ESPLANADE JERSEY. 37 Esplanade, St Helier, Jersey, JE2 3QE Prime Multi-Let Office Investment

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37 ESPLANADE JERSEY 37 Esplanade, St Helier, Jersey, JE2 3QE Prime Multi-Let Office Investment 37 ESPLANADE JERSEY PRIME, MULTI-LET OFFICE INVESTMENT LOCATED ON THE ISLAND OF JERSEY, IN THE HEART OF ST
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37 ESPLANADE JERSEY 37 Esplanade, St Helier, Jersey, JE2 3QE Prime Multi-Let Office Investment 37 ESPLANADE JERSEY PRIME, MULTI-LET OFFICE INVESTMENT LOCATED ON THE ISLAND OF JERSEY, IN THE HEART OF ST HELIER TOWN CENTRE 37 Esplanade, St Helier, Jersey, JE2 3QE 4 INVESTMENT SUMMARY Prime, multi-let office investment located on the Island of Jersey, in the heart of St Helier town centre. Jersey is the largest of the Channel Islands and is well served by regular flights to the UK and Europe, operated by British Airways, Easyjet and Flybe. Jersey s strong economy is dominated by the financial services sector, which attracts high profile occupiers to the Island. The subject property is situated in a prominent town centre location on The Esplanade, which is Jersey s premier office location. Modern Grade A office accommodation arranged over basement, ground and six upper floors, totalling 88,353 sq ft (8,208.3 sq m) NIA. Designed by the renowned practice of Ian Simpson Architects. Constructed in 2012 with a BREEAM Very Good rating. Multi-let to six high profile tenants, to including KPMG, PwC and Brevan Howard. Long unexpired lease term of 16.1 years to expiries and 10.8 years to breaks. Current passing rent of 3,035,647 per annum, equating to per sq ft on the office accommodation. Freehold. Three yearly upward only rent reviews with a number of fixed increases. SPV company available. Offers are sought in excess of 47,850,000 (Forty Seven Million Eight Hundred and Fifty Thousand Pounds), subject to contract and exclusive of GST (if applicable). A purchase at this level reflects a net initial yield of 6.25%, after the deduction of purchaser s costs of 1.50%, and a capital value of 542 per sq ft. 5 37 ESPLANADE JERSEY Outline for indicative purposes only. 6 Ipswich Oxford Cardiff Bristol London Mainland UK Canterbury Plémont Brighton Exeter St Mary A9 JERSEY A12 St Clair Bouley Bay A8 Rozel Manor A2 Le Pulente A13 St Aubin St Helier Grouville Le Hocq A4 Amiens Guernsey Le Havre Rouen Jersey Caen France Paris Maps not to scale. For indicative purposes only. LOCATION Jersey is the largest of the Channel Islands, situated 14 miles off the north west coast of France and 85 miles from the south coast of England. The Island is well served by sea and air links to both the UK and Europe. Jersey Airport is located 5 miles from St Helier and provides regular services to the UK, France and Switzerland. Journey times from London Gatwick and London City airports are 1 hour and 1 hour 15 minutes respectively. Ferry services from the UK to Jersey operate regularly, with a fastest journey time of 4 hours 30 minutes from Poole. The Island has a total population of approximately 102,700, which has increased by nearly 13% over the past 10 years. Forecasts indicate the population will rise to over 115,000 by Jersey is a Crown Dependency and is therefore self-governing and operates within its own financial and legal systems, with its own Courts of Law. Jersey s local economy revolves largely around the finance and professional advisory industries. 7 VICTORIA AVENUE Wes Par THE ECONOMY SITUATION Jersey is a renowned financial centre with a strong and prosperous economy. Financial services dominate the economy, employing nearly 30% of the population and contributing to more than 60% of GDP. As a result, there are 32 registered banks on the island. Total banking deposits on the island is estimated at 108 billion, with the net asset value of funds totalling approximately 220 billion, and the total value of funds under investment management standing at 22 billion. The Jersey Financial Services Commission is responsible for the regulation, supervision and, within its legal remit, the development of the financial services industry on the island. Further information is available at: Aside from financial services, the Island is reliant on tourism, which accounts for over 20% of GDP. The Island attracts over 700,000 visitors per annum, with the majority coming from the UK and mainland Europe. Commercial occupational rates are very low in Jersey at less than 2.00 per sq ft. Income Tax is levied at a flat rate of 20% and there is zero inheritance tax, capital gains tax and corporation tax. 37 Esplanade is located on the south coast of Jersey, in the heart of St Helier, the island s capital. St Helier is the financial centre of the Island with a majority of businesses locating there. The property fronts The Esplanade, Jersey s prime financial business district office location, with Payn Street running adjacent to the eastern side of the building. The Esplanade is home to a number of high profile financial institutions and professional advisors, to include HSBC, Citibank, Brewin Dolphin, Ogier and Royal Bank of Canada. 37 Esplanade is situated less than 200 metres from Liberty Wharf and Waterfront retail and leisure schemes, and is located in close proximity to the prime retail district of King Street and Queen Street. Jersey International Finance Centre is currently under construction, with UBS and BNP Paribas agreeing pre-lets. Maps not to scale. For indicative purposes only. R Wate 37 ESPLANADE JERSEY Jersey International Finance Centre Outline for indicative purposes only. 8 t k adisson Blu rfront Hotel People s Park ESPLANADE Westmount Road ST AUBIN S ROAD Lewis Street Les Jardins de la Mer Waterfront Retail and Leisure Seaton Place ESPLANADE Castle Street ELIZABETH PLACE Parade Gardens 37 ESPLANADE JERSEY Jersey Harbours Commercial Street Esplanade LA ROUTE DE LA LIBERATION New North Quay Dumaresq Street Broad Street Liberty Wharf Great Union Road Garden Lane Mulcaster Street New Street Don Street Jersey Museum & Art Gallery LA ROUTE DU FORT Victoria Street Stopford Road Vauxhall Street Fort Regent Regent Road La Chasse Beresford Street St Mark s Road Oxford Rd La Motte Street Green Street Charles Street St James Street Ann Street Don Road LaColomberie Tunnel Street Simon Place Pleasant Street St Saviour s Street Grosvenor St Clarence Road 9 Outline for indicative purposes only. 37 ESPLANADE JERSEY Royal Bank of Canada Deloitte 2 HSBC 3 Brewin Dolphin 4 Carey Olsen 5 Intertrust Ogiers 6 Citibank Aztec 7 Capita Jersey Financial Services Commission 8 S.G.Hambros 11 9 UBS BNP Paribas DESCRIPTION 37 Esplanade provides 88,353 sq ft (8,208.3 sq m) of Grade A office accommodation arranged over ground and six upper floors, with basement storage and parking. The property benefits from three ground floor entrances, one serving the upper floors, a separate entrance for PwC and another to the rear ground floor office suite off Payn Street. 37 Esplanade was constructed in 2012 and is one of the most advanced office buildings in Jersey. There are 44 secure car parking spaces in the basement, equating to a ratio of 1:2,008 sq ft. Internally, the property benefits from a Grade A specification throughout, including: Two pipe VRF air conditioning Suspended ceilings with LG7 compliant lighting Fully accessible raised floors Five 8 person passenger lifts Floor to ceiling height glazing BREEAM Very Good rating Male, female and disabled WC s with shower facilities on each floor 44 car parking spaces and 78 cycle bays 12 13 ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition), to provide the following net internal areas: Floor Tenant Net Internal Area Sq Ft Sq M Sixth Brevan Howard 11,788 1,095.1 Fifth Volaw 13,473 1,251.7 Part Fourth Volaw 6, Part Fourth Canaccord 6, Third First Names Group 13,470 1,251.4 Second KPMG 13,436 1,248.2 First PwC 12,855 1,194.3 Part Ground PwC 4, Rear Ground First Names Group 4, Basement Storage Total 88,353 8, 37 ESPLANADE JERSEY FLOOR PLANS Ground Floor Plan Typical Upper Floor Plan 15 TENURE TENANCIES The property is held freehold. The property is multi-let to six tenants with a weighted average unexpired term of 16.1 years to expiries and 10.8 years to breaks. The passing rent is 3,035,647 per annum, equating to per sq ft on the office accommodation. The leases are subject to 3 yearly open market reviews. Tenant Floor Area Current Rent Passing Rent Car Parking Spaces* (sq ft) (per annum) (per sq ft) Brevan Howard 6th 11, , Volaw 5th Part 4th 13,699 6, , , blocked** Canaccord Part 4th 6, , First Names Group 3rd 13, , Rear Ground 4, , KPMG 2nd Floor 13, , PwC 1st and Part Ground 17, , Total 88,353 3,035, As of November 2017 * 3,000 per car parking space COVENANTS Tenant s accounts can be made available to interested parties upon request. Volaw Group Services Limited 22% of annual income Volaw, which was established in 1982, provides fiduciary services, acting for individual, family, corporate and institutional clients. As at February 2015, the company was responsible for the administration of over 2,000 trusts, companies and partnerships which together held assets worth in excess of US$25 billion. Further information can be found at: First Names (Jersey) Limited 21% of annual income First Names Group is an independent provider of trust, real estate and corporate services operating globally. First Names (Jersey) Limited is a member of Nexia International, a worldwide network of independent accounting and consulting firms. Further information can be found at: PwC Properties (Jersey) Limited 20% of annual income PwC is a multinational professional services firm, with over 220,000 employees in 157 countries. The company was formed in 1998 by a merger between Coopers & Lybrand and Price Waterhouse and is headquartered in London. Within the Channel Islands, PwC focuses on assurance, tax and advisory services. Further information can be found at: 16 Lease Lease Break Next Rent Comments Start Expiry Option Review 01/11/ /10/ /10/ /11/ /09/ /09/ /09/ /09/ sq ft of basement storage. **Blocked car parking space at 1,750 05/11/ /11/ /11/2021 & 05/11/ sq ft of basement storage 04/11/ /11/ /11/ /11/ /11/2019 Rent Years 3& per sq ft. Rent Year per sq ft. 26 sq ft of basement storage 25/07/ /11/ /11/ /11/2019 Rent Years 3& per sq ft. Rent Year per sq ft 31/05/ /05/ /05/ /05/ sq ft of basement storage 30/11/ /11/ /11/ sq ft of basement storage KPMG Channel Islands Limited 15% of annual income KPMG was formed in 1987 and is one of the largest professional service companies, employing approximately 189,000 people worldwide. KPMG is a leading multinational audit, tax and advisory company. Within the Channel Islands, the company employs 275 members of staff. Further information can be found at: Brevan Howard Group Holdings Limited 14% of annual income Brevan Howard is a European hedge fund management company based in Jersey, managing significant institutional assets across a number of diversified strategies. The company was founded in 2002 and currently has approximately US$18 billion in assets under management. Brevan Howard has other offices in London, Geneva, New York, Hong Kong, Tel Aviv and Washington. Further information can be found at: Canaccord Genuity Group 8% of annual income Canaccord Genuity is a global investment banking and financial services company which specialises in wealth management and brokerage in capital markets. The company provides mergers and acquisitions, corporate finance, restructuring, debt advisory and strategic advice for corporate, government and private equity clients. Canaccord Genuity manage approximately 13.6 billion of assets on behalf of over 12,000 clients from offices in London, the Channel Islands and the Isle of Man. Further information can be found at: 17 JERSEY OCCUPATIONAL MARKET Jersey s total office stock is over 3 million sq ft, of which the majority is concentrated in St Helier. Demand for space within the prime business district has continued, with take up in 2016 exceeding the 5 year average of 100,000 sq ft. With a majority of developments agreeing pre-lets, few are speculatively developed, and the availability of Grade A office stock in Jersey is limited, resulting in continued rental growth in the short and medium term. Occupational demand remains strong and we anticipate further pre-lets being announced in Historically the island has had a very low vacancy rate and this currently stands at around 8.5%, the majority of which is functionally or locationally obsolete. Prime rents now stand in the region of per sq ft for 15 year lease terms, as demonstrated in the table below. The pre-letting at Jersey International Finance Centre is expected to achieve per sq ft. Date Property Area (sq ft) Tenant Lease Term (Break) Rent ( psf) Comment Nov-16 Building 5, Jersey International Finance Centre 35,000 Sanne 24 years (15 years) (anticipated) Pre-let signed November 2016 Nov-16 Gaspé House, Esplanade 88,000 Royal Bank of Canada 21 years (15 years) Pre-let signed July 2014 Nov-16 Gaspé House, Esplanade 10,700 Deloitte 9 years Pre-let signed July 2014 Jul Esplanade 29,600 JTC Group 15 years (anticipated) Pre-let signed July PC due in May 2017 May-15 Building 4, Jersey International Finance Centre 16,500 UBS Confidential (anticipated) Pre-let signed May PC due in May 2017 May-15 Building 4, Jersey International Finance Centre 24,000 BNP Paribas Confidential (anticipated) Pre-let signed May PC due in May 2017 Jersey s prime office market has witnessed considerable activity over the past few years. The Esplanade has become the location of choice for companies within the finance sector, which has resulted in significant development activity in recent years, to include: 44 Esplanade, 37 Esplanade, Gaspé House (66-72 Esplanade) and 27 Esplanade, all of which have attracted prelettings during construction. The development of the Jersey International Finance Centre (JIFC) by the Jersey Development Corporation is the first of the Masterplan for the JIFC extending to 600,000 sq ft of offices, 350 residential units, together with ancillary, retail, restaurants, leisure and parking, which will further enhance the immediate location. 18 JERSEY INESTMENT MARKET Jersey s office market has continued to perform well over the past year, as investors continue to be attracted by the strong investment fundamentals; good covenant strengths, appealing long lease structures, a stable economy, 3 yearly upwards only rent reviews and fixed rental uplifts. Jersey has attracted a range of institutional and international buyers, including Standard Life Investors, Valad Europe and Apache Capital. We have detailed some recent investment transactions in the Channel Islands below: Date Property Tenant (Term Certain) U/O 38/39 Esplanade, St Helier, Jersey Multi-let (10.0 years) Price NIY Purchaser Q m Q.6.60% Private Trust Sep-16 Liberation House and Windward House, Esplanade, St Helier, Jersey Multi-let (7.0 years) 34.00m 7.50% (SPV) Channel Island Property Fund Aug-16 13/14 Esplanade, St Helier, Jersey Appleby Global (17.5 years) 10.75m 6.75% Comprop Jul-15 Glategny Court, St Peter Port, Guernsey Multi-let (15.0 years) 44.00m 6.60% (SPV) Channel Island Property Fund Jun-15 Martello Court & Dorey Court, Admiral Park, St Peter Port, Guernsey Multi-let (10.0 years) 49.50m 7.00% (SPV) Brockton Capital Mar-15 Trafalgar Court, Admiral Park, St Peter Port, Guernsey Multi-let (12.0 years) 61.38m 6.50% (SPV) Stenprop 19 SERVICE CHARGE CONTACT DETAILS The service charge budget is for the year ending June 2017 is 236,160, equating to 2.69 per sq ft. For further information, or to arrange an inspection, please contact: GOODS AND SERVICES TAX (GST) VAT is not applicable in Jersey. Goods and Services Tax (GST) may be applicable. All figures quoted in this brochure are exclusive of GST and we would recommend that perspective purchasers make their own enquiries as to the liability. PROPOSAL Richard Merryweather Harry Kaye Margaret Street London W1G 0JD Tony Rowbotham Smith Street St Peter Port Guernsey GY1 2JQ Offers are sought in excess of 47,850,000 (Forty Seven Million Eight Hundred and Fifty Thousand Pounds), subject to contract and exclusive of GST. A purchase at this level reflects a net initial yield of 6.25% and a capital value of 542 per sq ft. IMPORTANT NOTICE Savills, their clients and any joint agents give notice that: 1.They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2.Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. Designed and Produced by Savills Marketing: February
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