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36 – 40 Langham Street,
London W1
Prime Mixed Use Central London Freehold
Investment / Refurbishment / Development
Opportunity
Investment Summary
Prominent and unbroken attractive parade of three mixed use properties
on the south side of Langham Street in the heart of London’s fashionable
district of Fitzrovia.
All the properties comprise of office suites of various sizes with two
residential apartments within 38 Langham Street and one within 40
Langham Street.
The properties have been measured by Murphy Asset Services in
accordance with the RICS Code of Measuring Practice (6th Edition) and a
summary of these are provided below:
* Measured on a gross internal basis
The properties are located within the boundaries of Westminster City
Council and the East Marylebone Conservation Area. 38 and 40 Langham
Street are Grade II listed.
Freehold interest.
The properties are multi let on 24 commercial leases and 3 Assured
Shorthold tenancies, producing a total rental income of £298,731.96 per
annum.
Offers in excess of £5,895,000, subject to contract, are sought which
would reflect a net initial yield of 4.79% after deducting the usual
acquisition costs of 5.8%, and a capital value of £550 per sq ft.
Investment Rationale
Freehold.
Mixed use unbroken West End parade.
Attractive and prominent period buildings with good levels of natural
light.
Passing rents reflect an average rental of only £26.77 per sq ft on the
office floors.
Reversionary.
Numerous asset management opportunities including substantial
refurbishment or potential residential conversion of the upper floors,
subject to obtaining the necessary planning consents.
Multi let with opportunities to extend and enhance the income profile.
Suitable for owner occupiers and investors.
Low capital value per sq ft.
Attractive lot size.
Potential to purchase adjoining building at 94 Great Portland Street
under separate negotiation with Hanover Green.
Page 1
USE SQ M SQ FT %
Offices 806.8 8,684 81%
Residential * 188.6 2,030 19%
TOTAL 995.4 10,714 100%
36 – 40 Langham Street, Fitzrovia, London W1
Location and Communications Location
Langham Street is in the heart of London’s West End and forms part of Fitzrovia, one of London’s most vibrant and fashionable districts. The
surrounding area comprises a mix of offices, residential and diverse shopping, restaurant and bar facilities including Market Place just to the
south.
Over recent years Fitzrovia has attracted substantial office occupiers, drawn to the area by improvements in the office stock including 180 Great
Portland Street, 60 Great Portland Street and Wells & More (Mortimer Street). Just to the west is the BBC’s newly constructed Broadcasting
House which has created a new focal point in the area. Other major occupiers include The Engine Group, University of Westminster, Gleeds,
EMAP and Computer Future Solutions.
Fitzrovia also offers a rich and diverse social scene and is renowned for its fusion of modern bars and restaurants with the Mediterranean style
pavement cafes/bistros, Greek tavernas and Asian restaurants. The immediate area benefits from Market Place which has become a centre for
a mixture of independent and chain bars and restaurants. Other bars and restaurants include Villandry on Great Portland Street and Vanilla on
Great Titchfield Street. There are also a number of internationally renowned hotels, such as The Langham Hotel, the Grange Langham Court
Hotel, The Sanderson and The Charlotte Street Hotel, which also offer their own trendsetting bars and restaurants.
Although the area has become a well known office location it also benefits from a colourful residential community which will be further enhanced
with the proposed redevelopment of the Middlesex Hospital site on Mortimer Street.
Communications
Communications are excellent with Oxford Circus (Central, Bakerloo and Victoria lines), Great Portland Street (Circle, Metropolitan and
Hammersmith & City lines) and Goodge Street (Northern line) underground stations within close proximity. The proposed Crossrail station at
Tottenham Court Road station will further enhance the area’s appeal. There are numerous bus routes running along Oxford Street and Portland
Place providing additional access to Euston and Kings Cross mainline railway stations and the national and international rail networks.
Page 2
36 – 40 Langham Street, Fitzrovia, London W1
Location Plans
Page 3
The above plans are for indicative purposes only and are not to scale.
36 – 40 Langham Street, Fitzrovia, London W1
Description
The property is split into three separately accessed buildings
within the same development on Langham Street.
The buildings were originally constructed as terrace houses, in
the latter part of the 18th Century, out of traditional red brick
beneath a slate roof. We understand that the facades were
replaced in the early 1900’s but the original interior features were
retained.
They now provide office accommodation over basement, ground
and four upper floors with differing sizes of suites due to the
period nature of the property together with three 2 bedroom
apartments. The 4th floor flats in 38 and 40 Langham Street have
the benefit of roof terraces with views across the local skyline.
As the main features have been retained, the office space
provides attractive, spacious electrically heated accommodation
with good natural light. Access is via entrances from Langham
Street at ground floor level.
Page 4
36 – 40 Langham Street, Fitzrovia, London W1
Accommodation
The properties have been measured by Murphy Asset Services in accordance with the RICS Code of Measuring Practice (6th Edition) and both
the net internal and gross internal floor areas are provided below.
Page 5
40 Langham Street 36 Langham Street
38 Langham Street
FLOOR USE NET INTERNAL AREA GROSS INTERNAL AREA
SQ M SQ FT SQ M SQ FT
Basement B1 41.4 446 50.6 545
Ground B1 45.8 493 48.4 521
1st B1 38.1 410 40.3 434
2nd B1 37.8 407 39.8 429
3rd B1 36.6 394 39.5 425
4th B1 36.0 388 47.8 515
TOTAL 235.7 2,538 266.4 2,869
FLOOR USE NET INTERNAL AREA GROSS INTERNAL AREA
SQ M SQ FT SQ M SQ FT
Basement B1 90.5 974 111.1 1,196
Ground B1 89.6 964 97.1 1,045
1st B1 56.0 603 59.0 635
2nd B1 41.4 446 58.9 634
3rd * C3 65.4 704 65.4 704
4th * C3 70.5 759 70.5 759
TOTAL 413.4 4,450 462.0 4,973
FLOOR USE NET INTERNAL AREA GROSS INTERNAL AREA
SQ M SQ FT SQ M SQ FT
Basement B1 68.6 738 98.6 1,061
Ground B1 77.0 829 78.6 846
1st B1 49.2 530 50.9 548
2nd B1 46.0 495 47.4 510
3rd B1 52.6 567 53.7 578
4th * C3 52.7 567 61.8 567
TOTAL 346.3 3,726 391.0 4,110
* Residential use (C3) - Gross Internal Areas
The Measured Report by Murphy Asset Services is fully
assignable to the purchaser.
36 – 40 Langham Street, Fitzrovia, London W1
Tenure
Freehold. The property is edged in red on the OS extract below (for the purposes of identification only).
Page 6
36 – 40 Langham Street, Fitzrovia, London W1
Tenancies
The properties are currently multi let on 24 commercial leases and 3 Assured Shorthold Tenancies, producing a total rental income of
£298,731.96 per annum, and are let in accordance with the following tenancy schedules:
40 Langham Street
Page 7
Floor Use Tenant NIA sq m NIA sq ft Lease Details Lease Expiry
(Tenant’s Break)
Rent £pa
(Rent psf) Comments
Lower
Ground Offices
International
Publishing Group 68.6 738
4 year lease from
6th Aug 2010 5th Aug 2014
£12,500
(£16.94)
Inside the L&T Act 1954. Rent deposit of
£3,672.
Ground
Front Offices
Amber Clothing
Company Ltd 42.4 454
1 year lease from
25th March 2008 24th March 2009
£15,500
(£34.14)
Inside the L&T Act 1954. Rent deposit of
£3,750. Tenant holding over. Service charge
cap of £1,600 pax linked to RPI
Ground
Rear Offices
Aquatic Design
Centre Ltd 34.8 375
5 year lease from
20th Aug 2002 19th Aug 2007
£10,950
(£29.20)
Inside the L&T Act 1954. Rent deposit of
£2,737.50 Tenant holding over. Service
charge cap of £2,190 pax linked to RPI.
1st Offices 3D Eyes Corporation
Limited 49.2 530
2 year lease from
25th Feb 2011 24th Feb 2013
£15,000
(£28.30)
Outside the L&T Act 1954. Rent deposit of
£4,500.
2nd Offices Pearlshine Ltd 46.0 495 3 year lease from
25th March 2007 24th March 2010
£14,500
(£29.29) Inside the L&T Act 1954. Tenant holding over.
3rd A Offices Cowboy Films Ltd 26.9 290 3 year lease from
1st Nov 2009 31st Oct 2012
£7,500
(£25.86)
Inside the L&T Act 1954. Rent deposit of
£1,875.
3rd B Offices Cowboy Films Ltd 18.0 194 11 month lease
from 9th Nov 2011 31st Oct 2012
£5,250
(£27.06)
Inside the L&T Act 1954. Rent deposit of
£1,575.
3rd C Offices Cowboy Films Ltd 7.7 83 1 year lease from
14th Sept 2011 31st Oct 2012
£3,250
(£39.16)
Inside the L&T Act 1954. Rent deposit of
£975.
4th Residential AST 52.7 * 567 * AST – 1 year from
11th Sept 2012 10th Sept 2013 £24,699.96
Assured Shorthold Tenancy. Rent deposit of
£2,850. Mutual rolling break option after 6
months (11th March 2013).
TOTAL 346.3 ** 3,726 ** £109,149.96
Notes
* Gross Internal Areas on the 4th floor
** Total floor area includes Gross Internal Areas on the 4th floor
36 – 40 Langham Street, Fitzrovia, London W1
38 Langham Street
Page 8
Floor Use Tenant NIA sq m NIA sq ft Lease Details Lease Expiry
(Tenant’s Break)
Rent £pa
(Rent psf) Comments
Lower
Ground Offices
G Martin
Construction Ltd 90.5 974
5 years lease from
11th April 2012
10th April 2017
(10th April 2014)
£14,000
(£14.37)
Outside the L&T Act 1954. Mutual break
option. Rent deposit of £4,200.
Ground
Right Offices Gallery Vela Ltd 68.7 739
5 year lease from
8th March 2010
7th March 2015
(20th October 2012)
£20,000
(£27.06)
Inside the L&T Act 1954. Rent deposit
of £5,875. Break exercised by the
tenant.
Ground Left Offices Mr A Atiqullah 20.9 225 3 year lease from
21st Oct 2009 20th Oct 2012
£7,000
(£31.11)
Inside the L&T Act 1954. Service
charge cap of £6 per sq ft until 15th
October 2012
1st Offices Psychotherapy UK
Training Ltd 56.0 603
3 year lease from
27th May 2011 26th May 2014
£17,000
(£28.19) Outside the L&T Act 1954. Rent deposit
of £5,100.
2nd Offices Charanjiv Dhawan 41.4 446 3 years from
13th July 2004 12th July 2007
£15,000
(£33.63)
Inside the L&T Act 1954. Rent deposit
of £3,750. Tenant holding over.
3rd Residential AST 65.4 * 704 * AST – 1 year from
11th Aug 2012 16th Aug 2013 £19,500
Assured Shorthold Tenancy. Rent
deposit of £2,010. Mutual rolling break
option after 6 months (11th Feb 2013).
4th Residential AST 70.5 * 759 * AST – 1 year from
11th Aug 2012 10th Aug 2013 £21,840
New Assured Shorthold Tenancy agreed
but not yet completed. Rent deposit of
£2,400. Mutual rolling break option after
6 months (11th Feb 2013).
TOTAL 413.4 ** 4,450 ** £114,340
Notes
* Gross Internal Areas on the 3rd and 4th floors
** Total floor area includes Gross Internal Areas on the 3rd and 4th floors
36 – 40 Langham Street, Fitzrovia, London W1
36 Langham Street
Page 9
Floor Use Tenant NIA sq m NIA sq ft Lease Details Lease Expiry
(Tenant’s Break)
Rent £pa
(Rent psf) Comments
Lower
Ground Offices Feda Mohebbi 41.4 446
3 year lease from
20th Oct 2004 19th Oct 2007
£9,000
(£20.18)
Inside the L&T Act 1954. Tenant is
holding over. Rent deposit of £2,250.
Ground
Front Offices
Zafar Rushdie (t/a
Rushdie Media) 23.1 249
2 years from
6th Oct 2009 5th Oct 2011
£9,000
(£36.14)
Inside the L&T Act 1954. Rent deposit of
£2,250. Service charge cap of £1,495
pax linked to RPI
Ground
Rear Offices
Jan Hendrik
Verstraten 22.7 244
1 year lease from
13th Jan 2004 12th Jan 2005
£6,000
(£24.59)
Inside the L&T Act 1954. Tenant is
holding over. Rent deposit of £1,500.
Service charge cap of £550 pax.
Repairing obligations are subject to a
written Schedule of Condition.
1st Front Offices Artemis Recruitment
Ltd 31.0 334
2 year lease from
25th March 2007 24th March 2009
£9,492
(£28.42)
Inside the L&T Act 1954. Rent deposit
of £2,125. Tenant is holding over.
1st Rear Offices Ciao London Limited 7.1 76 2 year lease from
1st June 2011 31st May 2013
£3,750
(£49.34)
Inside the L&T Act 1954. Rent deposit
of £1,200.
2nd Front
East Offices Mr Robin M Lee-Smith 11.6 125
5 year lease
27th July 2009
26th July 2014
(27th July 2012)
£5,000
(£40.00)
Inside the L&T Act 1954. Rent deposit
of £1,250. Tenant’s only break option.
2nd Front
West Offices If Music Ltd 19.5 210
2 years from
22nd July 2010 21st July 2012
£6,500
(£30.95)
Inside the L&T Act 1954. Rent deposit
of £1,910. Service charge of £2,160 pax
linked to RPI. Tenant holding over.
2nd Rear Offices Summit Trust
Company Ltd 6.7 72
1 year from
17th January 2012 16th January 2013
£3,500
(£48.61)
Inside the L&T Act 1954. Rent deposit
of £900.
3rd Front Offices Kitch and Honey Ltd 30.1 324 3 years from
5th Oct 2010
4th Oct 2013
(4th Oct 2012)
£8,500
(£26.23)
Inside the L&T Act 1954. Rent deposit of
£1,665. Break option exercised by
tenant.
3rd Rear Offices 1st Secretarial Ltd 6.5 70 5 years from
1st Dec 2011
30th Nov 2016
(30th Nov 2014)
£2,500
(£35.71)
Outside the L&T Act 1954. Rent deposit
of £750.
4th Offices Music Management t/a
Finger 36.0 388
3 year lease from
12th March 2012
11th March 2015
(11th March 2014)
£12,000
(£30.93)
Outside the L&T Act 1954. Rent deposit
of £3,600.
TOTAL 235.7 2,538 £75,242
36 – 40 Langham Street, Fitzrovia, London W1
Planning, Residential Opportunity & VAT
Planning
The properties are located within the boundaries of Westminster City Council and are split between the Harley Street and East Marylebone
Conservation Areas. 38 and 40 Langham Street are Grade II listed.
Residential Opportunity
The properties are well suited to a residential conversion subject to obtaining the necessary consents. The Westminster City Council Unitary
Development Plan states that “The City Council will seek to maximise the amount of land or buildings in housing use outside the CAZ and, where
appropriate, within the CAZ” (Policy H3). The Council generally welcomes proposals to convert buildings from office use to housing, subject to
appropriate design.
Brimelow McSweeney Architects have prepared a Feasibility Study for a potential residential conversion, a copy of which can be made available
on request.
VAT
The property has been elected for VAT which will therefore be payable on the purchase price.
Page 10
36 – 40 Langham Street, Fitzrovia, London W1
Capital Allowances, EPC & Proposal
Capital Allowances
For the avoidance of doubt, the benefit of any outstanding capital
allowances shall remain with the vendor.
Energy Performance Certificate (EPC)
Please note that we are currently waiting for the completion of the EPC
and this will be included in the final details.
94 Great Portland Street
The above property is also owned by the Vendor and can be bought by
way of separate negotiation through Hanover Green.
Page 11
Simon Hall
T: 020 3130 6403
M: 07715 323553
Peter Trinder
T: 020 3130 6408
M: 07831 396542
Neil Proctor
T: 020 3130 6406
M: 07711 468893
36 – 40 Langham Street, Fitzrovia, London W1
Proposal
We are instructed to seek offers in excess of £5,895,000 (Five Million, Eight Hundred and Ninety Five Thousand Pounds), subject to
contract and exclusive of VAT, for our client’s freehold interest. A purchase at this level would reflect a net initial yield of 4.79%, after the usual
acquisition costs of 5.8%, and a capital value of £550 per sq ft.
Further Information
For further information or to arrange an inspection of the property, please contact:
Page 12
Hanover Green LLP for themselves and for the vendors or lessor of this property for whom they act, give notice that: i) these particulars are a
general outline only, for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract; ii)
Hanover Green LLP cannot guarantee the accuracy of any description, dimensions, references to condition, necessary permissions for use and
occupation and other details contained herein and prospective purchasers or tenants must not rely on them as statements of fact or
representations and must satisfy themselves as to their accuracy; iii) rents quoted in these particulars maybe subject to VAT in addition; iv)
Hanover Green LLP will not be liable, in negligence or otherwise, for any loss arising from the use of these particulars; and v) the reference to
any plant, machinery, equipment, services, fixtures or fittings at the property shall not constitute a representation (unless otherwise state) as to its
state or condition or that it is capable of fulfilling its intended function. Prospective purchasers/tenants should satisfy themselves as to the fitness
of such items for their requirements. vi) no employee of Hanover Green LLP (and its subsidiaries) has any authority to make or give any
representation or warranty or enter into any contracts whatever in relation to the property.
September 2012
36 – 40 Langham Street, Fitzrovia, London W1
Page 13
FLOOR PLANS (Not to Scale)
36 – 40 Langham Street, Fitzrovia, London W1