JLL Residential

Ashley House - Land Site Sales

Ashley House Site Sales Case Study
Project: Ashley House, 2 Monck Street, Westminster   
Client: Ministry of Justice (MOJ)
Date: 2012 -2014

situation

JLL were instructed by the MOJ to optimise the land value receipts for a number of the redundant court buildings and administrative offices around London.  The locations of these buildings were in areas of relatively high residential values. Ashley House was a 25,000 sq ft administrative office that was due to be vacated by HM Courts and Tribunals Service (HMCTS) in April 2014. HMCTS is responsible for the administration of the criminal, civil and family courts and tribunals in England and Wales.

brief

  • To dispose of the freehold interest in this 1980’s office building which was surplus to requirements .
  • To undertake the initial valuation and option report required including ascertaining vacant possession value, and the options open to the MOJ to optimise the price.
  • Implement the recommended option strategy, in this case establishing the key planning principles with the local planning authority (Westminster) in order to provide a level of certainty for potential bidders.
  • Maximise capital receipts
  • To ensure public asset disposal procedures were strictly adhered to, and that the opportunity was fully and openly marketed.

outcome

  • JLL secured a favourable pre-application letter with the Local Planning Authority in advance of marketing to de-risk the opportunity and increase bidding confidence.
  • JLL devised a bespoke marketing campaign targeting key developers interest in Central London office residential opportunities. 
  • Openly marketed the opportunity resulting in significant interest including 40 expressions of interest, 25 viewings, and 10 compliant bids. 
  • Unconditional sale terms were agreed with PLC housebuilder.
  • Contracts were exchanged within 1 month of marketing.
  • Sale price was agreed at £29.7m - 19% in excess of guide price.
  • The price equated to £1,188 per sq ft on the existing building area, a record for the locality. 
  • Anti-embarrassment overage was agreed with the purchaser to protect our client’s position.