Travelodge Aberdeen Airport, Burnside, Dyce
S2 Asset Management Limited has spent nearly two years persuading Aberdeen City Council to review it's planning policies in the existing Local Development Framework where the whole site is currently shown as being in the Greenbelt even though there are some existing brownfield uses such as a 40-room early 1990's styled Travelodge and a large beefeater designed restaurant that is linked to the hotel building. In September 2015, S2 and the external development team got the planning policies changed in the draft Local Development Framework to show the whole c. 3 acre site to be suitable for mixed-use development. This planning policy revision still needs to be formally approved by the planning committee in April 2016 and so far there has been no Council member objections. On Christmas Eve, 24th December 2015, S2 lodged 2 local planning applications to redevelop and maximise all the land to provide a 120-room modern replacement Travelodge hotel with bar and 78 cover Cafe, a separate funky styled stand-alone restaurant with views over the famous salmon fishing river Don and for demolition of the existing hotel and restaurant to provide up to 40 new residential units. These 2 validated planning applications are in the process of being determined by the planners and urban designer. S2 is confident of obtaining full detailed planning permission on both applications by end of April 2016.
The other important thing that S2 has achieved is to successfully negotiate with Travelodge on the pre-let of the new replacement hotel. Travelodge signed the missives on the 30th April 2015. Since then S2 has been working with the full external development project team to obtain the 2 planning approvals, to satisfy all of the site investigations and to proceed with the detailed design work to enable the contractor tender procurement process to begin. S2 hopes to have the appointment of the successful building contractor agreed within the next six months enabling a start on site to build out the replacement Travelodge hotel during the Autumn of 2016. On practical completion Travelodge are to decant out of the existing hotel and to enter into a new lease and take occupation of the new hotel. S2 can then look at building out the 40 new residential units and selling the apartments on the open market. While all of this is going on S2 has helped to repair the property following damage caused by Travellers and the existing restaurant has been partially refurbished in October 2015 and brought back into use and is now tenanted and trading as The Rai Spice.
S2 will have successfully increased the income by over 400% once the new hotel is built and Travelodge lease is completed.
Intershop House, Harrow on the Hill
Following the successful pre application planning consultation process with the London Borough of Harrow which S2 led, a full external development team has been appointed to make and submit a full planning application for demolition of the existing 1970's office building which is 24,000 Sq Ft gross and to redevelop the whole site over 8 floors to provide a new residential development of up to 62 new residential apartments with approximately 3,700 Sq Ft of flexible space on the ground floor with the potential of being used as either a doctors surgery or dentistry. The total height of the proposed new build scheme has been negotiated with the council and is estimated to be just over 90 metres high from ground level. This planning proposal once approved is going to significantly increase the gross square footage to 64,500 Sq Ft. The work that S2 has done has involved liaising with the planning case officer, lobbying the Harrow Ward Councillors and holding residents presentation exhibitions in order to obtain support for the new build proposals. This has involved the full coordination of the architects and external technical consultants in order to prepare the full planning application submission to include all supporting technical reports. The full detailed planning application submission was lodged with the London Borough of Harrow in September 2015. S2 is currently working very closely with the planners, urban designer and full development project team to obtain full planning permission by end of March 2016. A full viability assessment has been prepared and is currently under robust review by the local authority to reduce the amount of affordable housing on the site. The estimated GDV of the site will be in excess of £25m.
Argyle House, Northwood Hills
Over the past 6 years S2 has asset managed the 1960's built office building known as Argyle House which is 40,000 Sq Ft over 4 floors. The commercial property was 75% vacant when S2 first got involved. There has been a fairly continuous refurbishment and modernisation programme that has been implemented in phases over the last few years. The first, second and third floors have all been refurbished in order to sub divide the office space into smaller more manageable office suites and the corridors have made to look and be more uniform with each other. A new reception on the ground floor was one of the first things to have been implemented by S2 and this really started to attract perspective tenants into the building. Argyle House is now a multi-let building with over 42 tenants in occupation and on short term 5-year leases. There is now a very diverse range of business services being offered at Argyle House and then there is the more specialist services. S2 successfully obtained change of use planning permissions from B1 (offices) to D1 (medical) and D2 (leisure) facilities. These have been gradually implemented over the last 2 years. A new D1 dental surgery is located on ground floor, on part of the first floor there is a D1 private general practitioner, on parts of the second floor there is a D1 medical centre offering specialist medical services and a D2 leisure gym. More recently a programme of new M&E installation has been started in order to update the air conditioning and heating system. All this capex expenditure and implementation of the asset management options has significantly helped to increase the value of the property and Argyle House is now 100% occupied.
11 Upper Grosvenor Street, Mayfair, London
S2 Asset Management has over the last year or two been reviewing all of the options available to significantly enhance the value of 11 Upper Grosvenor Street which is within the Mayfair conservation area. S2's findings is that the existing 1830's building is not listed with either Westminster City Council or English Heritage. The best option available is to submit a planning application for the change of use from B1 (offices) to residential and obtain planning for a large single occupancy house. S2 has met with a few of the more specialist high end residential turnkey companies and interior designers who are highly experienced of the Central London market who have the best interior designers and the capability of producing a very high end residential house. The existing property has a gross internal floor area of 9,698 Sq Ft which includes going under the vaults to the front and back of the property and the existing lower ground floor through to the fourth floor.
Dawson House, Aldgate, London
Dawson House is located within the fringe area of the EC3 market on the eastern side of the City in an area popular with insurance companies and brokers. The property is located on the west side of Jewry Street approximately 50 meters south of its junction with Aldgate and is a few minutes walk away from the Lloyds Building, the London Underwriting Centre and 30 St Mary Axe. The property is held freehold and was independently valued in 2012 at £19.5m. The entire property was let to Miller Insurance Services Ltd (guaranteed by Miller Holdings Ltd) for a term of 35 years expiring December 2016, on a full repairing and insuring basis. During the spring of 2015, S2 negotiated a lease surrender premium effective 10th July 2015. While negotiating the surrender, S2 also secured One Avenue Business Centres Limited on a full repairing and insuring lease of the whole premises from 22nd July 2015 for a term of 20 years. The current value of the building is in excess of £35m.
Loch Lomond Shores, Ben Lomond Way, Balloch
Centric House, Moorfields, Liverpool
The freehold property is located in a central location to Moorfields underground railway station (previously Liverpool Exchange), between Dale Street and Tithebarn Street, and ten minutes walk from Liverpool Lime Street railway station. The building is in the heart of Liverpool’s financial and business district. The property consists of 28,411 sq ft over four floors with 19 basement car parking spaces. The building was single let to Barclays. We negotiated a surrender lease and explored various asset management options including residential conversion and hotel conversion. Barclays had carried out a lot of refurbishment and modernisation to high specifications, and we felt the most attractive asset management option was to market the building as a multi-let office. S2 and its agents are currently in lease negotiations to let out half of the space by beginning of July. There has been an increase in the level of interest in the office space with 20 viewings over the past month out of which 6 are in serious lease negotiations.