CLERKENWELL ROAD LONDON EC1
MULTI-LET FREEHOLD INVESTMENT FOR SALE INVESTMENT HIGHLIGHTS
• Freehold.
• Prominently located, at the heart of Farringdon.
• Excellent transport connectivity which will be further enhanced by the opening of the Elizabeth Line at the end of 2018.
• A Ben Adams Architects designed warehouse style office redevelopment completed to an exceptional standard during 2017.
• 8,954 Ft2 (831.9 M2) mixed use building.
• Multi let to five tenants producing a total passing rent of £564,779 per annum, (£63.08 Ft2).
• A weighted average unexpired lease term in the region of 7.07 years to lease expiries (approximately 4.16 years to break).
• Offers are invited in excess of £9,975,000 (£1,114 /Ft²), subject to contract and exclusive of VAT.
• A net initial yield of 5.31% (assuming acquisition costs of 6.69%).
LOCATION
50 — 54 Clerkenwell Road is situated Clerkenwell Road and St John Street at the heart of Clerkenwell one of London’s have also become synonymous with most fashionable office districts. It benefits interior and furniture showrooms, drawing from a prominent position on the northern customers from across the UK seeking side of Clerkenwell Road approximately cutting edge designs for both commercial 100 metres to the east of its junction with and residential properties. St John Street. New trend setting restaurants such Enjoying a rich economic history as Granger & Co, Modern Pantry, Clerkenwell has blossomed in recent years Albion, Sosharu and Luca have opened attracting a diverse range of businesses as in Clerkenwell to satisfy the diverse well as becoming the centre of London’s workforce increasing the cosmopolitan world renowned Tech Belt and the hub for feel to the area. creative industry in Europe.
Clerkenwell’s appeal will be further enhanced by the opening of the Elizabeth Line in 2018, which is expected to be the catalyst for further growth to this exciting office market.
The areas unique blend of building stock and excellent transport connections has and continues to attract some of the world’s brightest and most exciting businesses. Office tenants such as Agent Provocateur, Alexander McQueen, Amazon.com, Adidas, Tesco Digitial, Kohler, Publicis Groupe and Zaha Hadid Architects have all chosen Clerkenwell as their home.
CITY RD
CITY RD
AMWELL ST 37 LOVER ST AREA MAPBATH ST LEVER ST 10 YARDLEY ST RADNOR ST
CENTRAL ST
PERCIVAL ST SKINNER ST SEWARD ST
FARRINGDON RD 46 SPAFIELD ST 26 EXMOUTH MARKET 18 OLD STREET
PEAR TREE ST Food /Dining Leisure /Culture
GOSWELL RD MALLOW ST
44 BATH ST ST JOHN ST COMPTON ST 1 Granger & Co. 26 Charterhouse Square
BASKTWICK ST 2 HIX OysterOLD ST & Chop House 27 St James Church
3 The Modern Pantry 28 SmithfieldFEATHERSTONE ST Market SANS WALK GEE ST WOODBRIDGE ST DALLINGTON ST 4 Sosharu 29 Hoxton Gallery
ST JAMES WALK 29 5 St. John 30 Frameless Gallery BREWHOUSE YARD BANNER ST
SEKFORDE ST 19 WHITECROSS ST 40 NORTHBURGH ST BOWLING GREEN LN 6 Luca 31 Museum of the Order ofCITY RD Saint John GARRETT ST BERRY ST 20 7 Pho 32 The Old Sessions House 27 OLD ST PEAR TREE COURT 1 17 42 8 POLPO Smithfield 33 The Zetter Hotel AYLESBURY ST WARNER ST GREAT SUTTON ST 9 Byron 34 The Zetter Townhouse Clerkenwell 12 BALTIC ST ROSEBERY AVE 39 10 Palatino 35 Malmaison RAY ST 34 3 45 43 11 Burger & Lobster 36 The Rookery 16 22 GOLDEN LANE DUFFERIN ST 21 CLERKENWELL RD GOSWELL RD 12 Sushi Tetsu 37 Otium Health & Leisure CLERKENWELL GREEN ST JOHNS SQUARE ALBEMARLE WAY HERBAL HILL 32 33 41 30 13 Smiths of Smithfield 38 Fabric
BACK HILL 23 15 14 VinotecaFORTUNE ST Farringdon CLERKENWELL RD 6 15 Brew Dog ST JOHN’S PI 31 ST JOHN ST 4 BRITTON ST 7 16 The Artisan Of Clerkenwell GRAY'S INN ROAD FARRINGDON RD FANN ST
17 The Slaughtered Lamb ShoppingST BATH FINSBURY SQUARE FINSBURY BRISET ST TURNMILL ST 18 The Peasant HATTON WALL 19 Look mum no hands! 39 Vitra ALBION PL 26 20 The Gibson 40 Koleksiyon 11 21 Benugo 41 The Fold EAGLE CT 35 BENJAMIN ST 22 J + A Cafe 42 Ocee Design ST CROSS ST 23 Anfa Cafe 43 Boss Design Group
KIRBY ST 24 Bea’s of Bloomsbury Bakery 44 Knoll International 9 5 CARTHUSIAN ST HATTON GARDEN 36 8 14
LEATHER LANE 38 FARRINGDON COWCROSS ST BARBICAN 25 Dose 45 Duravit 2 GRAY'S INN ROAD 24 LINDSEY ST 38
FARRINGDON RD LONG LANE 13 GREVILLE ST
28 25 ALDERSGATE ST
CHARTERHOUSE ST
CHANCERY LANE
MOORGATE
HOLBORN CIRCUS WEST SMITHFIELD
LONDON WALL EXCEPTIONAL CONNECTIVITY
50 — 54 Clerkenwell Road benefits from When the Elizabeth Line opens at the end exceptional transport connectivity. The of 2018, Farringdon will become one of the closest station being Farringdon where the UK’s busiest stations and will be within one Elizabeth Line (Crossrail), Europe’s largest hour commute for approximately a quarter infrastructure project is nearing completion. of the UK’s population. It will also be the It will connect and reduce journey times only interchange station for Underground, between London’s main business districts; Thameslink, National Rail and Elizabeth linking to Heathrow, Paddington, the West Line Services. End, the City, Canary Wharf and Stratford.
Station Distance Walking Time Services
Farringdon 450 metres 7 min
Barbican 450 metres 7 min
Old Street 900 metres 12 min
Chancery Lane 1.1 kilometres 15 min
Elizabeth Line (Crossrail) Stratford 10 mins Reading Heathrow Bond Street Whitechapel 57 mins 32 mins 4 mins 5 mins Farringdon
Slough Paddington Tottenham Liverpool Street 36 mins 8 mins Court Road 2 mins 2 mins Canary Wharf 8 mins Farringdon station – view of proposed Long Lane station entrance from Lindsay Street. Image credit: Crossrail.co.uk WHO’S HERE LOCAL DEVELOPMENTS
Herbal House, 10 Back Hill EC1 The Smithson, 6-9 Briset Street EC1 Farringdon West EC1 Farringdon East EC1 Completed Under Construction Under Construction Under Construction
Developer Allied London & Aerium Developer Savills IM Developer HB Reavis Developer Helical Architect Buckley Gray Yeoman Architect Tate Hindle Architect John Robertson Architects Architect PLP Architecture Scheme 115,000 Ft2 mixed use Scheme 47,900 Ft2 of Grade A office Scheme 207,000 Ft2 of Grade A offices Scheme 75,000 Ft2 of Grade A offices development comprising accommodation and retail, 25,000 Ft2 of retail and retail accommodation offices, retail and residential and restaurant Completion Q1 2018 Completion Q2 2018 Completion Q4 2019 Completion Q2 2019
Charterhouse Place EC1 The Ray, 119 Farringdon Road EC1 The Bower, Old Street EC1 Spectrum, 160 Old Street EC1 Planning Submitted Under Construction Under construction Under construction
Developer TH Real Estate Developer Viridis Real Estate Developer Helical Developer Great Portland Estates Architect Lifschutz Davidson Sandilands Architect Allford Hall Monaghan Morris Architect Allford Hall Monaghan Morris Architect Orms Scheme 165,000 Ft2 of Grade A offices Scheme 100,000 Ft2 development Scheme 171,000 Ft2 (Phase II, The Tower) Scheme 153,000 Ft2 of Grade A and 30,000 Ft2 of retail including 90,000 Ft2 of Grade A office accommodation, office accommodation of Grade A offices plus two restaurant units Completion Q2 2021 Completion Q1 2019 Completion Q3 2018 Completion Q2 2018 THE BUILDING
Desirable workspaces in The office floors from 1st to 3rd level form part of the original architecture of the a creative corner of London property. The original wood floorboards have been salvaged, reconditioned and 50 — 54 Clerkenwell Road is a mixed- brought back to former glory. use building originally constructed in the early 1930’s. It comprises showroom The authenticity is further enhanced by accommodation on lower ground and the revealing brickwork that has been grit ground floors with highly desirable office blasted along multiple walls, which brilliantly accommodation arranged over the 1st complements the warehouse aesthetic. to 5th floors. The air-conditioning system has been The showroom accommodation has a bespoke designed specifically for this prominent and highly sought after glazed property. The fan coil units and ductwork frontage extending to over 12 metres are designed to act as furniture mounted approx along Clerkenwell Road. to the ceilings on 1st and 2nd floor levels. The fan coil units are positioned on the floor The office accommodation was fully adjacent to the perimeter within the 3rd refurbished and extended in 2017. – 5th floor spaces, which are housed with white metal casements. The Ben Adams Architects designed scheme tastefully retains the character The original roof of the building was of the original warehouse whilst allowing removed at the 3rd floor and replaced with for the addition of two new modern two new storeys at 4th and 5th floor levels. glazed office floors, with terraces that benefit from excellent panoramic views of the City of London.
More specifically, the entrance lobby has been completely overhauled, together with the installation of a new passenger lift that opens directly onto the office demise areas themselves.
OFFICE SPECIFICATION
The building has recently been fully refurbished and extended with new M+E throughout.
• Superb natural daylight
• Excellent floor to ceiling heights
• Exposed brickwork and structural beams
• Modern lighting
• Windows installed to upper floor levels
• WC and shower facilities to each floor
• Exposed air-conditioning system
• Perimeter trunking system to 1st–3rd floors
• Original timber wood flooring to 1st–3rd floors
• New wood flooring to 4th & 5th floor
• Private roof terraces to 4th & 5th floor
• Bike storage area in rear courtyard
ACCOMMODATION
50 — 54 Clerkenwell Road has been independently measured by Sterling Temple, in accordance with the RICS Code of Measuring Practice 6th Edition. IPMS 3 figures are available upon request.
Floor Use NIA (Ft2) NIA (M2)
5th Office 380 35.30
4th Office 1,076 99.96
3rd Office 1,672 155.33
2nd Office 1,625 150.97
1st Office 1,588 147.53
Ground Showroom 1,115 103.59
Lower Ground Showroom 1,498 139.17
Total 8,954 831.85 FLOOR PLANS N
Lower Ground Floor Ground Floor 1st ,2nd & 3rd Floor
External Courtyard
12.5 M
14.5 M
4th Floor 5th Floor
Private Terrace 1.8 M
8.7 M
Private Terrace
Private Terrace 1.7 M Not to scale, indicative only
14.5 M TENURE
Freehold
36-43
16 17
18 182200 182200 Great Sutton Street 21-22 Berry Street
32-35 19-20
23-25
26-27
1-5
28 29
34 32
54a 36-42
44-48 18.8m 50-54 56 TCB Leo Yard 60 58 62 F B 64 66 Clerkenwell Road 70-74 78a 76 78 Shelter
N 182100 182100
0 1010 2020 mm TENANCY SCHEDULE
50 — 54 Clerkenwell Road is fully let to five tenants at a passing rent of £564,779 /A. WAULT of 7.07 years to expiry and 4.16 years to break.
Floor Tenant Use Ft2 Rent per Rent per Lease Rent Break Lease Comments annum Ft2 Start Review Date Expiry
5th 380 Rent deposit equivalent to three quarters rent plus VAT Alea SRL Office £104,104 £71.50 29/11/2017 29/11/2022 – 28/11/2027 (£93,693.60). Outside the L&T Act 1954. 4th 1,076
3rd Bloomreach Office 1,672 £112,860 £67.50 09/10/2017 – 09/10/2020 08/10/2022 Tenant only option to break at the third anniversary, UK Ltd subject to providing 6 months’ prior written notice and a penalty of £18,810 plus VAT. Rent deposit of 4 months’ rent plus VAT (£45,144). Outside L&T Act 1954.
2nd LSI Office 1,625 £105,625 £65.00 27/09/2017 27/09/2022 27/09/2022 26/09/2027 Tenant only option to break at the 5th anniversary, Architects subject to the tenant providing 6 months’ notice. A further 9 months’ rent free from the break date should the tenant LLP not exercise the break. Rent deposit of 3 months’ rent plus VAT (£31,687.50). Outside the L&T Act 1954.
1st On the Office 1,588 £107,190 £67.50 21/11/2017 – 21/11/2020 20/11/2022 Tenant only option to break at the 3rd anniversary, subject Corner to providing at least 6 months’ prior written notice and a penalty of £17,865 plus VAT. A further 2 months’ rent free Films Ltd from the break date should the break not be exercised. Rent deposit of 6 months’ rent plus VAT (£64,314). Outside the L&T Act 1954.
G 1,115 Rent deposit held of £20,776.70 inclusive of VAT. Foxtons Ltd Showroom £135,000 £51.66 28/07/2010 28/07/2020 28/07/2020 27/07/2025 Inside the L&T Act 1954. LG 1,498
Total 8,954 £564,779 £63.08
TENANT INFORMATION
Foxtons Limited On the Corner Films Limited LSI Architects LLP Bloomreach UK Limited Alea SRL (01680058) (08989593) (OC302202) (08821370) (00076440932)
Foxtons was founded in Notting On The Corner Films makes LSI architects is an AJ100, award- Bloomreach brings businesses Founded in 1973, Alea is an Italian Hill Gate as a two-person estate worlds class documentaries with winning architectural practice with the first open and intelligent Digital contract furniture manufacturing agency in 1981. Since its inception unscripted content. They specialise approximately 60 people, including Experience Platform (DXP). company. They are a family is has grown to become London’s in feature documentaries, high-end architects, technologists and support They have an impressive list of clients owned business with their Global premier estate agent with coverage documentary series and formatted staff, based in London and Norwich. including Neiman Marcus, Staples, Headquarters in Sarone, Northern of approximately 80% of Greater factual entertainment. Mailchimp and Autodesk. Italy. They have a truly global footprint London’s residential property The practice has extensive experience with offices and showrooms in Miami, market and since 2001 has Based in London the firm has of undertaking projects for clients Founded in 2009, Bloomreach is New York City and London. been headquartered in Chiswick an experienced team who have of all types, from major contractors, headquartered in Mountain View, West London. produced some of the most commercial and public sector clients California and has offices in five aleaoffice.com acclaimed factual film content in throughout the UK, with a particular locations around the world including Following a period of rapid growth, recent years. There most notable focus on projects in London, Norfolk, Boston, London and Bangalore. The Foxtons undertook a successful feature length documentary Cambridge and the Eastern Region. business is backed by investment IPO in 2013. Since the IPO expansion films are the Oscar and Grammy Notable instructions include St firms Bain Capital Ventures, Battery of the business has continued with award-winning Amy and the double Stephens Towers, Norwich, the Ventures, NEA, Salesforce Ventures the opening of 23 new branches BAFTA winning Senna. University of East Anglia Masterplan and Lightspeed Ventures. increasing the total to 67. and Castle Mall Norwich. onthecorner.tv In 2016 Bloomreach continued foxtons.co.uk lsiarchitects.co.uk their expansion with the acquisition of Amsterdam based content management software company Hippo.
bloomreach.com
LEASING INVESTMENT MARKET MARKET
Historically annual take-up has averaged by activity in Clerkenwell with deals 48% Central London’s real estate investment estate market in the world and is benefiting around 500,000 Ft2 in Farringdon / above the ten-year average. Equally, market continues to attract investment from the historically low sterling exchange Clerkenwell over the last ten years. In 2017, Farringdon saw transaction levels increase from across the globe. It is considered the rates and superior returns over other asset take-up surged, increasing by close to 34% year-on-year. most liquid, transparent and secure real classes. 85% year-on-year. The uplift was driven
Address Floor Use Size Tenant Term Rent Date Property Area Tenure Tenancy Pricing NIY Date per Ft2
80 Clerkenwell 5th Office 1,766 Transaction 10 years £70.00 Q3 45 19,967 FH Multi let to 5 tenants £26.50m 4.34% Apr Road, EC1 Network break at 5 2017 Folgate Street, with a WAULT of £1,327/Ft2 2018 Services E1 7.2 years
25 Charterhouse 4th Office 6,111 Anomaly 10 year £75.00 Q3 Instrument House, 12,232 FH Multi let to 5 tenants £15.00m 4.73% Dec Square, EC1 break at 5 2017 207 Kings Cross with a WAULT of £1,226/Ft2 2017 Road, WC1 3.5 years 109 – 111 3rd Office 1,011 Good Ideas 5 year £70.00 Q2 Farringdon Group break at 3 2017 35 King Street, 16,300 FH Multi let to 8 tenants £19.35m 4.08% Oct Road, EC1 EC2 with a WAULT of £1,187/Ft2 2017 3.38 years 80 Clerkenwell G & Show– 4,057 Solus 10 years £81.00 Q4 Road, EC1 LG room Ceramics 2017 9 – 13 16,772 FH Single let for a term £21.00M 3.80% Aug St Andrew Street, certain of 10 years £1,252/Ft2 2017 104 – 110 G Show– 1,097 Andreu 5 years £72.93 Q4 EC4 Goswell room World break at 3 2017 Road, EC1 36 – 38 25,266 FH Multi let to 8 tenants £28.85m 4.66% May Hatton Garden, with a WAULT of £1,142/Ft2 2017 EC1 4.16 years ADDITIONAL INFORMATION
Capital Allowances Details of the Capital Allowances are available upon request and can be made available by way of separate negotiation.
VAT The Property has been elected for Value Added Tax (VAT) and as such the sale will be structured by way of a Transfer of a Going Concern.
Environmental Credentials The building has EPC rating of B (32).
Data Room Access to an online data room can be provided on request.
Proposal Offers are invited in excess of £9,975,000 (£1,114 /Ft²), subject to contract and exclusive of VAT, reflecting a net initial yield of 5.31% (assuming acquisition costs of 6.69%).
CONTACT DETAILS
For further information / viewings:
Michael Raibin John Olney michael.raibin@colliers.com [email protected] +44 (0) 20 7871 7421 +44 (0) 20 7487 1768 +44 (0) 7880 795 679 +44 (0) 7801 628 326
Kyle Joss Hugh Ronan [email protected] [email protected] +44 (0) 20 7487 1958 +44 (0) 20 7344 6887 +44 (0) 7712 241 851 +44 (0) 7702 141 224
Disclaimer: Colliers International and their clients give notice that: 1) They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2) Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Colliers International have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. April 2018