Draft Running order
Hammersmith Grove
London W6
A 2.3 acre multi-let, majority freehold office in prime
Hammersmith with significant development potential
Contents
01
Executive Summary
02
Location08
03 Transport Links
10
04 Local Occupiers
12
05 Hammersmith – The Focus of Change
14
06 Description16
07 Accommodation18
08 Tenure20
09 Tenancy & Income Analysis
22
10 Tenancy Stacker Diagram
24
11 Tenancy Schedule
26
12 Tenant Covenants
28
13 Hammersmith Occupational Market
32
14 Hammersmith Investment Market
34
15 Asset Management Initiatives
36
16 Potential for Development
38
17 Additional Information
40
26 – 28 Hammersmith Grove
05
26 – 28 Hammersmith Grove
02 – 03
01 Executive Summary
– Majority freehold multi-let mixed use property
comprising 204,561 sq ft
–Landmark 2.3 acre site benefitting from an unusually
low site density of 44% and 100m frontage onto
Hammersmith Grove
– Situated on Hammersmith Grove, Hammersmith’s
pre-eminent office location, benefitting from excellent
amenity and connectivity
– Multi-let to 31 tenants with an exceptionally low
average passing rent of £27.95 per sq ft overall,
compared to prime rents in excess of £50.00 per sq ft
– Total passing rent of £5,698,012 per annum, with a
weighted average unexpired term to lease expiry of
7.23 years and 4.25 years to lease break
– Significant opportunity to increase rental income with
86% of the building by floor area (c.175,000 sq ft)
benefitting from lease events between 2015-2017
– A multitude of asset management opportunities
exist including comprehensive refurbishment, net
area gains following reconfiguration, rent reviews and
lease regears and renewals
– Architectural studies highlight three distinct
development opportunities totalling c.93,500 sq ft
providing a range of uses on site including a selfcontained office/hotel, additional office extension
and incubator suites
– Our client is seeking offers in excess of £118,000,000
for either the freehold and long leasehold interests or
100% of the issued share capital in the UK Limited
Partnership owning the property
– A purchase at this price reflects a low capital value
of £576 per sq ft and a net initial yield of 4.74%
Upon letting the vacant office accommodation and
settlement of the outstanding Agilisys and London
Underground rent reviews the running yield
increases to 5.71%
The above is based upon purchaser’s costs of 1.8%
26 – 28 Hammersmith Grove
04 – 05
“Hammersmith Grove – The pre-eminent
address in Hammersmith”
26 – 28 Hammersmith Grove
06 – 07
02Hammersmith
Location
Situation
Hammersmith is one of London’s foremost commercial and
business districts and is strategically located approximately 3.5
miles to the west of Central London. It is the principal western
gateway into Central London. It benefits from excellent access
to the A4 which links Heathrow International Airport, the world’s
busiest airport, to Central London.
26-28 Hammersmith Grove is situated approximately two
minutes walk to the north of Hammersmith Broadway
and Hammersmith London Underground Station. The
property is adjacent to the prime developments at 10 & 12
Hammersmith Grove.
Hammersmith is the most prominent West London office
location and one of London’s major transport interchanges, with
unrivalled public transport links and roadways.
The London Borough of Hammersmith & Fulham is the fourth
most densely populated area in the UK.
The local amenities and transport links of Hammersmith
Broadway are all within a very short walk of the property.
Immediately to the north of the site is the affluent and
fashionable Brackenbury Village, whilst to the south the
property bounds a blend of prominent offices, retail and
leisure amenities including the Broadway Shopping Centre.
Not to scale
26 – 28 Hammersmith Grove
“Hammersmith – A prime office location with world
class amenities overlooking the River Thames”
08 – 09
03 Transport Links
Road
Underground
Air
Hammersmith’s road network
converges into a gyratory system
which is a key element of West
London’s road infrastructure. 2628 Hammersmith Grove is located
approximately 300m to the north of
this system which feeds directly into
the M4/A4, providing access to the
national motorway network.
Hammersmith is a significant
interchange on the London
Underground network and offers
multi-line provision. It is one of
only eight tube stations served by
four or more underground lines.
26-28 Hammersmith Grove is
positioned a two minute walk north of
Hammersmith Underground station.
Hammersmith benefits from excellent
links to Heathrow International Airport,
located approximately 10 miles to the
west. It can be easily accessed either
by road (M4 motorway) or via the
London Underground (Piccadilly Line)
in just 30 minutes.
Recently, plans to replace the
Hammersmith flyover with an
underground tunnel have been
presented. The proposal, subject to
the necessary consents and findings,
could see a tunnel running beneath
the existing A4 from the Hogarth
roundabout to Earls Court with northsouth links. The proposal seeks to
ease traffic flow and reconnect the
Broadway with the significant river
frontage that Hammersmith enjoys.
The underground lines serving
Hammersmith are the District Line,
Piccadilly Line, Hammersmith & City
Line and Circle Line.
Further details can be viewed at:
www.lbhf.gov.uk/Directory/News/
Hammersmith_flyunder.asp
Train
Bus
Kensington Olympia national rail
station is only 6 minutes by bus and
is also on the London Overground
network providing connections to
Clapham Junction, London Euston,
Richmond, Stratford International and
Watford Junction.
The Hammersmith Broadway bus
station (situated adjacent to the
underground station) is one of the
largest and busiest bus interchanges
in London with 17 bus routes passing
through the main interchange providing
access throughout London. Seven of
the bus routes run 24 hours a day.
National and International rail services
are available from Paddington and
Victoria, via the Hammersmith & City,
District and Circle lines.
26 – 28 Hammersmith Grove
Heathrow International Airport is the
world’s busiest international airport,
which caters for approximately 72
million passengers per year and 1,286
flights each day.
“Well connected – Less than 20 minutes to Heathrow,
Paddington & King’s Cross St Pancras from Hammersmith”
10 – 11
04 Local Occupiers
City of London
Mayfair
Southbank
24
20
26
19
Kensington
29
2
3
13
1
4
6
Brackenbury
Village
26 – 28 Hammersmith Grove
“1,700 businesses within the borough
employing 120,000 people”
Local Occupiers
Amenities
1
2
3
4
14
15
16
17
18
19
20
21
5
6
7
8
9
10
11
12
13
23
Dunnhumby
Cable & Wireless
Halcrow Group
Accor Hotels/Fox Channels/
UKTV/Phillip Morris
Haymarket Magazines
Winton Capital Management
L’Oreal
Disney
GE
Chivas
Betfair
Rapp
Sony Ericsson
Chelsea
Landmarks
Lyric Square
Hammersmith Broadway
Kings Mall
King Street
Hammersmith Apollo
Harrods
Royal Albert Hall
The Queens Club
22
23
24
25
26
27
28
29
Charing Cross Hospital
Battersea Power Station
The Shard
Earls Court Exhibition Centre
Hyde Park
Queens Wharf
Fulham Reach
Kensington Olympia
Fulham
25
21
9
22
11
5
15
7
8
12
28
18
14
16
27
10
A4/M4
17
12 – 13
05 Hammersmith – The Focus of Change
6
3
1
14
No.
13
Property Name
Comment
Owner
Status
1
26-28 Hammersmith Grove
Multi let, majority freehold with extensive asset management and development
opportunities. Low average rent of £27.95 per sq ft.
Hammersmith Grove
Limited Partnership
Completed/Income Producing
2
10 Hammersmith Grove
Landmark development for Hammersmith comprising 115,000 sq ft of new-build office
and ground floor restaurant accommodation. 10 Hammersmith Grove represents
phase 1 of this innovative development and has assisted in redefining the rental tone of
Hammersmith, achieving rents of £50.00 per sq ft.
Aberdeen/
Development
Securities
Completed/Income Producing
3
12 Hammersmith Grove
Phase 2 of the project will deliver 167,000 sq ft of new-build office and retail
accommodation. It is anticipated that rents in the order of £60 per sq ft will be achieved
in the building once available.
Aberdeen/
Development
Securities
Under Construction - Practical
completion due in February 2016
4
The Triangle, 5-17
Hammersmith Grove
Pending consideration for demolition for all existing buildings on site, and redevelopment Romulus
to provide a building of ground and 16 storeys of office accommodation with ancillary
retail and ancillary gallery space.
Planning permission submitted
5
1 Queen Caroline Street
The property was acquired by Brockton in February 2014 and has since undergone
a comprehensive refurbishment. The c.80,000 sq ft property is likely to achieve rents
in excess of £50 per sq ft, setting a new tone for refurbished accommodation in
Hammersmith.
Under Construction - Practical
completion due in June 2015
6
184 Shepherds Bush Road
Dunnhumby, the customer science company, signed a prelet in July 2013, prior to the
Precis Holdings
significant rental growth which has taken place in the interim. This striking, Grade II listed
office extending to 115,000 sq ft was let for a 15 year term at £39.50 per sq ft.
Under Construction - Practical
completion due in Q1 2016
7
West 45, 45 Beadon Road
Planning consent has been granted for 418 new homes with ancillary commercial
space on the site of the current Kings Mall car park and the West 45 office building, in
Glenthorne Road.
Berkeley Group
Under Construction - Practical
completion due in Q1 2016
8
1 Lyric Square
Currently provides 85,415 sq ft of serviced office accommodation with close to a
100% occupancy rate. The property provides a mid-term development opportunity.
Matterhorn Capital
Completed/Income Producing
26 – 28 Hammersmith Grove
Brockton Capital/
Landid
12
15
5
2
10
8
9
4
11
7
No.
Property Name
Comment
Owner
Status
Kings Mall
The 431,316 sq ft shopping centre contains 45 retail units, including Sainsbury’s,
Primark, Mothercare, WH Smith and New Look. It has recently undergone a programme
of comprehensive refurbishment costing approximately £10m.
Matterhorn Capital
Completed/Income Producing
10
SPACEONE
SPACEONE provides high quality modern air-conditioned offices with secure basement
Romulus
garage parking and direct lift access to all floors. Occupiers in SPACEONE include HSBC
Commercial Banking and Royal Jordanian Airlines.
Completed/Income Producing
11
Landmark House &
Thames Tower
The property is currently being marketed for sale with vacant possession achievable in
September 2015. It is likely that a mixed use scheme comprising office and residential
accommodation will be delivered. No planning applications have been submitted for a
new scheme.
GEMS
Development opportunity
currently being marketed
12
77 Fulham Palace Road
The property was recently acquired by AXA in September 2014. A program of
refurbishment and reletting is being undertaken on this 200,000 sq ft office campus
estate.
AXA Real Estate
Vacant possession on c.130,000
sq ft in Q2 2015. Delivery of
refurbished accommodation not
expected until late 2016.
13
Glen House,
22-24 Glenthorne Road
Five floors of office accommodation. The property is a multi-let, modern office in a prime Romulus
location. On expiry of these leases the property represents a significant opportunity for
refurbishment or comprehensive redevelopment.
Completed/Income Producing
14
Grove House,
27 Hammersmith Grove
Five floors of office accommodation covering 62,500 sq ft which is occupied in its
entirety by the hedge fund, Winton Capital.
Threadneedle
Completed/Income Producing
15
Hammersmith Broadway
Shopping Centre
Currently provides 70,000 sq ft of retail accommodation let to over 70 tenants. Anchor
tenants include Tesco, Boots and McDonalds.
EPF
Completed/Income Producing
9
14 – 15
06Description
Overview
26-28 Hammersmith Grove is a landmark 2.3 acre site
benefitting from an exceptionally low site density of 44%
and 100m frontage onto Hammersmith Grove. The property
comprises a prominent majority freehold site in the heart
of Hammersmith. The building consists of two primary and
distinct sections, the East Wing and West Wing. In total the
property provides 204,561 sq ft comprising 184,695 sq ft
of office accommodation, 18,124 sq ft of leisure and cafe
accommodation and 1,010 sq ft of storage accommodation.
The site benefits from significant car parking provisions with
298 parking spaces and a parking ratio of 1:686.
In addition the property benefits from a significant number
of asset management, refurbishment and redevelopment
opportunities. The prospective purchaser is presented with
the opportunity to capture projected rental and capital value
growth whilst delivering additional area gains.
West Wing
East Wing
The West Wing comprises 111,892 sq ft of office, gymnasium
and cafe accommodation over basement, ground and eleven
upper floors and is serviced by four passenger lifts. The office
accommodation has been fully refurbished on a rolling basis,
between 2002 and 2013 thereby providing modern and
efficient accommodation. The property benefits from excellent
natural light with the adjoining buildings on three sides all
being low rise. The ground floor provides an impressive
4,300 sq ft double height fully glazed reception leading
to the two main banks of lifts serving the East and West
Wings. Additionally, the ground floor benefits from a large
independent cafe and coffee shop serving the tenants of the
building and providing a meeting place for collaborative work.
The basement level is primarily occupied by Fitness First as a
16,676 sq ft gymnasium and swimming pool. The remaining
accommodation comprises ancillary uses and storage.
The East Wing comprises modern offices of 89,686 sq ft over
second to sixth floors serviced by six passenger lifts. The
ground and first floors currently form part of the undercroft car
park. The majority of the accommodation with the exception
of the sixth floor has been comprehensively refurbished to
a high specification providing modern, flexible and efficient
accommodation.
Link Block
Car Parking
The link block provides 2,251 sq ft of incubator style suites
at half landing levels and offers open-plan accommodation
benefitting from outstanding natural light and views across
London. Suite sizes range from c.300 sq ft - c.600 sq ft.
The property benefits from 298 car parking spaces at an
impressive ratio of 1:686.
26 – 28 Hammersmith Grove
The sixth floor became fully vacant in December 2014 and is
currently undergoing a comprehensive strip out and concrete
screed removal and will be delivered to a shell and core
specification ready for landlord’s CAT A fit out. The screed
removal will allow for an approximately 2.7m finish to finish,
assuming a suspended ceiling and a full access raised floor.
Prospective purchasers will be able to determine the CAT A
specification post purchase.
“At over 200,000 sq ft, 26-28 Hammersmith Grove is the
largest single office building in Hammersmith”
16 – 17
07Accommodation
Floor
Area Schedule
The property has been measured
by Plowman Craven Associates in
accordance with the RICS Code
of Measuring Practice (6th Edition).
Net and gross internal areas are
detailed in the table opposite.
NIA
sq ft
GIA
sq m
Roof
sq ft
sq m
11,726
1,089.4
11th
West Wing
3,129
290.7
5,082
472.1
10th
West Wing
3,102
288.2
5,077
471.7
9th
West Wing
3,126
290.4
5,072
471.2
8th
West Wing
3,127
290.5
5,071
471.1
Specification
7th
West Wing
9,198
854.5
12,255
1,138.5
The property benefits from the following
specification:
6th
West Wing
8,745
812.5
36,841
3,422.6
40,621
3,773.8
40,491
3,761.7
40,460
3,758.9
Link
– Four pipe fan coil air-conditioning
– Full access raised floor
5th
– Metal tiled suspended ceiling
4th
3rd
–Cafe
Total
27,769
2,579.9
West Wing
11,664
1,083.6
539
50.1
East Wing
17,546
1,630.1
Total
29,749
2,763.8
West Wing
11,733
1,090.0
479
44.5
East Wing
16,642
1,546.1
Total
28,854
2,680.6
West Wing
11,711
1,087.9
324
30.1
East Wing
16,640
1,545.9
Total
28,675
2,663.9
West Wing
11,725
1,089.3
327
30.4
East Wing
19,681
1,828.4
Total
31,733
2,948.1
46,414
4,312.0
23,643
2,196.5
Link
– Gymnasium and swimming pool
– 24 hour security
1,713.3
Link
– Dedicated goods lift
– 298 car parking spaces at a ratio of 1:686 sq ft
54.1
18,442
Link
– Recessed LG7 lighting
– Ten passenger lifts
582
East Wing
2nd
Link
1st
West Wing
9,105
845.9
Ground
West Wing
8,743
812.3
East Wing
1,106
102.8
Total
9,849
915.1
19,279
1,791.1
17,145
1,592.8
28,698
2,666.1
204,561
19,004.5
320,730
29,796.7
Basement
TOTAL
26 – 28 Hammersmith Grove
West Wing
“Offices from 300 sq ft to 18,000 sq ft
offering exceptional flexibility”
6th Floor
Key
27,769 sq ft
Not to Scale
Hammersmith Grove
Ground Floor
Key
9,849 sq ft
Not to Scale
Hammersmith Grove
18 – 19
08Tenure
26-28 Hammersmith Grove is held freehold with a small leasehold element adjacent to the London
Underground rail tracks and a second element between the subject property and 12 Hammersmith
Grove. The Leasehold interest is for a 250 year term from the 22nd November 2000, at a peppercorn
rent from London Underground Limited. Further information is contained within the title summary and
title documents on the data site.
The site comprises three titles as illustrated in the plan below:
Freehold (LN 1334420)
Leasehold (NGL 38943)
Leasehold (BGL 36504)
Key
Freehold title no. LN 134420
Leasehold title no. NGL 38943
Leasehold title no. BGL 36504
For indicative purposes only
26 – 28 Hammersmith Grove
20 – 21
09 Tenancy & Income Analysis
26-28 Hammersmith Grove is multi-let to 21 principle tenants on 28 leases
with additional car parking and storage licences. The property provides a
contracted rent of £5,698,012 per annum, reflecting an exceptionally low
average rent of £27.95 per sq ft.
Key tenants include Shazam, London Underground, United Biosource,
Arkadin, MWB and Fitness First. The tenant mix provides exposure to a diverse
range of sectors including media and telecommunications, pharmaceutical,
construction, banking and finance, public sector and leisure.
Income by Tenant
The weighted average unexpired lease term (WAULT) to expiry
is 7.23 years and to breaks is 4.25 years.
The multi-let nature of the property presents extensive asset
management opportunities with 86% (c.175,000 sq ft) of the
total area benefitting from lease events between 2015-2017.
The charts below provide analysis of the income produced
by the property:
Income by Lease Expiry or Break*
26.31% MWB Business Exchange Centres Ltd
14.35% Shazam Entertainment Ltd
6.94%
Arkadin (UK) Ltd
6.10%
Process Systems Enterprise Ltd
5.94%
London Underground Ltd
5.77%
Agilisys Professional Services Ltd
5.54%
United Biosource Holding (UK) Ltd
5.45%
Rockwool Ltd
4.32%
Medpace UK Ltd
4.22%
Fitness First Clubs Ltd
35.83% 1-3 years
31.76% 4-5 years
27.94% 6-10 years
4.40%
10 years +
15.07%Other
*Based on office, retail and gymnasium rent only
Income by Building
Income by Use
57.69% West Wing
90.96%Office
36.91% East Wing
4.69%Retail/Leisure
4.14%Car parking/Storage/
Antenna & Telecoms
2.56%
Antenna & Telecoms
1.80%
Car parking/Storage
1.26%Link
26 – 28 Hammersmith Grove
22 – 23
10 Tenancy Stacker Diagram
Floor
The adjacent table provides a
spatial reference for the property
and highlights key occupational
information in cross-section.
East Wing
North
Centre
11
10
9
8
7
Vacant
18,442 sq ft
6
5
Process Systems Enterprise
1,918 sq ft
Rent - £51,446 (£26.82 per sq ft)
RR (Feb-19)/Brk (Feb-19)/Exp
(Feb-24)
4
Shazam Entertainment
11,546 sq ft
Rent - £424,800 (£36.79 per sq ft)
Brk (Aug-16)/Exp (Aug-18)
3
Rockwool
9,575 sq ft
Rent - £301,438 (£31.48 per sq ft)
RR (Mar-18)/Brk (Mar-18)/Exp (Mar-23)
2
Shazam Entertainment
5,182 sq ft
Rent - £37,200 (£7.18 per sq ft)
Brk (Aug-16)/Exp (Aug-18) Parking
1
Parking
G
B
26 – 28 Hammersmith Grove
Shazam Entertainment
9,138 sq ft
Rent - £344,592 (£37.71 per sq ft)
Brk (Aug-16)/Exp (Aug-18)
Process Systems Enterprise
8,324 sq ft
Rent - £292,145 (£35.10 per sq ft)
RR (Feb-19)/Brk (Feb-19)/Exp (Feb-24)
London Underground
1,754 sq ft
Rent - £39,222 (£22.36 per sq ft)
RR (Oct-14)/Brk (Oct-19)/Exp (Oct-34)
Link Block
West Wing
South
Dassault Systems
3,129 sq ft
Rent - £100,480 (£32.11 per sq ft)
RR (Nov-16)/Brk (Nov-16)/Exp (Nov-21)
Artelia Projects
3,102 sq ft
Rent - £126,650 (£40.83 per sq ft)
Exp (Jun-16)
ADIB
3,126 sq ft
Rent - £ 127,725 (£40.86 per sq ft)
RR (Jan-19)/Brk (Jan-19)/Exp (Jan-24)
Brand Relations
582 sq ft
Rent - £18,000 (£30.93 per sq ft)
Exp (Dec-15)
United Biosource Holdings
12,400 sq ft
Rent - £315,774 (£25.47 per sq ft)
RR (Aug-15)/Brk (Aug-15)/Exp (Aug-20)
MWB Business Exchange Centres
44,467 sq ft
Rent - £1,487,330 (£31.66 per sq ft)
RR (Mar-16)/Exp (Dec-21)
Riskpoint
539 sq ft
Rent - £27,500 (£51.02 per sq ft)
Exp (Nov-16)
Vacant
479 sq ft
London Underground
10,672 sq ft
Rent - £296,436 (£27.78 per sq ft)
RR (Oct-14)/Brk (Oct-19)/Exp (Oct-34)
MWB Business Exchange Centres (Storage)
468 sq ft
Rent - £12,075 (£25.80 per sq ft)
RR (Mar-16)/Exp (Dec-21)
Irish Cultural Centre
324 sq ft
Rent - £8,420 (£25.99 per sq ft)
Exp (Mar-15)
Arkadin
11,711 sq ft
Rent - £380,250 (£32.47 per sq ft)
RR (Aug-17)/Brk (Aug-18)/Exp (Jul-22)
FD Fast Design
327 sq ft
Rent - £18,000 (£55.05 per sq ft)
Brk (Jan-16)/Exp (Jan-17)
Agilisys
11,725 sq ft
Rent - £328,890 (£28.05 per sq ft)
RR (Mar-14)/Exp (Oct-16)
Huntress
1,004 sq ft
Rent - £36,250 (£36.11 per sq ft)
Exp (Dec-17)
Vacant
1,885 sq ft
Quoting £45.00 per sq ft
Medpace UK
6,216 sq ft
Rent - £246,006 (£39.58 per sq ft)
RR (May-19)/Brk (May-19)/Exp (Apr-24)
Caffe Kix
1,448 sq ft
Rent - £26,662 (£18.41 per sq ft)
RR (Annual RPI)
Brk (Nov-16, Nov-18)/Exp
(Nov-20)
Hammersmith Grove Ltd
Partnership
(Management Office)
719 sq ft
£15,000 (£20.86 per sq ft)
Envision Pharma Ltd
5,941 sq ft
Rent - £159,273 (£26.81 per sq ft)
RR (Aug-15)/Brk (Aug-15)/Exp (Aug-20)
Fitness First Clubs
6,034 sq ft
Rent - £48,129 (£7.98 per sq ft)
Fixed RR (Jul-20, Jun-25)/Exp (Jun-27)
Fitness First Clubs
10,642 sq ft
Rent - £192,404 (£18.08 per sq ft)
Fixed RR (Jun-17, Jun-22)/Exp (Jun-27)
The above plan is indicative and not to scale.
24 – 25
11 Tenancy Schedule
Demise
Use
Tenant
Area
(NIA sq ft)
Rent Per Annum
Rent
(£ per sq ft)
Lease Commencement
11th Floor, West Wing
Office
10th Floor, West Wing
Office
Dassault Systemes UK Ltd
3,129
£100,480
£32.11
14 November 2011
Artelia Projects UK Ltd
3,102
£126,650
£40.83
24 June 2001
9th Floor, West Wing
Office
ADIB (UK) Ltd
3,126
£127,725
£40.86
29 January 2014
8th - 4th Floor, West Wing
Office
MWB Business Exchange Centres Ltd
44,467
£1,487,330
£31.66
17 March 2001
3rd Floor, West Wing
Office
Arkadin (UK) Ltd
11,711
£380,250
£32.47
01 August 2012
2nd Floor, West Wing
Office
Agilisys Professional Services Ltd
11,725
£328,890
£28.05
15 March 2004
Part 1st Floor, West Wing
Office
Huntress Search Ltd
1,004
£36,250
£36.11
21 December 2007
Part 1st Floor
Office
Vacant
1,885
-
-
-
Part 1st Floor, West Wing
Office
Medpace UK Ltd
6,216
£246,006
£39.58
01 May 14
Ground Floor Management Suite,
West Wing
Office
Hammersmith Grove Limited
Partnership
719
£15,000
£20.86
-
Part Ground Floor, West Wing
Cafe
Caffe Kix Ltd
1,448
£26,662
£18.41
18 November 2005
Part Ground Floor, West Wing
Office
Envision Pharma Ltd
5,941
£159,273
£26.81
12 August 2010
Part Basement & Ground Floor,
West Wing
Gym
Fitness First Clubs Ltd
10,642
£192,404
£18.08
24 June 2002
Part Basement & Rear, West Wing
Gym
Fitness First Clubs Ltd
6,034
£48,129
£7.98
21 July 2014
Basement Store, West Wing
Storage
MWB Business Exchange Centres Ltd
468
£12,075
£25.80
03 January 2002
6th Floor, East Wing
Office
Vacant
18,442
-
-
-
Part 5th Floor, (Centre) East Wing
Office
Process Systems Enterprise Ltd
8,324
£292,145
£35.10
18 February 2014
Part 5th Floor, (North) East Wing
Office
Process Systems Enterprise Ltd
1,918
£51,446
£26.82
18 February 2014
Part 5th-4th Floor, East Wing
Office
United Biosource Holding (UK) Ltd
12,400
£315,774
£25.47
12 August 2010
Part 4th Floor, East Wing
Office
Shazam Entertainment Ltd
11,546
£424,800
£36.79
13 August 2013
Part 3rd Floor, East Wing
Office
London Underground Ltd
1,754
£39,222
£22.36
22 October 2009
Part 3rd Floor, East Wing
Office
Rockwool Ltd
9,575
£301,438
£31.48
31 March 2008
Part 3rd -2nd Floor, East Wing
Office
London Underground Ltd
10,672
£296,436
£27.78
22 October 2009
Part 2nd Floor, (Centre) East Wing
Office
Shazam Entertainment Ltd
9,138
£344,592
£37.71
13 August 2013
Part 2nd Floor, (North) East Wing
Office
Shazam Entertainment Ltd
5,182
£37,200
£7.18
13 August 2013
6th floor, Link
Office
Brand Relations Ltd
582
£18,000
£30.93
02 December 2013
5th floor, Link
Office
Riskpoint Ltd
539
£27,500
£51.02
01 December 2014
4th floor, Link
Office
Vacant
479
-
-
-
3rd floor, Link
Office
Irish Cultural Centre
324
£8,420
£25.99
27 March 2013
2nd floor, Link
Office
FD Fast Design UK Ltd
327
£18,000
£55.05
22 January 2014
Roof Antenna & Telecoms
Antenna & Telecoms
Orange Personal
Communications Services Ltd
-
£29,240
-
9 October 2002
Roof Antenna & Telecoms
Antenna & Telecoms
EE Ltd
-
£27,950
-
17 June 2005
Roof Antenna & Telecoms
Antenna & Telecoms
Hutchison 3G UK Ltd
-
£29,009
-
18 October 2002
Roof Antenna & Telecoms
Antenna & Telecoms
Telefonica UK Ltd
-
£25,000
-
09 May 2010
Roof Antenna & Telecoms
Antenna & Telecoms
Vodafone Ltd
-
£34,404
-
24 June 2001
Car Park
Car Parking
Arkadin (UK) Ltd
-
£15,000
-
24 June 2013
Car Park
Car Parking
Rockwool Ltd
-
£9,370
-
31 March 2008
Car Park
Car Parking
Huntress Search Ltd
-
£4,604
-
12 August 2009
Car Park
Car Parking
Shazam Entertainment Ltd
-
£11,339
-
18 December 2009
Car Park
Car Parking
Air New Zealand Ltd
-
£14,000
-
27 April 2014
Car Park
Car Parking
Process Systems
Enterprise Ltd
-
£4,000
-
07 April 2014
Car Park
Car Parking
British Overseas Bank Nominees Ltd
and WGTC Nominees Ltd
-
£14,000
-
31 July 2014
Cycle store
Storage
London Underground Ltd
-
£2,700
-
22 October 2009
Car Park
Storage
Private Individual
-
£2,300
-
01 February 2014
East Wing Storage 3 & 4
Storage
Greater Hammersmith BID
673
£11,000
£16.34
06 October 2014
West Wing Storage 3
Storage
Middleton Green
159
£2,000
£12.58
10 January 2015
Vacant East Wing Storage
(Storage unit 2)
Storage
Vacant
62
-
-
-
Vacant West Wing Storage
(Storage units 2 & 6)
Storage
Vacant
116
-
-
-
Vacant Car Parking Spaces
Car Parking
Vacant
-
-
-
-
TOTAL
203,829*
£5,698,012
£27.95
OVERALL TOTAL BASED ON NIA
204,561
£5,698,012
£27.85
26 – 28 Hammersmith Grove
Rent Review
Lease Break Date
Lease Expiry
Landlord and
Tenant Act
Car Parking
Spaces
14 November 2016
14 November 2016 (T)
13 November 2021
Outside
3
Rent deposit of £30,144 held inclusive of VAT. Tenant must serve not less than twelve months notice prior to the Break Date.
24 June 2011
-
23 June 2016
Inside
4
Tenant surrender due to take effect from May 2015. The tenant will pay a surrender premium equivalent to 50% of the
remaining rent and service charge liability and 100% of rates liability until lease expiry.
29 January 2019
29 January 2019 (T)
28 January 2024
Outside
1
Rent deposit of £50,700 inclusive of VAT and lease guarantee from Abu Dhabi Islamic Bank PJSC. Service charge cap of
£13.51 per sq ft.
25 March 2016
-
25 December 2021
Inside
66
01 August 2017
01 August 2018 (T)
31 July 2022
Outside
5
15 March 2014
-
31 October 2016
Outside
12
-
-
20 December 2017
Outside
-
(Landlord/Tenant/Mutual)
Comments
Outstanding 2011 rent review has been activated. Rental devaluation at £31.66 reflects current passing rate of £1,300 pa
per space.
CPI linked service charge cap at £8.21 per sq ft. Tenant has recently completed a £350,000 refurbishment.
March 2014 rent review currently in arbitration. Service charge cap of £6.82 per sq ft.
-
-
-
-
-
01 May 2019
01 May 2019 (T)
30 April 2024
Outside
2
Rent deposit of £147,603 which is inclusive of VAT. Service charge cap of £12.50 per sq ft.
-
-
-
-
-
Rent is recovered through the service charge.
RPI Linked
18 November 2016 (T)
18 November 2018 (T)
17 November 2020
Outside
12 August 2015
12 August 2015 (T)
11 August 2020
Outside
2
Tenant must serve six months notice prior to the Break Date.
24 June 2017
-
23 June 2027
Inside
-
Fixed rental increases to £217,587 on 24 June 2017 and to £246,294 on 24 June 2022. Rent paid on a monthly basis.
24 June 2020
-
23 June 2027
Inside
-
The Vendor will provide a rental top up to £48,129 per annum until 21 July 2016.
Fixed rental increases to £54,453 on 24 June 2020 and £61,608 on 24 June 2025.
25 March 2016
-
24 December 2021
Inside
-
-
-
-
-
-
18 February 2019
18 February 2019 (T)
17 February 2024
Outside
3
Service charge cap of £12.50 per sq ft expires on 18 February 2015.
18 February 2019
18 February 2019 (T)
17 February 2024
Outside
3
Service charge cap of £12.50 per sq ft expires on 18 February 2015.
12 August 2015
12 August 2015 (T)
11 August 2020
Outside
6
£300,000 rent deposit held inclusive of VAT. Tenant must serve six months notice prior to the Break Date.
-
13 August 2016 (T)
12 August 2018
Outside
3
RPI linked service charge cap of £11.05 per sq ft. Tenant must serve notice on the Landlord not more than twelve and not
less than six months before the Break Date.
22 October 2019
22 October 2019 (T)
22 October 2024 (T)
22 October 2029 (T)
21 October 2034
Inside
5
Outstanding rent review from 22 October 2014. Review is geared at 80% of rent £ per sq ft agreed for 2nd and 3rd floor
London Underground Ltd lease, based on assumed floor areas as stated in the lease (1,751 sq ft).
Rent is reviewed annually to include 2.5% of turnover in excess of £300.000. Restrictive covenant in the lease prohibiting
any other food sales in the buildings. RPI linked service charge cap of £3.25 per sq ft. Tenant must serve not less than nine
months notice prior to the Break Date.
31 March 2018
31 March 2018 (T)
30 March 2023
Inside
3
Lease includes 1,735 sq ft of storage accommodation at £17.50 per sq ft.
22 October 2019
22 October 2019 (T)
22 October 2024 (T)
22 October 2029 (T)
21 October 2034
Inside
5
Outstanding 2014 rent review.
-
13 August 2016 (T)
12 August 2018
Outside
-
The Vendor will provide a rental top up to £344,592 per annum until 13 February 2015. RPI linked service charge cap of
£10.85. Tenant must serve notice on the Landlord not more than twelve and not less than six months before the Break Date.
-
13 August 2016 (T)
12 August 2018
Outside
-
The Vendor will provide a rental top up to £37,200 per annum until 13 February 2015. RPI linked service charge cap of
£11.73. Tenant must serve notice on the Landlord not more than twelve and not less than six months before the Break Date.
-
-
01 December 2015
Outside
-
Rent is inclusive of insurance and service charge.
N/A
-
30 November 2016
Outside
-
Rent deposit of £9,625 held which is inclusive of VAT. The tenant is required to pay an additional amount of £2,000 per
annum as service charge.
-
-
-
-
-
-
-
26 March 2015
Outside
-
Rent is inclusive of insurance and service charge. The vendor has agreed to enter into a rolling three month licence with the
existing tenant, which can be mutually terminated on three month’s notice.
-
21 January 2016 (T)
21 January 2017
Outside
-
Rent deposit of £10,800 inclusive of VAT. Rent is inclusive of insurance and service charge.
-
-
08 October 2017
Outside
-
17 June 2015
17 June 2015 (M)
16 June 2020
Outside
-
18 October 2015
-
17 October 2017
Outside
-
Break notice served.
09 May 2015
-
08 May 2020
Outside
-
-
-
23 June 2016
Outside
-
Annual
Mutual Rolling Break
31 August 2015
-
5
Annual RPI review and monthly rolling break option terminable on 1 month's notice.
Annual
Mutual Rolling Break
30 March 2023
-
4
Annual RPI review and monthly rolling break option terminable on 1 month's notice.
Annual
Mutual Rolling Break
20 December 2017
-
2
Annual RPI review and rolling break option terminable on 3 month's notice.
Annual
-
17 December 2019
-
9
Annual RPI review. This licence will be determined if the Tenant’s leases of the second floor office units are forfeited
or determined.
Mutual Rolling Break
26 April 2015
-
4
Rent deposit of £4,200 held inclusive of VAT. Mutual rolling break on 1 month notice.
-
Mutual Rolling Break
06 April 2015
-
1
Mutual rolling break on 1 month notice.
31 July 2015
Rolling Break
29 February 2016
-
4
Landlord’s development break on 3 months notice. Rent review in accordance with RPI.
22 October 2014
22 October 2019 (T)
22 October 2024 (T)
22 October 2029 (T)
21 October 2034
Outside
-
Notice period of not more than 12 and not less than 6 months before the Break Date.
-
Mutual Rolling Break
31 January 2015
-
-
Mutual rolling break on 2 months notice.
-
Mutual Rolling Break
05 October 2015
-
-
Mutual rolling break on 14 days notice.
Mutual Rolling Break
09 January 2016
-
-
Mutual rolling break on 14 days notice.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
146
298
*N.B. The total area in the tenancy schedule differs from the accommodation schedule due to the exclusion of Site Engineers Office (361 sq ft) and East Wing Storage 2 (371 sq ft). The latter is used for the on-site compators.
26 – 27
12 Tenant Covenants
MWB Business Exchange Centres LTD
Basement Store (Comms Room), 4th – 8th Floor of the West Wing and 1 car space.
Passing rent: £1,499,405 per annum (26.31% of total rent). D&B Rating: N3.
The lease is taken in the name of MWB Business Exchange Centres LTD (registered company number 5512549).
MWB Business Exchange Centres LTD was formed in 2005 and is currently one of the largest service office providers in
the UK, employing 450 staff nationally. It provides flexible serviced offices, meeting rooms & training venues across their
65 centres across the UK. Additional services include: IT packages and virtual office products services, virtual address
and call answering. MWB Business Exchange Centres LTD’s parent company is MWB Business Exchange PLC. The latter
was acquired by Regus PLC in February 2013.
Fiscal
Non-consolidated GBP
31 Dec 2013
Fiscal
Non-consolidated GBP
31 Dec 2012
Fiscal
Non-consolidated GBP
30 Jun 2012
Sales Turnover
95,928,000
47,955,000
95,271,000
Profit/(Loss) Before Taxes
(5,086,000)
(1,597,000)
(4,919,000)
Further information available at: www.mwbex.com
Source: D&B
Shazam Entertainment LTD
2nd Floor Centre, Part 2nd Floor North, 4th Floor North (Office) and 9 car spaces.
Passing rent: £817,931 per annum (14.35% of total rent). D&B Rating: 4A1.
The lease is taken in the name of Shazam Entertainment LTD (registered company number 3571098).
Shazam Entertainment LTD is a computer and data processing services company established in 1998. Shazam is
best known for its smartphone and Mac/PC music identification application. It employs 169 staff and is continuing to
expand the scope of its activities through the integration of their audio fingerprint identification technology with cinema,
advertising, TV and retail environments. Shazam Entertainment LTD has published the following accounts:
Fiscal
Non-consolidated GBP
31 Dec 2013
Fiscal
Non-consolidated GBP
30 Jun 2013
Fiscal
Non-consolidated GBP
30 Jun 2012
Sales Turnover
16,889,630
31,017,466
21,806,832
Profit/(Loss) Before Taxes
(5,302,243)
(1,277,962)
(2,977,928)
Tangible Net Worth
22,334,605
25,117,257
12,276,253
Net current Assets (Liabilities)
21,638,692
25,456,254
12,432,145
Further information available at: www.shazam.com
26 – 28 Hammersmith Grove
Source: D&B
Arkadin (UK) LTD
3rd Floor of the West Wing & 5 car spaces.
Passing rent: £395,290 per annum (6.93% of total rent). D&B Rating: 2A1.
The lease is taken in the name of Arkadin (UK) LTD (registered company number 4349238).
Arkadin (UK) LTD was founded in 2002 and operates within the communication services sector and is a subsidiary of
Arkadin SAS. Arkadin is a collaboration provider, delivering audio, web and video conferencing and as well as a business
solutions service. Arkadin currently employs 75 staff and offers local support in 32 countries and in 18 languages. Arkadin
(UK) LTD has published the following accounts:
Fiscal
Non-consolidated GBP
31 Dec 2013
Fiscal
Non-consolidated GBP
31 Dec 2012
Fiscal
Non-consolidated GBP
31 Dec 2011
Sales Turnover
16,698,662
15,963,586
15,130,900
Profit/(Loss) Before Taxes
2,105,398
2,096,011
1,790,432
Tangible Net Worth
1,711,698
1,683,678
1,410,076
Net current Assets (Liabilities)
1,661,631
1,609,880
1,283,112
Further information available at: www.arkadin.co.uk
Source: D&B
Process Systems Enterprise Limited
5th Floor centre, north and 1 car space.
Passing rent: £347,591 per annum (6.10% of total rent). D&B Rating: 2A2.
The lease is taken in the name of Process Systems Enterprise Limited (registered company number 3307708).
Process Systems Enterprise Limited supplies advanced process modelling technology and related innovation services
to the process industries. The company was established in 1997 and is headquartered in the UK. Process Systems
Enterprise Limited has published the following accounts:
Sales Turnover
Profit/(Loss) Before Taxes
Fiscal
Non-consolidated GBP
31 Dec 2013
Fiscal
Non-consolidated GBP
31 Dec 2012
Fiscal
Non-consolidated GBP
31 Dec 2011
10,711,381
8,953,071
6,868,543
(66,635)
(96,948)
(264,593)
Tangible Net Worth
2,608,985
2,097,738
1,148,884
Net current Assets (Liabilities)
2,396,763
1,870,822
1,350,889
Further information available at: www.psenterprise.com
Source: D&B
London Underground LTD
2nd Floor South & part 3rd Floor South, 3rd Floor Centre and Cycle Store & Passage.
Passing rent: £338,358 per annum (5.94% of total rent). D&B Rating: 5A1.
The lease is taken in the name of London Underground Limited (registered company number 1900907).
London Underground Limited was established in 1985 and employs 16,223 staff to maintain the underground transport
service across the 270 stations that make up the London Underground network. London Underground Limited has
published the following accounts:
Sales Turnover
Profit/(Loss) Before Taxes
Tangible Net Worth
Net current Assets (Liabilities)
Fiscal
Non-consolidated GBP
31 Mar 2014
Fiscal
Non-consolidated GBP
31 Mar 2013
Fiscal
Non-consolidated GBP
31 Mar 2012
2,476,200,000
2,299,200,000
2,161,100,000
(92,000,000)
(93,200,000)
(238,300,000)
11,835,100,000
11,105,700,000
10,732,400,000
(638,900,000)
(773,000,000)
(647,900,000)
Further information available at: www.tfl.gov.uk
Source: D&B
28 – 29
Tenant Covenants
Agilisys Professional Services LTD
2nd Floor of the West Wing.
Passing rent: £328,890 per annum (5.77% of total rent). D&B Rating: 2A2.
The lease is taken in the name of Agilisys Professional Services LTD (registered company number 3571098).
Agilisys Professional Services LTD was founded in 1998 and is a wholly owned subsidiary of Agilisys Service Holdings
LTD. The company employs over 1,700 staff and provides IT and business software services to a range of public and
private sector clients. Agilisys Professional Services LTD has published the following accounts:
Fiscal
Non-consolidated GBP
31 Mar 2013
Fiscal
Non-consolidated GBP
31 Mar 2012
Fiscal
Non-consolidated GBP
31 Mar 2011
Sales Turnover
12,796,000
13,591,000
15,834,000
Profit/(Loss) Before Taxes
8,927,000
(907,000)
1,208,000
Tangible Net Worth
5,990,000
2,274,000
2,541,000
Net current Assets (Liabilities)
8,310,000
13,315,000
14,199,000
Further information available at: www.agilisys.co.uk
Source: D&B
United Biosource Holding (UK) LTD
4th Floor South and 5th Floor South.
Passing rent: £315,744 per annum (5.54% of total rent). D&B Rating: N1.
The lease is taken in the name of United Biosource Holding (UK) LTD (registered company number 6550769).
United Biosource Holding (UK) LTD is a subsidiary of United Biosource Corporation (UBC) which in turn is an Express
Scripts company. United Biosource is a leading provider of pharmaceutical support services to make medicine and
medical products safer and more accessible. United Biosource Holding (UK) LTD has published the following accounts:
Fiscal
Non-consolidated GBP
29 Dec 2012
Fiscal
Non-consolidated GBP
31 Dec 2011
Fiscal
Non-consolidated GBP
25 Dec 2010
Profit/(Loss) Before Taxes
(41,362,000)
(5,829,000)
(1,590,846)
Tangible Net Worth
(21,659,000)
19,703,000
25,532,102
Net current Assets (Liabilities)
(48,492,000)
(14,515,000)
(17,199,925)
Further information available at: www.ubc.com & www.express-scripts.com
26 – 28 Hammersmith Grove
Source: D&B
Rockwool LTD
3rd Floor Centre, North (refurbished) and 4 car spaces.
Passing rent: £310,808 per annum (5.45% of total rent). D&B Rating: 5A1.
The lease is taken in the name of Rockwool LTD (registered company number 972252)
Rockwool was set up in 1937 and is a manufacturer of stone wool insulation, supplying a range of products to the
construction industry. Rockwool operates 27 factories in Europe, North America and Asia with a global network of sales
offices, distributors and partners. Rockwool LTD has published the following accounts:
Fiscal
Non-consolidated GBP
31 Dec 2013
Fiscal
Non-consolidated GBP
31 Dec 2012
Fiscal
Non-consolidated GBP
31 Dec 2011
Sales Turnover
79,703,000
87,044,000
97,412,000
Profit/(Loss) Before Taxes
(10,789,000)
(10,453,000)
(4,088,000)
Tangible Net Worth
48,114,000
56,532,000
23,705,000
Net current Assets (Liabilities)
6,048,000
4,727,000
7,845,000
Further information available at: www.rockwool.co.uk
Source: D&B
Medpace UK LTD
Part 1st Floor of the West Wing.
Passing rent: £246,006 per annum (4.32% of total rent). D&B Rating: 1A1.
The lease is taken in the name of Medpace UK LTD (registered company number 5418135).
Medpace Europe Holding BV owns 100% of the interest in Medpace UK LTD. Medpace is a clinical research company
focussed on research-based drug and medical device development. Medpace UK LTD has published the following
accounts:
Fiscal
Non-consolidated GBP
31 Dec 2013
Fiscal
Non-consolidated GBP
31 Dec 2012
Fiscal
Non-consolidated GBP
31 Dec 2011
Tangible Net Worth
1,374,326
874,142
573,288
Net current Assets (Liabilities)
1,322,675
825,161
553,564
Further information available at: www.medpace.com
Source: D&B
Fitness First Clubs LTD
Part Basement, Ground and Rear of the West Wing.
Passing rent: £240,534 per annum (4.22% of total rent). D&B Rating: N4.
The lease is taken in the name of Fitness First Clubs LTD (registered company number 3207791).
Fitness First begun in 1993 and today has 540 clubs in 16 different countries, employing over 2,700 staff and is the
largest privately owned health club in the world. Fitness First was acquired in 2005 by BC Partners, a London-based
private equity group. Fitness First Clubs LTD has published the following accounts:
Fiscal
Non-consolidated GBP
31 Oct 2013
Fiscal
Non-consolidated GBP
31 Oct 2012
Fiscal
Non-consolidated GBP
31 Oct 2011
Sales Turnover
85,130,000
127,087,000
140,130,000
Profit/(Loss) Before Taxes
(23,484,000)
8,003,000
(58,364,000)
Tangible Net Worth
(98,685,000)
(74,447,000)
(76,053,000)
Net current Assets (Liabilities)
(19,046,000)
(10,980,000)
(16,139,000)
Further information available at: www.fitnessfirst.co.uk
Source: D&B
30 – 31
13 Hammersmith Occupational Market
Occupational Market
Due to Hammersmith’s excellent communications and
position within the Central London market, it has proven to
be one of London’s most dynamic markets with over 50%
rental growth in the past three years, one of the highest of
any London submarket.
The Hammersmith market has benefitted significantly from
the footloose nature of London’s occupiers, seeking high
quality office accommodation with excellent transport
communications and amenities. JLL has identified
approximately 682,500 sq ft of active tenant demand
specifically targeting Hammersmith well above the five year
average of 351,000 sq ft, illustrating a demand to supply
ratio of 7:1.
The Hammersmith office market is currently witnessing
strong levels of occupational activity with total vacancy rates
at 2.6% and vacancy rates for Grade A supply at 0%. The
lack of supply has been exacerbated by the continued trend
of office to residential conversion with over 1.3 million sq ft of
office stock being lost in the past two years.
Prime Rental Series (£ psf)
Source: JLL
26 – 28 Hammersmith Grove
Approximately 129,400 sq ft has been let in seven
transactions in 2014, well ahead of the 73,000 sq ft let
in 2013.
The most recent significant development to be completed
is at 10 Hammersmith Grove. This brand new mixed use
office and retail property was developed by Aberdeen
and Development Securities. The property is the first new
Grade A development to be completed in ten years and
has set a new rental tone of £50.00 per sq ft. The 115,000
sq ft building was fully let within 12 months of practical
completion, a testament to the strength of demand for
high-quality accommodation.
With only one office scheme being delivered to the market
in 2015 totalling 82,000 sq ft compared to the 682,500 sq ft
of tenant demand targeting the area, further rental growth is
expected in the short term together with significant reduction
of tenant incentives and rent free periods.
“Proven to be one of London’s most
dynamic markets”
Office Leasing Comparables
The table below sets out selected key leasing comparables.
Directly adjacent to 26-28 Hammersmith Grove, Aberdeen and Development Securities are developing 12 Hammersmith Grove. Completion
is due in Q1 2016 and is likely to set a new benchmark in the immediate vicinity providing 167,000 sq ft high quality Grade A office
accommodation into a highly restricted supply pipeline. Furthermore, the development will see significant improvement to the streetscape
with new landscaping and retail/leisure amenities. This restricted pipeline combined with new developments will facilitate further rental growth
and demonstrate new rental benchmarks.
Property
Date
Area
(sq ft)
Tenant
Rent
(£ per sq ft)
Rent Free
(Lease Term)
12 Hammersmith
Grove, W6
PC 2016
167,000
TBC
Not Quoting
TBC
(TBC)
New
1 Queen Caroline
Street, W6
PC Jun-2015
81.000
TBC
Not Quoting
TBC
(10 yrs)
Refurbished
Jun-2014
24,750
Accor Hotels
£46.50
Confidential
(10yr lease)
Aug-2014
25,000
Fox Channels
£47.00
Confidential
(10yr lease)
10 Hammersmith
Grove, W6
184 Shepherd’s Bush
Road, W6
Condition
New
Feb-2014
32,500
UKTV
£48.50
24 months
(15yr lease)
Aug-2014
35,000
Phillip Morris
£50.00
17 months
(15yr lease)
Jul-2013
(PC Q3 2015)
115,000
Dunnhumby
£39.50
24 months
(15yr lease)
Pre-let
(Refurbished)
32 – 33
14 Hammersmith Investment Market
Investment Market Commentary
London has remained the most traded city in the world for the past four years. Both domestic and overseas purchasers are attracted by the
high liquidity, transparency and long term wealth preservation that London offers. Investor demand continues to grow and the lack of quality
freehold assets in good locations, combined with the continued strength of the occupational markets, has maintained pressure on yields.
Prime yields in the West End are 4.00% for comparable lot sizes and are under downward pressure due to growing investor demand and
rental growth. Central London investment volumes reached £18.1bn almost matching the record level achieved in 2013. Approximately £25
billion of equity is known to be targeting Central London assets, resulting in a significant demand for well located investment opportunities of
scale. In addition, investors are seeking shorter term income where the opportunity exists to refurbish and reposition assets to benefit from
forecast rental growth and capitalise on a robust occupational market with the lowest recorded vacancy levels.
Hammersmith remains a favoured location for both occupiers and investors. It has experienced a high level of activity from a broad range
of investors targeting the sub market. Those parties include UK Institutions and investors from the Middle East, North America, South East
Asia and throughout Europe. Strong market fundamentals will continue to attract investors seeking to capitalise on the depth of occupational
demand, low levels of supply and rental growth projections.
A selection of key investment transactions are set out below:
Lease Expiry
Price
(£ millions)
NIY
Capital Value
(£/sq ft)
2030
£55.00
4.90%
£640
Tenants include Regus, Telegraph Media
Group, Advent International, Scripps
Network Interactive
2016-2021
£207.50
5.10%
£913
123 Buckingham
Palace Road, SW1
Tenants include Google, PA Consulting, EMI,
Sky Media
2014-2027
£195.00
5.50%
£950
Sep-2014
77 Fulham Palace
Road, W6
Let to 18 tenants including
Harper Collins Publishers Ltd,
IIRSM, Tinopolis Ltd
2014-2023
£81.75
6.33%
£423
Jul-2014
Tenants include CB&I UK Ltd,
The Point, Paddington
Cerner Ltd, CH2MHill, A2 Dominion Housing
Basin, W2
Group, EE Ltd
2018-2028
£210.00
5.48%
£894
Jun-2014
33 Grosvenor Place,
SW1
Hess Ltd
2016
£204.00
4.79%
£1,065
Feb-2014
One Queen Caroline
Street, W6
Coca Cola
VP
£28.50
N/A
£348
Date
Property
Tenants
Dec-2014
43 Brook Green,
W6
Halcrow Group
Nov-2014
111 Buckingham
Palace Road, SW1
Oct-2014
26 – 28 Hammersmith Grove
34 – 35
15 Asset Management Initiatives
Asset Management
26-28 Hammersmith Grove offers a range of exciting and
significant asset management opportunities.
There are a number of tangible opportunities to increase
current rental income and capture the highly reversionary
uplift in income throughout the building. 86% (c.175,000
sq ft) of the asset, by floor area, has lease events in the
years 2015-2017. The current passing rent reflects an
exceptionally low £27.95 sq ft overall which illustrates the
highly reversionary nature of the asset.
The sixth floor of the East Wing became vacant in December
2014 and once refurbished will be the only floor plate in
excess of 10,000 sq ft available in Hammersmith, providing
much needed supply into the market. Upon letting it is likely
that it will set a new rental tone for the entire building for the
purposes of rent reviews and lease renewals.
Active asset management initiatives will include refurbishment
of vacant accommodation, rent reviews, lease renewals,
regears, surrender and relets. Furthermore, extensive
development options are discussed overleaf in section 16.
The 2nd - 4th floors in the East Wing benefit from a potential
net internal area gain at lease expiry achieved by reclaiming
part of the large lift lobbies and circulation space totalling
c.2,500 sq ft per floor. This has been implemented on the 5th
and 6th floors already and would provide up to 7,500 sq ft of
net internal area gain on remaining floors.
In addition to this the property benefits from in excess of
20,000 sq ft of vacant Grade A office accommodation,
presenting an immediate opportunity to capitalise on strong
occupier demand and rental reversion. Evidence created by
these lettings will set a new tone for approaching rent reviews
and lease renewals.
Furthermore there are currently 146 vacant car parking spaces
with the most recent lettings at the property achieving £4,000
per annum. Providing yet another opportunity to drive short to
medium term income.
Lease Events
The graph below breaks down lease events by type. The average passing office rent (£ per sq ft) has been overlaid to provide an indication
of the reversion.
Source: JLL
26 – 28 Hammersmith Grove
“86% of the building by floor area benefits from
lease events within the first three years”
Key Lease Events
The table below highlights the asset’s key lease events between 2015 and 2017.
2015
Demise
Date
Lease Event
Area sq ft
Tenant/Name
Average rent psf
Part 2nd & 3rd Floors
Oct-2014
Outstanding rent review
12,426
London Underground
£27.01*
6th Floor
Jan-2015
Refurbish/Relet
18,442
Vacant
n/a
Part 1st Floor
Jan-2015
Let already refurbished
vacant accommodation
1,885
Vacant
n/a
10th Floor
May-2015
Surrender/Refurbish/Relet
3,102
Artelia
£40.82
Part 4th & 5th Floors
Aug-2015
Rent review/Break
12,400
United Biosource Holdings
£25.47
Part Ground Floor
Aug-2015
Rent review/Break
5,941
Envision Pharma
£26.81
2016
Demise
Date
Lease Event
Area sq ft
Tenant/Name
Average rent psf
4th - 8th Floors & Part Bsmt
Mar-2016
Rent review
44,935
MWB
£31.66
Part 4th & 2nd Floors
Aug-2016
Break
25,866
Shazam
£31.18*
11th Floor
Nov-2016
Break/Rent review
3,129
Dassault Systems
£32.11
Part 2nd Floor
Oct-2016
Expiry/Refurbish/Relet
11,725
Agilisys
£28.05
Ground Floor Retail
Nov-2016
Break
1,448
Caffe Kix
£18.41
Area sq ft
Tenant/Name
Average rent psf
11,711
Arkadin
£32.47
2017
Demise
Part 3rd Floor
Date
Aug-2017
Lease Event
Rent Review/Regear
*Average across all offices leases.
36 – 37
16 Potential for Development
Future Development Options
26-28 Hammersmith Grove offers a number of exciting development opportunities which will provide
significant gains across the site. The property is a landmark 2.3 acre site benefitting from an exceptionally
low site density of 44%. The section below details three key opportunities which have been identified with
a supporting architectural study and planning report. All reports are available on the data site.
1. Vacant Multi-Storey Car Park Site
The former multi-storey car park to the north of the site provides an opportunity for redevelopment and
potential change of use. The car park was originally constructed in the 1970s and is currently underutilised. Demolition of this block and removal of the car parking ramp will provide the opportunity to
create a self-contained building whilst reconfiguring the car parking and landscaping.
JLL’s Planning team has identified potential uses as office, hotel or residential.
The architectural study provides for a self-contained office building of 47,512 sq ft (NIA) or a 160 key
hotel. A full breakdown of floor areas, layouts and planning reports are available on the data site.
2. Two additional office floors on East Wing
Tate Hindle in conjunction with the structural survey carried out by Davies Maguire + Whitby have
established that two additional floors comprising 34,811 sq ft NIA of office accommodation can be
created. The proposed 7th and 8th floors, each comprising 17,405 sq ft respectively, have been designed
within the existing structure and will not require further structural reinforcement. The structural survey is
available on the data site.
3. Incubator Suites
Conversion of undercroft car parking spaces on the first floor below the east wing into incubator suites
extending to 11,216 sq ft (NIA). The newly developed “incubator” units would provide flexible office and
work shop accommodation to small companies, innovators and start-ups. The intention would be to
provide a flexible and collaborative urban environment at an affordable rental level. This would be viewed
favourably by the local authority and would provide a breeding ground for new tenants to grow into the
building. Further plans and floor areas are contained in the Tate Hindle architectural study on the data site.
View from the West Wing looking north showing the newly developed self-contained hotel/office and incubator suites.
26 – 28 Hammersmith Grove
1
“Opportunity to capitalise on low site density of 44%”
2
3
Overview depicting the three main development opportunities.
38 – 39
17 Additional Information
EPC
Debt Advisory
The building has the following EPC rating: D Rating of 100.
Further information is available on the marketing website.
JLL Debt Advisory is an FCA regulated business providing
market leading debt solutions for real estate investors. We
have wide ranging expertise in senior debt and mezzanine
arrangement for investment and development projects, as well
as devising and structuring joint ventures.
Capital Allowances
Further information is available upon request.
Website
Further information is available at www.26-28hg.com where
the following information can be found:
– Warranted Measured Survey from Plowman
Craven Associates
– Occupational leases and lease summaries
– Estate Title and Title Review
– Service Charge Accounts - two years of fully audited
accounts and projected budgets for 2014 and 2015
– EPC Certificate
– Floorplans (CAD)
JLL Debt Advisory has held discussions with a variety of lenders
regarding the financing of 26-28 Hammersmith Grove, and we
would be delighted to discuss funding options with potential
purchasers. For further information, please contact:
David Lebus
+44 (0)20 7399 5031
[email protected]
Sam Fleming
+44 (0)20 7852 4632
[email protected]
Service Charge
The estate service charge budget for the property is £1,925,500
for the year ending 31st December 2015, reflecting an average
service charge of £9.84 per sq ft overall. Although the majority
of the service charge is recoverable there are a small number of
service charge caps, as detailed within the tenancy schedule.
Further information can be found on the leases and lease
summaries contained on the data site.
– Structural Survey
– Full tenancy schedule with details of licences for
car park and storage spaces
Proposal
– Dun & Bradstreet reports
Our client is seeking offers in excess of £118,000,000 for either
the freehold and long leasehold interests or 100% of the issued
share capital in the UK Limited Partnership owning the property.
– Building Survey including M+E and Environmental surveys
– Planning Report
– Proposed Development Images
A purchase at this price reflects a low capital value of £576 per
sq ft and a net initial yield of 4.74%. Upon letting the vacant
office accommodation and settlement of the outstanding
Agilisys and London Underground rent reviews, the running
yield increases to 5.71%.
Please contact JLL for password controlled access.
The above is based upon purchaser’s costs of 1.8%.
– Planned Preventative Maintenance Programme (PPM)
– Architectural Study from Tate Hindle
Contact
Rob Corbett
Jourdan Rajwan
Giles Stevens
+44 (0)207 399 5545
+44 (0)7802 789846
[email protected]
+44 (0)207 399 5348
+44 (0)7860 408981
[email protected]
+44 (0)207 399 5623
+44 (0)7872 107542
[email protected]
Misrepresentations Act 1967 & Declaration:
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) 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 Jones Lang LaSalle has any authority to make or give
any representation or warranty whatever in relation to this property. Ordnance Survey © Crown Copyright 2012. All rights reserved. Licence number 100020449. Not to scale. For indicative purposes only. January 2015.
Tayler Reid Design I 020 7355 2500 I www.taylerreid.co.uk