01 143 new bond street, london, w1. · asprey, tiffany & co, giorgio armani, burberry, ralph...
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01 143 New Bond Street, London, W1.
INVESTMENT SUMMARY
143 New Bond Street is located in the heart of Mayfair on the west side of New Bond Street and opposite the world renowned Sotheby’s auction house.
Attractive Grade II listed mixed use building comprising retail, gallery, office and residential accommodation providing a total of 11,857 sq ft (1,102 sq m).
Long leasehold from The City of London for a term of 99 years (c.41 years remaining) at a fixed ground rent of £3,305 per annum.
Multi-let producing a total rental income of £1,130,000 p.a. reflecting a low passing rent of £599 ITZA on the retail element.
Asset management initiatives including re-gearing the headlease, enfranchising the residential apartment, extending the existing retail unit into the car park and extending the upper floors.
Offers in excess of £30,000,000 for the benefit of our client’s leasehold interest reflecting a net initial yield of 3.56% after deducting purchaser’s costs of 5.8%. A purchase at this level represents a capital value of only £2,530 per sq ft.
143 New Bond Street, London, W1. 02
03 143 New Bond Street, London, W1.
143 New Bond Street is located in the heart of Mayfair on the west side of New Bond Street and opposite the world renowned Sotheby’s auction house. The property occupies a mid-terraced position close to the junctions of Bruton Street and Conduit Street to the south and Grosvenor Street and Maddox Street to the north.
MAYFAIR AND BOND STREET
As the most connected retail and leisure location in the World, the West End attracts over 200 million shoppers annually spending in excess of £7.6bn. Consumer expenditure is predicted to increase to some £9.1bn per annum by 2016 with over 37% of shoppers coming from overseas and the remainder from either outside or across greater London.
Running from Oxford Street through to Piccadilly, Bond Street is known as Europe’s premier retailing destination offering the most exclusive and prestigious brands. Luxury retailers include Prada, Cartier, Chanel, Hermes, Asprey, Tiffany & Co, Giorgio Armani, Burberry, Ralph Lauren, Patek Philippe and Louis Vuitton to name but a few.
The West End, with Mayfair at the very heart, is ranked number one globally for international flagship designer stores with a world class mix of over 600 shops, 40 renowned theatres, 30 museums and galleries, 17 Michelin star restaurants and 7 green spaces.
Mayfair hotels and restaurants include The Ritz, Claridge’s, Brown’s, The Connaught, Cecconis, Scott’s, Harry’s Bar, Nobu, Gordon Ramsey, The Wolseley, Hakkasan, The Art’s Club and La Petite Maison.
LOCATION
143 New Bond Street, London, W1.05
143 New Bond Street, London, W1. 06
NEW BOND STREET
CONDUIT STREET
HERMES
CHANEL
DIOR
LOUIS VUITTON
THE RITZ
OLD BOND STREET
07 143 New Bond Street, London, W1.
BRUTON STREET
MOUNT STREET
BERKELEY SQUARE
143 New Bond Street, London, W1. 08
The most connected retail and leisure location in the World, the West End attracts over 200 million shoppers annually, spending in excess of £7.6bn
Not to scale. Indicative only.
COMMUNICATIONS
Mayfair benefits from excellent transport links with four key London Underground stations on its boundary.
Crossrail
Bond Street Underground Station is currently undergoing a major transformation to become a key hub of the Crossrail network. At present the station carries 155,000 passengers a day and once completed the capacity and footfall will increase to 225,000 people daily with commuters being able to travel from Heathrow Airport to Bond Street in just 26 minutes.
Due for completion in 2018, Crossrail will provide a new high speed train service providing thousands of commuters quick access into and across London. Linking Maidenhead and Heathrow Airport in the West through central London and across to Shenfield & Abbey Wood in the East, Crossrail will bring 1.5 million additional people within 60 minutes reach of London’s key business districts and will carry more than 200 million passengers a year.
143 New Bond Street, London, W1. 010
500
buses pass down Oxford Street every hour further interconnecting Oxford Street and Mayfair with the
whole of the capital
0.3 miles away
0.5 miles away
0.4 miles away
0.5 miles away
Oxford Circus Underground
Station
Piccadilly Circus Underground
Station
Green Park Underground Station
Bond Street Underground Station
011 143 New Bond Street, London, W1.
Artist’s impressions of the proposed Eastern Crossrail entrance for Bond Street station at Hanover Square
HEATHROWAIRPORT
HAYES &HARLINGTON
EALINGBROADWAY PADDINGTON
TOTTENHAMCOURT ROAD
CUSTOMHOUSEMAIDENHEAD WEST EALING ACTON
MAIN LINEBOND STREET FARRINGDON WHITECHAPEL
LIVERPOOLSTREET
WOOLWICH
ABBEY WOOD
STRATFORD SHENFIELDROMFORD
LutonGatwick
Heathrow
Stansted
CANARYWHARF
RO
YAL
ACAD
EMY
OF
A RTS
ROYAL ACADEMY OF ARTS
MU
SEU
M&
ART
GAL
LER
Y
MUSEUM & ART GALLERY
ALBEMARLE STREET
BUR
LIN
GT O
NG
ARD
E NS
NEW BOND STREET OLD BOND STREET
STAF
FOR
DST
REE
T
ALBEMARLE STREET
PIC
CAD
ILLY
BRU
TON
STR
EET
GR
AFTO
NST
REE
TOXF
ORD
STR
EET BR
OO
K ST
REE
T
BOND STREET RETAIL
143 New Bond Street, London, W1. 012
RO
YAL
ACAD
EMY
OF
A RTS
ROYAL ACADEMY OF ARTS
MU
SEU
M&
ART
GAL
LER
Y
MUSEUM & ART GALLERY
ALBEMARLE STREET
BUR
LIN
GT O
NG
ARD
E NS
NEW BOND STREET OLD BOND STREET
STAF
FOR
DST
REE
T
ALBEMARLE STREET
PIC
CAD
ILLY
BRU
TON
STR
EET
GR
AFTO
NST
REE
TOXF
ORD
STR
EET BR
OO
K ST
REE
T
013 143 New Bond Street, London, W1.
143 New Bond Street is located in the heart of Mayfair on the west side of New Bond Street and opposite the world renowned Sotheby’s auction house.
143 New Bond Street, London, W1. 014
015 143 New Bond Street, London, W1.
DESCRIPTION
Originally built in the mid-18th Century, 143 New Bond Street was rebuilt behind a Grade II listed façade in 1957 and comprises a modern and attractive mixed use building providing retail, gallery, office and residential accommodation. Arranged over lower ground, ground and six upper floors the property provides a total of 11,857 sq ft (1,102 sq m).
The retail unit is arranged over lower ground and ground floors totalling 3,261 sq ft (303 sq m) and benefitting from 9m of prime retail frontage to New Bond Street. The upper floors provide gallery/office accommodation at first floor level, self-contained offices over second to fifth floors and a residential apartment on 6th floor with balcony and stunning views over New Bond Street and the West End. The upper floors are accessed via a separate dedicated entrance also from New Bond Street. A car park affording 7 spaces and totalling 1,903 sq ft (176.8 sq m) is provided at basement level and is accessed from Bruton Place.
143 New Bond Street, London, W1. 016
017 143 New Bond Street, London, W1.
143 New Bond Street, London, W1. 018
019 143 New Bond Street, London, W1.
143 New Bond Street, London, W1. 020
First floor gallery
021 143 New Bond Street, London, W1.
143 New Bond Street, London, W1. 022
LOWER GROUND FLOOR
GROUND FLOOR
TYPICAL UPPER FLOOR (2nd)
W/C
W/CLift
Office
New
Bo
nd
Str
eet
Lift
Retail
New
Bo
nd
Str
eet
W/C
W/C
Car Park
Car Park Gate
New
Bo
nd
Str
eet
Not to scale. Indicative only.
ACCOMMODATION
FLOOR USE AREA (SQ FT) AREA (SQ M)
Sixth Residential 882 82.0
Fifth Offices 864 80.2
Fourth Offices 960 89.1
Third Offices 965 89.7
Second Offices 983 91.3
First Offices/Art Gallery 2,039 189.4
Ground Retail 2,691 250
Zone A Retail 642 59.6
Zone B Retail 737 68.5
Zone C Retail 869 80.7
Zone D Retail 443 41.2
(ITZA) (Retail) (1,283) (119.2)
Basement Storage 570 53.0
Basement Car Space (7) 1,903 176.8
TOTAL 11,857 1,101.6
023 143 New Bond Street, London, W1.
143 New Bond Street, London, W1. 024
TENANCIES
Multi-let in accordance with the tenancy schedule below producing a total rental income of £1,130,000 p.a.
TENANT FLOORS USE AREA SQ FT
AREA SQ M
LEASE TERM
RENT REVIEW(BREAK)
RENT PA (PSF)
COMMENTS
Molyneux Rose LLP Sixth Residential 882 82 25/03/2011 - 24/03/2016
N/A £139,000(£51.36)
– Lease guaranteed by MJ Gillies, MR Little, JR Lochrane and CM Tippets.
– 6th floor sublet to Molyneux Investments Ltd.
– 5th floor sublet to Pelican Partners (Peterborough) LLP.
– Rent psf does not include car parking.
Fifth Offices 864 80
Fourth Offices 960 89
Basement Car Spaces (7)
1,903 177
Whitebox Advisors London LLP
Third Offices 965 90 14/07/2011-13/07/2016
£50,000(£51.81)
– Outside the Security of Tenure provisions of the Landlord & Tenant Act 1954.
– Rent deposit of £36,000 held.
– Service charge cap of £10,000 pa subject to RPI linked uplifts.
– Break subject to penalty of £8,333 paid 6 months prior.
Pivotal Holdings Ltd
Second Offices 983 91 £50,000(£50.86)
– Leaseback of the second floor to the vendor with terms to be agreed.
Ayyam Gallery London Ltd
First Offices or Art Gallery
2,039 189 26/06/2012-25/06/2022
26/06/2017(26/06/2017)
£116,300(£57.04)
– Outside the Security of Tenure provisions of the Landlord & Tenant Act 1954.
– Rent deposit of £100,170 held.
– Service charge cap of £25,200 pa subject to RPI linked uplifts.
– Rent reviewed to higher of A1 or B1.
– If break not operated 6 months at 50% of rent from 26/06/2017 to 25/12/2017.
Ralph Lauren London Ltd
Ground Retail 2,691 250 24/06/2001-23/06/2026
24/06/2016 &
24/06/2021
£775,000 (£599 ZA)
– Let on effective full repairing and insuring lease.
(ITZA) Retail (1,283) (119)
Basement Storage 570 53
TOTAL 11,857 1,102 £1,130,300
025 143 New Bond Street, London, W1.
18.1m
19.9m
18.8m
20.1m
16.8m
19.6m
LB
LB
Bs
CycleHire
Station
Post
Cycle Hire
Station
BRUTON STREET
BLOOMFIELD PLACE
STG
EOR
GE
STREET
NEWBOND
STREET
BOU
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ON
STREET
BRUTON PLACE
MADDOX STR
shireCourt
BARL
56
8
1
5
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Chu
33
26
3534
45
53
12
26a
26
38
36
40
5755
1123
127
5
1to12
46
27
2928
4645
59a
11
144
143
39
4241
44
31
El SubSta
136
135
129
128
160
158
to15
9
157
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3
1 to 20
1
3
23
21
35
Bank
Nash House13
713
7
140
1
25
33
28
135
149
25
32
26
32
7
79
83
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58
133
132
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Hotel
Grosvenor
Buildings
Bank
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Court
PH
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146
Bloomfield
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36
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14 to16
6to10
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743
131
22
2
19
49
48
12
13
40
50
41to43
84
150
20a
28
0m 10m 20m 30m
143 New Bond StreetLondon, W1
Ordnance Survey © Crown Copyright 2015. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250
TENURE
Long leasehold from The Mayor and Commonality and Citizens of the City of London for a term of 99 years from the 25th March 1958 (c.41 years remaining) at a fixed ground rent of £3,305 per annum.
Not to scale. For identification purposes only. This plan is based upon the Ordnance Survey Map with the sanction of the controller of H.M. Stationery Office. Crown Copyright reserved.
143 New Bond Street, London, W1. 026
027 143 New Bond Street, London, W1.
ASSET MANAGEMENT OPPORTUNITY
143 New Bond Street provides multiple existing and potential asset management opportunities including:
- Extension of existing retail unit into the car park
- Re-gear the head lease
- Extend the upper floors over the first floor gallery
- Dispose of / enfranchise the residential apartment
- Refurbishment of the office floors
- Asset management of the upcoming lease events
143 New Bond Street, London, W1. 028
MARKET COMMENTARY
DATE ADDRESS POSTCODE AREA (SQ FT)
TENURE PRINCIPAL RETAIL TENANT
PRICE NIY CAPITAL VALUE (PSF)
Q3, 2015 103 Mount Street W1 31,320 LLH Celine £81,000,000 3.00% £2,586
Q3, 2015 145 Oxford Street W1 8,147 FH Retro London £40,000,000 2.63% £4,910
Q1 2015 386 Oxford Street W1 2,541 FH Accessorize & Dr Martens
£23,100,000 2.25% £9,908
Q1 2015 155-157 Oxford Street W1 5,700 FH EE Limited £20,000,000 2.17% £3,509
Q1 2015 100 Knightsbridge SW1 2,781 VFH Rolex £22,250,000 1.70% £8,000
Q1 2015 105-109 Oxford Street W1 19,076 FH Footlocker & Tiger £42,500,000 2.50% £2,228
Q3 2014 130-134 New Bond Street W1 31,313 FH Breitling, Corneliani & Church’s
£210,000,000 2.26% £6,706
Q3, 2014 97 New Bond Street W1 9,994 FH HSBC £18,750,000 1.97% £1,876
Q3 2014 135-137 New Bond Street W1 19,691 FH Belstaff £110,000,000 2.57% £5,586
Investment
Demand for prime London property remains extremely strong as the market continues to see historically low interest rates whilst maintaining its appeal as a safe haven. As the most connected retail and leisure location in the World, the West End of London attracts over 200 million shoppers annually spending in excess of £7.6bn, underpinning London’s role as a premier retail destination and offering occupiers strong sales and footfall levels.
Availability of prime quality retail stock continues to be heavily outweighed by burgeoning demand by foreign and domestic investors leading to increased competition and yield compression. UK institutions and overseas investors continue to dominate the market seeking quality assets, wealth preservation coupled with asset management and growth opportunities.
Below we set out details of some recent retail led West End investment transactions:
143 New Bond Street, London, W1.
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172 New Bond Street
Date: Q4, 2014
Tenant: Moussaieff
£ITZA: £1,400
Transaction: RR
27 New Bond Street
Date: Q3, 2013
Tenant: Jimmy Choo
£ITZA: £850
Transaction: RR
15 New Bond Street
Date: Q1, 2015
Tenant: De Grisogono
£ITZA: £1,553
+ £6m premium
Transaction: OML
148 New Bond Street
Date: Q2, 2014Tenant: The Fine
Art Society
£ITZA: £855
Transaction: RR
163 New Bond Street
Date: Q1, 2013Tenant: Church’s
£ITZA: £1,100
Transaction: LR
147 New Bond Street
Date: Q1, 2014Tenant: Richard Green
£ITZA: £850
Transaction: RR
Occupational
Bond Street continues to be highly desired and revered by luxury brands due to its undoubted worldwide reputation as a premier retailing destination. Home to many flagship stores, the street has one of the strongest concentrations of luxury brands with retailers seeing a Bond Street presence as a ‘must have’ for brand growth and identity.
Rental growth remains extremely strong as demand for units on the street severely outstrips supply with large key money often being paid alongside record rents to secure limited opportunities amongst fierce competition.
Above we set out details of some recent retail led Mayfair occupational transactions
*The above information has been provided by 3rd parties and is subject to verification.
143 New Bond Street, London, W1. 030
EPC
PROPOSAL
VAT
143 New Bond Street has an EPC rating of E (124).
Offers in excess of £30,000,000 for the benefit of our client’s leasehold interest reflecting a net initial yield of 3.56% after deducting purchaser’s costs of 5.8%. A purchase at this level represents a capital value of only £3,013 per sq ft.
The property is VAT elected.
031 143 New Bond Street, London, W1.
143 New Bond Street, London, W1. 032
For further information or to arrange an inspection, please contact:
Mark Shipman
Direct Line: +44 (0) 20 7529 5708Email: [email protected]
Scott Lister
Direct Line: +44 (0) 20 7529 5704Email: [email protected]
FURTHER INFORMATION
Misrepresentations Act 1967 & Declaration:Michael Elliott and Wetherell for themselves and for the vendors of this property whose agents they are given 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 Michael Elliott nor Wetherell has any authority to make or give any representations or warranty whatever in relation to this property. September 2015
www.michaelelliott.co.uk
www.wetherell.co.uk
Peter WetherellDirect Line: 020 7529 5560Email: [email protected]
Robert Windsor Direct Line: +44 (0) 20 7529 5599Email: [email protected]