Office Investment Opportunity

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Sheila Webster
5 years ago
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1 Office Investment Opportunity

5 years unexpired term (lease expiring 22/04/2025) Annual 2% rental uplifts

2 Investment Rationale Fully let to Mourant Ozannes LP, one of the leading offshore law firms 11.5 years unexpired term (lease expiring 22/04/2025) Annual 2% rental uplifts Current rent 1,401,844 per annum 49,115 sq ft (4,563 sq m) freehold head quarters office building Prominent established business location

L EL OUR. S unnel DU 1822 LA C FOR A16 GREEN ROU E ENVILLE GR ES RE D HAV PAS OLO M BE R MOR M ILLA IS QUEEN NEW. St Helier D S OA AN L EY BR LA IS LA MIL R MO S R D.

ION LS HIL A1 he property is well located close to the prime retail area on King Street and Queen Street and is near restaurants/cafes. Elizabeth Castle GA PL.

Occupiers in the immediate surroundings include financial, legal, telecoms and fund management companies e.g. State Street Corporation, JP Morgan, Royal Bank of Canada (Private Wealth division), Jersey elecom, States of Jersey and Stonehage.

3 L EL OUR. S unnel DU 1822 LA C FOR A16 GREEN ROU E ENVILLE GR ES RE D HAV PAS OLO M BE R MOR M ILLA IS QUEEN NEW. St Helier D S OA AN L EY BR LA IS LA MIL R MO S R D. ER CES U GLO SEA O N PLA ES CE PL AN AD E COM ES MERCI A A PL AN L AD LIBE RA E. ION LS HIL A1 he property is well located close to the prime retail area on King Street and Queen Street and is near restaurants/cafes. Elizabeth Castle GA PL. S LE N KE A1 ON CA DE G SIN RK YO he subject property fronts onto both Grenville Street and Green Street which are in an established business district in St. Helier. Occupiers in the immediate surroundings include financial, legal, telecoms and fund management companies e.g. State Street Corporation, JP Morgan, Royal Bank of Canada (Private Wealth division), Jersey elecom, States of Jersey and Stonehage. LA L Jersey is well served by air and sea links from the UK, France and Switzerland. Jersey airport is located 5 miles (8km) from St. Helier. here are frequent ferries with regular services to Weymouth, Poole and St. Malo. ES P DE St Helier, is the capital of Jersey and has a population of approximately 28,000. It is the financial centre of the island with the majority of businesses locating there. E LA ROU Jersey is the largest of the four Channel Islands and is situated 14 miles off the north west coast of France and 85 miles from the south coast of England. NA Situation BA VAL PL AIS AN D A1 Location Jersey is classed as a Crown Dependency and therefore is internally self governing and operates within its own tax and legal framework. Jersey s local economy mainly revolves around the finance industry, with many banks operating on the island, along with accountants, fund management businesses and law firms. West Park OA AV EN UE S.S AV I SR IN UB IC OR IA D OA R GO A B IE LA ROUE DU FOR A4 GE W E O OR G D. NR S. CLEMEN S RD. S an Not to scale A4 LA G RAND Awaiting approval to use Ogier images he Economy Jersey is a renowned financial centre with a strong and prosperous economy. he island has a population of approximately 98,000 people, circa 30% of this population work within the financial services industry, which in itself accounts for more than 60% of the island s GDP. As well as a successful finance economy the island benefits from other income streams including tourism and agriculture. he island attracts approximately 700,000 visitors per annum accounting for just over 20% of GDP. In 2011 Jersey had a Gross National Income of 4bn. 3

Description he property comprises two interlinked office buildings, 18 and 22 Grenville Street, constructed in 1985 and 1995 respectively.

he properties are of a traditional frame construction with metal framed double glazed windows, a reconstituted stone façade under a pitched natural slate roof.

he upper floors comprise open plan office accommodation that has been partitioned by the tenant. here is a basement in 18 Grenville Street.

4 Description he property comprises two interlinked office buildings, 18 and 22 Grenville Street, constructed in 1985 and 1995 respectively. he buildings are the Jersey headquarters for Mourant Ozannes LP totalling 49,115 sq ft (4,563 sq m) of office accommodation. he properties are of a traditional frame construction with metal framed double glazed windows, a reconstituted stone façade under a pitched natural slate roof. he property is arranged over ground and three upper floors. 22 Grenville street includes a ground floor reception, oak panelled meeting rooms, library and cafe. he upper floors comprise open plan office accommodation that has been partitioned by the tenant. here is a basement in 18 Grenville Street. Specification Openplan flexible office accommodation Fully accessed raised floors (except for third floor 18 Grenville Street) Suspended ceilings with Cat II lighting 18 Grenville Street VRV airconditioning hree lifts (wo 8passenger lifts 22 Grenville Street, One 10passenger lift 18 Grenville Street) 13 covered parking spaces and 1 open space here are three residential flats that comprise two bedrooms, kitchen, living room, shower room and a balcony. hese residential units may only be occupied by persons classified as Entitled or Licensed under the Control of Housing and Work (Jersey) Law, Grenville Street 4

Accommodation 22 Grenville Street Grenville House Second Floor Plan Not to scale N Floor Use sq m sq ft Ground Reception 63.14 680 Ground Offices 384.71 4,141 First Offices 721.

5 Accommodation 22 Grenville Street Grenville House Second Floor Plan Not to scale N Floor Use sq m sq ft Ground Reception Ground Offices ,141 First Offices ,766 Second Offices ,860 hird Offices ,620 Light well hird Offices (Below 5ft) otal 2, , covered parking spaces 18 Grenville Street Crown House Floor Use sq m sq ft Basement Offices Ground Reception Grenville Street Ground Offices ,347 First Offices ,034 Second Front Offices ,448 Second Rear Offices ,774 hird Offices ,051 hird Offices (Below 5ft) otal 2, ,925 3 covered parking spaces and 1 uncovered parking spaces Overall total 4, ,115 Residential Floor Use sq m sq ft First Residential Second Residential hird Residential

6 enure Freehold. enancy he entire property is let, to Mourant Services Limited (Guaranteed by Mourant Ozannes LP) by way of two full repairing and insuring leases, one for each building, for a term of 21 years commencing 23/04/2004 (Expiring on 22/04/2025) subject to fixed annual rent reviews of 2.00% per annum. he lease has approximately 11.5 years unexpired. he current total rent is 1,401,844 per annum. his equates to per sq m ( per sq ft) on 22 Grenville Street, per sq m ( per sq ft) on 18 Grenville Street. hese figures are based on a half rate on both reception areas, 2,500 per annum for the covered car parking spaces and 2,000 for the uncovered space. he total rent also includes 22,950 per annum ( 7,650 each) for the three flats located to the rear of 18 Grenville Street. N Covenant Mourant Ozannes is one of the leading offshore law firms, advising on the laws of the BVI, the Cayman Islands, Guernsey and Jersey. hey have a substantial presence in each of these jurisdictions as well as offices in Hong Kong and London. Mourant Ozannes specialises in offshore legal services for international corporations and high networth individuals, whilst their specialist administration teams work on complex international funds, onshore and offshore financing and holding structures for property assets and employee share plans. heir clients include many of the world s leading financial institutions, public companies, corporations, fund promoters as well as high net worth private clients. Mourant Ozannes: Has over 50 partners and 440 staff in six offices, spanning Asian, American and European time zones Advises more FSE 100 and FSE 250 listed companies than any other offshore law firm (Advisor Rankings Limited, 2013) Advises 19 out of the world s top 20 banks (2013) Advised as offshore legal counsel on two of the largest IPOs of recent years Glencore in respect of its simultaneous listings on the Hong Kong and London stock exchanges and Vallares plc in respect of its listing on the London stock exchange International Legal eam of the Year: SEP Private Client Awards 2013/2014 Best Offshore Law Firm: US Hedgeweek Awards 2013 Offshore Law Firm of the Year: Chambers Europe Awards for Excellence Market Commentary Jersey enjoys a prosperous economy as a result of its wellregulated and internationally renowned finance sector which contributes 60% of GDP and employs 30% of the working population. As at June 2013, there were 42 banks registered in Jersey; bank deposits total 155 billion and funds under administration total 201 billion. he island benefits from a stable government, has no national debt and an increasing strategic reserve of 700 million (as at September 2013). In addition to trade through the finance sector, secondary industries of tourism and agriculture, support a dynamic web of local business. Overall, Jersey represents enviable stability. In addition to consistently favourable market conditions investors in Jersey property benefit from: Longer than average lease duration UK mainland style commercial leases 3yearly, upward only OMV reviews An absence of security of tenure and complex landlord & tenant legislation A predominance of international covenants and UK backed tenancies Low property rates, usually recoverable A pool of first class professional and legal expertise 6

7 Letting Market he total office stock in St Helier is in the region of 2.8 million sq ft with a low vacancy rate of just 200,000 sq ft, 7% of the total. Almost all available stock is in the secondary sector with a small volume of stock available at the Esplanade and Seaton Place which could be classed as grade A. here is a lack of available, good quality accommodation with nothing in the development pipeline that can be delivered within the next two years. he lack of supply means rents for prime stock and the very best secondary stock are expected to continue to grow in the short and medium term. here is demand for good quality space away from the Esplanade from occupiers who want to rent property at a discount to the islands 34 per sq ft prime rent. here are active requirements from companies looking to consolidate or upgrade accommodation and we are aware of specific requirements from a range of banks, trusts, legal and accountancy firms, all actively seeking new and upgraded premises. Investment Market he Jersey investment market can be characterised as stable with no significant oversupply of stock causing the significant peaks and troughs of the mainland. he relatively recent sales of 17/18 Esplanade, 1315 Castle Street, 50 Colomberie and 1115 Seaton Place point to an enduring appetite for particularly large scale lots backed by prestigious covenants. ransactional activity is however tempered by a knowledge that modest, uninterrupted rental growth continues to be the order of the day hence a reluctance to part with well performing assets. Address enant Date Price NIY Unexpired erm 17/18 Esplanade S.G. Hambros July ,700, % 32 Recent transactions include: Address Date enants Headline Rent per sq ft Bermuda House, Green Street HSBC June ,825, % 7 Ground, 1st & 3rd floors, 3133 New Street October 2013 Azure rust Group Castle Street Standard Chartered March ,100, % 6 37 Esplanade June 2012 August 2012 November 2012 September 2013 November 2013 November 2013 Collins Stewart KPMG PWC Volaw First Names Brevan Howard / 32.00* 31.50** 33.50*** Andium House, Don Street July 2013 Collas Crill Colomberie State Street December Seaton Place Aztec Group December ,000, % 14 8,750, % 13 Waverley House, Union Street March 2012 Blackrock Dialogue House, Anley Street BNP Paribas December ,950, % 11 1 Esplanade December 2011 Buckley & Co Seaton Place (Rear 44 Esplanade ) Ogier December ,100, % 11 Lime Grove, Green Street August 2011 Colomberie Services (State Street) Hill Street Multilet September ,500, % Library Place Barclays Bank January ,650, % 9 * & applicable to part floor 4 and floor 5. **Mixed average rent applicable to years 16. ***Minimum uplift at end of year3 to

Capital Allowance Capital allowances are available. Please contact the agents for further information. VA VA is not applicable in Jersey, Goods and Services ax (@ 5%) may be applicable.

Proposal We are instructed to seek offers for the freehold of the property or the full share issue of the SPV, Specular Limited (Guernsey domiciled company) in which this asset is held.

8 Capital Allowance Capital allowances are available. Please contact the agents for further information. VA VA is not applicable in Jersey, Goods and Services ax 5%) may be applicable. All figures quoted in this brochure are exclusive of GS and we would recommend that perspective purchasers make their own enquiries as to the liability. Proposal We are instructed to seek offers for the freehold of the property or the full share issue of the SPV, Specular Limited (Guernsey domiciled company) in which this asset is held. Purchaser s costs for a freehold sale will be 6.5% (Jersey stamp duty approximately 5%), and 1.5% for the purchase of the SPV. Further Information For further information or to arrange an inspection please contact: George Craig george.craig@eur.cushwake.com PJ hibault pj.thibault@eur.cushwake.com Chris Lewis chris.lewis@eur.cushwake.com Richard Lock richard@buckleyandcompany.co.uk Simon Buckley simon@buckleyandcompany.co.uk Cushman & Wakefield LLP and Buckley & Company for themselves and for vendors or lessors of this property whose agents they are, give notice that: (1) he particulars are produced in good faith, are set out as a general guide only and do not constitute any part of a contract. (2) No person in the employment of the agents has any authority to make or give any representation or warranty whatever in relation to this property. (3) his property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VA/G (4) Nothing in these particulars should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. (5) Unless otherwise stated, no investigations have been made regarding pollution or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required. November ayler Reid Design no

76-78 King Street, St Helier, Jersey JE2 3RP

To Let - Prime Retail Shop 76-78 King Street, St Helier, Jersey JE2 3RP 2 Ground Floor of circa 3,877 sq.ft. (360.31 m ) Summary Rare opportunity to acquire a prime King Street retail unit with large floor