13-14 BUCKINGHAM GATE LONDON SW1 - Capita Symonds

13-14 BUCKINGHAM GATE LONDON SW1

INVESTMENT SUMMARY
r Freehold multi-let office investment.
r Within 50 metres of Buckingham Palace.
r Attractive Grade II listed building totalling 12,515 sq ft.
r Redeveloped behind the retained façade.
r Close to excellent transportation links.
r Current income of £459,324 p.a.
r Low average passing rent of £37.65 per sq ft.
r Range of expiry dates providing opportunities to add value through asset management.
r Potential to redevelop or extend further behind the retained façade.
r Significant development in the immediate and wider Victoria area.
r Value underpinned by potential residential conversion.
We are instructed to seek offers in excess of £9,650,000 (Nine Million Six Hundred and Fifty
Thousand Pounds) subject to contract and exclusive of VAT.
A purchase at this level reflects a Net Initial Yield of 4.50% assuming usual acquisition costs of
5.80%.
This reflects a capital value of £771 per sq ft on the net internal area and £652 per sq ft on the
approximate gross internal area.
2

BUCKINGHAM
PALACE
MAYFAIR
13-14
BUCKINGHAM
GATE
GREEN PARK
ST JAMES’S
ST JAMES’S
PARK
TRAFALGAR
SQUARE
WESTMINSTER
ABBEY
LONDON EYE
HOUSES OF
PARLIAMENT
CITY

LOCATION
LOCAL OCCUPIERS
Buckingham Gate links Buckingham Palace to Victoria’s
primary road, Victoria Street, which runs between
Victoria Mainline and Underground Stations and
Westminster Abbey adjoining Parliament Square, Big
Ben and the Houses of Parliament.
1. Duchy of Cornwall
(Prince of Wales)
2 3i Group PLC
Istithmar P&O Estates
3. Development Securities PLC
4. Ruffer LLP
Microsoft
Experian
Wellington Management
5. Jimmy Choo
6. John Lewis Partnership
7. BHP Billiton
8. Google
American Express
9. Telegraph Media Group
10. Sky Media Group
11. Boeing
12. Bircham Dyson Bell
13. Warburg Pincus
14. HSBC (UK) Ltd
15. GAM
16. Christie’s
17. Doughty Hanson
Credit Suisse
18. Cheyne Capital
13-14 Buckingham Gate is located on the south side
of Buckingham Gate immediately opposite Wellington
Barracks and within 50 metres of Buckingham Palace.
The Foot Guards Battalions located in the Barracks guard
Buckingham Palace and have been in residence since
the year before the Battle of Waterloo in 1815.
Much of Buckingham Gate, including the subject
building was originally built as town houses in the mid
1800’s. Whilst most were converted to offices, hotels
and embassies during the latter half of the 1900’s,
many are now being converted back for residential use.
Victoria is an established office, residential and retail
location and forms an integral part of the London
West End market. Located in the City of Westminster
it is bordered by St James’s to the north, Belgravia and
Knightsbridge to the west and the River Thames to the
south and east.
Whilst Victoria already includes almost a quarter of
all office accommodation in the West End, 2.0m sq ft
of anticipated development in and around Victoria
Station over the next few years will dramatically
increase the amount and quality of residential, office
and retail stock.
The subject building benefits from being within 500
metres of Victoria Station, one of London’s busiest
transport interchanges. Victoria’s Mainline Railway
Station, in particular, is the second busiest in the UK
providing services to Gatwick Airport, South London,
Kent and Sussex. A £700m refurbishment of the Station
is due for completion in 2018.
Victoria Underground Station provides direct
connections to Midtown and the City to the east and
Oxford Street, Edgware Road and Kings Cross to the
north via the Victoria, Circle and District lines.
Hyde Park
Knightsbridge
KNIGHTSBRIDGE
Belgrave
Square
Garden
Sloane Square
Hyde Park
Corner
KNIGHTSBRIDGE
PONT STREET
SLOANE STREET
EATON GATE
BE LGRAVE PLACE
EATON SQUARE
MAYFAIR
EBURY STREET
PICCADILLY
13-14
BUCKINGHAM
GATE
LOWER GROSVENOR PLACE
Green Park
CONSTITUTION HILL
8
10
BUCKINGHAM PALACE ROAD
Berkeley Square
9
Victoria
Green Park
Buckingham
Palace
WI LTON ROAD
.
7
3
6
1
ST JAMES’S ST
15
PALACE STREET
4
2
14
18
16
KING ST
CLEVELAND ROW
BUCKINGHAM GATE
5
13
VICTORIA STREET
FRANCIS STREET
St James’s Square
ST JAMES’S
17
BIRDCAGE WALK
St. James’s Park
ROCHESTER ROW
PALL MALL
THE MALL
St. James ’s Park
VINCENT SQUARE
12
VICTORIA STREET
GREAT PETER
REGENCY STREET
11
STREET
HORSE GUARDS ROAD
STORY’ S
GATE
GREAT SMITH STREET
HORSEFERRY ROAD
Parliament
Square
Westminster
Abbey
MARSHAM ST REET
WHITEH ALL
PARLIAMENT ST REET
MARGARET STREET
MILLBANK
Westminster
Houses of
Parliament
MILLBANK
VICTORIA EMBANKMENT
WESTMINSTER BRIDGE
LAMBETH BRIDGE
4
VAUXHALL BRIDGE

DESCRIPTION
Built originally as two houses in the mid 1800’s,
13 - 14 Buckingham Gate comprises an attractive period
building. Redeveloped behind the retained façade, the
building provides high quality self contained office
accommodation over lower ground to fourth floors.
The floors are well laid out and accessed via a generous
reception area leading to a seven person passenger lift
serving all floors. A flat roof above the rear of the first
floor provides future potential for roof terraces and
further development, subject to usual consents and
further investigations.
The property benefits from stunning views towards
Buckingham Palace and St James’s Park from the first
to fourth floors of the property.
The lower ground floor benefits from excellent natural
light from both the front and side elevations following
the addition of a lightwell in 2005.
The specification comprises as follows:
r VRV Air Conditioning
r Metal tiled suspended ceilings
r Perimeter trunking
r Recessed lighting
r Floor to ceiling heights of 2.3m to 2.8m
There are male and female toilets on the lower ground
floor and alternate male and female toilets on the rest
of the floors. There is a disabled toilet on the ground
floor.
The lightwell of 268 sq ft on the lower ground floor is
demised to the tenant. This provides natural light from
floor to ceiling height windows and serves as a private
courtyard.
5

Office
FLOORPLANS
TENURE
14 11-12
13
15
24
The property is held Freehold and is shown edged red for
14 Buckingham Gate, London, SW1E 6LB
identification purposes only on the OS Extract.
The property benefits from a right of escape through No 22-26
Stafford Place and the adjoining passageway.
1 5
10
Duchy of
Cornwall
Office
BUCKINGHAM
MEWS
5.1m
35
Stone
14 11-12
2
21
29
13
37
276
15
24
25
47
Existing LG Floor Existing G Floor Existing 1st Floor
Indicative Upper Floor
ACCOMMODATION
0m 5m 10m 15m
1 5
The property has been measured in accordance with the RICS Code
of Measuring Practice (6th Edition) and provides the following net
internal areas:
We have been provided with the following approximate gross
internal areas:
BUCKINGHAM
23
Ordnance Survey © Crown Copyright 2013. All rights reserved.
Licence number 100020449. Plotted Scale - 1:500
35
CATHERINE PLA
21
2
MEWS
29
37
276
Floor Use Area sq m Area sq ft
Floor Area sq m Area sq ft
Fourth Offices 125.23 1,348
Third Offices 135.76 1,461
Fourth 159 1,712
Third 159 1,712
25
47
Second Offices 134.61 1,449
Second 159 1,712
0m 5m 10m 15m
23
CATHERINE PLACE
First Offices 270.52 2,912
First 292 3,143
Ordnance Survey © Crown Copyright 2013. All rights reserved.
Licence number 100020449. Plotted Scale - 1:500
Ground Offices 232.81 2,506
Ground Reception 29.26 315
Ground 295 3,175
Lower Ground Offices 234.48 2,524
Lower Ground 310 3,337
Total 1,162.67 12,515
Total 1,374 14,791
6

COVENANT INFORMATION
TENANCIES
The building is multi-let in accordance with the tenancy schedule below.
The income profile shows weighted unexpired terms as follows:
Unexpired to expiry 5.1 years
Unexpired to break 2.6 years
All leases are contracted outside Sections 24 to 28 of the Landlord and Tenant Act 1954 (as amended).
TENANCY SCHEDULE
Tenant Date Of Accounts Turnover Profit Before Tax Net Tangible
Assets (Liabilities)
Agilitas Partners LLP 31/03/2012 N/A (£383,603) £101,068
A pan- European mid-market private equity firm. A current rent deposit of £16,200 is held by the vendor.
Renovata Partners Ltd 31/12/2011 N/A N/A £930,966
A recruitment consultant acting for internet and technology companies seeking executive or board
level employees. For over 15 years the company has worked with founders, venture capital and private
equity firms to recruit business leaders.
Halcyon Property UK Ltd 31/03/2012 N/A N/A (£15,340)
The company specialises in high quality residential real estate in Central London. A current rent deposit
of £23,370 is held by the vendor.
DFJ Esprit LLP 31/03/2012 £5,562,768 £1,229,104 £2,564,496
DFJ Esprit is a venture capital company that is part of the DFJ Global Network, the largest venture
capital network in the world, that co-operate on investment diligence and co-investing.
Wilfred T Fry Ltd 31/03/2012 £10,991,000 £594,000 £2,117,000
Part of The Fry Group, a group of companies engaged as tax consultants, executors and trustees and
personal financial planners.
CVG Ltd 30/09/2012 N/A N/A (£159,509)
The Customer Value Group is a software company focused on bespoke accounts receivable solutions
which are used to manage revenues in excess of €20 bn in 100 worldwide locations. A current rent
deposit of £57,979 is held by the vendor.
Floor Tenant Area sq ft Lease Start Rent Review Lease End Tenant Break
Option
Rent
Rent
(£ per sq ft)
2013 Service
Charge Cap
(£ per sq ft)
Rent
Deposit
Comments
Fouth Floor Agilitas Partners LLP 1,348 10/08/2011 09/08/2016 10/08/2014 £54,000 £40.06 £11.54 £16,200 S/C cap subject to RPI indexation.
Third Floor Renovata Partners Ltd 1,461 23/12/2010 22/12/2015 22/12/2013 £56,979 £39.00 £10.88
Schedule of Condition. Break penalty
of £9,496.50. Rent rises to £58,440 on
23/04/2014.
S/C cap subject to RPI indexation.
Second Floor Halcyon Property UK Ltd 1,449 15/07/2011 14/07/2016 £58,425 £40.32 £13.22 £23,370 S/C cap subject to RPI indexation.
First Floor DFJ Esprit LLP 2,912 19/06/2011 19/06/2016 18/06/2021 19/06/2016 £118,400 £40.66 £12.00 S/C cap falls away from 19/06/2016.
Ground Floor Wilfred T Fry Ltd 2,506 26/02/2007 26/02/2012 25/02/2017 £101,520 £40.51 Rent review outstanding.
Lower Ground CVG Ltd 2,524 01/01/2010 01/01/2015 31/12/2019 31/12/2014 £70,000 £27.73 £57,979
Total £459,324 £37.65
7

OCCUPATIONAL MARKET
We highlight the following recent transactions on Buckingham Gate and in the immediate area:
Date Property Tenant Floor Area
Sq ft
Rent
(£ per sq ft)
Apr-13 123 Victoria Street John Lewis Partnership Pt 3 & Pt 4 35,000 £55.00
Mar-13 5-8 The Sanctuary Lese Investments LLP 4th 2,024 £40.00
Mar-13 85 Buckingham Gate Development Intelligence Ground 1,131 £50.00
Jan-13 80 Victoria Street Instant Offices Pt 4 14,800 £64.00
Jan-13 123 Victoria Street CPA Pt 3 & Pt 4 12,600 £59.00
Dec-12 19-20 Grosvenor Place Henley & Partners 1st 3,400 £40.00
Nov-12 85 Buckingham Gate Williams Lea UK Ltd 2nd 2,186 £55.00
Sep-12 85 Buckingham Gate Marlin Capital 3rd 1,468 £61.00
May-12 5-8 The Sanctuary Cluff Natural Resources 3rd 2,237 £40.00
INVESTMENT MARKET
Recent comparable multi-let office investment transactions are summarised below:
Date Building Tenure Sale Price Yield Capital Value
£ per sq ft
Comments
Apr 2013 18 Buckingham Gate, SW1 Freehold U/O c. £9.75m c. 4.50% £750 Lease expiries between June 2013 and Oct 2017. Under offer.
Apr 2013 Buckingham Court, 75-83 Buckingham Gate, SW1 Freehold Q. £10,000,000 5.15% £623 Lease expiries between Apr 2013 and Feb 2032. Includes a retail element. Under offer.
Apr 2013 25-28 Buckingham Gate, SW1 Freehold £22,000,000 1.85% £768 Part vacant. Short term lease expiries.
Mar 2013 19 Buckingham Gate, SW1 Freehold £6,800,000 3.98% £918 Single let to June 2017. Part sub-let.
Feb 2013 Ames House, 6-7 Duke of York Street, SW1 Freehold £20,100,000 3.95% £745 Part vacant with rent topped up. Lease expiries between Mar 2016 and
Dec 2020. Includes a residential element.
Jan 2013 2 Queen Anne’s Gate, SW1 Freehold £13,200,000 5.87% £750 Lease expiries between June 2013 and Dec 2020.
Dec 2012 The Peak, Wilton Road, SW1 Freehold £113,000,000 4.94% £1,153 AWULT to lease expiry of 11.7 years. Includes a retail element.
Oct 2012 11-12 Buckingham Gate, SW1 Freehold £10,750,000 4.70% £847 One vacant floor and lease expiries between Nov 2013 and Nov 2015.
Jun 2012 6 Duke Street, SW1 Freehold £39,350,000 4.54% £1,230 Lease expiries between Dec 2012 and Mar 2019. Includes a retail element.
Jun 2012 Willow House, 17-23 Willow Place, SW1 Freehold £4,900,000 4.80% £703 Lease expiries during 2014.
8

RESIDENTIAL POTENTIAL
Examples of office buildings that have recently been granted planning
permission to convert from office to residential use on Buckingham Gate
include:
1
No. Address Planning Consent
2
1 1-3 Buckingham Gate
& 1 Palace Street
Application made March 2013.
78 apartments
2 6-9 Buckingham Gate Consent granted February 2009.
Single house and 8 apartments
5
4
3
3 17 Buckingham Gate Consent granted October 2010.
Single house
4 22 Buckingham Gate Consent granted October 2012.
7 apartments
6
7
8
5 24 Buckingham Gate Consent granted July 2011.
Amended March 2013.
9 apartments
6 39 Buckingham Gate Consent granted March 2012.
Single house
7 Wellington House,
Buckingham Gate
Consent granted October 2009.
59 apartments
8 Buckingham Court, 75-83
Buckingham Gate
Consent granted May 2012.
6 apartments
A residential scheme of 9
appartments including two new
light wells has been prepared
by Paul Davis & Partners
architects.
Illustrative plans are shown here.
Indicative Lower Floor
Indicative Upper Floor
9

SERVICE CHARGE
The service charge budget for the year ending 31 December 2013 is £130,570, which based on the
service charge areas equates to £10.45 per sq ft.
Some of the leases contain service charge caps which are detailed on the tenancy schedule. There are
however no service charge shortfalls based on the current budget.
Further details are available on request and on the website for the property:-
red.capitasymonds.co.uk/buckgate
PLANNING
The property is Grade II listed and is situated within the City of Westminster and the Birdcage Walk
Conservation Area.
VAT
The property is elected for the purposes of VAT and as such VAT will be payable on the purchase price.
It is envisaged however that the sale will be dealt with by way of a Transfer of a Going Concern (TOGC).
EPC
The building has an EPC rating of 107/E. Further information is available on request.
CAPITAL ALLOWANCES
The Vendor will retain any available Capital Allowances and any purchaser will be required to enter
into a £1 S198 election.
10

PROPOSAL
r Attractive Freehold period building
redeveloped behind the façade.
r Located within 50 metres of Buckingham
Palace.
r Close to excellent communication links.
r Multi-let office investment with range of
lease expiries.
r Considerable development in the local
and wider Victoria area.
r Low average passing rent of £37.65 per sq ft.
r Value underpinned by future residential
potential (subject to consents).
We are instructed to seek offers in excess of
£9,650,000 (Nine Million Six Hundred and
Fifty Thousand Pounds) subject to contract
and exclusive of VAT.
A purchase at this level reflects a Net Initial
Yield of 4.50% assuming usual acquisition
costs of 5.80%.
This reflects a capital value of £771 per sq ft on
the net internal area and £652 per sq ft on the
approximate gross internal area.
11

FURTHER INFORMATION
Website: red.capitasymonds.co.uk/buckgate
Andrew Mercer
020 7544 4215
amercer@capita.co.uk
Robert Cass
020 7544 2256
robert.cass@capita.co.uk
Belinda Harris
020 7544 2108
belinda.harris@capita.co.uk
Note: Capita Symonds Ltd (“CSL”), trading as Capita Symonds, part of The Capita Group Plc, for itself and as agent for the vendors or lessors (the“Seller”) of this property, gives notice that (1) These particulars do not constitute any part of an offer or a contract (2) Whilst every attempt
has been made to ensure accuracy, this cannot be guaranteed and, therefore (save as set out at (6) below), (a) all statements and descriptions in these particulars as to this property are made without responsibility or liability on the part of CSL or the Seller, (b) no such statements
or descriptions are to be relied on as statements or representations of fact (c) all measurements are approximate and no responsibility is taken for any error, omission or misstatement and (d) any intending purchasers or lessees must satisfy themselves by inspection or otherwise
as to the correctness of each of the statements, particulars and representative photographs contained herein. (3) The Seller does not make or give, and neither CSL nor any of its employees or agents makes or gives nor has any authority to make or give, any representation or
warranty whatsoever in relation to this property. (4) Unless otherwise stated, all prices and rents are quoted exclusive of VAT and no statement is made as to the incidence of VAT. (5) No liability is accepted and no representation is made by either CSL or the Seller in respect of
the presence, condition, adequacy or usability of any telecommunications or computer systems or equipment at the property, any software loaded thereon, or any related cabling or infrastructure. (6) Nothing herein shall exclude any liability which either the Seller or CSL would
otherwise have for any fraudulent concealment or for any statements made fraudulently by it, its employees or agents.
Adrian Gates Photography & Brochures 07710 316 991.
www.csrealestate.co.uk
020 7544 2000