For Sale - Office and Retail Building of Interest to Investors, Developers & Owner Occupiers

69–89 MILE END ROAD, WHITECHAPEL, LONDON E1

FOR SALE - OFFICE AND RETAIL BUILDING OF INTEREST TO INVESTORS, DEVELOPERS & OWNER OCCUPIERS

98,684 FT² (9,168 M²) GIA KEY INVESTMENT CHARACTERISTICS

_ Dept. W is a mixed use iconic building consisting of office and retail. It is situated in the heart of Whitechapel, comprising 98,684 ft² (9,168 m²) GIA arranged over basement, ground and three upper floors.

_ Dept. W is a 1920’s art deco building, which formerly housed the famous Wickhams department store.

_ Located 200 yards east of Whitechapel’s proposed Elizabeth Line station. Occupiers include Tesco, Sports Direct, Central Working, Foxcroft & Ginger and KANO Computing.

_ The property is held by way of 4 Freehold and 6 Long Leasehold Interests.

_ The site covers an area of 0.65 acres.

_ Planning consent has been granted as of 31st March 2016 for a Buckley Gray Yeoman Architects designed scheme to improve the existing 1st and 2nd floor office accommodation and replace the existing 3rd floor with a new two storey extension. A new central core would serve the upper floors accessed from a new main entrance fronting Mile End Road.

_ Current passing rent of £747,982.50 per annum.

_ Vacant possession of the 1st to 3rd floors can be provided by February 2017.

_ The planning permission extends the existing building to 127,775 ft² (11,871 m²) gross external area and 97,553 ft² (9,063 m²) net internal area of B1 on 1st to 4th floor with retail and leisure use (use class A1/A2/A3/A4/B1/D1/D2) on ground and lower ground.

_ Offers in excess of £38,500,000, representing £390.00 ft² on the existing gross internal area.

01 DEPT. W 02 Royal London Whitechapel Cambridge Heath Rd Hospital Station Elizabeth Line Entrance

03 DEPT. W A RICH BUILDING HISTORY

This iconic property was for the early part of the 20th Century occupied primarily by Wickhams Department Store, heralded as the “Harrods of the East End”.

The building was designed to upstage Selfridges department store on Oxford Street, having a grand neo-classical colonnaded front but with a central tower and clock that Selfridges did not have.

Mr Wickham’s store was a grand and glorious East End emporium heralded as the “Harrods of the East End”. His highly respected store was a celebrated part of the community for over 40 years. At the time that Mr Wickham was putting together his ﬁrst design plan, a certain Mr Spiegelhalter had a thriving jewellery business along that particular stretch of the Mile End Rd.

It’s not known why, but the jeweller, having initially agreed to re-locate, had a change of heart. The story goes that Mr Spiegelhalter was made an offer of ‘having the floor covered with sovereigns’ to move out. His response was, “only if they are stood on edge”. He then wasn’t in the mood to move until 1982 and the front of his shop still stands deﬁantly proud in the middle of the grand colonnade.

04 LOCATION

Dept. W is located approximately 5 minutes walk east of the proposed Whitechapel Elizabeth Line station and approximately 7 minutes walk west of Stepney Green station. It’s situated in a prominent position on the north side of Mile End Road at its junction with Cleveland Way.

This iconic building is located three miles to the east of the City of London within Tower Hamlets with a substantial frontage onto Mile End Road, which links East London and the City.

The surrounding area is due to dramatically change with the opening of the Elizabeth Line in 2018. Further, Tower Hamlets recent consultation paper proposes c.£900M of redevelopment in the area over the next 15 years to revitalise Whitechapel Road with new offices, shops and homes funded by a mix of grants and private finance.

Whitechapel Vision to provide:

_ Elizabeth Line to open in 2018.

_ 3,500 new homes by 2025.

_ 5,000 new jobs.

_ Civic redevelopment of the Old Royal London Hospital.

_ Transforming Whitechapel Road into a destination shopping area for London.

_ Creating 7 new public squares and open spaces.

_ Creating a world class Life Science Campus at Queen Mary University London.

05 DEPT. W 06 LOCATION

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H and Hammersmith & City lines). Bethnal Green station d a o R us t n (Central line) to the north is less than a 10 minute walk away. Weavers e a lac M t P e olm e lc tr Ma S Fields 05 m a ne G h The new Elizabeth Line station will connect Whitechapel lts La nue ng Co e l i ee v o ss hr a T A b t M r e to Canary Wharf and Heathrow via Central London. e

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07 DEPT. W

Ste pne y W ay

ELIZABETH LINE

As the City moves east, Whitechapel is set Elizabeth Line times from to become one of the most connected places Whitechapel (in mins) in the capital by public transport, with a significant rail and tube interchange at Whitechapel station. 03 The Elizabeth Line will run 118 km from Maidenhead and Heathrow in CANARY WHARF the west, through new twin-bore 21km tunnels under central London to Shenfield and Abbey Wood in the east.

It will bring an additional 1.5 million people within 45 minutes commuting distance of London’s key business districts.

Around 200 million passengers will travel on the Elizabeth Line 05 each year and the route will provide a 10% increase to rail capacity STRATFORD in the capital.

The new Whitechapel Elizabeth Line station will use the existing Whitechapel Road entrance to the London Underground and London Overground station, with a new separate entrance onto Cambridge Heath Road providing access to all lines and within a 07 5 minutes walk (350 yards) of Dept W. CITY AIRPORT The Elizabeth Line platforms will be in deep tunnels to the north of the existing station but they will all share a concourse, ticket hall, gateline and station operations room, leading to a fully integrated station that Top: New over-station development from Durward Street. Above left: New concourse. provides an easy step-free interchange between the Elizabeth Line, Above right: New secondary Elizabeth Line entrance at Cambridge Heath Road. Hammersmith and City, District and Overground lines. Stratford 10 5 mins BOND STREET Reading Heathrow Bond Street Farringdon 63 mins 38 mins 10 mins 5 mins WHITECHAPEL

Slough Paddington Tottenham Liverpool 41 mins 13 mins Court Road Street 38 7 mins 2 mins Canary Wharf HEATHROW 3 mins AIRPORT

08 WHITECHAPEL DEVELOPMENT 5,000 Whitechapel has a rich history often characterised by extremes of social conditions in the times of Victorian London. NEW JOBS

Notoriety Whitechapel was at the centre of national attention during the tragic murders committed by Jack the Ripper, the Siege of Sidney Street by Winston Churchill and the Second World War bombing of the East End. Within a short walk of Dept. W is the notorious The Blind Beggar pub where Reggie Kray stabbed to death Jack ‘The Hat’ McVitie.

Royal London Hospital Opposite Whitechapel station is the Grade II of the Whitechapel Masterplan designed to listed old Royal London Hospital site which manage the regeneration and redevelopment was originally opened in 1757 and is now dwarfed around Whitechapel Road and Cambridge Heath by the £1bn world class hospital facility that Road over the next 10 to 15 years. replaced it in 2012. The old building was recently The Civic Hub regeneration of the old Royal purchased by Tower Hamlets Council to be the London Hospital building which will house new town hall. The site received planning in a new 21st Century town hall will be set November 2015 for a £77M makeover by around a new high quality Civic Square AHMM architects and is due to be open in 2019. to encourage complementary community and commercial uses including a media hub, The new Town Hall will be the central part retail and restaurants.

09 DEPT. W WHITECHAPEL DEVELOPMENT 3,500 NEW HOMES BY 2025

Life Science Campus To the rear of the site is a proposed new life The new Elizabeth Line entrance on science campus to support health, bio tech and Cambridge Heath Road will sit adjacent life sciences research. The Whitechapel Vision to the Sainsbury’s Superstore which within aims to deliver over 3,500 new homes by 2025, the Whitechapel Vision will be re-developed generate 5,000 new jobs, create 7 new public to provide a larger store with new residential squares and a world class Life Science Campus at and community facilities. Queen Mary University London which operates 5 campuses centred around Whitechapel and has Culture over 17,500 students. Dept. W sits adjacent to the Genesis Cinema complex which has been used for entertainment purposes since the mid 19th century. Charlie Chaplin and Laurel & Hardy are both known to have performed here.

At 109 Mile End Road is one of Conde Nast’s boutique hotels of the year, 40 Winks 07 (www.40winks.org). The hotel is a particular NEW PUBLIC favourite for fashion folk and artists and hosts many fashion shoots. SPACES

10 EXISTING BUILDING

Dept. W occupies a site totalling c.0.65 acre constructed over basement, ground and three upper floors, extending to a gross internal area of c. 98,684 ft2 (9,168 m2) arranged as:

Existing Floor Areas 3 Floor Use Area m² ft²

3rd Offices GIA 848.2 9,130

2nd Leisure and Assembly GIA 1,802.0 19,397 2

1st Offices GIA 2,069.4 22,275

Ground Retail, Office and Café GIA 2,317.0 24,940 1

Basement Retail or Storage GIA 2,131.4 22,942

Total 9,168.0 98,684 G

*Net Internal areas for the Part Ground, First & Third Floors available upon request.

11 DEPT. W EXISTING FLOOR PLANS

Basement Ground Floor 1st Floor 2nd Floor 3rd Floor Retail / Storage Retail / Office / Café Office Leisure and Assembly Office

22,942 ft² / 2,131.4 m² (GIA) 24,940 ft² / 2,317.0 m² (GIA) 22,275 ft² / 2,069.4 m² (GIA) 19,397 ft² / 1,802.0 m² (GIA) 9,130 ft² / 848.2 m² (GIA)

IF T

LIFT

Mile End Road Mile End Road Mile End Road Mile End Road Mile End Road O O P E P E

H O N N

R OPEN VOID V O I

D V O I

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G D

LIFT DISUSED

WC FROM PHASE 1 WORKS

Usable Space Reception Core Floor plans not to scale, for indicative purposes only.

12 13 DEPT. W 14 DEVELOPMENT POTENTIAL

The planning permission dated 31st March 2016 proposes a comprehensive refurbishment, change of use and extension of the former department store to provide a co-working office hub for startups and SMEs with ground floor and basement retail and commercial uses.

_ The front elevation of the former department store would 4 be refurbished with new shopfronts installed, together with modern awnings.

_ The existing 3rd floor mansard extension would be removed.

_ A new modern two storey roof extension erected at 3 3rd and 4th floor levels.

_ A new central core would serve the upper floors accessed from a new main entrance/reception from Mile End Road. 2 _ Make good and repair all existing ground floor stonework, original windows etc.

Building Arrangement 1 4th B1 Office

3rd B1 Office

2nd B1 Office G

1st B1 Office

Ground A1–4 Retail + B1 Office

Basement Flexible A1/A3 + B1 Office + D1/D2 B

15 DEPT. W 16 17 DEPT. W CGI for guidance purposes only. Not a statement of fact. DEVELOPMENT POTENTIAL

Planning permission was granted in March 2016 for the comprehensive refurbishment, change of use to the second floor and extension of 69-89 Mile End Road to provide 127,775 ft² (11,871 m²) Gross External Area and 97,553 ft² (9,063 m²) Net Internal Area of B1 accommodation on 1st to 4th floors, with A1, B1, café and gym accommodation on ground and lower ground floors.

The Buckley Gray Yeoman designed scheme will provide the following accommodation:

Gross External Areas

Floor Use m² ft² 4th Offices 966 10,398 3rd Offices 1,523 16,393 2nd Offices 1,988 21,397 1st Offices 2,331 25,090 Ground Retail, Office and Café 2,499 26,899 Basement Retail and Leisure 2,564 27,598 Total 11,871 127,775

Net Internal Areas

Floor Use m² ft² 4th Offices 910 7,696 3rd Offices 1,444 12,992 2nd Offices 1,885 17,491 1st Offices 2,229 20,893 Ground Retail, Office and Café 2,387 17,190 Basement Retail and Leisure 2,443 21,291 Total 9,063 97,553

18 PROPOSED FLOOR PLANS

Basement Ground Floor 1st Floor Retail/Leisure Retail / Office / Café Office 21,291 ft² / 2,443 m² (NIA) 17,190 ft² / 2,387 m² (NIA) 20,893 ft² / 2,229 m² (NIA)

UNIT A UNIT B

Mile End Road Mile End Road UNIT C Mile End Road

UNIT D

Usable space Reception Core

19 DEPT. W PROPOSED FLOOR PLANS

2nd Floor 3rd Floor 4th Floor Offices Offices Offices 17,491 ft² / 1,885 m² (NIA) 12,992 ft² / 1,444 m² (NIA) 7,696 ft² / 910 m² (NIA)

Mile End Road Mile End Road Mile End Road

Floor plans not to scale, for indicative purposes only.

20 TENANCY SCHEDULE

Floor Planning m2 ft² Tenant Current Rent Lease Term Comments Use Approx Approx

3 years to expire on 10/02/17 with 3rd B1 848.20 9,130 Wellarm Services Ltd £60,000.00 landlord’s rolling 6 month break. 3 years to expire on 04/12/16 with 2nd D2 1,802.03 19,397 Castigliane Commercial Ltd £188,370.00 mutual rolling 6 month break.

1st B1 2,069.40 22,275 City Lounge Ventures Ltd £246,362.50 3 years to expire 27/02/17

Next review due 17th July 2015. Review is Ground A1 419.17 4,512 Tesco Stores Ltd £83,250.00 15 years to expire 16/07/25 based on cap and collar of 1% and 4%.

Ground A1 774.43 8,336 Sportsdirect.com Retail Ltd £90,000.00 10 years to expire 14/09/21 Next review due 15th Sept 2016.

3 years to expire 02/03/17 with Landlords Ground A1 195.00 2,099 F&G @ Dept. W Ltd £25,000.00 Current income plus turnover rent. break after 03/06/15 on 3 months’ notice. 5 years to 25/06/19 with mutual break Ground B1 389.82 4,196 Kano Computing Ltd £55,000.00 at 3 years subject to 6 months’ notice.

Basement D2 2,131.36 22,942 Vacant

Total £747,982.50

* Areas stated above are approximate gross internal areas of the let accommodation.

21 DEPT. W TENANT COVENANTS LG FLOOR LETTING

Tesco Stores Ltd Kano The Gym Group

Year Ending Feb 2013 Feb 2014 Feb 2015 Kano is a DIY computer kit designed to help people of all ages to Heads of terms are being agreed with the Gym Group on the lower ground floor for 20,311 Ft² GIA comprising a dedicated ground floor Turnover £42.662 Bn £34.547 Bn £42.278 Bn assemble a computer from scratch and to learn basic coding skills. In November 2013 Kano initiated a crowd funding Kickstarter entrance with stairs and lift leading to a basement gym space. Pre Tax Profit £921 M £1.696 Bn -£3.727 Bn campaign, which raised $1.5M in one month to help launch the mass These works have already been completed as of 2014. Total Net Worth £3.113 Bn £3.038 Bn -£98.0 M production of the device. The accommodation is to be handed over in shell condition. The Landlord will undertake to provide the following:

_ Provide fully self-contained premises including internal stairs and Sports Direct.Com Foxcroft & Ginger DDA access lift connecting ground and lower ground. _ All capped off services to the unit with utility requirements (retail) Foxcroft & Ginger opened in Soho in January 2010. The restaurant in agreed locations. provides an all day food and drink experience offering high quality _ Provision of plant area – size and location to be agreed on site. Year Ending Apr 2013 Apr 2014 Apr 2015 coffee, food and alcohol. Turnover £1.677 Bn £1.864 Bn £2.074 Bn Term: Pre Tax Profit £178.6 M £202.6 M £262.9 M 20 year lease inside the L&T Act 1954 from completion. The tenant Total Net Worth £489.5 M £665.6 M £872.4 M will have an option to determine the lease at the 15th anniversary. Years 1-5: £18.00 /ft² Years 6-10: £19.80 /ft² Years 11-15: £21.78 /ft² City Lounge Ventures Years 16-20: £23.96 /ft² The tenant will have the benefit of 12 months’ rent free from (t/a Central Working) commencement of the term.

Established in May 2011, Central Working provides invaluable tools to Rent Review pattern: help small and medium enterprises to grow. They currently have four The rent will be reviewed every 5th year on an upward only basis ‘clubs’ which provide a collaborative environment for businesses to and will increase at each review by 10%. foster collaboration and peer development. Central Working has three sites in London, with Dept W running an “escalator” service in Planning: partnership with Barclays. The tenant is seeking planning consent for 24 hour opening. Further information is provided at www.centralworking.com about their existing clubs in Bloomsbury, Shoreditch, Whitechapel and Deansgate, Manchester.

22 23 DEPT. W 24 FURTHER INFORMATION to 16 27 Tenure VAT 1 0 The property is held part Freehold and part The property has been elected for VAT 28 to 39 Long Leasehold under 10 separate Land Registry purposes, however it is anticipated that the 2 0

to 3 2 6 4 titles, four of which are held freehold and six to sale will be treated as a Transfer of a Going 40 to 68 51 long leaseholds within dates from 25/03/1670 Concern (TOGC).

for a term of 500 years. Further information is

2 available on request. 2

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1 Current passing rent of £747,982.50 /A. a

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1 Price 16 1 to 107 ell Cromw Lodge 99 Offers in excess of £38,500,000, representing £390 93

ESS 1 95 1 0 91 ft² on the existing gross internal area. 9

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25 DEPT. W 26 FURTHER INFORMATION

To access the full data room, please contact sole agents:

Shaun Simons James Abrahams 07788423131 020 7588 4433 [email protected] [email protected]

Michael Raibin Matthew Millman 07880795679 020 7588 4433 [email protected] [email protected]

Colliers International & Allsop, give notice that these particulars are set out as a general outline only for the guidance of 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 Party 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 Colliers International & Allsop has any authority to make any representation or warranty whatsoever in relation to this property. October 2016.

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