Gracechurch Street
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GRACECHURCH STREET LONDON EC3 Prime City of London Mixed Use Investment Opportunity 81 GRACECHURCH STREET 1 — 2 INVESTMENT SUMMARY 81-82 Gracechurch Street is located in the core of the City of London — Core City of London location in close proximity to Leadenhall Market and the Bank of England. — 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, retail 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 Bridge to Bishopsgate and is positioned close to the ‘Tower Cluster’, a collection of London’s most prominent towers including 20 Fenchurch Street (‘The Walkie Talkie’), The Leadenhall Building and 30 St Mary Axe (‘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 22 Bishopsgate, 80 Fenchurch Street, 1 Leadenhall Street, 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. 30 St Mary Axe 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 Liverpool St. Aldgate 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 London Underground stations. These stations include: Mansion House Fenchurch St. 10 mins walk 7 mins walk (0.4 miles) (0.3 miles) Cannon St. Monument London Bridge 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 Stratford Station Upgrade 8 mins Reading Heathrow Bond Street 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 (Crossrail) 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 Liverpool Street Station which Liverpool Street and Moorgate 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 LONDON WALL 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 The Scalpel, Lime Street, EC3 Aurum, Lombard Street, EC3 QUEEN TOR BANK 9 2 7 IC T V 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.