Development, Refurbishment or Owner Occupier Opportunity in the Heart of Midtown - LONDON WC1 - Gerald Eve
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LONDON WC1
Development, Refurbishment or
Owner Occupier Opportunity
in the Heart of Midtown
2-10 PRINCETON STREET 1
INVESTMENT HIGHLIGHTS
• Commercial and residential investment
• Enviable location in the heart of London’s Midtown
• 20,537 sq ft of accommodation comprising 17,921 sq ft
of commercial accommodation and 2,616 sq ft of
residential accommodation
• Offered by way of short-term sale and leaseback to City,
University of London to 31st December 2020 (subject to
tenant-only break options)
• Four residential flats let on Assured Shorthold Tenancy
agreements (ASTs)
• Total passing rent of £488,480 per annum (reflecting
£23.79 per sq ft)
• Long leasehold interest of 150 years from 25 March
2005 at a peppercorn rent
• Numerous asset management opportunities including
refurbishment, change of use and redevelopment (subject
to obtaining the necessary consents)
THE PROPOSAL
Offers in excess of £17,500,000 are invited for the long
leasehold interest, subject to contract.
This reflects an attractive capital value of £852 per sq ft.
2 2-10 PRINCETON STREET 2-10 PRINCETON STREET 3
MIDTOWN IS ONE OF THE
MOST DYNAMIC AND EVOLVING
LOCATIONS OF LONDON
Lamb’s Conduit Street
Rosewood Hotel
MIDTOWN
Midtown is one of the most dynamic and evolving locations
in London.
Benefitting from a strategic location between the West End
and City markets, Midtown has and provides enviable transport
Gray’s Inn Gardens
links and accessibility for workers and visitors alike.
Occupiers and visitors are attracted to Midtown by its wide
range of amenity including restaurants such as Hubbard &
Bell, Holborn Dining Room and Noble Rot, and hotels such
as The Hoxton and Rosewood Hotel.
Whilst once associated with the legal profession, owing to its
proximity to the Royal Courts of Justice and Lincoln’s Inn
Fields, the location has now evolved into a diverse and mixed
tenant location.
Occupiers ranging from tech, media and financial to start-
ups have all been attracted to Midtown, including Warner
Bros, Amazon, Skype, Mediacom and Framestore.
Additionally, the area can boast of being home to a number
of internationally recognised educational institutions
including the University of Arts, UCL, LSE and
King’s College London.
Hubbard & Bell
4 2-10 PRINCETON STREET 2-10 PRINCETON STREET 5
CHANCERY LANE ST. PANCRAS
INTERNATIONAL
FARRINGDON BLACKFRIARS HOLBORN
TATE
CITY OF LONDON BARBICAN CLERKENWELL ST. PAUL’S MODERN KING’S CROSS SOUTHBANK COVENT GARDEN SOHO MAYFAIR
6 2-10 PRINCETON STREET 2-10 PRINCETON STREET 7
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Leather Lane Market
PLACES TO STAY GREEN SPACES EDUCATION
1. The Hoxton 1. Lincoln’s Inn Fields 1. University of the Arts London
2. Rosewood Hotel 2. Red Lion Gardens 2. LSE
3. Premier Inn 3. Bloomsbury Square Gardens 3. London School of Photography
4. Grange Holborn Hotel 4. Russell Square 4. King’s College London
5. L’Oscar Hotel 5. Gray’s Inn Gardens 5. UCL
6. Brunswick Square Gardens
RESTAURANTS & BARS PLACES OF INTEREST
1. The Espresso Room 1. Sir John Soane’s Museum
2. Great Queen Street 2. The British Museum
3. Belgo Holborn 3. Charles Dickens Museum
4. Bill’s 4. Leather Lane Market
5. Holborn Dining Room 5. Lamb’s Conduit Street
6. Byron Burger 6. The Brunswick Centre
7. Pizza Express 7. Aldwych Theatre
8. Scarfes Bar 8. Royal Opera House
9. The Constellations Restaurant
Gray’s Inn Gardens The Hoxton Hotel
8 2-10 PRINCETON STREET 2-10 PRINCETON STREET 9
CLOSE TO MAJOR TRANSPORT HUBS HOLBORN STATION IMPROVEMENT WORKS
2-10 Princeton Street benefits from excellent transport links across London. Holborn TFL have announced significant improvement works to Holborn Station, including a new entrance on
underground station is situated to the south of the property providing access to the Central and Procter Street, additional escalators and lifts and step free access from entrance to platform.
Piccadilly lines. Chancery Lane (Central Line) and Russell Square (Piccadilly line) stations are also These works are scheduled to commence in 2023/24.
within a close walking distance.
Theobald’s Road to the north and High Holborn to the south provide a number of key bus routes
providing connectivity south to Waterloo as well as north to King’s Cross and St Pancras.
TRAIN TIMES FROM HOLBORN STATION
02 03 05 07
OXFORD CIRCUS KING’S CROSS BANK LIVERPOOL STREET
09 10 14 37
WATERLOO VICTORIA LONDON BRIDGE HEATHROW AIRPORT CGI
Travel times from tfl.gov.uk
ELIZABETH LINE (CROSSRAIL)
Within ten minutes’ walk are Farringdon and Tottenham Court
Road stations - two major Elizabeth Line hubs.
Due to open in 2021, the Elizabeth Line will significantly
improve access across Central London. Europe’s largest
infrastructure project will boost Central London rail capacity
by 10% and bring an extra 1.5 million people within a 45
minute commute of Central London.
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10 2-10 PRINCETON STREET 2-10 PRINCETON STREET 11
LOCAL DEVELOPMENTS
Midtown has been subject to significant development activity in recent years, with the delivery of a
number of high quality commercial and residential developments.
This change has largely been driven by demand from occupiers who have sought to relocate and establish
themselves in this lively, fashionable and diverse location.
As a result, Midtown continues to thrive and evolve as one of Central London’s most vibrant and
established live/work neighbourhoods.
A summary of current and proposed developments is set out below:
THESE WILL HELP
FURTHER MIDTOWN’S
EVOLUTION AND
REPUTATION AS
A COMMERCIAL HUB
IN CENTRAL LONDON
262 HIGH HOLBORN, WC1 150 HOLBORN, EC1 FIVE NORWICH STREET, EC4
Lazari Developments Dar Group Scopus Holdings Limited
40,687 sq ft of office and retail accommodation 110,000 sq ft of office and retail accommodation 29,336 sq ft of office accommodation
Completion 2020 Completion 2021 Completed 2019
25% under offer
THE BUREAU, EC4 20 RED LION STREET, WC1 THE POST BUILDING, WC1
Evans Randall Mayfair Capital Brockton Capital & Oxford Properties JV (purchased by Pontegadea)
74,000 sq ft of office accommodation 37,000 sq ft of office accommodation 390,000 sq ft of office and retail accommodation
Completed 2018 Completion 2019 Completed 2019
50% let 50% under offer 100% let
12 2-10 PRINCETON STREET 2-10 PRINCETON STREET 13
DESCRIPTION SPECIFICATION 2-10 Princeton Street is situated on the north side of Princeton The commercial accommodation occupied by City, University of Street, bounded by Theobald’s Road to the north and High London provides a mixture of meeting rooms and lecture rooms Holborn to the south, two of London’s key arterial roads from with ancillary offices and storage on the lower ground floor. east to west. The majority of accommodation benefits from a VRF air The property is of brick construction and provides a total of 17,921 conditioning system, suspended ceilings and recessed sq ft of commercial accommodation and 2,616 sq ft of residential fluorescent lighting. accommodation over 6 storeys comprising lower ground, ground There are two lifts located at the north and southern entrances. and four upper floors. The lift servicing the Princeton Street entrance has access to the The commercial accommodation is located from lower ground to commercial accommodation, whilst the rear lift at the northern third floor, accessed via the main reception on Princeton Street. entrance provides access to the residential accommodation. The accommodation benefits from regular floor plates with good natural light. The four two-bed residential flats are located on the fourth floor of the property. These are accessed from the rear of the property. There are 20 car parking spaces to the rear of the property. 14 2-10 PRINCETON STREET 2-10 PRINCETON STREET 15
Reception Library
Residential Accommodation Seminar Room
16 2-10 PRINCETON STREET 2-10 PRINCETON STREET 17
ACCOMMODATION FIRST FLOOR
3,632 sq ft / 337.4 sq m
SECOND FLOOR
3,629 sq ft / 337.1 sq m
The property provides the following areas:
Office Office
RESIDENTIAL
Floor NSA (sq ft) NSA (sq m) GIA (sq ft) GIA (sq m)
4th 2,616 243.0 3,921 364.3
COMMERCIAL
Floor NIA (sq ft) NIA (sq m) GIA (sq ft) GIA (sq m)
3rd 3,632 337.4 4,513 419.3
2nd 3,629 337.1 4,500 418.1
1st 3,632 337.4 4,500 418.1
Ground 3,304 307.0 4,116 382.4
Lower Ground 3,724 346.0 5,057 469.8
Total 17,921 1,664.9 22,686 2,107.7
The property has been measured by Plowman Craven in accordance with the RICS Code of
Measuring Practice (6th Edition).
Princeton Street Princeton Street
* IPMS measurements available on request.
FLOOR PLANS
LOWER GROUND FLOOR GROUND FLOOR THIRD FLOOR FOURTH FLOOR
3,724 sq ft / 346.0 sq m 3,304 sq ft / 307.0 sq m 3,632 sq ft / 337.4 sq m 2,616 sq ft / 243.0 sq m
Office Office Residential
Office
Reception
Storage
Flat 1
Flat 2
Flat 4
Flat 3
Princeton Street Princeton Street North Princeton Street Princeton Street North
Not to scale and indicative only Not to scale and indicative only
18 2-10 PRINCETON STREET 2-10 PRINCETON STREET 19THE MIDTOWN MARKET TENURE
Midtown remains one of the most active submarkets in Central London, with almost all of the new space from 2-10 Princeton Street, WC1 is held under long leasehold, title number NGL855355.
recent development completions having been fully let – many before completion – highlighting occupier demand
The long lease benefits from a term of 150 years from 25 March 2005 (c.135 years unexpired).
for new space.
The passing rent is a peppercorn.
4.1 OFFICE AVAILABILITY RATE FOR MIDTOWN
With Midtown appealing to a diverse occupier base, this competing demand has restricted availability (4.1%). TITLE PLAN
Midtown looks set to continue its strong recent performance, with continued pre-letting activity limiting future
office development pipeline. Prime rents remain at £72.50 psf, however for the best quality space these are being
surpassed, as seen by the pre-letting of The Bureau to AB InBev at rents in excess of £75.00 per sq ft.
MIDTOWN OCCUPIER TAKE-UP BY SECTOR FOR THE PAST 12 MONTHS
15% Associations
16% Corporate
4% Finance & Banking
24% Media & Tech
31% Professional Services
1% Retail
9% Serviced Offices
COMPARABLE INVESTMENT ACTIVITY
Address Size (sq ft) Tenure Price NIY (%) Capital Value (£psf) Date Purchaser
Templar House, 100,545 FH £80.0m N/A £796 Jul-19 Adir Group
81-87 High Holborn, WC1
Holborn Town Hall, 26,000 FH £21.35m 4.88% £835 Jun-19 Confidential
193-197 High
Holborn, WC1
65 Kingsway, WC2 69,324 FH £59.0m 2.22% £851 May-19 Clearbell Capital
Charles Darwin 17,794 FH £12.85m N/A £722 Feb-19 Clearbell Capital
House, 12 Roger
Street, WC1
Acorn House, 20,410 FH £16.10m N/A £789 Feb-19 Trinco Properties
314-320 Gray’s Inn Road,
WC1
Ordnance Survey © Crown Copyright 2019. All Rights Reserved.
Licence number 100022432
Plotted Scale - 1:750. Paper Size - A4
20 2-10 PRINCETON STREET 2-10 PRINCETON STREET 21TENANCY VAT
The premises have not been elected for VAT.
• The commercial accommodation will be offered with a leaseback to City, University of London until 31st December 2020
• City, University of London will have break options on 1st September, 1st October and 1st November 2020
• Rent to be £358,420 per annum (£20.00 per sq ft overall)
• The residential flats are each let on ASTs, with a total passing rent of £118,040 per annum DATA ROOM
• There is a licence agreement dated 1st January 2019 in relation to 3 car parking spaces for a licence fee of £11,500 per annum
Further information is available in the online data room:
Tenant Floor Use Size Start Date Expiry Date Rent Rent Comments • Plowman Craven measured survey
(sq ft) (£ pa) (£ psf)
• Registered title information
Tenant 1 Flat 1, Residential 601 15/06/2018 14/06/2020 £ 30,420 £ 50.62 Deposit • Legal documents
4th floor £3,510
• EPC
Tenant 2 Flat 2, Residential 704 01/11/2019 31/10/2020 £ 29,900 £ 42.47 Deposit
4th floor £2,875 • Floor plans
Tenant 3 Flat 3, Residential 646 02/12/2019 01/12/2020 £ 28,600 £ 44.27 Deposit • Planning statement
4th floor £2,750 • Sales particulars
Tenant 4 Flat 4, Residential 665 20/08/2019 19/08/2021 £ 29,640 £ 44.57 Deposit
4th floor £2,850 Access to the data room is password protected and can be obtained from the Vendor’s agent.
City, Lower Commercial 17,921 Completion 31/12/2020 £ 358,420 £ 20.00 Tenant-only break
University Ground, Date options on 01/09/20,
of London 3rd floor 01/10/20 and 01/11/20
Bedford Row Car Car Parking n/a 01/01/2019 30/06/2020 £ 11,500 n/a Licence
PROPOSAL
Chambers Parking Spaces agreement of
Limited Licence 18 months Offers in excess of £17,500,000 are invited for the long leasehold interest, subject to contract.
This reflects an attractive capital value of £852 per sq ft.
Total 20,537 £ 488,480 £ 23.79
PLANNING
The site is currently designated as educational (D1) use and residential (C3) use.
The property is located within the London Borough of Camden.
We understand the building is not listed but is within Bloomsbury Conservation area.
A Planning Statement is available in the data room.
Interested Parties should make their own enquiries.
OPPORTUNITIES
• Refurbishment of the existing accommodation to provide • Improving ground floor reception impact at street level
modern accommodation and investigate options for Princeton Street frontage
• Reconfiguration of the cores to improve efficiency and net • Explore change of use (subject to gaining necessary consents)
lettable area
• Explore potential for massing and infill (subject to gaining
necessary consents)
22 2-10 PRINCETON STREET 2-10 PRINCETON STREET 23WEBSITE www.2-10princetonstreet.co.uk CONTACT For further information or to arrange an inspection, please do not hesitate to contact the Vendor’s agent: Fergus Jagger Ben Nichols Tel. +44 (0)20 7653 6831 Tel. +44 (0)20 7333 6411 Mob. +44 (0)7787 558756 Mob. +44 (0)7786 733198 fjagger@geraldeve.com bnichols@geraldeve.com Amy Bryant Lloyd Davies Tel. +44 (0)20 7653 6825 Tel. +44 (0)20 7333 6242 Mob. +44 (0)7551 172931 Mob. +44 (0)7767 311254 abryant@geraldeve.com ldavies@geraldeve.com Conditions under which these particulars are issued All details in these particulars are given in good faith, but Gerald Eve LLP for themselves and the Vendors/Lessors of this property for whom they act give notice that: 1 These particulars do not and shall not constitute, in whole or in part, an offer or a contract or part thereof, and Gerald Eve LLP have no authority to make or enter into any such offer or contract. 2 All statements contained in these particulars are made without acceptance of any liability in negligence or otherwise by Gerald Eve LLP, for themselves or for the Vendors/Lessors. 3 None of the statements contained in these particulars is to be relied on as a statement or representation of fact or warranty on any matter whatsoever, and intending purchasers must satisfy themselves by whatever means as to the correctness of any statements made within these particulars. 4 The Vendors/Lessors do not make, give or imply, nor do Gerald Eve LLP or any person in their employment have any authority to make, give or imply, whether in these particulars or otherwise, any representation or warranty whatsoever in relation to the property. This statement does not affect any statutory rights you may have nor does it intend to limit Gerald Eve LLP’s liability which cannot be excluded or limited by law. Particulars issued January 2020. Design and production: www.stuartchapmandesign.co.uk 020 3983 1665 24 2-10 PRINCETON STREET
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