Drury House, 34-43 Russell Street, Covent Garden, London Wc2 Rare Mixed-Use Freehold Income Investment Value Add Asset Management Opportunity
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RARE MIXED-USE FREEHOLD INCOME INVESTMENT VALUE ADD ASSET MANAGEMENT OPPORTUNITY DRURY HOUSE, 34-43 RUSSELL STREET, COVENT GARDEN, LONDON WC2 RARE MIXED-USE FREEHOLD INCOME INVESTMENT VALUE ADD ASSET MANAGEMENT OPPORTUNITY DRURY HOUSE, 34-43 RUSSELL STREET, COVENT GARDEN, LONDON WC2 2 - 3 Freehold Covent Garden island site investment opportunity Prominent location on the corner of Russell Street and Drury Lane Mixed-use building extending to a total of 36,322 sq ft (3,374.4 sq m) of office and retail accommodation arranged over lower ground, ground and five upper floors Multi-let to three tenants - Wardour Communications, Beamly and fashionable restaurant by CHLOE. All four leases are Outside the 1954 Landlord & Tenant Act Weighted Average Unexpired Lease Term of 6.8 years to lease expiry on let space Potential office block date during 2021 provides the opportunity to refurbish / extend the existing accommodation (subject to consents) Total current rental income of £2,040,460 per annum (including vendor rental top-ups) Low passing office rent of approximately £60 psf (including vendor rental top-ups), equating to circa 70% of Grade A Covent Garden rental levels that stand at £85 psf Offers are invited in excess of £42,250,000 (Forty Two Million Two Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. Pricing at this level reflects a net initial yield of 4.52% (assuming full purchaser’s costs of 6.78%) and a capital value of £1,163 per sq ft. INVESTMENT SUMMARY REGENT’S PARK BT TOWER 4 EUSTON KING’S CROSS / ST PANCRAS - 5 HYDE PARK OXFORD STREET CENTRE POINT BERKELEY SQUARE THE BRITISH MUSEUM REGENT STREET ST JAMES’S SQUARE COVENT GARDEN MARKET TRAFALGAR SQUARE ST JAMES’S PARK CHARING CROSS HORSE GUARDS PARADE SOMERSET HOUSE ROYAL FESTIVAL HALL NATIONAL THEATRE 6 - 7 OPTIMAL TIME ZONE TO CONDUCT APPLE, GOOGLE, FACEBOOK & WORLD’S MOST DIVERSE POPULATION BUSINESS IN BOTH THE AMERICAS & AMAZON HAVE THEIR EUROPEAN WITH OVER 300 LANGUAGES SPOKEN. ASIA IN ONE WORKING DAY. HQS HERE – INCLUDING TWO OF THE FIVE LARGEST GLOBAL TECHNOLOGY COMPANIES. OVER 75 37% OF THE WORLD’S FOREIGN OF FORTUNE 500 COMPANIES HAVE 33% OF EUROPEAN HQS OF FORTUNE EXCHANGE ARE TRADED HERE. OFFICES IN LONDON. 500 COMPANIES ARE IN LONDON. LONDON IS A HUB OF FUTURE TALENT FOUR OF THE WORLD’S LARGEST LONDON IS EUROPE’S MOST WITH OVER 435,000 STUDENTS IN LAW FIRMS & THREE OF THE WORLD’S POPULAR TOURIST DESTINATION OVER 40 UNIVERSITIES – FOUR BEING LARGEST ACCOUNTANTS HAVE THEIR AS RANKED BY 2017 MASTERCARD IN THE WORLD’S TOP 10. HQS HERE. GLOBAL CITIES INDEX. LONDON 8 - 9 Drury House is situated in Covent Garden, one of London’s most vibrant districts famed for being an established living and working environment, and key tourist destination with world class retail and leisure amenities. Covent Garden Piazza is a two minute walk west of Drury House. The recent major transformation of Covent Garden has centred round the Grade I listed Piazza and its exclusive retail and restaurant offerings. Global high end retailers now include Chanel, Burberry, Mulberry, Apple and Ralph Lauren, and the location’s exceptional restaurant provision includes The Ivy, Henrietta, L’Atelier de Joël Robuchon, Café Murano, by CHLOE. and Rules. Culturally Covent Garden is renowned for its entertainment amenities being the heart of London’s theatre-land with the Theatre Royal (situated opposite Drury House), The Royal Opera House and Somerset House all here. The area’s cultural and leisure offerings means Covent Garden is one of the world’s most popular visitor destinations, with tourists to London in 2017 exceeding 20 million for the first time. Covent Garden is an internationally recognised office location and traditionally home to London’s creative industries with tenants including Google, DreamWorks Animation, Universal and Havas. The recent regeneration of Covent Garden, combined with the location’s connectivity and amenities, has resulted in a heightened attractiveness to a broader range of occupiers. Financial and corporate occupiers in particular have been migrating to Covent Garden including COVENT GARDEN Wells Fargo and Skillcapital. 10 - 11 HOLBORN HIGH HOLBORN 12 - MORTIMER STREET 13 NEW OXFORD STREET Drury House occupies a prominent island site on the north side of Russell Street, with further Square CHARING CROSS ROAD frontage onto Drury Lane and Drury Lane Inn OXFORD STREET Fields Gardens. The property benefits from natural light TOTTENHAM on all sides and views west over Covent Garden COURT ROAD Piazza, north over Drury Lane Gardens and south OXFORD CIRCUS 1 towards the River Thames. 7 WARDOUR STREET SOHO KINGSWAY OFFICE OCCUPIERS SQUARE 3 LONDON SCHOOL OF 1 Coutts 10 ECONOMICS 2 Dreamworks LIBERTY Square ROYAL COURT 3 Bain & Co REGENT STREET C Garden 6 OF JUSTICE 4 Interbrand 14 13 5 Prophet 9 ROYAL OPERA THEATRE 4 6 ACCA 11 HOUSE ROYAL 5 6 7 The Economist 2 12 COVENT GARDEN 8 Price Waterhouse Coopers 7 E 9 National Grid U Temple N 9 5 E 10 Wells Fargo V 4 A 11 Robert Walters Square Y 10 R LEICESTER SQUARE COVENT GARDEN T H E S T R A N D 12 Lincoln International U B LEICESTER MARKET 13 Tate & Lyle S TEMPLE E SQUARE 1 T 8 14 Handelsbanken F 5 15 Braemer ACM Shipbroking A 3 H 8 2 16 Brand Me S 2 SOMERSET HOUSE 16 4 17 Spotify ROYAL ACADEMY 17 RESTAURANTS Square OF ARTS PICCADILLY CIRCUS 1 J Sheekey NATIONAL 3 7 6 GALLERY 2 The Ivy 1 PICCADILLY 3 Barrafina FORTNUM 4 L’Atelier de Joel Robuchon & MASON TRAFALGAR CHARING CROSS 5 Balthazar SQUARE James’s 9 6 Hawksmoor Seven Dials 8 15 7 Café Murano THE EMBANKMENT 8 Rules GREEN PARK RITZ Square ADMIRALTY 9 Clos Maggiore ARCH NATIONAL WHITEHALL THEATRE HOTELS & MEMBERS’ CLUBS 1 Covent Garden Hotel P A L L M A L L 2 The Savoy 3 St Martins Lane Hotel Southbank 4 One Aldwych 5 ME London 6 The Waldorf Hilton 7 The Hospital Club HORSE GUARDS T H E M A L L PARADE 8 The Library 9 The ClubWATERLOO at The Ivy EAST ST JAMES'S Thames 10 The Garrick Club Park PALACE Park WATERLOO SITUATION 10 DOWNING STREET LONDON EYE VIEW WEST FROM THE ROOF 14 - 15 CIRCLE LINE BAKERLOO LINE DISTRICT LINE CENTRAL LINE WALKING TIMES CENTRAL LINE CIRCLE LINE NORTHERN LINE BAKERLOO LINE NORTHERN LINE PICCADILLY LINE PICCADILLY LINE DISTRICT LINE NATIONAL RAIL SERVICES NORTHERN LINE CROSSRAIL COVENT GARDEN HOLBORN TEMPLE CHARING CROSS EMBANKMENT TOTTENHAM COURT ROAD 3 minutes 6 minutes 7 minutes 8 minutes 9 minutes 10 minutes TRAVEL TIMES FROM CHARING CROSS WATERLOO LONDON EUSTON VICTORIA KING’S CROSS / ST PANCRAS PADDINGTON HEATHROW AIRPORT GATWICK AIRPORT 2 minutes 6 minutes 10 minutes 11 minutes 11 minutes 30 minutes 45 minutes CHARING CROSS COMMUNICATIONS 16 - 17 18 - 19 Originally constructed as a purpose built office building in the 1980s, the property comprises a total of 36,322 sq ft (3,374.4 sq m) of office and retail accommodation arranged over lower ground, ground and five upper floors. OFFICES The offices (31,750 sq ft / 2,949.7 sq m ) are arranged over first to fifth floors, with a ground floor reception and lower ground floor tenant amenity and storage space. The floorplates are well configured averaging 6,000 sq ft, which are very flexible. The space benefits from natural light on all sides. RETAIL The retail accommodation (4,572 sq ft / 424.7 sq m) is arranged over ground floor only, with frontage onto Russell Street. Internally the space is arranged as two units, a separate restaurant and bakery. THE BUILDING 20 - 21 FOUR-PIPE FAN COIL AIR CONDITIONING FULLY ACCESSIBLE RAISED FLOOR 2 X 10 PERSON PASSENGER LIFTS SHOWERS & LOCKERS BIKE RACKS ACCOMMODATION The property provides the following areas as measured by Plowman Craven (March 2018): FLOOR USE SQ FT SQ M 2.7 METRE FLOOR 5 Office 4,779 444.0 TO CEILING HEIGHT 4 Office 5,970 554.6 3 Office 5,973 554.9 2 Office 5,990 556.5 1 Office 5,991 556.6 Reception 834 77.5 LG7 COMPLIANT G Storage 41 3.8 LIGHTING BMA 30 2.8 SUB TOTAL 29,608 2,750.7 G Retail / restaurant 4,572 424.7 SUB TOTAL 4,572 424.7 METAL TILED Storage 897 83.3 SUSPENDED B Amenities 1,245 115.7 CEILINGS SUB TOTAL 2,142 199.0 TOTAL 36,322 3,374.4 LOWER GROUND SPECIFICATION & SPECIFICATION ACCOMMODATION FLOOR MINI- FOOTBALL PITCH 22 - 23 24 - 25 5TH FLOOR GROUND FLOOR 4,779 sq ft / 444.0 sq m 5,477 sq ft / 508.8 sq m RETAIL UNIT A OFFICE STORAGE B.M.A. DRURY LANE DRURY LANE DRURY RECEPTION RETAIL UNIT B RUSSELL STREET RUSSELL STREET TYPICAL UPPER FLOOR (1ST TO 4TH FLOORS) BASEMENT FLOOR 5,990 sq ft / 556.5 sq m (2nd floor) 2,142 sq ft / 199.0 sq m OFFICE DRURY LANE DRURY LANE DRURY MINI-FOOTBALL PITCH STORAGE BICYCLE PARKING RUSSELL STREET RUSSELL STREET FLOOR PLANS For indicative purposes only. Not to scale. 26 - 27 RUSSELL STREET DRURY LANE TENURE Freehold. TENANCY SCHEDULE FLOOR TENANT USE AREA TERM START TERM EXPIRY RENT £PA RENT £PSF OUTSIDE 1954 ACT COMMENTS Rent deposit of £52,200 held. 5 Wardour Communications Limited Office 4,779 14/06/2011 13/06/2021 £296,875 £62.12 Yes Service charge cap of £47,620 increasing annually in line with RPI. 4 Vacant Office 5,970 - - £373,125 £62.50 - 12 months’ vendor rental top-up for refurbished office space.