3. Sanctuary Buildings //
LONDON SW1
01
investment summary
05 location
10 communications
13
THE CHANGING FACE OF VICTORIA
17 description
22
ACCOMMODATION
27 Tenure and tenancy
28
Asset Management Initiatives
31 Investment Market Commentary
32 Proposal
34
Further Information
4. investment
summary
Sanctuary Buildings //
A significant freehold
investment with long
term asset management
opportunities.
The opportunity to acquire a
substantial freehold office building
with secure government income in
one of the most rapidly developing
areas of the capital.
• Landmark headquarters
development of 227,100 sq ft
of Grade A office space in a
strategic West End location
within close proximity to the
Houses of Parliament.
• Freehold.
• High quality office floor plates of
up to 26,790 sq ft centred around
a spectacular atrium and arranged
over two basements, lower ground,
ground and eight upper floors.
• The building is entirely let to
the undoubted covenant of
The Secretary of State for the
Environment, on a lease expiring
September 2017.
• Total passing rent of £10,300,000
per annum which equates to only
£45.35 per sq ft overall.
• Excellent asset management
opportunities at lease expiry to
increase the office floor area, or
convert to residential and capitalise
on the rising residential values
in Victoria.
• Opportunity to benefit from the
continued transformation of
Victoria’s cityscape with a number
of high profile mixed use, office,
retail and residential schemes
currently under construction.
• Offers are sought, subject to
contract, for the freehold interest in
Sanctuary Buildings. The freehold
interest is held in a Special Purpose
Vehicle (‘SPV’). We are seeking
offers in excess of £184,000,000,
reflecting a Net Initial Yield of
5.50% (assuming acquisition costs
of 1.80%), and a capital value
per sq ft of £810.
01
5. SANCTUARY BUILDINGS//
MAYFAIR
HYDE PARK
ST JAMES’S
GREEN PARK
BUCKINGHAM PALACE
ST JAMES’S PARK
HORSE GUARDS PARADE
CARDINAL PLACE
WESTMINSTER CATHEDRAL
WESTMINSTER ABBEY
HOUSES OF PARLIAMENT
6. location
Victoria is the epicentre of
political and symbolic power in
London, from the political village
of Westminster to the home of
royalty at Buckingham Palace.
Bordered by St James’s Park and
Buckingham Palace to the north, the
squares of Belgravia to the west and the
River Thames to the south and east,
Victoria combines some of the most historic
sites in London, the busiest transport
interchanges and some of the capital’s
most desirable residences.
Victoria’s strategic location, separating
the iconic West End districts of Mayfair,
St James’s, Westminster and Belgravia,
coupled with the area’s excellent transport
links and ongoing transformation of its office,
retail and residential stock has established
Victoria as a thriving West End address.
Victoria has been historically shaped
by its proximity to Westminster and the
Houses of Parliament leading to the area
being dominated by political occupiers.
However, in recent times, thanks to
transformational developments such as
Cardinal Place, Belgrave House and
The Peak, the area has reinvented itself
attracting major corporate occupiers
including Burberry, Jimmy Choo,
Tom Ford and Microsoft.
05
7. T
STREE
LIVERPOOL STREE
STATION
KIN
GDON
FARRIN
Lincoln’s Inn Fields
Y
WA
GS
COVENT
GARDEN
YCH
DW
AL
Covent Garden
Market
EH
WHIT
Horse Guards
Parade
ALL
St James’s Park
Green Park
20
19
Buckingham Palace
E
The Globe
H
BR
ID
National
Theatre
BLACKFRIARS ROAD
FO
RD
R I V
E R
M
VICTOR
E
TH
IA EM
BANK
MEN
T
HU
NG
ER
L
AL
CANNON STREET
STATION
Tate
Modern
Queen
Elizabeth Hall
T
GREEN PARK
M
E S
EMBANKMENT
St James’s
Square
BLACKFRIARS
GE
ID
BR
CHARING CROSS
STATION
QUEEN VICTO
RIA STREET
LOND
ON
O
LO
ER
AT
W
ST JAMES’S
THE CITY
BRIDG
Piccadilly
Circus
A
MANSION HOUSE
CORNHILL
MONUMENT
T
MEN
NK
BA
EM
RIA
TO
VIC
Trafalgar
Square
BANK
E
Leicester
Square
PICCADILLY
ND
St Paul’s
Cathedral
HILL
Bank of
England
PSID
E
TEMPLE
Somerset
House
RA
ST
LUD
GATE
CHEA
BLACKFRIARS BRIDGE
LEICESTER SQUARE
CITY THAMESLINK
STATION
RID
G
Royal Opera
House
SOHO
T
FLEET STREE
S OU
THW
ARK
B
COVENT GARDEN
Royal Courts
of Justice
NEW BRIDGE STREET
OXFORD CIRCUS
ST PAUL’S
Hayward
Gallery
GE
Royal Festival
Hall
SO
UT
HW
AR
K
SOUTH BANK
STR
EET
Borough
Market
LONDON BRIDGE
STATION
Imax
WATERLOO
(EAST) STATION
London Eye
SOUTHWARK
WATERLOO
STATION
London
Aquarium
County Hall
WESTMINSTER
WESTMINSTER BRIDGE
Parliament
Square
ST JAMES’S PARK
Houses of
Parliament
Westminster
Abbey
T
EE
A
7
8
14
VICTORIA
3
1
12
10
VICTORIA
NK
11
4
Sanctuary
Buildings //
13
MILLBA
2
9
ITH STREET
5
2
GREAT SM
6
R
ST
VI
1
4
3
I
OR
CT
15
17
18
16
Vincent Square
LAMBET
H BRIDG
E
Office Occupiers
1. Metropolitan Police
2. Boeing
3. Global Infrastructure Partners
4. John Lewis
5. Microsoft
6. Development Securities
7. 3i
8. P&O
9. Experian
10. Phillips de Pury & Co
11. Tom Ford
12. Links of London
13.
Association of the British
Pharmaceutical Industry
14. Rolls Royce
15. Channel 4 Television
16. Burberry
17. The Home Office
18. Energy Networks Association
19. HM Treasury
20. Foreign Commonwealth Office
Theatres
1. Apollo Victoria Theatre
2. Victoria Palace Theatre
3. Above The Stag Theatre
4. St James Theatre
The appeal of Victoria now extends far
beyond that of office occupiers. The area is a
highly desirable place to live, shop and visit.
Offering a diverse range of local amenities
including luxury hotels, grand theatres,
high-end retail and a selection of fashionable
bars and restaurants, Victoria has established
itself as a vibrant destination well suited to
the needs of 21st century London.
07
8.
9. ve
r
nn poo
ac on l S
t
kf
S
ria tre ree
et t (1
rs
(6
6
(8
m
m mi
n
in
i
ut nut ute
es
e
s
*) s*) *)
Eu
st
on
(1
Ki
ng
’s
C
4
m ros
in
ut s S
es t.
*) Pa
nc
ra
s
(1
6
Baker Street (7 minutes*)
Paddington (13 minutes*)
Heathrow airport (35 minutes*)
via Paddington Express
m
in
ut
es
*)
communications
Bl
Ca
Li
Green Park
(2 minutes*)
Victoria
(3 minutes*)
St. James’s
Park
Westminster
Sanctuary
Buildings //
W
at
er
lo
o
(1
m
in
ut
es
*)
Travel times from
*
Westminster underground
Victoria is exceptionally
well served by public transport
and is regarded as one of
the most important transport
hubs in London
Victoria Station, 950 metres to the west
of the property, is one of London’s busiest
transport hubs. In 2010/2011 it transported
73.6 million passengers making it the UK’s
second busiest railway station. Victoria
Station provides quick and direct access
to London’s Gatwick Airport, with trains
departing every 15 minutes. In addition,
the coach terminus is London’s main coach
station and provides access to the majority of
major cities around the UK and Europe.
10
New Victoria Station (CGI)
Improving Communications
Westminster, St James’s Park and
Victoria underground stations as well as
Waterloo underground and mainline stations
are all within walking distance providing
access to the Jubilee, Victoria, Northern,
Bakerloo and Circle and District lines.
Westminster underground is the closest
station (approximately 300 metres to the
north) and provides access to the Circle,
District and Jubilee lines.
Victoria Station is currently in the
process of being substantially upgraded.
£700 million is being invested into
improving the existing station’s accessibility
and transport infrastructure.
The improvements will include:
• A new underground north ticket hall
at the junction of Bressenden Place
and Victoria Street with an entrance
at street level;
• Enlarging the Victoria line south ticket hall;
• Nine new escalators;
• A new interchange tunnel connecting
the two ticket halls;
• New lifts providing step-free access
between street level, ticket hall and
Victoria line platform levels;
•
•
New lifts providing access between
the Victoria line and District and
Circle line platforms;
Improved access and new lifts
between the National Rail and
underground platforms.
The construction of the north ticket hall
is due to complete in the summer of 2016,
with the remainder of the improvement
works due for completion in 2018.
11
10. THE CHANGING FACE
OF VICTORIA
SANCTUARY BUILDINGS//
Victoria’s traditional political
heart is being further transformed
with a series of place-changing
developments bringing extra vitality
and variety to the area.
The stylish and sleek nature of the newly
completed developments contrast superbly
with the instantly recognisable period
architecture that Victoria is famous for.
Historic cathedrals, royal parks and famous
theatres are set alongside the award winning
modern architecture of Cardinal Place, The
Peak and the future Land Securities’ schemes
that are emerging from the ground.
Occupiers from all sectors, from finance
and technology to media and fashion, now
prefer Victoria to the more traditional office
locations of Mayfair and St James’s due to
its excellent transport links, unrivalled office
floor plates and more affordable rents.
Over the coming decade much of
Victoria will be further transformed
into something well tuned to the needs
of contemporary London, whilst also
maintaining its unique cultural heritage.
Developments
I
A
H
Victoria Circle // 2016-2018
• Consented scheme will be home to
B
• Landmark headquarters office building
office, retail and residential space across five
G
• The masterplan will include over 597,000 sq ft
approximately 77,500 sq ft.
223,000 sq ft landmark mixed-use office and
retail building.
• Comprising 178,000 sq ft of modern
• Joint venture development between Heron
Grade ‘A’ office space on the upper floors
of Grade A office accommodation,
International, Co-operative Insurance Society
and 45,000 sq ft of high quality retail space
125,000 sq ft of retail space at ground and first
D
and AXA Real Estate Investment Managers.
at street level.
floors and over 200 new apartments.
A
123 Victoria Street // 2012
• Comprehensive refurbishment providing a
• 8 floors of prime office space covering
buildings, linked by attractive public spaces.
E
C
completed in Autumn 2009.
approximately 903,000 sq ft of world class
F
The Peak // 2009
• Named ‘West End development of the Year’
• Jimmy Choo have selected the building as
at the Offices 2010 Awards.
C
their global headquarters and have taken
approximately 55,000 sq ft.
B
D
Cardinal Place // 2005
• Landmark trio of buildings designed by
EPR Architects.
E
Kingsgate House // 2015
F
62 Buckingham Gate // 2013
• Demolition started in Spring 2012.
• Redevelopment commenced in March 2010.
• Lynch Architects designed scheme with full
• 12 storey landmark mixed use building offering
• Cardinal Place encompasses 564,300 sq ft
planning consent to deliver approximately
approximately 269,000 sq ft of world class
of world class office accommodation
345,000 sq ft across two buildings. The buildings
office and retail accommodation.
and 96,075 sq ft of retail, leisure and
will comprise approximately 189,000 sq ft of
restaurant space.
Grade ‘A’ offices, 46,000 sq ft of retail, and
• Completed in 2005 and widely recognised
as being the most significant development to
• Cutting edge and environmentally sensitive
accommodation designed jointly by Pelli Clarke
100 state of the art residential apartments.
• Practical completion due in 2015.
Pelli Architects and Swanke Hayden Connell.
• Completion anticipated in Q2 2013.
take place in Victoria for decades.
G
Five Howick Place // 2012
• 227,000 sq ft mixed use scheme.
• Joint Venture between Terrace Hill and
Doughty Hanson and designed by leading
architects Rolfe Judd.
• 144,200 sq ft of high quality Grade ‘A’ office
accommodation over lower ground, ground
H
New Scotland Yard //
• Metropolitan Police are disposing of this 1960s
I
1-19 Victoria Street //
• This 335,500 sq ft office building let to the
office building after confirming that they will be
UK Government was purchased by MEC in
vacating the site.
December 2012 for £180 million reflecting
• Potential to provide a substantial mixed use
development at vacant possession.
a NIY of 4.82%.
• The property was purchased as a long term
redevelopment opportunity.
and six upper floors.
• 23 luxury private residential apartments in
addition to 10 affordable apartments.
Photograph - kind permission of Land Securities
13
11.
12. description
Sanctuary Buildings //
Large floorplates arranged
around a spectacular
glazed atrium.
Sanctuary Buildings is an impressive triplefronted office building developed to an
exceptional standard in 1991. The property
was partly constructed behind a retained
façade with elements of the original building
‘Park House’ being incorporated into the
current property.
The property provides approximately
227,100 sq ft of office and ancillary
accommodation arranged over 12 floors,
comprising of two basements, lower ground,
ground and eight upper floors.
The main office entrance is located on
Great Smith Street and leads to a double
height reception and a spectacular central
glazed atrium, which provides excellent levels
of natural light throughout the building.
The large open plan floor plates of
up to 26,790 sq ft are arranged around the
central atrium and provide highly desired
flexibility, generally unobtainable in other,
more traditional West End office locations.
Each floor is served by a bank of six
passenger lifts as well as two scenic passenger
lifts and two fireman / goods lifts.
17
13. The building has been exceptionally
well maintained and was extensively
refurbished in 2009 by the Secretary
of State. The refurbishment completely
transformed the lower ground floor by
opening up the ground floor slab to increase
natural daylight and to provide a grand
staircase with access to the lower ground
and basement floors.
As part of these works, the tenant
installed new meeting room suites, break-out
areas, a staff canteen and gymnasium.
The property provides 28 car parking
spaces at basement level which are accessed
from St Ann’s Street via two car lifts.
The property provides Grade A office
space to the following specification:
•
•
•
•
•
•
•
•
Four pipe fan coil air-conditioning.
Clear floor to ceiling heights of up to
2.6 metres.
Fully accessible 100 mm raised access floors.
Suspended ceiling with void of c. 350 mm.
Full height glazing to the atrium.
Double glazed external windows.
Male and female WCs on each floor.
Substantial lift provision of:
• x 21 person lifts accessing ground and all
6
upper floors, two of which serve basement 1
and two of which serve basement 2.
• x 24 person scenic lifts overlooking the
2
atrium serving ground to eighth floors.
• x 40 person fireman /goods lift
1
serving all floors.
• x 10 person fireman /passenger
1
lift serving basement 2 to seventh floor.
19
14.
15. ACCOMMODATION
Ground Floor
First Floor
1,746 sq m | 18,799 sq ft
2,374 sq m | 25,549 sq ft
4.79m
ABBEY ORCHARD STREET
15.51m
G R E AT
S M IT H
19.43m
19.43m
37.42m
STREE
49.78m
T
66.83m
The property provides the
following net internal floor areas.
The areas are stated in the rent
review clause of the occupational
lease to the First Secretary of
State, dated 29th September 1991.
VOID
RECEPTION
VOID
VOID
14.85m
CE
AC
46.59m
SS
7.64m
SERVICE YARD
Fourth Floor
2,135 sq m | 22,985 sq ft
13.72m
13.37m
Eighth Floor
1,107 sq m | 11,920 sq ft
Office Space
(sq ft)
Storage Space Total Floor Space
(sq ft)
(sq ft)
–
14,887
6th
16,782
92
16,874
5th
22,264
49
22,313
4th
22,966
19
22,985
3rd
26,341
19
26,360
2nd
26,771
19
26,790
1st
25,549
–
25,549
Ground
18,799
–
18,799
Lower Ground
18,466
–
18,466
Basement 1
18,039
625
18,664
Basement 2
–
3,493
3,493
222,784
4,316
227,100
Total
A separate PCA report is available on request and shows less than a 1% variance, totalling
225,485 sq ft.
22
50.99m
14,887
VOID
VOID
9.10m
16.32m
10.70m
7th
66.88m
11,920
6m
–
3
15.
11,920
18.56m
8th
25.25m
8.0m
Floor
11.75m
27.02m
ACCESS
Office (NLA)
Reception
14.50m
18. Asset Management
Initiatives
Office
Residential
There is the potential to undertake part
atrium infill works to increase the area of
the office floor plates. A scheme has been
drawn up by Rolfe Judd and extends over
the first to eighth floors.
This adds a total of 30,447 sq ft, and
can be achieved without the need to apply
for planning permission as this extension
does not add to the gross external area of
the property. This has been confirmed by
the current owner’s Counsel in a letter, a
copy of which can be provided upon request.
A further scheme has been drawn up
showing the potential to add an additional
storey of 6,501 sq ft, subject to relevant
planning consents.
Sanctuary Buildings’ position just off the
main shopping thoroughfare of Victoria
Street and minutes from world-renowned
attractions such as Westminster Abbey and
Big Ben, render it perfectly placed for a
future residential scheme. A design has been
drawn up by Rolfe Judd for the conversion
of the existing building to residential use.
The scheme proposes a total of 186,239 sq ft
of net saleable area spread across
191 apartments.
Potential Office
Area (sq m)
Potential Office
Area (sq ft)
8th
1,640
17,653
7th
1,891
20,354
6th
1,981
21,323
5th
2,458
26,458
4th
2,492
26,824
3rd
2,778
29,902
2nd
2,743
29,525
1st
2,550
27,448
Ground
1,805
19,429
Lower Ground
2,011
21,646
Basement 1
1,295
13,939
Basement 2
283
3,046
23,927
257,547
Floor
Total
28
19. Investment Market Commentary
The Victoria investment market has
witnessed a buoyant 12 months with
£949 million transacted within the
calendar year.
The market has attracted a wide
range of domestic and overseas parties with
investors seeking to capitalise on the future
vision of Victoria.
The investment outlook of Victoria
remains strong as its transformation
continues to attract blue chip tenants and
improve the area aesthetically. Consequently,
well-located, secure income assets will
continue to attract high investment demand.
Victoria Circle //
Eland House //
Date
February 2012
Date
January 2012
Victoria Circle Partnership
Purchaser
Tishman Speyer
Purchase Price
£170,000,000
(£672 per sq ft)
Yield
7.14%
Purchaser
(JV between Land Securities and CPPIB)
Purchase Price
£163,000,000
Yield
Development Site
The Peak //
1-19 Victoria Street //
Date
December 2012
Date
December 2012
Purchaser
Cityhold
Purchaser
MEC
Purchase Price
£113,000,000
(£1,153 per sq ft)
Purchase Price
£180,500,000
(£538 per sq ft)
Yield
5.13%
Yield
4.80%
31
20. Proposal
Offers are invited for the freehold
interest in Sanctuary Buildings.
The freehold interest is held in a Special
Purpose Vehicle (“SPV”) which is available
for purchase.
We are seeking offers in excess of
£184,000,000, reflecting a Net Initial Yield of
5.50% (assuming acquisition costs of 1.80%),
and a capital value per sq ft of £810.
32
21. Further Information
Planning
The Westminster Planning Authority have confirmed that elements of the retained façades of the property are listed.
The property lies within the Westminster Abbey and Parliament Square Conservation Area and also falls within the
Central Activity Zone as defined in the City of Westminster Unitary Development Plan.
VAT
The property has been elected for VAT.
ENERGY PERFORMANCE CERTIFICATE
Energy Performance Certificate
Non Domestic Building
Sanctuary Buildings
Certificate Reference Number:
Great Smith Street
9894-3043-0694-0900-8901
London SW1P 3BT
Energy Performance Asset Rating
More energy efficient
This certificate shows the energy rating
More energy efficient
A+
A 0–25
B 26–50
C 51–75
of this building. It indicates the energy
Net zero CO2 emissions
heating, ventilation, cooling and lighting
systems. The rating is compared to two
benchmarks for this type of building:
one appropriate for new buildings and
one appropriate for existing buildings.
76–100
E 101–125
F 126–150
G Over–150
efficiency of the building fabric and the
105
This is how energy
efficient the building is.
There is more advice on how to interpret
this information on the Government’s
website www.communities.gov.uk/epbd.
Less energy efficient
Less energy efficient
technical information
benchmarks
Main heating fuel:
Natural Gas
Buildings similar to this one could have
Building environment:
Air Conditioning
rating as follows:
Total useful floor area (sq m):
29146
Building complexity (NOS level):
4
Building emission rate (kgCO2/sq m): 62.09
54
145
if newly built
if typical of the existing
stock
website
An electronic data room www.sanctuarybuildings.com, is available and contains:
• Occupational lease
• EPC
• Building survey
• Rolfe Judd office and residential proposals
• Plowman Craven measured survey
• Photo library
CONTACTS
For further information please contact:
David Green
T: +44 (0)20 7182 2302
E: david.green@cbre.com
John Starkie
T: +44 (0)20 7182 2582
E: john.starkie@cbre.com
Max Shepherd-Cross
T: +44 (0)20 7182 3526
E: max.shepherd-cross@cbre.com
DISCLAIMER: Misrepresentation Act 1967 and Declaration. CBRE Limited for itself and for the Vendors as Agent for the Vendors gives notice that:
1. These particulars are set out as a general outline only for guidance to intending Purchasers and do not constitute any part of an offer or contract.
2. Details are given without any responsibility and any intending Purchasers or Third Parties should not rely on them as statements or representations
of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. 3. No person in the employment of CBRE
Limited has any authority to make any representation or warranty whatsoever in relation to this property. 4. Unless otherwise stated, all prices and
rents are quoted exclusive of VAT. Subject to Contract. February 2013. Designed and produced by Sutton Young 020 7935 0966 (SYO50503)
34
