ALEXANDER HOUSE 21 VICTORIA AVENUE SOUTHEND-ON-SEA, SS99 1BD
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WELL LET FREEHOLD INVESTMENT OPPORTUNITY
ALEXANDER HOUSE
21 VICTORIA AVENUE
SOUTHEND-ON-SEA, SS99 1BD
ON THE INSTRUCTIONS OF THE
JOINT FIXED CHARGE RECEIVERS
ALEXANDER HOUSE SOUTHEND-ON-SEA EXECUTIVE SUMMARY Well let investment opportunity. Located in the south east London commuter town of Southend-on-Sea. Single let to the undoubted government covenant of The First Secretary of State. Passing rent of £1,773,742 per annum. Large site area of 2.543 acres (1.029 hectares). Freehold. Totalling 235,679 sq ft. Long term potential to redevelop the site for alternative uses subject to gaining the necessary planning consents. The Vendor is seeking offers in excess of £17,000,000 (Seventeen Million Pounds) subject to contract and exclusive of VAT, for the benefit of the freehold interest in the property. This price reflects a net initial yield of 9.86% after purchaser’s costs of 5.8% and only £72 psf capital value.
Bedford
ALEXANDER HOUSE
M11
SOUTHEND-ON-SEA Haverhill
0
Biggleswade
A1
t Ipswich
5
A50 9 Sudbury
A6
Royston A14
21
A4
10
A131
Felixstowe
Letchworth
9 Harwich
Hitchin A12
0 A120
M1 Braintree
A1(M) Stevenage
Luton Stansted Colchester
11 A60 8
2
Bishop's
A133
Luton A120
LOCATION
A10
10 Welwyn Stortford
1
A1
A13
Garden 30
2
City M11 Witham A1
Clacton-on-Sea
St
Albans
4 Harlow
Maldon
Southend on Sea lies in the heart of Essex and is a well-established
8
Hoddesdon Chelmsford
7
3 7 commercial, residential and tourist hub. The town grew rapidly in
A414
the 19th century with the arrival of the railway link to London which
A10
M25 25 A12 SOUTHEND-ON-SEA provided a fast connection for seaside tourists. The town now boasts
Watford
A130
Enfield
M1 Barnet Chigwell two railway stations with direct links to London Liverpool Street
M11 28 Brentwood Rayleigh
2 A40
6
4
A12 (Southend Central 1 hour 14 minutes and Southend Victoria 1 hour
A127
1 A41
29 Basildon A127
16 minutes), as well as an international airport (London Southend
1
A40 Harrow 6
0 M25 A13
Airport) and its own university (The University of Essex).
3
Uxbridge A4
A1
City
LONDON A13
30
Canvey Island
1 Woolwich
A4 Richmond The town is located 42 miles east of Central London and 20 miles
Heathrow A205 Dartford Gravesend
Staines
A2
0 A2 2 Margate south of Chelmsford. Road links are excellent with the A13 providing
A2 Rochester
Kingston upon Thames
A232
1
Gillingham A28 direct access to London within 1 hour and 30 minutes.
A299
Sutton Croydon Sittingbourne A253
M25 4
M20 3 5 A28
Epsom M25 9
10 3 A24 M2 7
9
A23
6
M26 Canterbury
A22
A2
4
A2
5 7
Leatherhead M25 Sevenoaks
28
Maidstone
A2
6
A2
8
Oxted 6
A2
A2
Redhill
A256
Dorking M20 8
1
Reigate A2
Tonbridge
M23 A2
A22
A229
A24
9
Ashford 10 Dover
Gatwick A20
Tunbridge Wells
Crawley Folkestone
mere 11
A26
Horsham
59
Crowborough
A2
A22
Haywards
Heath
Uckfield
A23
A2
4
1
A2
A26
A259
A2
A2
2
83
A27 Lewes Hastings
Hailsham A259
A27
Shoreham Brighton A27 Bexhill-
Littlehampton on-Sea
Hove
Worthing Newhaven
A22
Seaford Eastbourne
gnor
gis
ALEXANDER HOUSE
SOUTHEND-ON-SEA
Southend Victoria Station
The Range
Victoria Shopping Centre
Sainsburys Odeon
High Street
University of Essex
Red keyline for indicative purposes only
SITUATION
Y
N N E R S WA
OR D RD
TESCO
EXTRA
R O C HF
Alexander House occupies a prominent site at the junction of A127
PRIN
CE A
MA
VEN
Victoria Avenue, Queensway and Baxter Avenue with frontages UE
59
B&Q
A11
to all 3 streets. The property is less than a 1 minute walk from
D
SUT TO N RO A
C AR LTO
Southend Victoria train station and only 7 minutes’ walk from N AVE N
UE PRIOR
Y C RE
S WAITROSE GARON PARK
Southend Central train station. GOLF COMPLEX
CEN T
PRIORY
SOUTHEND PARK A 1 1 59
HOSPITAL
SOUTHEND LESIURE
HIGHFIELD GRDS
P R I T T L EWE & TENNIS CLUB
A1158
LL CHA SE EA S TE RN
Alexander House is opposite both the High Street and the WELLESLEY
HOSPITAL AV E N U E
E GR OV E
ES
Victoria Shopping Centre with retailers including; Boots, Next, PRIO
RY C
R RO
YA
H A M ST
L
VE
FAI RFA X DR
H Samuel, Pizza Express, Vodafone, Starbucks, New Look, AR
PRITTLEWELL
IV E IVE
SOUTHBOURNE GRO
R
WE STB OU RN
FA X
D
T TI
E LL
EL ROA
FA IR RE
Odeon and Royal Bank of Scotland.
T ER
S U TTO
S TS
EA Y
W
A12
AY
D
N R
7 V
ST BOURNES
OA
T
W ES GREEN PARK
D
ICT
D
OR
OA
H AM ST
A 1 3 LOND
R
IA
ON
T
RO
ES
AD W
AV
EL RO AD
E
S UT TON
NU
ALEXANDER HOUSE
E
D
EVAR
L L AV E N U
BOUL
E
A1
3L SOUTHEND
HCH U RC H
ROAD
SOUT
KIN ON VICTORIA
D
GS
A13
ROA
RO DO
AD
N A 1 3 Q U E E N SWAY
AD
RO
Y R IE
GE
OAD
RO
WE
NEST AD
H URCH R SOUTHCHURCH
A13 SOUTHC
A RD
RT
LIF
K
K
VA L
OU
CHAL
S TA
ODEON VICTORIA
TC
CINEMA SHOPPING
QUEENSW
N WAY
LE
F I RST AV E CENTRE W OODG R A N GE D
RIVE
D
S TAT
H AM
ION R SOUTHEND
ROA
CHALKWELL OAD SOUTHEND
EAST
CENTRAL
HI G H S T
ON
WESTCLIFF
TT
REET
AY
T HE L
MI
EAS E DRI V E
WO ODG RAN G
DEMOGRAPHICS
WEST W OOD G R AN G E D RI V E
ERN
ESP
LAN
THE ROYALS A 1 160
AD E SHOPPING CENTRE
A 1 16 0
E
W E S T E R N E S P L AN A D E
ENU
M AR IN E
L I FSTAN WAY
PAR AD E
The total population of the Southend catchment area is
L AV
SOUTHCHURCH
EA PARK
HAL
ADVENTURE ST
336,000 and it is expected to see growth at the national ISLAND ER
NE
RPE
SP
LA
NA
average over the next 5 years (Promis July 2015). DE
THO
SOUTHEND PIER T HO RP E E S P LA N A D
E
DESCRIPTION • 8 x 12 person passenger lifts
• Male, female and disabled WC’s on each floor
The property was constructed in 1973 and comprises a 16 storey office • Air conditioning
building, a separate single storey office building to the rear used as a • Suspended ceilings
data centre and an additional 3 storey car park. The office building was
ALEXANDER HOUSE constructed using a concrete frame with an extensively glazed façade. The site provides for 283 cars with 196 spaces located in the 3 storey
SOUTHEND-ON-SEA The specification includes: car park and 87 surface parking spaces located in front of the property.
ALEXANDER HOUSE SOUTHEND-ON-SEA ACCOMMODATION SCHEDULE OFFICE BUILDING Floor Use Sq M Sq Ft 15th floor Offices 695.19 7,483 14th floor Offices 1,370.12 14,748 13th floor Offices 1,354.33 14,578 12th floor Offices 1,356.65 14,603 11th floor Offices 1,356.65 14,603 10th floor Offices 1,356.65 14,603 9th floor Offices 1,356.65 14,603 8th floor Offices 1,356.65 14,603 7th floor Offices 1,356.65 14,603 6th floor Offices 1,356.65 14,603 5th floor Offices 1,356.65 14,603 4th floor Offices 1,352.01 14,553 3rd floor Offices 1,356.65 14,603 2nd floor Offices 1,356.65 14,603 1st floor Offices 1,529.36 16,462 Ground Offices 1,380.71 14,862 Ground Reception 102.01 1,098 TOTAL 21,350.23 229,814 DATA CENTRE Floor Use Sq M Sq Ft Whole building Data Centre 544.88 5,865 TOTAL 544.88 5,865
TENURE
The property is held freehold.
TENANCY AND INCOME
The property is let on 2 coterminous leases as described
below.
Alexander House The office building and multi storey car park are single let
21 Victoria Avenue to The First Secretary of State on a lease commencing 25th
Southend-on-Sea December 2013 and expiring 2nd April 2026. The annual rent
is £1,758,658 per annum equating to £7.50 per sq ft having
apportioned £39,200 per annum to the multi storey car park.
nm
ffic
en
es
t
There is a tenant only break option on 2nd April 2021 with
a nine month notice period. The rent is reviewed 5 yearly
27
24
to the higher of Open Market Value or the passing rent. The
to
VIC
8 2
next review is 25th December 2018.
TO
RIA
AV
EN
The data centre is single let to The First Secretary of State
UE
Car Park Museum
El on a separate lease commencing 25th December 2013 and
Sub Sta
expiring 2nd April 2026. The annual rent is £15,058 per
annum equating to £2.57 per sq ft.
21
27
There is a tenant only break option on 2nd April 2021 with
to
37
Cycle Way
El
Sub Sta a nine month notice period. The rent is reviewed 5 yearly
Government
Offices
to the higher of Open Market Value or the passing rent. The
Ale
Multi-storey
next review is 25th December 2018.
15
xa
to
Car Park
nd
25
ra
Co
The total income is therefore £1,773,742 per annum.
urt
Southen
1 to 11
Victoria
The entire property is occupied by HMRC which houses
41
39 circa 1,600 permanent employees at the building. HMRC
recently rationalised their holdings in Southend and have
TCBs
consolidated many of their staff and functions in Alexander
House.
HMRC have occupied the building since 1973.
SOUTHEND-ON-SEA
AY 27.7m
ENSW
ALEXANDER HOUSE
SOUTHEND-ON-SEA
0m 25m 50m 75m
ALEXANDER HOUSE SOUTHEND-ON-SEA DEVELOPMENT POTENTIAL Due to the large site area and low levels of massing to the rear, the property lends itself to a large scale redevelopment at some point in the future. The property could either be developed in its existing use as offices or for alternative uses subject to the necessary consents. The property lies within the area covered by the Southend Central Area Action Plan (SCAAP) which sets out the strategy for major change and regeneration of the town centre. RESIDENTIAL MARKET Levels of home ownership in Southend are above the UK national average with 74% of the residents owning their properties. Average house prices in Southend are also above the UK national average and the infrastructure links to London make the town attractive for commuters. The building could also be suitable in the future as a Private Rented Scheme (PRS). Recent residential sales in Southend include: Property Price Date Comments Flat 1, The Pickfords Building, SS2 £250,000 Aug 2014 2 bed flat 11 Clifftown Parade, SS1 £293,000 Sept 2013 2 bed flat Flat 5, Grange Heights, SS1 £168,000 Feb 2015 1 bed flat Flat 1, 4 Clifftown Road, SS1 £180,000 July 2014 1 bed flat
MARKET COMMENTARY
South East offices have performed exceptionally well in 2015 with investors attracted to both rental and capital growth. South
East offices have reported a total return of 20.2% in 2015 to date and CBRE predict an annualised total return of 12.6% between
2015 and 2019.
There has also been a surge in occupier activity with rents forecast to grow by 5.8% in 2015 and by an annualised rate of 2.9%
from 2015 to 2019.
Recent comparable office lettings in Southend include:
Property Rent £psf Date Comments
Finance House, 20-21 Aviation Way, £10.78 June 2015 Ground floor letting
Southend
10 Alexandra Street, £7.46 January 2015 First floor letting
Southend
Cohav House, 16-17 Aviation Way, £10.00 August 2014 First floor letting
Southend
Princess Caroline House, 1 High Street, £9.35 June 2014 Ground floor letting
Southend
Recent comparable investment sales include:
Property Price NIY Cap Val Date Comments
(£million) £psf
Warwick House, £5,180,000 7.90% £253 Mar 2015 Single let to the First
67 Station Road, Secretary of State for 6.6
Redhill years
Elstree Gate, £9,250,000 9.60% £135 Feb 2015 Let to the First Secretary of
Imperial Way, State and Cable and Wireless
Borehamwood for 6.2 years
Jupiter and Juniper House, £8,390,000 8.22% £221 Feb 2015 Multi let offices with a WAULT
Warley Hill Business Park, of 3.5 years
Brentwood
Apollo and Lunar House, £94,900,000 5.50% £215 Available Single let to the First
Wellesley Road, Secretary of State for 8 years
Croydon
ALEXANDER HOUSE
SOUTHEND-ON-SEAALEXANDER HOUSE
SOUTHEND-ON-SEA
PROPOSAL
The Vendor is seeking offers in excess of £17,000,000 (Seventeen Million Pounds) subject
to contract and exclusive of VAT, for the benefit of the freehold interest in the property.
This price reflects a net initial yield of 9.86% after purchaser’s costs of 5.8% and only
PLANNING £72 psf capital value.
The property is located in the county of Essex and administered by Southend on Sea
Borough Council. The property is not listed and does not sit within a conservation area.
The property lies within the area covered by the Southend Central Area Action Plan FURTHER INFORMATION
(SCAAP) which sets out the strategy for major change and regeneration of the town
centre. For further information please contact:
Will Elphinstone
Tel: +44 (0) 20 7182 2008
Mob: +44 (0) 7876 131346
VAT will.elphinstone@cbre.com
The property has been elected for VAT purposes and it is intended to treat the transaction
Paul Ireland
as TOGC so that VAT will not be payable upon the purchase price.
Tel: +44 (0) 203 214 1907
Mob: +44 (0) 7912 205 868
paul.ireland2@cbre.com
EPC James Baruch
Tel: +44 (0) 20 7182 2011
The property has an EPC score of 109 giving it a rating of E. Mob: +44 (0) 7889 085112
james.baruch@cbre.com
MISREPRESENTATION ACT 1967
CBRE for themselves and for the vendors or lessors of the property whose agents they are give notice that:
(i) these particulars are given without responsibility of CBRE or the vendors or lessors as a general outline only for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract; (ii) CBRE cannot guarantee the accuracy
of any descriptions, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein and any prospective purchaser or tenant should not rely on them as statements or representations of fact but must satisfy themselves
by inspection or otherwise as to the accuracy of each of them; (iii) no employee of CBRE (and their joint agents where applicable) has any authority to make or give any representation or warranty or enter into any contract whatsoever in relation to the property; (iv) VAT may
be payable on purchase price and/or rent, all figures are quoted exclusive of VAT, intending purchasers or lessees must satisfy themselves as to the applicable VAT position, if necessary by taking appropriate professional advice; (v) except in respect of death or personal injury
caused by the negligence of CBRE, its employees or servants, CBRE will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars save to the extent that any statement made in these particulars has been made fraudulently.
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