Summary
Unconditionally purchased in 5 days from the Secretary of State for Defence, the project was undertaken in joint venture with Cadugan Developments Ltd.
As part of a 3 building portfolio, all of which were vacant offices, the decision was made to refurbish London House as offices, due to its lack of competing stock in the town.
The comprehensive refurbishment saw the building stripped back to its existing frame and all elevations replaced to provide floor to ceiling glass façades. This coupled with a complete refurbishment of the internal areas produced a striking Grade A building with open plan floor plates and very attractive car parking ratio.
Prior to the completion of the refurbishment the property was sold on a rental guarantee package to Rockspring with a letting to Software AG completed at £25.00 psf on a 10 year term-certain lease, within 2 months of practical completion of the works.
Business Case
STRENGTHS
- Package acquisition with 2 other buildings
- Existing office had an excellent parking provision
- Prominent position on main arterial route
- Size determined that it had no direct self-contained competition in the town
OPPORTUNITIES
- Ability through a comprehensive refurbishment to provide Grade A product with a very good parking ratio
- Speed to market given utilisation of the existing steel frame
- Ability to provide a product with no direct completion in the town in its size bracket
WEAKNESSES
- Massing was much less than possible, however, a desire to protect the car parking ratio decreed that an increase of massing was not commercial
- London Road, whilst once prime, was and is considered secondary to other office pitches
THREATS
- Tenant’s & investor’s negative perception of Bracknell
- Greater than M4 average vacancy rate in Bracknell would affect achievable ERV