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PRIME SOUTH BANK FREEHOLD MIXED-USE INVESTMENT OPPORTUNITY Executive Summary Freehold Located in the thriving South Bank district adjacent to Borough Market. London Bridge Underground and national rail station is within a 5-minute walk from the property. Comprehensively refurbished in 2017, the property is an attractive former Victorian warehouse building providing 20,435 sq ft (1,898.5 sq m) of office and retail accommodation arranged over lower ground, ground and five upper floors. The property also comprises three residential units totalling 2,540 sq ft (235.9 sq m) GIA arranged over sixth and seventh floors. The office accommodation is let to three tenants with two floors currently vacant. The retail accommodation is let to two tenants, Gourmet Burger Kitchen and The Clink Museum until July and June 2029 respectively. High reversionary restaurant and museum income with well-timed rent reviews in June and July 2019. The residential accommodation comprises three apartments, two 2-bedroom and one 1-bedroom apartments, all with external terracing, winter garden space and impressive river views. No residential sales marketing campaign has been undertaken and the accommodation is offered with vacant possession. The total passing rent over the commercial element (including vendor rental guarantees) is £1,016,739 per annum (£49.75 per sq ft). The let commercial accommodation has a Weighted Average Unexpired Lease Term of 7.75 years to expiries and 6.61 years to break options. Offers are sought in excess of £22,630,000 for the freehold interest Subject to Contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 5.00% and a capital value of £931 per sq ft on the commercial accommodation assuming purchasers costs of 6.75% and also attributing £3,600,000 to the residential accommodation reflecting £1,417 per sq ft. 2 Borough Borough Cannon Street Monument Yards Market London Bridge 3 Location Monument Cannon Street One Clink Street is located in the thriving South Bank district of London, in close proximity to Borough Market and within a 5-minute walk of London Bridge, which connects South Bank to the City of London. South Bank is rapidly SOUTHWARK BRIDGE becoming the city’s most dynamic destination LONDON BRIDGE and is home to a variety of London’s most popular tourist attractions including the London Eye, Borough Market, Shakespeare’s Globe CLINK STREET Theatre, Tate Modern and The View from The Shard as well as amenities along the river which generate a significant footfall. Clink Street is an attractive cobbled, pedestrianised street linking Stoney Street and London Park Street. One Clink Street is equidistant SOUTHWARK BRIDGE ROAD Bridge SOUTHWARK STREET between these two junctions and within 100 metres of Borough Market as well as Borough Yards, Meyer Bergman’s new scheme. There has been significant investment into transforming South Bank as a preferred BOROUGH HIGH STREETSouthwark occupier destination and this has cemented the area as London’s fastest growing, and most diverse district, proven by the success of schemes such as Sea Containers House (pre-let to Oglivy & Mather), One and Two Southbank Place (pre-let to WeWork and Shell) and Borough Cooper & Southwark (pre-let to CBRE). Southbank has seen a large influx of commercial-led development schemes including Bankside Quarter (Temasek, Native Land and Amcorp), Elizabeth House (HB Reavis). Future developments such as Colechurch House near London Bridge will further enhance and promote the area and its surrounds. 4 Connectivity Infrastructure Improvements One Clink Street benefits from the following excellent transport connectivity: London Bridge Station, following the completion of the 5-year £1bn redevelopment project, reopened at the start of 2018. Since work commenced in 2013, Network Rail have transformed the station as part of a Kings Cross BANK 15 mins 15 minutes Government sponsored Thameslink Programme, while remaining operational for the 50 million Victoria, Northern, Piccadilly, Circle, Central, DLR, Northern passengers that use London’s oldest station each year. The station features two new entrances on Hammersmith & City and Metropolitan and Waterloo & City Tooley Street, connecting the north and south sides of the station whilst the completion of City Airport via DLR the five new platforms has enabled Cannon Street services to resume services to London Bridge as normal. All tracks throughout the station have been remodelled to modernise the infrastructure and Bond Street Monument increase capacity for more trains to travel through London. Throughout 2018, the station will 15 mins 11 mins benefit from new shops, cafes and leisure facilities, further fuelling the reinvigoration of the area. Jubilee, Central and Elizabeth Line District, Circle City Airport via DLR Cannon Street Canary Wharf 13 mins 12 mins District, Circle District, Circle, Central, Northern, Jubilee, Waterloo & City and Elizabeth Line City Airport via DLR Southwark London bridge 15 mins 5 mins Jubilee Northern, Jubilee Riverboat services waterloo Borough 10 mins 10 mins Bakerloo, Jubilee, Northern, Northern Waterloo & City Not to scale. For indicative purposes only. 5 6 7 STREET QUEEN VICTORIA STREET VICTORIAMansion House QUEEN Blackfriars BLACKFRIARS UNDERPASS Cannon Street VICTORIA EMBANKMENT WATERLOO BRIDGE SOUTHWARK BRIDGE 56 STREET HOUSE BARGE 1314 67 BRO ADW A LL STAMFORD STREET 910 1415 8 BLACKFRIARS ROAD 9 8 SOUTHWARK STREET 7 3 Lambeth 4 SOUTHWARK STREET London Bridge SOUTHWARK BRIDGE ROAD 5 SE1 4 1213 Waterloo East Southwark 22 Southwark 1011 11 1112 Waterloo BOROUGH HIGH STREET WATERLOO ROAD BERMONDSEY STREET 15 Borough Not to scale. For indicative purposes only. LONG LANE Borough Yards NEWINGTON CAUSEWAY Designed by the award-winning practice SPPARC Architecture, the The project involves the redevelopment of former wine-tasting 197,800 sq ft Borough Yards scheme is scheduled to open in early venue Vinopolis and neighbouring sites, which front onto the 2020. In addition to commercial accommodation, Borough Yards pedestrian path linking the Tate Modern to the west with Borough will provide more than 115,600 sq ft of retail and leisure space. Market, London Bridge Station and The Shard, close by to its east. GREAT DOVER STREET The Office Group will occupy Thames House and an adjacent AsLONDON ROADpart of the redevelopment, a new pedestrianed street, Dirty building, taking a total of 68,500 sq ft (6,360 sq m), while Lane, will create a new throughfare linking Park street and the new building will incorporate a 6,100 sq ft (570 sq m) Stoney Street. Everyman Cinema. 3 Elephant & Castle Local Developments The South Bank is one of London’s fastest growing sub-markets and has been subject to unprecedented development activity in recent years, with a pipeline to suggest this 1. 53 GREAT SUFFOLK STREET, SE1 will continue. Supply in the SE1 postcode is • Morgan Capital Partners 2. 100 UNION STREET, SE1 3. COLECHURCH HOUSE, SE1 one of the lowest across Central London and • 30,000 sq ft of office accommodation • Lake Estates • City of London/Southwark Council developers are competing to capture this • Fully let to George P Johnson and F B Ellmers • 20,000 sq ft of office and retail accommodation • Potential for a c.200,000 sq ft+ mixed use scheme strong occupational demand. • Completed 2017 • Completed Q3 2017 • Completion 2021+ 4. COOPER & SOUTHWARK, SE1 • HB Reavis 5. BANKSIDE QUARTER, SE1 6. ONE BLACKFRIARS, SE1 7. 20 BLACKFRIARS ROAD, SE1 • 70,000 sq ft of office and retail accommodation • Temasek/Native Land/Amcorp Properties • Berkeley Group • Black Pearl • 100% pre-let to CBRE’s Global Workplace Solutions division • 5.3 acre (mixed use) • 274 residential units and 121,000 sq ft Hotel • 286 residential units and 277,000 sq ft office scheme • Completed Q1 2018 • Stage 1 delivery scheduled for 2019 • Completion scheduled for 2018 • Completion scheduled for 2020+ 10. THE SHELL CENTRE, SE1 8. WEDGE HOUSE, 40 BLACKFRIARS ROAD, SE1 • Almacantar 11. ONE WATERLOO (ELIZABETH HOUSE), SE1 • Ennismore 9. PARKSIDE, 185 PARK STREET, SE1 • 790 residential units • HB Reavis • 110,000 sq ft office and hotel scheme to be operated by • Delancey • 500,000 sq ft office scheme • 142 residential units and 750,000 sq ft office & retail Hoxton Hotel • 163 residential units with 22,500 sq ft of retail • 100% pre-let to Shell and WeWork scheme • Completion scheduled for H1 2018 • Completion scheduled for 2021+ • Completion scheduled for H2 2018 • Completion 2021+ 12. SHARD PLACE, SE1 13. BEAR GARDENS APART-HOTEL, SE1 14. 105 SUMNER ROAD & 133 PARK STREET, SE1 15. 14-21 RUSHWORTH STREET, SE1 • Sellar Property Group • Macro Investments Limited • Land Securities • MiddleCap • 148 residential units and 19,500 sq ft of retail • 75 room hotel • 200,500 sq ft office scheme • 70,000 sq ft office scheme • Completion scheduled for Q2 2019 • Completion scheduled for H2 2018 • Completion scheduled for 2022 • Completion scheduled for 2022 9 Dating back to 1144, the property was the original site of the Clink Prison and previously used as a warehouse to store cargo arriving from the river into the former ‘Clink Wharf’. Description More recently One Clink Street underwent a comprehensive refurbishment by SPPARC Architects and 8 Build Limited to provide 20,435 sq ft (1,898.5 sq m) of office, retail and ancillary space over lower ground, ground and five upper floors. Of this 6,068 sq ft (563.7 sq m) comprises two retail units at ground and lower ground. As part of the refurbishment the property was extended to include two new floors (6th and 7th), which comprise 2,540 sq ft (235.9 sq m) GIA of residential accommodation split into three apartments plus a total of 579 sq ft (53.8 sq m) of external space. The office refurbishment is ‘stripped back to shell’ specification with exposed services that retain many original features including arches and wheels from the former Victorian warehouse.