented itself
attracting major corporate occupiers
including Burberry, Jimmy Choo,
Tom Ford and Microsoft.
Victoria is the epicentre of political and symbolic power in london, from the political village of Westminster to the home of royalty at Buckingham Palace.
location
05
Vincent Square
ST PAUL’S
BANK
CITY THAMESLINKSTATION
CANNON STREETSTATION
CHARING CROSSSTATION
LONDON BRIDGESTATION
WATERLOO (EAST) STATION
WATERLOO STATION
EMBANKMENT
SOUTHWARK
VICTORIA EMBANKMENT
VIC
TOR
IA E
MB
AN
KM
ENT
WH
ITEH
ALL
MILLB
AN
K
STRAND
ALDWYCH
KIN
GSW
AY
FLEET STREET
NE
W B
RID
GE
STR
EE
TFA
RR
ING
DO
N S
TRE
ET
QUEEN VICTORIA STREET
CHEAPSIDELUDGATE HILLCORNHILL
SOUTHWARK STREET
BLA
CK
FRIA
RS
RO
AD
BLA
CK
FRIA
RS
BR
IDG
E
WATERLO
O BRID
GE
HUNGERFORD BRIDGE
WESTMINSTER BRIDGE
LAMBETH BRIDGE
SOU
THW
AR
K B
RID
GE
LON
DO
N B
RID
GE
TOW
ER B
RID
GE
FENCHURCH STREET
WESTMINSTER
GREEN PARK
PICCADILLY
MANSION HOUSE
LIVERPOOL STREETSTATION
THE MALL
VICTORIA STREET
LEICESTER SQUARE
COVENT GARDEN
TEMPLE MONUMENT
TOWER HILL
BLACKFRIARS
GR
EA
T SMITH
STRE
ET
ST JAMES’S PARK
WILT
ON STREET
UPPER BELGRAVE STREET
VICTORIA
OXFORD CIRCUS
St Paul’sCathedral
LondonAquarium
BoroughMarket
Towerof
London
Trafalgar Square
Somerset House
Lincoln’s Inn Fields
St James’s ParkGreen Park
Buckingham Palace
LeicesterSquare
St James’s Square
PiccadillyCircus
Royal Courts of Justice
Royal Festival Hall
Queen Elizabeth Hall
HaywardGallery
National Theatre
Imax
London Eye
Tate Modern
The Globe
County Hall
Covent Garden Market
Royal Opera House
Parliament Square
Westminster Abbey
Houses ofParliament
Horse GuardsParade
Bank of EnglandCOVENT
GARDEN
SOHO
ST JAMES’S
THE CITY
SOUTH BANK
RI
VE
R
TH
AM
E S
VICTORIA
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2
3
4
5
6
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9 13
101112
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15
17 18
16
19
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3 SanctuaryBuildings //
OFFicE OccupiERs1. Metropolitan Police2. Boeing3. Global Infrastructure Partners4. John Lewis5. Microsoft6. Development Securities7. 3i8. P&O9. Experian10. Phillips de Pury & Co11. Tom Ford12. Links of London13. Association of the British
Pharmaceutical Industry
14. Rolls Royce15. Channel 4 Television16. Burberry17. The Home Office18. Energy Networks Association19. HM Treasury20. Foreign & Commonwealth Office THEaTREs1. Apollo Victoria Theatre2. Victoria Palace Theatre3. Above The Stag Theatre4. St James Theatre
The appeal of Victoria now extends far
beyond that of office occupiers. The area is a
highly desirable place to live, shop and visit.
Offering a diverse range of local amenities
including luxury hotels, grand theatres,
high-end retail and a selection of fashionable
bars and restaurants, Victoria has established
itself as a vibrant destination well suited to
the needs of 21st century London.
07
New Victoria Station (CGI)
The improvements will include:
• A new underground north ticket hall
at the junction of Bressenden Place
and Victoria Street with an entrance
at street level;
• Enlarging the Victoria line south ticket hall;
• Nine new escalators;
• A new interchange tunnel connecting
the two ticket halls;
• New lifts providing step-free access
between street level, ticket hall and
Victoria line platform levels;
• New lifts providing access between
the Victoria line and District and
Circle line platforms;
• Improved access and new lifts
between the National Rail and
underground platforms.
The construction of the north ticket hall
is due to complete in the summer of 2016,
with the remainder of the improvement
works due for completion in 2018.
Victoria Station, 950 metres to the west
of the property, is one of London’s busiest
transport hubs. In 2010/2011 it transported
73.6 million passengers making it the UK’s
second busiest railway station. Victoria
Station provides quick and direct access
to London’s Gatwick Airport, with trains
departing every 15 minutes. In addition,
the coach terminus is London’s main coach
station and provides access to the majority of
major cities around the UK and Europe.
Westminster, St James’s Park and
Victoria underground stations as well as
Waterloo underground and mainline stations
are all within walking distance providing
access to the Jubilee, Victoria, Northern,
Bakerloo and Circle and District lines.
Westminster underground is the closest
station (approximately 300 metres to the
north) and provides access to the Circle,
District and Jubilee lines.
Victoria is exceptionally well served by public transport and is regarded as one of the most important transport hubs in london
communicationS
Eust
on (1
4 minut
es*)
Liver
pool S
treet
(16
minut
es*)
Canno
n St
reet
(8 m
inut
es*)
Black
friar
s (6
minut
es*)
Waterloo (1 m
inutes*)
Paddington (1
3 m
inutes*)
Green Park(2 minutes*)
WestminsterSt. James’s
Park
King
’s Cro
ss S
t. Pa
ncra
s (16
minu
tes*
)
Victoria (3 minutes*)
Heathrow
airport (35
minutes*
)
Baker S
treet (7 m
inutes*)
via Paddington E
xpress
iMpROViNG cOMMuNicaTiONs
Victoria Station is currently in the
process of being substantially upgraded.
£700 million is being invested into
improving the existing station’s accessibility
and transport infrastructure.
SanctuaryBuildings //
* Travel times from Westminster underground
10 11
DEVELOpMENTs
Victoria’s traditional political heart is being further transformed with a series of place-changing developments bringing extra vitality and variety to the area.
The stylish and sleek nature of the newly
completed developments contrast superbly
with the instantly recognisable period
architecture that Victoria is famous for.
Historic cathedrals, royal parks and famous
theatres are set alongside the award winning
modern architecture of Cardinal Place, The
Peak and the future Land Securities’ schemes
that are emerging from the ground.
Occupiers from all sectors, from finance
and technology to media and fashion, now
prefer Victoria to the more traditional office
locations of Mayfair and St James’s due to
its excellent transport links, unrivalled office
floor plates and more affordable rents.
Over the coming decade much of
Victoria will be further transformed
into something well tuned to the needs
of contemporary London, whilst also
maintaining its unique cultural heritage.
tHe cHanGinG Face oF victoria
E KiNGsGaTE HOusE // 2015
• Demolition started in Spring 2012.
• Lynch Architects designed scheme with full
planning consent to deliver approximately
345,000 sq ft across two buildings. The buildings
will comprise approximately 189,000 sq ft of
Grade ‘A’ offices, 46,000 sq ft of retail, and
100 state of the art residential apartments.
• Practical completion due in 2015.
D caRDiNaL pLacE // 2005
• Landmark trio of buildings designed by
EPR Architects.
• Cardinal Place encompasses 564,300 sq ft
of world class office accommodation
and 96,075 sq ft of retail, leisure and
restaurant space.
• Completed in 2005 and widely recognised
as being the most significant development to
take place in Victoria for decades.
F 62 BucKiNGHaM GaTE // 2013
• Redevelopment commenced in March 2010.
• 12 storey landmark mixed use building offering
approximately 269,000 sq ft of world class
office and retail accommodation.
• Cutting edge and environmentally sensitive
accommodation designed jointly by Pelli Clarke
Pelli Architects and Swanke Hayden Connell.
• Completion anticipated in Q2 2013.
c 123 VicTORia sTREET // 2012
• Comprehensive refurbishment providing a
223,000 sq ft landmark mixed-use office and
retail building.
• Comprising 178,000 sq ft of modern
Grade ‘A’ office space on the upper floors
and 45,000 sq ft of high quality retail space
at street level.
• Jimmy Choo have selected the building as
their global headquarters and have taken
approximately 55,000 sq ft.
B THE pEaK // 2009
• Landmark headquarters office building
completed in Autumn 2009.
• 8 floors of prime office space covering
approximately 77,500 sq ft.
• Joint venture development between Heron
International, Co-operative Insurance Society
and AXA Real Estate Investment Managers.
• Named ‘West End development of the Year’
at the Offices 2010 Awards.
a VicTORia ciRcLE // 2016-2018
• Consented scheme will be home to
approximately 903,000 sq ft of world class
office, retail and residential space across five
buildings, linked by attractive public spaces.
• The masterplan will include over 597,000 sq ft
of Grade A office accommodation,
125,000 sq ft of retail space at ground and first
floors and over 200 new apartments.
i 1-19 VicTORia sTREET //
• This 335,500 sq ft office building let to the
UK Government was purchased by MEC in
December 2012 for £180 million reflecting
a NIY of 4.82%.
• The property was purchased as a long term
redevelopment opportunity.
H NEw scOTLaND YaRD //
• Metropolitan Police are disposing of this 1960s
office building after confirming that they will be
vacating the site.
• Potential to provide a substantial mixed use
development at vacant possession.
G FiVE HOwicK pLacE // 2012
• 227,000 sq ft mixed use scheme.
• Joint Venture between Terrace Hill and
Doughty Hanson and designed by leading
architects Rolfe Judd.
• 144,200 sq ft of high quality Grade ‘A’ office
accommodation over lower ground, ground
and six upper floors.
• 23 luxury private residential apartments in
addition to 10 affordable apartments.
a
i
B
c
D
H
E
F
G
Sanctuary BUILDINGS//
Photograph - kind permission of Land Securities
13
Sanctuary Buildings is an impressive triple-
fronted office building developed to an
exceptional standard in 1991. The property
was partly constructed behind a retained
façade with elements of the original building
‘Park House’ being incorporated into the
current property.
The property provides approximately
227,100 sq ft of office and ancillary
accommodation arranged over 12 floors,
comprising of two basements, lower ground,
ground and eight upper floors.
The main office entrance is located on
Great Smith Street and leads to a double
height reception and a spectacular central
glazed atrium, which provides excellent levels
of natural light throughout the building.
The large open plan floor plates of
up to 26,790 sq ft are arranged around the
central atrium and provide highly desired
flexibility, generally unobtainable in other,
more traditional West End office locations.
Each floor is served by a bank of six
passenger lifts as well as two scenic passenger
lifts and two fireman / goods lifts.
deScription
Sanctuary Buildings //large floorplates arranged around a spectacular glazed atrium.
17
The building has been exceptionally
well maintained and was extensively
refurbished in 2009 by the Secretary
of State. The refurbishment completely
transformed the lower ground floor by
opening up the ground floor slab to increase
natural daylight and to provide a grand
staircase with access to the lower ground
and basement floors.
As part of these works, the tenant
installed new meeting room suites, break-out
areas, a staff canteen and gymnasium.
The property provides 28 car parking
spaces at basement level which are accessed
from St Ann’s Street via two car lifts.
THE pROpERTY pROViDEs GRaDE a OFFicE spacE TO THE FOLLOwiNG spEciFicaTiON:
• Four pipe fan coil air-conditioning.
• Clear floor to ceiling heights of up to
2.6 metres.
• Fully accessible 100 mm raised access floors.
• Suspended ceiling with void of c. 350 mm.
• Full height glazing to the atrium.
• Double glazed external windows.
• Male and female WCs on each floor.
• Substantial lift provision of:
• 6 x 21 person lifts accessing ground and all
upper floors, two of which serve basement 1
and two of which serve basement 2.
• 2 x 24 person scenic lifts overlooking the
atrium serving ground to eighth floors.
• 1 x 40 person fireman /goods lift
serving all floors.
• 1 x 10 person fireman /passenger
lift serving basement 2 to seventh floor.
19
15.5
1m
14.85m
7.6
4m
19.43m
49
.78
m
13.72m
VOID
VOID
SERVICE YARD
RECEPTION
ABBEY ORCHARD STREET
GR
EA
T S
MIT
H S
TR
EE
T
Office (NLA) Reception
VOID
AC
CESS
4.7
9m
66
.83m
19.43m
46.59m
37.42m
13.37m
11.7
5m
16.32m
10.7
0m
66
.88
m
27.02m
VOID VOID
ACCESS
8.0
m
9.10m
25.25m
50.9
9m
14.50m
15.36m
18.56
m
Ground Floor1,746 sq m | 18,799 sq ft
accommodation
The property provides the following net internal floor areas. The areas are stated in the rent review clause of the occupational lease to the First secretary of state, dated 29th september 1991.
Floor office space (sq ft)
storage space (sq ft)
total Floor space (sq ft)
8th 11,920 – 11,920
7th 14,887 – 14,887
6th 16,782 92 16,874
5th 22,264 49 22,313
4th 22,966 19 22,985
3rd 26,341 19 26,360
2nd 26,771 19 26,790
1st 25,549 – 25,549
Ground 18,799 – 18,799
Lower Ground 18,466 – 18,466
Basement 1 18,039 625 18,664
Basement 2 – 3,493 3,493
total 222,784 4,316 227,100
A separate PCA report is available on request and shows less than a 1% variance, totalling 225,485 sq ft.
First Floor2,374 sq m | 25,549 sq ft
Fourth Floor2,135 sq m | 22,985 sq ft
Eighth Floor1,107 sq m | 11,920 sq ft
22
Church House
23-25
Offices
Offices
Retail
Nursery School
Offices
Offices
epartment O
f BusinessInnovation
AndSkills
35
1-19W
estminsterM
ansions
2-4 Edward Alsop Court
Matthews HouseSaint
C hurch
S t Matthews
GreatPeterStreet
GreatPeterStreet
LittleSm
ithStreet
Great Smith Street
Great Smith Street
Saint Anns Street
SaintAnnsStreet
AbbeyO
rchardStreet
42 Offices
Recreation Site
Offices20
21
4
16a
403638
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House30 Trevelyan
12 Morrison Court
23-25
8m8a
1715
28-32
1h-17h
1g-17g
1f-16f
1d-16d
1b-17b
3a
3
1
18
4347
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TENuRE
The property is held freehold.
TENaNcY
The property is let in its entirety to
The Secretary of State for the Environment
for a term of 26 years from 29th September
1991, expiring 28th September 2017.
The current passing rent of
£10,300,000 per annum was last reviewed
on 25th December 2007 and equates to
£45.35 per sq ft overall.
The lease is drawn on full repairing
and insuring terms and the rent is subject
to an outstanding upward only rent review
from 25th December 2011. There is a further
rent review on 25th December 2015.
tenure and tenancy
Ordnance Survey © Crown Copyright 2013. All rights reserved.
27
Floorpotential office
area (sq m)potential office
area (sq ft)
8th 1,640 17,653
7th 1,891 20,354
6th 1,981 21,323
5th 2,458 26,458
4th 2,492 26,824
3rd 2,778 29,902
2nd 2,743 29,525
1st 2,550 27,448
Ground 1,805 19,429
Lower Ground 2,011 21,646
Basement 1 1,295 13,939
Basement 2 283 3,046
total 23,927 257,547
aSSet manaGement initiativeS
OFFicE
There is the potential to undertake part
atrium infill works to increase the area of
the office floor plates. A scheme has been
drawn up by Rolfe Judd and extends over
the first to eighth floors.
This adds a total of 30,447 sq ft, and
can be achieved without the need to apply
for planning permission as this extension
does not add to the gross external area of
the property. This has been confirmed by
the current owner’s Counsel in a letter, a
copy of which can be provided upon request.
A further scheme has been drawn up
showing the potential to add an additional
storey of 6,501 sq ft, subject to relevant
planning consents.
REsiDENTiaL
Sanctuary Buildings’ position just off the
main shopping thoroughfare of Victoria
Street and minutes from world-renowned
attractions such as Westminster Abbey and
Big Ben, render it perfectly placed for a
future residential scheme. A design has been
drawn up by Rolfe Judd for the conversion
of the existing building to residential use.
The scheme proposes a total of 186,239 sq ft
of net saleable area spread across
191 apartments.
28
VicTORia ciRcLE //
Date February 2012
Purchaser Victoria Circle Partnership (JV between Land Securities and CPPIB)
Purchase Price £163,000,000
Yield Development Site
1-19 VicTORia sTREET //
Date December 2012
Purchaser MEC
Purchase Price £180,500,000 (£538 per sq ft)
Yield 4.80%
ELaND HOusE //
Date January 2012
Purchaser Tishman Speyer
Purchase Price £170,000,000 (£672 per sq ft)
Yield 7.14%
THE pEaK //
Date December 2012
Purchaser Cityhold
Purchase Price £113,000,000 (£1,153 per sq ft)
Yield 5.13%
The Victoria investment market has witnessed a buoyant 12 months with £949 million transacted within the calendar year.
The market has attracted a wide
range of domestic and overseas parties with
investors seeking to capitalise on the future
vision of Victoria.
The investment outlook of Victoria
remains strong as its transformation
continues to attract blue chip tenants and
improve the area aesthetically. Consequently,
well-located, secure income assets will
continue to attract high investment demand.
inveStment market commentary
31
propoSal
Offers are invited for the freehold interest in sanctuary Buildings.
The freehold interest is held in a Special
Purpose Vehicle (“SPV”) which is available
for purchase.
We are seeking offers in excess of
£184,000,000, reflecting a Net Initial Yield of
5.50% (assuming acquisition costs of 1.80%),
and a capital value per sq ft of £810.
32
FurtHer inFormation
DISCLAIMER: Misrepresentation Act 1967 and Declaration. CBRE Limited for itself and for the Vendors as Agent for the Vendors gives notice that: 1. These particulars are set out as a general outline only for guidance to intending Purchasers and do not constitute any part of an offer or contract. 2. Details are given without any responsibility and any intending Purchasers or Third Parties 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 CBRE Limited has any authority to make any representation or warranty whatsoever in relation to this property. 4. Unless otherwise stated, all prices and rents are quoted exclusive of VAT. Subject to Contract. February 2013. Designed and produced by Sutton Young 020 7935 0966 (SYO50503)
pLaNNiNG
The Westminster Planning Authority have confirmed that elements of the retained façades of the property are listed.
The property lies within the Westminster Abbey and Parliament Square Conservation Area and also falls within the
Central Activity Zone as defined in the City of Westminster Unitary Development Plan.
VaT
The property has been elected for VAT.
ENERGY pERFORMaNcE cERTiFicaTEENERGY pERFORMaNcE cERTiFicaTE NON DOMEsTic BuiLDiNG
Sanctuary Buildings
Great Smith Street
London SW1P 3BT
Certificate Reference Number:
9894-3043-0694-0900-8901
ENERGY pERFORMaNcE assET RaTiNG
More energy efficient
A 0–25
26–50
51–75
76–100
101–125
126–150
Over–150
A+
BC
EFG
105
Net zero CO2 emissions
This is how energy e�cient the building is.
More energy e�cient
Less energy e�cientLess energy efficient
This certificate shows the energy rating
of this building. It indicates the energy
efficiency of the building fabric and the
heating, ventilation, cooling and lighting
systems. The rating is compared to two
benchmarks for this type of building:
one appropriate for new buildings and
one appropriate for existing buildings.
There is more advice on how to interpret
this information on the Government’s
website www.communities.gov.uk/epbd.
TEcHNicaL iNFORMaTiON BENcHMaRKs
Main heating fuel:
Building environment:
Total useful floor area (sq m):
Building complexity (NOS level):
Building emission rate (kgCO2/sq m):
Natural Gas
Air Conditioning
29146
4
62.09
Buildings similar to this one could have
rating as follows:
54145
if newly built
if typical of the existing
stock
wEBsiTE
An electronic data room www.sanctuarybuildings.com, is available and contains:
• Occupational lease
• Building survey
• Plowman Craven measured survey
• EPC
• Rolfe Judd office and residential proposals
• Photo library
DaViD GREENT: +44 (0)20 7182 2302 E: [email protected]
JOHN sTaRKiET: +44 (0)20 7182 2582 E: [email protected]
Max sHEpHERD-cROssT: +44 (0)20 7182 3526 E: [email protected]
cONTacTs
For further information please contact:
34