21 victoria avenue southend-on-sea, ss99...

21 VICTORIA AVENUESOUTHEND-ON-SEA, SS99 1BD

ON THE INSTRUCTIONS OF THE JOINT FIXED CHARGE RECEIVERS

WELL LET FREEHOLD INVESTMENT OPPORTUNITY

ALEXANDER HOUSE

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.

ALEXANDER HOUSESOUTHEND-ON-SEA

Luton

Stansted

Heathrow

Gatwick

Shoreham

City

Bristol

Gloucestershire

7

10

6

1

3 5

73

6

30

4

5

8

9

11

1

4

3

10 9

14 1312 10

65

7

12

1110

9

8

7

8

5

1314

44

12

1

2 3

91110

12

1817

1615

2

1

21

17

19

16

18

21

3

19

20

27

25

24

23

22

26

31

30

29

28

30 29

2728

252623

2439

4140

3736

35 34 3332

4443

46 4547

48

49

4

2

18

9

10

11

12

13

14

3

7

11

78

9

10

1

32

4

56

2

1

25

8

7

429

28

8

73

4

9

10

914

13

11

10

11

2

5

3

1

38

42

22 21

M23

M1

M2

M27

M26

M25

M20

A3(M)

M40

M4

M3

M25

M25

M25

M25

M20

M1 A1(M)

M11

M4

M4

M4

M4

M40

M3

M1 M11

M5

M5

M5

M5

M5

M32

M50

M11

M49

M48

M4

A465

A40

A449

A4042

A479

A470

A470

A4112

A438

A438

A40

A49

A4103

A40

A438

A40

A407

6

A477

A477

A478

A40A40A48

A487

A361

A30

A376

A39

A386 A377

A30

A30

A380

A390

A391

A395

A39

A30

A388

A30

A394

A39

A392

A38

A386

A385

A361A39

A37

A303

A3088

A37

A30

A303

A358

A35

A36

A31

A354

A35

A350

A303

A361

A36

A37A38

A36

A338

A346

A303

A354

A338

A361

A350

A46

A4

A338

A419

A31

A31

A433

A470

A483

A40

A465

A40

A483

A465

A48

A436

A417

A44

A40

A429

A40

A44

A44

A40

A46

A46

A348 A3

38

A303

A31

A350

A38

A26

A23

A232

A4

A40A406

A41

A406

A10

A12

A13

A2A20

A205

A24

A34

A27

A3

A34

A5 A10

A505

A508

A421

A13

A40A418

A41

A4010

A413

A41

A43

A5

A509

A6

A602

A10

A414

A12

A12

A120

A130 A131

A131

A130

A120

A133

A120

A14

A420

A34

A43

A422

A419

A256

A299

A28

A28

A2

A2

A2

A28

A20

A259

A259

A21

A229

A249

A228

A21

A26

A22

A22

A22

A259A27

A26

A27

A23

A283

A24

A272

A24

A22

A22

A2

A31

A33

A339

A34

A253

A27

A470

A429

A127

A13

A127

Langport

Lynmouth

Lynton

Holsworthy

Tintagel

St David's

Lizard

Sennen

Stow-on- the-Wold

Llandeilo

St Clears

PembrokeDock

PortEinon

WelwynGarden

City

Hoddesdon

Royston

Biggleswade

Felixstowe

Sudbury

Haverhill

Harwich

NewportPagnell

Canvey Island

Canterbury

Rayleigh

Maldon

Witham

Braintree

Bishop's Stortford

Sittingbourne

Ashford

Tonbridge

Uckfield

Crowborough

Bexhill-on-Sea

Seaford

Newhaven

HaywardsHeath

LewesHailsham

SevenoaksOxted

RedhillReigateDorking

Horsham

Chichester

Haslemere

Littlehampton

Petersfield

Sandown

Shanklin

Ryde

Newport

FawleyHythe

LymingtonNew MiltonCowes

Alton

Winchester

Romsey

Farnham

Aldershot

Leatherhead

Croydon

Andover

Ringwood

Salisbury

Dorchester

Weymouth

Bridport

Sidmouth

Christchurch

Chippenham

Melksham Newbury

Frome

Clevedon

Burnham-on-Sea

Taunton

Bridgwater

Warminster

Trowbridge

Devizes

Cirencester

Didcot

Dartford

Yeovil

Minehead

Tiverton

Barnstaple

Ilfracombe

Bideford

Bodmin

St Ives

Camborne

HelstonPenzance

Falmouth

Truro

Redruth

Newquay

St Austell

Fowey

SaltashPlympton

Torpoint Brixham

Paignton

ExmouthDawlish

TeignmouthNewton Abbot

Stroud

Witney Kidlington

Chigwell

Epsom

Sutton

Kingston upon Thames

RichmondWoolwich

BarnetEnfield

HarrowUxbridgeHenley-

on-Thames

Barry

Porthcawl

PortTalbot

Pontypridd

Bridgend

Caerphilly

Cwmbran

Pontypool

Letchworth

St Albans

Hitchin

Tring

Marlow

LeightonBuzzard

Thame

Abingdon

Bicester

Aylesbury

BanburyEvesham

Stratfordupon Avon

GreatMalvern

Tewkesbury

Carmarthen

Ammanford

Chepstow

Abergavenny

MerthyrTydfil

Hereford

Pembroke

MilfordHaven

LlanelliNeath

Aberdare

Stevenage

Ipswich

Margate

Brentwood

Colchester

Clacton-on-Sea

Basildon

Gravesend

Dover

FolkestoneTunbridge Wells

Maidstone

Hastings

Eastbourne

RochesterGillingham

Crawley

Brighton

HoveWorthing

BognorRegis

Portsmouth

Havant

Eastleigh

Basingstoke

Camberley

StainesReading

PooleBournemouth

BathWeston-super-Mare

Swindon

Exeter

Torquay

Cheltenham

Harlow

Watford

Newport

Luton

Bedford

HighWycombe

Oxford

Milton Keynes

Gloucester

Swansea

Fareham

Gosport

Chelmsford

SOUTHAMPTON

BRISTOL

CARDIFF

PLYMOUTH

LONDON

SOUTHEND-ON-SEA

LOCATION

Southend on Sea lies in the heart of Essex and is a well-established commercial, residential and tourist hub. The town grew rapidly in the 19th century with the arrival of the railway link to London which provided a fast connection for seaside tourists. The town now boasts two railway stations with direct links to London Liverpool Street (Southend Central 1 hour 14 minutes and Southend Victoria 1 hour 16 minutes), as well as an international airport (London Southend Airport) and its own university (The University of Essex).

The town is located 42 miles east of Central London and 20 miles south of Chelmsford. Road links are excellent with the A13 providing direct access to London within 1 hour and 30 minutes.


Southend Victoria Station

Sainsburys Odeon

University of Essex

High Street

Victoria Shopping Centre

The Range


Red keyline for indicative purposes only

SITUATION

Alexander House occupies a prominent site at the junction of Victoria Avenue, Queensway and Baxter Avenue with frontages to all 3 streets. The property is less than a 1 minute walk from Southend Victoria train station and only 7 minutes’ walk from Southend Central train station.

Alexander House is opposite both the High Street and the Victoria Shopping Centre with retailers including; Boots, Next, H Samuel, Pizza Express, Vodafone, Starbucks, New Look, Odeon and Royal Bank of Scotland.

DEMOGRAPHICS

The total population of the Southend catchment area is 336,000 and it is expected to see growth at the national average over the next 5 years (Promis July 2015).

HIG

H STREET

GE NESTA RD

KINGS ROAD

VALK

YR

IE R

OA

D

FIRST AVE STATION ROAD

MIT

TON

RO

AD

HAM

LET COURT R

OAD

EAST STREET

WEST ST

W

EST ROAD

SUTTO

N R

OA

D

SUTTO

N ROAD

PRITT LEWELL CHASE

RO

CH

FOR

D R

D

HIG

HFI

ELD

GRD

S

CARLTON AVENUE

SUT

TON

RO

AD

FAIRFAX DRIVEFAIRFAX DRIVE

PRIORY CRES

WOODGRANGE DRIVE

WOODGRANGE DRIVE

WOODGRANGE DRIVE

THO

RPE

HA

LL A

VEN

UE

EASTERN ESPLANA D E THORPE ESPLANADE

HA

MSTEL R

OA

DH

AM

STEL RO

AD

LIFSTAN W

AY

LIFS

TAN

WAY

WES

TBO

UR

NE

GR

OV

E

SO

UTH

BO

UR

NE

GR

OV

E

A

1158

A13 LONDON ROAD

A13 LONDON ROAD

QU

EENSW

AY

A13 SOUTHCHURCH BOULEVARD

A13 SOUTHCHURCH ROAD

ROYAL ARTILLERY WAY

EASTERN AVENUE

A1159

PRIORY CRESCENT

A1159 M

AN

NE

RS

WAY

A 1160

THE LEASWESTERN ESPLANAD E

WE STERN ESPLANADE MARINE PARADE

A1160

CHAL

KWE

LL

AV

ENU

E

A127 PRINCE AVENUE

A127 VICTORIA AVEN

UE

A13 Q U E ENSWAY

SOUTHENDEASTSOUTHEND

CENTRAL

WESTCLIFF

CHALKWELL

SOUTHENDVICTORIA

PRITTLEWELL

ODEONCINEMA

ADVENTUREISLAND

SOUTHEND PIER

SOUTHENDHOSPITAL

WELLESLEYHOSPITAL

TESCOEXTRA

SOUTHEND LESIURE & TENNIS CLUB

GARON PARKGOLF COMPLEX

SOUTHCHURCH

SOUTHCHURCHPARK

BOURNESGREEN PARK

PRIORYPARK

WAITROSE

B&Q

THE ROYALSSHOPPING CENTRE

VICTORIA SHOPPING

CENTRE

ALEXANDER HOUSE

DESCRIPTION

The property was constructed in 1973 and comprises a 16 storey office building, a separate single storey office building to the rear used as a data centre and an additional 3 storey car park. The office building was constructed using a concrete frame with an extensively glazed façade. The specification includes:

• 8 x 12 person passenger lifts• Male, female and disabled WC’s on each floor• Air conditioning• Suspended ceilings

The site provides for 283 cars with 196 spaces located in the 3 storey car park and 87 surface parking spaces located in front of the property.


ACCOMMODATION SCHEDULE

OFFICE BUILDING

Floor Use Sq M Sq Ft15th floor Offices 695.19 7,48314th floor Offices 1,370.12 14,74813th floor Offices 1,354.33 14,57812th floor Offices 1,356.65 14,60311th floor Offices 1,356.65 14,60310th floor Offices 1,356.65 14,6039th floor Offices 1,356.65 14,6038th floor Offices 1,356.65 14,6037th floor Offices 1,356.65 14,6036th floor Offices 1,356.65 14,6035th floor Offices 1,356.65 14,6034th floor Offices 1,352.01 14,5533rd floor Offices 1,356.65 14,6032nd floor Offices 1,356.65 14,6031st floor Offices 1,529.36 16,462Ground Offices 1,380.71 14,862Ground Reception 102.01 1,098TOTAL 21,350.23 229,814

DATA CENTRE

Floor Use Sq M Sq FtWhole building Data Centre 544.88 5,865TOTAL 544.88 5,865


TENURE

The property is held freehold.

TENANCY AND INCOME

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

The office building and multi storey car park are single let to The First Secretary of State on a lease commencing 25th December 2013 and expiring 2nd April 2026. The annual rent is £1,758,658 per annum equating to £7.50 per sq ft having apportioned £39,200 per annum to the multi storey car park.

There is a tenant only break option on 2nd April 2021 with a nine month notice period. The rent is reviewed 5 yearly to the higher of Open Market Value or the passing rent. The next review is 25th December 2018.

The data centre is single let to The First Secretary of State on a separate lease commencing 25th December 2013 and expiring 2nd April 2026. The annual rent is £15,058 per annum equating to £2.57 per sq ft.

There is a tenant only break option on 2nd April 2021 with a nine month notice period. The rent is reviewed 5 yearly to the higher of Open Market Value or the passing rent. The next review is 25th December 2018.

The total income is therefore £1,773,742 per annum.

The entire property is occupied by HMRC which houses 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 House.

HMRC have occupied the building since 1973.


UEENSWAY

3941

27.7m

TCBs

SOUTHEND-ON-SEA

Victoria

Sub StaEl

Car Park

24to

28

Car Park

AlexandraCourt

Multi-storey

1to

11

15to

25

nment

ffices

27to

37

27

Cycle Way

VICTORIA

AVENUE

Sub StaEl

Museum

GovernmentOffices

Southen

21

0m 25m 50m 75m

Alexander House21 Victoria AvenueSouthend-on-Sea

Ordnance Survey © Crown Copyright 2015. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250

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 flat11 Clifftown Parade, SS1 £293,000 Sept 2013 2 bed flatFlat 5, Grange Heights, SS1 £168,000 Feb 2015 1 bed flatFlat 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, Southend

£10.78 June 2015 Ground floor letting

10 Alexandra Street, Southend

£7.46 January 2015 First floor letting

Cohav House, 16-17 Aviation Way, Southend

£10.00 August 2014 First floor letting

Princess Caroline House, 1 High Street, Southend

£9.35 June 2014 Ground floor letting

Recent comparable investment sales include:

Property Price (£million)

NIY Cap Val £psf

Date Comments

Warwick House, 67 Station Road, Redhill

£5,180,000 7.90% £253 Mar 2015 Single let to the First Secretary of State for 6.6 years

Elstree Gate, Imperial Way, Borehamwood

£9,250,000 9.60% £135 Feb 2015 Let to the First Secretary of State and Cable and Wireless for 6.2 years

Jupiter and Juniper House, Warley Hill Business Park, Brentwood

£8,390,000 8.22% £221 Feb 2015 Multi let offices with a WAULT of 3.5 years

Apollo and Lunar House, Wellesley Road, Croydon

£94,900,000 5.50% £215 Available Single let to the First Secretary of State for 8 years


PLANNING

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 (SCAAP) which sets out the strategy for major change and regeneration of the town centre.

VAT

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.

EPC

The property has an EPC score of 109 giving it a rating of E.

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. This price reflects a net initial yield of 9.86% after purchaser’s costs of 5.8% and only £72 psf capital value.

FURTHER INFORMATION

For further information please contact:

Will ElphinstoneTel: +44 (0) 20 7182 2008Mob: +44 (0) 7876 [email protected]

Paul IrelandTel: +44 (0) 203 214 1907Mob: +44 (0) 7912 205 [email protected]

James BaruchTel: +44 (0) 20 7182 2011Mob: +44 (0) 7889 [email protected]

MISREPRESENTATION ACT 1967CBRE 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.


21 victoria avenue southend-on-sea, ss99...

Documents