585-589 Old Kent Road, London

585 – 589 Old Kent Road London, SE15

Major Mixed Use Development Opportunity

585-589 Old Kent Road is located in the heart of one of the most important regeneration areas in London to be delivered in the next decade

2

Executive Summary.

• Freehold development opportunity located within the Old Kent Road Opportunity Area.

• Short term income of £514,100 per annum with lease expiry in June 2022.

• Property extends to 0.55 ha (1.36 acres).

• Old Kent Road Area Action Plan identifies the site as being suitable for high density residential led tall buildings, specifically outlining one tower to be over 30 storeys.

• Positive Pre-Application discussions with London Borough of Southwark supports a high density residential led mixed use scheme with a policy compliant affordable housing provision of 35%.

• Opportunity for the purchaser to pursue their own planning application for the site.

• Access to London Bridge and Southbank via nearby South Bermondsey Station.

• Old Kent Road Opportunity Area to benefit from proposed Bakerloo Line Extension, planned to deliver two new underground stations on Old Kent Road by 2028.

• Offers invited on an unconditional basis.

3

The Shard

20 Fenchurch

Tower Bridge

St Katharine Docks

Bermondsey

585 – 589 Old Kent Road

Old Kent Road

4

River Thames

Southwark Park

5

Location.

585-589 Old Kent Road is located in the London Borough of Southwark, approximately 1.75 miles South of London Bridge and the thriving Southbank.

One of the core deliverables in the plan is the construction of the London Underground Bakerloo Line Extension, that will see the delivery of two new underground stations on Old Kent Road, dramatically improving accessibility to public transport.

585-589 Old Kent Road can be found on the north side of Old Kent Road at its junction with Rotherhithe New Road and is situated in the heart of the Old Kent Road Opportunity Area.

585-589 Old Kent Road is in the Southern section of the area action plan, whose proposals also include a new linear park that will connect the Opportunity Area with Burgess Park to the East.

Proposals set out in the Old Kent Road Area Action Plan seek to deliver 10,000 new jobs and 20,000 new homes over the course of the next 10 - 20 years.

Southwark has a rich cultural offering with Borough Market, Bankside and the Tate Modern all within its borders

Journey times fr Bermondsey Sta

National Rail Overground Bakerloo Line Bakerloo Line Exten Jubilee Line Northern Line Bus Routes

Journey times from South Bermondsey Station National Rail Overground Bakerloo Line Bakerloo Line Extension Jubilee Line Northern Line Bus Routes

S H O R E D I T C H

Shoreditch High Street

Tottenham Court Road

Oxford Circus

Whitechapel

C O V E N T G A R D E N

S O H O

Leicester Square

W H I T E C H A P E L

Bank

C I T Y

M A Y F A I R S H O R E D I T C H

Green Park Tottenham Westminster Court Road

xford rcus

Whitechapel

Waterloo

C O V E N T G A R D E N

S O H O

W A P P I N G

Shoreditch High Street London Bridge

S O U T H B A N K

W E S T M I NLeicester S T E R

W H I T E C H A P E L

Bank

S O U T H W A R K

Canada Water

Elephant & Castle

F A I R

T M I N S T E R

D

Waterloo

Proposed new Bakerloo line Station 1

K

E

N

T

R

O L

L A M B E T H

D

K

E

N

6 T

C A N A R Y W H A R F

Surrey Quays

South Bermondsey

O

R O T H E R H I T H E A

D Bermondsey

Proposed New Bermondsey Station

S O U T H W A R K

Elephant & Castle

Maps not to scale.

For illustrative purposes only.

W A Old P P Kent I N Road G

L

London Bridge

Westminster

585 – 589

O

L A M B E T H S O U T H B A N K

Green Park

Canary Wharf

Bermondsey

C I T Y

Square

R O T H E R H I T H E

Canada Water Proposed new Bakerloo line Surrey Quays Station 2 Proposed new Bakerloo line Station 3 South Bermondsey

Canary Wharf G R E E N W I C H C A N A R Y W H A R F

New Cross Gate

• A National Rail Station at South Bermondsey is approximately 800m to the North East of the property and offers services to London Bridge every 14 minutes with a journey time of 7 minutes.

• As part of the neighbouring New Bermondsey regeneration around Millwall FC, a new overground station is proposed to the east of the property.

• The Old Kent Road (A2) itself is a major bus route with numerous services giving access to central London to the North and the remainder of South London and the M25 to the south.

• The Bakerloo line extension >

Proposals to extend the Bakerloo Line of the London Underground network are currently at consultation stage and when confirmed will result in four new stations being delivered, including two on Old Kent Road. Station 1 to serve the North sector of the Area Action Plan and Station 2 to serve the South.

>

TfL have recently announced that plans for the Old Kent Road Station 1 are focussed on a site on Dunton Road and for Station 2 on the former Toys “R” Us site near the junction of Asylum Road. Work continues to develop these schemes with a further round of consultation to commence in 2019.

> At present the timeline for delivery is 2028/29 with construction to commence in 2023.

LYNTON

OL D

N TO LYN

ST JAMES’S ROAD

ROLL

ROAD

S RO AD

KE NT R

AD RO

ER TH RO

TH HI

EN

OA D

585 – 589

(A

2)

GLE

OL D

PAR K

AD LL RO

ROA D

N GA

VE TRAFALGAR A

Leyton Square Recreation Ground

KE NT

RO AD

ILDERTON ROAD

Proposed Bakerloo Line Extension Station 2

Burgess Park

Old Kent Road

(A 2)

NU E

Bird in Bush Park

7

10

to London Bridge from South Bermondsey station

from Elephant & Castle to Oxford Circus

mins

EW

SOUTH BERMONDSEY

AD RO

VERNEY ROAD

AM

nsion

• At present, the property is accessible to central London, via a variety of modes of public transport.

PEC KH

rom South ation

Connectivity.

mins

17

£3.5

from South Bermondsey station to London Waterloo

proposed Bakerloo line extension to commence 2023

mins

7

bn

Old Kent Road Opportunity Area.

The Greater London Authority (GLA) has identified Old Kent Road as one of three opportunity areas in Southwark, the others being Elephant & Castle and Canada Water.

The Old Kent Road Area Action Plan (AAP) is the key policy document setting out the vision for the area. Consultation on a further draft of the OKR AAP has now concluded. The submission version will be prepared for early 2019.

The AAP’s policies will act as a guide to landowners and developers on how they can deliver urgently needed housing and jobs through a number of location specific sub areas within the opportunity area.

There are five proposed sub areas with each having its own indicative Masterplan proposals that provide guidance on the nature, type and quantum of housing and employment each area is capable of supporting.

The key deliverables for the AAP are summarised below;

• The building of 20,000 new homes, of which 7,000 are to be affordable • Employment space that will deliver 10,000 new jobs across a wide cross section of uses • 2 new underground stations as part of the Bakerloo Line Extension • The creation of three new parks, including a linear park running along the course of the old Surrey Canal • Major expansion of school places, including a new further education college, a secondary school and 2 new primary schools, as well as extensions of existing schools facilities • A new “town centre” that will offer a range of national retailing, independent shops and a suitable range of leisure and entertainment facilities • A new community health centre 8

Old Kent Road Area Action Plan – Sub Area 3

OKR13

585 – 589 Old Kent Road

Proposed Bakerloo Line Extension Station 2

10,000 new jobs created

New parks & green spaces

2 new underground stations

9

20,000 new homes planned

Description.

• At present the property extends to 0.55 ha (1.36 acres). A site plan with the extent of the property is set out below.

• As existing, the property is a 1990’s, single storey plus mezzanine, retail warehouse unit with associated surface parking spaces.

• At present the area is predominantly retail warehousing or industrial, however a new build residential led mixed use scheme on neighbouring Verney Road has set the future tone for the area.

• The property and the immediate surrounding areas do not lie within a Conservation Area and the existing property is not Listed.

• The site is not designated as Strategic Industrial Land (SIL).

6

CR

1 to 20

Hepburn House

5

39

N

2.5m

5

1 to 84

Chancellor House

The City Of London Academy

2.3m

El Sub Sta

ST

JAM

ES'S

STREET LOVEGROVE

RO A D

2.6m

nst & Wa rd Bdy

3.4m

Boro Co

TR

OA D

2 1

CA N

AL

59 1

4.3m

Civic Centre and Library

20m Western

0

10m

30m

This plan is published for convenience of identification. Any site boundaries shown are indicative only and should be checked against Title Deeds.

1 to 12

61

El Sub Sta

0m

61 4

EN

Warehouse

3.8m

10

Tenure.

The property is freehold (Title No TGL103698) and is subject to a single lease to DSG Retail Limited.

A summary of the existing lease is set out below.

• Current lease term of 20 years from 24th June 2002, expiring 23rd June 2022.

• Current passing rent of £514,100 pa.

• The 2017 rent review is still outstanding.

• The lease is inside Part II of the Landlord and Tenant Act 1954.

• Current rateable value of the property is £382,914.

11

Planning.

Overview of the Site and Old Kent Road The Site currently comprises a modern retail warehouse unit (use class A1) currently occupied by Currys PC World with associated car parking.

The Site occupies a prominent location within the core of the Old Kent Road Opportunity Area and within the new Major Town Centre. It fronts onto Old Kent Road close to a key crossing point where the proposed new Surrey Canal Linear Park and Rotherhithe New Road meets the Old Kent Road.

AAP Requirements The Site falls within Sub Area 3: Sandgate Street, Verney Road and Old Kent Road and the wider Draft Allocation OKR13.

The specific AAP requirements set out for the Site within OKR 13 are: • Provide housing; • Replace existing retail space (A class use); • Activate frontages on Old Kent Road through provision of retail (A use class), business (B use class) or community uses (D use class); • Provide a new park on the alignment of the former Surrey Canal.

Within the tall buildings strategy in the AAP a Tier 1 tall building is identified for the Site (above 30 storeys) on the Old Kent Road frontage; and a Tier 2 tall building (up to 25 storeys) is also shown to the rear of the Site on Rotherhithe New Road.

LB Southwark’s policy on Affordable Housing is 35% with a 70/30 split between social rent (70%) and intermediate (30%). It is calculated by Habitable Rooms and LB Southwark Officers have made clear that this requirement must be met.

12

Pre-Application Scheme The vendor appointed Assael Architects to develop a scheme for the site. The proposals have evolved through a number of meetings with LB Southwark’s Old Kent Road team. A formal pre-application meeting was held on 27th November 2017. The proposals tabled comprised: • Buildings of 40 and 22 storeys; • Full re-provision of existing retail space (1,327 sq m); • 511 residential units; • 35% Affordable Housing in line with LB Southwark’s policy;

• Linear Park through the centre of the Site;* • Access via Canal Grove and Verney Road; • No basement.

Pre-Application Feedback LB Southwark Officers responded positively to the proposals with support for the principle of redevelopment and the mix of uses: • The tallest building at 40 storeys was supported. It was considered that the secondary block should be reduced from 22 to 15 storeys; • The mix of commercial and residential uses proposed would be acceptable in principle subject to re-provision of retail floorspace; • Affordable Housing would need to be 35% with 70% as social rent and 30% as intermediate homes (calculated by habitable rooms); • The potential for PRS housing was supported assuming the proposals are in line with emerging policy P4 of the New Southwark Plan; • A basement would be required with a single point of access and egress via Verney Road; • The width of the Linear Park should be a minimum of 25m with active frontages onto the Linear Park.*

Pre-Application Response Scheme A subsequent meeting took place with LB Southwark Officers in March 2018. Revised plans were tabled with all of the feedback from the initial pre-application meeting detailing a scheme of 568 units within a 40 and 21 storey scheme.

Following this meeting a further scheme was devised, reducing the height of the residential towers to 30 and 15 storeys, which delivers 452 units. This pre application response scheme is just one interpretation of what could be supported on the site. It is clear from planning submissions and approvals on other neighbouring sites that height and density in this location can vary considerably. However, this site provides the opportunity for a developer to pursue their own planning application.

A summary of the pre-application response scheme is summarised below.

• 452 units; • Buildings of 30 and 15 storeys; • Full re-provision of existing retail space; • 35% Affordable Housing in line with LB Southwark’s policy; • Linear Park through the Centre of the Site with varying widths;* • Basement access via Verney Road; • A full overview of the planning position and discussions with LB Southwark is

provided within CBRE Planning’s report within the data room.

*Latest information from LB Southwark is that an alternative solution to deliver the Linear Park is being considered, by following the existing route of Verney Road, just to the north of the site.

13

PreApplication Scheme

40

22

9 9

Not to scale.

For illustrative purposes only.

Summary Schedule of Accommodation

Use Units Hab GEA GEA GIA GIA NIA NIA

Rooms (sq m) (Sq ft) (Sq m) (Sq ft) (Sq m) (Sq ft) Private 329 861 Residential Affordable 182 Residential

483

28,599 307,841 26,738 287,810 21,272 230,457 16,313 175,590

15,215 163,772

12,150 130,782

Commercial - - 1,431 15,399 1,327 14,284 - Ancillary / N/A - 2,260 24,322 2,181 23,481 - Parking Total

511

1,344 48,603 523,152 45,461 489,347 33,422 361,239

14

PreApplication Response Scheme

30

9

15

10

Summary Schedule of Accommodation

Use Units Hab GEA GEA GIA GIA NIA NIA

Rooms (sq m) (Sq ft) (Sq m) (Sq ft) (Sq m) (Sq ft) Private Residential

288 741

Affordable 164 Residential

394

27,994 301,365 25,929 279,136 20,447 220,093 12,935 139,236

12,048 129,689

9,723 104,660

Commercial - - 1,882 20,262 1,607 17,298 - Ancillary / N/A - 4,140 44,560 3,909 42,074 - Parking Total

452 1,135 46,951 505,423 43,493 468,198 30,170 324,753

15

Development Pipeline At this early stage of the development lifecycle, there have been a limited number of schemes completed within the AAP. At present there are a large number of consented schemes or sites where applications are currently being considered. The map below and table overleaf summarise the current status of these sites with the AAP.

585 – 589 Old Kent Road

G R EA

E

R

5

R

TR

G

EE

B

S

D

T

ER

ER

A

O

W

D

V

ID

T

O

TO

SOUTHWARK PA R K O

LD

K

EN

16

T

R O

A

D

6

12

O

LD

KE

NT

RO

3

2

AD

11

1

10 9

AD

7

16

13 N ROAD

4 20 15

TO

8

14

ER

RK

RO

AD

17

ILD

18 BURGESS PA R K

19

PA

RO

AM

Y

KH

AL

N BA

PEC

NEW KENT ROAD

No Scheme Name

Status

Developer

Total Units Private

1

Bermondsey Works

Completed

Telford Homes

158

147

2

Bath House

Completed

Higgins Homes

43

27

3

Chevron Apartments

Completed

Westhill Land and Property

34

34

4

634-636 Old Kent Road

Consented

Hexagon Housing

42

42

5

Rich Industrial Estate

Consented

London Square

406

271

6

Aylesbury Estate Masterplan

Consented

Notting Hill Housing

2,745

1,349

7

180 Ilderton Road

Consented

Twenty Twenty Capital

84

61

8

Nyes Wharf

Resolution to Grant Consent* Peabody

153

99

9

Avanton Ruby Triangle

Resolution to Grant Consent* Avanton

10

62 Hatcham Road

Resolution to Grant Consent* Aitch Group

11

6-12 Verney Road

Application Submitted

12

Bermondsey Service Station

13

1,165

778

86

58

CB Acquisition LDN

340

224

Application Submitted

Tide Construction Ltd

250 **

250

Iberia House

Application Submitted

Regent Land & Development

34

21

14

78 - 94 Ormside Road

Application Submitted

Musco (Clapham) Ltd

56

36

15

313 - 349 Ilderton Road

Application Submitted

Aitch Group

130

84

16

25 Mandela Way

Application Submitted

Firmdale

231

150

17

Polymex House

Application Submitted

Twenty Twenty Capital

181

118

18

Malt Street

Application Submitted

Berkeley Homes

1,050

840

19

Cantium Retail Park

Application Submitted

Aviva/Galliard

1,113

750

20

685-695 Old Kent Road

Application Submitted

Acorn Group

107

107

*(S106 not signed) **Student housing

House prices in the London Borough of Southwark were 78% higher in 2018 than 2008, compared to 62% in wider London 17

585 – 589 Old Kent Road

The Old Kent Road AAP includes doubling the number of jobs, revitalising the high street shopping facilities and providing new parks and open green space 18

The Proposal.

Offers.

Offers are sought on an unconditional basis for the freehold interest in the property.

VAT. The Property has been elected for VAT.

 

Further Information.

Viewings.

Site viewings are to be arranged by appointment only.

Interested parties should contact either agent at CBRE to arrange access.

Data Room.

Further detailed information on the opportunity can be found in an online data room at

www.585okr.co.uk

Contact.

Kamil Chowdhury kamil.chowdhury@cbre.com 020 7182 3106

Aaron Moles aaron.moles@cbre.com 020 3257 6558

19

DISCLAIMER: CBRE Limited on their behalf and for the Vendors or Lessors of this property whose Agents they are, give notice that: 1. These particulars are set out as a general outline only for guidance to intending Purchasers or Lessees, and do not constitute any part of an offer or contract.

2. Whilst CBRE Limited uses reasonable endeavours to ensure that the information in these particulars is materially correct, any intending Purchasers, Lessees or Third Parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection, searches, enquiries, surveys or otherwise as to their accuracy. CBRE Limited as such cannot be held responsible for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss of profits resulting from direct or indirect actions based upon the content of these particulars.

3. No person in the employment of CBRE Limited has any authority to make any representation or warranty whatsoever in relation to this property.

4. Unless otherwise stated, all purchase prices and rents are correct at the date of publication and, unless otherwise stated, are quoted exclusive of VAT. Lease details and service ground rent (where applicable) are given as a guide only and should be checked and confirmed by your solicitor prior to exchange of contracts. Designed and produced by www.tlgd.co.uk December 2018