Summary
The vendor had made the decision to sell Voyager House given the recent vacation by its tenant, The Secretary of State. BHP’s directors have had good success historically with offices in Croydon and through its contacts with Stiles Harold Williams appraised the opportunity. Following this market review, the opportunity to provide a self-contained building without direct competition was established and coupled with Mott Mc Donald being identified as a potential pre-let, the decision was made to pursue the property.
Following a competitive tender, BHP agreed to unconditionally purchase the property in conjunction with Ansbacher and Co, The Mc Gahan Litchfield Partnership and Cranmer investments – the purchase completed in July 2004.
A comprehensive refurbishment was proposed to include the addition of a small extension at the front of the premises. With floor-to-ceiling glazing, it was designed to provide a degree of physical presence on Wellesley Road whilst also increasing the NIA to 30,000 sqft thus ensuring its compatibility with the Mott Mc Donald pre-let opportunity.
BHP, along with its letting agents, pursued Mott Mc Donald and an agreement for lease was signed In January 2005 within days of commencing works for the refurbishment. The building was sold shortly after Mott Mc Donald took occupation in August 2005.
Business Case
STRENGTHS
- Smaller self-contained building
- Within recognised office pitch
- No direct competition
OPPORTUNITIES
- To offer a refurbished self-contained building
- To improve density on site through small extension
- Pre-let possibility as Mott Mc Donald were known to have an active 30,000 sqft requirement
WEAKNESSES
- Substantial refurbishment required
- Whilst in recognised office pitch, Wellesley Road is not prime
- Building lack presence given larger surrounding buildings
THREATS
- Car park was ‘shared’ with neighbouring YMCA
- Right of light / party wall matters restricted opportunities to extend the property
- Void risk
- Planning risk