1 HAMILTON HOUSE
Header
Copy
HAMILTON HOUSE 1 TEMPLE AVENUE LONDON EC4
CITY OF LONDON BUSINESS CENTRE INVESTMENT AND POTENTIAL REFURBISHMENT OPPORTUNITY HAMILTON HOUSE 2 3 HAMILTON HOUSE
Header Header
Copy
CONTENTS
Investment Summary 5
Location 8
Local Occupiers 10
Transport & Communications 14
Tideway 16
The Property - History 18
The Property - Description 19
Accommodation 20
Floor Plans 22
The Hamilton House Business Centre 24
Active Management Potential 26
Headlease Summary 30
Tenure 31
Additional Information 31
Proposal 34
Contacts 34 HAMILTON HOUSE 4 5 HAMILTON HOUSE
Header INVESTMENT SUMMARY
CITY OF LONDON BUSINESS CENTRE INVESTMENT AND POTENTIAL REFURBISHMENT OPPORTUNITY
Located in a prime Central London location, Hamilton House is operated as a Business Centre by the Freeholder, the City of London Corporation.
Prominently situated on the north side of Victoria Embankment and served by Temple and Blackfriars Underground Station and City Thameslink.
Grade II Listed building providing office and ancillary accommodation comprising approximately 29,349 sq ft (2,726.80 sq m) arranged over basement, lower ground, ground and five upper floors.
A new 150 year lease, subject to a gearing of 7.5% of Rack Rental Value will be granted by the Freeholder. The Lease will be subject to an initial ground rent of £50,000 per annum for the first 5 years, with five yearly reviews thereafter.
The Business Centre (www.hamilton-house.co.uk) currently produces a gross income of approximately £1,237,179 per annum, and a net income of approximately £532,174 per annum. The current occupancy rate is approximately 96%.
There are currently approximately 76 licences held by 41 occupiers, the majority of which are quarterly.
Outstanding asset management opportunities to enhance value either through upgrading the existing Business Centre operation or carrying out a comprehensive office refurbishment, subject to obtaining necessary consents.
We are instructed to seek offers in excess of £15,500,000 (Fifteen Million Five Hundred Thousand Pounds) in respect of a new 150 year lease, subject to a gearing of 7.5% of Rack Rental Value, subject to contract and exclusive of VAT. Assuming acquisition costs of 6.73%, a purchase at this level reflects a low capital value of £528 per sq ft. Smithfield Barbican St Paul’s City Tower Blackfriars Canary Tate One Blackfriars Market Centre Cathedral Cluster Station Wharf Modern The Shard
HAMILTON HOUSE
Temple Gardens New Street Old OXO Square Bailey Sea Containers House Tower HAMILTON HOUSE 8 9 HAMILTON HOUSE
LOCATION
HAMILTON HOUSE IS LOCATED IN THE HEART OF CENTRAL LONDON, WHERE THE CITY CONNECTS WITH MIDTOWN AND THE CAPITAL’S FINANCIAL, LEGAL AND PROFESSIONAL WORLDS MEET
Copy
Hamilton House occupies a highly prominent position on the northern Due to its proximity to the Royal Courts of Justice, the Central Criminal side of Victoria Embankment at its junction with Temple Avenue. Victoria Court, the Commercial Courts and the four Inns of Court, the area has Embankment forms a key route linking the City of London to Midtown traditionally attracted numerous legal occupiers which today include and thereafter the West End. Baker and McKenzie, Freshfields and Taylor Wessing.
Located in one of the most exciting sub-markets in Central London, The area continues to witness increased demand from a number of the surrounding area continues to attract global occupiers including the world’s leading Professional, Banking services and more recently Amazon, Bank of America Merrill Lynch and Goldman Sachs. Technology and Media companies. This demand is further supported by the proximity to Paternoster Square and One New Change, which offer a wide range of retail and leisure operators including Corney & Barrow, Paternoster Chop House, Hugo Boss, Reiss and Jamie Oliver’s Barbecoa. EUSTON
OLD STREET OCCUPIERS GRE A T EASTERN
EET RESTAURANTS FARRINGDON ROA R STREET WOBURN OLD ST L EISURE &
CITY ROA PLAC HAMILTON HOUSE 10 11 HAMILTON HOUSE E D SHOREDITCH
D HIGH STREET
RUSSELL CO SQUARE ROAD CLERKENWELL MM E R CI A L STREET LOCAL SOUTHAMPTON R Header 23 21 GRAY’S INN ROA 11 OCCUPIERS FARRINGDON 19 THEOBALD’S ROAD H FARRINGDON ROAD A CULTURE GOODGE ALDERSGATE STREET OW T STREET T BARBICAN O T 22 EE N R ST
G SE
A OCCUPIERS D OU R RH
D TE AR E CH N LD 20 FIE 1 British American Tobacco 14 Goldman Sachs 4 ITH T SM ES W 2 Bupa 15 PWC 24 MOORGATE 3 LSE 16 Tate & Lyle HOLBORN LOOMSBURY WAY 4 Mitsubishi 17 ACCA B HIGH HOLBORN 5 Copy CHANCERY LONDON WALL LIVERPOOL 5 Sainsbury’s 18 Law Society LANE STREET HOLBORN 14 6 Shell 19 Mediacom C HOLBORN BISHOPSGATE 9 H LANE 7 A FARRINGD 7 Google 20 Reed N 12 VIADUCT 15 C HOLBORN E 8 Jones Day 21 Warner Bros 13 R 13 LINCOLN’S INN Y HIGH FIELDS L 9 Mishcon De Reya 22 Webber Shandwick A FETTER N ON STREE MOORGATE TOTTENHAM E 10 Coutts 23 CCW OXFORD STREET COURT ROAD 12 11 Aecom 24 WSP CHARING CROSS ROAD 18 GRESHAM STREET KINGSWAY 12 Deloitte 25 Covington & Burling 14 T 3 13 Fladgates OXFORD ST PAUL’S STREET CIRCUS 10 FLEET STREET 16 17 THREADNEEDLE 4 25 8 BOND STREET 11 8 1 5 6 16 CITY 5 THAMESLINK MARBLE ARCH 3 CH BANK RESTAURANTS LEISURE & WY L D T A K CULTURE ING COVENT 7 REE GARDEN 11 6 CANNON STREET WILL 1 Roka 1 National Gallery 3 1 IAM 2 The Savoy 2 OXO Tower 9 QUEEN VICTORIA STR EET CHURCH ST MIDDLE TEMPLE S 3 STK 3 Theatre Royal STRAND TREE E GARDENS MANSION 7 HOUSE AC 4 L’atelier 4 Tate Modern T GR UPPER THAMES STREET 5 The Ivy 5 Aldwych Theatre 10 LEICESTER VICTORIA EMBANKMENT CANNON BLACKFRIARS 6 Radio Rooftop Bar 6 Royal Opera House SQUARE 2 TEMPLE STREET 7 Balthazar 7 Somerset House 2 MONUMENT 8 The Delauney 8 Royal Festival Hall HAMILTON 9 Clos Maggiore 9 National Theatre PICCADILLY 17 HOUSE CIRCUS LOWER THAMES STREE 10 Rules 10 Royal Courts Of Justice REGENT STREET 6 WATERLOO BRIDGE 11 Hawksmoor 11 Trafalgar Square 10 T 1 STRAND 12 Coopers 11 4 13 Fields Bar & Kitchen 2 IDGE SOUTHWARK BRIDGE 14 Mirror Bar And Holborn CHARING Dining Room 9 CROSS NDON BR
15 Chicken Shop & LO Hubbard And Bell 8 at The Hoxton 15 16 LutyensGREEN PARK EMBANKMENT 17 El Vino
LONDON BRIDGE
SOUTHWARK WATERLOO WATERLOO EAST HYDE PARK CORNER
KNIGHTSBRIDGE BOROUGH HAMILTON HOUSE 12 13 HAMILTON HOUSE HAMILTON HOUSE 14 15 HAMILTON HOUSE
EUSTON
TRANSPORT CROSSRAILOLD STREET GRE A & COMMUNICATIONS T EASTERN
FARRINGDON ROAD STREET WOBURN OLD STREET
CITY PLAC HAMILTON HOUSE IS IDEALLY LOCATED TO BENEFIT FROM LONDON’S THE ELIZABETH LINE WILL INCREASE LONDON’S RAIL CAPACITY BY MORE THAN
ROAD E EFFICIENT AND RAPIDLY EXPANDING PUBLIC TRANSPORT NETWORK 10% AND WILL SERVICE AN ESTIMATED 200 MILLION PASSENGERSSHOREDIT EACHCH YEAR. HIGH STREET
RUSSELL SQUARE COMME Hamilton House benefits from excellent transport infrastructure, beingROA situatedD in close proximity to a number of Mainline Rail and London The opening of Crossrail will transform connections across Central CLERKENWELL Underground stations. These stations include: London. Hamilton House is in an excellent position to benefit RCIA significantly from this, located a short walk away from the main Crossrail entrance at Farringdon station. L STR
SOUT E Due for completion in 2018, Crossrail at Farringdon will become E T HAM one of Britain’s busiest train stations and will be a key link in bringing GRAY’S INN ROA PTON ROW passengers from outer London to the business hubs in the City and
THEOBALD’S ROAD H FARRINGDON ROAD Canary Wharf as well as providing access to the Underground, Mainline A GOODGE FARRINGDON ALDERSGATE STREET T and City Thameslink services. STREET T BARBICAN O T EE N R ST Travel times across Central London from Farringdon Crossrail station are
G SE
A D OU expected as follows: R RH
D TE AR E CH N LD FIE ITH T SM ES W URY WAY MOORGATE B HOLBORN LOOMS B HIGH HOLBORN CHANCERY LONDON WALL LIVERPOOL STANSTED LANE E STREET HOLBORN HOLBORN VI MAIDENHEAD PADDINGTON TOTTENHAM LIVERPOOLBISHOPSGATE STRATFORD
LAN FARRINGDON
E COURT ROAD STREET C ADUCT H HOLBORN A N HIGH C E R FETTER Y TOTTENHAM S MOORGAT 57 45 32 8 4 2 2 8 10 43 L E OXFORD STREET COURT ROAD A L STREE I N
E M
CHARING CROSS ROA 7 GRESHAM STREET . T READING HEATHROW BOND STREET FARRINGDON CANARY SHENFIELD 0 AIRPORT WHARF
KINGSWAY OXFORD 0 LUTON . ST PAUL’S TREET 5 GATWICK CIRCUS M FLEET STREET THREADNEEDLE S I L BOND STREET E CITY S THAMESLINK S D E S L MARBLE ARCH CH I LE BANK WY I DESTINATION TRAVEL TIME DEPARTING FROM D M T L M INTERNATIONAL A .7 K .4 0 ING WI COVENT HAMILTON 0 GARDEN HOUSE CANNON STREET St Pancras International 8 minutes City Thameslink L LIAM ST D QUEEN VICTORIA STR The property benefits from excellent London City Airport 30 minutes St Paul’s Underground station STRAN EET international transport links with the following MANSION REET approximate journey times to London’s Gatwick AirportACECHURCH STREE 35 minutes Blackfriars station 0.3 MILES 0.3 MIL ES HOUSE international transport terminals: GR UPPER THAMES STREET Heathrow Airport 40 minutes Chancery Lane Underground Station LEICESTER VICTORIA EMBANKMENT CANNON BLACKFRIARS SQUARE TEMPLE STREET Stansted Airport 50 minutes St Paul’s Underground Station MONUMENT
PICCADILLY CIRCUS LOWER THAMES STREET REGENT STREE WATERLOO BRIDGE D
STRAN
T SOUTHWARK BRIDGE CHARING
CROSS NDON BRIDGE
LO
GREEN PARK EMBANKMENT
LONDON BRIDGE
SOUTHWARK WATERLOO WATERLOO EAST HYDE PARK CORNER
KNIGHTSBRIDGE BOROUGH HAMILTON HOUSE 16 17 HAMILTON HOUSE
TIDEWAY: BLACKFRIARS BRIDGE FORESHORE
The Blackfriars Bridge Foreshore site is located close to Hamilton House, As part of the Thames Tideway Project, the Blackfriars Bridge Foreshore on the north bank of the river Thames to the west of Blackfriars Bridge. site, which is located on the north bank of the river Thames will Blackfriars is one of Tideway’s largest sites, and one of a small number comprise an attractive new area of c.4,000 sq m (43,055 sq ft) of public located in the heart of Central London. realm with views across the Thames. The public realm will incorporate the following features: The site is bounded to the north by Victoria Embankment/Blackfriars Underpass/Upper Thames Street and to the east, south and west by Black Stage Sculptures the River Thames. Construction has commenced and is expected to be Flexible Main Space completed by 2022. Amenity Kiosk Last year, a new riverboat pier at Blackfriars was built by Tideway’s contractors to make way for the main construction works on the east Viewing Areas side of Blackfriars Bridge. Soft Landscape Terraces A new lift and stairs at Blackfriars have been opened, connecting the Seating Spaces new riverboat pier to the bridge and Blackfriars railway station for the first time. During construction the Cycle Superhighway has been Undercroft Area diverted and the old down ramp onto the Victoria Embankment has Lighting been closed down. HAMILTON HOUSE 18 19 HAMILTON HOUSE
THE PROPERTY THE PROPERTY HISTORY DESCRIPTION
The following is an extract taken from a ‘Building Journal’ article dated 1899: Hamilton House is a steel framed building with concrete floors and is externally clad in Portland stone. The property is Grade II listed and was constructed around the early 1900s. The interiors are well-proportioned with architectural detailing kept simple. The main staircase with iron railings is original and simple classical cornicing appear in many of the spaces though typically above modern suspended ceilings. The offices have been “Hamilton House was constructed in 1899 and designed by eminent Victorian modernised but retain their character and distinctive charm with the benefit of river views. architect Mr W. Emerson, whose work includes All Saints Cathedral, Allahabad and The accommodation benefits from the following specification: - Clarence Memorial Wing of St Mary’s Hospital, Paddington. Part suspended and part plasterboard ceilings 8 person passenger lift Hamilton House was built for the Employers Liability Assurance Corporation. Its Perimeter trunking Storage facilities Comfort cooling Landscaped gardens prominent Thames-side position merited a substantial building with fine architecture Floor to ceiling heights of at least 2.93m but its overall scale was greater than needed by the company, resulting in surplus on each floor accommodation being let as offices.” HAMILTON HOUSE 20 21 HAMILTON HOUSE
ACCOMMODATION
The property was measured by Lane and Frankham in accordance with the RICS Code of Measuring Practice (6th edition) providing the following net internal areas, assuming the property is single let:
FLOOR NIA SQ FT NIA SQ M GIA SQ FT GIA SQ M
5th 3,162 293.8 3,520 327.0
4th 3,807 353.7 4,910 456.2
3rd 3,969 368.8 4,902 455.4
2nd 4,102 381.0 5,896 547.8
1st 4,397 408.5 5,834 542.0
G 4,193 389.6 5,848 543.3
LG 3,431 318.8 5,377 499.5
B 2,288 212.6 4,815 447.3
Total 29,349 2,726.8 41,102 3,818.5
In its current configuration as a business centre the net internal area of the property is 26,081 sq ft (2,423.20 sq m). Full measured surveys are available on the dataroom. HAMILTON HOUSE 22 23 HAMILTON HOUSE
FLOOR PLANS
GROUND FIRST FLOOR SECOND FLOOR FOURTH FLOOR
EXISTING BUSINESS CENTRE LAYOUT EXISTING BUSINESS CENTRE LAYOUT CLEARED FLOOR WITH EXISTING BUSINESS CENTRE LAYOUT DEMOUNTABLE PARTITIONS REMOVED
Not to scale. For identification purposes only. HAMILTON HOUSE 24 25 HAMILTON HOUSE
THE HAMILTON HOUSE BUSINESS CENTRE
The property has been operated as the Hamilton House Business Centre for over 20 years. The centre is currently occupied by approximately 41 occupiers the majority of which are on quarterly licences. The Business Centre currently produces a gross income of approximately £1,237,179 per annum and a net income of approximately £532,174 per annum. The current licence fee quoted is £82.50 psf.
The following basic services are provided to licencees:
Central telephone system Photocopy and printing services General weekly cleaning Meeting rooms (booking fees apply) Use of the Hamilton Suite
ACTIVE MANAGEMENT POTENTIAL
UPGRADE OF THE BUSINESS CENTRE
The centre could easily be upgraded by carrying out refurbishment to the existing accommodation and offering a broader range of services to include:
Upgrade and refurbishment of the property to provide modern facilities including spacious common areas and break-out facilities, air conditioning, showers and bike storage Free refreshments and facilities for occupiers Private phone booths Enhanced printing services Dry-cleaning services Creation of a ‘community’ for occupiers
The current licence fees charged range from approximately £28.82 psf – approximately £80.88 psf with the most recent licence arrangement being agreed at £81.37 psf. The average licence fee charged is £67.73 psf (excluding the basement storage units) highlighting the reversionary potential of the centre.
The upgrade of the facilities and services provided would therefore allow the licence income to be increased.
The Hamilton Suite HAMILTON HOUSE 26 27 HAMILTON HOUSE
ACTIVE MANAGEMENT POTENTIAL
HERITAGE
A Statement of Significance and Opportunities was produced by the Areas where refurbishment is encouraged include: City of London Corporation Planning Department. This report assesses Removal/reduction of lowered and suspended ceilings the significance of the building in historic building terms and provides a guide to areas of sensitivity and opportunity in order to inform the Flexible removal/insertion of partitions as required management of future change. Where feasible restoration of original volumes of the rooms and The report was very positive and stated that the City of London Planning circulation spaces Department would promote the refurbishment and modernisation of Re-expose/reopen historic chimney breasts and fireplaces the property to ensure it survives for generations to come. Lift non-original floor treatments and potentially re-expose historic The report identified a number of areas less sensitive to change surfaces including internal spaces, most of which have been altered to provide modern office accommodation. The removal of elements such as Restoration of the original windows between the lightwell and suspended ceilings and partitions is encouraged as they impact on the principal stair to allow daylight back into the stairwell Third Floor Potential Office Layout (CGI) original proportions and detailing affecting aesthetic and evidential Upgrade of the lift value.
In numerous parts of the building there are opportunities to reverse previous alterations and better reveal and enhance the significance of The full report setting out the physical alterations which the City of the building as a whole. London Corporation Planning Department considers could enhance the significance of Hamilton House is available for download on the data room.
OFFICE REFURBISHMENT
A heritage report has also been commissioned by Heritage Collective, exploring the options for refurbishment of the property, a full copy of which can be found in the data room.
Based on the recommendations contained within the report, Waugh Thistleton Architects have produced a number of CGIs illustrating the potential open – plan office floor aspects that could be created.
Hamilton Suite – First Floor (CGI)
Reception (CGI) HAMILTON HOUSE 28 29 HAMILTON HOUSE
Second Floor Potential Office Layout (CGI) E N
C
H
W
A 28 26 6 PH LB L K 36
1 TUDOR STREET
F
W
2 5 1 2
7
2
1 0 5.9m Und
3
4
6
s r
5 1
e 0
b Whitefriars m
7 5
SD a
h
HAMILTON HOUSE 30 31 o HAMILTON HOUSE House
t
C
3
e l
p Cycle Hire Station
m e T TALLIS STREE
T
E 5.2m
F
M
W
P
L
E
A
V
E
N
U
E
HEADLEASE TENURE T
e
l
e
p
h
2 1
o
3
t
n
o
e
4
SUMMARY H
o
A new 150 year lease, subject to a gearing of u
s
e 7.5% of Rack Rental Value will be granted by Carmelite the Freeholder. A copy of the Headlease is Audit House House available in the data room. BP
1 TERM MINIMUM GROUND RENT Hamilton
y
d
B House A new 150 year full repairing and insuring lease from completion. £50,000 per annum from completion of this lease, to be reviewed
d r 58 thereafter as set out below. a 40 50
W LANDLORD MINIMUM GROUND RENT REVIEW The Mayor and Commonalty and Citizens of the City of London. The Minimum Ground Rent is to be reviewed every 25 years to the Shelter PREMISES higher of 4.0% of the annual rent payable immediately prior to the review date or 4.0% of Rack Rental Value (as defined). All those premises known as Hamilton House, 1 Temple Avenue, 4.6m Victoria Embankment, London EC4. 4.6m ALIENATION
USER a) Not to assign part of the Premises. b) Not to assign the whole of the Premises without the prior written Not without the consent in writing of the Landlord, such consent not to Not to scale. For identification purposes only. ThisML Wplan is based upon an Ordnance Survey Map with the sanction of the be unreasonably withheld, to use the different floors of the Premises consent of the Landlord, not to be unreasonably withheld. controller of H.M. Stationery Office. Crown Copyright reserved. otherwise than for any uses or any combination of uses as set out c) Not to underlet the whole of any part of the Premises without the n below: prior written consent of the Landlord. Landing Stage Floor Use Other standard restrictions apply, see data room for full details. 0m 10m 20m30m First Floor and above Offices within Class B1(a) of the 1987 Order ADDITIONAL INFORMATION REPAIR and uses ancillary to such use Basement, Lower Offices within Class B1(a) of the 1987 Order Full repairing terms. Ground and Ground and/or Classes A1 A2 A3 and A4 of the 1987 Floors Order and uses ancillary to such uses ALTERATIONS VAT PLANNING See data room for full details. The above uses are permitted subject to obtaining the necessary planning consents. INSURANCE Not to use the Premises for residential purposes or hotel. The building is elected for VAT. It is envisaged this sale will be treated Hamilton House is situated in the City of London. The Landlord is obliged to keep the Premises insured and the Tenant as a Transfer of a Going Concern. The Property is Grade II Listed under list entry number 1079106. is obliged to pay the Landlord insurance rent, being the cost of any The Property lies within the Whitefriars Conservation Area. RENT CALCULATION insurance effected by the Landlord under the Headlease. The initial ground rent payable is £50,000 per annum until the first review date, such date being the 5th anniversary of the term.
Following the first rent review, for the remainder of the Term the yearly rent payable by the Tenant to the Landlord shall be whichever is the EPC DATA ROOM greater of: -
– the Minimum Ground Rent; and The Property is Grade II Listed and does not require an EPC. Further information can be downloaded on the data room at www. – 7.50% of the Rack Rental Value (as defined) hamiltonhouseEC4.co.uk During the term, the ground rent will be subject to 5 yearly upward only rent reviews.
The yearly rent payable during any redevelopment or refurbishment period shall be the Minimum Ground Rent. CAPITAL ALLOWANCES
It is anticipated that significant capital allowances will be available to qualifying parties. Further details of these are available in the online data room.
HAMILTON HOUSE 34 35 HAMILTON HOUSE
PROPOSAL Header
OFFERS ARE SOUGHT IN EXCESS OF £15,500,000 (FIFTEEN MILLION FIVE HUNDRED THOUSAND POUNDS) IN RESPECT OF A NEW 150 YEAR LEASE, SUBJECT TO A GEARING OF 7.5% OF RACK RENTAL VALUE, SUBJECT TO CONTRACT AND EXCLUSIVE OF VAT.
ASSUMING ACQUISITION COSTS OF 6.73%, A PURCHASE AT THIS LEVEL REFLECTS A LOW CAPITAL VALUE OF £528 PER SQ FT.
CONTACTS
For further information or to arrange an inspection of the property which is to be strictly by appointment only, please contact:
Marsha Rabinovich [email protected] 020 7588 4433
Christopher Room [email protected] 020 7588 4433
Jonathan Ruback [email protected] 020 7588 4433
DISCLAIMER: Allsop LLP on its behalf and for the Vendors or Lessors of this property, whose Agents they are, give notice that: These particulars are set out as a general outline only for guidance to intending Purchasers or Lessees, and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Allsop LLP has any authority to make any representation or warranty whatsoever in relation to this property. Unless otherwise stated, all prices and rents are quoted exclusive of VAT. October 2017. www.cube-design.co.uk (Q3799) HAMILTON HOUSE 36
Header