City Road, London EC1
Offers in excess of £13,000,000
The property is positioned within an island block bounded by City Road to the north, Goswell Road to the south, Wakley Street to the east and Hall Street to the west.The property’s location provides easy access to some of London’s most popular districts, including Angel and Finsbury to the north, Clerkenwell and Farringdon to the south, and Shoreditch and Hoxton to the east.
The property sits within the rapidly expanding “tech belt” formed by the exciting submarkets of Kings Cross, Farringdon, Clerkenwell and Old Street. The site has exceptional public transport links with Angel Underground Station (Northern Line) situated approximately 0.2 miles to the north west of the site, providing direct access into Bank in approximately 6 minutes and King’s Cross in approximately 7 minutes. Old Street Station (Northern Line and National Rail services) is situated 0.7 miles to the south east of the site.
The immediate surrounding area boasts a high level of amenities, with the vibrant Old Street area just 15 minutes’ walk away. In vicinity to the property, Islington High Street offers an eclectic assortment of retail, bars and other social amenities including the Sadler’s Wells Theatre, O2 Academy Islington, Almeida Theatre, Screen On The Green and Islington Central. This location has made it one of the most exciting and appealing locations in which to live, work and socialise.
The existing office building extends to approximately 18,281 sq.ft (NIA) and comprises three interconnected elements of varying heights; 7-8 Wakley Street is arranged over ground to 2nd floor, 328 City Road is arranged over ground to 5th floor and the central building is arranged over lower ground to 1st floor.
The building shares a predominantly brick facade, with part rendering, in keeping with the aesthetic of the neighbouring buildings.
No part of the property is listed, however 328 City Road sits within the Duncan Terrace / Colebrook Row Conservation Area.
Planning & Consented Scheme
The site has planning permission (application reference: p2018/0429/ful) granted for the demolition of the existing buildings and the erection of a mixed-use, commercial-led, redevelopment scheme that provides a total of 33,056 sq.ft (NIA) of office accommodation with a small proportion of basement space and 8 self-contained residential apartments providing a total of 4,908 sq.ft (NSA) of residential accommodation.
Consented Scheme – Central Mainblock
The residential block will be constructed on the Wakley Street frontage by way of a 5-storey infill extension. The residential element of the proposed development promises to deliver high quality accommodation whilst retaining the unique period features of the surrounding buildings, utilising materials that are sympathetic to the architecture of the surrounding area.
The accommodation will comprise of 5 x 1 bedroom units and 3 x 2 bedroom units, with all apartments being dual aspect and including private amenity space. There is a dedicated entrance lobby directly accessed from Wakley Street which allows access to the stair core, lift and bicycle storage.
The commercial element of the scheme is divided between two elements; a 5-storey (plus basement) block fronting City Road and a larger 5-storey block within the centre of the development.
The main access to the office space is provided from City Road with a secondary access on Wakley Street next to the residential entrance. The City Road block incorporates a reception and lobby area at ground floor, office space within the 1st to 4th floors and plant / bicycle storage within the basement.
The main block within the centre of the development will provide the bulk of the scheme’s office accommodation arranged over ground to 4th floors and benefits from approximately 3,272 sq.ft of external terrace space at ground, 2nd and 4th floors.
Refurbishment & Extension Potential
An architect feasibility study has found that the existing floor areas can be enhanced to provide an additional couple of floors (subject to planning consent agreed and permission granted). Potential for the net internal area to grow by increasing the current offering to incorporate a double layer of new accommodation. This provides an alternative business plan option to the demolition of the building for the prospective purchaser.
The plans are only indicative at this stage but provided on the right is an approximate indication of how a potential refurbishment and extension scheme could increase the net area.
S106 & CIL Contributions
The Section 106 Agreement is due to be completed and signed imminently, and we detail proposed contributions and obligations as follows
- Affordable Housing: £60,000 per unit (£480,000)
- Employment & Training: £18,430
- Carbon Offset: £70,958
- Parking: £8,000
- Construction & Design Management: £2,072 (tbc)
- Provision of two 710 sq.ft micro workspace units which would be offered at a maximum of 50% of market rent for a period of 7 years and 6 months and would be permanently retained as micro workspace units thereafter
- Crossrail deductions (£178,000)
- £450,000 (incorporates the above)
All planning documentation including the approved drawings, associated reports / assessments, Section 106 Agreement and Committee Report can be viewed in the dataroom.
Total planning gain payments: £1,029,460.
Residential Market Commentary
The site falls within the northern sector of London’s mid city region which is the central residential location sitting between the West End, the City, South Bank and Kings Cross. The area is quickly becoming a focal point for residential development, with the eight largest schemes that are currently under construction or in the pipeline, delivering over 2,000 private units.
Due to the area’s close proximity to the technology, media, legal and financial hubs there is a wealth of economic diversity, with large numbers of home-owners and renters working in these core markets. This area is also home to three of the UK’s top ten-ranked universities and there is strong demand from an international student population.
Average residential property values in Mid City have outperformed prime central London in the last three years, with average resale prices climbing 121% since 2007. Forecasts predict a price growth of around 13% between 2018 and 2022.
Shoreditch & Clerkenwell take-up totalled 257,999 sq.ft in the second quarter of 2018, 15% above the 225,000 sq.ft recorded in the first quarter of 2018. Demand levels are now 12% above the long-term average.
The property sits on the boundary of a number of submarkets such as Kings Cross, Farringdon and Clerkenwell all of which have seen profound rental growth in recent years.
Total active demand in the wider City market increased by 7% quarter-on-quarter from 4.3 m sq.ft in Q1 to 4.6 m sq.ft in Q2. Levels are now 12% above the long-term average of 4.1 m sq.ft.
Demand for investment opportunities in these locations continues to outstrip supply. The examples below outline some recent investment deals where in some cases, capital values have been way in excess of £750 per sq.ft. Most recently in excess of £1,000 per sq.ft at the adjacent property, 2 Wakley Street.
The majority of the site is held freehold (Title Number NGL390257).
A small proportion of 11-13 Wakley Street is held Leasehold (Title Number NGL390258) at basement and ground only for a term of 99 years from 7th January 1981 at a peppercorn rent. This has been outlined blue below.
The consented scheme is within the Freehold demise only.
Vacant Possession on completion.
The property is not elected for VAT.
Further information including planning and legal documents are available within our dataroom using the access code ‘City’.
The property has an EPC rating of ‘C’ (66). A copy of the EPC is available on request/available in the dataroom.
An interactive video (will be available for viewing in the data room) has been prepared by Emperor vision, which not only offers an outstanding view of the surrounding area, highlighting the sites proximity to the City, Farringdon, Clerkenwell and Old Street, but also clearly illustrates how the proposed development will sit within this unique location.
Offers invited in excess of £13,000,000 (thirteen million pounds) which reflects a low capital value of £711 / sq.ft on the existing NIA and £342 / sq.ft on the consented scheme.
Disclaimer - Kingsbury on its own behalf and on behalf of the Owner / Landlord of this property whose agent Kingsbury is, gives notice that this document does not constitute any form of contract for sale or lease. Statements should not be relied upon, and interested parties are advised to satisfy themselves as to the correctness of each statement. Kingsbury is the trading name of Kingsbury Investment & Development Consultants Ltd registered in England No: 06869268.
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- Freehold office building currently comprising approximately 22,364 sq.ft (GIA) over ground, 1st, 2nd, 3rd and 4th floors
- Planning permission granted for a new build development totalling 37,606 sq.ft (NIA), comprising 32,699 sq.ft (NIA) of office space and 4,907 sq.ft (NSA) of residential accommodation across 8 units
- Located within a vibrant and exciting ‘tech belt’, 400 metres south of Angel Underground Station (proposed for Crossrail 2) with a unique offering of leisure, retail and social opportunities
- Offers invited in excess of £13,000,000 which reflects a low capital value of £581 / sq.ft on the existing GIA and £345 / sq.ft on the consented scheme, subject to contract
To discuss this opportunity further, please contact Keir Goldstein or Ross Kemp at Kingsbury on 020 7183 2529 or Andrew Harrison, Ollie Thornton or Ellie Cunningham at Knight Frank on 020 7861 1333