ATTRACTIVE M25 REVERSIONARY OFFICE W I T H A LT E R NAT I V E U S E P OT E N T I A L
45
GROSVENOR ROAD ST ALBANS AL1 3AW
G RO SVEN O R ROA D ST ALBANS AL1 3AW
INVESTMENT SUMMARY 45 Grosvenor Road is a modern office building arranged over ground and three upper floors totalling 62,361 sq ft with alternative use potential
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• St Albans is one of the strongest M25 office centres • 45 Grosvenor Road is situated within the principal commercial area within St Albans in close proximity to St Albans mainline railway station • 45 Grosvenor Road is a modern office building arranged over ground and three upper floors totalling 62,361 sq ft
ATTRACTIVE M25 REVERSIONARY OFFICE WITH ALTERNATIVE USE POTENTIAL
• Let in its entirety to Secretary of State for Communities and Local Government until 22nd August 2018 at a current passing rent of £940,000 per annum equating to a low average passing rent of only £15.07 psf overall • The building is currently sub-let in its entirety • Excellent car parking ratio of 1:241 sq ft • Current rental evidence in St Albans stands at £34.50 per sq ft • St Albans has a Grade A vacancy rate of only 2.6%
• Numerous asset management opportunities to increase the rental tone, improve the income profile and/or explore alternative uses (subject to planning) • St Albans is recognised as an attractive commuter town such that demand for housing in the town centre is very strong with capital values achieving £650 psf plus • Freehold • Offers are invited for the freehold interest, subject to contract and exclusive of VAT
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GROSVENOR ROAD ST ALBANS AL1 3AW 10
Biggleswade
Newport Pagnell
Haverhill 9
Royston
14
13
Saffron Walden
10
Letchworth
9
12
Luton
Stevenage
7
10 LUTON
St. Albans
Harrow
2 1
3 HEATHROW
Staines
11
M3
3
11
9
Aldershot Guildford
5
Dorking
8
9
Tunbridge Wells
Havant
Crowborough
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St Albans Abbey
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St Albans City
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St Albans Cathedral & Abbey
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Christopher Place Shopping Centre
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St Albans City Football Club
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Sittingbourne St Albans is readily accessible by rail, via the Thameslink service M2 St Albans City Station to London St Pancras and onward from connections direct to Brighton to the South and Bedford and Luton to the north. The station provides a regular service to M20 London St Pancras with approximately 7 trains per hour and a Ashford fastest journey time of 18 minutes
St Albans has a catchment of 1,400,000 people within a 12 mile radius of the Centre. As a result of the City’s excellent communications and availability of skilled labour, St Albans has become a favoured office location with major employers including Deloitte, PriceWaterhouseCoopers, Premier Foods, Ford Credit and AON. Hastings
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Horsham
5
7
Haywards Heath
1
3
4
6
45 Grosvenor Road is situated within Uckfield the principal commercial area within Lewes St Albans in Brighton close proximity to Hailsham Chichester Littlehampton Hove St Albans mainline railway station Worthing Newhaven A5
sfield
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M26
4
3
Tonbridge
10
Haslemere
2
Sevenoaks
M23 GATWICK
Chatham 3
5
M25 Oxted
6
8
n
2
M20
4
7
Farnham
1
Croydon
9
Leatherhead
Gravesend
2
Swanley
Sutton Epsom
10
Woking
4
oke
Dartford
Kingston upon Thames
1
International airports are easily accessible with Luton 12 miles Sheerness to the north, Stansted approximately 38 miles north east and Heathrow approximately 26 miles to the south west.
Tilbury
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14 13
30 31
Woolwich
Richmond
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M4
LONDON
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4
Basildon
M25 CITY
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6
29
ROA
7
Windsor
Brentwood
28
Romford
1
Uxbridge
Maidenhead
ing
4
LLE
1
Henleyhames
Chigwell
2 M1
NVI
2 M40
5
WAY
3
The City benefits from excellent road links, being strategically located within 5 miles of both Junctions 8 and 9 of the M1 and 6 miles from Junction 3 of the A1(M). Junction 21A of the M25 is located 8 miles to the South. Southend-on-Sea
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25
Enfield
Barnet
4
17 4
M25
24
5
GRA
19 18
5
Chelmsford
7
22
20
Amersham 6
1
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7
Harlow
4
Hatfield A1(M)
8
St Albans is located within the north west quadrant of the M25. It is only 22 miles north west of Central London and 9 miles north east of Watford. Maldon
M11
STAT
Thame
5
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Hemel Hempstead
Welwyn Garden City
6
9
Aylesbury
Bishop's Stortford
Colchester
STANSTED
8
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11
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ATTRACTIVE M25 REVERSIONARY OFFICE WITH ALTERNATIVE USE POTENTIAL
Grosvenor Road
Ziggurat House
23 Beaufort House
4 Victoria Square
St. Albans Rail Station
4 Beaconsfield Road
SITUATION 45 Grosvenor Road is prominently situated in the principal office pitch in St Albans on the corner of Grosvenor Road and London Road. St Albans mainline railway station and St Albans City Centre are both conveniently situated approximately 0.5 miles to the north / north west of the property. 45 Grosvenor Road’s excellent micro location allows for easy multi-modal access to both rail and road. The property’s situation on London Road provides easy access to the A1 (M) via the A414 to the north, the M25 via the A1081 to the east and the M1 via the M10 to the south.
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GROSVENOR ROAD ST ALBANS AL1 3AW
ACCOMMODATION
Ground Floor
The property has been measured in accordance with the new International Property Measurement Standards (IPMS) 1st Edition, May 2015 and the RICS Code of Measuring Practice (6th Edition) and provides the following net internal areas: NIA
IPMS3 Area
Demise
Sq Ft
Sq M
Sq Ft
Sq M
Reception
1,189
110.5
TBC
TBC
Ground
13,809
1,282.9
TBC
TBC
First Floor
21,581
2,005
TBC
TBC
Second Floor
21,483
1,995.9
TBC
TBC
Third Floor TOTAL
4,299
399.4
TBC
TBC
62,361
5,793.7
TBC
TBC
GROSVENOR RD
*Indicative areas. Further details upon request
The property benefits from being configured in two wings allowing for ultimate letting flexibility and multiple occupation 6
ATTRACTIVE M25 REVERSIONARY OFFICE WITH ALTERNATIVE USE POTENTIAL
DESCRIPTION 45 Grosvenor Road was constructed in 1993 and comprises an attractive brick built HQ office building arranged over ground and three upper floors. The property benefits from being configured in two wings allowing for ultimate letting flexibility and multiple occupation. Internally, the property had been finished to a modern specification and benefits from the following: • • • • • • • •
VAV comfort cooling Central heating Fully accessed raised floors Suspended ceilings with recessed lighting 2.7m floor to ceiling height Two 13 person passenger lifts WC accommodation on all floors and shower facilities on first floor Covered bike store
The property benefits from 259 car parking spaces. This provides an excellent parking ratio of 1:241 sq ft.
First / Second Floor
Reception Lightwell
Lightwell
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ON
RD
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GROSVENOR ROAD ST ALBANS AL1 3AW
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TENURE R NE VE OS GR
The property is held freehold.
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Shelter
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20m
1
10m
2
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30m
The Old Station (Childrens Nursery)
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Ordnance Survey © Crown Copyright 2016. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250
This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract. © Crown Copyright. All rights reserved. Licence Number LIG0074.
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Serra House 25
ATTRACTIVE M25 REVERSIONARY OFFICE WITH ALTERNATIVE USE POTENTIAL
TENANCY 45 Grosvenor Road is fully let to the Secretary of State for Communities and Local Government on an FRI lease from 23rd August 1993 and expiring on 22nd August 2018 at a passing rent of £940,000 per annum (£15.07 psf). By way of a separate agreement, there is a further payment from the tenant for £705 per annum, again expiring on 22nd August 2018. The property was previously occupied by the Learning & Skills Council For England, however this organisation closed in March 2010 when the lease was transferred to Secretary of State for Communities and Local Government.
COVENANT INFORMATION Secretary of State for Communities and Local Government does not publish any accounts but is considered an undoubted covenant.
SUB-TENANT INFORMATION The property has been sub-let to 10 tenants over 12 occupational leases. The sub-leases are drafted outside the 1954 Landlord & Tenant Act. Demise
Tenant
Sq ft
Lease Start
Break Date
Lease End
Rent
Part Ground Floor
The National Association for Colitis and Crohn’s Disease
8,682
21/08/2015
-
19/08/2018
£71,626.50
Part Ground Floor
Privatefly Limited
4,500
09/11/2015
-
20/08/2018
£74,250
Part 1st Floor
Lambert Smith Hampton Group Limited
4,290
25/06/2012
24/06/2017 6 months notice
23/06/2018
£70,140
Part 1st Floor
Futuresource Consulting Limited
6,340
14/01/2015
-
19/08/2018
£104,610
Part 1st Floor
Outsourced Professional Administration Limited
7,800
20/10/2014
-
19/09/2018
£128,700
Part 2nd Floor
Sherrards Solicitors LLP
3,115
14/12/2012
23/06/2017
19/08/2018
£49,480
Part 2nd Floor
Williamson Thornton Morton LLP
6,114
20/02/2013
-
19/08/2018
£99,076
Part 2nd Floor
Scott & York Intellectual Property Limited
3,401
24/06/2008
25/12/08 onwards 6 months notice
19/08/2018
£84,880
Part 2nd Floor
Bidwells LLP
2,743
16/12/2013
-
19/08/2018
£41,145
Part 2nd Floor
Netcel Limited
1,625
24/01/2005
25/06/2008 onwards 6 months notice
19/08/2018
£30,780
Part 2nd Floor
Netcel Limited
1,238
27/05/2010
27/11/2011 onwards
19/08/2018
£24,160.50
Part 3rd Floor
Sherrards Solicitors LLP
4,889
14/12/2012
23/06/2017
19/08/2018
£78,244
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GROSVENOR ROAD ST ALBANS AL1 3AW
ASSET MANAGEMENT 45 Grosvenor Road provides a purchaser with numerous opportunities to create additional value and drive investment performance through active management. Opportunities include: - The head tenant is not in occupation. Re-gear with existing sub-tenants on a direct basis to significantly enhance the rental tone and WAULT - Fully re-position and re-let the office to address the limited availability of prime space in the town - Explore redevelopment of the building to alternative uses (subject to planning)
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ATTRACTIVE M25 REVERSIONARY OFFICE WITH ALTERNATIVE USE POTENTIAL
Residential Market
Permitted Development Opportunity
St Albans has been a vibrant and growing market for the past decade, due to its attractive architecture and open spaces which has attracted London buyers looking to benefit from the price differential.
45 Grosvenor Road presents itself with the opportunity to secure Prior Approval (GPDO 2015) for a residential scheme of studio, one and two bedroom apartments. The Government announced within the Housing Bill on 15th October 2015 that office to residential permitted development rights are to be permanently extended and that all current permitted development prior approvals will benefit from having a further three years to be implemented prior to expiry.
The town’s proximity to Central London and excellent transport links have made St Albans a sought after commuter location and popular “Buy to Let” investor location. Additionally St Albans benefits from excellent schools and an extensive retail provision which has attracted first time buyers to the town. Residential market evidence in St Albans suggests that 1 and 2 bedroom flats are highly sought after. We are aware of recent transactions that have achieved between £625 and £660 per sq ft.
Local authorities may be given another opportunity to exempt sites, however Grosvenor Road is not included in any of the proposed areas. JLL has reviewed land use options for 45 Grosvenor Road and are of the view that due to the proximity of the town centre’s amenities and access to St Albans City Station we believe the property is well suited to residential development.
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GROSVENOR ROAD ST ALBANS AL1 3AW
OCCUPATIONAL MARKET OVERVIEW St Albans Office Market
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•
The North West M25 office markets have shown robust performance with strong occupational demand with take up increasing, void periods reducing and rents increasing.
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St Albans constitutes the principal office centres of the North West quadrant of the M25. Other principal centres include Watford and Hemel Hempstead.
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St Albans has an office stock total of approximately 2 million sq ft.
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There is currently very little genuine Grade A available stock in St Albans with a vacancy rate of only 2.6%.
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Prime rents in St Albans currently stand at £34.50 per sq ft, as witnessed by the recent letting at Trident House, Victoria Street to NCFE.
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Prime headline rents in St Albans have increased by 46% over the last 3 years.
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Take up in 2015 was 54% above the 7 year average.
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76% of all take up since 2008 in St Albans has occurred in the town centre.
•
Grade A supply is likely to remain under pressure with no speculative development anticipated in the short term.
•
There has been in excess of 200,000 sq ft of office space removed from the St Albans market through Permitted Development Rights for alternative uses in the last 3 years. The most recent being the 86,000 sq ft Ziggurat, 25 Grosvenor Road.
ATTRACTIVE M25 REVERSIONARY OFFICE WITH ALTERNATIVE USE POTENTIAL
SITE The property extends to approximately 0.95 acres.
CAPITAL ALLOWANCES The vendor will seek to retain the benefit of any unclaimed capital allowances.
VAT The property is elected for VAT and as such VAT will be payable on the purchase price. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
EPC Further information is available upon request.
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GROSVENOR ROAD ST ALBANS AL1 3AW
PROPOSAL We are instructed to seek offers for the freehold interest, subject to contract and exclusive of VAT.
FURTHER INFORMATION For further information or to arrange an inspection, please contact the following: Simon Verrall Direct Line: 020 7087 5393 Mobile: 07815 940 656 Email: simon.verrall@eu.jll.com Tom Fowler-Tutt Direct Line: 020 7399 5034 Mobile: 07834 782 328 Email: tom.fowler-tutt@eu.jll.com James Cobb Direct Line: 020 7087 5552 Mobile: 07812 823 151 Email: james.cobb@eu.jll.com
MISREPRESENTATION ACT 1967 | DISCLAIMER COPYRIGHT Š JONES LANG LASALLE IP, INC. 2016. All rights reserved. Jones Lang LaSalle for themselves and for the vendors of this property whose agents they are give notice that: a) The particulars are set out as general outline only for the guidance of intending purchasers and do not constitute, nor constitute part of, an offer or contract. b) The information contained in this communication has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Neither Jones Lang LaSalle nor any of their employees, directors, advisers and / or representatives shall have any responsibility or liability whatsoever for any loss howsoever arising from any use of or reliance upon this communication or its contents or any further communication relating to the subject matter of this communication or otherwise arising in connection with this communication. The information set out herein is confidential and may be subject to updating, completion, revision, verification and amendment and such information may change materially. c) No person in the employment of Jones Lang LaSalle has any authority to make or give any representation or warranty whatever in relation to the subject matter of this communication. July 2016. Designed and produced by Creativeworld. Tel: 01282 858200.