PRIME OFFICE INVESTMENT Fully Let to Standard Bank 47/49 La Motte Street, St Helier, Jersey, JE4 8XR
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PRIME OFFICE INVESTMENT Fully let to Standard Bank 47/49 La Motte Street, St Helier, Jersey, JE4 8XR INVESTMENT SUMMARY Location / Description • Fully let Office HQ building in St Helier, Jersey. • 32,183 sq ft (2,989.90 sq m) NIA of high quality office accommodation arranged over ground and three upper floors. • 404 sq ft (37.5 sq m) of basement storage and 20 car parking spaces. Tenure & Tenancy • Freehold. • Let to Standard Bank Jersey Ltd with a guarantee from Standard Bank Offshore Group Ltd offering excellent tenant covenants. • Lease expiry on 13th May 2022. • Total rent of £860,000 pa reflecting a rent of £25 psf. Headline ERV for St Helier is £34psf. • Rent reviews are every 3rd year, upwards only to OMRV. • Tenant has an option to extend the lease for a further 21 years to 13th May 2043. Proposal • Offers are invited in excess of £11,165,000 (Eleven Million One Hundred and Sixty Five Thousand Pounds) for the freehold interest, subject to contract and exclusive of VAT. • A purchase at this level would reflect a net initial yield of 7.25% after allowing for purchaser’s costs of 6.14%. JERSEY Location Jersey is well established as Britain’s largest ‘offshore’ stockbrokers, advisors, custodians and fund financial centre, whose economic and physical administrators, the ‘big 4’ and other accountancy firms development has experienced rapid growth over and numerous highly regarded law firms. recent years. The Jersey Financial Services Commission is This role has been made possible by the islands responsible for the regulation, supervision and, within legal status as a Crown Dependency, which gives it its legal remit, the development of financial services the ability to conduct it’s domestic and fiscal affairs industry on the island. More information can be found independent of both the UK and the European Union. at their website, www.jerseyfsc.org. This has enabled the island to offer an attractive tax regime for both private and corporate wealth (no VAT, In addition to its financial roll Jersey is also a major Inheritance tax, capital gains or corporation tax and tourist destination with an estimated 750,000 tourists income tax at a flat rate of 20%). However, unlike many visiting the island every year which contribute 20% other ‘offshore’ centers throughout the world, this of the Islands GDP. A combination of these visitors regime is available within a stable political structure and the relatively high disposable incomes enjoyed and a strict regulatory framework. by its residents means that the island also supports a comprehensive retail offer. Other, albeit lesser As a result Jersey accommodates the offices of contributions to Jersey’s economy come from high- over 50 international banks, 200 licensed trusts and tech manufacturing and the agricultural sectors. company administrators, 100 investment managers, St Helier St Helier is the capital and principal population centre residential and leisure complex was completed in 2002, of Jersey and accommodates virtually all of the whilst Liberty Wharf, the new transport interchange, islands prime retail and office stock. The town has a hotel, office and retail complex was completed in 2010. population of 28,000 which accounts for approximately 27% of the total population of Jersey. Numerous new office developments have taken place to accommodate the demand for larger and better Its economic growth has prompted considerable public quality buildings from financial sector tenants. and private sector development. A new marina, Portinfer St John St Mary A8 St Ouen Trinity Le Catel St Martin Les Mielles Le Hurel Nature Reserve St Peter Jersey A9 A8 Archirondel Jersey Airport A12 St Clair Maufant THE Five Oaks Faldouët Bellozanne PROPERTY A1 La Haule A13 St Hellier Grouville La Pulente Les Creux Fauvic A4 Samarés St Helier, Je-Saint Peter Port Poole - Jersey (St Helier) SITUATION La Motte Street is situated in the heart of St Helier King Street, which is 350m from the subject property, with occupiers within the city including: is the prime retail pitch in the town, housing retailers including; Marks & Spencer, Next, Boots, Swarovski, - BNP Paribas JD Sports, Waterstones, New Look and Burton. - ING Bank - Mourant Ozannes 47/49 La Motte Street occupies a prominent corner - Jersey Telecom site at the junction of La Motte Street and Ann Street - RBC and has an extensive return frontage to the latter. - Dept For Social Security 7 THE 6 PROPERTY 5 4 Broad St 3 Hilary St New St Castle St King St Ann St Ann Queen St Hilgrove St Halkett Pl St Saviour’s Rd Esplanade La Motte Street Grosvenor St 2 Hill St 7 A1 Mulcaster St 1 StDon James St Rd 8 La Colomberie Regent Rd La Route du Fort Green St La Rte du Port Elizabeth A16 La Route du Fort A4 KEY 1. Liberty Wharf 5. OGIER 2. Ernst & Young 6. Jersey Finance 3. KPMG 7. HSBC International 4. City Bank 8. Fort Regent COMMUNICATION Jersey is situated off the north-west coast of France, 14 miles from Normandy and 85 miles from the south coast of England. It can easily be accessed via sea and air links, which mainly serve the UK, France and Switzerland. Air Sea Jersey is well served by frequent and regular flights Fast ferries from the UK to Jersey operate a regular from airports in the UK. Journey times for flights from service from Poole, with fastest journey times of 3 hours London Gatwick Airport and London City Airport are 1 30 minutes. A daily ferry departs from Portsmouth, with hour 20 minutes, and 1 hour respectively. Jersey Airport a fastest journey time of 9 hours 30 minutes. Ferries is located approximately 5 miles (8km) to the west from the UK dock in St Helier on arrival in Jersey. of St Helier. Beresford St Peter St Wesley St Wesley Ann St Ann Don Street 2 Haljkett St 3 Hilgrove St St Hilary Halkett Place King St 4 5 THE Bath St Queen St PROPERTY 7 1 6 St Saviour’s Rd Church St 8 La Motte St Hill St La Colomberie Le Breton Lane Fort Regent St James St Chapel Lane La Chasse Don Rd KEY 1. Barclays Wealth 5. Next 2. Marks & Spencer 6. Waterstones 3. JD Sports 7. Boots 4. Burton 8. BNP Paribas PROPERTY OVERVIEW The property, completed in 2001, comprises a self-contained office building arranged over basement, ground and three upper floors totaling approximately 32,183 sq ft (2,989.90 sq m). The building is of frame construction with stone and brick elevations under flat roofs. Windows are powder coated, double glazed units with a curtain wall feature over the entrance and on the third floor. Car parking, storage and plant rooms are located at basement level and office accommodation on the four upper levels with further plant areas at roof level. The main entrance gives access to a reception area which in turn leads to the principal core which contains a spacious stair case, a 10 person lift and male, female and disabled WCs and a kitchen at each office level. To the rear of the building there is a second core with similar lift and stair facilities and male and female WCs on every floor, together with various cleaner’s cupboards, showers and tea/coffee preparation facilities. The office accommodation benefits from the following specification: • Excellent natural light • Carpet tiled metal encapsulated full access floors • Suspended ceilings with recessed fluorescent lights • Environmental control via comfort cooling system There are 20 car spaces within the basement car park which is accessed via a ramp from the lane at the rear of the building. ACCOMMODATION The property provides flexible, open plan floorplates which are designed to appeal to a whole spectrum of occupiers. The property areas are defined in the lease for rent review purposes as follows: Floor Sq m (NIA) Sq ft (NIA) Third 645.49 6,948 Second 810.21 8,721 First 810.21 8,721 Ground 723.99 7,793 Total 2,989.90 32,183 In addition there is a basement storage area of approximately 37.53 m²/ 404 ft². LIGHTWELL STAIRS LIFT STAIRS LIFT Example of upper floor office configuration. TENURE Freehold. TENANCY The property is let to Standard Bank Jersey Ltd with a Floor Size Rental Total parent guarantee from Standard Bank Offshore Group Rate Limited. Office 32,183 sq ft £25.00psf £804,575 The property is let on full repairing and insuring terms Basement 404 sq ft £13.43psf £5,425 for 21 years from 14 May 2001 expiring on 13 May 2022. Storage £2,500 Car Parking 20 Spaces per space £50,000 The tenant has an option to take a new lease for a further term of 21 years at an open market rent Total £860,000 at expiry of the existing lease. The current rent is Standard Bank have sublet the third floor office £860,000 per annum which equates to £25 per square space to Consortia Partnership Ltd. Consortia are an foot, subject to upwards only rent reviews every three independent trust company who provide fiduciary, fund years (as is the custom in Jersey). The rent has been and corporate services to clients across the globe. analysed as follows: COVENANT INFORMATION Standard Bank Jersey Ltd (J-12999) has its registered Standard Bank Jersey Ltd is a wholly owned subsidiary office at 47/49 La Motte Street and reports its of Standard Bank Offshore Group Ltd (J-43694) who principle activities as banking and regulated financial act as guarantor. Standard Bank Offshore Group Ltd services activities including stockbroking, asset reports its principle activity as that of an investment management, investment management and custodian holding company.