CAVENDISH SQUARE GARDENS AND CAR PARK
LONDON W1 INVESTMENT SUMMARY
Opportunity to purchase the freehold ground rent interest of one of Central London’s most prestigious garden squares and prime West End car parks.
• Cavendish Square is situated in the heart • The underground car park is on 3 levels and of London’s West End moments from the comprises approximately 13,527 sq.m. (145,600 internationally renowned retail destinations of sq.ft.) - 444 car and 83 motorcycle spaces. Oxford Street, Bond Street and Regent Street. • It is let at a current rent of £1,875 pa plus 5% of • The subject property comprises Cavendish annual gross receipts over £65,000 pa. Square Gardens and underground car park on a • The ground rent payable for the year ending 1st 2.2 acre site. March 2013 was £116,658 pa. • The gardens and car park are let on two separate • The car park, is sublet to Q Park Limited, full repairing and insuring leases to Westminster guaranteed by Q Park NV, for a term of 24 years City Council both expiring on 5th January 2062 8 months from 1st August 2011 at the higher of (48 years unexpired). £1,799,759 pa, subject to annual RPI increases, or • The gardens comprise 1.6 acres and are let at a 50% of turnover. peppercorn on a lease outside the security of • Q-Park is one of the market leaders in the tenure provisions of the 1954 Landlord & provision of parking facilities in Europe and has Tenant Act. recently refurbished the car park at a cost of • There may be potential to generate future £2.5m. income from the gardens and surrounding area • The current ground rent reflects only 6.5% of the within the freehold title in collaboration with rent now receivable by Westminster City Council Westminster City Council, particularly in light under the sub-lease to Q - Park. of the desire to improve the public realm in the area to cater for the impact of Crossrail which it is estimated will bring an additional 166 million Offers are invited for our client’s visitors per annum into Central London by 2026. freehold interest subject to contract.
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CAVENDISH SQUARE GARDENS AND CAR PARK // LONDON W1 PAGE 03 LOCATION
Situated in the heart of London’s West End just north of Oxford Circus, Cavendish Square is one of Central London’s most prestigious garden squares.
It was the first square in Westminster to be In preparation for the higher visitor numbers that developed north of Oxford Street and was laid out in the new rail network will bring – estimated at up to 1717 as the centrepiece of the new Marylebone estate 250 million each year into Central London by 2026 - of Edward Harley, Earl of Oxford and is named after Westminster City Council, Transport for London and his wife, Lady Henrietta Cavendish Holles. the New West End Company have commissioned consultants, Arup and Publica to look at both the The Square is located in a prime Central short and long term improvements needed to London location close to the international retail enhance the West End’s public realm. Their report is destinations of Oxford Street, Regent Street and due to be published this spring and it is anticipated Bond Street. will include recommendations for the improvement The flagship store of John Lewis has an extensive of Cavendish Square. frontage on the south side of the square whilst The Square has also been identified within the House of Fraser, Debenhams and Selfridges Mayor’s “Great Spaces” Initiative encouraging the department stores are within a few minutes’ walk. revitalisation of London’s public spaces whilst Many international and national organisations have Westminster’s City Plan: Strategic Policies, adopted their headquarters located nearby including Chevron in 2013, has defined Cavendish Square as an “Oasis UK, The BBC, The Royal College of Nursing, Great Area of rest” promoting it’s connection with the Portland Estates, The Royal Society of Medicine, prime retail locations of Oxford Street, Regent Street CBRE and most recently, Savills. and Bond Street and enhancement as an attractive public space. Harley Street running to the north of the Square is one of the most established and famous medical locations in the world.
The location will be further enhanced with the arrival of Crossrail in 2018 and the opening of the Bond Street Crossrail Station in Hanover Square, 200 metres to the south of the property.
PAGE 04 CAVENDISH SQUARE GARDENS AND CAR PARK // LONDON W1 CAVENDISH SQUARE //
ST REET V E N D I S H W C A NE
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PROPOSED BOND STREET CROSSRAIL STATION
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CAVENDISH SQUARE GARDENS AND CAR PARK // LONDON W1 PAGE 05
CAVENDISH SQUARE // 3 5 8
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1/ Cavendish Square and Car Park 5/ Hanover square 9/ John Lewis 2/ Oxford Street 6/ New Bond Street 10/ House of Fraser 3/ Regent Street 7/ Harley Street 11/ Debenhams 4/ Oxford Circus 8/ Proposed Bond Street Crossrail Station
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CAVENDISH SQUARE GARDENS AND CAR PARK // LONDON W1 PAGE 07 DESCRIPTION
The subject property comprises Cavendish Square Gardens and underground car park on a 2.2 acre site.
The gardens were originally designed by Charles The design of the square and gardens has been Bridgeman (Royal Gardener 1728-1738) for Edward subject to a number of public realm studies, the Harley, Earl of Oxford, and were developed in 1717 most recently commissioned by Westminster City as the centrepiece of the new Marylebone Estate. Council in 2009 and the New West End Company They are laid out in a circular plan and occupy 1.6 together with the freeholders in 2013. acres with the present layout dating back to 1971 The latter suggests a phased approach to following the construction of the car park. The physically improving the gardens and surrounding gardens were subsequently refurbished and re- space, increasing accessibility, improving sightlines landscaped by Westminster City Council in 1995. with Hanover Square and creating an enhanced The original statue of Lord George Bentinck, public space with potential for: installed in 1848, still remains on the south side whilst the central plinth which had been • public art exhibitions unused for 144 years, now features a public art commission by the Korean artist, Meekyoung Shin. • seasonal markets She has recreated the original statue of the Duke • music performances of Cumberland that occupied the plinth between 1770 and 1868 entirely out of soap! • promotional events
• café/restaurant facilities.
Full information is available here>>
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CAVENDISH SQUARE GARDENS AND CAR PARK // LONDON W1 PAGE 09 DESCRIPTION
The car park was developed in 1971 by It has recently undergone a £2.5 million Westminster City Council below the gardens and refurbishment including new secure car and provides spaces for 444 cars and 83 motorcycles pedestrian entry gates, improved lighting, 160 on 3 levels with a total net internal area of 13,526.9 extra large parking bays and is now manned 24 sq.m. (145,602 sq.ft.). hours a day
The car park has been operated (under a new The car park does not currently have a lift, lease) since August 2011 by Q-Park Limited and however, Q-Park have just received planning branded as Q-Park Oxford Street. permission to install one which they are proposing to do this year.
Car Net Internal Level Spaces Area Sq.m. Sq.ft. G - 1 102 4,407.2 47,439 G - 2 154 4,572.0 49,212 G - 3 188 4,547.7 48,951 444 13,526.9 145,602
Areas in accordance with MSA report dated April 2010.
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CAVENDISH SQUARE GARDENS AND CAR PARK // LONDON W1 PAGE 11 TENURE
Freehold.
The gardens are subject to The London Squares The Post Office Tube tunnel runs under part of the Preservation Act 1931 which provides that land and is excluded from the registration. Title Cavendish Square is a “protected square” and can plan is available upon request. only be used as an ornamental garden, pleasure ground or ground for play, rest or recreation. The only buildings and structures allowed are those which are “necessary or convenient for, and in connection with, the use and maintenance of the square”. The Act does not prohibit development under the square. Almost all of the squares in Westminster are protected by the Act.
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12 CAVENDISH SQUARE // TENANCIES
The gardens and car park are let on two separate full repairing and insuring leases to Westminster City Council both expiring on 5th January 2062 (48 years unexpired).
THE GARDENS’ LEASE CAR PARK LEASE The gardens’ lease, granted on the 30th March The car park is let to Westminster City Council 1995, is contracted out of the security of tenure for 99 years from 6th January 1963 and was provisions of the Landlord and Tenant Act 1954 constructed by Westminster as an obligation and is subject to a Landlord’s option to break in under the lease. the event that the car park lease is determined. The rent payable is a fixed rent of £1,875 pa plus The rent payable is a peppercorn with no provision 5% of annual gross receipts over £65,000 pa for review. calculated annually from 1st April each year.
The permitted use under the lease is as gardens The ground rent payable for the year ending for the public and not for any public exhibition or 31st March 2013 was £116,658 pa based on gross entertainment. receipts of £2.36 million.
The gardens can only be used during daylight Given the comprehensive refurbishment by Q-Park hours defined as half an hour after sunrise and half carried out between 2011 and 2013, it is anticipated an hour before sunset. that the gross receipts from the car park will increase to over £3 million per annum within the Alterations and additions are not permitted next few years which will increase the ground rent although alterations not requiring planning to circa £150,000 per annum. The installation of the permission are permitted subject to Landlord’s lift will also further enhance turnover. consent which must not be unreasonably withheld.
The Landlord has the right, subject to 2 months’ notice, to have exclusive use of the gardens for social or charity events (including the erection of marquees) for no more than 7 days at a time and for not more than 14 days in any year.
CAVENDISH SQUARE GARDENS AND CAR PARK // LONDON W1 PAGE 13 SUB - TENANCY // VAT // EPC
SUB - TENANCY The car park had prior to 2011 been operated under Westminster have sub-let the car park to Q-Park a management contract together with 13 other car Limited, guaranteed by Q Park NV, for a term parks (4,000 spaces) held by Westminster. All of the commencing on 1st August 2011 and expiring on 31st car parks were in need of modernisation. March 2036 at the higher of £1.69 million pa, subject The Council appointed Knight Frank and to annual RPI increases (collared at 2% pa), or 50% Parking Matters to market the sites on the basis of of turnover reviewed annually from 31st March. The new 25 year full repairing and insuring leases with current minimum rent is now £1,799,759 pa. proposals for investment to modernise the car parks. The rent currently received by the freeholder is We understand that 11 proposals were submitted therefore only 6.5% of the minimum rent receivable and that Q-Park was subsequently selected from a by Westminster from Q-Park. shortlist of 4 parties.
Q-Park was established in 1998 and is one of the VAT leading providers of parking facilities in Europe with The property has been elected for VAT. It is intended over 800,000 parking spaces across 5,800 sites in 10 that the sale will be treated as a TOGC (Transfer of a North West European Countries. Going Concern).
EPC EPC for car park available on request.
PAGE 14 CAVENDISH SQUARE GARDENS AND CAR PARK // LONDON W1 CAVENDISH SQUARE // PROPOSAL
This is a unique opportunity to purchase the The ground rent income from the car park should freehold ground rent interest in a prestigious also increase significantly following the substantial Central London garden square and prime car investment in the property by Q- Park since 2011. park in the heart of the West End. There will be a considerable reversion in There may be scope in the medium term 48 years’ time on expiry of the car park to generate income from the gardens and lease to Westminster City Council. surrounding area contained within the freehold title in collaboration with Westminster City Council particularly in light of the desire to improve the Offers are invited for our client’s public realm to cater for the impact of Crossrail. freehold interest subject to contract.
CAVENDISH SQUARE GARDENS AND CAR PARK // LONDON W1 PAGE 15 For further information, Misrepresentation Act: Messrs John Miles & Company (Investments Surveyors) Ltd for themselves and for the please contact either: vendors or lessors of this property whose agents they are give notice that (i) the particulars are set out as a general Lawrence Gluckstein outline for the guidance of the intending purchasers and do not constitute part of an offer or contract; (ii) all Direct Line: 020 7659 9742 descriptions, dimensions, references to condition and email: [email protected] necessary permissions for use and occupation and other details are given without responsibility and any intending purchasers should not rely on them as statements or representations of fact but must satisfy themselves by Neil Edwards inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of John Miles & Direct Line: 020 7659 9741 Company (Investment Surveyors) Ltd has any authority email: [email protected] to make or give any representation or warranty whatever in relation to this property. March 2014.