INFORMATION MEMORANDUM
FOUR SEASONS HOTEL & PRIVATE residences LONDON AT HERON PLAZA
Four Seasons Hotel & Private Residences, London at Heron Plaza
Heron Plaza.......................................... 6 Investment Opportunity...................... 20 Financial Model................................... 24 Transaction Structure........................... 26 Heron................................................... 27 Four Seasons......................................... 33 Professional Team................................. 34 Next Steps............................................ 35
This document has been prepared by Lazard on behalf of Heron International.
HERON PLAZA
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Executive Summary Four Seasons Hotel & Private Residences London at Heron Plaza, presents a rare opportunity to invest in the development of a global destination and a landmark development in the heart of the City of London. • Heron Plaza will comprise – Four Seasons Hotel London at Heron Plaza – Four Seasons Private Residences London at Heron Plaza – A new public space complemented by a retail offering • Heron Plaza will be a unique asset within a growing and increasingly attractive market – Four Seasons Hotel London at Heron Plaza will be the only branded luxury hotel in the City of London – Four Seasons Private Residences London at Heron Plaza will be the only luxury branded Residences in the City of London • Best in class partners with aligned interests with new investors – Heron is the premier developer in London with significant expertise in the City market – Four Seasons is a world-renowned luxury hotel operator • The project requires an equity investment of circa £200m – Heron and Four Seasons are together providing £50m, or 25% of the equity – Heron is seeking a partner to invest in the remaining 75%, representing a £150m investment • Heron Plaza will deliver attractive returns: – Projected profit of circa £200m over 7 years. – Investor’s equity will be fully repaid in 5 years.
Left An aerial view of Heron Plaza looking south-west.
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Heron Plaza Heron Plaza will be a landmark destination within the heart of the City of London and a significant addition to the City’s architectural landscape, environment and business facilities. Heron Plaza is the second, and concluding, phase of the works initiated by the construction of the adjacent Heron Tower.
• The Heron Plaza will be a 43 storey tower, comprising a multi-use hotel, residential and retail site located on Bishopsgate, in the heart of the City of London – 188 room hotel with swimming pool, spa, gym, and conference and banqueting facilities – 116 Four Seasons Private Residences – a new public space with a retail offering of over 16,000 sq ft
An investment in Heron Plaza represents a rare opportunity to be involved in the development of a truly global destination.
• Four Seasons London Hotel at Heron Plaza will be the first purpose-built luxury hotel constructed in London in 30 years – Four Seasons has signed a management contract to be the operator of the hotel for a period of 99 years with an initial term of 40 years • Four Seasons Private Residences London at Heron Plaza will offer a mix of 1–5 bedroom penthouses and suites – located on the 20th to 41st floors – residents will have privileged access to all of the hotel's services and facilities
Above Looking across the plaza from Bishopsgate towards the Hotel lobby.
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HERON PLAZA
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Heron Tower Heron Tower will set the benchmark for innovation and quality in the City office market. On completion in 2011, Heron Tower will be a world-class office building and the tallest building in the City of London. It will be the number one business address in the financial capital of the world. • A slender glass and stainless steel clad structure of 46 storeys • Building height 230 m (755 ft) • 41,149 m2 (442,928 sq ft) of premium office accommodation on levels 2–37 • A restaurant and sky bar at the top of the building on levels 38–40 • The building has been awarded a BREEAM rating of ‘Excellent’ reflecting the highest standards of environmental sustainability
Top The three story self contained ‘village’ concept within Heron Tower will enable flexible layout with clear and adaptable floorplates, perfect for a world class office.
Right Current Status Far Right Vision for the completed Heron Tower CONFIDENTIAL
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Above Heron Tower’s restaurant and sky bar, with its external terraces, will provide the perfect location to entertain and socialise at 175m.
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HERON PLAZA
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. JO ST HN
D OL
ST R
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HIG
R ED SHO
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AD RO
I TC H
ET RE CLER K
LL
H
ST
Location
E NW
WORSHIP STREET
201 Bishopsgate
Heron Plaza will be situated next to the Heron Tower. Its core City location will cement its position as a landmark destination for business and leisure travellers.
Farringdon
ST
AT E
CA
MO
AX
DI
TC
H
KS
Aldgate
30 St. Mary’s Axe
A RY
BI
AR
ST. M
STR
Lloyds of London
Leadenhall Market
The Willis Building
ET
RCH EC H U
AL
L EA D E N H A LL ST R EE T
E LIM
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AC
F EN
CH
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H RC
ST
RE
D
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HIG
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R EE T
ET
EE T
M
DS
ELL ST
ST R E
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NON
ST R
S
Aldgate East UN
R I ES
CA N
RD
ST
Mansion House
The Royal Exchange
IA M
OR
EE T
BA
I LL
VI C T
LO M
W
QU EEN
TR IA S
G
Mansion House
N
CO R N H I LL
Bank
YA R D
EAD
L E ED
VI
E
SH
OP
BE
EE T E ST R
EE T
TH R
KI N
ET
N E W B RID GE STR EE T
The Bank of England
HO
ST
MANS
RCH
RY
LE
MINO
S T. PAU L ’ S CH U
P O U LT
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SG
Tower 42
GR
St. Paul’s Cathedral
City Thameslink
21
E
P SG HO
ST R AD OL
M OOR
DB
RO
GAT E
OOD
T
WO R M W
EE
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15
I LL
A P S ID
ST
LU D GAT E H
CH E
AT E
R GA TE M OO
B IS
HERON PLAZA
LS
ET
ET
CIA
TRE
LES
ER
MS
TRE
DD
MM
SHA
C ES
Fenchurch Street
Blackfriars H EAP
GR
TRE
EA TT
OW
ET LOW E R
THAM
ES ST R
Tate Modern
Tower Hill ET
EE T
Tower of London Tower Millennium Pier
Londo
Bankside Pier
ST
BY WA R D ST R E
n Bridge
45
ER
P P R OAC H
ES S
R B RIDG E A
AM
ridge
R TH
E A STC
Monument
RIVER THAMES
TOW E
UPPE
South wark B
30
Cannon Street
Millennium Bridge
Blackfriars Bridge
St. Katharine Dock St. Katharine’s Pier
Crossrail The Crossrail network, due to open in 2017, will take passengers from Liverpool Street across central London; west to Maidenhead via Paddington and east to Shenfield via Stratford. This service will include direct trains to Heathrow Airport.
r Br
idg e
London Bridge City Pier
TO O London Bridge Station
Tow e
Stansted Airport Stansted Express from Liverpool Street
GRE
St. Paul’s
VICTORIA EMBANKMENT
Gatwick Airport Gatwick Express from Victoria
OL S
ET
(transit times in minutes)
London City Airport Docklands Light Railway (DLR) from Bank
ON W A LL
RPO
MI
RE
EE T
L IV E
ST
ST R
Finsbury Circus
EX
AT E
Liverpool Street Station
LO N D
PRIN
Eurostar Direct rail links to Paris and Brussels are provided by the Eurostar service from St. Pancras station, easily accessible by underground from Liverpool Street.
WG
LONDON WA LL
A LD ERSGAT E ST R EE T
Liverpool Street Station Liverpool Street station is the City’s transport hub. London Underground services that serve the station are the Central, Circle, Metropolitan, Hammersmith & City lines. Rail services link the City to the eastern counties of England including direct services to Stansted Airport, as well as north-east London, Essex and Hertfordshire.
London airport links Heathrow Airport Heathrow Express from Paddington (Heathrow will also be served by Crossrail from Liverpool Street)
Broadgate
CO
Moorgate
NE
The City is served by 24 mainline and underground rail stations and Heron Plaza is situated a mere 200 metres from Liverpool Street, one of the biggest commuter stations in London, with a direct rail link to Stansted Airport.
Spitalfields Market
Barbican
LE
YS
TR
City Hall
EE
T
KEY RAIL AND UNDERGROUND STATIONS (walking times in minutes)
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Liverpool Street
3
Moorgate
6
Fenchurch Street
7
Bank
8
Cannon Street
9
London Bridge
14
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Existing Site Heron owns the freehold property on which the Heron Plaza will be built. Heron acquired the site in January 2001.
bishopsgate
REET O UT
WICH STRE E
T
H OU N DSDITCH
CAMOMILE ST
HERON TOWER
Stone House
142 – 150 BISHOPSgate
Staple Hall 1 – 17 Devonshire Row
DESCRIPTION • The site is located in the City’s commercial core, adjacent to Liverpool Street Station and benefits from frontage onto one of the City’s key thoroughfares, Bishopsgate • The site’s southern edge fronts Houndsditch – a space which is to be re-landscaped as part of the Heron Tower project.
• Vacant possession of the entire site will occur by March 2011, once the remaining leases have expired • The site consists of 5 existing buildings – Stone House – Staple Hall – 142 – 150 Bishopsgate – 1 – 17 Devonshire Row – 1, 3 – 5 Stone House Court
Left The Royal Exchange, City of London
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HERON PLAZA
Layout of the Scheme
15
SECTIONING OF BUILDING
SCHEDULE OF THE AREAS Building
Use
Net internal floor area (m2)
Net internal floor area (sq ft)
Heron Tower
Offices
41,149
442,928
Retail, food, beverages
2,025
21,769
Hotel Bedrooms
10,160
109,361
Private Residences
13,280
142,944
Food & Beverage
525
5,651
Spa & Fitness
1,156
12,443
Conferencing
440
4,736
Banqueting
768
8,266
Other
2, 419
26,037
Plaza
Public Space
1.106
11,904
Devonshire Row
Retail
954
10,268
Food & Beverage
448
4,822
Hotel Back of House
1,438
15,478
Four Seasons Hotel and Private Residences
HERON PLAZA
Floor Use 41 Plant 40 Plant 39 Private Residences 38 Private Residences 37 Private Residences 36 Private Residences 35 Private Residences 34 Private Residences 33 Private Residences 32 Private Residences 31 Private Residences 30 Private Residences 29 Private Residences 28 Private Residences 27 Private Residences 26 Private Residences 25 Private Residences 24 Private Residences 23 Private Residences 22 Private Residences 21 Private Residences 20 Private Residences
Floor Use
MASTERPLAN OF DEVELOPMENT Bishopsgate Devonshire Row
H ou nd sd itch
Heron Tower
Landscaped plaza
Devonshire Row PLANT
et
Retail Arcade
Camomile Stre
FOUR SEASONS Hotel and Private Residences at Heron Plaza
Floor Use SPA 4 Restaurant 3 Bar & Hotel Administration SPA 2 Hotel Administration MAIN KITCHEN 1 Retail and Hotel Back of House FRONT OFFICE G Retail and Hotel staff entrance LOADING BAY B1 Retail and Hotel Back of House PLANT
PLANT
O utw
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ich St
19 18 17 16 15 14 13 12 11 10 9 8 7 6 5
Presidential Suite Hotel Bedrooms Hotel Bedrooms Hotel Bedrooms Hotel Bedrooms Hotel Bedrooms Hotel Bedrooms Hotel Bedrooms Hotel Bedrooms Hotel Bedrooms Hotel Bedrooms Hotel Bedrooms Hotel Bedrooms Hotel Bedrooms Hotel Bedrooms
MEETING
4
POOL/GYM
3 Swimming Pool/Gym
RESTAURANT
LOBBY CAFÉ
2 Spa 1
Main Restaurant
G
Reception & Lobby Café bar
STORE PLANT HOUSE KEEPING BANQUETING KITCHEN PLANT
Meeting room
B2 MAIN BALLROOM
B3 B4
reet
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Four Seasons Hotel London at Heron Plaza – Specification
Four Seasons Private Residences London at Heron Plaza – Residential Specification
In addition to the hotel rooms, meeting rooms and banqueting facilities, the hotel will include a spa, gym and pool over two levels and 1,120 sqm of public space.
The 116 Private Residences are located between the 20th and 41st floors
SCHEDULE OF AREAS – PUBLIC FACILITIES
COMMENT Bars & Restaurants The foyer will contain a fully serviced bar and lobby café, and will be connected to the main hotel restaurant via a grand staircase Ballroom The lavish 509 sqm ballroom is located at lower ground floor level and will undoubtedly play host to London’s most prestigious functions Business Centre The 4th floor will feature a state-of-the-art conference venue with views over the Plaza and the City Fitness & Spa The 2nd and 3rd floors will include a fully equipped gym, spa, pool and relaxation areas
Facility
Capacity
Net internal Floor floor area (m2))
Ballroom Pre-function
300
300
B3
Main ballroom
336
509
B3
Lobby café/bar
98
257
G
Three-meal restaurant
104
268
1
Devonshire Row bar
60
218
3
Devonshire Row
54
192
4
Bars & Restaurants
Business Centre Meeting rooms
112
300
4
Business centre
4
60
4
Spa treatment
–
686
2&3
Cardio & weights
60
433
3
Swimming pool
35
175
3
Fitness & Spa
hotel rooms breakdown Guest Rooms
No. of rooms
Approx area (m2)
King Room
117
46
Double Room
15
46-59
Large King/Double
12
65
Four Seasons Suite
28
65
One-Bed Suite
14
89
Two-Bed Suite
1
213
Presidential Suite
1
309
Total
188
833
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INDICATIVE 1-BED SPECIFICATION
OVERVIEW OF PRIVATE RESIDENCES
Each one bedroom apartment will have a double bedroom with built-in wardrobe and en-suite bathroom, separate powder room, storage cupboard, reception room and open plan kitchen
The 116 private residences are provided over the 20th floor to the 41st floor, with the 20th floor being a "half floor" at the tower's north and east quadrants. Below is a summary on the residential unit mix
• Luxurious living standards – apartments will have high quality natural stone or wood flooring in all circulation areas and reception room with natural stone bathroom floors and high quality carpeting in the bedroom – entrance and internal doors will be 2,400mm x 1,000mm flush finish in hardwood veneer, and the bedroom will have a fully-fitted hardwood walk-in wardrobe – custom designed kitchen will include a Balthaup stone work top and Miele stainless steel appliances and compartmented recycling bin – en-suite bathrooms will have a Villeroy and Boch inset bath and separate shower, Dormbracht sanitary fittings, glass heated towel rail or heated wall and electrically heated polished stone floorings
Type
Net Internal Quantity Floor Area (m2)
% Total
One-Bed
58-65
29
25.0%
One-Bed Large
83
10
8.6%
Two-Bed Medium
94-114
22
19.0%
Two-Bed Large
119-130
34
29.3%
Two-Bed Duplex
133-139
2
1.7%
Three-Bed Medium
134
2
1.7%
Three-Bed Large
171-180
8
6.9%
Three-Bed Duplex
157-167
2
1.7%
Four-Bed
228
4
3.4%
Four-Bed Duplex
228-263
2
1.7%
Five-Bed
467
1
0.9%
Total
116
• State of the art lifestyle technology – apartments will benefit from a Crestron lighting system, Bose integrated audio system with iPod docking station, electric controlled sheer and black-out blinds and wall mounted plasma TVs with SkyTV in bedroom and reception • High-tech security systems – Siedle biometric fingerprint access system and NACOSS Gold Certified intruder alarm system with signals sent directly to concierge
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HERON PLAZA
Project Timeline 2010
2011
2012
2013
2014
2015
2016
2017
Planning approval Demolition Pre-construction works Construction Receipt of deposits on residential units Completion of sales on residential units Hotel operations Exit
Right View of Heron Plaza from the entrance to Liverpool Street Station, the City’s principal transport hub.
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INVESTMENT OPPORTUNITY HERON PLAZA
HERON PLAZA INVESTMENT OPPORTUNITY
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Investment Opportunity The unique nature of Heron Plaza as both an ultra-luxury hotel and residential destination will make it an iconic attraction to rival some of London’s most well-known buildings and locations. An investment into Heron Plaza represents a rare opportunity to be involved in the development of a truly global destination and important addition to London’s architectural landscape.
Heron Plaza will be a pioneering mixed-use development in the heart of the City of London benefiting from excellent views of London's world renowned skyline.
four seasons HOTEL london at heRon plaza
four seasons PRIVATE residences LONDON at heron plaza
• Four Seasons London at Heron Plaza will be a 5-star luxury hotel in the centre of London’s financial district, one of the world’s main business destinations
• Four Seasons Private Residences London at Heron Plaza will be uniquely positioned in the heart of the City of London, a highly desirable, vibrant and exciting place to live • The City of London has accute housing shortages. The borough has a resident population of 8,000 but a working population of 320,000. The City of London enforces restrictive planning policies which favour office development
• Four Seasons London at Heron Plaza will be the only luxury branded hotel in the City of London • Hotel values in London have historically been amongst the highest in Europe, with sustained upward trend in value and RevPAR growth averging 7% per annum • Four Seasons London will cater to the City's increasing demand for luxury hotels – business travellers will now have the option to stay within walking distance of many of the City's most frequented meeting locations • In addition to its attractiveness for business travellers, Heron Plaza will be uniquely positioned to capitalise on increasing volumes of foreign travellers London continues to be a priority destination for visitors from the Middle East and other locations such as Russia and India
• Heron has proven the investment case for luxury accommodation in the City through its development at ‘The Heron’, in the Barbican • Despite the 2009 economic downturn, London remains one of the most sought after cities for foreign property ownership evidenced by the fact residential prices in Central London are expected to continue to enjoy robust growth over the next 3-5 years, by an average of 5% p.a. • Four Seasons Private Residences London at Heron Plaza will be the most desirable apartments in the City of London • Four Seasons Private Residences London at Heron Plaza will also benefit from their unique positioning as residents will have access to all of the hotel’s facilities including spa, gym, swimming pool and concierge service
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FINANCIAL MODEL HERON PLAZA
HERON PLAZA FINANCIAL MODEL
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London Luxury Hotel Market
London Luxury Residential Market
London's luxury hotels have achieved record levels of performance this year.
Luxury apartments in London have enjoyed continued growth due to the stable purchasing power of the financial services industry and overseas buyers.
• The market has been sustained by continued demand for top quality design and service by discerning business and leisure travellers
• Demand for luxury apartments has remained strong and recent releases of both completed apartments and development sites have been met by significant interest
• Four Seasons is the leading brand in the luxury segment and has a loyal global following • The City of London will continue to be the growth driver of the London economy and the luxury hotels segment will be a beneficiary
• The luxury hotel market proved resilient in 2009 and continues to grow strongly
• Prices remained resilient despite the last economic downturn and the demand and supply imbalance will continue to drive price inflation
• There is a substantial void in the world’s leading financial centre for a luxury branded hotel. Four Seasons London is the only luxury branded hotel in the pipeline and will exploit this opportunity
• Heron has achieved £1,500 psf on individual apartments at its luxury development in the City, ‘The Heron’ and believes that in excess of £2,000 psf is achievable for the Four Seasons Private Residences London at Heron Plaza
LOndon luxury hotels historical REVPAR1
HIStorical growth in prime central london
£ per night
Annual Growth yoy %
Forecast price growth in prime central london
%
30
400
300
10
20
CAGR 7%
8.6% Average
10 0
200
5
-10 100 -20
1990
2010
2009
2008
2007
2006
2005
2004
2003
2002
Source: HVS Jan-Jun averages. 1 Revenue per room available
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0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
-30
0
Source: Knight Frank Prime Central London Index
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2011
2012
2013
2014
Knight Frank Annual % Price Growth Savills Annual house price growth
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FINANCIAL MODEL HERON PLAZA
HERON PLAZA FINANCIAL MODEL
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Business Plan – Key Outputs
Funding Assumptions
Indicative project level outputs, assuming 5% yield on hotel sale and £2,000 psf current residential sales value.
Equity
Debt
• Total project level equity requirement of £195m
• Project will be funded by bank debt at 60% loan-to-cost – £292m debt facility – equity invested upfront before loan drawdown
Residential Proceeds..................................332m Hotel Proceeds..........................................337m Retail Proceeds..........................................12m Selling costs...............................................(9m) Total Proceeds...........................................672m Site cost.....................................................(100m) Construction costs and fees......................(345m) Financing cost...........................................(42m) Development cost......................................(487m) – of which funded from equity..............195m – of which funded from debt.................292m Income from hotel.....................................25m Post completion finance costs...................(17m) Project profit.............................................193m
• Heron as developer will be entitled to a 5% project management fee as well as an incentive as follows – 8% IRR hurdle – 50% payable until catchup, 20% payable thereafter
External 75% Investor Equity invested .........................................146m Profit before Heron promote.....................145m Profit after Heron promote.......................116m Equity IRR................................................15% Equity multiple.........................................1.8x
• Investors' equity will be fully repaid on sale of the residential and the refinancing of the hotel in 2016
• Interest cost of 5.8% (350bp over swap rates) • Project refinanced in March 2016 at 75% LTV – based on assumed asset value of £280m (excluding residential) at the time of refinancing
SOURCES AND USES OF FUNDING – £487M Sources
£m
%
Equity
Key Assumptions
Equity
project timing
residential assumptions
• Construction begins in H1 2012 • Residential units completed in H1 2015 • Hotel opens in H1 2015 and sold in H1 2017
• Residential value today £2,000 psf • Inflation 5% per annum • Sales phased between 2011–2015
195
40%
Uses
£m
%
Marketing
17
7%
Professional fees
58
12%
Finance cost
42
9%
Land
100
18%
Construction
270
54%
Hotel assumptions Bank debt
• Stabilisation in 2017 • Stabilised occupancy of 74% • Stabilised average rate per room per night, £550 • Stabilised net income of £17m per annum • 5% exit yield on stabilisation
BREAKDOWN BY NET INTERNAL AREA Residential 41%
292
487
60%
487
Retail 5%
Hotel 54%
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TRANSACTION STRUCTURE HERON PLAZA
HERON PLAZA HERON
Transaction Structure
Overview of Heron International
Heron Plaza will be held in a newly formed, tax transparent, Jersey Property Unit Trust ("JPUT")
Heron International, based in London, is one of Europe's leading property investment and development companies. Over the last 15 years, Heron shareholders have made a 3.4x multiple on equity invested, and an IRR of 13.3%
CORPORATE STRUCTURE
Heron
Four Seasons
Investor
25%
• Gerald Ronson founded Heron International in 1965 and broadened its shareholder base in 1995 • Over the past 50 years the company has developed more than 156 commercial buildings in over 9 key global cities – Heron has developed more than 1m square meters of commercial and retail property and around 15,000 residential units in the UK, Continental Europe and the US
75%
JPUT Development Management
100%
27
• Today, Heron has an investment portfolio worth over £500m. Its main operations include: – investment and development of prime office buildings – development and operation of a chain of entertainment and lifestyle centres – residential and land development
Management services
Heron Plaza
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HERON HERON PLAZA
Key Members of the Heron Team
Jonathan Goldstein Deputy Chief Executive
Peter Ferrari Managing Director of Property Development
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Andrew Burnie Operations Director
Andrew is Asset Director of Heron. He qualified as a chartered surveyor and has over 30 years’ experience in asset management, having obtained a RICS qualifying diploma in estate management. He has been at Heron for over 25 years and has overall responsibility for the management of all Heron’s investment assets
Lisa Ronson Commercial Director
Gerald is one of the most respected investors and developers in the United Kingdom. Gerald founded Heron, of which he is Chief Executive. He is well regarded for his in-depth knowledge of the property market and his ability to capitalise on market trends and opportunities. Over the years he has developed extensive contacts throughout every level of the real estate industry where he is highly respected as being one of the industry leaders
Lisa joined Heron in 1999 and is the Commercial Director, leading the marketing, branding, public relations, sponsorship and advertising activities for all of Heron’s portfolio. Previously, Lisa spent eight years at BZW Investment Bank in London and New York, specialising in South East Asian equity sales and covering UK, European and US financial institutions
Lionel Zeltser Head of Tax
Jonathan joined Heron in 2007 and is the Deputy Chief Executive. His primary focus is on the corporate and financial activities of Heron. Prior to joining Heron, he spent nine years as Chief Executive of award-winning international law firm Olswang. As a leading corporate finance lawyer at a real estate focused firm, Jonathan was involved in all corporate and debt aspects of the real estate industry, transacting on behalf of many leading property companies and institutions. He is also a nonexecutive director of M&C Saatchi plc
Lionel joined Heron in 1998 as Head of Tax for the worldwide group. He qualified as a chartered accountant with Price Waterhouse in 1986 and for the last 24 years has specialised in all aspects of corporate taxation. He has over 18 years’ extensive experience managing in-house taxation affairs of property companies. Lionel’s additional roles include acting as Company Secretary for the UK Group and being substantially involved in the management of the Group’s variety of corporate and property transactions in the UK and overseas. He is also a trustee of the Heron Pension Scheme
Arrif Ali Senior Financial Analyst
Arrif joined Heron in 2007 and advises the group on key corporate financing and investment decisions. Arrif has over 10 years of experience in financial analysis and has previously held advisory roles at GMAC and Insight Investment. Arrif is a Chartered Financial Analyst (CFA) and graduated from Cass Business School with a 1st class BSc in Economics and Accounting before training at Morgan Stanley within their Investment Banking Division.
Steve Evans Development Director
Steve joined Heron in 2008 and is the Development Director, being responsible for the recently completed Peak project in Victoria, as well as Heron Tower, adjacent to the Heron Plaza site. He is also responsible for the development work done to date on Heron Plaza. Prior to joining Heron, he spent three years as the Director of Development and Delivery at of awardwinning affordable housing provider First Base Ltd, and before that 19 years with Australia’s foremost property company Lend Lease, including time in England and throughout Asia.
Heron employs over 70 experienced property professionals in four countries and is led by Gerald Ronson, a property investor and developer with several years' experience Gerald Ronson Chief Executive
HERON PLAZA HERON
Peter joined Heron in 1995 as Director of Acquisitions and Development and is now Managing Director, Property. Peter leads Heron’s property acquisition and development activities. Peter has over 20 years’ experience in property development and investment and holds a Masters degree in Land Management from Reading University
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HERON HERON PLAZA
HERON PLAZA HERON
31
Selected Heron Developments Over the past 50 years, Heron has developed over 150 buildings comprising one million square meters in 9 major cities
UNDER Construction
COMPLETED - clockwise from top right
• Heron Tower, 110 Bishopsgate, London – 46 storey office building – being developed in partnership with a sovereign wealth fund and private investor – practical completion: February 2011
1 Procession House, 55 Ludgate Hill, London – developed in partnership with the City of London Corporation – let to Goldman Sachs
1
2
6
3
5
4
2 Heron City – retail and leisure development offering cinemas, bowling alleys, health clubs and retail outlets – there are currently four Heron Cities, located in Madrid (2), Valencia & Stockholm
• The Heron, London - below – City of London residential development – being developed in partnership with AREA property partners – practical completion: February 2013
3 60 Queen Victoria Street, London – let to HSBC and Accenture 4 Heron Parc, Lille, France – outdoor retail destination opened in November 2009 – key features include 12 screen cinema screens and several retail units 5 The Peak, London – mixed-use development delivered in November 2009 – 79,000 sq. ft. office space – 20,000 sq. ft. of retail space 6 105 Wigmore Street, Mayfair, London – developed in partnership with Sun Life – let to Mercedes-Benz and Fiat
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TRANSACTION STRUCTURE HERON PLAZA
HERON PLAZA FOUR SEASONS
33
Four Seasons Four Seasons is one of the world's most recognised and respected luxury hotel brands COMPANY OVERVIEW
senior executive team
• Four Seasons is an operator of high end luxury business and leisure hotels and resorts
Isadore Sharp
Founder & Chairman
Kathleen Taylor
President and CEO
• Headquartered in Toronto, Canada
Jim FitzGibbon President Worldwide Hotel Operations
• The portfolio now comprises 82 hotels in 35 countries – present on all continents – 2002 – entry into the growing Chinese market – 2008 – opened the first Four Seasons in India – three further hotels to open by the end of 2010, in addition to the re-opening of Four Seasons Hotel London at Park Lane • The company has an extremely strong brand with a reputation for high quality service – emphasis on uniformity of quality globally
Antoine Corinthios President EMEA Scott Woroch
xecutive Vice President E Worldwide Development
John Davison
FO and Executive Vice President C Residential
Susan Helstab
xecutive Vice President E Marketing
OWNERSHIP
Left A helpful hand at Four Seasons Hotel George V Paris
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• The company was founded in 1960 by Isadore Sharp – in 2007 the company was bought by Bill Gates and Prince Al-Waleed bin Talal of Saudi Arabia for $3.8bn – they now own 95% of the company whilst Isadore Sharp retains a 5% stake
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PROFESSIONAL TEAM HERON PLAZA
HERON PLAZA NEXT STEPS
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The Professional Team
Next Steps
Heron's professional team will consist of the following
Firm equity commitments of circa £150m are sought by the end of 2010
• PLP Architecture – Architect – founded in 2009, PLP Architecture is a Londonbased group of architects and designers – recently recognised as the highest first time entrant to the AJ100 ranking of Britain’s leading 100 architecture practices • DP9 – Planning Advisers – one of the leading expert consultancies in planning, development and regeneration in the UK • Buro Happold – Inclusive Design Consultants – provides engineering consultancy, design, planning, project management and consulting services for all aspects of buildings, infrastructure and the environment • Emmer Pfenninger – Façade Consultants – Specialist Engineering Company offering comprehensive consultancy services for windows, curtain walls and associated external metal cladding and glazed roofing concepts – team consists of 21 Specialist Engineers and Consultants • HVS – Hotel Consultants – consulting and valuation firm with offices in North America, Europe, Asia, South America and the Middle East – staff of more than 150 professionals, and has evaluated tens of thousands of lodging properties of all sizes
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• EC Harris – Cost Consultants – international consultancy firm specialising in planning and executing strategies that optimise the construction, operation, use and ownership of built assets
• Heron intends to secure all of the equity funding required for this project by December 2010 – initial drawdowns will occur in 2011 for demolition, professional and marketing fees (c.£20m) – land payment will occur in 2012 once funding has been secured
• Faber Maunsell – Acoustics Engineer – operates in the fields of building, transportation and environmental engineering consulting
Demolition to begin in H1 2011 with construction timed for H1 2012
• Debt financing will be sought by Heron and Lazard starting in Q1 2011
• Richmond International – Interior Designers (Hotel) – has been designing hotel interiors for 40 years, in over 40 countries • WSP Structures – Structural Engineers – has more than 40 years' experience in the design, contract administration and construction supervision of structural engineering services in the private, corporate and public sectors – projects range from corporate head offices, commercial, industrial, leisure and health related projects as well as civil engineering structures • Foreman Roberts – M&E Engineers – building services consultancy with a series of landmark developments across the UK and overseas – international team with offices in London, Oxford, Manchester, Isle of Man and Dubai
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HERON PLAZA
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