Philips and Carolyn House
Croydon
Background
Close to East Croydon station the ownership comprised of two 1970s offices. Carolyn House extended to some 96,000sq ft over 16 floors with around 20 tenants. The smaller block, Philips House, (12,500 sq ft) was let to a single occupier, however offered a development opportunity. The property was purchased in a Joint Venture with bank debt.
Strategy
Two principal strategies were pursued to maximise the net income from Carolyn House, which is a large multi let office with Network Rail occupying one third of the space. Through refurbishment of suites and common areas of the building, the intent was to attract new tenants and retain existing occupiers. Philips House was an ideal location for a budget hotel, if vacant possession could be obtained along with planning and a pre let from a major occupier.
Outcome
We were successful in maintaining over 90% occupancy of the office and in particular,
securing the major tenant Network Rail on new leases and also retaining other key
tenants on lease expiry events.
Following the negotiation of vacant possession of Philips House, discussions commenced
with the Planning Authority and planning was negotiated for a 168 bedroom budget hotel
with restaurant. A pre let was also secured with Premier Inn for a long indexed linked
lease.
The decision was then made to sell the property and it was purchased by Peveril
Securities, a wholly owned subsidiary of Bowmer and Kirkland . Mayforth have been
retained to continue with the asset management strategy for Carolyn House, to maximise
the net income and development and manage the construction of the new Premier Inn which
is currently on site with completion due next summer.
