bedford square BrochureV3 · 2013. 5. 15. · ARL T E S T REET E N D E L L S T B T TOTTENHAM...

FREEHOLD OFFICE INVESTMENT49-51 BEDFORD SQUARE LONDON WC1

INVESTMENT SUMMARY

• Prime Bloomsbury Location

• Freehold

• Three Grade I Listed former Georgian townhouses with

interconnecting rear mews building

• Comprehensively refurbished in 2011

• Approximately 23,477 ft² (2,181 m²) net internal area and an

estimated 33,372 ft² (3,100 m²) gross internal area

• Entirely let on FRI terms to Bloomsbury Publishing Plc until

January 2031, subject to a tenant’s break option in January 2021

(approximately 8.5 years term certain)

• Currently producing £630,000 per annum exclusive reflecting

£26.83 per ft² overall or £31.95 per ft² on best office space

• Offers in excess of £11,900,000 subject to contract and exclusive

of VAT reflecting a net initial yield of 5.00% and an estimated

equivalent yield of 5.72%

• A capital value of only £507 per ft² on NIA and approximately

£357 per ft² on GIA

RATIONALE

• Rare opportunity to buy three Grade I Listed former townhouses

in a prime Bloomsbury location

• Long term income to undoubted covenant

• We believe the property is reversionary and has an estimated

rental value today of approximately £33.65 per ft² overall or

£40.00 per ft² on best office space

• Long term change of use potential to residential or hotel uses or

for owner occupation, subject to necessary consents and securing

vacant possession

• Long term potential to divide the property into four separate

holdings

• Very low capital value per ft² - in recent years, other freehold

buildings in Bedford Square sold with vacant possession have

achieved over £750 per ft² on NIA and £500 per ft² on GIA

49-51 BEDFORD SQUARELONDON WC1

Mews Rear Elevation

Lower Ground Courtyard

Lorem Ipsum Dolor

Conservatory Extension to Mews


Bedford Square is strategically located mid way

between the City and West End in a sub-market of

Midtown called Bloomsbury. Bloomsbury is noted for

its cultural, educational and healthcare institutions

and its close proximity to the vibrant retail and leisure

amenities of Oxford Street and Covent Garden.

The area to the west of Bedford Square is favoured by

the media sector and to the east and north are large

institutions such as The University College London,

Birbeck, University College Hospital and the British

Museum. Other major occupiers include Great

Ormond Street Hospital, The Wellcome Trust, Bupa,

Fremantle Media, Time Out, Emap and Google.

Public transport facilities to Bedford Square are

excellent with Tottenham Court Road Underground

Station (Central and Northern lines) a short walk to

the south.

Goodge Street (Northern Line), Russell Square

(Piccadilly Line) and Warren Street (Victoria and

Northern Lines) underground stations are also located

within a short walking distance.

Mainline train services are situated within a

10-15 minute walk to Euston and Kings

Cross/St Pancras which also has international

connections to Europe via Eurostar.

Tottenham Court Road also forms part of

Crossrail which is scheduled to open in 2017

and will dramatically improve London’s wider

transport systems. The Crossrail link will

provide a new high frequency railway service

connecting Maidenhead and Heathrow in the

west to Shenfield and Abbeywood in the east

and will transform accessibility into the

immediate area.

The surrounding area will also benefit from

the major regeneration projects planned for

the eastern end of Oxford Street and will

include the provision of a public piazza

outside Centre Point and an improved

pedestrian environment.

LOCATION

26.8m

BLOOMSBURY

STREET

SQUARE

BEDFORD

50

5453

45

5856

25

BEDFORD AVENUE

0m 5m 10m 15m

Ordnance Survey © Crown Copyright 2012. All rights reserved. Licence number 100020449.Getmapping plc 2012. Plotted Scale - 1:464


E

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OXFORD STREET

NEW

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MORTIMER STREET

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WO

BURN PLACE

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CAVENDISH ST

GUILFORD STREET

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GREAT PORTLAND STREET

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RD

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CHA

RLOTTE STREET

ENDELL ST

BOW ST

TOTTENHAMCOURT ROAD

RUSSELLSQUARE

GOODGESTREET

TNDT

HOLBURN

OXFORDCIRCUS

LEICESTERSQUARE

COVENTGARDEN

BritishMuseum

RussellSquare

SohoSquare

BedfordSquare

RoyalOperaHouse

SOHO

NOHO

HOLBORN

COVENTGARDEN

BLOOMSBURY

78

65

4

2

1

3

9

LOCAL ACTIVITY

Tottenham Court Road Underground Station & Crossrail

On completion of the scheduled works in 2018, the number of people using the station is expected to double matching the number of pedestrians currently using Oxford Circus. Improvements are planned to public spaces, public realm and the creation of new bus and cycle routes.

Centre Point

Property companies Almancantar and Frogmore are seeking a planning consent to convert this landmark tower into a luxury residential led scheme to include 80 flats, 44,000 sq ft of A1 / A3 accommodation and a new public square. Completion is scheduled for 2015.

Central St Giles

Legal and General’s new development provides over 400,000 sq ft of high specification offices in addition to retail, restaurants and 109 residential apartments. Occupiers include Google, NBC Universal, WPP Group, Specific Media Ltd and Mindshare.

Central Cross, 1 & 2 Stephen Street

Derwent London has plans to extend and improve this landmark mixed-use property over the next few years. Phase 1 & 2 include an office refurbishment and extension.

Fitzroy Place

Aviva and Exemplar have secured planning permission to develop a 3 acre site that will include 237 private dwellings, 54 affordable homes, 210,000 sq ft of offices in two office buildings and approximately 21,000 sq ft of retail and restaurants. Completion is scheduled for late 2014.

14-18 Oxford Street & 3 Tottenham Court Road

underground station.

1 Oxford Street

Derwent London with Crossrail intend to develop a mixed use scheme above the station that will comprise over 200,000 ft² of offices, 37,000 ft² of retail and a 350 seat theatre. Work is intended to commence in 2017.

80 Charlotte Street

Derwent London plc has secured planning permission for a mixed use development of Saatchi & Saatchi’s current offices. The scheme will provide approximately 320,000 ft² of offices, retail and residential with completion expected in 2015.

35-50 Rathbone Place (Post Office Sorting Office)

Great Portland Estates recently acquired a 2.3 acre site and are planning a new application that will comprise a substantial mixed use scheme and public realm improvements.

In October 2012, Primark are scheduled to open a new store of approximately 80,000 ft² opposite the new entrance to the underground station.

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There is a mix of perimeter and under

floor trunking with part raised floors and

suspended ceilings in the rear mews.

The entire property was subject to a

comprehensive refurbishment in January

2011. These works included an upgrade

and extension of the comfort cooling

system, a refurbishment of the lifts and a

full redecoration of the offices and

common parts.

The gardens in the Square are private

with access restricted to local residents

and office occupiers.

DESCRIPTION

and office occupiers.

Ground Floor Rear

First Floor Front

Bedford Square was built between 1775 and

1780 and is the only complete and intact

Georgian Square in London.

49-51 Bedford Square comprises a mid terrace

of three inter-connecting Grade I listed

Georgian townhouses arranged over lower

ground, ground and three upper floors and a

separate 1980’s rear mews building on lower

ground, ground and two upper floors. The front

and rear buildings are linked at lower ground

and ground floors and there is an attractive

central courtyard which provides daylight to

the lower ground floors. The mews building

also benefits from a large conservatory and

direct access to Bedford Avenue.

The front buildings typically comprise large

elegant rooms on ground, first and second

floors with stunning views over the Square.

All three buildings on Bedford Square are linked

at all levels and each has an elegant

cantilevered staircase with access to WC

accommodation. There are stucco decorations

throughout and a large number of period

marble fireplaces. Two passenger lifts service

all floors from each end of the building.

The rear mews building has a modern layout

with open plan rectangular floor plates with

good levels of natural light.

There is a large conservatory overlooking the

courtyard which is currently used by the tenant

as a break-out area.

A further lift provides access to all floors and

wheel chair access via the Bedford Avenue

entrance. The landlords office specification

includes central heating, comfort cooling to

the ground floor of the front buildings and the

rear basement, ground and second floors of

the mews.


ACCOMMODATION

The property has the following approximate net internal floor areas:-

Floor Use Ft² M²

49-51 Bedford Square

3rd Office 2,746 255

2nd Office 2,945 274

1st Office 3,046 283

Ground Office 2,525 235

Ground Reception 399 37

Lower Ground Office 2,143 199

Lower Ground Vaults 663 62

Sub-Total 14,467 1,344

Mews Building

2nd Office 1,305 121

1st Office 2,163 201

Ground Office 1,782 166

Ground Conservatory 567 53

Lower Ground Office 3,193 297

Sub-Total 9,010 837

TOTAL 23,477 2,181

Each front building comprises approximately 4,500 ft² net internal

area. The gross internal area is estimated to be approximately

33,372 ft².

PLANNING

The entire terrace of 40-53 Bedford Square is Grade I listed and lies

within London Borough of Camden’s Bloomsbury Conservation Area.

The current planning use for 49-51 Bedford Square is B1 offices. Local

planners have indicated that buildings can be converted back to their

original residential use (subject to necessary consents) and over the

last few years four properties on the south side of the Square have

obtained planning consent for conversion to residential use.

GROUND FLOOR PLAN TYPICAL UPPER FLOOR PLAN

Lift

Lift

SKY

Lift

Office

Lightwell

Lift

Lift

Lightwell

Lightwell Lightwell Lightwell

Lightwell

Conservatory

Plans not to scale. For indicative purposed only.

Lift


COVENANT

Bloomsbury Publishing Plc is an independent, worldwide

publishing house of fiction and non-fiction with offices in

London, New York, Sydney and New Delhi publishing over

1,000 books per year. The company’s growth over the past

decade is largely attributable to the Harry Potter series by J. K.

Rowling. 50 Bedford Square is the London Headquarters for

the company where they employ over 350 people.

The accounts for Bloomsbury Publishing Plc show a turnover to

the year ending February 2012 of £103.2 million and a pre-tax

profit of £4.8 million with net assets of £109 million. They

have an Experian rating of ‘A’ which is described as ‘very

low risk’.

Further information can be found at www.bloomsbury-ir.co.uk

and www.bloomsbury.com.

TENANCY

The entire property is let to Bloomsbury Publishing Plc for a

term of 20 years from 10th January 2011 expiring 9th

January 2031. The lease is subject to a tenant only break

option on 9th January 2021 on six months written notice. In

the event the tenant does not exercise the break option, they

are entitled to a rent free period for 9 months from 10th

January 2021 to and including 9th October 2021.

The lease is ‘inside’ the Landlord & Tenant Act 1954 and rent

reviews are 5 yearly and upwards only, the next falling on

10th January 2016.

The rent passing is £630,000 per annum which can be

analysed to reflect £26.83 per ft² overall or approximately

£31.95 per ft² on best office space. As an alternative to rent

free, the tenant is currently paying ‘half rent’ (ie £315,000pa)

until 10th January 2014 after which the ‘full rent’ (ie

£630,000pa) becomes payable and it is the vendors intention

to top-up the rent to the full amount until this time.

Ground Floor FrontCentral Courtyard


TENURE

The property is held freehold.

ESTIMATED RENTAL VALUE

We believe the property has an estimated rental value today in the

region of £790,000 per annum which reflects £33.65 per ft² overall

(£40.00 per ft² on best office space). Adopting a market rent free

period, we estimate the net effective ERV today is £740,000 per

annum which reflects £31.52 per ft² overall (£37.50 per ft² on best

office space).

The rent review provisions are institutional with the usual

assumptions and disregards (such as tenant improvements) and the

assumed term is 10 years from the relevant review date.

VAT

The property has been elected for VAT and it is proposed the sale

will be structured as a TOGC.

CAPITAL ALLOWANCES

There are no capital allowances available to a purchaser.

PROPOSAL

We are instructed to seek offers in excess of £11,900,000 subject to

contract and exclusive of VAT. This reflects the following yield profile:

Net Initial Yield: 5.00%

Equivalent yield: 5.72%

Yield in 01/2016 based on our estimate of ERV: 5.88%

Reversionary yield off headline ERV: 6.27%

A sale at this price also reflects a capital value of only £507 per ft² on

NIA and approximately £357 per ft² on GIA.

Third Floor Rear Mews Ground Conservatory First Floor Rear


For further information or to arrange an inspection,

please contact:

James Maclachlan

DD: 020 7858 6865

M: 07798 698982

Email: [email protected]

Paul Rowntree

DD: 020 7858 6863

M: 07825 507523


James McAdden

DD: 020 7858 6869

M: 07825 507526


Subject to Contract and Exclusive of VAT.Kingly Partners LLP for themselves give notice that (i) these particulars do not constitute, nor constitute any part of, an offer or a contract; (ii) all statements contained in these particulars as to these properties are made without responsibility on the part of Kingly Partners LLP (iii) none of the statements contained in these particulars are to be relied on as statements or representations of fact; (iv) any intending purchasers must satisfy themselves by inspection or otherwise, as to the correctness of each of the statements contained in these particulars; (v) the vendors do not make or give, and neither Kingly Partners LLP nor any person in their employment has authority to make or give, any representation or warranty whatever in relation to this property. Unless otherwise stated, all prices and rents are quoted exclusive of Value Added Tax (VAT). Any intending purchasers must satisfy themselves independently as to the incidence of VAT in respect of any transaction. July 2012.

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bedford square BrochureV3 · 2013. 5. 15. · ARL T E S T REET E N D E L L S T B T TOTTENHAM...

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