Summary
Sourced by BHP, the property was unconditionally acquired during April 2010 in conjunction with F&C REIT. The property was let to Barclays Plc. on the residue of a 25 year lease with less than 3 months unexpired.
The property was in poor condition and required a comprehensive refurbishment in order to offer it to the market as Grade A accommodation.
During pre-acquisition due diligence, the possible removal of the rear stair core was identified through integration of an upgraded fire alarm – this strategy was adopted and allowed the release of the rear garage and stair core for residential development.
The property was subsequently refurbished and sold along with the residential development site to Philip Morris International for their UK headquarters.
Business Case
STRENGTHS
- Little quality office stock available in the town
- Attractive town in South West London
- Proximity to the railway station
OPPORTUNITIES
- Opportunity to create quality product in a town with limited supply
- Possibility of being only new grade A stock above 5,000 sqft in the town
- The Opportunity to create a stand alone development site out of the garage & secondary stair core through intelligent fire strategy, thus omitting need for secondary fire escape
WEAKNESSES
- Only 1 on site parking space
- Required a comprehensive refurbishment
- Low beam on ground floor
THREATS
- Town had shown limited take up in the recent past
- Tenant view of nil parking provision albeit with a very large public car park within 200m
- Tenant view of low beam at ground floor (2.36m)
- London Borough of Richmond Planning Department