262 High Holborn Property (Research Paper Sample)

262 High Holborn Property PPT Outline
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262 High Holborn Property PPT Outline
Introduction to the Market
Midtown is one of the fastest evolving districts in London with a mixture of prestigious businesses such as finance, technology, legal, and media with historical sites, modern restaurants, bars, grand hospitality, as well as green open spaces. The rent starts from £62.50 - £70.00 per sqft (Carter Jonas, 2020). The area is buzzing with several visitors per day that visit the tourist attraction sites located in the region. In addition, Midtown has overtaken WestEnd in terms of overall economic contribution to the UK’s GDP. Therefore, the location is ideal for office space and investors looking to have solid investments with high potential for return on investment.
Introduction to the Asset
The 262 High Holborn is a magnificent contemporary office accommodation located in Midtown Holborn, London WC1V 7NA, UK (London Borough of Camden) (High Holborn, 2020). The architectural design of the modern classic property was handled by prominent architects Sheppard Robson. The total area of the ultra-modern appealing development 262 High Holborn has a total of 8 floors of 40,702 sq ft of retail, office, and ancillary accommodation in the bustling Midtown London (High Holborn, 2020). The office floors which have been beautifully designed to allow maximum lighting measures 35,321 sq ft, with each floor containing a maximum of 4,678 sq ft of premium office space (High Holborn, 2020). Additionally, 5,213 sq ft of modern retail, bar, and restaurant space is available on the basement and ground floor (High Holborn, 2020). The property is owned under a new lease (freehold) by the Lazari Developments Ltd a subsidiary of the Lazari family group of companies with interests across 7 estates in Central London. The proposed use of the facility is topnotch quality contemporary office accommodation.
Floor

Use

Sqft

Eighth (plus Terrace)

Office

2,914

Seventh (plus Terrace)

Office

3,517

Sixth

Office

4,676

Fifth

Office

4,678

Fourth

Office

4,625

Third

Office

4,637

Second

Office

4,631

First

Office

4,624

Ground

Reception
Retail
Ancillary

1,019
2,132
136

Basement

Retail

3,081

Sub-Basement

Ancillary

32

Subtotal office


35,321

Subtotal retail


5,213

Ancillary


168

Building Total


40,702

SWOT Analysis
Strength – Macroeconomy (London)
London’s GDP growth in the 2nd quarter of 2019 was 1.0% which is 4.5% increase compared with the same quarter of the previous year (ONS, 2020). The Covid19 pandemic impacted the employment rates in London with a slight decrease of 0.4% to 76.5% in June 2020 (ONS, 2020). The unemployed rate remained the same as 2019 at 4.6% and the economic dormancy increased by 0.4% to 19.7% within the same period (ONS, 2020). Demand of office space is predicted to slightly fall in 2020-2021 following the devastating impacts of the coronavirus global pandemic (Carter Jonas, 2020). However, London is traditionally associated with a constant demand for office space which is strength for the 262 High Holborn.
Strength- Midtown Market and Property Location
London’s central location (Midtown) is well connected with bustling economic activities. The borough boasts of both traditional as well as state of the art contemporary facilities that attract people from all sectors of the economy. The 262 High Holborn is located within a prestigious neighborhood that include Warner Bros, Saatchi, Mischon de Reya, Rosewood hotel, Hoxton hotel, the London School of Economics, and the British Museum (High Holborn, 2020). The Holborn and Chancery Lane underground stations are within a walking distance from the property. Moreover, the highly anticipated arrival of the Crossrail will service Midtown from the Tottenham Court Road and Farringdon (High Holborn, 2020). Moreover, in 2020, Midtown overtook the West End to be ranked the most important economic hub in London.
Strength – The Building
262 High Holborn is a magnificent property developed using modern cutting edge technology for a superior appealing contemporary marvel. The building is located behind a beautifully retained Portland stone façade. The floor to ceiling intelligent glass design delivers ample natural lighting creating nice working environment for company employees. In addition, the building has raised floors, high ceilings, open terraces, retail areas, bar and restaurant amenities, reception, as well as ancillary spaces for a truly satisfying working environment. The property is constructed using chilled beam air-conditioning to allow greater energy efficiency.
Weakness – Macroeconomy (London)
The Brexit coupled with the coronavirus pandemic has led to a decrease of 37% in investment in central London offices in 2020 compared to the same period in 2019 (Financial Times, 2020). Moreover, the Pound Sterling has not yet fully recovered from the shocks resulting from Brexit as well as cuts in interest rates.
Weakness - Midtown Transportation System
Midtown currently lacks a proper functioning transport system with overcrowding synonymous with the Holborn Underground station during rush hours in the morning and evening.
Weakness – The Building
Occupiers who might want to change from office use might require permission from the developers and freeholders. The design of the building focuses on several occupiers making the building lose its traditional architectural appeal.
Opportunity
The developers of 262 High Holborn property can make the building to be even more attractive by increasing its capacity to reduce annual carbon emissions. Moreover, London has maintained its traditional appeal as one of the top investment destinations in the world. The trends are expected to grow in the foreseeable future.
Threats
There is increased competition of clients following the recent rise of vacancies in Midtown occasioned by the coronavirus. Moreover, many businesses are adopting remote working policies which might further lead to low demand.
Assumptions and Methodology
Comparable-specific criteria
Only properties within 1-mile radius from 262 High Hilborn were included in the analysis for comparative purposes. The London Midtown / High Hilborn was assumed to form the Submarket. The transactional period was determined to be 2-3 years. The typical lot size (Net Internal Area) was set as close to the property under consideration as possible.
Comparable-evidence: Letting
Address

23-23A Great Queen St, London WC2B 5RG – Camden, London

16-118 Chancery Ln, London WC2A 1PP

39-40 Eagle St, London WC1R 4TH – Camden, London

7-8 Little Turnstile, London WC1V 7DX – Camden, London

Lease start date

27 September 2020

4 November 2020

12 November 2020

24 November 2020

CoStar Rating, 1-5

4

4

3

4

Floor Area (SQFT)

1,370 sq ft

15,102 sq ft

9120 sq ft.

1,622 sq ft

Achieved Rent £/SQFT

£912.41 per sq ft


£822.37 per sq ft.

£782.98 per sq ft

Comparable-evidence: Sale
Address

44 Bedford Row, London WC1

7-8 Little Turnstile, London WC1V 7DX – Camden, London

Lease start date

27 September 2020

24 November 2020

CoStar Rating, 1-5

4

4

Floor Area (SQFT)

2,539 sq.ft

1,622 sq ft

Price in GBP

£1,525,000

£1,270,000

Net Initial Yield

5.25%

5.37%

**Similarity Score 1-5

4

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