47 CONDUIT STREET W1

Flagship Retail Investment Opportunity 47 CONDUIT STREET W1

INVESTMENT SUMMARY

• Flagship prime retail investment opportunity in the heart of , one of the world’s most exclusive retail locations

• Situated on the south side of Conduit Street, close to the junction with Savile Row and New

• Ground floor and basement retail unit with three upper floors comprising office accommodation, totalling a net internal area of 4,323 sq ft

• Potential for additional fourth floor subject to planning and opportunity to open up basement to create extra retail accommodation

• The whole property is let to Lalique Limited for a term of 15 years from 4 August 2008 (approximately 8 years unexpired), there is an upwards only rent review on 4 August 2018

• The current passing rent is £290,000 per annum, reflecting £293 Zone A and £70.00 per sq ft on the self-contained offices

• Virtual Freehold from the City of London for a term of 2,000 years from 25 December 1889 at a fixed ground rent of £7.88 per annum

• Offers in excess of £14,000,000 (Fourteen Million Pounds), subject to contract and exclusive of VAT reflecting anet initial yield of 2.03% and a reversionary yield of 2.98% after purchaser’s costs of 1.80% and a capital value of £3,238 per sq ft.

Founded over a century ago, in 1888, Lalique has endured as the ultimate symbol of French luxury.

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Regent Street Oxford Street Conduit Street Bond Street St James’s Park Berkeley Square Buckingham Palace Grosvenor Square

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LOCATION

Conduit Street is located in the heart of Mayfair in London’s West End, which is renowned as one of the world’s most exclusive retail locations. Mayfair is characterised by a blend of exclusive retailers, high quality office buildings and luxury residential accommodation. Mayfair boasts a wide selection of high end international restaurants including , Novikov, Scotts, Nobu, Hakkasan and hotels including The Westbury, The Ritz, Claridge’s and The Connaught.

SITUATION

Conduit Street links to the east, New Bond Street to the west and Savile Row to the south. Conduit Street runs east-west between Regent Street and New Bond Street. The subject property is situated on the south side of the street and abuts Donna Karen and Crombie, immediately west of the junction with Savile Row. Conduit Street has become an important retailing link between the luxury Bond Street retail and the high end Regent Street market. It remains a prestigious office location being situated within the core Mayfair district.

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P L O O

R O C T M H L S A A T B R O N U L TT D R O H G E Y P T A N S L R T R H W E T C . E A . L B A S I E H M M T E T W Y A N . C P T N . E S E O O I W D T R N L T E U L C B . O L S E R E L H W T E S S S S C F S T M R S T I T . R D K E . A . T A . . L N S R TH SH D I G T ND E ST . VE T. B CA G R S T S T E . O E E AR . G N A AR N T M T B E P P E S O . W N L T ST E E . . R TL E Cavendish S R T CA L ST S COMMUNICATIONS . L EA L ST A S Square T S Tottenham Court Rd RE N T. GA S T S R D . RE MA T MO . WIG S H T . O

. C A PL LL ETT OXFORD STREET H I E Conduit Street benefits from excellent public transport and ENR Oxford Circus A H S Soho R

S I N D T . G U Square

K L C is served by Oxford Circus (Central, Bakerloo and Victoria E E RO O W S N A T D S . OXFORD STREET R G E S D R . T. A T R S S O ES H N E lines), Bond Street (Central and Jubilee lines) and Green Park C G U E D Bond Street N RI U ST F P O R K . R R O S . I S LB T R T A T H M . . AT Hanover . RE S (Piccadilly, Jubilee and Victoria lines) Underground stations. ST G T T. VER . M S Square ANO LHA H T. EAR D S N U C T. O K N A S T R CK P E E R I W E N DW M G A O S A RO C S E B T ST. B B D . OK O T N Y L RO T O B N G S . London’s International airports are accessed via the S E D E T G V T . A S O . R Y T E R D R U . . A R B A G T T S U E V E S P T P I U F T A Heathrow Express departing from Paddington and the E S I L E H S . T U T R S T S . . D E S ST S N T OR N A D T N E S VE O V R . S Y . T A RO C IL T R G Golden . C E S ER Leicester Square Piccadilly line as well as the Gatwick Express departing from . H T R W R G S Square E E A Grosvenor OW A W . L R E E IS R S R V R L I

W N

B T A UP

Square G IC Victoria Station. Y M K R

E C S U R A R R O S T B T C . S T S A E I T W N R T . S F ’ L S H Leicester O A R I

T D .

H L S . C S D Square A R P Y O TR . N L R VE M . E CO The opening of the Crossrail station in Hanover Square (2 G B S EN T S A ST. C T . ST. K Piccadilly Circus NT V U Berkeley I minutes walk) in 2018 will have a significant impact on both MO L L

A E S S H Square L S T O B A T S E Y M U . . T T L M O M T S IL L A A H A A retail and office lettings in Mayfair. The new rail link will H M D R L R Y R R

R A E B T A A H L B G K F A I

E ON E N U EN N T D . DO S . S ’ T T D T S L S S T . Y R E L S L N . V L S D T P provide access to Heathrow (29 minutes) and Canary Wharf Y L I Y T I E T T S H . D M . II S L B R A R . A S C E S E . E C J E L T S S L R PI R L ST. . W T A A H E T. KE . H M OUT M S C LL (13 minutes). S S S L A ’ E P Y LE Y A R D H A . S COCK N H T T SPUR S A C S . T. R T N S O Z A R R St James’s W U L C I A N T G Square E T R Green Park O L N O O S L T AL P ST. . M L RZON S LL . CU T PA P J A P A R M A K R E K L S A ’ S L .

A S

. T Hyde Y . CROSSRAIL ROUTE MAP LL I D A Park C H C I O P R L S Green AL St. James’s E

M G E H Park TH Park U A A

M R

D I L S T O R N D

P . L . LY IL D A C IC P Forest Harold Stratford Gate Ilford Goodmayes Romford Wood Shenfield Bond Street Hayes & Ealing Maryland Manor Seven Chadwell Gidea Brentwood Reading Taplow Slough Iver Harlington Hanwell Broadway Farringdon Whitechapel Park Kings Heath Park

Custom Abbey Maidenhead Burnham Langley West Southall West Acton Paddington Tottenham Liverpool House Wood Drayton Ealing Main Line Court Road Street

Heathrow Canary Woolwich Surface line Airport Wharf Tunnel Portal (tunnel entrance and exit)

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UNDER OFFER RETAILING ON CONDUIT STREET

Luxury retailers who are unable to secure representation on New and Old Bond Street are now acquiring space on Conduit Street, being a prime but comparatively affordable trading location. Conduit Street has recently been enhanced by the completion of a number of flagship retail lettings as shown on the map:

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DESCRIPTION

The property provides an attractive 18th Century Grade II listed building with prominent frontage to Conduit Street 20’ 7 ft (6.27 m). The property is arranged over basement, ground and three upper floors providing a total net internal floor area of 4,323 sq ft (401.59 sq m) of retail and office accommodation.

The building provides retail on the ground floor with ancillary storage at basement level. The ground floor retail unit comprises a rectangular floor plate which benefits from a large sky light in the trading area. This could easily be amalgamated to create a fashion maison with retailer owner occupation potential.

Office accommodation is located on the first, second and third floors which is accessed through the shared main entrance off Conduit Street. The first floor office accommodation benefits from full height French windows and cast iron balconies overlooking Conduit Street.

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ACCOMMODATION

The property provides the following Net Internal Areas:

Net Internal Floor Area Floor Use (sq ft) (sq m)

Basement Retail 799 74.22 Storage

Ground Sales Retail 1,798 167.03

Ground ITZA Retail 658

Retail Total 2,597 241.25

First Office 596 55.37

Second Office 610 56.67

Third Office 520 48.30

Office Total 1,726 160.34

Total 4,323 401.59

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12 61 Regent TENURE 13 199 Mill Street 14 Street 60 ash The property is held by way of a Virtual Freehold interest from the City of LondonN 2 House 15 56 4 9 for a term of 2,000 years from 25 December 1889, providing approximately 1,874 17 3 12 18 years unexpired, at a fixed ground rent of £7.88 per annum. 6 55 16 11 30 53 177 54

10 11 e 175 16 52

31 51 9 9 17 Burlington Plac St George Street 18 TENANCY 8 New 32 19

171 20 Let in its entirety to the world famous Lalique Limited for a term of 15 years from 6 50 Offices 7 33 21 1 49 4th August 2008, expiring 3rd August 2023 (approximately 8 years unexpired) on 48 Offices 2 22a 3 full repairing and insuring terms. Surety is provided by Art & Fragrance Group. 5 34

47 Savile 23 4 4 3 35 2 a 46 24 The current rent payable is £290,000 per annum reflecting £293 Zone A and 23 Ro 36 3 w £70.00 per sq ft on the self-contained offices. There is an upward only rent 45 Street 25 ton 44 Offices ng review on 4th August 2018. Lalique Limited have sub-let part of the office urli 1-2 B 1 reet 5- New 16 accommodation as shown below: 43 14 duit St 42 Con

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Floor Tenant Area Lease Rent 1954 Comment 12

e (sq ft) Expiry (psf) Act 26a us o e H ot hc at He 11 25 treet 1- 26 e S Believed to Retail Boyl Oliver Law £25,000* 27 20 Offic 1st 596 26/06/2015 Outside be currently 28 27 Limited (£41.94) 29 holding over.

26 19 ur Believed to 28 Spring Films £30,000* Ol 18 4-25 New B 2nd 610 26/06/2015 Outside be currently 2 d Limited (£49.18) Burlington 3 holding over. 17 22 23 1 16 Street Street Savile Total £55,000 Retail Clifford Row 15 *All inclusive rent. 24 Offices 4

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TENANT FINANCIAL INFORMATION Lalique Limited

Lalique was first founded in 1888 and is an internationally renowned crystal manufacturer specialising in jewellery, glassware, luxury goods and high end perfume. Lalique is represented in 541 stores all over the world ranging from local community pharmacies to large destination health and beauty stores. Swiss group Art & Fragrance acquired Lalique in 2008 (under the management of Silvio Denz) and Surety is provided by Art & Fragrance Group.

For more information please visit www.lalique.com

Art & Fragrance SA D&B Credit Rating: 4A1

Art & Fragrance Group was founded in 2000 specialising in perfumes, cosmetics, crystal glass, jewellery, high-end furniture, art and living accessories. Art and Fragrance employs over 500 staff throughout the world. The group parent company, Art & Fragrance SA, is headquartered in Switzerland and Art & Fragrance SA is listed on the BX Berne eXchange.

Art & Fragrance SA has filed the following accounts over the last two years.

Art & Fragrance SA (CHF) - Swiss Francs 2014 (CHF) - Swiss Francs 2013

Group profit before tax 400,000 31,510,000

Total current assets 376,000 3,383,000

Total equity 92,388,000 92,024,000

For more information please visit www.art-fragrance.com

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MARKET COMMENTARY

Retailer demand on Conduit Street remains Retail Leasing Transactions: strong from internationally renowned retail and The most recent transactions on Conduit Street in close proximity include: luxury brands. In 2014 record rents on Conduit Street were achieved at over £500 Zone A. In addition, retailers are now paying significant Date Address Tenant Transaction Rent pa Rent Zone A premiums to secure representation. This fuels rental growth in the short to medium term. Q3 14 55 Conduit Street Vanessa Gounden OML £160,000 £443 The property lends its self as a headquarters Q3 14 52/53 Conduit Street Christian Liaigre OML £525,000 £506 fashion Maison for a continental brand looking to establish a premier representation in Mayfair. Q2 14 49/50 Conduit Street DSquared OML £1,325,000 £468

Prime retail rents on Conduit Street In view of the latest evidence we believe the current ERV of the property to be £425,000 per annum. This assumes a Zone A rate of £475 and compare favourably to: £75 per sq ft on the prestigious office accommodation.

Bond Street – £1,600 Zone A Investment Transactions

Oxford Street – £1,000 Zone A London is the most globally sought after destination for international real estate capital. In 2014 the West End reached trade volumes of £5.9 billion, the fourth highest on record and 64% of which fuelled by overseas capital, with investors attracted by low interest rates, high liquidity, Regent Street – £675 Zone A transparency and the long term wealth preservation that London offers.

Albermarle Street – £600 Zone A Date Address Area Tenant Tenure Price Capital Yield (Sq ft) Value (psf) Dover Street – £600 Zone A Q3 15 55 Conduit Street 1,443 Vanessa G. (UK) Ltd FH £5.1m £3,547 3.00%

Q1-15 19 Marylebone High Street 2,621 J.Crew VFH £9.5m £3,624 2.95%

Q1 15 18 Conduit Street 4,843 Vivienne Westwood VFH £10.75m £2,220 2.36%

Q4 14 4 Great Marlborough Street 3,612 Starbucks LLH £4.14m £1,146 2.97%

Q4 14 109-113 Mount Street 5,000 Moynat LLH £27.00m £4,909 1.93%

The Government of the Hong Kong Q4 14 6 Grafton Street 13,238 FH/VFH £35m £2,643 1.12% Special Administrative Region

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VAT CONTACT

The property is elected for VAT and therefore Richard Brown it is proposed the transaction will be treated 020 7318 7818 / 07957 626 566 as a Transfer of a Going Concern (TOGC). [email protected]

James Bramble 020 7399 5411 / 07525 907 158 EPC [email protected]

The EPC certificate is available upon request. Megan Hutchinson 020 7087 5715 / 07857 351 571 [email protected] PROPOSAL

Offers are sought in excess of £14,000,000 (Fourteen Million Pounds) for the issued share capital in the BVI based SPV, subject Anthony Epenetos to contract and exclusive of VAT, reflecting a net initial yield of 2.03% on the current 020 7629 9898 / 07917 878 404 passing rent of £290,000 per annum and a [email protected] reversionary yield of 2.98% after deducting acquisition costs of 1.80%. A purchase at Andrew Knights this level represents a capital value of £3,238 020 7647 4043 / 07825 742 853 per sq ft. [email protected]

Anthony Lorenz 020 7629 9898 / 07788 945 180 [email protected]

Misrepresentations Act 1967 & Declaration: Jones Lang LaSalle for themselves and for the vendors of this property whose agents they are give notice that: a) the particulars are set out as general outline only for the guidance of intending purchasers and do not constitute, nor constitute part of, an offer or contract; b) all descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchaser should not rely on them as statements or representations of fact but should satisfy themselves by inspection or otherwise as to the correctness of each of them; c) no person in the employment of Jones Lang LaSalle has any authority to make or give any representation or warranty whatever in relation to this property. Ordnance Survey © Crown Copyright 2012. All rights reserved. Licence number 100020449. Not to scale. For indicative purposes only. October 2015 Tayler Reid I 020 7355 2500 I taylerreid.co.uk

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