The other Palace theatre - 12 Palace Street Victoria london SW1e 5Ja - The Landsite
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The Other
Palace Theatre
12 Palace Street • Victoria
London • SW1E 5JA
“Virtual freehold theatre investment for sale on instructions of
Aiden Murphy of Crowe Horwath (Receiver)”
Investment Summary ++ Prime Victoria location ++ Close to London Victoria Station, Buckingham Palace and St James’s Park ++ 999 year interest from 8 November 2006 subject to an occupational lease to Entertainment Theatres Limited with a guarantor from the Really Useful Theatres Group Limited (D&B Rating 5A1) ++ 75 year occupational lease from 17 September 2012 ++ Current rent £100,000 per annum ++ Five yearly open market reviews with the potential for CPI linked increases in the future ++ Business unaffected by sale ++ Accommodation arranged over lower basement, basement, ground and first floors with a GIA – 1,371 sq m (14,761 sq ft) ++ Offers in excess of £1,900,000 (5.00% NIY) are invited for the benefit of our clients long leasehold interest
Location Buckingham Buckingham
G Palace Gardens St James'
R
O Palace Park
Located in the heart of Westminster in SV
EN
London’s West End, in one of the capitals most O
R
exclusive and affluent districts. The district PL
A ALK
benefits from an influx of both commuters C
E BIRDC
AGE W
given the close proximity to Victoria Station
as well as tourists interested in exploring
the many attractions in the area including THE OTHER B323 WESTMINSTER
Buckingham Palace, Westminster Abbey,
Westminster Cathedral and Tate Britain.
PALACE THEATRE
BU
CK
IN
GH
The Other Palace Theatre occupies a AM
prominent position at the intersection Cardinal GA
TE
U
PP
Place
ER
between Warwick Row and Palace Street
B
EL
in a mixed use residential and commercial
G
LOWER GROSVENOR
R
AV
17
area. The property is adjacent to the Phoenix A32
E
Nova
ST
R
public house (Geronimo Inns/Young’s), the
EE
T
214
Nadler Victoria Hotel and directly opposite
A3
1 Palace Street, a development of 72 luxury T
TREE
RIA S
apartments due for completion in December BE
LG
A3 VICTO
17 02
2019 http://numberonepalacestreet.com/. RA
32
V
A
E
Immediately to the rear of the property PL
A
A3
C
is Cardinal Place where occupiers include E
215
Marks and Spencer, Browns (Mitchells and Westminster
Butlers), Zizzi, Wagamama and Nando’s. Cathedral
A
32
The area immediately surrounding the theatre Victoria
1 3
has undergone significant redevelopment Station
including the £700m upgrade of London
VICTORIA
Victoria Station by Transport for London
and the £2bn, 5.5 acre, Nova Victoria
A3
development by Land Securities providing 213
480,000 sq ft of offices, 85,000 sq ft of
retail/restaurants and 170 luxury apartments.
The Other Palace Theatre 12 Palace Street, Victoria, London SW1E 5JA
DESCRIPTION Lower Basement Planning
The lower basement comprises a cabaret/studio
venue which has a capacity of 102 (82 seated and
The property forms part of the 12 Palace Street Our initial enquires of the local authority have revealed
20 standing). This area has its own bar servery and a
seven storey development with a 302 seat theatre that the property is not listed nor is it situated within a
raised stage area. There is a balcony overlooking the
auditorium, separate cabaret/studio venue, bar and conversation area.
stage which has further seating for 17. The remainder
restaurant arranged over lower basement, basement,
of the lower basement comprises a number of
ground and first floor levels.
storage/plant rooms, artists dressing and prop rooms,
a disabled toilet, shower room and an office. EPC
ACCOMMODATION Upper Floors B - 47
The upper floors, which are outside of our clients
Ground floor ownership, have been developed to provide 35 luxury
The ground floor comprises the main foyer with
box office and an open plan bar area with customer
apartments. Tenure and Tenancy
seating on loose tables, chairs and fixed booth seating The property has the following approximate gross The property is held on a long leasehold (999 years) at
and toilets to the rear. There is a lift to the side of the internal floor areas: a peppercorn rent from 8 November 2006.
bar servery which services all floors. The auditorium
theatre is situated to the rear of the ground floor Level Description Sq M Sq Ft
and provides raked seating for up to 302 persons The lower basement, basement, ground and first floors
Ground Bar/Ancillary 415.0 4,467 are held on a 75 year lease to Entertainment Theatres
with a number of technician’s studios to the rear of
the auditorium. Ground Auditorium 282.9 3,045
Limited (company number 07635832) expiring 16
September 2087 at a current rent of £100,000 per
First Restaurant 136.3 1,468 annum with a guarantor from The Really Useful
First Floor
Basement Ancillary 193.1 2,078 Theatres Group Limited (company number 03987988).
The restaurant, trading as The Other Naughty Piglet, is
The lease is subject to five yearly open market reviews
accessed via a feature staircase from the ground floor Lower Basement Ancillary/Studio 344.0 3,703 from September 2022, with increases capped at 16%.
and comprises an open plan theatre style trade kitchen
1,371.3 14,761 There is the potential for future rent reviews to be
to the rear with customer seating on a mix of loose
to the higher of open market or the Consumer Price
tables, chairs and fixed booth seating.
Indexed (CPI), capped at 16% per review, once the
base rate exceeds 123.5.
Basement
The basement comprises ancillary areas including staff
changing rooms and a number of storage/plant rooms.
The Other Palace Theatre 12 Palace Street, Victoria, London SW1E 5JA
The London Market
London continues to be recognised as one of the worlds safe havens for property investors.
Its status as a leading global financial centre and as one of the most visited cities by tourists
continues to drive investor and occupier demand.
The most recent research released by the Office for National Statistics indicated that the number
of international visits to London increased by 20% between 2010 and 2015 to 18.6 million with
separate research by Oxford Economics predicting that the capital will welcome 35.6 million
visitors by 2020. Visitor spend in London has also increased significantly with £15 billion spent on
hotels, restaurants and attractions, an increase of 35% when compared with 2010.
Investor demand for London assets remains incredibly strong particularly for buildings which
are let to strong covenants on long leases. The strength of demand has led to investment
yields sharpening in recent years as can be seen from the schedule of comparable leisure
transactions below.
Comparable Transactions
Property Price Yield (NIY) Date
Library, St Martins Lane £9.35m 2.50% May 2017
Grosvenor Casino The Victoria, Marylebone £70.00m 4.29% May 2017
Pizza Express, Soho £4.70m 3.50% April 2017
Pizza Express, South Kensington £5.22m 3.34% December 2016
Bedford, Balham c.£7.00m 3.95% September 2016
The Other Palace Theatre 12 Palace Street, Victoria, London SW1E 5JA
Covenant
The Really Useful Theatres Group Limited, who act as guarantor under the occupational lease,
are a leading musical theatre company operating seven venues in London’s West End. The group,
which has a 5A1 Dun & Bradstreet rating, is wholly owned by Andrew Lloyd Webber and operates
the following venues in addition to the Other Palace Theatre:
Venue Address Current Productions
Adelphi Strand, London WC2R 0NX Kinky Boots
Cambridge Earlham Street, London WC2H 9HU Matilda the Musical
Her Majesty’s Haymarket, London SW1Y 4QL The Phantom of the Opera
London Palladium Argyll Street, London W1F 7TF Dick Whittington / The Wind in the Willows
New London 166 Drury Lane, London WC2B 5PW School of Rock the Musical
Theatre Royal Catherine Street, London WC2B 5JF 42nd Street
Musical theatre is the largest market segment in the United Kingdom and the Really Useful
Theatres Group is the largest operator of musical theatres in London accounting for one third of
all visits to musicals in the capital. The group is committed to reinvesting in its portfolio having
spent £18m over the past 5 years and for the 53 weeks to 3 July 2016 reported a group turnover of
£44.2m with shareholder funds of £69.3m.
The Other Palace Theatre 12 Palace Street, Victoria, London SW1E 5JA
VAT
It is envisaged that the property will be sold as a TOGC
so the transaction should therefore be exempt from VAT.
Terms
We are instructed to invite offers in excess of £1,900,000
(5.00% NIY) assuming purchasers costs of 6.25%.
The business will continue to trade unaffected from the
premises during the marketing of the property and post
completion of the sale.
viewings and Contacts
All viewings must be made by prior appointment and
under no circumstances should any direct approach be
made to any of the occupational tenants staff.
For further information and all viewing requests please
contact the sole selling agents Savills.
Paul Breen
020 7877 4555
pbreen@savills.com
Stuart Stares
020 7299 3088
sstares@savills.com
Colin Lambert
07968 550 415
cjlambert@savills.com
Published for the purposes of identification only and although believed to be correct its accuracy is not guaranteed. Reproduced from the Ordnance Survey Map with the permission of the Controller of H.M.
Stationery Office © Crown copyright licence number 100024244 Savills (L&P) Limited.
Savills, their clients and any joint agents give notice that:
1. T
hey 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. A
ny 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.
Professional photography provided by Craig Sugden.
July 2017
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