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Home , 1 Leadenhall Street, 1 Undershaft, 40 Leadenhall Street, Gracechurch Street, Leadenhall Market, Leadenhall Street

GRACECHURCH STREET

LONDON EC3

Prime City of Mixed Use Investment Opportunity 81 1 — 2

INVESTMENT SUMMARY

81-82 Gracechurch Street is located in the core of the

—— Core City of London location in close proximity to and the .

—— The property occupies a prominent location on the eastern side of Gracechurch Street.

—— The property is held on a 150 year Long Leasehold from The Master and Wardens of the Guild or Fraternity of the Body of Christ of the Skinners of London from 24th June 2011. The Headlease is geared to the higher of the Minimum Rent of £50,000 per annum and 10% of the Net Income.

—— Grade II Listed building providing 19,418 sq ft (1,804 sq m) of office, and ancillary accommodation arranged over basement, ground and four upper floors.

—— The property was extensively refurbished in 2012.

—— The office accommodation extends to 12,493 sq ft (1,161 sq m) and is multi-let to three tenants accounting for 63.44% of the income, the passing rent is £607,823 per annum, equating to a reversionary overall rent of £48.65 per sq ft.

—— The retail accommodation extends to 6,925 sq ft (643 sq m) and is multi-let to four tenants at a passing rent of £350,250 per annum equating to £50.58 per sq ft overall.

—— The total gross passing rent is £958,073 per annum (including vendor top-ups), with a WAULT of approximately 6.19 years1 to lease expiries and 4.32 years to break options. Any outstanding rent-free periods will be topped up by the vendor at completion.

—— The current head rent payable is £61,398.40, the total net rent equates to £896,674.60.

—— Offers are sought in excess of £15,000,000, subject to contract for the Long Leasehold interest reflecting a net initial yield of 5.60%2 and a capital value of £772 per sq ft, assuming purchaser’s costs of 6.73%.

1 Weighted Average Unexpired Lease Term to expiries assumes a 5 year lease extension for Planet of the Grapes Ltd. 2 Assuming vendor top-up of any outstanding rent free at completion. 81 GRACECHURCH STREET 3 — 4

LOCATION 5.

81-82 Gracechurch Street is located The property is located in close proximity to the historic Leadenhall Market which dates back to the 14th Century in the traditional core of the City and attracts significant footfall due to its lively and of London, occupying a prominent contemporary atmosphere. position on the eastern side of Gracechurch Street is one of the City of London’s major Gracechurch Street. thoroughfares linking London to and is positioned close to the ‘ Cluster’, a collection of London’s most prominent towers including 20 (‘The Walkie Talkie’), The Leadenhall Building and 30 (‘The Gherkin’).

Due to its proximity to the Bank of England and Lloyd’s of London, the sought after central location has traditionally attracted financial and insurance occupiers which today include Deutsche Bank, Rothschild & Co, Aon, AXA XL, Allianz, QBE and Willis Towers Watson.

1. 2.

6.

The area continues to experience strong demand from a number of the world’s leading professional and banking services, and more recently technology and media companies. This demand is further supported by the vibrant mix of retail and leisure amenities, with Gracechurch Street being the location of choice for many leading retailers including Gap and Marks & Spencer. 3. 4. The location is experiencing further significant growth and investment, with developments such as , 80 Fenchurch Street, 1 , and 150 Leadenhall Street amongst others due to complete over the next few years, reinforcing its position at the heart of the City of London.

1. Bank of England 5. Leadenhall Market 2. The Royal Exchange 6. 3. Sky Garden 4. Smythson 81 GRACECHURCH STREET 5 — 6

CONNECTIVITY

81-82 Gracechurch Street is ideally located to benefit from London’s efficient and rapidly expanding public Bank St. 4 mins walk 10 mins walk 10 mins walk transport network. (0.2 miles) (0.6 miles) (0.5 miles)

The property benefits from excellent transport infrastructure, being situated in close proximity to a number of Mainline Rail and stations. These stations include: Mansion House Fenchurch St. 10 mins walk 7 mins walk (0.4 miles) (0.3 miles)

Cannon St. Monument 7 mins walk 3 mins walk 12 mins walk (0.3 miles) (0.1 miles) (0.8 miles)

Source: TfL New Liverpool Street Elizabeth Line Entrance (CGI)

Bank and Monument Underground Journey Times on the Elizabeth Line Upgrade 8 mins Reading Heathrow Farringdon Whitechapel Bank Station is currently undergoing an 61 mins 33 mins 7 mins 2 mins 2 mins extensive upgrade due to be completed by 2021, with a new entrance planned at King William Street, a 4 minute walk away from the property. The interlinked stations will feature several new escalators, a new Slough Paddington Tottenham Liverpool station entrance and more room for 37 mins 10 mins Court Road Street Northern line passengers. 4 mins Canary Wharf 6 mins Proposals include:

—— New southbound tunnel and platform Elizabeth Line () for the Northern line. 81 - 82 Gracechurch Street is within a short walking Two new ticket halls are being constructed at —— New station entrances on Cannon distance (0.6 miles) of which Liverpool Street and and will be connected Street and King William Street. will act as the primary connection for Crossrail in the by underground platforms. —— Step-free access between the City of London. Northern line, DLR and the street. The railway will have an estimated 200 million travellers Due for completion in Autumn 2019, the Elizabeth Line each year and is expected to reduce London journey —— A moving walkway for quicker and (Crossrail) will deliver a direct connection between all of times by up to 70%. The new network will support major easier access. London’s main employment centres, linking Heathrow with regeneration across London and add an estimated £42bn —— More lifts and escalators to ease Paddington, the West End, the City and Canary Wharf. to the UK economy. congestion and improve accessibility. In peak times a train will run every two and a half minutes in each direction.

New Bank Station Entrance (CGI) E

AT SPITAFIELDS

81 GRACECHURCH STREET RG MARKET 7 — 8 O

ST MO TE GA

32 ALDERS

SBURY C DEVELOPMENT PIPELINE IN I F RC U S MOORGATE LIVERPOOL 24 LIV STREET ERP 21 OOL ST 4 27 81-82 Gracechurch Street is located in a thriving office location. A number

LON DON 6 of notable schemes have been developed within a 200m radius of the property, WALL 7 with several further large scale developments forthcoming. ST ST H N 3 OU E 30 N TE T 29 D 5 A 31 25 SD G I GA 19 TC LEMA H

GUILDHALL OR 22 BE CO V ST E IS T MO M 1 2 3 28 A ARK ALDERS G AD G S 17 RES O HAM R 41 ST B 20 REE T D 37 L ISHOPS 18 B N ST O ORTO THROGM HBURY ST LOT 38 30 ST. PAUL’S

13 ST MARY

PR AXE KING 8 I 8 NCES 4 23 15 ST EDLE

ST ADNE THE LEADENHALL RE TH BUILDING POUL T 14 RY 6 ST 44 CORNHILL LEADENHALL ST 43 IA ST 10 Fenchurch Avenue, EC3 , , EC3 Aurum, Lombard Street, EC3 QUEEN R 9 2 7 ICTO BANK V T S UEEN K LEADENHALL Q IN LO H 42 12 Developer Generali/CORE/Greycoat Developer WR Berkeley Corporation Developer McKay Securities 26 M C G B MARKET 35 ET 40 AR R D TRE WI U 1 S 5 ST 33 H Size 420,000 sq ft Size 387,303 sq ft (35 storeys) Size 57,480 sq ft H LL RC C U I H 39 AM C 16 9 CE EN PC Completed 2018 PC Q2 2018 PC Q1 2019 MANSION A F 3 2 S R HOUSE T G 34 FENCHURCH Comments Majority pre-let to M&G Investments Comments 53% let or under offer Comments 100% let to St James’s Place C 20 STREET ANNO N ST FENCHURCH STREET 11 CANNON 1 STREET MONUMENT 4 5 6 EASTC 36 HEA U P PPER TH G AME REA S ST T TOWER S 10 T

GE LO S ST D WER THAME

RI

B

LONDON ON BRIDGE

ND

LO 22 Bishopsgate, EC2 80 Fenchurch, EC3 150 Leadenhall, EC3

Developer AXA/Temasek/PSP/QuadReal Developer Exemplar and Partners Group Developer Mitsubishi Estate Company/Stanhope

Size 1.380M sq ft (62 storeys) Size 252,250 sq ft Size 568,000 sq ft

PC 2019 + PC Q1 2021 PC 2022 + LOCAL OCCUPIERS Comments c.800,000 sq ft is under offer Comments Under construction Comments Revised planning consent granted in 2017 DU KE ST BOROUGH REET HILL MARKET LONDON 7 8 9 BRIDGE Creative/Tech Professional Finance Insurance

1. CGI Group 11. Accenture 22. Royal Bank of Canada 33. AXA XL 2. The Office Group 12. Kennedys 23. Standard Life 34. Allianz 3. Salesforce 13. White & Case 24. Financial Reporting 35. WR Berkeley 4. WeWork 14. British Council for Offices Council 36. Prudential 5. Insightful Technology 15. Hunton & Williams / 25. Lloyds Banking Group 37. Investec 6. Splash Creative Kirkland Ellis 26. Rothschild & Co 38. Hiscox 7. Caplin Systems 16. Holman Fenwick Willan 27. Schroders 39. AIG , EC3 One Undershaft, EC3 One Leadenhall, EC3 8. Epiq Systems 17. IPS Group Ltd 28. China Construction Bank 40. Lloyd’s Register Developer TH Real Estate Developer Aroland Holdings/Perennial Developer Brookfield 9. Worldpay 18. Sidley Austin 29. Deutsche Bank 41. Towergate Insurance 10. Ventiv Technology 19. Latham & Watkins 30. Blackrock 42. Willis Towers Watson Size 909,600 sq ft Size 968,752 sq ft Size 385,000 sq ft 20. Meet Recruitment 31. ING 43. Liverpool Victoria PC 2022 + PC 2023 + PC 2023 + 21. Coventry University 32. Royal Bank of Scotland 44. Aon Comments Under construction Comments Planning consent granted Comments 100,000 sq ft under offer to Munich Re 81 GRACECHURCH STREET 9 — 10

Leadenhall 20 Fenchurch Liverpool St. 30 St Mary Axe 22 Bishopsgate Market Street Monument London Bridge London Bridge Bank Cannon St. Bloomberg HQ 81 GRACECHURCH STREET 11 — 12

THE BUILDING 1. 3.

81-82 Gracechurch Street was originally constructed in the 1850s, the elevation fronting Gracechurch Street is finished with and the side façades overlooking Bulls Head Passage are finished in glazed brickwork.

The building was extensively refurbished in the mid 1980’s, and more recently modernised in 2012, with a scheme designed by Trehearne Architects, which included the replacement of all plant and machinery.

The property comprises 19,418 sq ft (1,804 sq m) of office, retail and ancillary accommodation arranged over basement, ground and four upper floors. The offices are accessed via a newly refurbished reception (2018) from Gracechurch Street with the retail units benefitting from dedicated access off Gracechurch Street and Bulls Head Passage.

2.

SPECIFICATION

81-82 Gracechurch Street The building benefits from the following specification: underwent a significant programme —— VRF air conditioning system; of refurbishment in 2012 to upgrade —— Metal tile suspended ceilings; the building’s plant and machinery. —— LED lighting; —— Raised floors on the 1st and 2nd floors and trunking on the 3rd and 4th floors; This included works to the air conditioning systems together with lift replacement. —— Finished floor to ceiling heights typically ranging from 2.5 m to 2.73 m across the upper floors; —— Male and female WCs on all floors; —— Tenant shower and changing facilities on the 2nd floor; —— Refurbished manned reception; —— Passenger lift.

1. Exterior Detail 3. EE, 81 Gracechurch Street 2. Reception 81 GRACECHURCH STREET 13 — 14

ACCOMMODATION

The property has been independently measured by Basement – Retail 4,264 sq ft / 396.1 sq m 1st Floor – Office 3,253 sq ft / 302.2 sq m 2nd Floor – Office 3,233 sq ft / 300.4 sq m Plowman Craven in accordance with the RICS Code of Measuring Practice 6th Edition and the International Measuring Standards IPMS. The survey is assignable to a purchaser and a Duty of Care Letter can be provided.

A copy of the full measured survey and associated floor plans can be downloaded from the data room.

Floor Use sq ft (NIA) sq m (NIA)

4th Office 2,848 264.6 Bulls Head Passage Bulls Head Passage 3rd Office 3,159 293.5

2nd Office 3,233 300.4

1st Office 3,253 302.2

Ground Retail 81 GS 977 90.8

Retail 82 GS 947 88.0

Retail 1 BHP 191 17.7

Gracechurch Street Gracechurch Street Gracechurch Street Retail 9-10 BHP 546 50.7

Basement Retail 82 GS 4,264 396.1

Total 19,418 1,804.0 Ground Floor – Retail 2,661 sq ft / 247.2 sq m 3rd Floor – Office3,159 sq ft / 293.5 sq m 4th Floor – Office2,848 sq ft / 264.6 sq m

Retail 1 BHP

Retail 9-10 BHP Bulls Head Passage Bulls Head Passage

Retail 82 GS Retail 81 GS Bulls Head Passage

Reception N

Office Reception Core Retail Storage

For indicative purposes only. Not to scale. Gracechurch Street Gracechurch Street Gracechurch Street 81 GRACECHURCH STREET 15 — 16

2. 1. 2nd Floor, 2. Reception First Title Insurance 3. 2nd Floor, First Title Insurance

1.

3. 81 GRACECHURCH STREET 17 — 18

TENURE CORNHILL

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N

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V

A

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T

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Leadenhall Court N I

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T I Lloyd's

H The property is held on a 150 year Long Leasehold from W Building

T E E R The Master and Wardens of the Guild or Fraternity of T S

H C R the Body of Christ of the Skinners of London from U H C E L eade C nh all M W A arket a 24th June 2011. R rd B G dy

L The Headlease is geared to the higher of the Minimum EAD ENH ALL

PL AC Rent and 10% of the Net Income. The geared rent is E

E

G

A

S

S calculated annually on the 1st April of each year of A P B ul ls H T e E ad B P E as E s R ag E e T H the term. The current head rent payable is £61,398.40, S I V E

P A S S A the total net rent equates to £896,674.60. G E

R is in B The Minimum Rent is currently £50,000 per annum o l Sh la ip r Tav d ern Pa ssa ET and is reviewed every 10 years to the greater of the ge TRE E S LIM Minimum Rent passing and 5% of the average annual CULLUM STREET Net Income over the period of five years immediately

XL House preceding the relevant review date. The next review N date is the 24 June 2021. Sackville House

Wa The property is registered under title no: AGL266316. rd Bdy

St Gabriel Fen Church

Allianz House TENANCY SCHEDULE

DEMISE TENANT AREA LEASE LEASE RENT NEXT BREAK NEXT RENT ANNUAL RENT INSIDE / COMMENTS SQ FT SQ M FROM EXPIRY START BREAK CLAUSES REVIEW RENT £psf OUTSIDE ACT

4th Floor, 81 Gracechurch Street FCMB UK Ltd 2,848 264.6 19/07/2018 18/07/2028 19/07/2019 19/07/2023 Tenant 19/07/2023 £132,144.00 £46.40 Outside If the Tenant does not exercise the break they are entitled to a further 9 months' rent free until 18.04.2024. The vendor will top-up any outstanding rent-free at completion.

3rd Floor, 81 Gracechurch Street Protean Investment 3,159 293.5 17/09/2018 16/09/2023 - 17/09/2021 Tenant - £161,109.00 £51.00 Outside The Tenant is paying half rent of £80,554.50 until 16.11.19. If the Tenant does not exercise Risks Ltd the break they are entitled to a further 5 months' rent free until 16.02.2022.

2nd Floor, 81 Gracechurch Street First Title Insurance Plc 3,233 300.4 17/09/2012 16/09/2022 - - - - £151,920.00 £46.99 Outside

1st Floor, 81 Gracechurch Street FCMB UK Ltd 3,253 302.2 19/07/2018 18/07/2028 19/04/2019 19/07/2023 Tenant 19/07/2023 £162,650.00 £50.00 Outside If the Tenant does not exercise the break they are entitled to a further 2 months’ rent free until 18.09.2023. The vendor will top-up any outstanding rent-free at completion.

81 Gracechurch Street - Retail EE Ltd 977 90.8 28/11/2014 27/11/2024 - - - 28/11/2019 £113,000.00 £115.66 Inside

82 Gracechurch Street - Retail Robert Dyas Property 5,211 484.1 25/03/2010 24/03/2020 - - - - £159,750.00 £30.66 Inside Ltd

1 Bulls Head Passage - Retail Zdenka Trutzova 191 17.7 28/02/2012 27/02/2022 - - - - £20,000.00 £104.71 Inside

9 & 10 Bulls Head Passage - Retail Planet of the Grapes Ltd 546 50.7 19/10/2017 04/04/2031 - - - 19/10/2022 £57,500.00 £105.31 Outside As part of the 2017 rent review, the rent has fixed incremental increases over the next 5 years as follows - Year 1 - £53,500 p.a, Year 2 - £54,500 p.a, Year 3 - £55,500 p.a, Year 4 - £56,500 p.a & Year 5 - £57,500 p.a. The vendor will top-up any outstanding rent-free at completion. A lease extension for a further 5 years until April 2031 has been agreed with the tenant.

Total Gross Rent 19,418 1,804.0 £958,073.00 * £49.34

Current Head Rent Payable £61,398.40

TOTAL NET RENT £896,674.60

*Total rent is inclusive of vendor rental top-up. 81 GRACECHURCH STREET 19 — 20

TENANT COVENANT 1. 2.

The covenant information for the five tenants which account for the highest percentage of income at 81-82 Gracechurch Street is set out below.

FCMB Bank (UK) Limited 30.77% of Rent Passing First Title Insurance Plc 15.86% of Rent Passing FCMB Bank (UK) Limited is an independently incorporated, First Title Insurance Plc is a UK regulated specialist wholly-owned subsidiary of First City Monument Bank Ltd insurance company, dedicated to helping property (FCMB), a member of the FCMB Group PLC, a leading owners, developers and lenders protect investment financial services group based in Nigeria, listed on the and maximise returns. Nigerian Stock Exchange. In the year ended 31 December 2017, First Title reported At December 2017, FCMB had 3.7 million customers and a statutory accounts profit after tax of £2.1m. 204 branches in Nigeria and a wholly owned subsidiary The company has a D&B rating of 4A1. in the UK. Further information can be found at www.firsttitle.eu In the year ended 31 December 2017, FCMB Bank (UK) Limited reported a profit of $1.12m. The company has a D&B rating of 4A1. Further information can be found at www.fcmb.com 3. EE Ltd 11.79% of Rent Passing EE, part of the BT Group is the largest and most advanced digital communication company in Britain, delivering Protean Investment Risks Ltd 16.82% of Rent Passing mobile and fixed communications services. Protean Investment Risks Ltd is a Registered Lloyd’s Broker, EE has approximately 553 retail stores and services more regulated by the Financial Conduct Authority specialising than 31 million connections across its mobile, fixed and in the investment industry, financial services and wholesale networks. technology sectors. Under the umbrella of the BT Group, the company has The company has a D&B rating of F2. reported a turnover of £23.7bn in 2018 and a profit of £2.6bn before tax. Further information can be found at www.proteanrisk.com The company has a D&B rating of 5A1. Further information can be found at www.btplc.com

Robert Dyas Property Ltd 16.67% of Rent Passing Robert Dyas is a UK hardware retailer founded in London in 1872 with 95 stores spread across the South of England. Since 2012, Robert Dyas has been owned by Theo Paphitis, the entrepreneur and long-time star of BBC’s Dragons’ Den. In the year ended 31 April 2017, Robert Dyas reported an increase in turnover to £123.4m.

The company has a D&B rating of 2A2. 1. Robert Dyas, 82 Gracechurch Street 2. Planet of the Grapes, Further information can be found at 9 & 10 Bulls Head Passage www.robertdyas.co.uk 3. First Title Insurance, 2nd Floor, 81 Gracechurch Street 81 GRACECHURCH STREET 21 — 22

HEADLEASE SUMMARY 1.

Term Alienation 150 years from 24 June 2011, expiring 23rd June 2161. a) Not to assign the whole of the premises without the prior written consent of the Landlord, not to Landlord be unreasonably withheld or delayed. The Master and Wardens of the Guild or Fraternity b) Not to underlet the whole or any part of the premises of the Body of Christ of the Skinners of London. other than in compliance with part 2, schedule 5 of the Headlease. Premises c) Not to underlet at anything other than the best All those premises known as 80, 81 and 82 Gracechurch terms reasonably obtainable in the open market. and 1, 9, 10, 11 and 12 Bulls Head Passage. Repair User Full repairing terms. Not without the consent in writing of the Landlord, such consent not to be unreasonably withheld, to use the Alterations premises otherwise than as office, retail, restaurant or 1. The Tenant shall not carry out any structural alterations bar, or any combination of those uses, and for storage to the premises by which the extent of the Net Internal or ancillary use. Area will be more than 5% less than the NIA as expressed in the Certificate of Practical Completion. Not to use the premises for residential purposes. 2. The Tenant shall not carry out any other alterations to Rent Calculation the premises without the prior consent of the Landlord The annual rent payable during each accounting period (not to be unreasonably withheld or delayed) save that (yearly calculated on the 1st April) will be an amount equal the Tenant may carry out alterations without consent to the greater of: which: a) The Minimum Rent; and a) Do not affect the exterior of the premises or b) 10% of the Net Income (as defined). the building; b) Do not affect the structural integrity of the building; The Net Income includes rents received on let c) Non-structural alterations including the erection accommodation and deemed notional rent payable and removal of demountable partitioning. on vacant accommodation.

The current head rent payable is £61,398.40, Insurance the total net rent equates to £896,674.60. The Tenant is obliged to keep the premises insured in the joint names of the Landlord and the Tenant. Minimum Ground Rent £50,000 per annum until the first review date.

Minimum Ground Rent Review The minimum ground rent is to be reviewed every 10 years to the greater of the Minimum Rent passing and 5% of the average annual Net Income (as defined) over the period of five years immediately preceding the relevant review date.

The next review date is 24 June 2021.

1. Building Exterior FURTHER CONTACT INFORMATION

Planning For further information or to arrange an inspection please contact: The property is situated in the City of London. James Abrahams The property is Grade II listed under list entry [email protected] number 1064670 and lies within the Leadenhall 020 7588 4433 Market Conservation Area. Jonathan Ruback VAT [email protected] The property is not elected for the purposes 020 7588 4433 of VAT. Matt Millman EPC [email protected] 020 7588 4433 81 Gracechurch Street has an EPC rating of B (49). Marsha Rabinovich [email protected] A copy of the certificate can be downloaded 020 7588 4433 from the data room.

Data Room

Further information can be downloaded from the data room at www.81-82gracechurchstreet.com

Proposal

Offers are sought in excess of £15,000,000, subject to contract for the Long Leasehold interest reflecting a net initial yield of 5.60%* and a capital value of £772 per sq ft assuming purchaser’s costs of 6.73%.

*Assuming vendor top-up of any outstanding rent free at completion.

Allsop LLP on its behalf and for the Vendors or Lessors of this property, whose Agents they are, give notice that: These particulars are set out as a general outline only for guidance to intending Purchasers or Lessees, and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Allsop LLP has any authority to make any representation or warranty whatsoever in relation to this property. Unless otherwise stated, all prices and rents are quoted exclusive of VAT. November 2018.

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