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ST JAMES’S SQUARE LONDON SW1
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ST JAMES’S SQUARE
LONDON SW1
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ST JAMES’S SQUARE
LONDON SW1
• An exceptional Central London freehold asset.
• Prominently positioned on London’s most prestigious garden square.
• Recent, comprehensive restorative works have returned this extraordinary building to its former glory.
• Multi-let to six tenants, with a passing rent of £2,272,985 per annum.
KEY INVESTMENT CONSIDERATIONS
• Providing 16,183 sq ft net (22,761 sq ft gross) of office and ancillary accommodation arranged over lower ground, ground and four upper floors.
• Offers in excess of £75 million are sought for the freehold interest, subject to contract and exclusive of VAT.
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BUCKINGHAM PALACE GREEN PARK HYDE PARK REGENT STREETPALL MALL ST JAMES’S SQUAREVICTORIA PICCADILLYJERMYN STREETTHE MALLST JAMES’S PARK
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LOCATION
The property is set in a prominent position on the north side of St James’s Square, London’s most prestigious address.
St James’s is a world-renowned sub-market of London characterised by its architectural heritage, luxury retailing, art galleries, private members’ clubs and exceptional hotels and restaurants. Its adjacency to the Royal Parks also adds to its prestige.
The location is a major office hub and home to many of the largest international companies including BP, Rio Tinto, Rolex and Blackstone.
London’s key landmarks such as St James’s Palace, Buckingham Palace, the Royal Academy of Arts, The National Gallery and the Houses of Parliament, along with the Royal Parks, Green Park and St James’s Park are also in close proximity and add to the desirability of the area.
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HISTORIC ST JAMES’S
The history of St James’s is closely linked to its royal heritage. King Charles II sold off land adjacent to St James’s Palace in the 1600s. Henry Jermyn, the Earl of St Albans, then developed the land around St James’s Square in 1660 and transformed the area into aristocratic residential developments in close proximity to the Royal Palace and surrounding parkland. In 1664, the square itself took shape and became the centrepiece of this new development.
At the end of the 17th century, St James’s Square was London’s most westerly residential development and home to the most affluent occupiers. By the 1720s, there were seven Dukes and seven Earls residing on St James’s Square. Shortly after the square’s completion, St James’s Church was designed by Sir Christopher Wren and consecrated in 1684. Coffee and chocolate shops soon came to dominate the area, later being developed into the finest gentlemen’s clubs and specialist shops throughout the 19th century.
MODERN ST JAMES’S
Over the last hundred years, St James’s has succeeded in merging tradition with innovation through careful and clever management. The area has welcomed the construction of modern buildings whilst respecting its historically significant heritage. Beneath the surface is an on-going commitment and vision from The Crown Estate to secure St James’s future as a defining part of the capital.
The district of St James’s is home to 150 listed buildings, the most in any one location in England, and businesses in the area hold more royal warrants than anywhere else in the UK. This extraordinary sense of refinement has sustained the area as a heritage landmark and exclusive destination for the finest buildings, goods and services.
Above: St James’s Market Phase 1 - Rory Gardiner 2016
Above: CGI of St James’s Market Phase 2 - courtesy of The Crown Estate and Oxford Properties
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COMMUNICATIONS
PICCADILLY CIRCUS
GREEN PARK
CHARING CROSS
EMBANKMENT
5 St James’s Square benefits from excellent communications being situated in close proximity to Piccadilly Circus, Green Park, Charing Cross, and Embankment stations.
Heathrow Airport can be easily reached via the Piccadilly line directly from Green Park or Piccadilly Circus in less than an hour. Gatwick Airport can be accessed via the Gatwick Express
from Victoria, which is one stop on the underground from Green Park. There are also numerous bus routes running along Piccadilly.
Communications will be further enhanced by Crossrail, which will provide a high frequency, high capacity railway spanning a 73 mile line across the east-west axis of Greater London.
The Bond Street Crossrail station will be a 10 minute walk from 5 St James’s Square, or one stop on the Jubilee line from Green Park, making it one of the best connected locations in London. Over 200,000 passengers are forecast to pass through the station each day, whilst the capacity of the Underground network as a whole is set to increase by 10%.
Bakerloo Line
Jubilee Line
Central Line
BOND STREET
450M
600M
800M
950M
1,000M
Piccadilly Line
Overground
Northern Line
Victoria Line
Circle Line
District Line
Crossrail
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RIV
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BERKELEYSQUARE
GROSVENORSQUARE
GREEN PARK
HYDEPARK
ST JAMES’S PARK
BUCKINGHAMPALACE
VICTORIA
WESTMINSTERBELGRAVIA
MAYFAIRCOVENTGARDEN
ST JAMES’SST JAMES’S
PALACE
TRAFALGARSQUARE
ROYALACADEMY
OF THE ARTS
BUCKINGHAMPALACE
LEICESTERSQUARE
COVENTGARDEN
THEDORCHESTER
THEMAYFAIR
SELFRIDGES & CO
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LEICESTERSQUARE
PICCADILLYCIRCUS
GREENPARK
BONDSTREET
HYDEPARK
CORNER
CHARINGCROSS
OXFORDCIRCUS
COVENTGARDEN
EMBANKMENTST JAMES’S
SQUARE
JERMYN STREET
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178518
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32
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3440
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4338
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5360
5161
6864
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7266
676214
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Restaurants1 45 Jermyn St
2 Avenue
3 Boulestin
4 Café Murano
5 Caviar House and Prunier
6 Cecconi’s
7 Chutney Mary
8 Franco’s
9 Hakkasan
10 Langan’s
11 Le Caprice
12 Nobu
13 Ritz
14 Rowley’s
15 Sake No Hana
16 Sexy Fish
17 Wiltons
18 Wolseley
Culture19 BAFTA
20 Christie’s
21 Clarence House
22 Criterion Theatre
23 Grosvenor Gallery
24 Her Majesty’s Theatre
25 ICA
26 Jermyn Street Theatre
27 Martyn Gregory
28 Royal Academy of Art
29 St. James’ Palace
30 Theatre Royal Haymarket
31 White Cube Mason’s Yard
32 Whitford Fine Art
Retail 33 Berry Bros and
Rudd
34 Crockett & Jones
35 DAKS
36 Dunhill
37 Fortnum and Mason
38 Hackett
39 Harvie & Hudson
40 Hilditch & Key
41 Lock & Co Hatters
42 Paxton and Whitfield
43 Thomas Pink
44 Turnbull & Asser
Hotels45 Cavendish
46 Le Meridien
47 May Fair
48 Ritz
49 Stafford
Clubs50 Athenaeum Club
51 Boodle’s
52 East India Club
53 Mayfair Club
54 Naval & Military Club
55 Oxford and Cambridge Club
56 Reform Club
57 Royal Automobile Club
58 Royal Overseas League
59 Travellers Club
60 White’s Club
Offices61 Anglo American
62 Apax Partners
63 Artemis Investment
64 BAE Systems
65 Blackstone
66 BP
67 Carlyle
68 Citi
69 Credit Suisse
70 HSBC
71 KKR
72 Rio Tinto
73 Rolex
74 Temasek
75 Warburg Pincus & Co
LOCAL OCCUPIERS & AMENITY
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5 ST JAMES’S SQUARE
5 St James’s Square was originally designed and built between 1748 and 1751 by Matthew Brettingham the Elder for William Wentworth, 2nd Earl of Strafford. The plan behind the building was derived from the Stranger’s wing at Holkham Hall, Norfolk, where Brettingham was also working in the 1740-50s. The palatial town mansion, overlooking St James’s Square, was refaced on its front elevation from Georgian brickwork to Portland stone in 1854 by the renowned Thomas Cubitt, who also added an extra floor and executed the French interiors on the first floor. Unlike many other buildings on St James’s Square, the proportions of the original mansion remain.
A substantial refurbishment completed in 2016 restored the building back to its former Georgian glory. Through careful and informed re-decoration, the interiors have been enhanced whilst respecting the building’s eighteenth and nineteenth century fine interior decoration and joinery. Maintaining a respectful understanding of the building’s heritage through strict historical guidance has been key throughout the process of restoring the building to its original splendour. 5 St James’s Square has been refurbished to an exceptionally high standard to provide office accommodation with luxury finishes and modern technology. It provides innovatively designed spaces to suit the most discerning occupier.
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THE RECEPTIONThe impressive reception has been skilfully restored. Minton tile flooring was added as early as 1854 and to this day the beautiful intricate floor adds colour to the grand reception room. The centrepiece Bruce Munro ‘Snowball’ chandelier with fibre optics and glass spheres enhances the majestic space and reflects the prestigious surroundings.
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THE STAIRCASEThe principal hallway has a centrepiece Bruce Munro fibre optic chandelier and a Portland stone cantilevered staircase with solid brass balusters. Extensive work has been carried out by a dedicated team of skilled craftsmen to restore the staircase, returning it back to its former Georgian splendour.
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THE BUILDING
The building comprises 16,183 sq ft of net internal office and ancillary accommodation (22,761 sq ft gross) arranged over lower ground, ground and four upper floors.
5 St James’s Square benefits from beautiful southerly views over the garden square. The views from the rear of the property to the north are also attractive, overlooking the courtyard between the subject property and Rio Tinto’s headquarters. There is an abundance of natural light throughout the building.
The office accommodation is finished to an exceptionally high standard and the specification includes:
• 1:6 base occupancy (persons/sq m)
• 3 pipe VRF fan coil air conditioning
• 2 x 8 person passenger lifts
• Raised floors
• Full service commercial kitchen
• 4 showers, including 1 executive shower
• 2.71 - 4.82m floor to ceiling heights
• 2 x external terraces
• 2 x external courtyards
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ACCOMMODATION
The property has been measured by Plowman Craven in accordance with the RICS Code of Measuring Practice (6th Edition) and comprises the following net and gross internal areas.
FLOOR NIA GIA
USE SQ FT SQ M SQ FT SQ M
Fourth floor Office 2,934 272.6 3,334 309.7
Third floor Office 2,835 263.4 3,537 328.6
Second floor Office 2,707 251.6 3,511 326.2
First floor Office 2,617 243.2 3,907 363
Mezzanine Plant n/a n/a 378 35.1
Ground floor Office 2,785 258.7 4,025 373.9
Lower ground floor Office 2,305 214.1 4,069 378
TOTAL 16,183 1,504 22,761 2,115
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FLOOR PLANS
LOWER GROUND
Net Internal Area: 2,305 Sq ft (214.1 Sq m)
Gross Internal Area: 4,069 Sq ft (378.0 Sq m)
FIRST FLOOR
Net Internal Area: 2,617 Sq ft (243.2 sq m)
Gross Internal Area: 3,907 Sq ft (363.0 sq m)
SECOND FLOOR
Net Internal Area: 2,707 Sq ft (251.6 sq m)
Gross Internal Area: 3,511 Sq ft (326.2 sq m)
GROUND FLOOR
Net Internal Area: 2,785 Sq ft (258.7 sq m)
Gross Internal Area: 4,025 Sq ft (373.9 sq m)
For indicative purposes only, not to scale.
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FLOOR PLANS
THIRD FLOOR
Net Internal Area: 2,835 Sq ft (263.4 sq m)
Gross Internal Area: 3,537 Sq ft (328.6 sq m)
FOURTH FLOOR
Net Internal Area: 2,934 Sq ft (272.6 sq m)
Gross Internal Area: 3,334 Sq ft (309.7 sq m)
For indicative purposes only, not to scale.
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PLANNING
5 St James’s Square is Grade II* listed and is within the St James’s Square Conservation Area.
The local planning authority is Westminster City Council.
11.0m
Statue
APPLE TREE YARD
ST JAMES'S SQUARE
DUKE OF YORK STREET
102
House
77
4 to
5
6
1
Chatham
9
9
11
18
10
17
100
3
Station
Cycle
Hire
LB
ST JAMES'S SQ
UARE1
30
4
7
6
32
11b
9
3
PO
11
11a
5
9
31
Norfolk Hou
7
5
31
7
19 11d
3
31
Old London House
PH
2
32
16
6
12
5
33
10
6
Ward Bdy
CR
Eagle Place
110
25
108109
30
a
207 to 209
203 to 206
33
34
1
108to110
er
106
JERMY
REGENT STREET
16
18
16
20
111
1
15
20
17
2
Cinema
22
113
17 to
25
13
16
8
15
BabmaesHouse
18 to 23
JamesHouse
Shelter
27
0m 10m 20m 30m
Ordnance Survey © Crown Copyright 2019. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250
BABMAES ST
TENURE
The property is held freehold and is outlined below in gold.
There is a fire escape from the rear of 5 St James’s Square to Babmaes Street through an external corridor at basement level behind 6 St James’s Square and the common parts of 12-15 Babmaes Street. The right is granted by way of a lease of the external corridor at a peppercorn for a term of 999 years from March 2014 and a right of way in perpetuity granted by deed through 12-15 Babmaes Street.
12-15 Babmaes Street is currently in the same ultimate ownership as the subject property.
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.
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TENANCY SCHEDULE
5 St James’s Square is multi-let to six tenants with a passing rent of £2,272,981 per annum, reflecting an average rent of £140 per sq ft. The income is well diversified with no single tenant comprising more than 27% of the rental income.
Demise Tenant Area (sq ft) Lease Start Rent Review Lease Expiry Tenant Break Rent Per Annum Rent (PSF) Comments
Fourth Melqart Asset Management (UK) Ltd 2,934 16/01/2018 16/01/2023 15/01/2028 16/01/2023 £396,090 £135
Rent review based on RPI increase, subject to a minimum of 0.5% pa and maximum of 3.0% pa compounded. Tenant is entitled to 5 months’ rent free if they do not exercise their break.
Third SHL Capital (UK) Ltd 394 18/10/2017 10/03/2022 09/03/2027 10/03/2022 £66,980 £170
Rent review based on CPI increase, subject to a minimum of 0.5% pa and maximum of 2.5% pa compounded. Tenant is entitled to 7 months’ rent free if they do not exercise their break.
Initial service charge cap of £17.92 per sq ft – inflated annually by CPI.
Third WWT EMEA UK Ltd 2,441 09/07/2019 - 08/01/2021 - £489,005 £200 Licence basis. Rent shown is net of business rates and service charge.
Second Whitehall Residences Ltd 2,707 26/10/2018 - 25/10/2023 26/10/2021 £365,436 £135 -
First SHL Capital (UK) Ltd 2,617 10/03/2017 10/03/2022 09/03/2027 10/03/2022 £497,213 £190Rent reviews subject to CPI increase, subject to a minimum of 0.5% pa and maximum of 2.5% pa compounded. Tenant is entitled to 7 months’ rent free if they do not exercise their break.
Initial service charge cap of £20 per sq ft - inflated annually by CPI.
Right to park one car in the basement car park of 12-15 Babmaes Street.*
Ground SHL Capital (UK) Ltd 353 10/03/2017 10/03/2022 09/03/2027 10/03/2022 £42,787 £121
Ground One GP LLP 1,686 08/12/2017 - 07/12/2022 08/12/2021 £261,330 £155 Right to park one car in the basement car park of 12-15 Babmaes Street.*
Ground Reception 746 - - - - - -
Lower Ground Stanhope Gate Architecture Limited 2,202 24/05/2017 24/05/2022 23/06/2027 24/05/2022 £154,140 £70
Rent review based on RPI increase.Tenant is entitled to 7 months’ rent free if they do not exercise their break, to be taken as 14 months’ at half rent.
Lower Ground Kitchen 103 - - - -
Total - 16,183 - - - £2,272,981 £140 -
* The right to park is terminable if 5 St James’s Square is no longer in the same ownership as 12-15 Babmaes Street (NB the properties are currently in the same ownership). The vendor agrees for as long as the car parking space is used by the existing Licensee they can continue to park in 12-15 Babmaes Street for nil consideration as per the existing License.
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TENANT INFORMATION
SHL Capital (UK) Limited (rent passing £606,984 per annum, 27% of the passing rent)
SHL Capital is the family office of a Canadian billionaire businessman.
Rent deposit of £649,608.68 including VAT.
WWT EMEA UK Limited (rent passing £489,005 per annum, 22% of the passing rent)
World Wide Technology was founded in 1990 to provide technology services to large public and private organisations across the world. They have over 5,000 employees globally. Services include infrastructure services, consulting services and application services. In EMEA in 2018 their turnover was £222 million, with a profit before tax of £12.5 million and net assets of £25.5 million.
Rent deposit of £108,042.79 including VAT.
Melqart Asset Management (UK) Limited (rent passing £396,090 per annum, 17% of the passing rent)
Melqart Asset Management (UK) Limited is a London based alternative investment management firm. The company offers portfolio management, financial planning and investment advisory services to customers in the United Kingdom. The company was incorporated in March 2015 and in 2018 their turnover was £27 million, with a profit before tax of £22.7 million and net assets of £9.5 million.
Rent deposit of £238,099.60 including VAT.
Whitehall Residences Limited (rent passing £365,436 per annum, 16% of the passing rent)
Whitehall Residences Limited is developing the residential apartments at the Old War Office in London’s Westminster. The Old War Office is owned in a joint venture between the Hinduja Group and Spain’s OHL Desarrollos. The second floor of St James’s Square is used as their marketing suite for the residential apartments at the Old War Office.
One GP LLP (rent passing £261,330 per annum, 11% of the passing rent)
One GP LLP is the development company for Peninsula London. Peninsula London is the hotel and luxury residential apartment scheme owned by Hong Kong and Shanghai Hotels. The scheme is located in Grosvenor Place, Belgravia. The ground floor of St James’s Square is used as a marketing suite for Peninsula London. In 2018 One GP LLP had a turnover of £93.1 million.
Stanhope Gate Architecture Limited (rent passing £154,140 per annum, 7% of the passing rent)
Stanhope Gate Architecture is an international architecture practice which specialises in new build, master planning and refurbishment of listed and historic buildings, and collegiate, hotel and resort projects, both in the UK and abroad.
Rent deposit of £92,684.85 including VAT.
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VAT
The property has been elected for Value Added Tax (VAT) and VAT will therefore be payable on the purchase price. However, it is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
EPC
5 St James’s Square has an Energy Performance Certificate rating of C.
DATAROOM
An electronic data room is available upon request.
PROPOSAL
We are instructed to seek offers in excess of £75,000,000 (Seventy Five Million Pounds), subject to contract and exclusive of VAT, for the freehold interest in the property.
CONTACTS
For further information or to arrange an inspection please contact:
Stephen Down Nigel Fox [email protected] [email protected] +44 (0) 20 7409 8001 +44 (0) 20 7367 5723
Rasheed Hassan Victoria Shapiro [email protected] [email protected] +44 (0) 20 7409 8836 +44 (0) 20 7367 5724
Emma Steele Hugo Clarke [email protected] [email protected] +44 (0) 20 7409 8892 +44 (0) 20 7367 5730
George Gawthrop [email protected] +44 (0) 20 7409 8002
Important Notice
Savills, Capital Real Estate Partners and their clients 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 the joint sales agents 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 | December 2019
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