Initial RunningArtwork /Order 18.05.15 / 18.05.15

Prime Mixed Use Investment / Refurbishment / Development Opportunity INVESTMENT SUMMARY 2

THE PROPERTY INVESTMENT SUMMARY

Location Tenancies The property is situated in Soho, one of the principal commercial Total passing rent of £890,236 per annum. The offices are multi-let sub-markets within London’s West End. The area has seen a to five tenants on leases with expiries or landlord’s break options to considerable transformation over the last decade with a more obtain vacant possession in December 2015. The seventh floor is corporate occupier base being attracted by the vibrant social currently vacant. The current passing rent is £522,736 per annum, scene and competitive rents. reflecting an average overall rental level of only £26.10 per sq ft. The retail/A3 units are multi-let and produce a total income of £367,500 per annum with rents ranging from c. £60.00 ZA to £166 ZA. The Situation leases have expiries ranging between July 2015 and August 2018 although vacant possession can be gained by December 2015. 37-38 Golden Square is prominently located on the northern side of the Square at its junction with Upper James Street and Beak Street and lies just to the south of the world renowned . The location is served by excellent transport Investment Rationale communications with Oxford Circus (Bakerloo, Victoria and – Good quality mixed use building in a prime Soho location Central lines), Tottenham Court Road (Central and Northern lines) – Triple aspect offices and seven retail/ A3 units of which and (Bakerloo and Piccadilly lines) underground two benefit from return frontages to Golden Square and stations within close proximity. It is also a short walk to the new Beak Street Crossrail Station being built at the end of Hollen Street. – Multi-let to good covenants – Full vacant possession of the offices and the retail/ A3 Description units can be obtained by the end of December 2015 – Planning consent to convert the offices to 22 residential The property comprises a mixed use office, retail and restaurant apartments with the addition of two floors building totalling 2,615.2 sq m (28,152 sq ft) arranged over lower – Potential to increase the office floor area, re-gear existing ground, ground and seven upper floors. leases, or change use to a boutique hotel, subject to the necessary consents The self-contained offices are arranged over first to seventh floors with a total net internal area of 1,919.5 sq m (20,663 sq ft). The – Highly reversionary current specification includes comfort cooling, two automatic passenger lifts, commissionaire, suspended ceilings, perimeter trunking and excellent natural light. The seven lower ground and ground floor retail/A3 units total 657.9 sq m (7,082 sq ft). Proposal Offers are sought in excess of £35,000,000 (Thirty Five Million Pounds), subject to contract and exclusive of VAT, Tenure reflecting acapital value of £1,243 per sq ft assuming full purchaser’s costs of 5.8% Part freehold and part virtual freehold.

INVESTMENT SUMMARY 3

INVESTMENT SUMMARY ST JAMES’S PICCADILLY BUCKINGHAM GREEN CAFE ROYAL HAM YARD GOLDEN REGENT BERKELEY CARNABY HYDE GROSVENOR HANOVER OXFORD AIR W1 PICCADILLY SQUARE CIRCUS PALACE PARK HOTEL HOTEL SQUARE 37-38 STREET SQUARE STREET PARK SQUARE SQUARE STREET

LOCATION 4

AERIAL OVERVIEW N EWMAN CAVENDISH SQUARE HENRIETTA PL.

LOCATION OXFORD ST.

Soho is one of the principal office sub-markets BOND OXFORD TOTTENHAM in London’s West End. Bounded by CIRCUS COURT ROAD . Street to the north, to the west, ST SOHO NEW BO HANOVER GH OU Shaftesbury Avenue to the south and Charing SQUARE BOR SQUARE ARL Cross Road to the east, Soho is characterised by M DEAN EAT ND GR an eclectic mix of high quality office and residential DA GREE

S CA . ST

VIES ST ST accommodation and is associated with a wide T. RN . FR K ADWICK range of leisure amenities including well-known O ITH ST A BR B L hotels, restaurants, theatres and bars. Y E . . XI S S T . T NGTO . ST The area is synonymous as an office destination . G IT R K ST EA EA N for the film, media and entertainment industry. DU B BR N T ST

I PU However, with the improvements to the office CO D . L E L TE stock, including new developments such as 12 S L AVILE RO A NE T. S Golden Square, Air W1 (Glasshouse Street) and NE Y WER E R T. B 25 Great Pulteney Street, Soho has attracted N S TO substantial office occupiers including Och Ziff, RU E B W REGENT ST VENU CarVal Investors, Diageo, Generation Investment A LEICESTER O Y R Management and Nike together with long BERKELEY LD BO SQUARE SBU standing occupiers such as Sony, Emap, National SQUARE E FT N A Magazine Company, Time Warner, Bartle Bogle D . H S Hegarty and M&C Saatchi. Soho also offers a ST rich and diverse social scene and is renowned . PICCADILLY for its fusion of modern bars and restaurants with BERKELEY ST CIRCUS HA the more Mediterranean style pavement cafes/ Y M bistros, Spanish tavernas and Asian restaurants. A R RE K Spread throughout Soho, occupiers include Hix, E . T Polpo, Soho House, Arbutus, Yauatcha and Dean G Y ENT ST Street Townhouse. There are also a number of DILL CA . internationally renowned boutique hotels, such as PIC ST GREEN PARK RMYN . The Soho Hotel, Sanctum Soho Hotel, along with JE the new Ham Yard and Café Royal hotels, which TRAFALGAR offer their own trendsetting bars and restaurants. SQUARE ST ST JAMES’S JA SQUARE COC KS Although the area has become a well-known MES’S ST PUR S office, restaurant and retail location, it also benefits T. from a vibrant residential community. GREEN PARK . CHARING

CROSS

LOCATION 5

LOCATION & MAP LOCATION 6

LOCAL AMENITIES SITUATION & COMMUNICATIONS

37-38 Golden Square is prominently located on the northern side of the Square at its junctions with Upper James Street and Beak Street and lies just to the south of the world renowned Carnaby Street. Golden Square is considered the prime office location within Soho, which has been further strengthened by the recent completion of 12 Golden Square, Air W1 and 25 Great Pulteney Street office developments and the new Ham Yard and Café Royal Hotels.

The location is served by excellent transport communications with Oxford Circus (Bakerloo, Victoria and EAST CLUB LTD Central lines), Tottenham Court Road (Central and Northern lines) and Piccadilly Circus (Bakerloo and Piccadilly lines) underground stations within close proximity. These provide access via the underground network to the HERALD main railway stations of Paddington, Waterloo, Victoria, Euston, St Pancras International, Kings Cross and STREET LTD Liverpool Street. ENTRANCE

Crossrail The area will also benefit from the Crossrail station at Tottenham Court Road which is due to start operating in 2018. Crossrail is the biggest transport improvement in London and is set to become London’s principal east to west rail link. Costing £16 billion, Europe’s largest infrastructure project will link 37 stations and two London airports (London Heathrow and City Airport) with journey times expected to be at least twice as fast as existing. The property is a short walk from Hollen Street, the new western entrance of the Tottenham Court Road station.

Crossrail Route Map Stratford Shenfield

Hayes & Ealing Bond Liverpool Harlingdon Hanwell Broadway Street Street

Reading Southall West Ealing Paddington Tottenham Court Road

Heathrow Canary Abbey Airport Wharf Wood N

Surface Line Tunnel National Rail Commection 9 minutes walk time to Golden Square

Note: Not all stations are shown Not to scale. For identification purposes only.

LOCATION 7

SITUATION & COMMUNICATIONS LOCATION 8

LOCAL AMENITIES BUILDING OVERVIEW

37-38 Golden Square comprises an attractive, triple aspect, mixed use building encompassing retail and restaurant uses on the ground and lower ground floors and self contained offices on the upper floors.

The offices are accessed from Golden Square via a dedicated refurbished reception which houses an 8-person automatic passenger lift serving the upper floors. The common parts were refurbished to a high standard in 2009. There is also a separate entrance from 34 Beak Street which houses a 6-person passenger lift serving the upper 4 floors. The floors provide good open plan accommodation with excellent natural light from three elevations and have been refurbished as and when they have become available.

The specification includes the following:

– 8 and 6-person automatic passenger lifts – Comfort cooling – Suspended ceilings with integral lighting – Perimeter trunking – Demised WCs – Commissionaire

There are six retail units and one restaurant unit on the ground and lower ground floors with frontages to Golden Square, Upper James Street and Beak Street. All the units are suitable for both A1 and A3 uses and two of the units, on Golden Square and Beak Street, benefit from return frontages to Upper James Street.

DESCRIPTION 9

BUILDING OVERVIEW REGENT WARWICK MARIAN GOODMAN CLEAR M&C CARNABY BEAK GREAT PULTENEY 750MPH SONY INGENIOUS DIAGEO ABSOLUTE STREET STREET GALLERY CHANNEL SAATCHI STREET RADIO STREET STREET

GOLDEN SQUARE

DESCRIPTION 10

AERIAL ACCOMMODATION GROUND USE NIA NIA GROUND FLOOR FLOOR (SQ M) (SQ FT) ITZA

Basement Offices 58.6 631 The property has been measured by Plowman Craven in accordance with the RICS Code of Sixth Offices 222.0 2,390 Measuring Practice (6th Edition). The report is assignable and provides the following net internal Fifth Offices 267.3 2,877 floor areas: Fourth Offices 338.5 3,644

Third Offices 350.5 3,773

Second Offices 344.2 3,705

First Offices 338.4 3,643

Ground Reception 37.8 407

Office Sub Total 1,919.5 20,663 (1,957.3 sq m including (21,070 sq ft including reception area) reception area)

Ground Floor 50.6 Ground Floor 545 38 Golden Square A1 505 Basement 73.0 Basement 786

Ground Floor 47.0 Ground Floor 506 4 Upper James Street A1 428 Basement 26.2 Basement 282

Ground Floor 43.6 Ground Floor 469 5 Upper James Street A1 410 Basement 104.7 Basement 1,128

6 Upper James Street A3 Ground Floor 104.4 Ground Floor 1,123 -

Ground Floor 40.5 Ground Floor 436 7 Upper James Street A1 394 Basement 37.5 Basement 403

Ground Floor 40.1 Ground Floor 431 36 Beak Street A1 380 Basement 28.5 Basement 307

Ground Floor 27.7 Ground Floor 298 38 Beak Street A1 298 Basement 34.2 Basement 368

A1/A3 Sub Total 657.9 7,082

Overall Total 2,577.4 27,745 (2,615.2 sq m including (28,152 sq ft including reception area) reception area)

ACCOMMODATION 11

ACCOMMODATION SCHEDULE ACCOMMODATION 12

THE SPACE EXISTING FLOOR PLANS

Ground Floor 34 37 Beak Street 36 Golden Square 38

4 5 6 7 38

Upper James Street

Typical Upper Floor Beak Street Golden Square

Not to scale. For identification purposes only. Upper James Street

ACCOMMODATION 13

EXISTING FLOOR PLANS TENURE

The title of the property is split into two interests, a freehold and a long leasehold as illustrated on the Ordnance Survey extract.

The leasehold interest (title no. LN146375) runs adjacent to Upper James Street and is coloured red. The term granted is 900 years from 25 March 1689 at a peppercorn rent (574 years unexpired). The vendor has obtained title insurance in respect of the long leasehold interest.

The freehold interest (title no. 169171) lies adjacent to the neighbouring building at 36 Golden Square and is coloured green.

Not to scale. For identification purposes only.

TENURE & TENANCY SCHEDULE 14

TENURE TENANCY SCHEDULE

The property is let in accordance with the tenancy schedule and produces a total current income of £890,236 per annum.

FLOOR / UNIT TENANT USE TOTAL AREA LEASE LEASE EXPIRY PASSING PASSING COMMENTS (SQ FT) START (BREAK OPTION) RENT (£PA) RENT (£PSF)

7th Vacant B1 631 - - £0 £0 - 24/12/16 Yr 1 - £29,875 Profit rent in addition to basic rent. 6th Golden Square Business Centre Ltd B1 2,390 25/12/14 £12.50 Outside the Landlord & Tenant Act 1954. (24/12/15) Yr 2 - £46,605 Mutual 3 month rolling break option. Reversionary lease being negotiated. 5th MSC Group Ltd B1 2,877 29/10/10 28/10/15 £70,082 £24.36 Outside the Landlord & Tenant Act 1954. Landlords 6 month rolling break option. Outside the Landlord & Tenant Act 1954. 4th CWM Retail Property Advisors Ltd B1 3,644 31/03/10 31/12/15 £131,461 £36.08 Rent inclusive of service charge - £159,885 pa. 24/12/16 Yr 1 - £45,762.50 Profit rent in addition to basic rent. 3rd Golden Square Business Centre Ltd B1 3,773 25/12/14 £12.13 Outside the Landlord & Tenant Act 1954. (24/12/15) Yr 2 - £71,389.50 Mutual 3 month rolling break option. Outside the Landlord & Tenant Act 1954. 2nd How Splendid Ltd B1 3,705 01/01/15 31/12/15 £135,305.50 £36.52 Landlords 3 month rolling break option. Outside the Landlord & Tenant Act 1954. 27/03/16 Landlords 6 month rolling break option. 1st Markmonitor International Ltd B1 3,643 28/03/11 £110,250 £30.26 (25/12/15) Service charge cap - £10.09psf. Guaranteed by Markmonitor Holdings Inc. Office Sub Total 20,663 excluding reception area £522,736 Outside the Landlord & Tenant Act 1954. 38 Golden Square Herald Street Ltd A1 1,331 28/08/14 31/07/15 £32,000 £60.00 ZA Landlords 1 month rolling break option. Outside the Landlord & Tenant Act 1954. 4 Upper James Street BAPE Ltd A1 788 01/01/15 31/12/15 £40,000 £90.50 ZA Landlords 1 month rolling break option.

09/08/19 Outside the Landlord & Tenant Act 1954. 5 Upper James Street Greggs Plc A1 1,597 10/08/09 £60,000 £128.75 ZA (24/12/15) Landlords 6 month rolling break option. 17/12/18 Outside the Landlord & Tenant Act 1954. 6 Upper James Street Pizzaexpress (Restaurants) Ltd A3 1,123 18/12/08 £72,500 £64.55 (24/12/15) Landlords 6 month rolling break option. 25/03/16 Outside the Landlord & Tenant Act 1954. 7 Upper James Street East Club Ltd A1 839 05/05/15 £55,000 £133.00 ZA Landlords 1 month rolling break (31/12/15) option after 15/12/15. Outside the Landlord & Tenant Act 1954. 19/08/18 Landlord 6 month rolling break option. 38 Beak Street KNBY LND PR1 Ltd A1 738 20/08/08 £55,000 £166.00 ZA £65,797.05 rent deposit. (25/12/15) Sub-let to Dulpat Investments Limited, t/a Wrapchic, on a co terminus lease.

30/06/18 Outside the Landlord & Tenant Act 1954. Landlords 36 Beak Street Fabrizzio Passera A1 666 24/02/15 £53,000 £135.00 ZA (30/06/15) 1 month rolling break option after 30/06/15. Retail / Restaurant Sub Total 7,082 £367,500 Overall Total 27,745 (28,152 including reception area) £890,236

NB: Sub-station let to London Electricity, in part of the basement, on a lease expiring 13/01/2081. The lease is inside the Landlord & Tenant Act 1954 and the tenant has a 6 month rolling break option.

TENURE & TENANCY SCHEDULE 15

TENANCY SCHEDULE TENANT COVENANT INFORMATION

Office Retail

CWM Retail Advisors LLP Markmonitor International Ltd BAPE Ltd Pizzaexpress Restaurants Ltd Founded in 1992, CWM is one of the main retail Markmonitor is the only company offering BAPE, or A Bathing Ape, is a Japanese Pizzaexpress (restaurants) Limited is the well known property consultancy practices in the UK, with comprehensive, end-to-end solutions that enable clothing company founded in 1993 by Nigo. pizza restaurant which was established in 1965 with offices in London and New York. CWM provide an enterprise to both establish and defend their The company specialises in men’s, women’s the opening of the first restaurant on in clients with informed and bespoke retail property brands against multiple online risks. As one of the and kid’s lifestyle and street wear, running 19 Soho. Since then the company has expanded to over solutions for both landlord and tenant clients. leading global providers of brand protection for stores across Japan and stores in Hong Kong, 400 restaurants in the UK with another 40 throughout Landlord clients include Blackstone, British Land, the enterprise, they offer solutions that safeguard New York, Taipei, Paris, Shanghai, Beijing, Europe, Hong Kong, India and the Middle East. Pizza Derwent London and Legal & General whilst brands, reputations and revenues from ever- Seoul and Singapore. Express was floated on the London Stock Exchange in tenant clients include The Body Shop, Calvin Klein, evolving online risks. Clients include Epson, FedEx, 1993 with franchises opening across the UK. The UK Samsung and Pizzaexpress. Further information Time Warner, UBS, Zurich and Links of London. franchises were then bought back en mass in 1996. can be found at www.cwm.co.uk Further information can be found at Greggs Plc TDR Capital and Capricorn Associates then bought www.markmonitor.com Greggs has been one of the UK’s leading the company in 2003 turning it private again but two bakers for the last 70 years since its inception years later it was floated again as part of the Gondola in Tyneside in the late 1930’s. They are a baker Holdings PLC. It was then bought by the current owners Golden Square Business Centre Ltd MSC Group Ltd and retailer with ten regional bakeries supplying private equity group Cinven as the Gondola Group in Golden Square Business Centre forms part of MSC Group Limited are a creative advertising over 1,500 shop units around the UK, a central 2007. In June 2014, the company had a turnover of the Ventia serviced office operation which has 19 agency who specialise in the retail sector. They savoury production unit, two distribution centres £352.4 million with a net profit of £68.3 million. Further sites in London and one in Bristol. Clients include work with brands and retailers to understand their and 375 delivery vehicles servicing them all. information can be found at www.pizzaexpress.com. Energy My Way, KCA New Thoughts, Impact shoppers and manage the communication from They currently employ over 20,000 people and Personnel and Matrix Legal Support. Further initial thought through to purchase. Their clients plan to open a further 500 new shops over information can be found at www.ventia.co.uk include Starbucks, Comet, Nestle, Argos and the next few years, creating up to 6,000 new KNBY LND PR1 Ltd Morrisons. Further information can be found at jobs. In December 2014, the company had KNBY is owned by Russian oligarch Leonid Shutov and www.liveandbreathe.co.uk a turnover of £762 million with a net profit of Richard Howarth who own and run the Bob Bob Richard How Splendid Ltd £33.2 million. Further information can be found restaurant and bar on the opposite side of Upper James How Splendid are a design and technology at www.greggs.co.uk Street. They utilize the basement of the retail unit for staff company founded in 2003 and recognised as one quarters and have sub-let the ground floor to Dulpat of the fastest growing technology companies in Investments Limited trading as Wrapchic. Wrapchic is a the UK. Their services include competitor analysis, Herald Street Ltd new Indian Burrito concept that was established in 2012 branding identity development along with design Herald Street is an art gallery business and currently has 8 UK outlets. research and prototype development. Clients operating out of two locations in London – the include BBC, ebay, Aston Martin, Microsoft and subject property and 2 Herald Street in Bethnel Fabrizio Passera t/a Canaletto Sandwich Bar easyjet. Further information can be found at Green. They display and sell artwork from Named after the famous painter who once resided www.howsplendid.com artists from all over the world including Josh opposite, Canaletto Sandwich Bar is a family run Brand, Markus Amm and Annette Kelm. Further café serving hot and cold food. information can be found at www.heraldst.com

TENANT COVENANT INFORMATION 16 REFURBISHMENT/DEVELOPMENT OPPORTUNITY

Office Retail/Restaurants Hotel The property affords an excellent opportunity to refurbish the Vacant possession of the retail and restaurant units can be Due to its prominent corner location, the property could be offices after December 2015 when vacant possession can be achieved in December 2015. Planning consent has been granted suitable for hotel use, subject to the necessary consents and achieved. Hawkins Brown Architects have undertaken a feasibility for comprehensive refurbishment or redevelopment of the site, servicing. There is a short supply of high quality boutique hotels in study that would increase the net floor area by approximately which will provide opportunities to configure new, larger A1 or Soho albeit this has been eased by the opening of The Sanctum 3,000 sq ft and includes the following works: A3 units with the potential to have one double height restaurant Soho Hotel on Warwick Street in 2009 and the Firmdale Hotel at unit fronting Golden Square. Depending on the location of the Ham Yard which opened recently. – Existing façades retained and refurbished new core and entrance, further units could be located along the – Replace existing windows improving Beak Street retail pitch. Retail rents in the area have seen a marked improvement over the last few years, mainly due – Replace roof coverings to the impact of the highly successful Carnaby Street, where rents – Infill existing lightwell to contain new primary lift, escape are now in excess of £485 ZA and have achieved £190 ZA on and WC core Beak Street. – Single core escape strategy to maximize usable floor area – New double height reception – New communal roof terrace on 7th floor

REFURBISHMENT / DEVELOPMENT POTENTIAL 17

OFFICE/ RETAIL/ RESTAURANT & HOTEL PROPOSED RESTAURANT, RETAIL AND RESIDENTIAL FLOOR PLANS

Ground Floor Beak Street Golden Square

Upper James Street

Typical Floor (First to fourth floors) Beak Street Golden Square

Not to scale. For identification purposes only. Upper James Street

REFURBISHMENT / DEVELOPMENT POTENTIAL 18

PROPOSED GROUND & TYPICAL FLOOR PLANS PROPOSED RESTAURANT, RETAIL AND RESIDENTIAL FLOOR PLANS

Fifth Floor Beak Street Golden Square

Upper James Street

Sixth Floor Beak Street Golden Square

Not to scale. For identification purposes only. Upper James Street

REFURBISHMENT / DEVELOPMENT POTENTIAL 19

PROPOSED FIFTH & SIXTH FLOOR PLANS PROPOSED RESTAURANT, RETAIL AND RESIDENTIAL FLOOR PLANS

Seventh Floor Beak Street Golden Square

Upper James Street

Eighth Floor Beak Street Golden Square

Not to scale. For identification purposes only. Upper James Street

REFURBISHMENT / DEVELOPMENT POTENTIAL 20

PROPOSED SEVENTH & EIGHTH FLOOR PLANS CONSENTED RESIDENTIAL SCHEME

In November 2014, planning consent The Brimelow McSweeny consented residential scheme has the following breakdown was achieved to convert the upper parts of apartments: from offices to apartments, comprising 4 x 1-beds, 11 x 2-beds and 7 x 3-beds, FLOOR FLAT BEDS GIA (SQ M) GIA (SQ FT) with the further ability (and pending final 1st Floor 1.1 3 bed 166 1,787 agreement with UKPN to relocate the 1.2 1 bed 48 517 substation) to reconfigure the retail units into a more desirable layout comprising 1.3 2 bed 90 969 two retail units and one restaurant unit. 1.4 2 bed 110 1,184 The full planning description is as follows: Sub Total 414 4,456 2nd Floor 2.1 3 bed 166 1,787 14/05950/FULL: Reconstruction of the 2.2 1 bed 48 517 fifth to seventh floors and erection of 2.3 2 bed 90 969 extensions at eighth floor roof level and at first to eighth floor levels within a rear 2.4 2 bed 110 1,184 lightwell in connection with the use of the Sub Total 414 4,456 first to eighth floors as 22 residential flats 3rd Floor 3.1 3 bed 166 1,787 (Class C3); reconfiguration of the ground 3.2 1 bed 48 517 and basement floors to provide retail 3.3 2 bed 90 969 (Class A1) and restaurant (Class A3) uses; 3.4 2 bed 110 1,184 alterations including new windows to all elevations, creation of roof terraces and Sub Total 414 4,456 new plant and screening at roof level. 4th Floor 4.1 3 bed 166 1,787 4.2 1 bed 48 517 Following a shortage of significant new 4.3 2 bed 90 969 housing stock in Soho over the last 4.4 2 bed 100 1,076 10-20 years, the market is experiencing Sub Total 404 4,349 high demand. New developers and purchasers have been attracted to Soho, 5th Floor 5.1 3 bed 160 1,722 resulting in increasing prices. Prime 5.2 2 bed 82 883 residential capital values in Soho are now 5.3 3 bed 120 1,292 achieving in excess of £2,500 psf. Sub Total 362 3,251 6th Floor 6.1 3 bed triplex 111 1,195 Due to the loss of office space, 6.2 2 bed 74 797 Westminster City Council required a provision for lost office space either 6.3 2 bed 117 1,259 off site or as a payment in lieu. In Sub Total 302 3,251 this regard, a Section 106 Agreement 7th Floor 6.1 Part of triplex 90 969 has been agreed with the Council at 8th Floor 6.1 Part of triplex 33 355 £3.6million 22 Units Total 2,433 26,189

REFURBISHMENT / DEVELOPMENT POTENTIAL 21

RESIDENTIAL SCHEME OCCUPATIONAL MARKET

Offices Retail/Restaurants The Central London office market saw a total of 11.3 million sq ft of take up by the end of 2014, The West End retail, restaurant and leisure market has experienced exceptionally high growth in recent representing growth of 3% on the 2013 total. With a further 2.5 million sq ft under offer at the same time years, benefiting from London’s ever increasing reputation as a world renowned shopping and leisure and active demand standing at 9.2 million sq ft, the market is set to continue to grow throughout 2015. destination. Prime Oxford Street rents have now been established at £950 ZA, whilst Carnaby Street, being an important focal point for boutique retailers, is now recording rents of £485 ZA. Within Soho, the prevailing Rents continue to rise across Central London with prime West End rents increasing to over £130 per sq tone in Beak Street is £190 ZA and prime restaurant rents have now exceeded £128 per sq ft on an ft during Q4 2014. West End rents have now returned to the previous peak set in 2007 and look set for overall basis. further growth in 2015 as availability falls. It is a combination of this limited supply and the fact that Soho now enjoys more multi business sector appeal than at any time in the last 20 years, that has driven rents to Below shows recent restaurant rental activity: above £100 per sq ft for premium space. The traditional Mayfair and St James’s occupiers, including the financial and service sector occupier are looking to Soho for better value and more significantly, the unique DATE PROPERTY AREA TENANT TRANSACTION RENT and exciting atmosphere that comes with working in such a renowned creative hub. (SQ FT) £PSF

Below shows recent office rental activity: Q3 2014 21-22 Poland Street 3,500 B-Soho Rent Review £90.00 Q3 2014 5-6 Argyll Street W1 4,123 Five Guys OML £122.00 DATE PROPERTY AREA TENANT TRANSACTION RENT Q3 2014 68-70 Wardour Street W1 1,050 MasQMenos OML £128.00 (SQ FT) £PSF Q2 2013 16-18 Beak Street W1 4,462 Byron Burger Assignment £92.00 Current 25 Kingly Street, W1 10,500 Vacant Available Q. 79.50 Q2 2013 60-61 Berwick Street W1 1,500 Ember Yard OML £88.50 Current 12 Golden Square, W1 17,762 Vacant Available Q. 89.50 12 Golden Square, W1 (6th floor) 2,196 £102.50 Q1 2015 12 Golden Square, W1 (5th floor) 3,300 Diageo OML £95.00 Below shows recent retail rental activity: 12 Golden Square, W1 (4th floor) 3,742 £97.50 AnaCap Financial DATE PROPERTY AREA TENANT TRANSACTION RENT Q1 2015 1-2 Stephen Street, W1 16,148 OML £80.00 Partners SQ FT £PSF UK House, Q4 2015 3,200 Countrywide OML £80.00 Q4 2014 47 Beak Street 2,076 Gant Rugger OML £173ZA 2 Great Titchfield Street, W1 Q4 2014 46/48 Beak Street 2,011 Paul Smith OML £167ZA 44-45 Pearl Property Q3 2014 2,674 OML £75.00 W1 Trust Q2 2014 43 Carnaby Street 1,314 Supertrash OML £485ZA 44-45 Great Marlborough Street Q2 2014 41 Carnaby Street 3,487 Muji Rent Review £457ZA Q3 2014 4,200 FT Advisors OML £88.75 W1 Q1 2014 29 Carnaby Street 863 Lambretta Lease Renewal £455ZA Q2 2014 2-3 Golden Square W1 2,763 M&C Saatchi OML £80.00 Q1 2014 19 Beak Street 963 Soho Grind OML £190ZA Q1 2014 Air W1 24,468 Twitter OML £87.50 Q1 2014 Air W1 4,884 Meyer Bergman OML £90.00

The information above has been provided by third parties and therefore subject to verification.

MARKET COMMENTARY 22

OCCUPATIONAL MARKET INVESTMENT MARKET

London still benefits from a robust commercial Below we set out a number of recent comparable transactions: investment market and remains one of the most traded cities in the world. Demand from both domestic and DATE PROPERTY TENURE AREA TENANCY PRICE NIY CAP VAL overseas investors remains considerably high, both (SQ FT) (PSF) attracted by the high liquidity and long term wealth preservation that is on offer, and is only exasperated by Marlborough Yard / the lack of quality assets in core locations. The continued Q2 2015 47, 48 & 49 Poland Street, LLH / FH 43,938 Vacant offices £51m N/A £1,161 strong performance of the occupational markets has led W1 investors to seek riskier, short term income opportunities Vacant offices. Consent 40/41 Great Marlborough to enable refurbishment and repositioning strategies and Q2 2015 FH 12,398 for B1/A1 on LG & G £18.25m N/A £1,472 Street W1 benefit from the forecast rental growth and low vacancy and C3 on upper floors. levels. A lack of development activity over the last five years and residential conversions, has also contributed Regent Arcade House, LLH – 119 Multi let offices. Q2 2015 65,565 £75m 4.58% £1,144 to a pressure on rental values. The fringe markets 25 Argyll Street W1 years Retail not included. have benefited from the shortage of stock along with Ingeni, 17 Broadwick St, Single let offices to infrastructure improvements as investors are forced to Q2 2015 FH 26,354 £42m 3.95% £1,593 pursue opportunities outside of the prime areas in search W1 Ford until 2020 of more attractive yields. Capital A3 unit let to Gaia 21-22 Poland Street, Q2 2015 FH 8,836 for 19 years. Vacant offices £12.1m 1.63% £1,369 W1 Prime West End yields are now below 4.00% for similar with consent for C3. opportunities and are under continued downward Single let offices to pressure as investor demand remains strong. In 2014, 21 Soho Square Q2 2015 FH 20,712 Really Useful Group £29m 2.9% £1,400 Central London investment volumes were in excess W1 of £18 billion, nearly £9 billion in the West End, almost until Feb 2017 eclipsing the record levels achieved in 2013. There is still Retail let to Pasta Brown over £25 billion of equity looking to be invested in the and STA Travel on leases 31 – 33 Bedford Street Central London market. Q1 2015 FH 24,317 expiring in 2021 and 2024 £30m N/A £1,233 WC2 respectively. Vacant offices The demand for residential conversions and active with consent for C3. management or office refurbishment opportunities Short term B1 leases has had a significant impact on the Soho market. on upper parts with Demand from both overseas and UK investors has Q4 2014 19 Golden Square W1 FH 4,715 £8.85m 2.8% £1,877 consent for C3. Retail let seen capital values increase to £1,300 - £1,400 per sq to Eat Ltd for 10 years. ft, up from £1,000 - £1,100 per sq ft 12 to 18 months ago. Following the recent result of the General Election, The information above has been provided by third parties and therefore subject to verification. concerns over an impending Mansion Tax have now dissipated and it is likely that investors will approach the £1.5m plus residential market with renewed vigour.

MARKET COMMENTARY 23

INVESTMENT MARKET RESIDENTIAL MARKET

Overall, the central London Residential market The table below provides a selection of recent comparable sale transactions in both Soho and Mayfair: has continued on the track of robust growth since the beginning of 2015 with house price inflation at PROPERTY SALE SQ FT £ / SQ FT NO OF FLOOR EXCHANGE approximately 13% and consumer confidence at its ADDRESS PRICE BEDROOMS DATE highest level for 12 years. A minor slowdown in the sales market in the run up to the General Election was 6, 33 Dover Street W1 £3,440,000 1,141 £3,015 2 Third Aug-14 a result of the prospects of a Mansion Tax should the 5, 55 Conduit Street, W1 £3,550,000 1,195 £2,971 3 Fifth/Sixth Sep-14 Labour Party have obtained power. However, now that a majority Conservative government has been The Beecham 4, WC2 £4,500,000 1,582 £2,845 2 Second Jun-14 elected we anticipate a luxury property market revival. 1, 55 Conduit Street, W1 £2,750,000 969 £2,838 2 First Sep-14 The West End market, including the micro-market of The Palladio 7, WC2 £3,950,000 1,442 £2,739 2 Fourth Oct-14 Soho, continues to outperform more traditional prime central London areas predominantly due to the fact it Hop House Penthouse, WC2 £5,650,000 2,142 £2,638 3 Fourth / Fifth Feb-14 is still emerging into a true prime residential market. Hollen Street 15, 5, W1 £5,250,000 1,990 £2,638 3 Fifth / Sixth Aug-14 The stock becoming available in Soho has begun to obtain its own distinctive style and over the past Soho Square, 4,10, W1 £4,025,000 1,539 £2,615 2 Second Nov-14 few years has become infinitely better quality. It is New Cavendish Street 4, 65, W1 £3,950,000 1,520 £2,598 3 Fourth Oct-14 also undeniable that the completion of the Crossrail project at Tottenham Court road will have a significant Pathe Apt 11, W1 £2,710,000 1,087 £2,502 3 Fourth Mar-15 impact on the area. The regeneration is likely to entice The Palladio 4, WC2 £4,240,000 1,711 £2,478 2 Third Sep-14 numerous retail and restaurant operators which will in turn make Soho a more attractive area to live and 68-70 Wardour Street, PH, W1 £4,350,000 1,790 £2,430 3 or 4 Third/Fourth Oct-14 therefore drive residential property values. The Palladio 8, WC2 £4,000,000 1,658 £2,413 3 Fourth Jan-14 Going forward we see demand driven by domestic Hollen Street 10, 15, W1 £3,400,000 1,420 £2,394 3 Fifth Sep-14 buyers who continue to gravitate towards the Soho market from more traditional areas such as Mayfair Soho 13, Apt 9, W1 £2,950,000 1,247 £2,366 2 Apr-15 and Knightsbridge. The primary reason behind this is 2, 6-8 Maddox Street, W1 £1,925,000 861 £2,236 2 First Mar-15 that domestic purchasers are able to identify the value for money and improving quality that Soho offers 1, 54 Maddox Street, W1 £1,850,000 807 £2,292 2 First Jul-14 in comparison. In addition to this, the international 9 Pathe Building, W1 £1,325,000 603 £2,197 1 Fourth Oct-14 markets are also likely to react positively after the General Election result which is likely to improve Native Land’s recent scheme at 30 Old Burlington Street, which is situated on a comparable square location in the West End, is reported to be achieving in sentiment and drive investment into the central excess of £3,500 psf. London residential market. The information above has been provided by third parties and therefore subject to verification.

MARKET COMMENTARY 24

RESIDENTIAL MARKET FURTHER INFORMATION

Planning The property is not listed and lies within the boundaries of Westminster City Council and the Soho Conservation Area. Proposal Offers are sought in excess of £35,000,000 (Thirty Five Million Pounds), subject to contract and exclusive of VAT, reflecting a VAT capital value of £1,243 per sq ft assuming full purchaser’s costs of 5.8% The property has been elected for VAT purposes and it is intended to treat the transaction as a Transfer Of a Going Concern (TOGC).

Contact EPC For further information or to arrange an inspection of the property, please contact: Energy Performance Certificate are held in the data room.

Simon Hall Jamie Gunning Data Room 020 3130 6403 / 07715 323 553 020 7182 2005 / 07967 751 394 Further information is available via the electronic data room at: [email protected] [email protected] https://dealroom.nabarro.com

Please contact the agents for password controlled access. Peter Trinder Charlie Philip 020 3130 6408 / 07831 396 542 020 7182 2442 / 07794 055 169 [email protected] [email protected]

Neil Proctor Kathryn Durrant 020 3130 6406 / 07711 468 893 020 7182 2235 / 07789 691 403 [email protected] [email protected]

IMPORTANT NOTICE Hanover Green LLP nor CBRE Limited gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4 The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. June 2015

FURTHER INFORMATION 25