Freehold Mixed-Use Investment Opportunity 1 Executive Summary

• Prominent freehold warehouse style • Multi let to six tenants producing a total building originally constructed in the 1930’s income of £729,449 per annum exclusive as a bicycle factory • Low average overall office rent of £30.18 • Vibrant and ever improving location close to per sq ft Angel underground station • Office lease expiries between 2016 and 2020 • 26,824 sq ft (2,492.1 sq m) of office and • Low average overall bar/restaurant rent of bar/restaurant accommodation arranged £20.90 per sq ft over basement, ground and six upper floors • Bar/restaurant lease expiries in 2026 and • Substantially refurbished in 2001 to include a 2030 new roof-top extension • Average weighted term of 6.62 years to • Newly refurbished 3rd floor and reception expiry and a term certain of 5.57 years

Investment Rationale

• The offices are considered to be highly • The current Estimated Rental Value is in the reversionary, as reflected in the recent letting region of £1,039,219 per annum of the third floor at £43.00 per sq ft • Excellent opportunity for change of use to • The bar/restaurant units are considered to be residential and to increase floor area, subject highly reversionary to planning

We are seeking offers in excess of £14,250,000 (Fourteen Million, Two Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 4.84%, a reversionary yield of 6.9%, adopting our Estimated Rental Value of £1,039,219 per annum, and an attractive capital value of £531 per sq ft after allowing for standard purchaser’s costs of 5.8%.

2 Location

The local area is recognised as one of ’s most vibrant and established business, residential and entertainment districts with its lively street markets, numerous coffee bars and gourmet restaurants including Smokehouse, Prawn on the Lawn, House of Wolf and Jamie’s Italian. It is also home to a diverse range of fashion retailers from independent boutiques to the mainstream retailers such as Reiss, Monsoon, and Space NK.

The 11 theatres, two cinemas and numerous art galleries attracting visitors from all over London provide further amenities. The is in close proximity hosting some 80 exhibitions and 250 conferences, attracting over half a million visitors every year.

Situation

The property is located on the east side of Essex Road, in the London Borough of , and is bounded by Colebrooke Row and Elliott’s Place to the side and rear. The area is well served by public transport with Angel Underground station (Northern Line), & Islington Underground and Mainline Station (Victoria Line, Overground and First Capital Connect) and Essex Road Mainline Station (First Capital Connect) within a short walk linking the area to the West End and City.

King’s Cross St Pancras Eurostar terminal and London Euston mainline stations are within a short distance to the south west. Numerous bus routes operate along Essex Road and providing easy access to the surrounding area.

Suncourt House benefits from being located outside the London Congestion Zone yet still sits strategically within Central London’s extensive communications infrastructure.

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1 2 3 4 5 6 Angel Angel Building Upper Street Business Design Kings Cross Centre

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20 E SSEX ROAD Local Occupiers C AD

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01 Cancer Research UK B U R Y R O S S E X R O E 02 Elite Models 15 03 Expedia A D 04 Sage U P P E R S T R E 05 Squire & Partners Architects

06 Wolff Olins D

07 Jacques Vert OA 08 Ticketmaster R 35

09 Eviivo Ltd I A N

10 Smyle Creative

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CA 23 Bars & Restaurants 25 D 37

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11 Bill’s O R

21 12 The Breakfast Club L O

O AD 13 The Bull P RO ER 42 38 14 Charles Lamb Pub & Kitchen V EX 15 The De Beauvoir Deli Co LI ESS 26 13 27 16 Duke of Cambridge 34 T 17 The Elk In The Woods 29 EE R 18 Fredericks Restaurant 19 Hummingbird Bakery 28 P P E R S T U 20 House of Wolf 24 21 Isarn 32 N EW 31 33 22 Jamie’s Italian N O R T

23 Le Mercury H R O 17 E 40 44 07 24 Meat People AG 06 12 SS A D PA 25 Ottolenghi 18 39 26 Pig & Butcher 36 MDEN A 27 Planet Organic C 16

Retail 28 Angel Flowers 29 Atelier Abigail Ahern

ANGEL T 30 Broad Gallery E 3 minutes walk 02 31 Business Design Centre 11 10 32 Cass Art KING’S 08 33 Centrestage Studios CROSS 09 14 L D S T R E FIE 34 Space NK Apothecary T 22 PI 35 twentytwentyone D LL E RO A PE NT ONVI 01 36 Waitrose 19 30 04 03 Hotels & Leisure 43 37 05 38 The Life Centre Yoga Studio C I T Y R O 39 Mall Antiques Arcade 41 A D 40 O2 Academy 41 Sadler’s Wells Theatre AD 42 Screen on the Green Not to scale. G O For identification S 43 Virgin Active Gym E A S T R O W E S

T purposes only. 44 Vue Cinema N H O J . L L

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OSEB R OLD STREET 5 Description

Suncourt House, 18-26 Essex Road, comprises a 1930’s brick built warehouse style building. The property was substantially refurbished in 2001 to provide bar/restaurant premises at ground and basement levels with six floors of self contained offices above, including a roof-top penthouse extension. The 3rd floor and building reception have recently been refurbished. The offices provide modern and contemporary accommodation and benefit from excellent natural light together with panoramic views over London on account of the building’s prominent corner position.

The office specification includes: • Bespoke re-modelled reception • Automatic passenger lift serving ground to 5th floors • Feature entrance door with security and 24 hour access • Double glazed windows • Fully accessible metal tiled flooring • 2.9m floor to ceiling heights • Wall and ceiling mounted fan coil units • Roof terraces on 4th, 5th and 6th floors providing controlled heating and cooling • Excellent natural light • Suspended lighting • Demised WCs

The ground and lower ground floor bar/restaurant units, which have prominent frontages along Essex Road and Colebrooke Row, have been fitted out by the existing tenants to a high standard and commensurate with use.

6 7 Accommodation FLOOR PLANS

ESSEX ROAD The building has been measured by Plowman Craven Associates, whose report is fully assignable, and has the following net internal areas:

Floor Use Sq M Sq Ft 6th Offices 65.1 701

5th Offices 257.2 2,768 3rd Floor 4th Offices 290.6 3,128

COLEBROOKE ROW 3rd Offices 371.9 4,003 2nd Offices 383.7 4,130 1st Offices 384.3 4,137

Ground Reception 28.1 302 ELLIOTT’S PLACE Ground Retail Unit 1* 405.3 4,363 Basement Retail Unit 1* 270.3 2,909 ESSEX ROAD Ground Rear Retail Unit 2* 35.6 383 Total 2,492.1 26,824

*Measured on a gross internal basis. Ground Floor

COLEBROOKE ROW

Not to scale. For identification ELLIOTT’S PLACE purposes only.

8 9 Tenancies

The property is multi let to six tenants and produces a total current income of £729,449 per annum, in accordance with the following tenancy schedule. All the upper floor leases are outside the security of tenure and compensation provisions of the Landlord and Tenant Act 1954, as amended.

Floor Area Tenant Lease Lease Next Rent Rent £pa ERV £pa L&T Act Comments sq ft Start Expiry Review (£psf) (£psf) 1954 6th 701 Corelogic Limited 17 Sept 16 Sept - £112,800 £156,105 Outside Stepped rent as follows: 5th 2,768 2013 2018 (£32.52) (£45.00) 17/9/2013 to 16/4/2015: £56,400 17/4/2015 to 16/9/2018: £112,800 Vendor will top up any unexpired concessionary rent. 4th 3,128 Corelogic Limited 17 Sept 16 Sept - £101,120 £134,504 Outside Stepped rent as follows: 2013 2018 (£32.33) (£43.00) 17/9/2013 to 16/4/2015: £50,560 17/4/2015 to 16/9/2018: £101,120 Vendor will top up any unexpired concessionary rent. 3rd 4,003 Net Media Planet 1 Sept 31 Aug - £172,129 £172,129 Outside Tenant only break upon 6 months notice 2014 2019 (£43.00) (£43.00) on 31 Aug 2017. Half rent for first 6 months. Vendor will top up any unexpired concessionary rent. 2nd 4,130 Bamber and Reddan 1 Mar 29 Feb 1 Mar £83,400 £179,590 Outside Tenant only break upon 6 months notice on Architects Ltd 2010 2020 2015 (£20.19) (£43.00) 28 Feb 2015. 1 car parking space. 1st 4,137 Intent Media Ltd 8 July 23 June - £100,000 £179,891 Outside 1 car parking space. 2011 2016 (£24.17) (£43.00)

Ground 302 Reception

Ground Rear 383* The Bar With No Name Ltd 25 Dec 24 Dec 25 Mar £10,000 £12,000 Inside Outstanding Rent Review 2002 2026 2014 (£26.11) (£31.33)

Ground 4,363* Barworks (Islington) Ltd 13 Apr 12 Apr 13 Apr £150,000 £205,000 Inside Basement 2,909* 2010 2030 2015 (£20.62) (£28.19)

TOTAL 26,824 £729,449 £1,039,219 (£27.19 psf assuming overall) £2,000 per car space (£38.74 psf overall) *Measured on a gross internal basis. There is a basement transformer chamber with a lease to London Power Networks until 21/01/2101 subject to a redevelopment break with not less than 9 months notice. A copy of the lease is available on the Data Site. 10 Site Plan of N1 8LN

TENANT Information Tenure

Freehold.

Corelogic: The vendor holds a rent deposit of £33,417. www.corelogic.co.uk.

Bamber and Reddan Architects Limited: The vendor holds a rent deposit of £48,410. www.bamberandreddan.co.uk.

The Bar With No Name Limited: The vendor holds a rent deposit of £5,875. www.69colebrookerow.com.

Intent Media Limited: The vendor holds a rent deposit of £30,000. www.newbaymedia.com. Not to scale. For identification purposes only. This plan is based upon an Ordnance Survey Map with the sanction of the controller of HM Stationery Office. Crown Copyright reserved.

Barworks (Islington) Limited: The vendor holds a rent deposit of £44,062.50. www.barworks.com. Planning

Net Media Planet: The vendor holds a rent deposit The property is located in the London Borough of Islington, is not listed but is situated within the of £103,278. www.netmediaplanet.com. Duncan Terrace/Colebrooke Row Conservation Area.

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This Plan includes the following Licensed Data: OS MasterMap Black and White PDF Site Plan by the Ordnance Survey National Geographic Database and incorporating surveyed revision available at the date of production. 0m 25m 50m 75m 100m 125m Reproduction in whole or in part is prohibited without the prior permission of Ordnance Survey. The representation of a road, track or path is no evidence of a right of way. The representation of features, as lines is no evidence of a property boundary. © Crown copyright and database rights, 2014. Ordnance Survery 0100031673 Scale: 1:1250, paper size: A3

Prepared by: Simon Hall, 11-06-2014 Market Commentary

Office Leasing Address Tenant Date Area (sq ft) Rent (psf)

The Central London office market continues its upward 1 Olivers Yard Orms Architects Jul-14 6,500 £50.00 trend into Q4 2014. One of the biggest success stories 91-93 Farringdon Road MMT Digital Jun-14 2,223 £50.00 has been the Tech Belt, with demand outweighing 17-18 Haywards Place Kinosis Feb-14 2,180 £50.46 supply in its villages. Office requirements now include , , Old Street and Angel and as Alphabeta, 14 Square SEI Ltd Jan-14 57,905 1st Floor £45.50 such rents have been steadily increasing. 8th floor £52.50 Bryant Building, 77-79 Gt Eastern St The Capital Markets Company Dec-13 23,250 £39.50 Overall £45 on best Buckley Building, 49 Clerkenwell Green Deloitte Digital Sep-13 26,388 £57.50

Retail / Restaurant Leasing Address Tenant Date Area (sq ft) Rent (psf)

Central London Retail and Restaurant operators remain 133b Upper Street Meatailer Ltd Jul - 14 3,969 £39.00 interested in new opportunities, with a particular interest 359 Upper Street Superdry May-14 8,140 £45.15 in the Tech Belt. 26 Upper Street Scribbler Apr-14 1,096 £47.45

Angel continues to be a true mixed-use location, with its 71 Upper Street Five Guys Nov-13 2,323 £45.20 reputation as a haven for shopping and fine dining. The 204 Upper Street SS Contractors Nov-13 1,216 £43.59 high footfall and exciting range of retailers has meant that demand for units in Angel is substantial and as such 159-168 Upper Street Topps Tiles Feb-13 1,505 £44.85 rents are increasing.

Investments Address Sale Price Date NIY Area (sq ft) Price (psf)

The combination of improving transport links (Crossrail, 186 City Road £23.3 million July-14 4.09% 38,300 £608 perhaps most significantly), popular local amenities and 91 Goswell Road £13.85 million July-14 4.52% 17,117 £809 comparatively low occupational costs has meant the 59 Upper Street £4.41 million May-14 4.16% 5,081 £867 Tech Belt has proved popular with tenants and investors alike. Interest from investors has been substantial in these 2 Peartree Court £8.95 million Nov-13 4.81% 14,343 £624 villages, with capital values reaching unprecedented 28-30 Kirby Street £14.3 million Aug-13 5.57% 22,755 £628 levels. The accuracy of the information in the above tables cannot be guaranteed as it has been sourced from third parties.

12 VAT Proposal

The property is elected for VAT purposes. It is anticipated that the sale We are seeking offers in excess of £14,250,000 (Fourteen Million, will be treated as a transfer of a going concern (TOGC). Two Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 4.84%, a reversionary yield of 6.9%, adopting our Estimated Rental Value of £1,039,219 per annum, and an attractive capital value of £531 per sq ft after allowing for standard purchaser’s costs of 5.8%.

Further Information

Further information is available at www.suncourthouseessexroad.co.uk where the following documents can be found:

• Occupational leases • Asbestos and fire risk reports • Freehold title • EPC Certificates • Measured survey and duty of care letter • Service charge information

Should you wish to access the password controlled data site or arrange an inspection, please contact:

Simon Hall Richard Susskind 020 3130 6403 020 7831 8311 [email protected] [email protected]

Peter Trinder Jonathan Franks 020 3130 6408 020 7831 8311 [email protected] [email protected]

IMPORTANT NOTICE Hanover Green and Richard Susskind & Co 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. September 2014. Q2910

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