RARE HQ OFFICE REPOSITIONING OPPORTUNITY - FOR SALE - 24,038 SQ FT ON 0.57 ACRES - LoopNet
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
FOR SALE RARE HQ OFFICE REPOSITIONING OPPORTUNITY 24,038 SQ FT ON 0.57 ACRES
SUPERB OPPORTUNITY 47 CLARENDON ROAD • WATFORD • WD17 1HP#2
ESTABLISHED
The existing building provides 1970s built office
accommodation over ground and 2 upper floors
with basement parking.
The property has been measured in accordance
with the RICS Code of Measuring Practice and
provides the following approximate areas:
FLOOR NET INTERNAL AREA GROSS INTERNAL AREA
SQ M SQ FT SQ M SQ FT
Basement - - 2,104.62 22,654
Ground 942.61 10,146 1,037.28 11,165
First 646.48 6,959 746.82 8,039
Second 644.12 6,933 746.82 8,039
Third - - 262.88 2,830
PROPERTY
TOTAL 2,233.21 24,038 4,635.54 49,897
PARKING SITE AREA
85 car spaces at grade and basement level. 0.57 acres (0.23 ha).
47 CLARENDON ROAD • WATFORD • WD17 1HP#3
First EXISTING FLOOR PLANS Basement Second Ground Third 47 CLARENDON ROAD • WATFORD • WD17 1HP#4
FLAGSHIP
Hemel
Hempstead
A1(M)
Cheshunt
M25
Enfield
Watford M1
A10
M11
Edgware
Harrow
M40
• Situated on the edge of North London and the A1
Wembley Romford
commuter belt of Hertfordshire and South
Bucks, Watford is ideally placed for continued A40 A406 A41
growth and to become even more dominant as
Slough Hayes
an office location going forward A13
M4
London
•
LOCATION
Watford town centre has three mainline train
stations, Watford Junction, Watford High Street
and North Watford, providing regular and
direct access to Central London, with a fastest
journey time of 16 minutes to London Euston,
and numerous Greater London destinations
Watford is the
principal commercial
Watford Junction centre in the north
Station and Car Park
M25 benefiting from
exceptional rail and
ad
road connections.
ns Ro
a
St Alb
Clarendon Road
West Herts
• Additional direct rail connections to
College Birmingham, Central Milton Keynes, Hemel
A412 Hempstead and St Albans Abbey from Watford
P Radlett Road
Playing Fields Junction and Rickmansworth, Amersham,
Cassiobury Park CitiPark Sutton Chesham, Harrow-on-the-Hill from Watford
CitiPark Gade Car Park
d
Car Park Metropolitan Line
d
Roa P Roa A411
o rth ton
w p
ans U
• The town lies 15 miles north west of Central
km
Ric
West Hertfordshire intu London, 6 miles south east of Hemel
Sports Ground Watford Hempstead and 8 miles south west of St Albans
Exc
han
ge
•
Roa
A4178 Junction 20 of the M25, 4 miles north west
d
Watford
provides quick access to the national motorway
High Street network, and junction 5 of the M1, 2 miles to the
Station north east, provides a direct route southbound
into Central London
47 CLARENDON ROAD • WATFORD • WD17 1HP#5
Direct access to
WELL
Central London, with
a fastest journey
time of 16 minutes to
London Euston
CONNECTED
M1 (J5) M25 (J20) Hemel Hempstead St Albans Central London
2 miles 4 miles 6 miles 8 miles 15 miles
London Euston Milton Keynes Clapham Junction St Albans Birmingham New Street
16 mins 22 mins 41 mins 16 mins 69 mins
Luton Heathrow Stansted Gatwick
18 miles 22 miles 45 miles 57 miles
47 CLARENDON ROAD • WATFORD • WD17 1HP#6
51
The building is on 42-44
Clarendon Road, the
prime office district
in Watford Victoria House
40
PERFECTLY
Cambridge House
Edward Hyde Building
Beechen
45
Clarendon Road
Grove
SITUATED
41-43 36
34
Hannay
37
House
47 CLARENDON ROAD • WATFORD • WD17 1HP#7
IN GOOD
LOCAL OCCUPIERS
1 TJX 7 ACI
2 KPMG 8 Veale Wasbrough Vizards
3 PwC 9 HYDE – L&G refurbishment
4 Ralph Lauren 10 Wickes head office
5 Wunderman Thompson Commerce 11 Hilton Hotels Europe head office
COMPANY
6 Employment Tribunal Service 12 JD Wetherspoons head office
10
11
Intu Watford
12
Cineworld
Watford Junction Station
Holiday Inn 2 1
4
3 9
5 Jury’s Inn Watford Palace Theatre
7 6
8
NRG Gym
TJK Europe New HQ
53CR site
Sainsbury’s
e
rov
Iceland
A412 S
nG
t Alba t
tree
he
ns Ro S
ec
CitiPark Gade
ad h
Hig
Be
11
A4
PLANNING
Watford Borough Council has been supportive of major development
projects in recent years, particularly on Clarendon Road where the
retention of employment space has been at the forefront and high rise
buildings have been permitted.
Clarendon Road is subject to an Article 4 Direction restricting the
conversion of the building to residential under Permitted Development.
PRE-APPLICATION
A pre-application has been undertaken with Watford Borough
Council for the following:
• Refurbishment and extension of existing building for office
use, Class B1 (a)
• Two storey roof extension to provide additional 1,020 sq m of
AND POTENTIAL
office accommodation, NIA increasing from 2,294 sq m to
3,314 sq m (44% uplift), plus commercial amenity space on
first and fifth roof levels
• Facade enhancements to existing building, improvements to
the ground floor entrance and public realm
• Car parking provision retained within basement and cycle
parking provided
The response from the council is overwhelmingly positive for a
design led redevelopment as proposed.
47 CLARENDON ROAD • WATFORD • WD17 1HP#9
47 CLARENDON ROAD • WATFORD • WD17 1HP#10
OPPORTUNITY TO
REPOSITION THE
BUILDING IN A
CONTEMPORARY
STYLE AS HAS BEEN
DONE RECENTLY ON
CLARENDON ROAD WITH
EXCELLENT RESULTS.
GNR8 - formerly Victoria House
40 Clarendon Road Hyde
47 CLARENDON ROAD • WATFORD • WD17 1HP#11Ground
PROPOSED FLOOR PLANS
Basement
First
9 Cycles 8 Cycles
POTENTIAL PRE-APP SCHEME (NET INTERNAL AREA)
Floor Office Terrace
Typical Second / Third / Fourth
Fifth 420 sq m 4,517 sq ft
Fourth 539 sq m 5,800 sq ft
Third 539 sq m 5,800 sq ft
Second 641 sq m 6,900 sq ft
First 641 sq m 6,900 sq ft 439 sq m 4,723 sq ft
Ground 725 sq m 7,803 sq ft
Reception 229 sq m 2,469 sq ft
Total 3,314 sq m 35,672 sq ft 859 sq m 9,240 sq ft
47 CLARENDON ROAD • WATFORD • WD17 1HP#12WATFORD MARKET
OVERVIEW
• The total office stock for Watford is approximately 4.6 million sq ft and
this includes both the town centre and out of town markets.
• These statistics do not include the fact that
• Rents in the town have hit a new high of £36.50 psf at Columbia TJX Europe (TK Maxx) will start to occupy
Threadneedle’s 40 Clarendon Road, which is refurbished Grade A as its newly constructed 200,000 sq ft HQ on
opposed to brand new Grade A. Record rent Clarendon Road during 2021 while retaining
• Rents approaching £40.00 per sq ft might be expected in the next 24-36 achieved in 2020 a proportion of its current estate.
months for the very best space. and sustained in • Key supply of c.370,000 sq ft comprising
• Since June 2020, take-up of 100,000 sq ft and further space under subsequent letting. 170,000 sq ft in the town centre, 60,000
offer despite the Covid pandemic, other business headwinds, and a sq ft on Croxley Park and 134,330 sq ft
diminished choice of space for occupiers. elsewhere out of town, most notably 97,748
sq ft tenant space at Leavesden on behalf
of ASOS.
• A notable lack of Grade A office readily
available, only L&G’s 68,000 sq ft HYDE
refurbishment and the 10,000 sq ft floor
• Take-up shows a 5 year average of over 200,000 sq ft per
at Columbia Threadneedle’s 40 Clarendon
annum in Watford.
Watford is the largest Road provide high quality Landlord space.
• The total take-up for whole of the NW M25 in the past 5 years
and most dominant equates to 2,500,000 sq ft meaning that Watford is responsible
Less than 2 years • A new building of 80,000 sq ft is under
office market in the supply based on construction at Croxley Park, known
for 45% of all take-up.
as Building 1, following the successful
north London and • An interesting highlight of 2020 is that none of the tenants were typical take-up. development of the fully let Building 2.
North M25 sector. originally from Watford but attracted from Harrow, Southall,
Uxbridge, St Albans, Radlett and Denham. This suggests there
is still outstanding churn to come from indigenous Watford
occupiers as would be typical in other years.
47 CLARENDON ROAD • WATFORD • WD17 1HP#13KEY TAKE-UP IN WATFORD
Date Address Size (sq ft) Tenant Lease Details Rent (psf) Landlord
U/O Royalty House, 10 King Street 23,379 Magistrates Court TBC TBC Aviva
Department of Work &
Jan 21 Egale 2, St Albans Road 17,076 5 year lease, 3 year break, 5 months’ rent free £32.00 Columbia Threadneedle
Pensions
Jan 21 GNR8, 49 Clarendon Road 1,907 Parasol Homes Ltd 5 year lease £34.75 RO Real Estate
Oct 20 1 Blackmoor Lane, Croxley Park 10,147 Clinisupplies 11 year lease, 6 year break , 12 months’ rent free £19.71 Watford Borough Council
Oct 20 Ground Floor, 40 Clarendon Road 8,696 15 Marketing 10 year lease, 5 year break, 12 months’ rent free £36.50 Columbia Threadneedle
St Andrews House, Belfry Business Park, SpaMedica
Oct 20 c.8,000 10 year lease, 5 year break and 6 months’ rent free £25.00 Columbia Threadneedle
Colonial Way (Medical Use)
10 year lease, 5 year break, 18 months’ rent free
Aug 20 Part Ground Floor, B3, Croxley Park 14,230 Vibrant Foods £27.60 av. Watford Borough Council
(6 month rf or pen on break)
Aug 20 Part 2nd Floor, B4, Croxley Park 10,045 CSL DualCom 10 year lease, 6 year break, 19 months’ rent free £28.50 Watford Borough Council
June 20 2nd, 3rd & 4th, 40 Clarendon Road 28,211 PwC 15 year lease, 10 year break, 22 months’ rent free £36.50 Watford Borough Council
20 year lease, no breaks, 5 yearly rent review,
Oct 19 Egale 2, 78 St Albans Road 17,071 Finest Dental £31.00 Columbia Threadneedle
31 months’ rent free
May 19 2 Century Court, Tolpits Lane 9,500 Direct Save Telecom Freehold sale £1.7m £179 F/H Private vendor
Oct 18 Building 2, Croxley Park 20,712 Regus 10 year lease, 28 months’ rent free £32.00 Columbia Threadneedle
Oct 18 Building 6, Leavesden Park 9,548 Mane Contract Services 10 year lease, 5 year break, 9 months’ rent free £21.50 Warner Bros
Sept 18 Hercules Way, Leavesden Park 123,796 ASOS 15 year lease £26.00 Kennedy Wilson
June 18 Building 4, Croxley Park 7,375 Yopa 10 year lease, 5 year break, 6 months’ rent free £28.50 Columbia Threadneedle
May 18 36 Clarendon Road 28,000 Salmon 15 year lease, 18 months’ rent free £31.50 Boultbee Brooks
April 18 Building 7, Croxley Park 6,222 Starleaf 10 year lease, 5 year break, 7 months’ rent free £28.00 Columbia Threadneedle
2nd Floor, Sunningdale, 10 year lease, 5 year break 18 months’ rent free
Feb 18 6,106 Data Locater £25.50 Columbia Threadneedle
The Belfry, Colonial Way (6 month break penalty)
47 CLARENDON ROAD • WATFORD • WD17 1HP#14SUPPLY Building Size sq ft Rent per sq ft Spec Landlord
Town Centre
The redevelopment of 47 Clarendon
40 Clarendon Road 1st - 10,233 £36.50 Grade A refurb Columbia Threadneedle
Road would provide much needed new
office space in a very undersupplied
market. While there is seemingly 1st - 10,795 £30.00 FIS Global - tenant space Tenant (expiry May 2023)
Lucidus House, 2nd – 10,705 £28.50 passing TJX – tenant space Tenant (expiry Feb 2023)
a healthy pipeline of potential
41-43 Clarendon Road 3rd – 10,709 £28.50 passing TJX – tenant space Tenant (expiry Feb 2023)
developments, with a 5 year average of 4th – 9,307 £28.50 passing TJX – tenant space Tenant (expiry Feb 2023)
take-up over 200,000 sq ft pa, the space
under construction /refurbishment
HYDE, 38 Clarendon Road 68,587 £37.00 Grade A refurb L&G
could be swiftly soaked up.
Other schemes are hampered by Gnd - 16,788 £24.58 passing Europcar space Tenant (break in Aug 26)
their size and complexity, may not be Oak House, Reeds Crescent Pt 1st - 8,920 £30.00 Grade B+ FI REM (for administrator)
Pt 2nd - 6,663 £30.00 Grade B+ FI REM (for administrator)
developed in the short term and may
never get out of the ground in their
current guise. Egale 1, Station Road 3rd - 5,886 £32.50 Grade A Columbia Threadneedle
A scheme of the size proposed for 47 6th - 6,732
The Junction, Station Road Dentons – tenant space Tenant (break in Aug 21)
Clarendon Road is a manageable and 7th – 6,728
fundable size and could be relatively
quickly brought to market to deliver in to Out of Town
a very under-supplied 2023 market.
B1, Croxley Park 80,000 TBA New build p.c. Q1 2021 Watford Borough Council
1st floor refurbished and
B3, Croxley Park 15,046 £30.00 Watford Borough Council
2nd floor to follow
2nd floor refurbished and
B4, Croxley Park 19,682 £30.00 Watford Borough Council
1st floor to follow
B6 Croxley Studios, 8 suites from 1,499 - 6,819 sq ft
£28.50 Mostly due refurbishment Watford Borough Council
Croxley Park totalling 27,735 sq ft
Gleneagles, 13 Colonial Way 5,411 £26.50 Grade B+ Columbia Threadneedle
Building 2 – 4,247
Building 3 – 4,620
Axis, Rhodes Way £25.00 Grade B+ REIM
Building 4 – 7,131
Building 5 – 5,173
6 Hercules Way, Leavesden Park c. 10,000 £23.50 Grade B+ Warner Bros
Headquarter building leased by ASOS potentially
ASOS, 100 Hercules Way,
97,748 £26.00 Grade A tenant space available but suits larger 20,000 sq ft+ requirements
Leavesden Park
better due to size and configuration.
47 CLARENDON ROAD • WATFORD • WD17 1HP#15DEVELOPMENT PIPELINE
Medium-term
53 Clarendon Road
Area: 104,260 sq ft NIA consented with 166 car spaces (1:628 sq ft)
Immediate Owner: Seven Capital
Comment: Cleared site but no firm plans to start construction. Previously had consent
54 Clarendon Road for c.55,000 sq ft office and 59 residential units that was considered
unbuildable / unviable.
Area: 29,830 sq ft NIA with planning permitted to extend
to c.50,000 sq ft
Owner: Canada Life
Comments: Addition of 4th floor and rear extension due to Medium-term
commence in early 2021. Parking reduced from 88
spaces to 66 spaces providing a ratio of 1:757 sq ft. 48-50 Clarendon Road
Area: 59,620 sq ft NIA existing. Planning
consent for 67,900 sq ft NIA with
61 car spaces (1:1,113 sq ft) plus
100 residential units
Owner: Verdose
Comments: Occupied by TK Maxx short
term, holding over under L&T Act
as accommodates critical IT.
Current design requires both the
residential and office scheme
to be built simultaneously with
shared basement. Agents been
marketing the scheme for sale but
unviable at the level sought.
Medium-term
Medium-term
Milbuck House & Hannay House,
Cassiobury House, 11-19 Station Road 37-39 Clarendon Road
Area: 36,179 sq ft NIA office with Area: 50,208 sq ft NIA existing. Planning
planning application to consent for 111,902 sq ft NIA offices
redevelop to a 168 bed hotel with 150 car spaces (1:746 sq ft) and
and c.40,000 sq ft office with 154 residential units over 23 levels
70 car spaces (1:571 sq ft) Owner: Clarendon Road Developments Limited
Owner: Tellon Capital Comments: Current design requires both the
Comment: Multi-let with latest expiries residential and office scheme to be
in late-2021. Scheme requires built simultaneously with a new, shared
both elements be built basement on 3 levels.
simultaneously with shared
basement.
47 CLARENDON ROAD • WATFORD • WD17 1HP#16INVESTMENT COMPARABLES EXECUTIVE SUMMARY
Horizon, 28-38 Upper High St, Epsom
Area: 21,819 sq ft
Fully refurbished in 2017
Tenancy: Single let to the NHS on new 10 year lease
Continued appetite for well located, town
Rent: Rent of £425,000 pa (£20.00 psf)
centre assets and value add opportunities.
Vendor: Kennedy Wilson
Owner: Sold to CIFCO Capital Ltd (Babergh D.C.) (December 2020)
• Existing building of 24,038 sq ft NIA with
Comments: £7.97m / 5.00% / £365.28 psf 85 car spaces at basement and grade
Radius House, 51 Clarendon Road, Watford
Area: 35,977 sq ft • Positive pre-app to extend the building
Tenancy: Multi-let to 3 tenants to 35,672 sq ft NIA
8.1 years WAULT
Rent: Reversionary rent of £754,800 pa
(£20.98 psf)
Vendor: M&G • Potential for more comprehensive
Owner: Sold to CLS Holdings (December 2020) redevelopment or massing
Comments: £16.9m / 5.60% / £469.74 psf
• Located on the north M25’s pre-eminent
office pitch
• Record rents recorded on Clarendon
Road in 2020 and expected growth
• Limited Grade-A office space and
development pipeline
• Watford has seen sustained take-up in
H2 2020 and Q1 2021
Honeywell House, Bracknell 10 Bricket Road, St Albans • Further notable office deals in detailed
Area: 72,379 sq ft Area: 26,436 sq ft
negotiations
Recent in-situ refurbishment £9.05m / £342 psf
Tenancy: Single let to Honeywell UK Ltd Vendor: Columbia
10.5 years to expiry Threadneedle
Rent: Rent of £1,870,401 pa (£26.00 psf) Owner: Sold to Canmoor and
Vendor: Legal & General Legal & General with
Owner: Sold to Runnymede B.C. (March sub-1 year income in
2020) late 2019 for major
Comments: £32.8m / 5.37% / £453.17 psf repositioning
47 CLARENDON ROAD • WATFORD • WD17 1HP#17TENURE FURTHER INFORMATION / DATA ROOM
Freehold held under Title number HD375698. Further planning, technical, Title and scheme information can be found in the
Data Room.
TENANCY Please request further information or Data Room access from one of the agents.
Mapeley will take a 12 month lease of the 2nd floor at £69,330 per
annum (£10 per sq ft). PROPOSAL
Mapeley will have the option to extend this occupation for a further Offers are invited for the freehold interest.
3 months with 3 months prior notice.
VIEWINGS
VAT
Viewings are strictly by appointment only. Please contact the sales agents to
The property is elected for VAT purposes. arrange an inspection.
It is the intention of the vendor to treat this transaction as a Transfer
of a Going Concern (TOGC).
EPC
The property has an EPC rating of C-60 and the documents are
available in the Data Room.
AML
Peter Brown Rob Bray
In accordance with Anti-Money Laundering (AML) Regulations, the
T: 01923 205 521 T: 07768 800 280
purchaser will, at Heads of Terms stage, be required to satisfy the M: 07740 170 458 E: robbray@brayfoxsmith.com
vendor on the source of the funds used to complete the transaction. E: peter.brown@brasierfreeth.com
James Shillabeer
Tim Howlings
TECHNICAL M: 07824 663 594
T: 01923 205 524 E: jamesshillabeer@brayfoxsmith.com
A number of technical items are available and are downloadable via M: 07702 884 402
the Data Room. E: tim.howlings@brasierfreeth.com
Disclaimer: The agents for themselves and for the vendors or lessors of this property whose agents they are give notice that: (i) the particulars are set as a general outline only for the guidance of intending purchasers
or lessees and do not constitute the whole or any part of an offer or contract: (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in
good faith but without any responsibility whatsoever and any intending purchasers or tenants should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise
as to the correctness of each of them; (iii) neither the agents nor their employees has any authority to make or give any representation or warranties whatsoever in relation to this property; (iv) unless otherwise stated
all prices and rents are quoted exclusive of VAT, and intending purchasers or lessees must satisfy themselves independently as to the applicable VAT position. (v) All the plans and maps provided within the particulars
are for identification purposes only. February 2021.You can also read
