The Opportunity
•
Prominently located on Poland Street moments from
Oxford Circus and the proposed Tottenham Court Road
Crossrail ticket hall in the heart of prime Soho.
•
3 adjoining office and mixed use buildings plus an
additional freehold strip located at the rear of 54–57
Great Marlborough Street totalling 43,938 sq ft with
32 m (106 ft) frontage to Poland Street over a 0.319 acre
(0.129 hectare) site.
•
47 Poland Street, 48 Poland Street and the rear strip are
held freehold with 50 Poland Street held long leasehold
from Westminster City Council
•
Vacant possession save for 1,875 sq ft which is
determinable on 6 months notice
•
Proposed mixed use office led scheme prepared by
Trehearne Architects, provides a new combined building
totalling c. 55,000 sq ft of offices and c. 2,850 sq ft of
A3 restaurant accommodation.
•
The scheme provides for 8 outdoor spaces on multiple
floors totalling 4,953 sq ft (460.5 sq m).
•
Offers in excess of
£45,000,000
for the benefit of 100%
of the issued share capital in our clients SPV reflecting
a capital value of
£1,024
psf on the existing NIA and just
£779
psf on the proposed NIA.
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50
47
48
Gt Marlborough St Poland Street Broadwick Street Oxford Street Hanover Square Berkeley Square Regent Street Piccadilly Golden Square
Green Park Grosvenor Square
Oxford Circus Bond Street
Bond Street
The influx of modern development
and refurbishment of existing buildings
has turned Soho into the current
hub of London’s media world with
multiple advertising agencies, television
companies, radio studios and
post-production companies making the area
their home.
The UK’s creative economy is one of its great national strengths, historically deeply rooted and accounting for around one-tenth of the whole economy. It provides jobs for 2.5 million people and in recent years, this creative workforce has grown four times faster than the workforce as a whole, with Soho at its epicentre.
More recently, corporate and financial occupiers traditionally drawn to St James’s and Mayfair are increasingly viewing Soho as a preferred alternative for their office base. The vast improvement in amenities and appealing working environment attract a younger more dynamic work force which has fuelled demand for further office space. Recent occupiers to move into the area include Telefonica, Och-Ziff, Generation Investment Management and CarVal with other nearby occupiers including Sony, Warner Music, 20th Century Fox, M&C Saatchi and Twitter.
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OFFICE OCCUPIERS 1 Sony 2 M&C Saatchi 3 20th Century Fox 4 Apple 5 BBH 6 Universal 7 Och-Ziff Capital Management 8 Turner Broadcasting 9 Telefonica / Twitter / Generation Investment Management 10 NBC Universal / Google / Mindshare MediaRESTAURANTS & BARS 11 Dean Street Town House 12 HIX 13 Chotto Matte 14 Yauatcha 15 Quo Vadis 16 Bocco Di Lupo 17 Polpo
18 Pollen Street Social 19 Burger And Lobster 20 SAID RETAIL 21 Liberty 22 Apple Store 23 Kingly Court 24 Paul Smith 25 Nigel Hall CULTURE
26 Blain Southern Gallery 27 Soho Theatre
28 Hauser and Wirth
29 The Photographers Gallery 30 Palladium Theatre
HOTELS & FITNESS CLUBS 31 The Courthouse Hotel 32 H2 Health Club 33 The Third Space 34 The Soho Hotel
35 Marshall St Swimming Baths 36 Hotel Café Royal
37 Sanctum Hotel 38 Ham Yard Hotel 39 London Edition Hotel /
Berners Tavern 40 Sanderson Hotel
Soho’s popular bohemian reputation resulted in the name being imitated by other entertainment and restaurant districts around the world, including Soho Hong Kong and Soho New York. Today, Soho has the densest concentration of theatres, restaurants, cafés, private clubs, hotels and bars in central London and truly represents the vibrant, bustling heart of the city.
The area of Soho offers an unrivalled and
unique retail experience
benefitting from a vast mix ofinternational retailers and popular boutique shops located on nearby Oxford Street, Regent Street and Carnaby Street.
Crossrail
Due for completion in 2018, Crossrail will provide a new high speed train service providing thousands of commuters quick access into and across London. This £16 billion infrastructure enhancement is the largest in Europe and will provide London and the south east with a world leading inner-city railway.
The new line will link 37 stations and 2 London airports (Heathrow and City Airports) with journey times reduced by up to half. 200 million passengers are forecast to travel on Crossrail each year resulting in a 10% increase in London’s rail capacity and bringing 1.5 million additional people within 60 minutes reach of the capital’s key business districts.
Both Bond Street & Tottenham Court Road Underground Stations are currently undergoing major transformations to become two of the key hubs of the Crossrail network. The estate will benefit significantly from this with new ticket halls located minutes away at Dean Street and Hanover Square.
At present Tottenham Court Road Station carries over a million passengers per week and once completed the station will have two new ticket halls, with the western ticket hall within 200 metres of Marlborough Yard. Footfall forecasts are set to more than double with commuters being able to travel from Heathrow Airport to Bond Street in just 26 minutes.
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Benefitting from six key underground
stations within a mile, the properties
are extremely well connected providing
unrivalled access across London.
Artist’s impression of ticket halls:
(1) Crossrail Bond Street station at (eastern) Hanover Square and (2) Tottenham Court Road station (eastern).
Station & Lines Distance (miles) Walking (mins)
Oxford Circus
Central, Victoria & Bakerloo 0.3 6
Bond Street
Central & Jubilee, Crossrail (2018) 0.6 14
Tottenham Court Road
Central & Northern, Crossrail (2018) 0.4 9
Leicester Square
Piccadilly & Northern 0.6 13
Piccadilly Circus
Piccadilly & Bakerloo 0.4 15
2 1
BOND STREET OXFORD CIRCUS
PICCADILLY CIRCUS
TOTTENHAM COURT ROAD
LEICESTER SQUARE NORTHERN CENTRAL CENTRAL JUBILEE PICCADILLY BAKERLOO NORTHERN PICCADILLY BAKERLOO VICTORIA CENTRAL Surface line Portal
(tunnel entrance and exit)
Tunnel
KEY
Paddington West
Drayton EalingWest Main LineActon Tottenham Court Road Liverpool Street
Canary Wharf Abbey Wood Custom House Woolwich Heathrow Airport Southall Hayes &
Harlington Hanwell BroadwayEaling StreetBond
Stratford Maryland Manor Park Forrest Gate Ilford Farringdon Whitechapel Farringdon
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48 Poland Street
Constructed c.1928 the property comprises an
office and retail building
arranged over basement, ground and four upperfloors. The building is centrally heated and benefits from an attractive brick façade with large windows and balconies to the rear at third and fourth floor levels.
The offices have been fitted out by its occupiers and offer a mixture of exposed and suspended ceilings, wooden floors, roof lights and outside space.
47 Poland Street
Originally dating from the 1920’s the building was
modified in the 1950’s
to comprise a mid-terrace restaurant and officebuilding arranged over basement, ground and four upper floors. The front elevation is constructed of solid brickwork beneath a slate clad mansard roof incorporating a glazed rooflight to the 4th floor.
The building has been extended to the full site boundary only on ground and first floors providing an opportunity to extend to the rear above. Prior to being “stripped out“ the basement and ground floors were used as a restaurant with the upper floors as offices.
50 Poland Street
Constructed in 1965, the property
comprises a purpose built office
building arranged over part
basement, ground and five upper
floors
incorporating a ground floor retail unit withthe property extending over the entrance to the adjoining Poland Street car park.
The multi-storey car park adjoins the property on both the southern and western flanks. The building is of reinforced concrete frame construction with brick elevations and single glazed tinted metal windows. The front elevation of the property incorporates a feature double height metal frame window at first to second floor levels.
A large central core sits at the centre of the building splitting the accommodation into two sections. The front part of the building is mainly L-shaped and situated around a lightwell over the entrance to the adjoining car park. In addition there is a large open terrace at third floor level. The rear part is rectangular in shape and benefits from excellent natural light from the large windows along the length of the northern elevation and two roof terraces. The property has been stripped back to shell and core condition. The ground floor retail unit and lower ground floor have been sold off on a long lease.
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50 Poland Street
EXISTING NIA FLOOR USE SQ FT SQ M FIFTH OFFICE 2,434 226.1 FOURTH OFFICE 5,687 528.3 THIRD OFFICE 5,680 527.7 SECOND OFFICE 6,229 578.7 FIRST OFFICE 5,323 494.5 GROUND OFFICE 3,767 350.0 BASEMENT STORAGE 314 29.2 TOTAL 29,434 2,734.548 Poland Street
EXISTING NIA FLOOR USE SQ FT SQ M FOURTH OFFICE 710 66.0 THIRD OFFICE 887 82.4 SECOND OFFICE 906 84.2 FIRST OFFICE 901 83.7 GROUND RETAIL 818 76.0 STORAGE 26 2.4 BASEMENT STORAGE 1,031 95.8 TOTAL 5,279 490.5Additional rear site area within
54–57 Great Marlborough St.
EXISTING NIA FLOOR USE SQ FT SQ M SECOND OFFICE 996 89.8 FIRST OFFICE 871 81.0 GROUND OFFICE 1,154 107.2 BASEMENT OFFICE 473 44.0 TOTAL 3,494 322.0Total
EXISTING NIA SQ FT SQ M TOTAL 43,938 4,079.547 Poland Street
EXISTING NIA FLOOR USE SQ FT SQ M FOURTH OFFICE 486 45.2 THIRD OFFICE 531 49.4 SECOND OFFICE 895 83.1 FIRST OFFICES 1,389 128.9 GROUND RESTAURANT 1,599 148.6 BASEMENT RESTAURANT 832 77.3 TOTAL 5,731 532.5Tenancy
47 Poland Street
Vacant Possession
48 Poland Street
50 Poland Street
Vacant Possession
subject to part ground and basement floors being sold off to the Vinyl Factory on a long lease for a term expiring 30th January 2051 at a fixed rent of £2,000 per annum.Te
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Leasehold Freehold Great Marlborough Street
Poland Street
47
Part 54–5748
50
Tenure
47 Poland Street
Freehold
48 Poland Street
Freehold
50 Poland Street
Long Leasehold
Leasehold from the City of Westminster on a 150 year lease from 31st January 2001 (c.137 years unexpired) at a current ground rent of the higher of 10% of open market value or £63,500 per annum with review on a five yearly basis.
Rear of 54–57 Great Marlborough Street
Freehold
FLOOR AREA TENANT LEASE LEASE BREAK RENT PER COMMENT
(SQ FT) START EXPIRY ANNUM (PSF)
FOURTH 710 Vacant
THIRD 887 Tide Mill 20/08/2014 19/08/2014 Rolling on £0.00 Tenant paying s/c and rates
Media Plc 6 months’ only. Notice served, tenant
notice vacating 31/03/2015
SECOND 906 Watkin 28/02/2013 27/02/2018 Rolling on £0.00 Tenant paying s/c and rates
Fuller 6 months’ only. Notice served, tenant
notice vacating 31/03/2015
FIRST 901 Vacant
GROUND & 1,875 Coral 24/06/2012 23/06/2017 Rolling on £47,000 Outside the L&T act.
BASEMENT Estates 6 months’ (£30.66)
Ltd. notice
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Redesigned façade
and a contemporary
new Soho reception
and courtyard…
Unique courtyard space
with the potential for
elevated walkways…
Description
An office led mix-use scheme has been prepared by Trehearne Architects, for the creation of a new courtyard office development in the vibrant heart of Soho.
By reconfiguring four properties, a proposal incorporating c. 55,000 sq ft of net office accommodation to current standards is formed around a new central core and courtyard, plus c. 2,850 sq ft of A3 restaurant accommodation.
New façades have been designed to maximise the potential of natural light to the office floor plates and to re-image the existing dated elevations with larger window openings and panelised cladding.
Full-height glazed curtain walling to the courtyard elevations have been designed to maximise natural light to the
rear office wings and to enhance views out over a new landscaped courtyard.
Internally, exposed concrete soffits and ducted services create a ‘Soho’ aesthetic to the accommodation, whilst a large contemporary reception area and WC facilities will be designed to a high specification.
Bicycle and shower facilities are located at basement level sufficient at least to achieve the targeted BREEAM 2014 ‘Very Good’ rating.
The scheme provides for 8 outdoor spaces on multiple floors totalling 4,953 sq ft (460.5 sq m) and is subject to obtaining all necessary consents.
For a detailed specification, please refer to the password protected Data Room.
Proposed Schedule of Areas
NIA EXISTING NIA PROPOSED GIA PROPOSED
FLOOR SQ FT SQ M SQ FT SQ M SQ FT SQ M SIXTH – – 3,247 301.7 4,245 394.4 FIFTH 2,434 226.1 3,980 369.8 4,976 462.3 FOURTH 6,883 639.5 10,291 956.1 11,517 1,070.0 THIRD 7,089 658.6 10,438 969.7 11,662 1,083.5 SECOND 9,026 838.5 10,373 963.7 11,617 1,079.3 FIRST 8,484 788.2 10,312 958.0 10,620 986.7 GROUND 7,364 684.1 6,223 578.2 9,155 850.5 (RECEPTION) – – (1,125) (104.5) – – RESTAURANT – – 953* 88.6* 953 88.6 BASEMENT STORAGE 2,658 247.0 – – 4,077 378.8 RESTAURANT – – 1,895* 176.0* 1,895 176.0 TOTAL 43,938 4,082.0 57,712 5,361.8 70,717 6,570.1 Notes
These areas have been measured from scaled digital scans of pdf survey information provided by the client.
These areas reflect the design development regarding principally the increased reception area, omission of existing escape stairs and insertion of the atrium.
They are approximate and subject to further design development.
Consequently, at this early stage of the design process, they should not be relied upon. *GIA
Not to scale. For indicative purpose only. *GIA OFFICE COURTYARD OFFICE wc EXISTING RETAIL UNIT NOT PART OF DEMISE A3 RESTAURANT UNIT OFFICE RECEPTION LIFT LIFT LIFT SER VICE ENTRANCE LIFT A3 RESTAURANT UNIT LIFT LIFT PLANT PLANT EXISTING TENANT
NOT PART OF DEMISE
BIN STORE PLANT SHO WERS LOCKERS
Ground
Office: 6,223 sq ft (578.2 sq m)
Restaurant: 953 sq ft (88.6 sq m)*
POLAND STREETBasement
Restaurant: 1,895 sq ft (176.0 sq m)*
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Not to scale. For indicative purpose only.
Second
10,373 sq ft (963.7 sq m)
First
10,312 sq ft (958.0 sq m)
OFFICE OFFICE OFFICE DOUBLE HEIGHT AREA(AT SECOND FLOOR ONLY)
OFFICE OFFICE LIFT LIFT LIFT wc OFFICE OFFICE OFFICE OFFICE LIFT LIFT LIFT wc
Not to scale. For indicative purpose only.
Fourth
10,291sq ft (956.1 sq m)
Third
10,438 sq ft (969.7 sq m)
OFFICE OFFICE OFFICE OFFICE OFFICE wc LIFT LIFT LIFT OFFICE TERRA CE OFFICE OFFICE wc LIFT LIFT LIFT OFFICE TERRA CESixth
3,247 sq ft (301.7 sq m)
Not to scale. For indicative purpose only.
Fifth
3,980 sq ft (369.8 sq m)
OFFICE LIFT LIFT LIFT TERRACE OFFICE OFFICE LIFT LIFT LIFT wc GREEN ROOF TERRACE TERRACE TERRACEOccupational
2014 was an exceptional year for both West End and Central London offices as a whole, with total take-up at the highest level since before the global economic crisis. The year finished very strongly, particularly in Q3 with West End take-up nearly 50% above the long term average. West End vacancy rates for Grade A offices have recorded a steady downward trend over recent years and now stand at sub 4%, leaving occupiers with very limited relocation options. Soho is no exception, where strong demand comfortably outstrips the current supply and with limited development pipeline this is unlikely to change in near future. Marlborough Yard in the heart of Soho, therefore offers investors and developers an exciting opportunity to bring not only c. 55,000 sq ft of stunning media style offices and c. 2,850 sq ft of highly desirable A3 restaurant space to the Soho market, but also to create a new courtyard development that offers exactly the unusual character space that so appeals to both new and traditional Soho occupiers.
It is a combination of this limited supply and the fact that Soho now enjoys more multi business sector appeal than at any time in the last 20 years, that have driven rents to above £90.00 per sq ft for the premium space. With prime rents for new space in the core submarkets of Mayfair and St James’s hitting £130.00 per sq ft and more, the traditional financial and other discerning service sector occupiers are now looking to Soho for better value and more significantly the unique and exciting vibe that comes with working in such a world renowned creative hub.
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ADDRESS AREA TENANT TRANSACTION RENT DATE
(SQ FT) (PSF)
Medius, 2 Sheraton Street, W1 15,225 Grapple Mobile Ltd OML £69.50 Q1, 2014 Air, W1 24,468 Twitter OML £87.50 Q1, 2014 2–3 Golden Square, W1 2,763 M&C Saatchi OML £80.00 Q1, 2014 20 Bentinck Street, W1 21,800 TDR Capital OML £71.00 Q2,2014 Fitzroy Place, W1 144,000 Estée Lauder OML £90.00 Q2, 2014 44–45 Great Marlborough Street, W1 4,200 FT Advisors OML (top two floors) £85.00/£92.50 Q3, 2014 44–45 Great Marlborough Street, W1 2,674 Pearl Property Trust OML £75.00 Q3, 2014 1–2 Stephen Street, W1 28,000 Freud OML £65.00 Q3, 2014 16–18 Beak Street, W1 1,757 Karla Otto Ltd OML £72.50 Q3, 2014 UK House, 2 Great Titchfield Street,W1 3,200 Countrywide OML £80.00 Q4, 2014 1–2 Stephen Street, W1 16,148 Media Sector Under Offer Low £80s Q1, 2015
Example of Recent Occupational Transactions
*The above information has been provided by third parties and is subject to verification. OML = Open Market Letting
Investment
2014 broke previous West End investment records with transaction volumes totalling £8.9bn (surpassing 2013’s record volumes of £8.7bn) as demand continued to outstrip supply on prime assets putting increased downward pressure on yields and driving higher capital values. Prime yields remain at record lows of c.3.25% as the weight of demand for prime stock from domestic and overseas investors seeking positive rental growth forecasts remain strong. London continues to be perceived as a safe haven for overseas investors due to a transparent and competitive investment market, established legal system, political stability and strong growth prospects. Despite this, in 2014 domestic investors remained very active accounting for more than 40% of total volume across over half of all transactions. With continued strong economic performance and further rental growth expected, overseas and domestic investors will continue to target central London. Demand remains extremely strong for value add and development opportunities as the continued loss of office space to residential across the West End, and in particular Soho, has seen rental levels surge with investors vying to secure prime stock.
*The above information has been provided by third parties and is subject to verification.
ADDRESS TENURE AREA PRICE NIY CAPITAL DATE COMMENTS
(SQ FT) VALUE (PSF)
47 Great Marlborough Street FH 8,594 £10.00m 2.69% £1,163 Q1, 2015 Available 40–41 Great Marlborough Street FH 12,398 £20.00m N/A £1,613 Q4, 2014 Available
Vacant possession with
consent for a residential
led scheme
72 Broadwick Street FH 65,316 £67.00m 4.17% £1,026 Q4, 2014 Retail sold off 19 Golden Square FH 5,505 £8.85m 2.11% £1,608 Q4, 2014 Short term income
until May 2015
60 Great Marlborough Street FH 2,751 £4.5m N/A £1,635 Q3, 2014 Short term income 52 Poland Street FH 20,489 £26.00m 2.5% £1,300 Q3, 2014 Short income until
June 2015
33 Golden Square FH 17,198 £23.10m 3.29% £1,343 Q2, 2014 Short term income 42–43 Great Marlborough Street FH 13,589 £13.88m 3.48% £1,021 Q2, 2014 Short term income Jaeger House, 57 Broadwick Street FH 24,909 £30.75m 2.71% £1,234 Q1, 2014 Vacant possession
on 9 months’ notice
Example of Recent Investment Transactions
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EPC & VAT
PROPERTY EPC RATING VAT
47 Poland Street D (84) VAT elected
48 Poland Street C (69) Not VAT elected
50 Poland Street D (90) VAT elected
Data Room
Further information is available upon request.
Proposal
Offers in excess of £45,000,000 for the benefit of 100% of the issued share capital in our clients SPV reflecting a capital value of £1,024 psf on the existing NIA and just £779 psf on the proposed NIA.
Contact
For further information or to arrange an inspection, please contact: Scott Lister D: +44 (0)20 7529 5704 scottlister@michaelelliott.co.uk Mark Shipman D: +44 (0)20 7529 5708 markshipman@michaelelliott.co.uk www.michaelelliott.co.uk www.montagu-evans.co.uk
Misrepresentations Act 1967 & Declaration:
Michael Elliott and Montagu Evans for themselves and for the vendors of this property whose agents they are given 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 Michael Elliott nor Montagu Evans has any authority to make or give any representations or warranty whatever in relation to this property. February 2015
siren | +44 (0)20 7478 8300 | sirendesign.co.uk | S06400 Robert Skioldebrand D: +44 (0)20 7312 7443 robert.skioldebrand@montagu-evans.co.uk Angus Marlow-Thomas D: +44 (0)20 7866 8612 angus.marlow-thomas@montagu-evans.co.uk
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