prime town centre office building investment & … · 2020-04-02 · apr-17 the malt house,...

1 WHEATFIELD WAY | KINGSTON UPON THAMES | SURREY | KT1 2TU

PRIME TOWN CENTRE OFFICE BUILDING

INVESTMENT & FUTURE DEVELOPMENT OPPORTUNITY

1 WHEATFIELD WAY | KINGSTON UPON THAMES | SURREY | KT1 2TU 2

RIVER THAMES JOHN LEWIS & WAITROSE

MARKET PLACE

EDEN WALK SHOPPING

CENTRE

KINGSTON RAILWAY STATION

PREMIER INN

1 WHEATFIELD WAY

BENTALL

CENTRE

A rare opportunity to acquire a prime Kingston upon Thames town centre office

building, comprising 6,351 sq ft of grade A space.

North wing ground floor suite, comprising 2,047 sq ft, let to Svenska Handelsbanken,

a major Scandinavian bank with 200 branches in the UK who hold a lease until 5th

February 2019.

Terms agreed with Svenska Handelsbanken to grant them a new 5 year lease from 6th

February 2019 at a rent of £55,759 per annum, reflecting £27.24 per sq ft.

The Vendors are prepared to top up the rent for the remaining space for a period of up

to 12 months at £113,290, reflecting approximately £28 per sq ft.

Prominently situated adjoining the prime retail pitch of Kingston town centre.

Prime rents in Kingston are now close to £30 per sq ft.

Town centre rents are set to see further rental growth as a result of a severe lack of

grade A supply and a minimal development pipeline.

Freehold opportunity.

Potential to increase the overall rental with future lettings of the vacant space.

The property is not subject to an Article 4 Direction, therefore allowing future

residential conversion.

Potential for a future office or new residential development, STPP, at a higher density.

PROPOSAL Offers are sought in excess of £2,500,000 (Two Million Five Hundred Thousand

Pounds), subject to contract and exclusive of VAT.


INVESTMENT SUMMARY

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LOCATION

Kingston is an affluent, historic London suburb located on the banks of

the River Thames and situated approximately 10 miles south west of

Central London.

Kingston is an established office location as well as providing one of the

largest retail centres in Greater London and the south of England. Office

occupiers are a mix of local and international companies which include

Unilever, Sitel and Saipem, whilst Surrey County Council’s Head

Quarters are located in the area. Major retailers include Bentalls and

John Lewis.

Kingston is also the home of Kingston University and Kingston College

with an estimated 20,000 student population.

Kingston is extremely well connected, being some 8 miles from J10 of the

M25 thereby providing access to the wider UK motorway network.

Kingston Railway Station provides a regular train service to London

Waterloo with an approximate journey time of 25 minutes. Also well

located to both Heathrow and Gatwick Airports, being approximately 8

miles to the north west and 24 miles to the south, respectively.

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SITUATION

The property occupies a prominent corner position situated at the junction of

Wheatfield Way and Penrhyn Road and directly facing Kingston Hall Road.

Kingston’s historic Market Place is within one minute’s walk as is the main shopping

centre, whilst Kingston University and County Hall, the HQ of Surrey County Council,

are approximately 200 metres from the premises. Kingston mainline railway station is

within 10 minutes walking distance.

DESCRIPTION

The property was constructed in 1990 and is arranged over ground and first floor

levels.

The property is of a concrete framed construction with brick elevations and a natural

slate weathered pitch roof.

SPECIFICATION

Internally the property is highly specified to a grade A specification:

A surfaced car park is located to the rear of the building providing 12 on site car

parking spaces, reflecting a ratio of 1:529 sq ft. The car park is approached from

Palmer Crescent via Knights Park.

− VAV air conditioning

− Full raised access floors

− Suspended metal tile ceilings

− Recessed LG7 lighting

− Double glazed windows

− 8 Person passenger lift

− Male, female and disabled WCs

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NIA GIA

Floor Suite Sq Ft Sq M Sq Ft Sq M

First

North Wing 2,190 203.5 2,332 216.75

South Wing 928 86.25 1,041 96.75

Reception - - 250 23.25

Ground

North Wing 1,934 179.75 2,247 208.75

Comms Room 113 10.5 - -

South Wing 928 86.25 1,041 96.75

Reception 258 24.0 378 35.0

TOTAL 6,351 590.25 7,289 677.25


ACCOMMODATION & FLOOR PLANS

The property has been measured in accordance with the RICS Code of Measuring

Practice (6th Edition) and the approximate Net Internal Areas (NIA) and Gross

Internal Areas (GIA) are as follows:

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Ground Floor

First Floor

SITE

The property extends

to approximately 0.21

acres (0.085 hectares).

Not to Scale - for indicative purposes only


TENANCY

Terms have been agreed with Svenska Handelsbanken to take a new lease of the ground floor north wing, thereby showing the following

tenancy details:

Demise Tenant Size Sq Ft

Rent £pa

Rent £psf

Lease Start

Lease End

L&T Act 1954

Ground Floor North & Comms Room Svenska Handelsbanken 2,047 55,759 27.24 6th Feb 2019 5th Feb 2024 Outside

Ground Floor South Vacant 928 - - - - -

Ground Floor Reception 258 - - - - -

First Floor North & South Vacant 3,118 - - - - -

TOTAL 6,351 £55,759

The Vendors are prepared to top up the rent for the vacant space outlined above for a period of up to 12 months by paying an annual rent of

£113,290. Should any lettings of the vacant space be completed within the 12 month period then a pro rata discount would then apply.

COVENANT INFORMATION

Handelsbanken, one of Sweden’s leading

banks, was founded in 1871 and now

operates over 800 branches worldwide

including over 200 UK branches offering full-

service banking facilities.

Handelsbanken have continually topped the

EPSI rating for customer satisfaction for both

corporate and individual customers.

£million*

2017 2016 2015

Total Income 3,636 3,557 3,519

Operating Profit 1,834 1,800 1,786

Total Equity 12,335 11,900 11,192

* At conversion rate SEK:GBP 1:0.087 as at 7th December 2018.


KINGSTON OFFICE MARKET

Kingston is characterised by a limited supply of all grades of office space,

whilst a lack of any new developments along with the loss of a great

amount of space to residential under Permitted Development means that

this situation is unlikely to change for the foreseeable future. However,

demand for office space in Kingston remains active with the

consequence that the area is likely to see good prospects for rental

growth exceeding current levels at £30.00 per sq ft.

Prime rents in the neighbouring markets of Wimbledon and Richmond

have progressed to £54.00 and £48.50 per sq ft respectively, whilst

Surbiton, an adjoining town, has achieved £36.00 per sq ft. KINGSTON £30.00

TWICKENHAM £32.50

RICHMOND £48.50

WIMBLEDON £54.00

SURBITON £36.00

PUTNEY £47.50

Date Address Size

Sq Ft Tenant Rent psf Comments

Aug-18 Burgoine Quay, Hampton Wick 18,000 Accenture £33.50 Re-gear of existing lease for 5 years.

May-18 Parc House, Kingston 1,294 Vertex Resourcing £29.37 6 year term, mutual breaks subject to 6 months’ notice.

Jan-18 The Factory, Kingston 2,916 Incite Out Ltd £27.50 5 year term.

Oct-17 DST House, Surbiton 8,832 Navisite £36.00 10 year term, break in year 5.

Apr-17 The Malt House, Kingston 2,550 Techtotal Ltd £27.50 5 year term, break at year 3.

Apr-17 The Malt House, Kingston 2,800 Protocol Education Ltd £28.50 10 year term, break at year 5.

Dec-16 Hind Court, Kingston 21,115 Kingston University £28.00 5 year term.

RENTAL COMPARABLES

SOUTH WEST LONDON RENT MAP

THE KINGSTON OFFICE MARKET IS

CONSTRAINED WITH VERY LIMITED

SUPPLY OF AVAILABLE OFFICE SPACE


FUTURE RESIDENTIAL DEVELOPMENT OPPORTUNITY

A great deal of Kingston Town Centre is subject to an Article 4 Direction which

prevents a change of use via Permitted Development Rights (PDR) from offices to

residential. However, 1 Wheatfield Way is located just outside the Article 4 Direction

area and could benefit from a future approval for conversion to residential. This could

establish the principle of residential on the site, thereby allowing potential for a new

residential development at a higher density.

Current residential values in the location appear to be supporting approximately £650 /

£700 per sq ft.

ASSET MANAGEMENT OPPORTUNITIES

The property offers a number of asset management opportunities including the following:

Drive up the rental income by creating new tenancies on the vacant office space.

Increase the height of the building to increase the net lettable area and rental

income.

Future residential conversion through the PDR policy or residential development of

the site.


MISREPRESENTATION ACT 1967 and PROPERTY MISDESCRIPTIONS ACT 1991

Cattaneo Commercial 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 Cattaneo Commercial has any authority to make or give any representation or warranty whatever in relation to this property.

FURTHER INFORMATION

TENURE

Freehold. The property is held on Title Number SGL148754.

VAT

We are advised the property is elected for VAT.

EPC

The building has an EPC rating of D (86) and a copy of the certificate is available on request.

PROPOSAL

Offers are sought in excess of £2,500,000 (Two Million Five Hundred Thousand Pounds),

subject to contract and exclusive of VAT. A purchase at this level will reflect a low capital

value of £394 per sq ft on the NIA and £344 per sq ft on the GIA.

CONTACT

Bob Cattaneo

Managing Director

+44 (0) 20 8481 4744

+44 (0) 79 6647 8472

[email protected]

CATTANEO COMMERCIAL LTD

19-23 High Street

Kingston upon Thames

Surrey KT1 1LL

www.cattaneo-commercial.co.uk

Adam Soliman

Director

+44 (0) 20 8481 4742

+44 (0) 77 1475 9701

[email protected]

Andy Armiger

Director

+44 (0) 20 8481 4741

+44 (0) 79 7320 7424

[email protected]

prime town centre office building investment & … · 2020-04-02 · apr-17 the malt house,...

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