charlotte street fitzrovia w1 - loopnet

P R I M E W E S T E N D F R E E H O L D I N V E S T M E N T

C H A R L O T T E S T R E E T F I T Z R O V I A W 1

3 3 - 4 1 C H A R L O T T E S T R E E T | F I T Z R O V I A W 1

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E x e c u t i v e S u m m a r y

• Freehold

• Super prime position on Charlotte Street, Fitzrovia’s most sought-after corporate and leisure address

• Excellent transport connectivity, within 500m of imminent Crossrail services at Tottenham Court Road

• Prominent corner building comprising 16,749 sq ft of Grade A offices and 7,867 sq ft of prime restaurant accommodation

• Fully let to one office tenant and two restaurants for a weighted unexpired term of 10.2 years

• The office element (73% of income) is let on an unprotected lease to Knotel until October 2029, at a reversionary rent of £75 per sq ft

• The offices benefit from exceptional natural light, efficient floorplate configuration and outdoor terracing on first and fifth floors

• The prominent restaurant units (27% of income) are occupied by ‘1947 London’ and ‘Six by Nico’ until June 2027 and June 2037 respectively

• Offers are invited in excess of £36,500,000, subject to contract and exclusive of VAT

• This reflects a net initial yield of 4.43%, assuming full purchaser’s costs, and a capital value of £1,483 per sq ft

E x c e p t i o n a l m i x e d - u s e a s s e t i n t h e h e a r t o f L o n d o n ’ s W e s t E n d


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hyde park

TOTTENHAM COURT ROAD

GOODGE STREET

FITZROVIA

Oxford Circus

TOTTENHAM COURT ROAD

COVENT GARDEN

SOHO

mayfair

st james’s

marylebone

bond street

bloomsbury


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C h a r l o t t e S t r e e t

T h e p r o p e r t y i s p r o m i n e n t l y l o c a t e d i n t h e h e a r t o f L o n d o n ’ s W e s t E n d , w i t h i n t h e e n e r g e t i c a n d c h a r a c t e r f u l s u b m a r k e t o f F i t z r o v i a .

Populated by an abundance of cobbled side-alleys, wide streets and open squares, Fitzrovia is heavily influenced by its bohemian past, boasting an attractive blend of modern and historic architecture.

Notable landmarks include Regent’s Park, the British Museum and the iconic BT Tower, while more recent developments include Fitzroy Place and Rathbone Place, headquarters to Estée Lauder and Facebook respectively.

Charlotte Street’s proximity to Oxford Street, the cultural hub of Soho and the desirable residential areas surrounding Regent’s Park has seen it evolve from its aristocratic origins into one of London’s most desirable destinations for restaurant / bar operators, office occupiers and tourists alike.


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D e s c r i p t i o n

Occupying a prominent corner position, the property features two restaurant units at basement / ground floor level (7,867 sq ft) and 16,749 sq ft of office space on the first to fifth floors.

The offices, which are accessed via a reception off Rathbone Street, are linked by 1 x 8-person passenger lift and two staircases.

The offices benefit from exceptional levels of natural light throughout, efficient configuration and are well suited to both single and multiple tenancy.

The freehold interest also includes the corner retail unit at 33-37 Charlotte Street (Roka) and four self-contained flats at 41 Charlotte Street, albeit these have been sold off on long leasehold interests.

T h e p r o p e r t y c o m p r i s e s t h e f r e e h o l d i n t e r e s t i n 3 3 - 3 7 , 3 9 & 4 1 C h a r l o t t e S t r e e t .

T i t l e & T e n u r e

GOODGE STREET

CharlottePlace

9

PH

Bank

42

13

46

40

43

30 to 3445

7

36

33to

37

45

38

15

39

PH

49 to 51

47

41

0m 5m 10m 15m

Note: Reproduced from the Ordnance Survey Map with the permission of the Controller of H.M. Stationery Office. © Crown copyright licence number 100024244 Savills (UK) Ltd. Note: Published for the purposes of identification only and although believed to be correct accuracy is not guaranteed.

Freehold

Residential sold off until 2126

Restaurant (ROKA) sold off until 2998


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T H E O F F I C E S B E N E F I T F R O M E X C E P T I O N A L N A T U R A L L I G H T A N D E F F I C I E N T C O N F I G U R A T I O N


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A c c o m m o d a t i o n

The property provides the following net internal areas:

Offices

Floor Use NIA (Sq Ft) NIA (Sq M)

5

Office

2,001 185.9

4 2,987 277.5

3 2,468 229.2

2 3,033 281.8

1 6,260 581.5

Sub-total 16,749 1,555.9

Six By Nico


G Trading 2,366 219.8

G Ancillary 429 39.9

G Outside Seating 111 10.3

LG Ancillary 961 89.3

Sub-total 3,867 359.3

1947 London


G Ancillary 84 7.8

LG Main Trading 3,681 342.0

LG Additional Stores 235 21.8

Subtotal 4,000 371.6

TOTAL* 24,616 2,286.9

* In addition, the freehold title includes four residential flats and a restaurant, all of which have been sold off on long leasehold interests (see Tenancy Schedule)

L o w e r g r o u n d G r o u n d f l o o r

RATHBONE STREET

CH

AR

LOT

TE

ST

RE

ET

ROKA(Sold Off)

SERVICEYARD

RATHBONE STREET

CH

AR

LOT

TE

ST

RE

ET

ROKA(Sold Off)


1947 LONDON

SIX BY NICO

OFFICE ENTRANCE

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f i r s t f l o o r t y p i c a l u p p e r f l o o r

TE

RR

AC

E


OFFICES

RESIDENTIAL (SOLD OFF)

1 6 | 1 7


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T E N A N C I E S

O c c u p i e r s

33 Camcorder Ldn Limited (trading as Knotel)

Knotel’s business strategy of leasing on a floor-by-floor basis positions it well to prosper in current times, where security and self-control are highly valued.

With over 4 million sq ft across over 200 locations in London, the USA, Berlin, Paris, São Paolo and Rio de Janeiro, Knotel is established on a global scale.

Knotel now operates in 10 countries, with international markets comprising 40% of its revenue and growing. London has been a particular success story for the business, which currently operates out of 27 buildings within the Capital (over 500,000 sq ft).

www.knotel.com

Six by Nico (Fitzrovia)

Six by Nico was established by award-winning Scottish chef Nico Simeone in 2017, and now operates across the UK.

The business revolves around a fixed ‘six course’ tasting menu concept, which changes every six weeks.

Fitzrovia is the latest opening of the widely acclaimed concept, following an extreme success with their other restaurants.

www.sixbynico.co.uk

Samarkand Restaurants Ltd (trading as 1947 London)

1947 London is an award winning restaurant focussed on high-end Indian cuisine, operated by the owners of the renowned Chai Thali group.

Chef Krishna Negi, the protégé of Michelin-starred Vineet Bhatia, has created a menu which nods to recipes that evolved out of the 1947 Partition.

www.1947london.com

Demise Sq Ft TenantRent PA(PSF)

Review Expiry Comments

Office 16,749 33 Camcorder Ldn Limited: t/a Knotel

£1,256,175 (£75) 25.10.2024 24.10.2029

- Outside 1954 L&T Act

- Open Market Rent Review

- 12 months’ rent guarantee provided by Knotel Inc

- Rent deposit of £251,235 held until 14.10.2021, or earliest assignment or determination of lease

Retail A 3,867 Six by Nico (Fitzrovia)

£298,000(£77.06) 07.06.2022 06.06.2037

- Lease held on assignment from Azzurri Restaurants Ltd (with AGA)

- Rent deposit of £89,400

- 10 year reversionary lease from 07.06.2027 with an upward only day one rent review

Retail B 4,000Samarkand Restaurant Ltd t/a 1947 London

£170,000(£42.50) 30.01.2018 06.06.2027

- Lease held on assignment from Hart Bros Ltd (with AGA)

- Rent deposit of £153,000

- 2018 rent review outstanding

Retail C - Tavola Calda Limited Peppercorn - 31.05.2998 - Sub-let to Robata Restaurants Ltd (t/a

ROKA) until 01/10/2028

Residential - 4 x Private Individuals £1,000 24.09.2026 23.09.2126 - Rent doubles every 25 years

Transformer Chamber - London Power

Networks Plc £0 - 07.11.2100 -

TOTAL 24,616 - £1,725,175

F I T Z R O V I A ’ S V A C A N C Y R A T E s t a n d s a t o n l y 3 . 1 % , w e l l b e l o w t h e l o n g - t e r m a v e r a g e o f 4 . 8 %


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O F F I C E O C C U P A T I O N A L M A R K E T

The West End’s geographically constrained boundaries, coupled with a scarcity of available space, continue to drive the occupational market and this imbalance has manifested itself in low vacancy levels and historically strong rental performance.

Fitzrovia provides a particularly acute illustration of this dynamic; the vacancy rate stands at only 3.1%, well below the long-term average of 4.8% and down from 3.3% a year earlier.

Competition for Grade A accommodation within the submarket has remained robust, as was evidenced in May 2020, with Exane pre-letting the 5th to 7th floors at Oxford House, 1 Newman Street for £100 per sq ft, and Netflix’s recent decision to occupy 87,150 sq ft on Berners Street at £87.50 per sq ft.

The imminent arrival of Crossrail, a severely constrained development pipeline and the area’s continued attraction to the buoyant TMT sector is expected to further fuel the Fiztrovia occupational market’s outperformance of other West End submarkets.

Date Address Tenant Sq Ft Floor Rent psf Term

Q4-20 Copyright Building, Berners Street, W1 Netflix 87,150 Whole £87.5 17

Q2-20 Oxford House, 1 Newman Street, W1 Exane 38,064 5 - 7 £100 15

Q2-20 25 Golden Square, W1 Roxor Games 66,000 Entire c.£90 Confidential

Q1-20 42 Great Marlborough Street, W1 Mediaforce 7,354 1 - 4 £90 10

Q4-19 1 Soho Place, W1 Apollo Global Management 89,017 1 - 4 £93 15

Q4-19 19-22 Rathbone Place, W1 Be Spoke 12,041 3 - 4 £79 10 (5)

Q2-19 1 Soho Place, W1 G Research 102,600 5 - 10 £95 15

Q2-19 26-37 Seymour Mews, W1 Union Bancaire Privee 15,769 2 - 5 £92 10

Q2-19 66 Newman Street, W1 Workpad 14,122 Whole £82 20

Q2-19 14-16 Great Portland Street, W1 The Wing 10,527 Whole £85 10

R E S T A U R A N T O C C U P A T I O N A L M A R K E T

Home to over 65 Michelin starred restaurants, London has become one of the food capitals of the world and Fitzrovia has been a leading growth area within the sector.

Over recent years, operators have competed to capitalise on the area’s rich heritage and rare level of exposure to numerous demand sources, including Oxford Street-related tourists, nearby University students, office occupiers and an affluent local residential population.

Fitzrovia has benefitted from a plethora of new F&B openings in the West End, including the likes of Arros QD, Norma by Ben Tish, YOPO and Salt Yard, and Charlotte Street is widely acknowledged as being the sector’s centre of gravity.

Restaurant rents have appreciated accordingly, and have established themselves at over £100 per sq ft on the prime pitches today.

This remains discounted to its rival submarket, Soho, where rents stand at up to £160 per sq ft, providing long term room for further rental growth.

F i t z r o v i a I S S E T t o o u t p e r f o r m a l l o t h e r W e s t E n d s u b m a r k e t s i n t e r m s o f r e n t a l g r o w t h


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I n v e s t m e n t M a r k e t

The strong occupational conditions outlined above, combined with the macro-economic factors of historically low interest rates, weak Sterling and credit availability at increasingly attractive rates have continued to encourage investors to deploy their capital into the West End market.

These favourable investment conditions have been underpinned by London’s historic and enduring strengths, not least its transparent legal system, deep pool of skilled labour, high tourism figures, locational / linguistic advantages and exceptional transport connectivity.

Whilst 2020 has been a challenging year for the commercial property investment market, we have witnessed a ‘flight to quality’ and pricing for core, well-located buildings has proved resilient.

As illustrated in the table below, Fitzrovia has proved a particular focal point for investment of this nature, highlighting its enduring appeal to both UK and international investors:

Date Address WAULT Tenant(s)Tenure(Gearing)

Price NIY PSF

Available 127 Charing Cross Road, WC2 1.0 Multi-let FH Q. £56.50M 3.50% £1,409

U/O Yalding House, 152-156 Great Portland Street, W1 5.0 Multi-let LH (5.75%) Q. £43.0M 4.30% £1,491

Q3-20 2&4 Soho Place, W1 - Vacant offices, pre-let theatre LH £40.5M - £2,201

Q3-20 1 New Oxford Street, WC1 7.8 Multi-let FH Q.£180.0M 4.02% £1,647

Q3-20 44 Whitfield Street, W1 2.1 Multi-let FH £19.5M 4.51% £1,621

Q2-20 Maple + Midford, 4-8 Maple Street, W1 4.7 BenevolentAI

Ltd FH £32.0M 4.31% £1,567

Q3-19 66 Newman Street, W1 20.0 Newman Offices Ltd

LLH(£2,000) £29.5 M 4.18% £1,850

Q3-19 21 Poland Street, W1 6.8 Multi-let FH £14.4 M 4.17% £1,662

P l a n n i n g

The property lies within the London Borough of Camden. It is not Listed, but sits within a Conservation Area.

V A T

The property has been elected for VAT, and it is intended that the transaction will be treated as a transfer of a going concern (TOGC).

F i t z r o v i a h a s b e e n o n e o f t h e m o s t S O U G H T -A F T E R s u b m a r k e t s , e x p e r i e n c i n g 1 0 t r a n s a c t i o n s s o f a r i n 2 0 2 0

E P C

Available on request.

D a t a R o o m

Further technical and legal information relating to the property will be made available in a secure data room, accessible on request.

1 New Oxford Street, WC1 | Q.£180.0M | 4.02% | £1,647 per sq ft


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P r o p o s a l

Offers are invited in excess of £36,500,000 for the freehold interest in the property.

This reflects a net initial yield of 4.43%, assuming standard purchaser’s costs, and a capital value of £1,483 per sq ft.

F u r t h e r I n f o r m a t i o n

For further information or to arrange an inspection, please contact:

Jonathan O’Regan James Purdon 020 7409 8179 020 7409 5920 07840 284 629 07780 708 182 [email protected] [email protected]

William Post Savills (UK) Limited 020 3107 5490 33 Margaret Street 07807 999 984 London [email protected] W1G 0JD

Important Notice

Savills, their clients and any joint agents give notice that:

1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact.

2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise.

Designed and Produced by Savills Marketing: 020 7499 8644 | October 2020

charlotte street fitzrovia w1 - loopnet

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