CBRE appointed to sell major Docklands development

By James Buckley - Wednesday, June 27, 2012 15:16

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CBRE has been appointed to sell 30 Marsh Wall in London’s Docklands, E14, in a move which could unlock a new 30-storey, 250,000 sq ft development, CoStar News can reveal.

The building was owned by Paul Kemsley’s Rock Investment before the company went into administration in 2009.

CBRE is selling the long leasehold interest in 30 Marsh Wall with 994 years unexpired at a peppercorn rent. The 59,414 sq ft building was built in the early 1990s and is 46% let to seven tenants, producing an annual gross rent of £353,222 pa, at an average office passing rent of £15.40 per sq ft.

However, vacant possession can be secured in April 2016, when a large scale residential, office and hotel redevelopment has been earmarked, particularly given the scope for other new schemes in the area. Offers are being sought on an unconditional basis.

CBRE has been instructed to sell 30 Marsh Wall on behalf of T. Perkin and T. Webb of CBRE Limited acting as joint fixed charge receivers.

Kemsley, who previously appeared on The Apprentice alongside Alan Sugar, founded Rock in 1995.

Under Kemsley’s ownership, a new scheme to replace 30 Marsh Wall was mooted, with the potential for the site to accommodate a 30-storey tower, comprising 250,000 sq ft of offices, residential space, and a 400-room hotel.

There is no planning permission currently in place for a redevelopment, but the potential for a major scheme is expected to be revisited by the building’s new owners.

Kemsley’s Rock Investment bought 30 Marsh Wall at the height of the property boom in 2007 for £20m from Richmount. However, the building is now expected to sell for around £10m, reflecting a capital value of circa £170 per sq ft.

The building sits next door to the City Pride pub site at 15 Marsh Wall, which is set for a 62-storey residential tower scheme after it was bought out of administration last November by Lebanese-backed Chalegrove. The building was previously owned by Irish property company Glenkerrin.

PwC was appointed as the administrator to Rock Investment in June 2009. However, 30 Marsh Wall was held in a subsidiary of Rock which PwC had no control over.

At that time Rock’s property assets included the former Burberry HQ on Haymarket, Selhurst Park football ground in London, as well as a number of assets in the US including offices on Fifth Avenue in New York. Kemsley had a £500m joint venture with Bank of Scotland and had bought a number of assets in the US during 2007 and 2008.

jbuckley@costar.co.uk

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