Market Report: Drury House

MARKET REPORT: DRURY HOUSE
MARKET REPORT: DRURY HOUSE

MARKET REPORT: DRURY HOUSE
Executive Summary
The Property
Address - Drury House, 34-43 Russell Street, Covent Garden, London, WC2
Main Use - Office
Valuation Date1 November 2018
Tenure- Freehold
Total Income- 2,040,460 pounds per annum
Market Value- 42,250,000 pounds
Yield Profit- 4.52%
SWOT Analysis
S - It is a multi-let property.
W- Office rent including the top-ups of vendor rental is low passing.
O- The 2021 block date of office gives an option for refurbishing
T- A decline in the renting of offices after Brexit is a significant issue.
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MARKET REPORT: DRURY HOUSE
Table of Contents
The Property....................................................................................................................................1
Valuation..........................................................................................................................................3
Scope of Work.................................................................................................................................3
Assumptions....................................................................................................................................6
Property Description........................................................................................................................7
Market Report................................................................................................................................11
Market Description........................................................................................................................11
Valuation........................................................................................................................................13
Pro-Active Management................................................................................................................13
Valuation Commentary..................................................................................................................13
Reference List................................................................................................................................14
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MARKET REPORT: DRURY HOUSE
Valuation
Valuation Report
The building in question, a registered and qualified RICS surveyor to understand the authenticity
of the claims made by the owners has valued Drury House. Freya Group is supposed to fund the
property, and they can go as high as 40 million pounds in any commercial property in the United
Kingdom, given that the location of the property is vital for the commercial development of the
group involved in the investment (Wang and Xie, 2015).
The purpose of the company to involve in the valuation of Drury House is to purchase a freehold
interest and invest in the multi-let building that the property is offering. The building is a mixed-
use property and simultaneously lets three tenants on different floors.
The value of the property is based on the market value that has been deduced, and it is at forty-
two million two hundred and fifty thousand pounds that depends on the type of contract that is
made and is inclusive of the VAT (Kopczuk and Munroe, 2015). The valuation date is on 1
November 2018, and the valuation is made by different assumptions, which might affect the
rating if the values assumed are wrong.
The property is as stated a multi-let building that allows offices, bakeries, as well as restaurants,
to work under the same roof but there are certain restrictions like the use of the valuation done by
any client exclusively as has been stated in the purpose.
The valuation of the property that is being used for a specific purpose may not be published
without the approval of the client or the owner. However, the strength of the building, Drury
House lies in the fact that the tenants of the building have no personal or professional conflict of
interest with one another or with the owner of the property (Small et al. 2016).
The valuation has been done according to the standards set by RICS Valuation - Global
Standards 2017 (“The Red Book”).
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