19 Buckingham Gate - Allsop

19 Buckingham Gate
London SW1
West End Freehold office investment opportunity

19 Buckingham Gate
Investment Summary
West End Freehold office building 150 metres from Buckingham Palace.
Victoria is set to benefit from the substantial redevelopment of its office, retail
and residential stock, in addition to its transport infrastructure.
Attractive building extending to 7,405 sq ft (688 sq m) net internal area and
approximately 9,600 sq ft (892 sq m) gross internal area.
Let to The Communication Group plc on a lease expiring June 2017, at a
relatively low passing rent reflecting £38.70 per sq ft overall.
Potential to extend and convert to residential in the medium-term (subject
to necessary consents), with alternative residential use underpinning the
investment value.
Price
We are instructed to seek offers for the Freehold interest in excess of £5,700,000
reflecting a net initial yield of 4.75% after deduction of 5.80% purchaser’s costs.
This reflects a capital value on the net internal area of £770 per sq ft and
£594 per sq ft on the estimated gross internal area.

19 Buckingham Gate
THE CITY
OXFORD CIRCUS
PICCADILLY CIRCUS
TRAFALGAR SQUARE
MAYFAIR
ST JAMES’S
LONDON EYE
HOUSES OF PARLIAMENT
THE MALL
ST JAMES’S PARK
WESTMINSTER ABBEY
Buckingham Palace
19 Buckingham Gate
CARDINAL PLACE

REGENT STREET
KELEY SQUARE
REET
BERKELEY SQUARE STRATTON STREET
MOUNT STREET
SOUTH AUDLEY STREET
HILL STREET
19 Buckingham Gate
REGENT STREET
HAYMARKET
Location
Victoria is a key market in Central London, in the heart of the West End,
bounded by Mayfair and St. James’s to the north, Belgravia to the west
and Parliament Square to the east.
In addition to providing around a quarter of the total West End office
stock, it provides an eclectic mix of high-quality retail, residential and
hotel accommodation. This is enhanced by key tourist attractions
including Buckingham Palace, The Houses of Parliament, and
Westminster Abbey.
Victoria is experiencing the most extensive development for a
generation. Following the completion of Cardinal Place in 2007, which
has dramatically enhanced the retail and office offering, in excess of
KENSINGTON ROAD
KNIGHTSBRIDGE
two million sq ft of mixed-use development is planned for the short to
medium term, led by Land Securities. Major corporate office occupiers
including 3i, Burberry, American Express, Microsoft, EDF energy, Jupiter
Asset Management, Global Infrastructure Partners, and Jimmy Choo have
been attracted by recent high-quality developments.
The area has seen a significant amount of office space converted to
residential, arguably in greater proportion than the general London trend.
Victoria benefits from excellent communications. St James’s Park,
Westminster, Green Park and Victoria underground stations are all within
a short walk providing access to District and Circle, Victoria, Piccadilly and
Jubilee lines. Victoria mainline station provides access to the south and
a direct link to London Gatwick Airport in 30 minutes. Victoria Station,
which experiences 80 million passenger journeys per annum, is currently
undergoing a major £700 million transformation.
Situation
The property is situated on the south side of Buckingham Gate opposite
Wellington Barracks, and benefits from stunning views towards St James’s
Park, Buckingham Palace and the Queen Victoria Memorial.
THURLOE PLACE
ENNISMORE GARDENS
FULHAM ROAD
RUTLAND GATE
RUTLAND GATE
EGERTON GARDENS
EGERTON TERRACE
LUCAN PLACE
MONTPELIE R STREET
YEMAN’S ROW
TREVOR P LACE
OVINGTON GARDENS
BROMPTON ROAD
BEAUFORT GARDENS
WALTON STREET
FIRST STREET
OVINGTON STREET
DRAYCOTT AVENUE
SLOANE AVENUE
HANS ROAD
LENOX GARDENS
MILNER STREET
HANS CRESCENT
Knightsbridge
CADOGAN SQUARE
SERPENTINE ROAD
Hyde Park
SOUTH CARRIAGE DRIVE
PAVILION ROAD
SLOANE STREET
PONT STREET
CADOGAN SQUARE
PAVILION ROAD
LOWNDES SQUARE
KNIGHTSBRIDGE
LOWNDES SQUARE
CADOGAN PLACE
SLOANE STREET
CADOGAN PLACE
LOWNDES STREET
WILBRAHAM PLACE
SLOANE TERRACE
SLOANE SQUARE
CADOGAN LANE
Hyde Park
WILTON CRESENT
BELGRAVE MEWS NORTH
BELGRAVE MEWS WEST
CHESHAM STREET
Sloane Square
BELGRAVE SQUARE
CHESHAM PLACE
LYALL STREET
EATON PLACE
PARK LANE
PARK LANE
Hyde Park Corner
EATON TERRACE
GROSVENOR CRESENT
HALKIN STREET
BELGRAVE SQUARE
GROSV ENOR PLACE
MONTROSE PLACE
BELGRAVE PLACE
EATON SQUARE
SOUTH EATON PLACE
HEADFORT PLACE
ELIZABETH STREET
HAMILTON PLACE
CHAPEL STREET
UPPER BELGRAVE STREET
EATON SQUARE
CHARLES STREET
CHESTER STREET
ECCLESTON STREET
CURZON STREET
HERTFORD STREET
OLD PARK LANE
SEMLEY PLACE
GROSVENOR PLACE
WILTON STREET
DOWN STREET
SHEPHERD STREET
PICCADILLY
Buckingham Palace
Gardens
LOWER BELGRAVE STREET
ECCLESTON PLACE
Green Park
CONSTITUTION HILL
LOWER GROSVENOR PLACE
GROSVENOR GARDENS
BUCKINGPALACE ROAD
HIGH STREET
ST GEORGE’S DRIVE
Victoria
ECCLESTON SQUARE
BERKELEY STREET
Green Park
Buckingham Palace
BRESSENDEN PLACE
ALLINGTON STREET
ECCLESTON SQUARE
HUDSON PLACE
WILTON ROAD
STAFFORD PLACE
GILLINGHAM STREET
QUEENS WALK
PALACE STREET
CARLISLE PLACE
WILTON ROAD
ST JAMES’S STREET
WARWICK WAY
JERMYN STREET
WILFRED STREET
VICTORIA STREET
STABLE YARD ROAD
DUKE STREET
THE MALL
St James’s Park
BUCKINGHAM GATE
CASTLE LANE
VAUXHALL BRIDGE ROAD
BIRDCAGE WALK
AMBROSDEN AVENUE
HOWICK PLACE
THIRLEBY ROAD
FRANCIS STREET
TACHBROOK STREET
ST JAMES’S PARK
ST JAMES’S PARK
PALL MALL PALL MALL
PETTY FRANCE
ROCHESTER ROW
ARTILLERY ROW
St James’s Park
CAXTON STREET
QUEEN ANNE’S GATE
BROADWAY
WATERLOO PLACE
VICTORIA STREET
STRUTTON GROUND
VINCENT SQUARE
HORSEFERRY ROAD
CHAPTER STREET
THE MALL
QUEEN ANNE’S GATE
PERKIN’S RENTS
RUTHERFORD STREET
REGENCY STREET
OLD Q
TOTHILL STRE
VINC
WARWICK WAY
WARWICK STREET
ARWICK STREET
BELGRAVE ROAD
R STREET
RLWOOD STREET
VAUXHAL

19 Buckingham Gate
19 Buckingham Gate

19 Buckingham Gate
Description
The property comprises offices arranged over lower
ground, ground and five upper floors behind a
period-style facade. The building was refurbished
and extended in the mid-1980s and benefits from
perimeter/underfloor trunking, suspended ceilings,
ceiling mounted air-conditioning and a passenger lift
serving all floors. The lower ground floor is relatively
small in proportion to the rest of the building, with
separate access and light from the front. The ground
floor has been extended to the rear and benefits from
a small patio area.

19 Buckingham Gate
Accommodation
The property comprises the following net internal floor areas:
Floor sq ft sq m
5th 936 86.95
4th 1,004 93.27
3rd 1,029 95.59
2nd 1,135 105.44
1st 1,200 111.48
Ground 1,535 142.60
Lower Ground 566 52.58
Total 7,405 687.91
We estimate the approximate gross internal floor area to be 9,593 sq ft (891 sq m).

19 Buckingham Gate
FLOOR PLANS
N
Boiler
Room
.
Lift
Shaft
Lift
Machinery
Lift
Lift
Lift
Lift
Lift
Lift
Lightwell
LOWERGROUND FLOOR
FLOOR
FIRSTFLOOR
SECONDFLOOR
THIRDFLOOR FLOOR FLOOR LOWER GROUND GROUND FOURTH FIFTH ROOF

19 Buckingham Gate
19 Buckingham Gate
London
Tenure
Tenancy
EPC
Freehold.
The property is entirely let to The Communication Group plc on FRI terms from 24th June
1987 and expiring 24th June 2017. The passing rent of £286,630 reflects £38.70 per sq
ft overall. There is currently an outstanding review from June 2012.
Energy Performance Certificate.
Barracks
Barracks
The tenant occupies the lower three floors and has sub-let the 3rd and 4th floors to
Paccship UK Ltd by way of two sub-leases expiring on 31st August 2014. The 5th floor
has been sub-let to Risk Management Group Ltd until 31st October 2015 and the tenant
has applied to underlet the 2nd floor on a short flexible term. All the sub-leases are
contracted outside the Landlord & Tenant Act 1954.
Buckingham Gate
14
15
Tenant’s Covenant
16
17
18
19
20
21
The Communication Group plc is a management and public relations consultant. Clients
include De Beers, Coutts, Rolls Royce and BHP Billiton. They are a public company
incorporated in 1985. The latest accounts available for the year ending December 2011
show tangible net worth of £212,729 off sales turnover of £2,096,438.
www.thecommunicationgroup.co.uk.
37
22
23
24
Residential Development Potential
16
47
51
53
Catherine Place
55
55a
57b
Retail
57a
Subject to necessary consents, the building would suit conversion to residential flats. Upon
lease expiry it should be possible to improve floor plate efficiency, increasing the saleable
area over the current net internal. In addition it may be possible to extend to the rear at
lower levels and potentially add a 6th floor.
Our clients have commissioned architects to produce an initial feasibility study into
conversion of the building to residential flats. Plans are available on request.
12
0m 5m 10m 15m
26
30
32
57
59
Residential Market
A favourable planning regime and escalating prices for prime London residential property
has resulted in a growing number of conversions from office to residential use.
VAT
We understand that the building is not elected for VAT and
therefore VAT will not be payable on this purchase.
A number of precedents have been set along Buckingham Gate in recent years, with
at least eight buildings or around 20% of the commercial stock, obtaining planning
permission for conversion to residential. Schemes include Land Securities’ 59 units
at Wellington House, 70 Buckingham Gate, with both 24 and 6-9 Buckingham Gate
currently under construction. Further office properties have been purchased recently
with the intention to convert to residential, including 1-3 Buckingham Gate, with around
170,000 sq ft of prime residential planned.
Planning
The property is not listed although is situated within the Birdcage Walk
Conservation Area.

19 Buckingham Gate
Price
We are instructed to seek offers for the Freehold interest in
excess of £5,700,000 reflecting a net initial yield of 4.75% after
deduction of 5.80% purchaser’s costs. This reflects a capital value
on the net internal area of £770 per sq ft and £594 per sq ft on
the estimated gross internal area.
Investment Considerations
Freehold.
Income until June 2017 – when the majority of Victoria’s
redevelopment proposals will have been completed.
Relatively low passing rent of £38.70 per sq ft per annum.
Capital value per sq ft underpinned by vacant possession
values and residential change of use. Residential values
anticipated to grow strongly in core London locations, driven
by overseas investors.
Floor plate lends itself well to residential conversion, with
proportionally small lower ground floor; potential to extend the
rear, and improve efficiency.
Contact
Strictly through the sole selling agents Allsop LLP.
Nick Pemberton
+44 (0)20 7543 6775
nick.pemberton@allsop.co.uk
Piers Glover
+44 (0)20 7543 6810
piers.glover@allsop.co.uk
Potential to negotiate an earlier surrender with the tenant.
Misrepresentation Act: 1 Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particular as to the property are to
be relied on as statement or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop nor any of their members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties,
undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2 Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves
as to the correctness of each statement contained in these particular; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all
necessary searches and enquires. Allsop is the trading name of Allsop LLP.