Prime Soho Value Add Opportunity with Planning Consent 127 Charing Cross Road 127 Cross Charing WC2 London Soho, 02 Executive Summary Flagship consented 04 Aerial 06 Location 08 Occupiers 10 Connectivity re-positioning 12 Local Developments 18 Description 22 Accommodation 24 Floorplans opportunity in Soho, 30 Tenancy Schedule 32 Tenure 36 Value Add Opportunities London’s most vibrant 44 Office Leasing 46 Retail Leasing 50 Investment 52 Further Information sub-market. Executive Summary One of the last remaining development sites at Tottenham Court Road station. • Situated in the most dynamic commercial location in London with the lowest vacancy rates in the West End and 100% prime • Freehold site adjacent to Tottenham Court Road station which will cater for approximately 62 million passengers per year from 2022 following the opening of the Elizabeth Line • 127 CXR, built in the 1970’s, is multi-let and provides 40,091 sq ft NIA (50,293 sq ft GIA) of retail, leisure and high quality office accommodation with an overall passing rent of £2,014,638 per annum, just £48 per sq ft on the office element • Development facilitated in Q4 2021 with G-A-Y remaining in occupation • The immediate area boasts outstanding growth and the highest concentration of pre-lets in London - Facebook, G-Research and Apollo Global Management amongst others and Google have recently re-committed to 156,000 sq ft nearby at Central St Giles on a new 10 year term • Significantly under-developed site with just three upper floors compared to surrounding developments including Soho Place, Ilona Rose House, 25 Soho Square and Outernet which benefit from eight storeys, or the equivalent, of accommodation • Existing Barr Gazetas consented scheme for three additional storeys of office accommodation, resulting in 40%a uplift in net internal area • Feasibility study undertaken by Barr Gazetas to enhance the consented scheme, adding a further seventh floor,an uplift to the net internal area of approximately 50%, subject to obtaining the necessary consents • Outstanding retailing and leisure opportunity to capitalise on unparalleled footfall outside Tottenham Court Road station and the world class media and leisure offering at Outernet opposite which is predicted to attract 400,000 visitors per day • Valuable and rare 4am nightclub licence running with building • Opportunity to deliver a new Grade A scheme into a market when nearby developments and the Elizabeth Line have been completed, thus ensuring lower local competition in 2023/24 We are instructed to seek offers in excess of £56,500,000, which reflects a net initial yield of 3.50% (after the deduction of purchaser’s costs at 1.8%). This represents a low capital value of £1,409 per sq ft on the existing building, £1,002 per sq ft on the consented area and £939 per sq ft on the enhanced scheme. 2 3 Soho Square Tottenham Court Road Bedford Square Central St Giles British Museum Station 4 Oxford Street Charing Cross Road Centre Point Shaftesbury Avenue New Oxford Street 5 Location 127 CXR is located at the heart of London’s fastest changing micro-location, adjacent to Tottenham Court Road station. The building sits prominently Court Road, Soho Place, Ilona Rose opposite the intersection between House and Outernet. With Tottenham Charing Cross Road and Denmark Court Road set to be the sole Street, adjacent to Tottenham Court intersection between Crossrail 1 and Road station. 127 CXR is positioned 2, Soho Square and the surrounding alongside a number of London’s most area is fast becoming the new centre significant developments, including of London. The Elizabeth Line at Tottenham 6 7 Euston Square WarrenStreet Great Portland Street Regents Park Russell Square PARK CRESCENT Baker Street Marylebone OFFICES BARS / RESTAURANTS Edgware Road 1 Facebook 1 Soho House 2 G-Research 2 100 Wardour Street Apollo Global Management 3 Barrafina 3 Skyscanner 4 Zelman Meats 4 Palantir 5 Dean Street Townhouse Portland Place 5 20th Century Fox 6 The Groucho Club Toenham Court Road 6 British Board of 7 Hoppers Bedford Square Film Classification 8 Arcade Charloe Street 7 MoneySuperMarket 9 Pierre Victoire Mormer Street 8 TripAdvisor 10 Pizza Pilgrims 9 King.com 11 L’Escargot 10 Nike 12 Ceviche Soho 6 11 British Film Institute 13 Milroy’s of Soho 12 McKinsey & Company 14 Ronnie Scott’s 11 Nationwide 15 Soho House Rothesay Life 16 The Ivy 13 H&M 3 17 Flat Iron COS 4 18 Seven Dials Market W A L K 5 T E S 14 Google N U 19 Bar Termini M I NBCUniversal E I V 13 20 Monmouth Kitchen F Great Russell Street 15 Muse Developments Rathbone Place 16 Anthemis Group HOTEL Newman Street 12 17 Hogarth Worldwide 1 The Resident Soho 3 Regent Street 18 WeWork 2 The Soho Hotel 1 19 Travel Zoo 3 The London Edition New Oxford Street Manchester Square Wigmore Street 20 NBA 4 The Mandrake Hotel Cavendish 8 Square Nielsen 5 Sanderson London 14 Quantcast Oxford Street Soho Street 2 6 Charlotte Street Hotel Toenham High Holborn 21 Redbull 7 Radisson Blu Edwardian Court Road 7 Dean Street 4 Charing Cross Road 8 9 17 9 Soho 20 6 Square 16 Oxford Circus 10 1 Dean Street 15 13 10 5 4 20 Selfridges Wardour Street 19 Regent Street 3 17 7 18 18 11 New Bond Street 2 1 12 Hanover 21 Marks & Spencer Bond Street Square 2 7 19 5 14 Cambridge Circus Covent Garden Marble Arch 15 6 16 8 9 Shaesbury Avenue Leicester Square Piccadilly Circus Charing Cross Embankment Green Park LUTON 42 minutes Connectivity PADDINGTON 14 minutes HEATHROW 127 CXR is located in close proximity to Tottenham 50 minutes KING’S CROSS ST PANCRAS 5 minutes Court Road station which is nearing the end of a £1bn MARYLEBONE transformation that will deliver a new underground 11 minutes PARIS 2 hours 15 minutes BAKER STREET EUSTON entrance and ticket hall on Dean Street, as well as a 10 minutes 4 minutes second new ticket hall opposite the property at St Giles Circus. Tottenham Court Road provides access STANSTED to the Central and Northern underground lines as well 60 minutes as the Elizabeth Line when it becomes operational in 2022. Oxford Circus and Holborn stations are both within easy walking distance and serve the Piccadilly, Victoria and Bakerloo lines. In addition to the underground connections, Oxford Street and Tottenham Court Road both offer extensive bus links, connecting Soho Square seamlessly with the rest of London. OXFORD CIRCUS 1 minute TOTTENHAM BANK COURT ROAD 6 minutes HEATHROW BOND STREET DEAN STREET LIVERPOOL 28 minutes 3 minutes STREET Elizabeth Line (2 minutes Elizabeth Line) 8 minutes DLR TO (5 minutes Elizabeth Line) CANARY WHARF 11 minutes CHARING CROSS 2 minutes CANARY WHARF VICTORIA 17 minutes 9 minutes (12 minutes Elizabeth Line) WATERLOO 2 minutes THE ELIZABETH LINE GATWICK The Elizabeth Line, due to open in 2022, is one of 30 minutes Europe’s largest infrastructure projects, connecting Shenfield in the east to Reading in the west and dramatically cutting down travel time across London. DALSTON SEVEN TURPIKE ALEXANDRA A further long term prospect for Soho Square is that JUNCTION SISTERS LANE PALACE PROPOSED CROSSRAIL 2 LINE Tottenham Court Road is set to be the focal point of EUSTON the proposed Crossrail 2 project, acting as the sole TOOTING CLAPHAM KING’S ROAD TOTTENHAM KING’S CROSS WIMBLEDON BROADWAY JUNCTION CHELSEA VICTORIA COURT ROAD ST. PANCRAS intersection with the Elizabeth Line. ANGEL HACKNEY TOTTENHAM CHESHUNT SERVICING HALE South West London and Surrey ELIZABETH LINE 2022 BAKERLOO LINE VICTORIA LINE NORTHERN LINE CENTRAL LINE MAINLINE/DLR All journey times from Tottenham Court Road 10 11 At the heart of the new transformation Local Developments 1 PLAZA SHOPPING CENTRE, 6 73-89 OXFORD STREET 11 THE OXFORD STREET ESTATE 16 OUTERNET, ST GILES CIRCUS OXFORD STREET & 1 DEAN STREET Element Capital Consolidated Developments Sirosa Great Portland Estates – now owned by NBIM 52,000 sq ft of office accommodation 200,000 sq ft of office space, art gallery, 73,000 sq ft of retail space 90,000 sq ft office and retail space 43,000 sq ft of retail space 2,000 seat music auditorium and hotel Completed Q1 2018 Completed Q3 2017 Completion 2024 accommodation Completion 2021 2 127-143 OXFORD STREET 7 PROPOSED CROSSRAIL II STATION 12 21 SOHO SQUARE Freshwater Crossrail ll station – to potentially include Global Holdings Management Group 17 CENTRE POINT 85,000 sq ft of office and retail space 250,000 sq ft of office space 25,000 sq ft office and retail space Almacantar Completion Q4 2022 50,000 sq ft of retail space Completed 2018 82 luxury residential apartments, 42,000 sq ft of retail space and 3 ONE RATHBONE SQUARE 8 31-32 SOHO SQUARE 13 SOHO PLACE a new public square Royal London Asset Management Great Portland Estates – Derwent London Completed Q2 2018 now owned by Deka Mixed use scheme comprising 275,000 sq ft office and retail space 217,000 sq ft office space 76,000 sq ft of Grade A offices and a 350 seat theatre 18 CASTLEWOOD HOUSE 42,000 sq ft retail space Planning consent granted Completion Q4 2021 Royal London Asset Management 162 luxury residential apartments Planning for 230,000 sq ft of office space 9 3-7 SOHO STREET & 12 SOHO SQUARE Completed Q2 2017 14 ILONA ROSE HOUSE, Completion Q3 2022 Lothbury IM CHARING CROSS ROAD 4 CROSSRAIL TOTTENHAM COURT 14,000 sq ft of office accommodation Soho Estates 19 THE POST BUILDING ROAD WESTERN TICKET HALL 3,426 sq ft of retail space 220,000 sq ft of office and retail space Brockton Capital / Oxford Properties – Crossrail Completion 2020 Completion Q2 2021 now owned by Ponte Gadea 71,000 sq ft of residential accommodation 300,000 sq ft