Langdale House, 11 Marshalsea Road, London SE1 Freehold, Multi-let, Office investment Investment Summary • Freehold late Victorian warehouse building currently operated as a serviced office centre • Located within 100 metres of Borough Station and circa 500 metres from London Bridge Station • Net internal area of 16,929 sq ft over lower ground, raised ground and three upper floors • 34 tenants in occupation on a flexible basis • Other income derived from virtual tenants, car parking, meeting rooms and other services • Consent to add 4,180 sq ft at fourth and fifth floor levels together with the ability to achieve vacant possession if required • Seeking offers in excess of £4 million, reflecting £236 psf before costs • On the net income, this price reflects a net initial yield of 9.07%
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Langdale House, 11 Marshalsea Road, London SE1
Freehold, Multi-let, Office investment
Investment Summary
• Freehold late Victorian warehouse building currently operated as a serviced office centre
• Located within 100 metres of Borough Station and circa 500 metres from London Bridge Station
• Net internal area of 16,929 sq ft over lower ground, raised ground and three upper floors
• 34 tenants in occupation on a flexible basis
• Other income derived from virtual tenants, car parking, meeting rooms and other services
• Consent to add 4,180 sq ft at fourth and fifth floor levels together with the ability to achieve vacant possession if required
• Seeking offers in excess of £4 million, reflecting £236 psf before costs
• On the net income, this price reflects a net initial yield of 9.07%
Langdale House, 11 Marshalsea Road, London SE1
Location The property lies within the London Borough of Southwark, 100 metres to the west of Borough Underground Station and Borough High Street. The immediate area consists of mixed office, retail and residential uses.
Transport is excellent, situated less than 100 m from Borough Station (Northern Line). London Bridge Station, just over 500 metres away, has overground (Southeastern & First Capital Connect - providing Thameslink) and underground (Northern and Jubilee) lines and 15 bus routes providing excellent links to the West End, City, Canary Wharf and various destinations to the east, south-east, north and south of Central London. The Thameslink line is currently being extended and refurbished, providing more frequent, longer, new trains with improvements to Blackfriars and London Bridge Stations. Work has started at Blackfriars Station which will bring the platforms onto the bridge and provide a new entrance to the station. Work on London Bridge Station is due to commence after 2012. This is a popular part of Southwark for commercial and residential occupiers. Major office tenants include Price Waterhouse Coopers, the Greater London Authority, Norton Rose, Ernst and Young, Lawrence Graham and London Borough of Southwark. The area is undergoing further development and regeneration, with construction having commenced on Europe’s tallest sky-scraper, the Renzo Piano designed ‘Shard of Glass’, a 1m sq ft mixed use scheme, and on the redevelopment of the former New London Bridge House, over 500,000 sq ft of offices, known as “Baby Shard”.
Langdale House, 11 Marshalsea Road, London SE1
In addition, one of the principal attractions in the area, Borough Market, is currently being extended and refurbished.
Situation The property is located on the south side of Marshalsea Road, on the eastern corner of the junction with Sanctuary Street. The building backs on to Vine Yard.
Langdale House, 11 Marshalsea Road, London SE1
Description The building is a late Victorian, former warehouse, arranged over lower ground, raised ground and first to third floors. The building is currently operated as a serviced office centre with 47 office suites containing 146 workstations. There are also three meeting rooms. The roughly rectangular floor plates are serviced by two staircases and a large lift. The main entrance to the building is via a number of steps from Marshalsea Road, with ramped access off Sanctuary Street. The ground floor benefits from a refuse store, accessed from Sanctuary Street, and a loading bay fronting Vine Yard. Each floor benefits from WC’s and a kitchenette, and
is currently divided by non-structural breeze block walls into a number of office suites, accessed from a central circulation zone. The current configuration could easily be changed to offer open plan floors with excellent natural light to three elevations. There is a central atrium on the second and third floors and there are a number of sky lights on the third floor. The accommodation benefits from exposed brick walls, cast iron columns, dado rail trunking and electric storage heaters.
Langdale House, 11 Marshalsea Road, London SE1
Accommodation
The area of the individual offices suites and meeting rooms totals 12,639 sq ft (1,174 sq m), as detailed in the tenancy schedule.
Floor Net Internal
Areas sq ft sq m
Third Floor 3,626 337 Second Floor 3,677 342 First Floor 3,740 347 Raised Ground Floor 2,948 273 Lower Ground Floor 2,938 273 Total 16,929 1,573
Langdale House, 11 Marshalsea Road, London SE1
Langdale House, 11 Marshalsea Road, London SE1
Planning
The property is situated in the London Borough of Southwark, is not listed and is not in a conservation area.
Planning consent was granted in April 2010 for a new 4th floor extending to 3,500 sq ft NIA with a mezzanine of 680 sq ft NIA totalling 4,180 sq ft. A section 106 has been agreed.
Proposed 4
th floor
Langdale House, 11 Marshalsea Road, London SE1
Proposed 5
th floor mezzanine
Tenancies
The building is let according to the attached tenancy schedule. In summary there are 34 tenants in occupation on one year licences. There is currently only one vacant unit. A copy of a typical licence is available upon request. Licence fees are inclusive of rent, rates, service charge, office furniture, telephone line rental and phone connection, receptionist, post sorting, 24-hour security, electricity, cleaning and maintenance. In addition, income is generated from the meeting rooms and various additional services. Income Gross rental income £573,387
Operational costs (2009/2010) £201,043 Net rented income £372,344 - £21.99 psf on NIA
Please note that the average additional services profit over the last three years is £12,808. Tenure Freehold
Floor Suites
Number of
Workstations AreaTenant Name
Gross Rent
Lease Start
Date Comments
Rent
Deposit
1 4 256 sq ft Triplex Power Control Ltd. £16,200 pa 01-Sep-08 £2,700
2 1 132 sq ft Kay Davies £4,800 pa 01-Sep-09 £800
3 1 129 sq ft Anthony R F Clarke £4,800 pa 01-Nov-09 £800
4 1 137 sq ft Sirocco Park Stone Int. Ltd. £7,200 pa 01-Mar-08 £406
5 1 155 sq ft Clinical Reporting Gateway Ltd. £9,960 pa 06-Mar-09 £1,660
6 1 155 sq ft 3C Partners Ltd. £5,520 pa 01-Nov-09 Tenant break rolling from Oct 10 £920
7 1 129 sq ft Alan Thurlow Consulting Ltd. £4,200 pa 12-Oct-09 Tenant break rolling from Sept 10 £700
8 1 143 sq ft VACANT (from 30/04/10) £0 pa - £0
9 2 202 sq ft Braxcel Consulting Ltd. £8,400 pa 24-Sep-07 £1,400
10 2 166 sq ft Corten Containers Ltd. £7,800 pa 21-Sep-09 Tenant break rolling from Aug 10 £1,300
11 3 232 sq ft Evolve Agency Ltd. £10,740 pa 06-Jul-09 £1,790
12 3 226 sq ft Williams Kent Ltd. £8,400 pa 01-Nov-09 Tenant break rolling from Oct 10 £1,050
13 5 360 sq ft 4VCO Ltd. £24,000 pa 16-May-08 £4,000
15 2 175 sq ftCathedral Works Org
(Chichester) Ltd£9,000 pa 01-Aug-09 £1,500
16 4 255 sq ft Visions Consulting Co Ltd. £10,800 pa 01-Aug-09 £1,800
1 4 377 sq ft Flow Caritas Ltd. £24,000 pa 01-Mar-08 £3,750
2 3 288 sq ft Playne Design Ltd. £15,000 pa 01-Jan-10 Landlord break upon 3mth notice £975
3 3 299 sq ftAbsolute Consulting Services
Ltd.£16,800 pa 01-Nov-09
Stepped rent of £14,400 until
31/10/10. Vendor topping up. Tenant
break rolling from Oct 10.
£2,400
4 2 178 sq ft Susumu Ltd. £5,760 pa 15-Feb-10 £960
5&12 6 493 sq ft Synergy Fostering Ltd. £31,800 pa 01-Feb-08 £1,660
6 3 253 sq ft Clear Crystal Finance Ltd. £8,400 pa 25-Sep-09 Tenant break rolling from Aug 10 £1,400
7 5 330 sq ft Toma Global Ltd. £13,200 pa 12-Mar-10 £2,200
8 5 274 sq ft The Works Ltd. £13,200 pa 01-Jan-10No tenant break option. Landlord
break upon 3 months notice.£1,560
9 2 170 sq ft Steve Birtles Ptnshp LLP £7,200 pa 01-Jun-09 £600
10 2 184 sq ft Karer Consulting (UK) Ltd. £9,000 pa 07-Nov-07 £1,440
11 2 175 sq ft Consigliari Ltd. £8,640 pa 01-Jan-09 £638
1-3 & 6-7 24 1,839 sq ft Freehold Managers Plc £99,999 pa 01-Nov-06 £6,122
4b 3 216 sq ft Freehold Managers Plc £10,800 pa 24-Aug-08 £0
4a 2 216 sq ft Landlord storage - - -
5 3 333 sq ft The UK Carbon Census Ltd. £18,000 pa 01-Oct-09
Stepped rent of £6,000 until
31/06/10. Vendor topping up. Tenant
break rolling from Sept 10.
£3,000
8 3 227 sq ft Freehold Managers plc £14,400 pa 01-Jun-07 £2,400
9 4 272 sq ft Freehold Managers Plc £15,600 pa 01-Oct-09 £2,600
G1 4 330 sq ft Shop.Co.UK Ltd. £13,200 pa 15-Feb-10 £2,200
G2 3 274 sq ft Taylor-Bloxham Ltd. £11,400 pa 15-Feb-10
Stepped rent of £9,960 until
14/02/11. Vendor topping up. Tenant
break rolling from Jan 11.
£1,660
G3 2 151 sq ft Funcall Ltd. £10,080 pa 01-Aug-08 £840
G4 4 397 sq ft MRWEB Ltd. £24,000 pa 07-May-08 £4,000
G5 6 482 sq ftThe Dextrous Web Ltd. & Open
Rights£21,000 pa 05-Feb-10 £3,500
G6 1 104 sq ft Flow Caritas Ltd. £3,168 pa 21-Dec-09 £528
B1-3 18 1,274 sq ft Consumer Leads Direct Ltd. £38,400 pa 22-Feb-10 Tenant break rolling from Jan 11 £6,400
B4 215 sq ft MEETING ROOM £0 pa -
B5 267 sq ft MEETING ROOM £0 pa -
B6 169 sq ft MEETING ROOM £0 pa -
Parking CP1 - Streetcar Ltd. £2,400 pa 01-May-09 Tenant break upon 3 mth notice £0
V1 - LCEA Ltd. £600 pa 22-Feb-10 £50
V2 -Kobina Poku Odum of Das
General Services Ltd.£1,080 pa 01-Sep-06 £180
V3 - Fovea Communications Ltd £600 pa 01/04/2009 £0
V4 - Lucid Design Ltd. £600 pa 01/05/2009 £0
V5 - Sangel Tech Int Ltd. £1,080 pa 01-Aug-09 £90
V6 - Talentscope Ltd. £1,080 pa 01-Aug-09 £90
V7 - Riverside Mechanical Ltd. £1,080 pa 27-Nov-09 £90
Totals 146 12,639 sq ft £573,387 pa £33,750
Notes:
Licences have landlord and tenant break notices upon 1 month's notice, unless otherwise stated
A number of licences are holding over where the vendor belives the suites are let at market rents
Langdale House, 11 Marshalsea Road, London SE1T
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Langdale House, 11 Marshalsea Road, London SE1
VAT The property has been elected for VAT. Capital Allowances Any unclaimed capital allowances will be passed onto the purchaser. Price We are instructed to seek offers in excess of £4 million, subject to contract and exclusive of VAT. This price reflects £236 psf on the net internal area before costs. On the total net income, this price reflects an initial yield of 9.07%, assuming purchasers costs of 5.75%. Further Information For further information or to arrange a viewing, please contact: Sam Stevens Paul Rowntree DDI: 020 7858 6863 DDI: 020 7858 6863 Mobile:07825 507 519 Mobile: 07825 507 523 [email protected][email protected]
Andy Verschoyle DDI: 0207 858 6861 Mobile: 07825 507 522 [email protected] NOTICE: Messrs Kingly Partners for themselves and for the vendors of this property, whose agents they are, give notice that: i) These particulars are only for the guidance of prospective purchasers and do not form part of any offer or contract. (ii) Whilst the information contained herein is issued in good faith, neither the firm nor its clients guarantee its accuracy and it is not to be relied upon as statements or representation of fact. (iii) Any intending purchasers must satisfy themselves as to the correctness of each of the statements made herein. (iv) The vendor does not make or give, and neither the firm nor any of their employees have any authority to make or give, any representation or warranty whatever in relation to this property. (v) Nothing in these particulars constitutes a statement that the property and/or any services or facilities are in good condition or working order. (vi) These particulars were completed in May 2009. (vii) Kingly Partners will not be liable, in negligence or otherwise, for any loss deriving from these particulars. May 2010.
