Baden Place 1

BADEN PLACE 1

BADEN PLACE CROSBY ROW | LONDON SE1 1YW

REVERSIONARY FREEHOLD MULTI LET OFFICE INVESTMENT BADEN PLACE 2

INVESTMENT SUMMARY:

Freehold.

Courtyard complex of 13 office units located on the west side of Crosby Row within a 3 minute walk of both London Bridge and Borough Underground stations.

Constructed in the 1980’s to provide character studio accommodation extending to 25,332 sq ft over ground and three upper floors with six car parking spaces at ground floor level.

Multi-let to 9 tenants over 13 units.

The property has an average weighted unexpired lease term of 3.1 years to expiry.

Potential to increase net lettable floor area, subject to planning through extension, reconfiguration and infilling of courtyard.

Current passing rent of £1,254,014 per annum, which equates to an average rent of £48.38 psf.

Excellent opportunity for investors to capitalise on strong rental growth supported by occupational demand.

Potential change of use to residential, subject to planning.

Offers are sought in excess of£22,500,000 (Twenty two million, five hundred thousand pounds), subject to contract and exclusive of VAT. A purchase at this level reflects anet initial yield of 5.22%, a capital value of £888 psf, and an attractive reversionary yield of 6.00% assuming standard purchase costs of 6.75%. BADEN PLACE 3

LOCATION:

LOCAL OCCUPIERS ATTRACTIONS Baden Place occupies a courtyard site on the west of Crosby Row, which links Long Consequently, an increasingly wide and Southbank is also a popular cultural destination for tourists. It hosts diverse occupier market is being attracted some of London’s most iconic tourist attractions including Tate Lane with Guy’s Hospital campus to the north. The property is located within a three to the area including: Modern Art, The South Bank Centre, Royal Festival Hall, and the minute walk of Borough High Street, the principal thoroughfare linking the City and National Theatre. The Hayward Gallery, the Imax Cinema, the Globe, London Bridge to the north, with Elephant and Castle to the south. News International and the Old and New Vic Theatres are also in close proximity. The Financial Times London Theatre Company is set to open London’s first new major Baden Place is located in London’s vibrant South Bank in close proximity to Borough Underground Station and theatre in 40 years in 2017 at One Tower Bridge. EY London Bridge Underground and mainline rail services. This unique area is undergoing a sustained period of transformation with many new developments and attractions moving into one of the oldest parts of London. PWC RESIDENTIAL

As a result of this investment and regeneration, the area is now recognised as a cosmopolitan working Transport for London Several prime residential developments have recently completed or are under construction in the area. These include NEO Bankside by environment which has attracted multiple major corporations whilst fast becoming the location of choice for the Omnicom media sector. The area offers employees proximity to Southwark and London Bridge which benefit from a wide Native Land, Union Square by Mount Anvil, Berkeley Group’s One variety of cultural and leisure amenities as well as excellent communication links. Oglivy and Mather Tower Bridge and One Blackfriars, and Taylor Wimpey’s Music Box on Union Street. Thomson Reuters We Work Time Inc BADEN PLACE 4

CANNON BOROUGH BOROUGH 20 FENCHURCH THE GUYS & ST LONDON MORE GLA TOWER STREET MARKET STREET BADEN SHARD THOMAS’ BRIDGE LONDON BUILDING BRIDGE PLACE HOSPITAL S

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S H O P F L A B O O R H R N S R V LO I I A N I D D O B

N U N C W T A G L L BADEN PLACE D

N GUILDHALL O E W N G A 5 T E S ALDGATE CENTRAL S T T R E R CRIMINAL EAST E TOWER T E COURT E 42

T 30 ST ALDGATE CITY THAMESLINK ST PAULS

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OF JUSTICE ST PAUL’S T B S E N ENGLAND V KS I R

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The property has excellent communication links. I BANK L C D O M BUILDING E G B T London Bridge Underground and mainline station A C E E MANSION HOUSE R D A E R

S R S T T M S

and Borough station are within a few hundred T R G E H I N R E T C

E R O metres. U

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STREET

BLACKFRIARS The South Bank connections provide easy access

N T B K M E B A N

L to the City, E MWest End and Canary Wharf. A CANNON STREET

I A O R U P TOWER GATEWAY T P

C C V I E R T K H MONUMENT A M F E

S E S R T R E G E I T TOWER HILL

LONDON BRIDGE A D I R

R S Situated approximately 300 metres to the north of Baden Place, H A M E S S T R E E T B T

R E

B W K O this station provides access to both the Jubilee and Northern lines. R L

The over ground station offers rail services to south London, Kent D A

G W E and Sussex. A E H S T D T L D G E S M I E I THE TOWER I T H F U

THE GLOBE R O OF LONDON

B BOROUGH

CHARING CROSS THEATRE S

TATE MODERN ST KATHARINE

Situated approximately 300 metres to the west of the property this O

ART GALLERY D DOCKS

station provides access to the Northern line.

L LO

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F SOUTHWARK WATERLOO

R E CATHEDRAL I G A 4 minutes BOROUGH D

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GREEN PARK OA LONDON

6 minutes D W

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R H 3 minutes E E G T I

H S GUY’S AND T WATERLOO H T H G O SOUTHWARK ST THOMAS’ EAST U M A S O HOSPITAL S T R 11 minutes R E O E B T BADEN PLACE

London Bridge station refurbishment

B CANARY

R M WHARF

BOROUGH O 6 minut es

JOURNEY TIMES FROM LONDON BRIDGE (MINUTES): u N

3 minutes S L O E

N Y NORTHERN LINE: G

L A S D N WITHIN 3 RT MINUTES E A

2 5 6 11 O E R E T ROTHERHITHE LONDON BANK MOORGATE OLD KING’S E G WALK OF THE

BRIDGE STREET CROSS R DG E RI A T B J A D JUBILEE AND M R JUBILEE LINE: O A E I C V A W R E O A 8 6 4 3 6 R O D T S NORTHERN LINES T BOND GREEN WESTMINSTER WATERLOO LONDON CANARY R BERMONDSEY Not to scale. Indicative only E STREET PARK BRIDGE WHARF E T

ELEPHANT & CASTLE 13 minutes BOROUGH LONDON ROYAL GUYS & ST SCIENCE TATE LONDON VINOPOLIS BOROUGH MORE CANNON HMS WATERLOO FESTIVAL THOMAS’ GALLERY MODERN BRIDGE MARKET LONDON STREET BELFAST HALL HOSPITAL LONDON

BADEN PLACE

SITUATION:

FUTURE DEVELOPMENT

London Bridge is currently undergoing a £500 million refurbishment to increase capacity which is due to complete in January 2018. Upon completion, the station will offer further retail and restaurant amenities along with connectivity to new stations such as Peterborough and Cambridge.

The retail and leisure offering is also set to dramatically improve. Meyer Bergman has been granted planning permission for its redevelopment of the Vinopolis site next to Borough Market. Consent has been granted for a mixed use scheme comprising 111,610 sq ft of retail space and 11,334 sq ft of leisure provision across the railway arches and former Vinopolis building. BADEN PLACE 7

DESCRIPTION:

Baden Place was constructed in the mid-1980s to provide an attractive courtyard studio complex. The property is arranged in a ‘U’ shape facing into a central courtyard. It is accessible from Crosby Row via a dedicated entrance on the east side of the property.

The property comprises 13 separate office units arranged over ground, first, second, and third floors. The units range in size from 521 sq ft to 4,465 sq ft. The courtyard has the capacity to provide 6 car parking spaces. Suspended walkways provide access to all of the units.

The accommodation benefits from excellent levels of natural light. Internally, the specification varies between units. A number of units have recently been refurbished to provide exposed services, air handling units, and suspended lighting. Other units have suspended mineral fibre ceilings, recessed lighting, central heating, and perimeter trunking.

The Landlord is currently undertaking the following works to the scheme which completed in April 2017:

Internal and external decoration of the front elevation and courtyard facing windows; Resurfacing of the entire 3rd floor walkway; Refurbishment of the common parts WCs on ground, 1st, and 2nd floors; Refurbished the 11 person passenger lift which services the property.

There is a restriction on hours of use between 7am to 7pm Monday to Friday. BADEN PLACE 8

ACCOMMODATION: NOSY CROW LIMITED 3RD FLOOR LIFT

AREA NIA AREA IPMS 3

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

3 414.8 4,465 430.9 4,638

2 696.8 7,501 710.2 7,644 WC YOUNG MINDS TRUST 1 696.3 7,495 709.2 7,641 2ND FLOOR YOUNG MINDS TRUST LIFT Ground 545.4 5,871 554.7 5,972 ANDERSON ACOUSTICS Total 2,353.3 25,332 2,405.7 25,896 LTD

VACANT

WC MARITIME STRATEGIES 1ST FLOOR CRITICAL INTERNATIONAL RESEARCH LIFT LTD LTD IDENPROTECT

VACANT

WC ONALYTICA LIMITED GROUND FLOOR ME CONSTRUCTION LIFT LTD

TUBE LINES LTD

TUBE LINES LTD BADEN PLACE 9

TENURE:

Freehold.

The site extends to 0.28 acres.

M AI R D G CO G UR IN

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Map with the sanction of the controller of H.M. 7Stationery Office. 1 Crown Copyright reserved 1

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b u Eynsford S H BADEN PLACE 10

TENANCIES:

The property is multi-let to 9 tenants over 13 units and currently produces a rent roll of £1,254,014 per annum, reflecting a passing rent of £48.38 per sq ft overall. The property has an average weighted unexpired lease term of 3.1 years until expiry.

FLOOR UNIT TENANT AREA NIA AREA NIA LEASE LEASE RENT RENT ERV ERV EPC OUTSIDE COMMENTS (SQ M) (SQ FT) START EXPIRY (£ PA) (£PSF) (£ PA) (£PSF) 1954 ACT

Ground 1 Tubes Lines Ltd 51 547 08/01/09 07/01/19 £16,020 £29.29 £30,085 £55.00 G157 Yes Sublet to World Hepatitis Alliance

2 Onalytica Limited 202 2,173 19/12/16 18/12/19 £110,000 £50.62 £119,515 £55.00 C59 Yes

3 ME Construction Ltd. 244 2,630 27/07/ 1 1 26/07/19 £118,350 £45.00 £144,650 £55.00 C63 No 27/07/16 rent review being reviewed, contracted rent £45,975 pa. Vendor to top up to anticipated settlement of £45 psf.

4 Tubes Lines Ltd. 48 521 08/01/09 07/01/19 £15,720 £30.17 £28,655 £55.00 G157 Yes

1st 5 iDenprotect 124 1,330 01/07/17 30/06/20 £75,000 £56.39 £75,145 £56.50 D87 Yes 01/07/17 lease start, vendor to top up. No rent free.

6 Maritime Strategies 201 2,164 08/02/13 07/02/18 £58,035 £26.82 £122,266 £56.50 B43 Yes International Ltd.

7 Critical Research Ltd 246 2,643 01/01/17 31/12/21 £134,700 £50.96 £149,330 £56.50 C51 Yes Vendor to top up to the 01/01/19 increase. Contracted rent £101,025pa, increases to £112,500 pa from 01/01/18, and to £134,700 from 01/01/19.

8 VACANT 126 1,358 - - £76,727 £56.50 £76,727 £56.50 C74 Yes Vendor to provide 6 month rental guarantee

2nd 9 Anderson Acoustics Ltd. 125 1,344 08/03/16 07/03/19 £61,717 £45.92 £75,936 £56.50 E116 Yes

10 Young Minds Trust 201 2,164 16/09/16 15/07/19 £110,400 £51.02 £122,266 £56.50 B49 Yes

11 Young Minds Trust 246 2,643 04/08/16 03/08/19 £134,700 £50.96 £149,330 £56.50 B46 Yes

12 VACANT 125 1,350 - - £76,275 £56.50 £76,275 £56.50 C57 Yes Tenant in liquidation (Contracted rent £53,650 pa). Vendor proposes to provide 12 month rental guarantee.

3rd 13 Nosy Crow Limited 415 4,465 31/04/17 20/04/22 £260,000 £58.23 £259,997 £58.23 C68 Yes 3 months rent free - vendor to top up

Ground CP 1 Anderson Acoustics Ltd. - - TBC TBC £2,400.00 - £2,400.00 - Yes Car Parking Space

CP 3 ME Construction Ltd. - - 27/07/ 1 1 26/07/19 £1,970.00 - £2,400.00 - No Car Parking Space

CP 4 Nosy Crow Limited - - 31/04/17 20/04/22 £- - £- - Yes Car Parking Space

CP 6 Tubes Lines Ltd. - - 08/01/09 07/01/19 £2,000.00 - £2,400.00 - Yes Car Parking Space

CP 2/5 VACANT ------£4,800.00 - - 2 Vacant Car Parking Spaces

2,353 25,332 £1,254,014 £1,442,176 BADEN PLACE 11

TENANTS:

Dun and Bradstreet reports on each of the tenants are available upon request.

Onalytica Ltd Young Minds Trust Maritime Strategies Critical Research Ltd ME Constructions Ltd Founded in 2009, Onalytica has Young Minds is the UK’s leading charity Internal Ltd Critical Research offers qualitative and ME Construction was founded in offices in Baden Place and New York. committed to improving the emotional Founded in 1986, Maritime Strategies quantitative research, with particular 2007. It is a specialist high quality Onalytica is funded by the founders of wellbeing and mental health of children International is one of the shipping expertise in telephone research and contractor which provides clients with Bebo and operates a software platform. and young people. Additionally, industry’s foremost independent web-based surveys. They specialise in a professional construction service The platform allows customers to through their Parents Helpline, online research and consultancy firms. The difficult-to-reach business audiences for structural alterations, and internal/ manage and scale relationships with resource, training and development firm has a strong focus on maritime and work with clients to help design, external refurbishments across a key influencers and stakeholders such they provide expert knowledge to economics and econometric modelling. implement and report actionable variety of sectors including commercial, as journalists, analysts, thought lenders professionals and parents. results. healthcare, residential, and education. and bloggers.

Nosy Crow Ltd Tube Lines Anderson Acoustics iDENprotect Nosy Crow is a multi award-winning, Tube Lines Ltd is an asset-management Anderson Acoustics was formed in iDENprotect create solutions that independent company. They began company responsible for the 2006 and is a specialist acoustics provide secure access to data without publishing child-focused, parent- maintenance, renewal and upgrade of consultancy practice. Anderson compromising the user experience or friendly children’s books and apps in infrastructure, including track, trains, Acoustics provide acoustics and security. Their products are designed to January 2011 with the aim of creating signals, civil work and stations of vibration management consultancy integrate with a variety of computing books and apps that encourage London Underground lines. Tube Lines services across airport construction, platforms with a particular focus on children to read for pleasure. One have recently been responsible for the environmental, schools, and building mobile devices. Regulated blue chip, of the fastest growing publishing maintenance of the Jubilee, Northern acoustics sectors including UKAS government, and defence clients use companies in the UK. and Piccadilly lines, and remains accredited sound insulation testing. out technology to simplify security, responsible for over 200 miles of track, reduce costs, and enhance productivity. 255 trains, 100 stations, and over 2,500 bridges, lifts and escalators. BADEN PLACE 12

MARKET ACTIVITY: FURTHER INFORMATION:

Southwark represents one of the most exciting and dynamic central London PLANNING: VAT: property markets characterised by historic low levels of supply, competitive The property is not listed and does not lie within any The property has been elected for the purposes of VAT. occupational demand and unprecedented investment. conservation areas. It is envisaged that the sale will be structured by way of Transfer of Going Concern. Grade A availability in Southwark is currently approximately 200,000 sq ft (1.17%) compared with take up for 2016 of approximately 760,000 sq ft. DATA ROOM: LEASING COMPARABLES Further information can be found in the marketing data SERVICE CHARGE: ADDRESS TENANT FLOOR SIZE RENT DATE room, access to which is available upon request. The service charge budget for the year to March 2018 (SQ FT) (PSF) is £104,750 pa reflecting an average of £4.13 per sq ft. Quoting 48 Saxon House, Southwark Street Available to Let 1,114 - More information is available upon request. £65.00 The Hop Exchange, 24 Southwark Street, SE1 Evora Global 3rd 985 £60.96 Mar-17 Collegiate House, 9 Thomas Street, SE1 Turquoise Branding 1st 1,706 £65.00 Feb-17 Arthurs Mission - 30 Snowsfields, SE1 Team London Bridge GF 1,351 £50.00 Dec-16 Proof Drinks Ltd (Sublease Plantain House 1st 1,012 £51.88 Nov-16 from Young Minds Trust) India House, 45 Curlew Street, SE1 Berkeley Homes 1st 6,444 £49.09 Oct-16 21 Queen Elizabeth Street, SE1 Channel 3 Consulting 2nd & Mezz 3,908 £50.00 May-16 21 Queen Elizabeth Street, SE1 Audiencescience GF 2,441 £51.00 Apr-16 The Clove Building, 4 Maguire Street, SE1 Expedition Engineering 1st 7,565 £52.50 Apr-16 38 Shad Thames, SE1 Schneider GB B & GF 2,445 £61.10 Mar-16 9 Holyrood Street, SE1 The Reptile Group 1st 2,440 £55.65 Nov-15 9 Holyrood Street, SE1 Centre for Cities 2nd 2,489 £50.52 Oct-15

INVESTMENT COMPARABLES

ADDRESS SIZE TENURE TENANCY RENT PRICE NIY CAP DATE (SQ FT) VAL (PSF) £5.50m 122-126 Tooley Street, SE1 5,105 VFH Multi-let £49.90 4.34% £1,077 (Quoting) 9 Holyrood Street, SE1 14,190 FH Multi-let £45.14 Combined £895 quoting price Shand House, SE1 22,768 FH Multi-let £33.00 of £43.00m 4.62% £895 Apr-17 sold for 22 Shand Street, SE1 19,149 FH Multi-let £20.78 £45.00m £600 1 Long Lane, SE1 24,936 FH Vacant - £19.10m - £765 Feb-17 81 Southwark Street, London, SE1 0HX 7,349 FH Vacant - £5.56m - £757 Jan-17 India House, 45 Curlew Street, SE1 37,988 FH Multi-let £40.00 £28.50m 5.00% £750 Dec-16 82-83 Blackfriars Road, London, SE1 8HA 10,437 FH Multi-let £48.25 £9.10m 5.18% £872 Sep-16 Magdalen Hose, 136-140 Tooley Street, SE1 25,849 FH Multi-let £36.00 £23.25m 3.75% £900 Aug-16 3 Marshalsea Road, SE1 6,553 FH Vacant - £5.70m - £870 Apr-16 65 Southwark Street, SE1 51,129 FH Multi-let £43.58 £48.20m 4.33% £943 Jun-16 Bramah House, 65-71 Bermondsey Street, SE1 15,714 FH Multi-let £43.00 £14.25m 4.44% £907 Mar-16 BADEN PLACE 13

PROPOSAL:

We are instructed to invite offers for the freehold interest in Baden Place in excess of £22,500,000 (Twenty two million, five hundred thousand pounds), subject to contract and exclusive of VAT. This reflects a net initial yield of 5.22%, a capital value of £888 psf, and an attractive reversionary yield of 6.00% assuming standard purchase costs of 6.75%. A purchase of the corporate entity may be available by separate negotiation.

CONTACT:

For further information or to arrange an inspection of the property which is to be strictly by appointment only, please contact:

Jonnie Ray Pedro Milborne [email protected] [email protected] +44(0) 7917 647 652 +44(0) 7798 800 535 +44(0) 20 7534 0994 +44(0) 20 7534 0991 Tim Cuzens Ryan Meader [email protected] [email protected] +44(0) 7900 263 493 +44(0) 7585 446 354 +44(0) 20 7534 0992 +44(0) 20 7534 0995

Misrepresentation Act 1967. Cortex Partners, for themselves and the vendors of the property whose agents they are, give notice that: 1 These particulars are a general outline only for the guidance of prospective purchasers and do not constitute the whole or any part of an offer or contract: 2 Cortex Partners cannot guarantee the accuracy of any descriptions, dimensions, references to condition, necessary permissions of use and occupation and other details contained herein and therefore prospective purchasers must not rely on them as statements of factor representations and must satisfy themselves as to accuracy: 3 Cortex Partners or their employees do not have any authority to make or give representation or warranty or enter into any contract whatever in relation to this property: 4 Rents and prices quoted may be subject to VAT in addition: 5 Cortex Partners will not be liable in negligence or otherwise for any loss arising from the use of these particulars: 6 No responsibility can be accepted for any expenses occurred by intending purchasers in inspecting properties which have been sold or withdrawn: 7 Cortex Partners have not made any investigations into the existence or otherwise of any issues concerning pollution, potential land, air or water contamination. The purchaser is responsible for making their own enquiries in this regard. 8 All maps are for illustrative purposes only. May 2017