JLL Residential

St Dunstans House - Land Site Sales

St Dunstans Site Sales Case Study
Project: St Dunstan’s House, Fetter Lane, City of London EC4   
Client: Ministry of Justice (MOJ)
Date: 2010 -2012

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. 

St Dunstan’s House was a 53,339 sq ft office and court building off Fleet Street in the City of London that was due to be vacated by HM Courts and Tribunals Service (HMCTS) in 2012. The building was owned jointly between HMCTS and the Crown Estate (the Queen’s property company). HMCTS is responsible for the administration of the criminal, civil and family courts and tribunals in England and Wales. 
  
The office building which fronted the western side of Fetter Lane, has attractive gardens to the rear and is bordered to the north by the stunning neo-Gothic Grade II* listed Maughan Library

brief

  • To optimise the disposal receipts of the freehold interest in this 1970’s reinforced concrete building which was surplus to requirements and to fit in with the relocation to the new Rolls Building on Fetter Lane. 
  • To carry out 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 obtaining a detailed planning permission for the wholescale redevelopment of the site for residential use.  
  • To ensure public asset disposal procedures were strictly adhered to, and that the opportunity was fully and openly marketed.

outcome

  • JLL secured an excellent planning permission with the Local Planning Authority (City of London) which optimised the value of the asset.  
  • The planning permission was for a 76 private apartment scheme over ground plus 8 storeys, in a stone and copper clad building. The mix and layouts of the units were optimised for the market at that time, and to enable the highest £ per sq ft and sales rate, and ultimately the land value. 
  • Affordable housing was agreed via a payment in lieu agreed with the LPA. 
  • JLL devised a marketing campaign targeting key domestic and international developers interested in Central London residential development opportunities. 
  • We openly marketed the opportunity resulting in significant interest including 120 expressions of interest, 40 viewings, and 25 compliant bids. 
  • Unconditional sale terms were agreed with PLC house builder.
  • Contracts exchanged within 2 weeks of agreeing terms.
  • Sale price was agreed at £32m - 60% in excess of guide price.
  • The price equated to £650 per sq ft on the proposed building floor area, a record for the locality. 
  • Anti-embarrassment overage was agreed with the purchaser to protect our client’s position.