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Transcript of DUKES BRIDGE READING - allsop.co.uk · THE ORACLE SHOPPING CENTRE BROAD STREET MALL MARKET PLACE AD...
PB 1
DUKE STREET • READING RG1 4SA
DUKES BRIDGEREADING
PRIME TOWN CENTRE MIXED USE INVESTMENT WITH MAJOR DEVELOPMENT POTENTIAL
THE ORACLE SHOPPING CENTRE
BROAD STREET MALL
MARKET PLACE
INNER DISTRIBUTION ROAD (A329)
M4 JCT 11
DUKES BRIDGEREADING
BROAD STREET
FRIAR STREET
Outline for indicative purposes only.
DUKES BRIDGEREADINGINVESTMENT CONSIDERATIONS••• Prominent Town Centre mixed-use investment comprising 0.8 acres
(0.3 Hectares)
••• Freehold
••• Crossrail in 2019 will link Reading Station to Bond Street, Liverpool Street and Canary Wharf within 30 - 44 minutes
••• Located within a 5min walk from Reading Rail Station
••• The property comprises office (31,493 sq ft), retail (10,035 sq ft) and residential (11,605 sq ft) accommodation
••• Total floor area of 53,133 sq ft with secure basement and surface level parking for 41 cars
••• 30,430 sq ft of vacant accommodation with a reversionary income of £1,196,151
••• Total Contracted Rent of £423,459 per annum
••• Numerous asset management options on vacant accommodation with recently refurbished office suites available for immediate occupation
••• Immediate potential to implement Permitted Development Rights (PDR) to convert office accommodation to residential use
••• Additional partial and comprehensive site redevelopment opportunities to alternative uses, subject to vacant possession and necessary consents
PROPOSALWe are instructed to seek offers in excess of £11,800,000 (Eleven Million and Eight Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a low capital value of £222 psf, assuming standard purchasers costs.
DATA ROOMFor access to the Allsop Marketing Data Room, please use the following link: https://datarooms.allsop.co.uk/register/dukesbridge
READING RAIL STATION
3
4 5
READING
Reading is internationally renowned as a key UK business hub combining first class commercial accommodation and a vibrant residential scene attracting the very best to live, work and play.
Reading is extremely well linked to Central London via Public Infrastructure, due to improve further following the imminent introduction of Crossrail. The M4 Motorway provides additional access to South Western England and Wales, again due to receive an £850m+ upgrade to Smart Motorways.
Occupiers and residents are attracted by the diverse range of local amenities and appealing working environment including riverside and parkland spaces throughout the Town Centre.
Reading provides a well-integrated service economy combining a highly skilled local workforce, with over half of the working population holding higher education qualifications, and a diverse range of business types, in particular, technological, financial and professional services.
The town was recently announced the 2nd most business-friendly small city in Europe based on factors such as the number and proportion of companies in high-tech and knowledge-based industries, jobs created by investment and foreign direct investment. GVA per worker is currently over 25% the national average.
INVESTMENT RATIONALE
Reading, the Capital of the Thames Valley, has recently benefitted from major economic growth and Town Centre development. Impending infrastructure improvements are due to further drive growth and regeneration increasing access to a workforce in excess of 6 million people, within a 1 hour commute of the Town Centre.
Recently developed Grade A office developments in the town centre will continue to drive prime rental values currently at £38.00 psf. The passing rent at Dukesbridge Chambers reflects a 37% discount on prime headline rents with limited availability at present for the cost sensitive occupier.
The property provides numerous asset management routes on existing accommodation with a variety of refurbishment and re-letting options. Minor and full-scale redevelopment to alternative uses presents an extremely attractive option, subject to vacant possession and necessary consents.
DUKES BRIDGEREADING
4
4 5
A232
A331
A332
A4074
A22
M23
M25
M40
M3
M4
A3
A4
A10
A24
A31
A33
6
3
101112
READING
Maidenhead Slough
Watford
Croydon
Wembley
Kingstonupon Thames
Farnborough
Guildford
GATWICKAIRPORT
LONDON CITYAIRPORT
Basingstoke
LONDONHEATHROW
AIRPORT
COMMUNICATIONS
JOURNEY TIMES
Crossrail Direct Times from 2019
Current Times
Proposed Heathrow rail link
HEATHROW AIRPORT
CANARY WHARF
LIVERPOOL STREET
BOND STREET
LONDON PADDINGTON
38 MINS 25 MINS 54 MINS 58 MINS 67 MINS
28 MINS 30 MINS 35 MINS 44 MINS
5
6 7
A329
CAV
ERSH
AM R
OAD
A329 (IDR)
A33
A329 (IDR)
A329 QUEENS ROAD
A329
A329 VASTERN ROAD (IDR)
A329
A329 FORBURY ROAD
A329 (ID
R)
QU
EENS W
ALK
UN
ION
ST
QU
EE
N VIC
TOR
IA
CR
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S S
T
CH
AIN
ST
BROAD STREET
TUDOR ROAD STATION HILL
THE FO
RB
UR
Y
BLAGRAVE ST FORBURY RDGARRARD STREET
GR
EYFR
IAR
S R
OAD
NAPIER ROAD
FRIAR STREET
EAS
T ST
SID
MO
UTH
STR
EET
REA
DIN
G B
RID
GE
PELL STREET
A4 LONDON ROAD
A4
SOUTH
AMPTO
N ST
A327
CH
EAPSIDE
SOUTH STREETCASTLE STREET
G
UN ST
MINSTER ST KING ST KING ROAD
MA
RK
ET PLA
CE
DU
KE ST
LON
DO
N S
T
WEST STREET ST M
ARY’S BUTT
BRIDG
E STREET
WA
LTLING
TON
ST
STA
TION
RD
BLA
GR
AVE S
TTHE FORBURY
VALPY ST
ABBEY SQ
OXFORD ROAD
RIVER THAMES
READING STATION
THE ORACLE
THE ORACLE
RIVERSIDE CAR PARK
BROAD STREETMALL
THEHEXAGON
FORBURYGARDEN
RIVER KENNET
TO M4(JUNCTION 11)
UNIVERSITY OF READING20 MINS WALK
TO A329(M) & M4(JUNCTION 15)
VASTERN COURTRETAIL PARK
FORBURY RETAIL PARK
DUKES BRIDGEREADING
SITUATION
Dukesbridge is prominently located on Duke Street adjacent to the prime pedestrianised retail pitch of Broad Street and the Oracle Shopping Centre; Reading’s recently redeveloped Rail Station is situated only a 5 min walk to the north.
Duke Street provides the primary pedestrian route from the University of Reading to the town centre and is well served by numerous local bus services accessed directly opposite the property.
To the north, the area surrounding Jackson’s Corner has witnessed a revival of late following several re-developments to provide a diverse range of retail, restaurant, bar and leisure uses, Dukesbridge residential accommodation is well placed to take advantage of a diverse range of local amenities.
In addition to on-site parking (41 spaces), Dukesbridge is located within close proximity to several large public car parks including Oracle Riverside (1,679 spaces), Holybrook (623 spaces) and NCP, Queens Road (700 spaces).
WALKING TIMES
1 minute
5 minutes
The Oracle Shopping Centre and Broad Street
Broad Street Mall and Reading Rail Station
6 7
8 9
DESCRIPTION
DUKESBRIDGE HOUSEThe building comprises retail accommodation, a basement nightclub and a waterside self-contained office arranged over basement, ground and four upper floors. Dual access is available via Duke Street and the rear courtyard providing surface level and lower ground car parking accommodation (19 spaces).
Constructed in 1989, the building comprises attractive brick and glazed elevations beneath a pitched and mansard roof. The office accommodation, totalling 2,049.7 sq m (22,063 sq ft), is highly divisible; benefitting from a large reception area and central corridor access. Additional lift access is available to the front of the building providing two 8 person (600 kg) lifts.
DUKESBRIDGE CHAMBERSAn attractive office, totalling 876.1 sq m (9,430 sq ft) arranged over ground and four upper floors to provide four self-contained units with rear car parking provision. All floors have recently benefitted from comprehensive refurbishment works to provide high quality and well-specified accommodation with 8 person (600 kg) lift access. The property provides ground floor retail accommodation let to Rymans.
DUKESBRIDGE COURTThe retail accommodation comprises five fully occupied ground floor retail units, totalling 258.2 sq m (2,780 sq ft), fronting on to Duke Street with rear loading access via the rear courtyard.
The residential accommodation comprises 16 flats, totalling 1,078.1 sq m (11,065 sq ft), arranged over first, second and third floors providing a range of one and two bedroom units with rear car parking provision. The flats benefit from private external balconies and stairwell access via the rear courtyard and Duke Street (Flats 11-17).
DUKESBRIDGE HOUSE DUKESBRIDGE CHAMBERS
DUKESBRIDGE COURT
DUKES BRIDGEREADING
8 9
WHARF
George Hotel
Library
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Gril
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Chennia Dosa
Indian
Restaurant
Perry’sThe BotanistBar &
Restaurant
DUKESBRIDGEHOUSE
DUKESBRIDGECHAMBERS
Kings Wharf
River Kennet
KING’S ROAD
DU
KE STREET
KING’S STREET
QUEEN’S ROAD
YIELD HALL PLACE
HIG
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DUKESBRIDGECOURT
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JACKSONS CORNER
© Crown Copyright, ES 100004106. For identification purposes only.n Electricity Sub-Station.
SUMMARY OF ACCOMMODATION AND TENANCIES
The property is let in accordance with the Schedule of Accommodation and Tenancies.
In summary, the property provides:
Demise Use Area (sq ft)
Marketing Rent (£ p.a.)
Estimated Rental Value (£ p.a.)
Dukesbridge House Retail/Leisure 4,281 £17,500 £51,000
Office 22,063 £559,500
Dukesbridge Chambers Retail 2,047 £44,000 £52,000
Office 9,430 £89,315 £241,500
Dukesbridge Court Retail 3,707 £95,130 £97,000
Residential 11,605 [GIA] £177,514 £195,151
Total 53,133 £423,459 £1,196,151
MANAGEMENT
The Service Charge is apportioned on a weighted floor area basis. The following table sets out the service charge expenditure in recent years:
Year End Expenditure Budget % Change
2018 (Budget) £200,166 0.40%
2017 £199,362 8.96%
2016 £182,968 0.68%
The property comprises 2,827.0 sq m (30,430 sq ft) of vacant accommodation.
The Allsop Ratings Department has assessed the buildings and there are several potential strategies to reduce Landlord liabilities, in particular, with regard to potential development opportunities.
Please refer to the Allsop Marketing Data Room for further information.
10 11
Description Unit Tenant GIA NIA (ITZA)
Lease Start Rent Review
Lease Expiry (Break Option)
Passing Rent £/p.a./psf (ITZA/psf)
ERV £/p.a./psf (ITZA/psf)
Comments
Sq M Sq Ft Sq M Sq Ft
Leisure No. 19 (Basement Wine Bar)
Vacant 421.5 4,537 294.5 3,170 £34,000 (£7.50)
Retail No. 21 Subway Realty Limited 103.2 (51.1)
1,111 (550)
02/09/05 01/09/20 £17,500 £15.75
(£31.82)
£19,000 £17.10
(£35.00)
Office Lower Ground Floor Vacant 598.7 6,444 41.1 442
£531,000 £24.50
LG: £5.00
Office Ground Floor Vacant 690.2 7,429 530.9 5,715
Office First Floor Vacant 650.4 7,001 536.1 5,771
Office Second Floor Vacant 650.6 7,003 535.2 5,761
Office Third Floor Vacant 514.2 5,535 406.4 4,374
Parking 19 Car Parking Spaces Lower Ground Floor
Vacant £28,500
Sub-Total 2,447.4 26,344 £17,500 £610,500
DUKESBRIDGE CHAMBERS
Description Unit Tenant GIA NIA (ITZA)
Lease Start Rent Review
Lease Expiry (Break Option)
Passing Rent £/p.a./psf (ITZA/psf)
ERV £/p.a./psf (ITZA/psf)
Comments
Sq M Sq Ft Sq M Sq Ft
Retail No. 3 & 5 Ryman Limited 203.7 2,193 190.2 (138.7)
2,047 (1,493)
25/06/10 23/06/15 £44,000 £21.41
(£29.47)
£52,000 £25.40
(£35.00)
Lease renewal under negotiation.
Office Ground Floor Reception 99.7 1,073
Office First Floor Vacant 305.0 3,283 242.0 2,605 £64,000 £24.50
Quoting Headline Rent of £64,000 p.a. (£24.50 psf).
Office Second Floor Vacant 302.1 3,252 240.8 2,592 £64,000 £24.50
Quoting Headline Rent of £64,000 p.a. (£24.50 psf).
Office Third Floor Slicethepie Limited 301.4 3,244 240.7 2,591 08/12/14 07/12/19 £50,027 £19.31
£63,000 £24.50
Fixed service charge: £18,293 p.a.
Office Fourth Floor Randstad UK Holding Limited
214.6 2,310 152.5 1,642 03/11/17 02/11/22 £39,288 £23.93
£40,000 £24.50
Lease subject to a rent free incentive of 12 months from term commencement date to be topped-up by the vendor. The lease provides for a single car parking space to rear of Dukesbridge House.
Parking 22 Car Parking Spaces Surface Level
Vacant £10,500
Sub-Total 1,066.2 11,477 £133,315 £293,500
DUKESBRIDGE HOUSE
TENANCY SCHEDULE
10
10 11
Description Unit Tenant GIA NIA (ITZA)
Lease Start Rent Review
Lease Expiry (Break Option)
Passing Rent £/p.a./psf (ITZA psf)
ERV £/p.a./psf (ITZA psf)
Comments
Sq M Sq Ft Sq M Sq Ft
Retail No. 7 Nylon (Reading) Limited 81.8 (53.9)
881 (580)
20/11/13 19/11/18 19/11/23 £18,250 £20.72
(£31.48)
£20,000 £22.70
(£35.00)
Retail No. 9 Oxfam 82.3 (53.7)
886 (578)
30/09/08 29/09/13 £19,880 £22.44
(£34.39)
£20,000 £22.57
(£35.00)
Holding Over. Lease Renewal in Solicitors Hands. Proposed 5 year term at the passing rent of £19,880 p.a.
Retail No. 11 Calogero Albanese 80.1 (50.5)
862 (544)
07/02/14 06/02/19 £18,000 £20.88
(£33.09)
£19,000 £22.04
(£35.00)
Retail No. 15 Louis And Elias Limited 49.4 (49.4)
532 (532)
16/01/08 16/01/18 15/01/23 £19,000 £35.71
(£35.71)
£19,000 £35.71
(£35.71)
Retail No. 17 Quais Aziz 50.7 (50.7)
546 (546)
14/09/08 14/09/18 13/09/33 £20,000 £36.63
(£36.63)
£19,000 £34.80
(£35.00)
Residential 1 bed Flat 1 Private Individual 55.7 600 14/04/17 13/04/18 £10,200 £11,550 Tenant Holding Over on a Periodic Tenancy. AST Renewal in progress.
Residential 1 bed Flat 2 Private Individual 59.4 639 29/11/17 28/11/18 £11,544 £11,550
Residential 1 bed Flat 3 Private Individual 49.3 531 26/03/18 25/03/19 £10,200 £11,550
Residential 1 bed Flat 4 Private Individual 52.9 569 09/12/17 08/12/18 £11,277 £11,550
Residential 2 bed Maisonette Flat 5 Private Individual 77.0 829 10/07/17 09/07/18 £12,600 £13,800
Residential 2 bed Maisonette Flat 6 Private Individual 81.6 878 31/01/18 30/01/19 £12,912 £13,800
Residential 1 bed Flat 7 Private Individual 59.0 635 29/09/17 28/09/18 £9,600 £11,550
Residential 1 bed Flat 8 Private Individual 59.7 643 28/01/18 27/01/18 £11,400 £11,550
Residential 2 bed Maisonette Flat 9 Private Individual 79.9 860 27/01/18 26/01/19 £11,400 £13,800
Residential 2 bed Maisonette Flat 10 Private Individual 81.8 880 20/05/17 19/05/18 £11,940 £13,800
Residential 1 bed Flat 11 Private Individual 64.7 696 16/01/18 15/01/19 £9,900 £11,550
Residential 1 bed Maisonette Flat 12 Private Individual 72.2 777 01/02/18 31/01/19 £11,400 £12,000
Residential 1 bed Flat 14 Private Individual 62.6 674 04/10/17 03/10/18 £10,200 £11,550
Residential 1 bed Flat 15 Private Individual 61.9 666 09/03/18 08/03/19 £10,800 £11,550
Residential 1 bed Maisonette Flat 16 Private Individual 74.1 798 29/09/17 28/09/18 £10,800 £12,000
Residential 1 bed Maisonette Flat 17 Private Individual 86.3 929 01/03/18 29/02/19 £11,340 £12,000 Tenant Holding Over on a Periodic Tenancy. AST Renewal in progress.
Sub-Station Southern Electricity Board 03/02/83 02/02/82 £1 £1
Sub-Total 1,078.1 11,605 344.4 3,707 £272,644 £292,151
Total £423,459 £1,196,151
DUKESBRIDGE COURT
11
12 13
RESIDENTIAL MARKET OVERVIEW
••• Reading Council is targeting 12,827 new homes by 2036 – the highest within the Thames Valley.
••• 717 dwellings completed during April 2016 – March 2017 with an additional 1,000 homes under construction
••• Almost half of recent residential completions comprise change of use developments
••• Current population of Reading predicted to grow by 11.4% by 2036.
••• Only 2,938 homes built in the previous 5 years, Reading needs to deliver more housing
••• Reading is becoming an increasingly popular residential destination, as residents move further out from London for more affordable and quality accommodation
••• ‘Fast-paced’ residential market with significant growth potential in comparison to other Thames Valley locations
••• Dukesbridge provides an attractive opportunity to develop and invest in this fast developing market
READING RESIDENTIAL LETTING MARKET
Reading has emerged as the principal western gateway to London and an established business destination in its own right. On average, best of class accommodation is commanding rental levels of:
Studios £850 pcm
One Beds £1,100 pcm
Two Beds £1,700 pcm
We are of the opinion, a new rental product, within the immediate vicinity of the Oracle Shopping Centre, pedestrianised Broad Street and principal town centre business district would command a significant premium to these levels.
In addition, there is significant opportunity for rental growth, with South East rental growth predictions of:
2018 – 3.0% 2020 – 3.5% 2022 – 4.0%
2019 – 3.5% 2021 – 4.0%
Aggregated 5 Year Growth Rate – 19.3%
Source: JLL
READING RESIDENTIAL SALES MARKET
Reading has recorded a significant increase of 49% in residential capital values since 2009. As the introduction of Crossrail nears in December 2019, additional short term growth is predicted as the town matures to provide a well-established service economy and vibrant place to live.
Kings Point, situated 0.2 miles to the east of Dukesbridge will soon be the latest new build development completed in the Town Centre and is widely anticipated to set a new headline capital value for town centre residential accommodation. The 17 storey scheme will provide 103 residential units with waterside retail/leisure amenities.
Further price growth is expected in the South East with research suggesting:
2018 – 1.5%
2019 – 2.0%
2020 – 4.0%
2021 – 5.5%
2022 – 5.0%
Aggregated 5 Year Growth Rate – 19.4%
Source: JLL
12 13
ASSET MANAGEMENT AND MAJOR DEVELOPMENT OPPORTUNITY
Dukesbridge provides an excellent opportunity to deliver new mixed use accommodation in a highly accessible town centre location, subject to the necessary consents. There is potential to deliver additional residential accommodation through the refurbishment and extension of the existing buildings or comprehensive redevelopment for a new build scheme.
CREATE architects have undertaken a detailed feasibility study of the site with regard to relevant planning policy and likely achievable massing on the site. Please refer to the Allsop Marketing Data Room for access to the full feasibility report.
Primarily, existing office accommodation provides immediate change of use potential to residential accommodation via the use of Permitted Development Rights (PDR). The site is located within a key town centre employment zone with excellent public transport infrastructure.
The investment offers the opportunity to obtain vacant possession and re-develop the property as the site has significant underlying residential potential to one of the following schemes:
Option One: Conversion of the current office accommodation to residential, subject to obtaining Permitted Development Rights (PDR). Extension of the existing buildings to provide additional residential accommodation, subject to necessary consents. It is anticipated that circa 63 units could be created.
Option Two: Comprehensive re-development of the site for a new build mixed use scheme, providing significant additional massing to the site and improved pedestrian and vehicular access.
There is also the potential to explore alternative uses on the site including hotel, care home or student accommodation.
Option Two: Proposed Site Plan Option Two: Proposed Massing Plan
CGI: For identification purposes only. CGI: For identification purposes only.
14 15
3
4
1
2
OPTION ONE
EXTENSION & CHANGE OF USE
PERMITTED DEVELOPMENT RIGHTSThe office accommodation provides a potential conversion opportunity under Permitted Development Rights (PDR), subject to all necessary consents. The property is not located within Article 2(5) Land and is not subject to an Article 4 notice, which would prevent PDR.
The existing office element of Dukesbridge Chambers and Dukesbridge House extends to 2,925.8 sq m (31,493 sq ft) NIA and has the potential to provide 63 flats in a highly accessible location. It is proposed that car parking could be offered to residents by way of existing surface level and basement spaces available on site.
EXTENSION OF EXISTING RESIDENTIAL
The existing residential is large by current standards. There is the opportunity to seek planning to create additional units by sub dividing the accommodation.
n EXTENSION 1 DUKESBRIDGE COURT
It is proposed to increase the height of the existing residential element of Dukesbridge Court by a single storey. The extension could provide up to 150 sq m (1,615 sq ft) GIA to provide an additional two residential dwellings, subject to all necessary consents.
n EXTENSION 2 DUKESBRIDGE HOUSE
The proposed extension would serve to increase the size of the uppermost third floor of the riverside element of Dukesbridge House. A modest extension, achieved under Permitted Development Rights (PDR) could achieve up to 40 sq m (430 sq ft) to provide a single additional residential dwelling.
n EXTENSION 3 DUKESBRIDGE HOUSE
The south-western element of the site is currently utilised as surface car parking accommodation and a sub-station. There is an opportunity to provide a three storey extension to the rear of Dukesbridge House comprising up to 450 sq m (4,845 sq ft) GIA to provide up to six residential dwellings, subject to all necessary consents.
n EXTENSION 4 DUKESBRIDGE HOUSE
It is proposed that a redevelopment of the front of Dukesbridge House, incorporating existing retail and residential accommodation could provide up to 10,000 sq m (10,765 sq ft), arranged over four storeys, A redevelopment may provide improved frontage and prominence from Dukesbridge House on to Duke Street, subject to vacant possession and necessary consents.
DUKES BRIDGEREADING
CGI: For identification purposes only.
14 15
KEY BENEFITS OF A COMPREHENSIVE REDEVELOPMENT
••• Opportunity to provide ‘best in class’ residential accommodation in the town centre
••• The site is situated in a prime and practical location within Reading Town Centre, an area which is witnessing substantial regeneration and investment
••• Evidence indicates the potential for significant short and medium term capital value growth, to be supported further by the provision of a premium product
••• New build development provides the ability to create a purposely designed scheme for the end residential customer combining efficiency and high standards of accommodation in comparison to change of use
••• The proposed scheme of 89 residential dwellings creates the necessary scale to maximise efficiencies throughout the development process
••• Current planning policy encourages the development of significant and residential accommodation in the Town Centre, Dukesbridge is exceptionally well-located to meet ever-growing demand
OPTION TWO
COMPREHENSIVE REDEVELOPMENT
CREATE architects have assessed the potential for a complete demolition of the entire site and the development of a new mixed use, development. A comprehensive redevelopment of Dukesbridge can deliver a quality product commanding premium capital values, subject to necessary consents.
The proposed scheme would potentially accommodate the following options incorporating 7,000 sq ft on ground floor commercial space:
••• RESIDENTIAL LED MIXED-USE: The site could potentially accommodate 89 residential units.
••• STUDENT ACCOMMODATION: On the assumption residential accommodation would total 4,850 sq m (52,300 sq ft), it is estimated the site could accommodate 135-160 units.
••• PRIVATE RENTED SECTOR: PRS dwellings are typically 10% smaller than nationally recognised space standards for residential. It is estimated the site could accommodate 100 units.
••• HOTEL: On the assumption a typical hotel room would comprise of 20 sq m (215 sq ft), it is estimated the site could accommodate 200 units with additional provision for bar and restaurant facilities.
CGI: For identification purposes only.
16 17
DUKES BRIDGEREADING
16 17
OFFICE OCCUPATIONAL MARKET
Reading Town Centre office take-up exceeded the long-term average in 2017 totalling over 350,000 sq ft. Grade A accommodation accounted for over 80% of take-up in 2017 and 98% in Q1 2018. Occupational demand is clearly focused on high quality accommodation amid a continued erosion of Grade B and tertiary accommodation to alternative uses.
Reading currently records the second highest availability rate in the Thames Valley, owing to a significant development pipeline of late. Net levels however decreased to 890,000 sq ft over the previous 12 months.
Over 76% of availability within the town centre is now Grade A following the completion of a number of recent developments including Thames Tower and The White Building. There is therefore an acute shortage of competing stock at present.
Given the existing demand/supply dynamics of the town centre office market, Reading is likely to witness further rental growth for Grade A core accommodation with headline rents set to rise from the existing levels to £39.50 psf by 2019.
INVESTMENT MARKET
The South East investment market continues to record strong levels of investment activity and interest form a wide demographic of purchaser, attracted to established locations including Reading.
Cross sector investment in Reading recorded an all-time high in 2018 totalling £854.64m across 26 transactions, reflecting a 25% increase on the previous year, significantly above the long term average. Over 75% of transactional volume was completed in the latter half of 2017 highlighting growing confidence in the South East market and Reading as a key regional economic hub.
Transactional volume has now doubled on the pre-recession peak as Reading is now well established as a compact service economy which is widely expected to continue to grow from strength to strength following the impending introduction of Crossrail.
18 19
DUKES BRIDGEREADING
18 19
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 04.18
PROPOSALWe are instructed to seek offers in excess of £11,800,000 (Eleven Million and Eight Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a low capital value of £222 psf, assuming standard purchasers costs.
Jeremy Hodgson020 7543 [email protected]
William Shoebotham020 7344 [email protected]
Tom Dales020 7543 [email protected]
Mark Dansky020 7543 [email protected]
Andrew Boyd020 7344 [email protected]
Victoria Barron020 7543 [email protected]
www.allsop.co.uk
CONTACTS
For further information or to make arrangements for viewing, please contact:
National Investment
Residential Investment and Development
EPCAll EPC’s are available in the Allsop Marketing Data Room.
VATThe property is elected for VAT and it is anticipated that the transaction will be treated as a Transfer of a Going Concern (TOGC).
DATA ROOM
For access to the Allsop Marketing Data Room, please use the following link:
https://datarooms.allsop.co.uk/register/dukesbridge
20 PB
DUKES BRIDGEREADING