15 London Street

Chertsey

Acquired from an Institutional fund, disposing of the asset due to its lot size, BHP acquired the property in a joint venture with Milroy Holdings.

At the point of acquisition, the property was subject to very recent upgrade works to the building’s air conditioning plant. There was limited CAPEX required to improve the building, as the works were predominantly cosmetic relating to the entrance, communal areas and vacant GF offices.

The 2F offices were compromised due to the roof profile which restricted natural light and head-room – BHP has successfully obtained planning consent to alter the roof profile and materially improve the 2F offer.

A refurbishment of the communal areas and vacant office space has recently been completed and the entire GF is let. BHP is also in the final stages of agreeing a lease re-gear with the 1F tenants, who use this office as their UK headquarters.

STRENGTHS

  • Attractive building & pricing
  • Partially income producing
  • Vendor had undertaken substantive M&E works in the very recent past
  • Good parking allocation

OPPORTUNITIES

  • Acquisition from a fund who had lost interest in the building
  • Potential to improve 2F office space through reconfiguration of roof profile
  • Opportunity to reposition the building through a refurbishment of the entrance, reception and WCs
  • Limited supply of competing accommodation in the town

WEAKNESSES

  • Building lacked prominence to London Road
  • Income was compromised by void costs
  • 2F accommodation requires structural alteration for the office space to be marketable

Threats

  • Building lacks ‘front line’ prominence to London Road
  • Planning risk in obtaining consent to undertake works to re-profile the 2F roof
  • Void risk