Alexander House 21 Victoria Avenue Southend-On-Sea, Ss99 1Bd

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WELL LET FREEHOLD INVESTMENT OPPORTUNITY ALEXANDER HOUSE 21 VICTORIA AVENUE SOUTHEND-ON-SEA, SS99 1BD

ON THE INSTRUCTIONS OF THE JOINT FIXED CHARGE RECEIVERS ALEXANDER HOUSE SOUTHEND-ON-SEA

EXECUTIVE SUMMARY

Well let investment opportunity.

Located in the south east London commuter town of Southend-on-Sea.

Single let to the undoubted government covenant of The First Secretary of State.

Passing rent of £1,773,742 per annum.

Large site area of 2.543 acres (1.029 hectares).

Freehold.

Totalling 235,679 sq ft.

Long term potential to redevelop the site for alternative uses subject to gaining the necessary planning consents.

The Vendor is seeking offers in excess of £17,000,000 (Seventeen Million Pounds) subject to contract and exclusive of VAT, for the benefit of the freehold interest in the property. This price reflects a net initial yield of 9.86% after purchaser’s costs of 5.8% and only £72 psf capital value. Stratford 7 A487 upon Avon Bedford A4112 A4103 M1 ALEXANDER HOUSEM11

A509 A470 A508 A46 A5 A483 Great A10 Haverhill A438 Newport SOUTHEND-ON-SEABiggleswade A438 A6 Ipswich Malvern A44 Banbury Evesham Pagnell A505 9 A438 11 Sudbury 14 A43 Milton Royston A14 Hereford 8 A422 A421 1 A44 Keynes 13 10 A46 A131 Felixstowe A470 2 9 Letchworth A40 Tewkesbury A479 A465 9 Harwich M50 A43 Leighton Hitchin M5 10 A5 A120 St David's A44 Buzzard A120 A49 4 3 10 Stow-on- the-Wold M1

A40 Braintree A40 Gloucestershire M40 A1(M) Stevenage Luton Stansted Carmarthen Llandeilo Cheltenham 11 A602 Colchester A133 A40 11 Bicester 8 Gloucester A41 Luton Bishop's A120 A40 9 A483 A48 10 A10 A34 Welwyn Stortford A130 A40 A40 A470 A40 A436 A131 LOCATION St Clears Abergavenny Garden Aylesbury City M11 Witham A12 Clacton-on-Sea A417 A40 Kidlington A465 Witney Tring Merthyr A429 A4076 Ammanford 12 St Milford A40 A41 4 A477 Tydﬁl A40 Harlow Southend on Sea lies in the heart of Essex and is a well-established A4042 Oxford 8 Albans Maldon Haven A413 Chelmsford 49 13 Stroud A40 3 Hoddesdon 7 7 commercial, residential and tourist hub. The town grew rapidly in A478 A48 A465 Aberdare 8 A418 Thame A414 Pembroke 48 M5 A419 Cirencester 7 A4010 A449 A10 Dock A477 Pontypool the 19th century with the arrival of the railway link to London which M4 M25 25 A12 47 46 45 SOUTHEND-ON-SEA Llanelli A130 Pembroke A420 provided a fast connection for seaside tourists. The town now boasts 44 Neath Abingdon High Watford Swansea 43 Cwmbran 6 Enﬁeld 5 Wycombe 42 Chepstow M1 Barnet Chigwell two railway stations with direct links to London Liverpool Street 14 A419 M11 28 Rayleigh 41 2 Didcot M40 A12 Brentwood 4 2 (Southend Central 1 hour 14 minutes and Southend Victoria 1 hour 40 25 M48 A433 3 A406 4 A470 26 24 1 2 29 A127 Port 39 27 23 Marlow A127 Pontypridd 1 Basildon Caerphilly Newport 21 A40 A41 16 minutes), as well as an international airport (London Southend Talbot 38 28 M4 22 1 Harrow M25 A13 Port 29 Swindon Uxbridge A406 M4 30 M49 16 Henley- City A13 Airport) and its own university (The University of Essex). Einon 36 16 A429 Canvey Island 32 17 37 35 M4 15 on-Thames LONDON 34 33 19 17 30 18 A346 1 Woolwich Porthcawl Bridgend 1 M4 18 A34 CARDIFF 19 Richmond 2 M32 Chippenham A4 The town is located 42 miles east of Central London and 20 miles M5 3 M4 Reading Heathrow A205 Dartford Gravesend Clevedon 14 13 A20 A2 2 Margate south of Chelmsford. Road links are excellent with the A13 providing 20 BRISTOL A46 A350 12 10 Staines A2 Rochester 1 Barry 11 Kingston upon Thames A28 direct access to London within 1 hour and 30 minutes. A4 Newbury A232 Gillingham A38 Melksham A299 Weston- A37 Bath Sutton Croydon Sittingbourne A253 super-Mare 21 3 M25 4 A28 Bristol Devizes Camberley M20 3 5 A36 A34 Epsom M25 10 A22 3 A249 7 A338 A33 4 9 6 M2 A339 A24 A23 A2 Canterbury Trowbridge 5 M26 7 Leatherhead M25 Sevenoaks A228 A2 A361 Maidstone Basingstoke 5 8 6 A21 Lynton 6 M3 Aldershot Oxted A26 22 Dorking Redhill Ilfracombe Burnham-on-Sea Reigate M20 A28 A256 Minehead Frome Andover 7 Tonbridge Lynmouth Farnham A22 A31 A229 A361 Warminster A24 M23 8 A2

A36 9 Ashford 10 Dover A303 A303 Alton Gatwick A20 23 A361 Tunbridge Wells

A39 A34 Bridgwater A338 M3 Crawley Folkestone Barnstaple A37 A31 24 Haslemere 11 A3 A26 9 Horsham A22 Salisbury Winchester Crowborough A259 M5 A303 A350 10 Taunton Langport 11 Haywards Bideford A36 25 Heath A361 A354 A272 A358 Romsey 12 Petersﬁeld A23 Uckﬁeld A39 13 26 A303 Yeovil 14 Eastleigh A21 A3088 4 A338 2 3 4 5 A386 A24 A22 A377 27 A26 A259 1 7 1 A303 A283 Tiverton SOUTHAMPTON 8 A3(M) A27 Lewes Hastings A31 9 3 Hailsham A259 M27 10 HavantA27 Shoreham Ringwood 11 Chichester A27 Brighton A27 28 Hythe 5 Bexhill- A30 12 A31 Fawley Fareham 12 Littlehampton on-Sea A37 Hove Holsworthy A22 A350 Worthing Newhaven A354 Gosport M5 A338 A30 Seaford Eastbourne A348 New Milton Lymington Portsmouth Bognor A31 Bridport A35 Regis Exeter 29 A35 Cowes Ryde Christchurch 30 Dorchester Poole Bournemouth Newport Tintagel A395 A30 Sidmouth 31 A376 Sandown A39 A380 Exmouth Shanklin A388 Dawlish Weymouth A30 Teignmouth A38 Newton Abbot

Bodmin A38 Newquay A386 Torquay A392 A385 Paignton A30 Saltash PLYMOUTH A391 Plympton Brixham St Austell Torpoint Fowey Truro A390 A30 St Ives Redruth Camborne A39

Penzance A394 Helston Falmouth Sennen

Lizard ALEXANDER HOUSE SOUTHEND-ON-SEA

Southend Victoria Station

The Range

Victoria Shopping Centre Sainsburys Odeon

High Street

University of Essex

Red keyline for indicative purposes only

Y D A

W SITUATION

D S

TESCO R O R

F EXTRA E

N C

O A12 N 7 P R Alexander House occupies a prominent site at the junction of RINC A E A M VE N 9 Victoria Avenue, Queensway and Baxter Avenue with frontages U 5 E 1 B&Q 1 D

A A

O to all 3 streets. The property is less than a 1 minute walk from R C AR N LTON A VENUE P O RIORY T Southend Victoria train station and only 7 minutes’ walk from CRES T WAITROSE GARON PARK C U E S

N GOLF COMPLEX PRIORY Southend Central train station. T SOUTHEND PARK A1159 HOSPITAL S SOUTHEND LESIURE P D 8 R R ITTLEWELL & TENNIS CLUB 5 CHAS G E WELLESLEY EA 1 S D TERN 1 A

E L HOSPITAL VENUE Alexander House is opposite both the High Street and the E A

V I

S F E O R H R C

H Y O R R A O G RI Y

I M Victoria Shopping Centre with retailers including; Boots, Next, E G P A

H L V S E FAIRFA PRITTLEWELL X DR T A O IVE VE N I R DR E R X T L H Samuel, Pizza Express, Vodafone, Starbucks, New Look, R FA T S I G R E I L A E R U F TR U L E O S T E O T A R T N A S B A Y E O D Odeon and Royal Bank of Scotland. R T 1 W N

U S 2 A Y O E 7 R O B W ST V A H T D BOURNES S I T E W C GREEN PARK U T O O

D A R H O A R I A M A13 LON T DO S S N R E A T OA W V E D L E S

R N U O U T A E T

ALEXANDER HOUSE E O D U ARD N EV N UL A O R B E 1 SOUTHEND CH 3 O UR V H D L VICTORIA C KI O A TH A N A OU GS N D 3 S R O D A1 L O A R D D O WAY L A N NS E A13 QUEE I E G O R E R R O AD N O L W E Y A H R STA T D URC I SOUTHCHURCH K F K RD R THCH L 3 SOU S L U A1 T A O A A V C ODEON VICTORIA Q N H T

U W C E CINEMA SHOPPING L E A W FI M D CENTRE OODGRANGE RST AVE Y D E R S A IV TATI A SOUTHEND E O N N O SOUTHEND H CHALKWELL RO H A I EAST D R G CENTRAL S H

W N S O T WESTCLIFF T R A E

T E Y I T T HE M LEAS RIVE ODGRANGE D W WO ESTE WOODGRANGE DRIVE RN E THE ROYALS 1160 SPL A DEMOGRAPHICS ANA SHOPPING CENTRE A D E 1 E 1 U 6

N W 0 ESTERN ESPLANADE Y E MA A RINE V P W A AR ADE SOUTHCHURCH

L N L The total population of the Southend catchment area is E PARK A

A A T ADVENTURE ST S H ER ISLAND N F E E I S P 336,000 and it is expected to see growth at the national PL L AN R AD O E PE ES H SOUTHEND PIER THOR PLANA average over the next 5 years (Promis July 2015). DE T DESCRIPTION • 8 x 12 person passenger lifts • Male, female and disabled WC’s on each floor The property was constructed in 1973 and comprises a 16 storey office • Air conditioning building, a separate single storey office building to the rear used as a • Suspended ceilings data centre and an additional 3 storey car park. The office building was ALEXANDER HOUSE constructed using a concrete frame with an extensively glazed façade. The site provides for 283 cars with 196 spaces located in the 3 storey SOUTHEND-ON-SEA The specification includes: car park and 87 surface parking spaces located in front of the property. ALEXANDER HOUSE SOUTHEND-ON-SEA

ACCOMMODATION SCHEDULE

OFFICE BUILDING Floor Use Sq M Sq Ft 15th floor Offices 695.19 7,483 14th floor Offices 1,370.12 14,748 13th floor Offices 1,354.33 14,578 12th floor Offices 1,356.65 14,603 11th floor Offices 1,356.65 14,603 10th floor Offices 1,356.65 14,603 9th floor Offices 1,356.65 14,603 8th floor Offices 1,356.65 14,603 7th floor Offices 1,356.65 14,603 6th floor Offices 1,356.65 14,603 5th floor Offices 1,356.65 14,603 4th floor Offices 1,352.01 14,553 3rd floor Offices 1,356.65 14,603 2nd floor Offices 1,356.65 14,603 1st floor Offices 1,529.36 16,462 Ground Offices 1,380.71 14,862 Ground Reception 102.01 1,098 TOTAL 21,350.23 229,814

DATA CENTRE Floor Use Sq M Sq Ft Whole building Data Centre 544.88 5,865 TOTAL 544.88 5,865 TENURE

The property is held freehold.

TENANCY AND INCOME

The property is let on 2 coterminous leases as described below.

Alexander House The office building and multi storey car park are single let 21 Victoria Avenue to The First Secretary of State on a lease commencing 25th Southend-on-Sea December 2013 and expiring 2nd April 2026. The annual rent is £1,758,658 per annum equating to £7.50 per sq ft having

f n apportioned £39,200 per annum to the multi storey car park. f m ic e e s n t There is a tenant only break option on 2nd April 2021 with

4 7 2 a nine month notice period. The rent is reviewed 5 yearly to 2 V 8 IC to the higher of Open Market Value or the passing rent. The T O R IA next review is 25th December 2018. A V E N U E The data centre is single let to The First Secretary of State Car Park Museum El on a separate lease commencing 25th December 2013 and Sub Sta expiring 2nd April 2026. The annual rent is £15,058 per

annum equating to £2.57 per sq ft.

1 2 2 7 t o 3 7 There is a tenant only break option on 2nd April 2021 with El Cycle Way Sub Sta a nine month notice period. The rent is reviewed 5 yearly Government A to the higher of Open Market Value or the passing rent. The l 1 e 5 Offices x Multi-storey a to n 2 d 5 next review is 25th December 2018. r Car Park a C o u r

t The total income is therefore

1 £1,773,742 per annum. t

o Southen 1

1 Victoria

The entire property is occupied by HMRC which houses

3 9

4 1 circa 1,600 permanent employees at the building. HMRC recently rationalised their holdings in Southend and have consolidated many of their staff and functions in Alexander TCBs House.

HMRC have occupied the building since 1973.

SOUTHEND-ON-SEA Y 27.7m SWA UEEN ALEXANDER HOUSE SOUTHEND-ON-SEA

0m 25m 50m 75m

DEVELOPMENT POTENTIAL

Due to the large site area and low levels of massing to the rear, the property lends itself to a large scale redevelopment at some point in the future. The property could either be developed in its existing use as offices or for alternative uses subject to the necessary consents.

The property lies within the area covered by the Southend Central Area Action Plan (SCAAP) which sets out the strategy for major change and regeneration of the town centre.

RESIDENTIAL MARKET

Levels of home ownership in Southend are above the UK national average with 74% of the residents owning their properties. Average house prices in Southend are also above the UK national average and the infrastructure links to London make the town attractive for commuters. The building could also be suitable in the future as a Private Rented Scheme (PRS).

Recent residential sales in Southend include:

Property Price Date Comments Flat 1, The Pickfords Building, SS2 £250,000 Aug 2014 2 bed flat 11 Clifftown Parade, SS1 £293,000 Sept 2013 2 bed flat Flat 5, Grange Heights, SS1 £168,000 Feb 2015 1 bed flat Flat 1, 4 Clifftown Road, SS1 £180,000 July 2014 1 bed flat MARKET COMMENTARY

South East offices have performed exceptionally well in 2015 with investors attracted to both rental and capital growth. South East offices have reported a total return of 20.2% in 2015 to date and CBRE predict an annualised total return of 12.6% between 2015 and 2019.

There has also been a surge in occupier activity with rents forecast to grow by 5.8% in 2015 and by an annualised rate of 2.9% from 2015 to 2019.

Recent comparable office lettings in Southend include:

Property Rent £psf Date Comments Finance House, 20-21 Aviation Way, £10.78 June 2015 Ground floor letting Southend 10 Alexandra Street, £7.46 January 2015 First floor letting Southend Cohav House, 16-17 Aviation Way, £10.00 August 2014 First floor letting Southend Princess Caroline House, 1 High Street, £9.35 June 2014 Ground floor letting Southend

Recent comparable investment sales include:

Property Price NIY Cap Val Date Comments (£million) £psf Warwick House, £5,180,000 7.90% £253 Mar 2015 Single let to the First 67 Station Road, Secretary of State for 6.6 Redhill years Elstree Gate, £9,250,000 9.60% £135 Feb 2015 Let to the First Secretary of Imperial Way, State and Cable and Wireless Borehamwood for 6.2 years Jupiter and Juniper House, £8,390,000 8.22% £221 Feb 2015 Multi let offices with a WAULT Warley Hill Business Park, of 3.5 years Brentwood Apollo and Lunar House, £94,900,000 5.50% £215 Available Single let to the First Wellesley Road, Secretary of State for 8 years Croydon

ALEXANDER HOUSE SOUTHEND-ON-SEA ALEXANDER HOUSE SOUTHEND-ON-SEA PROPOSAL

The Vendor is seeking offers in excess of£17,000,000 (Seventeen Million Pounds) subject to contract and exclusive of VAT, for the benefit of the freehold interest in the property. PLANNING This price reflects a net initial yield of9.86% after purchaser’s costs of 5.8% and only £72 psf capital value. The property is located in the county of Essex and administered by Southend on Sea Borough Council. The property is not listed and does not sit within a conservation area.

The property lies within the area covered by the Southend Central Area Action Plan FURTHER INFORMATION (SCAAP) which sets out the strategy for major change and regeneration of the town centre. For further information please contact:

Will Elphinstone Tel: +44 (0) 20 7182 2008 VAT Mob: +44 (0) 7876 131346 [email protected] The property has been elected for VAT purposes and it is intended to treat the transaction as TOGC so that VAT will not be payable upon the purchase price. Paul Ireland Tel: +44 (0) 203 214 1907 Mob: +44 (0) 7912 205 868 [email protected]

EPC James Baruch Tel: +44 (0) 20 7182 2011 The property has an EPC score of 109 giving it a rating of E. Mob: +44 (0) 7889 085112 [email protected]

MISREPRESENTATION ACT 1967 CBRE for themselves and for the vendors or lessors of the property whose agents they are give notice that: (i) these particulars are given without responsibility of CBRE or the vendors or lessors as a general outline only for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract; (ii) CBRE cannot guarantee the accuracy of any descriptions, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein and any prospective purchaser or tenant should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the accuracy of each of them; (iii) no employee of CBRE (and their joint agents where applicable) has any authority to make or give any representation or warranty or enter into any contract whatsoever in relation to the property; (iv) VAT may be payable on purchase price and/or rent, all figures are quoted exclusive of VAT, intending purchasers or lessees must satisfy themselves as to the applicable VAT position, if necessary by taking appropriate professional advice; (v) except in respect of death or personal injury caused by the negligence of CBRE, its employees or servants, CBRE will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars save to the extent that any statement made in these particulars has been made fraudulently. September 2015. Designed and produced by Creativeworld Tel: 01282 858200.