01 143 New Bond Street, London, W1. 143 New Bond Street, London, W1. 02

INVESTMENT 143 New Bond Street is located in the heart of Mayfair on the west side of New Bond Street SUMMARY and opposite the world renowned Sotheby’s auction house.

Attractive Grade II listed mixed use building comprising retail, gallery, office and residential accommodation providing a total of 11,857 sq ft (1,102 sq m).

Long leasehold from The City of London for a term of 99 years (c.41 years remaining) at a fixed ground rent of £3,305 per annum.

Multi-let producing a total rental income of £1,130,000 p.a. reflecting a low passing rent of £599 ITZA on the retail element.

Asset management initiatives including re-gearing the headlease, enfranchising the residential apartment, extending the existing retail unit into the car park and extending the upper floors.

Offers in excess of £30,000,000 for the benefit of our client’s leasehold interest reflecting a net initial yield of 3.56% after deducting purchaser’s costs of 5.8%. A purchase at this level represents a capital value of only £2,530 per sq ft. 03 143 New Bond Street, London, W1.

05 143 New Bond Street, London, W1.

LOCATION 143 New Bond Street is located in the heart of Mayfair on the west side of New Bond Street and opposite the world renowned Sotheby’s auction house. The property occupies a mid-terraced position close to the junctions of Bruton Street and Conduit Street to the south and Grosvenor Street and Maddox Street to the north.

MAYFAIR AND BOND STREET

As the most connected retail and leisure location in the World, the West End attracts over 200 million shoppers annually spending in excess of £7.6bn.

Consumer expenditure is predicted to increase to some £9.1bn per annum by 2016 with over 37% of shoppers coming from overseas and the remainder from either outside or across greater London.

Running from Oxford Street through to Piccadilly, Bond Street is known as Europe’s premier retailing destination offering the most exclusive and prestigious brands. Luxury retailers include Prada, Cartier, Chanel, Hermes, Asprey, Tiffany & Co, Giorgio Armani, Burberry, Ralph Lauren, Patek Philippe and Louis Vuitton to name but a few.

The West End, with Mayfair at the very heart, is ranked number one globally for international flagship designer stores with a world class mix of over 600 shops, 40 renowned theatres, 30 museums and galleries, 17 Michelin star restaurants and 7 green spaces.

Mayfair hotels and restaurants include The Ritz, Claridge’s, Brown’s, The Connaught, Cecconis, Scott’s, Harry’s Bar, Nobu, Gordon Ramsey, The Wolseley, Hakkasan, The Art’s Club and La Petite Maison. 143 New Bond Street, London, W1. 06

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BRUTON STREET 143 New Bond Street, London, W1. 08 Not to scale. Indicative only.

The most connected retail and leisure location in the World, the West End attracts over 200 million shoppers annually, spending in excess of £7.6bn 143 New Bond Street, London, W1. 010

COMMUNICATIONS Oxford Circus Underground Station 0.3 miles away

Mayfair benefits from excellent transport links Green Park with four key London Underground stations Underground 0.4 Station on its boundary. miles away

Crossrail

Bond Street Underground Station is currently undergoing a major transformation to become a key hub of the Crossrail network. At present Piccadilly Circus the station carries 155,000 passengers a day and once completed the Underground capacity and footfall will increase to 225,000 people daily with commuters Station being able to travel from Heathrow Airport to Bond Street in just 26 0.5 miles away minutes.

Due for completion in 2018, Crossrail will provide a new high speed train service providing thousands of commuters quick access into and across London. Linking Maidenhead and Heathrow Airport in the West through central London and across to Shenfield & Abbey Wood in the East, Bond Street Crossrail will bring 1.5 million additional people within 60 minutes reach Underground of London’s key business districts and will carry more than 200 million 0.5 Station passengers a year. miles away

500 buses pass down Oxford Street every hour further interconnecting Oxford Street and Mayfair with the whole of the capital 011 143 New Bond Street, London, W1.

STRATFORDSROMFORD HENFIELD

Stansted

HAYES & EALING TOTTENHAM LIVERPOOL HARLINGTON BROADWAYPADDINGTON COURT ROAD STREET

CUSTOM MAIDENHEAD WEST EALING ACTON BOND STREET FARRINGDONWHITECHAPEL HOUSE ABBEY WOOD MAIN LINE Luton Gatwick HEATHROW AIRPORT CANARY WOOLWICH Heathrow WHARF

Artist’s impressions of the proposed Eastern Crossrail entrance for Bond Street station at Hanover Square 143 New Bond Street, London, W1. 012

BOND STREET RETAIL

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R ALBEMARLE STREET ALBEMARLE STREET G 013 143 New Bond Street, London, W1.

143 New Bond Street is located in the heart of Mayfair on the west side of New Bond Street and opposite the world renowned Sotheby’s auction house.

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R ALBEMARLE STREET ALBEMARLE STREET G 143 New Bond Street, London, W1. 014 015 143 New Bond Street, London, W1.

DESCRIPTION

Originally built in the mid-18th Century, 143 New Bond Street was rebuilt behind a Grade II listed façade in 1957 and comprises a modern and attractive mixed use building providing retail, gallery, office and residential accommodation. Arranged over lower ground, ground and six upper floors the property provides a total of 11,857 sq ft (1,102 sq m).

The retail unit is arranged over lower ground and ground floors totalling 3,261 sq ft (303 sq m) and benefitting from 9m of prime retail frontage to New Bond Street. The upper floors provide gallery/office accommodation at first floor level, self-contained offices over second to fifth floors and a residential apartment on 6th floor with balcony and stunning views over New Bond Street and the West End. The upper floors are accessed via a separate dedicated entrance also from New Bond Street. A car park affording 7 spaces and totalling 1,903 sq ft (176.8 sq m) is provided at basement level and is accessed from Bruton Place. 143 New Bond Street, London, W1. 016 017 143 New Bond Street, London, W1. 143 New Bond Street, London, W1. 018 019 143 New Bond Street, London, W1. 143 New Bond Street, London, W1. 020

First floor gallery 021 143 New Bond Street, London, W1. 143 New Bond Street, London, W1. 022

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ACCOMMODATION

FLOOR USE AREA (SQ FT) AREA (SQ M)

Sixth Residential 882 82.0 Fifth Offices 864 80.2 Fourth Offices 960 89.1 Third Offices 965 89.7 Second Offices 983 91.3 First Offices/Art Gallery 2,039 189.4

Ground Retail 2,691 250 Zone A Retail 642 59.6 Zone B Retail 737 68.5 Zone C Retail 869 80.7 Zone D Retail 443 41.2 (ITZA) (Retail) (1,283) (119.2)

Basement Storage 570 53.0 Basement Car Space (7) 1,903 176.8

TOTAL 11,857 1,101.6 143 New Bond Street, London, W1. 024

TENANCIES

Multi-let in accordance with the tenancy schedule below producing a total rental income of £1,130,000 p.a.

TENANT FLOORS USE AREA AREA LEASE RENT RENT PA COMMENTS SQ FT SQ M TERM REVIEW (PSF) (BREAK)

Molyneux Rose LLP Sixth Residential 882 82 25/03/2011 - N/A £139,000 – Lease guaranteed by MJ Gillies, 24/03/2016 (£51.36) MR Little, JR Lochrane and Fifth Offices 864 80 CM Tippets. – 6th floor sublet to Molyneux Fourth Offices 960 89 Investments Ltd. Basement Car Spaces 1,903 177 – 5th floor sublet to Pelican (7) Partners (Peterborough) LLP. – Rent psf does not include car parking.

Whitebox Advisors Third Offices 965 90 14/07/2011- £50,000 – Outside the Security of Tenure London LLP 13/07/2016 (£51.81) provisions of the Landlord & Tenant Act 1954. – Rent deposit of £36,000 held. – Service charge cap of £10,000 pa subject to RPI linked uplifts. – Break subject to penalty of £8,333 paid 6 months prior.

Pivotal Holdings Second Offices 983 91 £50,000 – Leaseback of the second floor Ltd (£50.86) to the vendor with terms to be agreed.

Ayyam Gallery First Offices or 2,039 189 26/06/2012- 26/06/2017 £116,300 – Outside the Security of Tenure London Ltd Art Gallery 25/06/2022 (26/06/2017) (£57.04) provisions of the Landlord & Tenant Act 1954. – Rent deposit of £100,170 held. – Service charge cap of £25,200 pa subject to RPI linked uplifts. – Rent reviewed to higher of A1 or B1. – If break not operated 6 months at 50% of rent from 26/06/2017 to 25/12/2017.

Ralph Lauren Ground Retail 2,691 250 24/06/2001- 24/06/2016 £775,000 – Let on effective full repairing London Ltd 23/06/2026 & (£599 ZA) and insuring lease. (ITZA) Retail (1,283) (119) 24/06/2021

Basement Storage 570 53

TOTAL 11,857 1,102 £1,130,300 025 143 New Bond Street, London, W1.

143 New Bond Street London, W1

TENURE

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ASSET MANAGEMENT OPPORTUNITY

143 New Bond Street - Extension of existing retail unit into the car park provides multiple - Re-gear the head lease existing and potential asset management - Extend the upper floors over the first floor gallery opportunities including: - Dispose of / enfranchise the residential apartment - Refurbishment of the office floors - Asset management of the upcoming lease events 143 New Bond Street, London, W1. 028

MARKET COMMENTARY

Investment

Demand for prime London property remains extremely Availability of prime quality retail stock continues to strong as the market continues to see historically low be heavily outweighed by burgeoning demand by interest rates whilst maintaining its appeal as a safe foreign and domestic investors leading to increased haven. As the most connected retail and leisure location competition and yield compression. UK institutions and in the World, the West End of London attracts over overseas investors continue to dominate the market 200 million shoppers annually spending in excess of seeking quality assets, wealth preservation coupled £7.6bn, underpinning London’s role as a premier retail with asset management and growth opportunities. destination and offering occupiers strong sales and footfall levels. Below we set out details of some recent retail led West End investment transactions:

DATE ADDRESS POSTCODE AREA TENURE PRINCIPAL PRICE NIY CAPITAL (SQ FT) RETAIL TENANT VALUE (PSF)

Q3, 2015 103 Mount Street W1 31,320 LLH Celine £81,000,000 3.00% £2,586

Q3, 2015 145 Oxford Street W1 8,147 FH Retro London £40,000,000 2.63% £4,910

Q1 2015 386 Oxford Street W1 2,541 FH Accessorize & Dr £23,100,000 2.25% £9,908 Martens

Q1 2015 155-157 Oxford Street W1 5,700 FH EE Limited £20,000,000 2.17% £3,509

Q1 2015 100 Knightsbridge SW1 2,781 VFH Rolex £22,250,000 1.70% £8,000

Q1 2015 105-109 Oxford Street W1 19,076 FH Footlocker & Tiger £42,500,000 2.50% £2,228

Q3 2014 130-134 New Bond Street W1 31,313 FH Breitling, Corneliani £210,000,000 2.26% £6,706 & Church’s

Q3, 2014 97 New Bond Street W1 9,994 FH HSBC £18,750,000 1.97% £1,876

Q3 2014 135-137 New Bond Street W1 19,691 FH Belstaff £110,000,000 2.57% £5,586 OXFORD STREET

BROOK STREET

143 New Bond Street, London, W1.

27 New Bond Street Date: Q3, 2013 148 New Bond Street Tenant: Jimmy Choo Date: Q2, 2014 £ITZA: £850 Tenant: The Fine Art Society Transaction: RR £ITZA: £855 Transaction: RR

BRUTO STREET

147 New Bond Street Date: Q1, 2014 Tenant: Richard Green £ITZA: £850 Transaction: RR

163 New Bond Street Date: Q1, 2013 Tenant: Church’s 15 New Bond Street £ITZA: £1,100 Date: Q1, 2015 Transaction: LR GRAFTO STREET Tenant: De Grisogono £ITZA: £1,553 + £6m premium Transaction: OML

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Bond Street continues to be highly desired and revered Rental growth remains extremely strong as demand by luxury brands due to its undoubted worldwide for units on the street severely outstrips supply with reputation as a premier retailing destination. Home large key money often being paid alongside record to many flagship stores, the street has one of the rents to secure limited opportunities amongst fierce STAFFORD STREET O strongest concentrations of luxury brands with retailers L competition. seeing a Bond Street presence as a ‘must have’ for D

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CCADLLY 143 New Bond Street, London, W1. 030

EPC VAT

143 New Bond Street has an EPC rating of E (124). The property is VAT elected.

PROPOSAL

Offers in excess of £30,000,000 for the benefit of our client’s leasehold interest reflecting a net initial yield of 3.56% after deducting purchaser’s costs of 5.8%. A purchase at this level represents a capital value of only £3,013 per sq ft. 031 143 New Bond Street, London, W1. 143 New Bond Street, London, W1. 032

FURTHER INFORMATION

For further information or to arrange an inspection, please contact:

Mark Shipman Scott Lister

Direct Line: +44 (0) 20 7529 5708 Direct Line: +44 (0) 20 7529 5704 Email: [email protected] Email: [email protected] www.michaelelliott.co.uk

Peter Wetherell Robert Windsor Direct Line: 020 7529 5560 Direct Line: +44 (0) 20 7529 5599 Email: [email protected] Email: [email protected] www.wetherell.co.uk

Misrepresentations Act 1967 & Declaration: Michael Elliott and Wetherell for themselves and for the vendors of this property whose agents they are given notice that: a) the particulars are set out as general outline only for the guidance of intending purchasers and do not constitute, nor constitute part of, an offer or contract; b) all descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchaser should not rely on them as statements or representations of fact but should satisfy themselves by inspection or otherwise as to the correctness of each of them; c) no person in the employment of Michael Elliott nor Wetherell has any authority to make or give any representations or warranty whatever in relation to this property. September 2015