02 03 INVESTMENT SUMMARY

Rare Mayfair virtual Freehold

Mayfair is London’s most exclusive district with the world’s finest retailing provision

Prominent corner property providing 50 metres of retail frontage on South Molton Street and Brook Street, opposite Claridge’s

Situated a 1 minute walk from both entrances to the new Bond Street Crossrail Station opening in December 2018, and a 4 minute walk from Oxford Circus Station

Immediate area set to benefit from nearby developments 04 and major infrastructure improvements 05

Property provides a total of 14,757 sq ft (1,370.8 sq m) of retail and office accommodation

Fully let to a diverse tenant base producing a total rental income of £1,651,050 per annum, anchored by retail tenants Links of London and Thomas Sabo

Two thirds of the total income is from the retail units

Average retail rent of £470 Zone A, offering a significant discount to £2,000 Zone A on Bond Street to the south and £1,150 Zone A on Oxford Street to the north

Low passing office rent of only £57.30 per sq ft, equating to circa 50% of Grade A Mayfair rental levels, with highly lettable average floorplates of 3,000 sq ft

Both retail and office rental levels offer significant potential for future growth as a result of the imminent infrastructure improvements

Offers are invited in excess of £56,000,000 subject to contract and exclusive of VAT, which reflects a net initial yield of 2.76% (based on purchaser’s costs of 6.78%), rising to over 3.00% in June 2018. THE LOCATION BELGRAVIA

BUCKINGHAM PALACE KNIGHTSBRIDGE

ST JAMES’S PARK

GREEN PARK

HYDE PARK

ST JAMES’S SQUARE

GREEN PARK

OLD BOND ST BERKELEY SQUARE

08 09

GROSVENOR SQUARE

NEW BOND ST

BROOK ST

SOUTH MOLTON ST

BOND HANOVER SQUARE STREET BOND STREET OXFORD EASTERN CIRCUS TICKET HALL THE LOCATION

South Molton Street is situated in Mayfair’s office market has Mayfair, W1, London’s most prestigious traditionally been home to financial address. and corporate companies, attracting major occupiers such as Blackstone Due to the area’s elegant surroundings Group, Lloyds Private Banking, TPG and rich history the location is Europe and Lazard. characterised by luxury retailing, exclusive restaurants, renowned Occupiers are attracted by the hotels and high profile art galleries. location’s amenities and appealing All of this has contributed to the working environment created by the prominence of Mayfair and cemented area’s open green spaces that includes its reputation as to where the world’s the Royal Parks of Hyde Park and elite live, work and play. Green Park.

Internationally Mayfair is renowned The opulence of Mayfair has attracted 10 for its offering of luxury labels world renowned restaurants, hotels 11 including Chanel, Prada, Celine and and private members clubs. Notable Hermes. South Molton Street is an occupiers include Claridge’s (opposite), established retail pitch attracting The Dorchester, The May Fair, Sexy luxury retailers such as Maje, Monica Fish, Scott’s, Roka, The Arts Club and Vinader, Annoushka, Browns, Sandro Annabel’s. and The Kooples. WIMPOLE ST WELBECK ST

LITTLE PORTLAND ST

MANCHESTER SQUARE CAVENDISH SQUARE MARGARET ST THE SITUATION

PORTMAN OXFORD SQUARE WIGMORE ST CIRCUS JAMES ST JOHN LEWIS REGENT ST

The property is situated on the north RESTAURANTS SELFRIDGES OXFORD ST side of South Molton Street, at its BOND STREET junction with Brook Street, and benefits 01. Roka EASTERN TICKET HALL from both these premier Mayfair, 02. Nobu W1 addresses. MARBLE SOUTH MOLTON ST HANOVER 03. Hakkasan BOND SQUARE ARCH OXFORD ST STREET 04. Scott’s LIBERTY Pedestrianised South Molton Street BALDERTON ST HANOVER ST 04 09 runs between Oxford Street and Brook 05. Maze 01 Street, adjacent to Bond Street. 06. Sexy Fish THE FENWICK 07. 34 Mayfair REGENT ST The street is an established retail BEAUMONT MADDOX ST location that acts as a strategic link 08. Le Gavroche GREEN ST NORTH AUDLEY ST AVERY ROW between Oxford Street and Bond 09. Pollen Street Social 01 CLARIDGE’S Street. 10. Novikov 05 BROOK ST 01 06 NEW BOND ST The property is a five minute walk from 12 HOTELS & CLUBS 07 SAVILE ROW 13 three of London’s most famous garden squares Berkeley Square, Grosvenor 01. Claridge’s 08 GROSVENOR ST CONDUIT ST Square and Hanover Square. 02. The Connaught GROSVENOR DAVIES ST SQUARE 03. The Dorchester 07 UPPER BROOK ST08 GROSVENOR ST 04. Morton’s 05. Annabel’s PARK ST 02 06. The Arts Club CLIFFORD ST MOUNT ROW 07. The Westbury 04 CORK ST 07 BRUTON ST UPPER GROSVENOR ST ADAM’S ROW 02 08. The May Fair 03 09. The Ritz 04 MOUNT ST PARK LANE 10. Brown’s Hotel 05 BERKELEY SQUARE BURLINGTON ARCADE

SOUTH AUDLEY ST OFFICE OCCUPIERS HYDE PARK 06 DOVER ST OLD BOND ST HAY’S MEWS 05 10 01. Condé Nast 09 02. Norges 10 08 03. Lazard BERKELEY02 ST 04. TPG Europe

05. Blackstone Group 06 06. Grosvenor 03 CHARLES ST 07. KPMG 10 THE HILL ST STRATTON ST 08. Cain Hoy DORCHESTER ST JAMES’S ST 09. Bank J. Safra Sarasin 03 PICCADILLY 10. Lloyds Private Banking

CURZON ST GREEN PARK 09 WEST HAMPSTEAD 9 MINS

FINCHLEY ROAD COMMUNICATIONS 7 MINS CROSSRAIL JUBILEE LINE JUBILEE

SWISS COTTAGE 6 MINS Mayfair’s transport communications Bond Street and Oxford Circus provide Crossrail (the Elizabeth line) will open Bond Street station will become are excellent. Bond Street Underground easy access to the mainline stations in London in 2018. a dominant transport hub being station (Central & Jubilee lines) is of Victoria, Paddington, Waterloo served by two Crossrail ticket halls approximately 150 metres from the and Charing Cross, with Victoria and Bond Street Underground station, a 1 at Hanover Square and Davies Street property. Paddington providing express rail minute walk from the property, will (both 150 metres from the property). ST JOHN’S WOOD benefit from Crossrail’s connectivity services to Gatwick and Heathrow 4 MINS Additional nearby stations include airports, respectively. within central London and further The station will also benefit from a Green Park (Victoria, Piccadilly & afield. new ticket hall on Marylebone Lane. Jubilee lines), Oxford Circus (Central, Consequently, South Molton Street Victoria & Bakerloo lines), Marble Arch Bond Street station has undergone is the main pedestrian thoroughfare (Central line) and Piccadilly Circus a £300 million transformation to between the new Davies Street ticket (Bakerloo & Piccadilly lines), all within BAKER STREET facilitate the 225,000 passengers hall and Bond Street. 10 minutes walk of the property. 2 MINS who will use Crossrail daily.

CROSSRAIL TOTTENHAM TO TO BOND COURT ROAD FARRINGDON LIVERPOOL STREET CANARY WHARF 13 MINS OXFORD HEATHROW AIRPORT 25 MINS ACTON MAINLINE 10 MINS PADDINGTON 3 MINS STREET 2 MINS 4 MINS 8 MINS STRATFORD 15 MINS CIRCUS

1 MIN 4 MINS TO SHEPHERD’S BUSH NOTTING HILL GATE MARBLE ARCH HOLBORN ST PAUL’S BANK EALING BROADWAY 9 MINS 6 MINS 1 MIN 4 MINS 8 MINS 9 MINS

CENTRAL LINE CENTRAL LINE VICTORIA LINE BAKERLOO LINE OXFORD ST

Bond Street GREEN PARK Crossrail Eastern SOUTH MOLTON ST 1 MIN Ticket Hall

BOND WESTMINSTER 4 MINS STREET

WATERLOO 5 MINS BROOK ST

SOUTHWARK BOND ST 6 MINS

CGI’s OF BOND STREET CROSSRAIL STATION LONDON BRIDGE 8 MINS PRET A MANGER

GAP CONSULATE MAROUSH GENERAL

OF BRASIL

ALDO SHOP

THE BODY THE H&M FOREVER 21 INTIMISSIMI

KEY NEIGHBOURING THE DISNEY STORE DEBENHAMS

SUNGLASSE HUT

ACCESSORIZE HOUSE OF FRASER

ESTATE INTERESTS FOSSIL CALZEDONIA

OXFORD STREET JOHN LEWIS

GIFTS

COLOUR LONDON LONDON RUSSELL SIMIT EE & BROMLEY SARAYI BOOTS

CHANGE

TISSOT BEN’S COOKIES CORP GROUP THE MONEY

WAFFLE JD SPORTS MEISTER OXFORD STREET OLD MILANO JUICEBOX CAFE ZEYNAH DWELLINGS 02 THE SOUTH MOLTON TRIANGLE SITE NOMINATION INTERNATIONAL HMV CURRENCY EXCHANGE VILLAGALLO VODAFONE The Grosvenor Estate acquired 14 ANGUS STEAK HOUSE SWAROVSKI TRESOR RARE

SUBWAY

MASSIMO DUTTI

buildings on the street for £150 million SPREAD ENTRANCE LAYERS THE WOODSTOCK PULL & BEAR BOOTS EAGLE SWATCH

in 2015 and since then have purchased DWELLINGS SPAGHETTI HOUSE at least a further 6 buildings. In FLOCAFE ZARA

THREE MOSS MENS WEAR

RIVER ISLAND

STRADIVARIUS ART HOUSE NEXT UNIQLO UNDER conjunction with their existing OFFICE ALTERATION CASTLE UNION JAKS YARD

ownerships they intend to transform MCDONALD’S ART GALLERY

SIMIT COFFEE

SARAYI LUSH

WASABI BROWNS ED’S EASY DINER

STARBUCKS

PRET A MENGER A PRET JOE & THE JUICE THE & JOE

the location by revamping the existing DWGS OROGOLD T.M. LEWIN

public space and adding new shops, BROWNS DWELLINGS YO! SUSHI MAYFAIR UNDER ENT ENT GERARD DAREL SAKARE TANNING BROWNS ALTERATION

galleries, hotels and restaurants. THOM

OFFICE IL PIZZAIOLO SWEENEY BROWNS HOBBS RASA W1 This should result in significant rental ERMENEGILDO MENSWEAR OFFICE ZEGNA BERKETEX BRIDE PAWNBROKERS PRONOVIAS DWELLINGS NEW BOND POSTCARD CUBE VACANT

DRUNCH growth in the medium to long term. STREET PARAFIN TEAS CAFE

WHISTLES SANTANDER JONSTON DUKE OF SPACE NK APOTHECARY OF ELGIN CLAUDIE YORK PIERLOT GOLFINO RONCHINI ART GALLERY WEST ONE SHOPPING CENTRE UNDER OFFICE UNDER SOUTH MOLTON STREET ANNE FONTAINE OFFICE OFFICE The 90,000 sq ft retail and office ALTERATION PINKO VIGO CONSTRUCTION ZADIG & CATIMINI ENTRANCE ELEVEN HAIR ART GALLERY BOND STREET VOLTAIRE HANINA GALLERY VICTORINOX OFFICE building (situated above Bond Street BOUDI 16 CROSSRAIL ETON 17 FASHION Underground station) was acquired by STATION GRAYS ANTIQUE KIRI THE LOOP T.BA VINE BONDS ENT MARKET SOUTHMINISTRY MOLTON LANE ASSUNTA MADRE VERA Norges Investment Management (The OPEN DECEMBER 2018 OF WAXING RBS BANK WATCHES OF QUEEN VERTICE THE KOOPLES BOND ST Norwegian sovereign wealth fund) in UNDER OFFICE VICTORIA PHILIPP PLEIN BIMBA Y RIFLES LOLA ALTERATION BASLER LORIBLU LADIES WEAR 2015 for £240 million. They are currently SOCIAL BONHAMS CLUB LUMAS undertaking a comprehensive internal MONICA VINADER Ki6 MEPHISTO SHOES MAYFAIR refurbishment of the centre. PASTA + THE SLOWEAR STORE BONHAMS SANDWICH GRAYS UNDER BAR ANTIQUE RIKI BOLD MAJE CONSTRUCTION MARKET R.M. WILLIAMS & INCLUDING BOND STREET HANOVER SQUARE ESTATE TOAST CAFE CROSSRAIL STATION THE SASSOON SALON VICTORY IKKS CHRISTIE’S ‚EASTERN TICKET HALLƒ Great Portland Estates and the RUNNING CAFE HORSE PETIT BATEAU Hong Kong Monetary Authority’s DWELLINGS BERENICE OPEN DECEMBER 2018

HAUNCH OF VENISON YARD GALLERIES BARTOUX UNDER HILL & ALTERATION £500 million redevelopment, which DAVIES STREET FRIENDS BA & SH CONTINI ART GALLERY incorporates the Bond Street Eastern SARTORIAROSSI MANSOUR HANRO Crossrail station, will provide 163,500 ART GARAGE DAIKOKUYA GIOVANNI GALLERY RASPINI THOMAS OFFICE sq ft of offices, 32,700 sq ft of retail SABO HIGH AUBADE APM / restaurant space and 6 apartments. JOSEPH FROST

OFFICE MONACO OFFICE PENHALIGON’S NEW BOND STREET Public realm improvements include a OFFICE PLEATS PLEASE ANNOUSHKA ENT ENTRANCE IKEDA

GALLERY SANDRO FELEVATIONE BARCLAYS SAHRAI OFFICE PICCO UNITED BANK UK ISSEY MIYAKE LUDWIG

REITER SMEDLEY ALESSI MILANO ART BARAKAT RUSSELL & new piazza and the pedestrianisation JOHN

BROMLEY SASSOON ACADEMY SASSOON UNDER ALTERATION UNDER OFFICE SAKARÉ of the west side of Hanover Square. BALLS LINKS BROTHERS

PRETTY CLARIDGE’S BALLERINAS The Maybourne Hotel Group’s £50 BROOK STREET million extension project includes

SONIA RYKIEL

DIPTIQUE POMELLATO OF LONDON L.K. BENNETT ASPINAL

N. PEAL 40 new rooms and 20,000 sq ft of GALERIE ISSEY MIYAKE BARCLAYS WEALTH THE BROWNS PATRICK THE SEGUIN

SAVILE BRIDE BOOKS VICTORIA’S FENWICKS OAKWELL

basement space. ARGENTINE NICHOLAS ASSOULINE SOCIAL OFFICE SECRET CLUB EMBASSY WILD THINGS BELMACZ TO BE RESTAURANT AND PRIVATE DAVID MEMBERS CLUB MARSHALL UNDER ALTERATION € TO BECOME MANDARIAN ORIENTIAL KEY: PAUL GROSVENOR SMITH NORGES

DWELLINGS MADDOX LA PETITE GPE / HK MONETARY AUTHORITY ARTS MAISON CLARIDGE’S SELFRIDGES WEST END DEVELOPMENT PIPELINE OXFORD ST

GROSVENOR SQUARE

BOND STREET

01

03

BROOK ST

SOUTH MOLTON ST CLARIDGE’S

OXFORD ST

BOND 18 STREET 19 EASTERN TICKET HALL 02

NEW BOND ST

05 06

HANOVER SQUARE 04

BERKELEY SQUARE

65 DAVIES STREET, W1 HANOVER SQUARE ESTATE, W1 1-3 GROSVENOR SQUARE, W1 7-10 HANOVER SQUARE, W1 22 HANOVER SQUARE, W1 OXFORD STREET & PRINCES 01 02 03 04 05 06STREET, W1 Developer: Grosvenor Developer: GPE / Hong Kong Developer: Lodha Group Developer: Morgan Capital Partners Developer: Clivedale Developer: Crown Estate / Norges Use: Office Monetary Authority Use: Residential Use: Office / Retail / Residential Use: Hotel (Mandarin Oriental) / Use: Retail / Offices Area: 63,000 sq ft offices above Use: Office / retail / residential Area: 200,000 sq ft Area: 72,000 sq ft Residential Area: 54,000 sq ft Crossrail’s new Davies Area: 223,600 sq ft Completion:2019 Completion:Complete & pre-let Area: 87,500 sq ft Completion:TBC Street station entrance Completion:2019 Completion:2019 Completion:2018 THE BUILDING THE BUILDING

Built in 1792 the building’s architecture emulates the British Regency style pioneered by John Nash.

The ground and lower ground floors provide 4,852 sq ft (450.7 sq m) of retail accommodation, arranged as four retail units known as 65, 66, 67 and 32 Brook Street / 68 South Molton Street.

The property provides approximately 50 metres of unbroken retail frontage.

The office accommodation (32 Brook Street) totals 9,905 sq ft (920.1 sq m) 22 over 4 floors. 1st to 3rd floors average 23 3,000 sq ft.

The office floorplates are very flexible and capable of subdivision into two units if required.

OFFICE SPECIFICATION

The office accommodation has been completely refurbished on the first to third floors along with the building’s entrance and common parts. The specification includes: • Contemporary entrance and common parts • Passenger lift • New comfort cooling • New WCs and shower 24 25 FLOOR PLANS

ACCOMMODATION TYPICAL UPPER FLOOR - 2,960 SQ FT / 274.9 SQ M KEY: CORE FLOOR USE AREA (SQ FT) AREA (SQ M) Floor 4 Office 1,413 131.3 Floor 3 Office 2,569 238.7 Floor 2 Office 2,960 274.9 Floor 1 Office 2,963 275.2 OFFICE SUB TOTAL 9,905 920.1 65 South Molton Street Ground 1,881 174.8 Lower ground 1,153 107.1 66 South Molton Street Ground 406 37.7 Lower ground 168 15.6 67 South Molton Street Ground 262 24.3 26 Lower ground 149 13.8 27 68 South Molton Street / Ground 527 49.0 OFFICE OFFICE 32 Brook Street Lower ground 306 28.4 RETAIL SUB TOTAL 4,852 450.7 TOTAL 14,757 1,370.8

GROUND FLOOR - 3,076 SQ FT / 285.8 SQ M KEY: CORE

RETAIL

RETAIL RETAIL RETAIL

32 BROOK STREET BROOK STREET ENTRANCE

SOUTH MOLTON STREET TENANCY SCHEDULE TENURE Virtual freehold interest for a term of 2,000 years from the City of London, expiring on 28 September 3902 (approximately 1,884 years unexpired). The head rent is fixed at £42.92 per annum.

TOTAL AREA AREA ITZA TERM EXPIRY OUTSIDE FLOOR DEMISE TENANT USE (SQ FT) (SQ FT) TERM START (BREAK) NEXT REVIEW RENT £PA RENT £PSF ZONE A 1954 ACT

65 South Molton Street Thomas Sabo UK Ltd* Retail 3,034 1,481 24 Oct 2011 20 Jun 2026 24 Oct 2021 £560,000 - £450 No

66 South Molton 18 Jun 2030 Street Finros Ltd t/a Picco Retail 574 311 19 Jun 2015 (19 Jun 2025) 19 Jun 2020 £144,500 - £475 No

67 South Molton Soap & Co (UK) Ltd t/a Street Sakaré Retail 411 233 02 Apr 2013 20 Jun 2026 02 Apr 2018 £150,000 - £644 No 32 Brook Street / 68 South Molton Street Links (London) Ltd Retail 833 516 24 Jun 2003 23 Jun 2018 - £229,000 - £450 No 28 29

RETAIL SUB-TOTAL 4,852 £1,083,500 £480

Floor 4 Dewhurst Dent Plc Office 1,413 - 24 Apr 2013 23 Apr 2023 24 Apr 2018 £54,360 £38.47 - No

Floor 3 Carlisle Staffing Plc Office 2,569 - 14 Jan 2016 13 Jan 2021 - £191,250 £74.45 - Yes

Floor 2 (North Suite) Threadmark LLP Office 2,020 - 05 Mar 2013 04 Mar 2023 05 Mar 2018 £103,020 £51.00 - Yes

Floor 2 (South Suite) Hemera Management Ltd Office 940 - 25 Mar 2013 24 Mar 2023 25 Mar 2018 £48,880 £52.00 - Yes

Dowley Turner Real Floor 1 Estate LLP Office 2,963 - 12 Oct 2009 11 Oct 2019 - £170,000 £57.37 - Yes

OFFICE SUB-TOTAL 9,905 £567,510 £57.30

Basement Substation London Electricity Board Substation - - 24 Jun 1965 21 Jun 2025 - £40 - - No

TOTAL 14,757 £1,651,050 * On assignment from Kurt Geiger Ltd (5A1 Dun & Bradstreet rating). 30 31 COVENANTS

Thomas Sabo UK Ltd is a leading global Links (London) Ltd, the iconic British Finros Ltd (t/a Picco) is the UK brand that designs and sells jewellery, jewellery brand was founded in 1900. subsidiary of Tartine et Chocolat, a watches and beauty products for Links of London was acquired by French children’s wear brand founded in women and men. Founded in 1984, in the Folli Follie Group, a global 1977. The brand specialises in children’s Germany, Thomas Sabo now operates jewellery, watch and accessory brand, clothing, accessories, toys, made-to- 313 shops worldwide and employs in 2006 and since their acquisition the order furniture, and toiletries. Finros 1,860 people. 65 South Molton Street brand has grown and expanded into has stores in France, Turkey, Morocco, is Thomas Sabo’s British flagship store. global markets. Spain, Lebanon, Russia, Ukraine, China, the United States and London. Dun & Bradstreet reports a 2A1 rating. Dun & Bradstreet reports a 5A2 rating. Dun & Bradstreet reports a N3 rating. Further security is provided from Kurt Geiger Ltd who are rated 5A1 by Dun & Bradstreet.

32 33

HEMERA MANAGEMENT LIMITED Soap & Co (t/a Sakaré) is a skincare Founded in 2010, Dowley Turner Real Hemera Management is an investment and cosmetics company who specialise Estate LLP are commercial property advisory services company incorporated in anti-aging skincare, with stores advisors specialising in industrial, in 2010. throughout Europe. office, development and investment markets. Dun & Bradstreet reports an A2 rating. Dun & Bradstreet reports a 2A1 rating. Dun & Bradstreet reports a B3 rating.

THREADMARK LLP

Threadmark is an independent Dewhurst Dent Plc was founded in Carlisle Staffing Plc is part of the placement agent founded in 2009 that 1777 and specialise in manufacturing Impellam Group, the second largest has helped clients globally raise over $15 handmade leather gloves. The product staffing business in the UK and the billion for credit, infrastructure, private range includes handbags, wallets and sixth largest managed services equity and real estate strategies. belts. Dents were awarded a Royal and specialist staffing provider Threadmark operates from offices in Warrant in 2016 by His Royal Highness, worldwide. The Group provides staff London and New York. the Prince of Wales. to clients from the public, private and not-for-profit sectors. Dun & Bradstreet reports a C1 rating. Dun & Bradstreet reports a 3A1 rating. Dun & Bradstreet reports a 2A1 rating. MARKET COMMENTARY MAYFAIR’S OXFORD STREET - £1,150 ZA NEW BOND STREET - £1,750 ZA NEW BOND STREET - £2,000 ZA OLD BOND STREET - £2,225 ZA RETAIL MARKET 02

03 OLD BOND ST NEW BOND ST NEW BOND ST 01

07 05 London’s international reputation as a 08 ALBEMARLE ST luxury retail destination has resulted in exceptional growth in prime retail 06 04 rents, with 40% increases on Bond 10 Street during 2017.

Overseas visitor figures exceeded DOVER ST 09 20 million for the first time in 2017. It is forecast this figure will increase by 11 GROSVENOR ST 3.9% pa to 2020, which is predicted to OXFORD ST SOUTH MOLTON ST increase retail sales by 29%. BROOK ST Mayfair is London’s most sought after retail location for both luxury and ‘affordable’ luxury brands.

36 Limited supply and strong demand 12 37 means alongside significant rental growth, occupiers are willing to pay to be represented on Mayfair’s most RETAIL LETTINGS exclusive streets. 01. 31 OLD BOND STREET, W1 04. 33 BROOK STREET, W1 07. 20A BROOK STREET, W1 10. 64 SOUTH MOLTON STREET, W1 The luxury retail market has proved OML – February 2016 OML – March 2017 Rent review - June 2016 OML - September 2016 resilient to the consumer shift to £1,785 Zone A £650 Zone A £620 Zone A £543 Zone A e-commerce as consumers continue to prefer to purchase luxury goods in store. It is predicted by 2020 central London Zone A rents will have risen by 21%. 02. 1-5 NEW BOND STREET, W1 05. 23 BROOK STREET, W1 08. 26 BROOK STREET, W1 11. 10 SOUTH MOLTON STREET, W1 Retail demand on South Molton Street Rent review – September 2016 OML – July 2016 Rent review - February 2016 OML - April 2016 is influenced by the street acting as £2,225 Zone A £630 Zone A £550 Zone A £450 Zone A a pedestrianised gateway to Oxford Street and Bond Street.

The highest Zone A rents achieved on South Molton Street and Brook Street 03. 14 NEW BOND STREET, W1 06. 28 BROOK STREET, W1 09. 3 SOUTH MOLTON STREET, W1 12. 368-370 OXFORD STREET, W1 stand at £650, which compared to the OML – June 2016 Rent review - June 2017 Assignment – January 2016 Lease renewal – May 2017 traditional luxury core of Bond Street £2,000 Zone A £630 Zone A £518 Zone A £1,153 Zone A where Zone A’s are in excess of £2,000, illustrates the affordability of the street and potential for rental growth. WEST END AND MAYFAIR OFFICE WEST END OCCUPATIONAL INVESTMENT MARKET MARKET

London’s West End office leasing The majority of lettings are of suites It is estimated that 314,000 sq ft of London’s real estate market Total West End Investment volume The geographic origin of this capital market has remained resilient of 1,000 – 3,000 sq ft. Insurance developments and refurbishments continues to see investors deploying during 2017 reached in excess of is diverse however, it remains to slower economic growth. By & Financial services occupiers will complete between 2018 and 2019, their capital into the city particularly £7.6 billion. This figure is approximately dominated by Asian and Middle November 2017 take-up totalled 4.26 dominate, accounting for nearly 50% which is constrained when considering the West End market. 7% ahead of 2016’s total and Eastern investors. million sq ft, 16% above the same of take-up for the past five years, with the 10 year average take-up is illustrates growing investor appetite point in 2016. notable acquisitions including Tudor 467,500 sq ft. Overseas capital is attracted by for London’s West End market. Yields remain low in the prime London Capital, Soros Fund Management and the transparency of an established sector and international investment Mayfair is the traditional core of HSBC Private Bank. In rental terms Mayfair’s average legal system, favourable economic Overseas capital continues to show demand for prime London addresses the West End office market and Grade A rent is £110.00 psf and rents conditions (including very appealing confidence in West End investment remains strong. consistently achieves the highest Mayfair’s supply remains stable in excess of £150.00 psf have been Sterling-US Dollar currency rates) opportunities, with approximately rents in London, due to constrained and currently stands around achieved on the area’s garden squares. and the city’s ability to attract and 65% of 2017’s market activity being Prime London office yields remain supply, demand from a wide variety of 550,000 sq ft, which represents sustain a skilled talent pool. from international investors. at 3.25% in the West End, and prime sectors and the prestige of a globally a vacancy rate of 4.7%, below the London retail yields remain at 2.50%. renowned address. 10 year average of 5.6%. Supply is restricted by a limited development 38 pipeline. 39

OFFICE LETTING COMPARABLES INVESTMENT TRANSACTION COMPARABLES

DATE ADDRESS FLOOR AREA (SQ FT) TENANT RENT TERM DATE ADDRESS TENURE PRICE NIY

Dec 17 34 Brook Street, W1 2nd 2,789 Tower House Partners £75.00 5 years Dec 17 24 Old Bond Street, W1 FH £141,000,000 2.46%

Oct 17 8 Sackville Street, W1 4th 2,682 CUKG Limited £79.50 5 years Jul 17 386 Oxford Street, W1 FH £29,500,000 1.83%

Sep 17 8 Sackville Street, W1 5th 1,705 FPE Capital £73.50 5 years Oct 17 35 Dover Street & 15 Berkeley Street, W1 FH £95,000,000 2.74%

Aug 17 7 Heddon Street, W1 3rd 2,069 Undisclosed £72.50 5 years Nov 16 9 Argyll Street, W1 FH £21,250,000 2.81%

Jun 17 43 Grosvenor Street, W1 4th 1,222 Ferrari Group £79.50 5 years Jun 16 169 New Bond Street, W1 FH £65,000,000 1.61%

Apr 17 23 Dering Street, W1 1st 1,780 Osborne Samuel Gallery £72.50 5 years Jun 16 14 Albemarle Street, W1 FH £21,100,000 1.91% FURTHER INFORMATION

PLANNING DATA ROOM VAT

The property sits within the Mayfair Please contact Allsop for access to the The property is VAT elected, which will Conservation Area, it is not listed. data room. be chargeable on the purchase price. It is anticipated that the transaction EPC available on the data room. is to be treated as a transfer of going concern (TOGC).

PROPOSAL

Offers are invited in excess of £56,000,000 subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 2.76% (after allowing for purchaser’s costs of 6.78%), rising to a yield of 3.00% in June 2018.

JAMES PARGETER CHLOE NEWTON NICK PEMBERTON +44 (0)20 7543 6883 +44 (0)20 7543 6886 +44 (0)20 7543 6775 [email protected] [email protected] [email protected]

Misrepresentation 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, give notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representative of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. January 2018.

The market statistics, rental and investments comparables have been supplied by third parties and their accuracy cannot be guaranteed.

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