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Home , 100 Bishopsgate, 22 Bishopsgate, 40 Leadenhall Street, Bishopsgate, Broadgate, Leadenhall Street

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7 BISHOPSGATE EC2

PRIME OFFICE BUILDING WITH EXCELLENT INCOME GROWTH POTENTIAL BISHOPSGATE BISHOPSGATE 2 3

Aerial photograph taken in February 2020 with CGI imagery of 8 Bishopsgate, One Undershaft, One Leadenhall and 40 Leadenhall BISHOPSGATE BISHOPSGATE 4 5

INVESTMENT SUMMARY

Highly prominent core City of London location, within five minutes’ walk of Street Station, the Bank of and Lloyd’s of London

Bishopsgate is transforming, with numerous new developments including the completion of in 2020, the largest development in the City of London

Modern and highly specified office building comprising 57,433 sq ft (5,335.5 sq m) of Grade A office and ancillary accommodation, comprehensively refurbished in 2013

Constructed behind an attractive Grade II Listed façade, providing a striking contrast to the new tower developments on Bishopsgate

Regular shaped floor plates of approximately 7,400 sq ft (687.5 sq m), benefitting from natural light to all four elevations

Strong environmental credentials with a BREEAM rating of ‘Very Good’

Multi-let to seven office tenants on full repairing and insuring leases with a weighted average unexpired lease term of 5.2 years to lease expiries and 2.1 years to tenant break options

Total gross passing rent of £2,956,639 per annum, reflecting a low overall passing rent of £52.78 per sq ft providing excellent prospects for rental growth

The Prime City of London office rent is forecast to reach £75.00 per sq ft in 2020 and £84.50 per sq ft in 2024

Long leasehold from the Master and Wardens of the Merchant Taylors Company with an unexpired term of 130 years expiring 30th March 2150, geared to the greater of 10% of the net rents received and the minimum ground rent of £150,000 per annum

Multiple asset management opportunities to increase income and future capital value

Offers are sought in excess of £55,000,000 (Fifty Five Million Pounds) for the long leasehold interest, subject to contract and exclusive of VAT.

Attractive net initial yield of 4.75% (assuming purchaser’s costs of 1.8%) and a low capital value of £958 sq ft. BISHOPSGATE BISHOPSGATE 6 7 BISHOPSGATE BISHOPSGATE 8 9

LOCATION

7 Bishopsgate is located in the core of With the and Lloyd’s of London within 200 metres of the property, the location has traditionally appealed the City of London, within five minutes’ to global occupiers spanning the banking, insurance and walk of , the professional sectors. However, the location is benefiting from Bank of England and Lloyd’s of London. significant investment and is undergoing a structural change by way of enhanced transport connectivity with the arrival The property occupies a prominent position on the western of the Elizabeth Line () at Liverpool Street in 2021 side of Bishopsgate, just to the north of the junction of and new landmark developments such as 22 Bishopsgate, , Bishopsgate, Cornhill and Gracechurch 8 Bishopsgate, Leadenhall Court and . Street. Bishopsgate is an instantly recognisable City of London These improvements are leading to a more diverse mix address and is a major thoroughfare connecting Liverpool of tenants eager to be in one of London’s most dynamic RETAIL AND Street and the Estate to the north and Fenchurch locations. In recent months the following diverse mix of office Street and London to the south. tenants have committed to the immediate surrounding area: LEISURE AMENITY Apple, Statkraft, Nasdaq, Cooley LLP, Convene, Aspen, RGA, AXA, Beazley Management, Hiscox, Bulb, McCann Erickson, TC ICAP, Product Madness and Mimecast.

Tenants are attracted not only by the enhanced transport connectivity and London’s very best office accommodation but the exceptional access to local amenity. , Broadgate Circle, The Royal Exchange and the destination restaurants at and in Market are within a short walk of the property. These amenities are constantly improving, for example, Everyman Cinemas and Eataly committed to the Broadgate Estate in 2019. BISHOPSGATE BISHOPSGATE 10 11

EE T ELD ST R BRUSHFI CONNECTIVITY

BROADGATE ESTATE

ISHOPSGATE B 7 Bishopsgate benefits from excellent transport LIVERPOOL ELIZABETH LINE (CROSSRAIL) connectivity with Bank, Monument, STREET

and Liverpool Street stations, all within 450 metres. BRICK LANE Crossrail is currently Europe’s largest infrastructureREET project and will bring These stations provide access to the London 1.5 million more people within a 45-minuteORTH commute ST of the City. The Underground Northern, Central, Waterloo & City, WENTW new Elizabeth Line (Crossrail) station at Liverpool Street will be Hammersmith and City, Circle and District C DEVONSHIRE LONDON WA fully integrated into London’s existing transportOMMERCIAL S network, offering Lines as well as Docklands Light Railway SQUARE D journey times to in 33 minutes, and National Rail services at Cannon Street LL in 7 minutes, in 6 minutes and Farringdon in and Liverpool Street and from 2021 STREE 2 minutes. The Elizabeth Line will not only considerably HITECHAPEL ROA Elizabeth Line (Crossrail) services W improve the accessibility of the property but promoteTREET at Liverpool Street. 5 minutes amenity provision and streetscape improvements in the surrounding area.

T HOUNDSDITC D OL BEVIS MARK EAST GH STREET BISHOPSGATE COMMERCIAL ROAD Spitalfields market H 10 Trinity

E Devonshire Square X S A WHITECHAPEL HI Y Royal Exchange R A Bank of England M PRINCESSTREE T Elizabeth Line TravelTREET Times (minutes) from Liverpool Street: 20 S ALDGATE 122 Leadenhall T Gherkin DGATE HIGH S Lloyds of London AL THREADNEEDLE STREE 33 10 7 4 ET 2 6 8 Monument 3 minutes Leadenhall market T LEADENHAL L STREE ALIE STRE CORNH ILL T GATE ALD

BANK L Heathrow Paddington Bond Tottenham FarringdonEMAN STR Liverpool Canary Stratford T 6 minutes E Street Court Road Street Wharf E MANSELLSTREE R 6 minutes T S KING WILLIAM E EET I M 5 minutes L

T FENCHURCH T STREET STREE STREET ET FENCHURCH COT STRE CANNON STREET PRES

CANNON BISHOPSGATE STREETSCAPE IMPROVEMENT STREET

MONUMENT The City of London identify the City Tower Cluster as a priority area in terms of upgrading pedestrian GREAT TOWER walkways and plan to partner with TfL to improve the public transport and pedestrian offering along the TOWER T Bishopsgate Corridor, whichGATEWAY extends from Liverpool Street to Monument Station. The enhanced public ROYAL MINT STREE STREE realm surrounding the property will improve pedestrian access and encourage additional retail amenity

T along Bishopsgate. TOWER HILL

LOWER THAMES STREE

T

GLOBE THEATRE BISHOPSGATE BISHOPSGATE 12 13

LOCAL DEVELOPMENTS & OCCUPIERS

7 Bishopsgate is surrounded by iconic tower buildings 4 7 and this prominence will be further enhanced by some of the City’s most prestigious and exciting developments as the location benefits from an inflow of global capital.

1 22 Bishopsgate, EC2 6 70 , EC3 Developer: AXA Developer: Nuveen Size: 1,380,000 sq ft (62 storeys) Size: 301,799 sq ft (21 storeys) Completion: H1 2020 Completion: Completed 2019 Comments: 70% let or under offer Comments: 88% let or under offer

2 8 Bishopsgate, EC3 7 , EC3

Developer: Mitsubishi Estates Company Developer: M&G 1 8 Size: 568,000 sq ft (50 storeys) Size: 880,000 sq ft (34 storeys) Completion: 2023 Completion: 2023 Comments: Construction commenced Comments: Construction commenced

3 One Leadenhall Street, EC3 8 One Bishopsgate Plaza, EC2 Developer: Brookfield Developer: UOL Group Size: 430,000 sq ft (35 storeys) Size: 536,000 sq ft (43 storeys) Completion: 2023 Completion: H2 2020 Comments: Planning granted Comments: Pan Pacific hotel and residential

4 One Undershaft, EC3 9 100 Bishopsgate, EC2 Developer: Perennial Developer: Brookfield Size: 968,752 sq ft (73 storeys) Size: 869,000 sq ft (37 storeys) 2 5 9 Completion: 2025+ Completion: Completed Q2 2019 Comments: Planning granted Comments: 95% let or under offer

5 , 52 , EC3 10 The Tulip, EC3 Developer: WR Berkley Corporation Developer: Safra Size: 387,303 sq ft (35 storeys) Size: 7 floors, 300 metre height Completion: Completed in 2018 construction Comments: 90% let or under offer Completion: 2025 if approved Comments: Planning appeal was submitted by Foster + Partners in January 2020

3 6 10 BISHOPSGATE BISHOPSGATE 14 15 BISHOPSGATE BISHOPSGATE 16 17

DESCRIPTION

The comprehensive refurbishment of 7 Bishopsgate completed in 2013 to provide a modern and highly specified office building, situated in the core of the City of London.

The building, originally constructed behind an attractive Grade The property is accessed from Bishopsgate via a double height II Listed façade, occupies a location steeped in history, situated reception area finished with polished marble stone, from adjacent to the Merchant Taylors’ Hall and provides a striking here three passenger lifts serve all floors. The primary core is contrast to the new tower developments on Bishopsgate. located towards the front of the building, which houses the lifts, stairwell and male, female and disabled toilets. The prominent façade is constructed of stone and pink marble and the rear elevations are of modern construction comprising Floor plates are T shaped and typically provide approximately a reinforced concrete frame structure with reinforced concrete 7,400 sq ft (687.5 sq m) of highly flexible office accommodation floors and fully glazed curtain walling. suitable for both open plan and cellular use. The floors benefit from excellent natural light with windows on all four elevations. Internally, the office accommodation is arranged over lower A terrace on the sixth floor provides impressive views of the ground, ground and six upper floors and provides a total net City of London skyline. internal area of 57,433 sq ft (5,335.5 sq m) of Grade A office and ancillary accommodation. BISHOPSGATE BISHOPSGATE 18 19 BISHOPSGATE BISHOPSGATE 20 21

SPECIFICATION

7 Bishopsgate was comprehensively refurbished to provide flexible, modern, Grade A office accommodation and achieved a BREEAM rating of “Very Good”.

The property benefits from the following high specification:

2x

Double height LG7 compliant Cycle access via a side entrance reception lighting to the north of the building

Male, female and disabled Impressive roof terrace Showers and bicycle storage WCs on each floor on the 6th floor facilities at lower ground level

Ceiling mounted three pipe Typical floor to ceiling heights of Tenant towel VRF fan coil air conditioning 2.7 metres (2.9 metres on ground) services

Fully accessible raised floors Individual Floor BREEAM rating (150mm void) Access Control of “Very Good”

Metal tiled suspended 3 x 13 person passenger EPC Rating ceilings lifts serving all floors of C (51)

Excellent levels 1 x 8 person firefighting lift Wired Certification of natural light serving ground to sixth floors Level Silver BISHOPSGATE BISHOPSGATE 22 23

ACCOMMODATION First Floor

Highly flexible floorplates, FLOOR USE NIA (SQ FT) NIA (SQ M) offering excellent natural 6th Office 6,084 565.2 light with windows on four 5th Office 7,622 708.1 elevations. 4th Office 7,901 734.0

3rd Office 7,908 734.7 Office BISHOPSGATE 7 Bishopsgate has been measured by Plowman Craven in accordance with the 2nd Office 7,959 739.4 RICS Code of Measuring Practice (6th 1st Office 6,929 643.7 Edition) and provides the following Net Ground Office 5,813 540.0 Internal Area. Ground Reception 558 51.8 Lower Ground Office 5,804 539.2 Lower Ground Storage 381 35.4 Lower Ground Ancillary 362 33.6 Lower Ground BMA 112 10.4 Total 57,433 5,335.5

A Duty of Care letter from Plowman Craven can be made available to the purchaser. Sixth Floor

Terrace

Office BISHOPSGATE

Not to scale. Indicative only. BISHOPSGATE BISHOPSGATE 24 25

TENURE

The property is held long leasehold from The Master and Wardens of the Merchant Taylors’ Company for 155 years from 31 March 1995 (130 years unexpired).

The head rent will be the higher of a fixed minimum rent of £150,000 per annum and 10% of the net rents received, namely the amount of the gross rents received from the sub-tenants less the permitted deductible expenses, calculated quarterly.

The maximum head rent payable based on the occupational tenancy is currently

£295,664 per annum (assuming no permitted deductible expenses).

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The site extends to a total of1 approximately 0.311 acres (0.126 hectares). The Title is 9 0 registered1 2at HM Land Registry under the title number NGL729179 as shown edged

in red on the plan below. City of

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HEADLEASE SUMMARY

LANDLORD The Merchant Taylors Company. e) Prompt and proper compliance with legislation affecting the Premises TERM 99 years from 31st March 1995 subject to the Tenant’s Right f) The payment of general and water rates and similar outgoings of Extension below. g) Sinking funds provided in accordance with the principles of good RIGHT OF EXTENSION The Tenant is entitled to extend the lease estate management to cover expenses falling under paragraphs for a further 56 years, provided it has given the Landlord written (b) and (c) above notice during the last 21 years of the Term. h) Costs of managing the Premises PREMISES 7/11 Bishopsgate and is shown edged red on the Title i) Other expenses occurred in the interest of good estate Plan. The area tinted blue includes just the ground floor. management and for the benefit of the occupiers j) Any other sums on or concerning the letting, marketing or GROUND RENT In respect of any year of the term the higher of management of the Premises which are not recoverable from £150,000 per annum and 10% of Net Rents for the same period. any tenant. Net Rents means the amount by which the Gross Rents for a particular period exceed the amount of Deductible Expenses for the same REPAIRING The Tenant is to well and substantially repair and to put period. The Ground Rent is reviewed on 15 January 2040 and and keep the Premises in good and substantial repair and well and every 20th anniversary of that date to the higher of 5% of the substantially maintained. Net Rents and £150,000 per annum. INSURANCE At all times the Landlord is to insure the Premises for GROSS RENTS the full reinstatement value of the buildings and against any loss of The aggregate of the following:- rent or service charge from the tenants. a) The gross amount of all rents, licence fees and other income ALTERATIONS premiums / receipts received by the Tenant The Tenant may not make any structural alterations without the b) Any sums received from insurers pursuant to any insurance policy previous written consent of the Landlord, such consent not to be relating to loss of rent of service charge unreasonably withheld or delayed. The Tenant is not to build on any c) Any interest paid to the Tenant on default unbuilt parts of the Premises immediately adjoining the Merchant d) All sums received by the Tenant in respect of any contributions Taylors’ Hall’s extension. or reimbursement of outgoings, insurance premiums, the cost ALIENATION of repairs, maintenance and decoration, management charges, cost of collecting rent and other sums linked to the provision An assignment of the whole is permitted without the Landlord’s of services or facilities consent (save in the last 7 years of the term) so long as the assignment is to a person or persons (natural or corporate) of good e) Any sums received in respect of the Tenant carrying out repute and of financial standing appropriate to the rents payable and management duties or obligations the Tenant’s obligations under the lease. The assignee must enter into f) Premiums, fines or key money received for surrenders, assignments, direct covenants with the Landlord. variations, compromises and settlements Underlettings of whole and permitted parts (meaning one or g) The proceeds of realising security in respect of any other matters more floors) are permitted with the Landlord’s consent (not to be referred to at (a) to (f) above unreasonably withheld or delayed) subject to the Landlord having first h) Any other receipts received arising from the disposal of equipment been supplied with full details of the proposed undertenant and its and furniture within the Premises that are paid to the Tenant financial status being appropriate to the rents payable. Assignment, i) All sums received by the Tenant in respect of contributions towards charging or mortgaging of part of the Premises is prohibited. The sinking or reserve funds Tenant is not to accept surrenders, vary underleases or grant options or rights of pre-emption without the Landlord’s consent (not to be j) Interest received by the Tenant on Gross Rents unreasonably withheld or delayed) unless the same is to facilitate DEDUCTIBLE EXPENSES redevelopment.

The aggregate of the following costs properly paid by the Tenant in USE respect of the matters specified in paragraphs (a) to (j) below:- The Tenant may not occupy or permit the Premises to be used or a) Insurance of the Premises and insurance against 3rd party liability occupied otherwise than as a bank and/or offices together with and other insurances effected pursuant to the Tenant’s obligations ancillary uses. to refund insurance premiums under the lease b) Repairing, maintaining and decorating the Premises c) The upkeep, maintenance and replacement of plant and machinery d) Cleaning, lighting, heating and cooling of the Premises BISHOPSGATE BISHOPSGATE 28 29

TENANCY 7 BISHOPSGATE AVERAGE PASSING RENT £52.78 PER SQ FT – VERSUS CITY OF LONDON PRIME OFFICE RENT OF £73.00 PER SQ FT

Multiple lease events provide strong income growth prospects. Income by tenant

7 Bishopsgate is let to seven occupiers, on full repairing The total gross current passing rent, assuming vendor top ups, Pioneer Underwriting Limited 25% and insuring leases, providing a diversity of income and is £2,956,639 per annum, which reflects a low overall passing Shawbrook Bank Ltd 17% opportunities for future rental growth by way of rent reviews, rent of only £52.78 per sq ft. lease re-gears and open market lettings. TwentyEighty Strategy Execution (UK) Limited 16% The net rent after the deduction of the maximum headlease The second-floor tenant TwentyEighty Strategy Execution (UK) rent would be £2,660,975 per annum. Gard (UK) Limited 15% Limited will vacate the building in June 2020. The vendor will Alexander Mann Solutions Limited 11% provide an 18-month rent guarantee at £60.00 per sq ft. The property has an unexpired term of 5.20 years to expiries and 2.13 years to breaks. City Asset Management PLC 8% Skilled Careers Limited 8%

Demise Tenant Floor Area Lease Lease Rent Lease Break Rent Rent Comments (Guarantor) (sq ft) Details Start Review Expiry Date (£pa) (£psf) Tenant Break Option: 23/06/2021, with six months notice required. If the tenant does not exercise this Pioneer Underwriting Limited (Minova Effective FRI 6th Floor 6,084 8/4/2014 7/4/2024 23/06/2021 (T) £337,054 £55.40 break right, no rent is payable from and including 23/06/2021 to and including 22/12/2021. Insurance Holdings Limited) Outside 1954 Act Tenant has the non-exclusive right to use 6 bicycle spaces and 6 lockers on the lower ground floor. Tenant Break Option: 23/06/2021, with six months notice required. If the tenant does not exercise this Pioneer Underwriting Limited (Minova Effective FRI 5th Floor 7,622 8/4/2014 7/4/2024 23/06/2021 (T) £394,585 £51.77 break right, no rent is payable from and including 23/06/2021 to and including 22/12/2021. Insurance Holdings Limited) Outside 1954 Act Tenant has the non exclusive right to use 6 bicycle spaces and 6 lockers on the lower ground floor. Current rent of £410,852 / £52.00 per sq ft per annum. There is a minimum uplift at the June 2023 rent review to £434,555 / £55.00 per sq ft per annum. Vendor to top up to the minimum rent at review. Effective FRI 4th Floor Gard (UK) Ltd (Gard AS) 7,901 28/6/2018 28/6/2023 27/6/2028 28/06/2023 (T) £434,555 £55.00 Tenant Break Option: 28/06/2023, with six months notice required. If tenant does not exercise break, Outside 1954 Act rent free period of 11 months from and including 29/06/2023. Tenant has non-exclusive right to use 20 cycle spaces and 3 showers. Effective FRI Tenant Break Option; 15/09/2020 with 6 months prior notice. 3rd Floor Shawbrook Bank Ltd 7,908 16/9/2015 16/9/2020 15/9/2025 15/09/2020 (T) £494,250 £62.50 Outside 1954 Act The tenant is required to pay compensation of £205,937.50 if it exercises its break. Tenant Break Option (Activated): 05/06/2020. TwentyEighty Strategy Execution (UK) Effective FRI 05/06/2020 (T) Current Rent £417,848 per annum / £52.50 per sq ft. 2nd Floor 7,959 5/6/2015 5/6/2020 4/6/2025 £477,540 £60.00 Limited (formerly ESI Corporation (UK) Ltd) Outside 1954 Act Activated 1 years rent deposit. Vendor to provide an 18 month net rent guarantee at £60.00 per sq ft. 1st Floor 6,929 1st Floor and Effective FRI Tenant Break Option (Not activated): 02/05/2019, as the tenant did not exercise this right, no rent is Alexander Mann Solutions Limited Ground 154 2/5/2014 1/5/2024 £325,818 £46.00 Part Ground Outside 1954 Act payable from and including 02/05/2019 to and including 01/03/2020. Total 7,083 Tenant Break Option (Not activated): 07/05/2020, with 12 months notice required. As the tenant Effective FRI 07/05/2020 Ground Floor Skilled Careers Limited 5,659 7/5/2015 7/5/2020 6/5/2025 £246,167 £43.50 has not exercised this right, no rent is payable from and including 07/05/2020 to and including Outside 1954 Act Not Activated 06/02/2021. Any remaining net rent free period to be topped up by vendor. Tenant Break Option: 16/07/2019 (Not Activated), with 9 months notice required. As the tenant has not exercised this right, no rent is payable from and including 16/07/2019 to and including 15/04/2020. Lower Ground Effective FRI Any remaining net rent free period to be topped up by vendor. City Asset Management plc 5,804 16/7/2014 16/7/2019 15/7/2024 £246,670 £42.50 Floor Outside 1954 Act 9 months rent deposit. Tenant has the non-exclusive right to use the decked terrace area. July 2019 rent review outstanding. Transformer EDF Energy Limited (Formerly London 31/5/1995 21/5/2094 £0 Chamber Electricity Plc)

Total 56,020 Gross Passing Rent £2,956,639 £52.78

Max (10%) £295,664 Headlease Rent

Net Rent £2,660,975

Current passing rent free periods to be topped up by the vendor Tenancy schedule excludes reception (558 sq ft), storage (381 sq ft), ancillary (362 sq ft) and BMA accommodation (112 sq ft). Building total Net Internal Area 57,433 sq ft BISHOPSGATE BISHOPSGATE 30 31

TENANT COVENANTS

7 Bishopsgate provides secure income from a diverse mix of tenants spanning the insurance, banking, wealth management, recruitment and education sectors.

Pioneer Underwriting Limited Shawbrook Bank Limited Skilled Careers Limited (25% of contracted income) (17% of contracted income) (8% of contracted income) Pioneer Underwriting is a specialist global Shawbrook is a specialist UK savings and Skilled Careers is one of the UK’s leading insurance underwriter, managing over £300m lending bank founded in 2011 to serve the professional search and recruitment in premiums across a broad spectrum of needs of SMEs and individuals in the UK with consultancies for construction, engineering business including Property, Casualty, Marine a range of lending and saving products. At 31 and property on both permanent and and Energy. The business is wholly owned by December 2018, total lending reached £5.9 contract assignments. BMS an independent and employee-owned, billion with £5.0 billion in customer deposits. For the year ended September 2018, specialist insurance broking group which For the year ended December 2018, Skilled Careers Limited reported a turnover provides clients with local service and global Shawbrook Bank reported a turnover of £21,165,466 and a pre-tax profit of solutions. The group is headquartered at 7 of £378,000,000 and a pre-tax profit of £1,498,147. Bishopsgate with 16 offices around the world £110,300,000. www.skilledcareers.co.uk and 375 people. www.shawbrook.co.uk Dun and Bradstreet Rating: 2A1 For the year ended December 2018, Dun and Bradstreet Rating: 5A1 Pioneer Underwriting reported a turnover of £19,579,000 and a pre-tax profit of £4,322,000. www.pioneeruw.com Dun and Bradstreet Rating: 3A1 City Asset Management Plc Alexander Mann Solutions Limited (8% of contacted income) (11% of contracted income) City Asset Management was established in Alexander Mann Solutions, founded in 1996 1988 by the Coghill family. It is a leading by Rosaleen Blair CBE, is a leading global investment management firm which focuses recruitment and talent management business. on enhancing the wealth of its private clients. Gard (UK) Limited The business today has 4,500 talent Over the past 30 years it has developed its (15% contracted income) acquisition and management experts spread services to serve clients, which range from Gard was founded in 1907 in Norway and over 90 countries servicing the requirements private individuals, families, charities, pension is now the largest marine insurer in the of 100 blue chip organisations. In 2018, the funds through to corporate bodies and world. The company offers shipowners and company was named 104 in the Sunday trusts. operators, shipyards, contractors and oil Times TopTrack 250, which lists Britain’s mid- For the year ended November 2018, City companies a breadth and choice of products market private companies with the biggest Asset Management reported a turnover of not available anywhere else in one place. The sales. £6,371,702 and a pre-tax profit of £454,400. business operates from 13 offices globally, For the year ended December 2017, www.city-asset.co.uk has 485 employees and currently insures Alexander Mann reported a turnover of Dun and Bradstreet Rating: 3A1 12,800 vessels. £146,975,000 and a pre-tax profit of For the year ended February 2019, Gard (UK) £24,268,000. Limited reported a turnover of £8,379,330 www.alexandermannsolutions.com and a pre-tax profit of £400,535. Dun and Bradstreet Rating: 5A1 www.gard.no Dun and Bradstreet Rating: 2A1 BISHOPSGATE BISHOPSGATE 32 33

MARKET COMMENTARY

Headline Key Stats

London created 73,000 new office-based jobs in 2019

Central London vacancy rate 4.00%

57% of the development pipeline under construction is already let or under offer

Prime City Rent grew 5% in 2019 to £73.00 per sq ft

Forecast Prime City Rent Q4 2024 - £84.50 per sq ft

The London office market is in the middle of a significant supply shortage

Only 5.3m sq ft of speculative space is under construction over the next three years versus the average annual take-up 12 Arthur Street, EC4 1 Square, EC2 Walsingham House, 35 Seething Lane, EC3 of newly constructed space of 5.6m sq ft for the past three Tenant Stephens Europe Tenant GF Financial Tenant GreyCastle years Limited Floor 2nd Floor 8th Floor 10th Size sq ft 7,240 Size sq ft 4,306 January 2020 Deloitte survey shows business confidence Size sq ft 8,500 Rent per sq ft £65.00 Rent per sq ft £70.00 among CFOs highest since records began in 2008 Rent per sq ft £73.50 Term Years (Break) 10 (5th) Term Years (Break) 10 (5th) Term Years (Break) 10 (5th) Date November 19 Date September 19 Date December 19 The London office leasing market defied political uncertainty in 2019, particularly after the General Election, with strong take up and falling supply. Rental growth was recorded across all London sub markets through the course of 2019 and further strong rental growth is forecast over the period 2020-2024.

London created 73,000 new office-based jobs in 2019 which resulted in strong demand and annual total take up of 12.8m sq ft, across a broad spectrum of sectors. With 3.5m sq ft of space currently under offer, the strong momentum in the market remains and it is anticipated that /Q2 2020 will show above average take up.

The supply of newly constructed office space across central London has become severely restricted, with the vacancy rate falling to 4.00%, the lowest level for three years. As a result, the leasing velocity of new schemes has increased with increased pre-letting activity, resulting in all new developments being at Forum St Paul’s, 33 Gutter Lane, EC2 24 King William Street, EC4 King’s House, 36 King Street, EC2 least 75% pre-let upon practical completion. Tenant Knight Frank Tenant Shure Tenant JMW Solicitors The restricted development pipeline and strong demand, Floor 6th Floor 5th Floor 5th & 6th resulted in rents growing 5% in 2019 to £73.00 per sq ft. With Size sq ft 7,515 Size sq ft 8,530 Size sq ft 5,855 a further 15% rental growth forecast from between 2020 and Rent per sq ft £71.50 Rent per sq ft £67.00 Rent per sq ft £69.00 2024, rents are expected to reach a new record high of £84.50 Term Years (Break) 10 Term Years (Break) 10 (5th) Term Years (Break) 5 (3rd) per sq ft in 2024. Date August 19 Date June 19 Date May 19 BISHOPSGATE BISHOPSGATE 34 35

MARKET COMMENTARY

Investment Market

The London office investment market enjoyed a very strong final quarter, with £4.7bn transacted in Q4 2019 amongst a variety of international and domestic investors active.

Whilst total volumes for 2019 stood at £11.3bn, down on the £17.6bn reported in 2018, investor sentiment has improved significantly following the result of the December 2019 General Election.

Against a backdrop of continued low interest rates, a healthy debt market and forecast strong rental growth, 10 Chiswell Street 30 Lombard Street 100 10 1 Kings Arms Yard capital targeting London has increased Transaction Date Q4 2019 Transaction Date Q4 2019 Transaction Date Q4 2019 Transaction Date Q4 2019 Transaction Date Q3 2018 to £32.75bn. Investors continue to be Size (sq ft) 57,954 Size (sq ft) 58,585 Size (sq ft) 101,823 Size (sq ft) 74,603 Size (sq ft) 56,071 attracted to London’s yields versus other Tenure Freehold Tenure Long Leasehold Tenure Long Leasehold Tenure Long Leasehold Tenure Long Leasehold global cities. Tenancy Multi Let (114 years / 10%) (148 years / 7%) (115 years / 10%) (123 years / peppercorn) Term Certain 3.2 years Tenancy Multi Let Tenancy Multi Let Tenancy Multi Let Prime yields currently stand at 4.00% Tenancy Multi Let Rent (£ per sq ft overall) £54.33 Term Certain 15 years Term Certain 9.5 years Term Certain 4 years in the City of London and with strong Term Certain 3.1 years Purchaser Royal London Rent (£ per sq ft overall) £64.53 Rent (£ per sq ft overall) £65.21 Rent (£ per sq ft overall) £42.95 demand and limited supply of new Asset Management Purchaser REInvest Purchaser KWAP Purchaser Longmead Capital Rent (£ per sq ft overall) £49.28 investment opportunities, yields are Purchase Price £65,000,000 Purchase Price £76,500,000 Purchase Price £141,000,000 Purchase Price £61,750,000 Purchaser London and Oxford forecast to fall through the course of NIY (%) 4.50% NIY (%) 4.16% NIY (%) 4.10% NIY (%) 4.60% Purchase Price £58,300,000 2020. £ per sq ft £1,112 £ per sq ft £1,306 £ per sq ft £1,385 £ per sq ft £838 NIY (%) 4.65% £ per sq ft £1,040 BISHOPSGATE BISHOPSGATE 36 37

INVESTMENT RATIONALE

Highly prominent Core City of London location

Bishopsgate is transforming with the arrival of new landmark tower office developments

Enhanced streetscape, retail and leisure amenity in the locality

The Elizabeth Line (Crossrail) will significantly improve transport connectivity

Strong building fundamentals and environmental credentials

Diverse income profile let off a low overall office passing rent of just £52.78 per sq ft

Multiple asset management initiatives providing exposure to the buoyant leasing market

Capturing future reversion will enhance the running yield to in excess of 5.00%

Proximity to major global occupiers attracts tenants to the area

Grade II Listed and exempt from empty business rates

Highly liquid lot size

Readily financeable at highly competitive rates

Low capital value £958 per sq ft BISHOPSGATE BISHOPSGATE 38 39

PROPOSAL

Offers are sought in excess of £55,000,000 (Fifty Five Million Pounds), for the long leasehold interest in 7 Bishopsgate, subject to contract and exclusive of VAT. An acquisition at this level reflects a net initial yield of 4.75% (assuming purchaser’s costs of 1.8%) and a low capital value of £958 per sq ft. The asset is currently held in a Jersey Property Unit Trust (JPUT), the vendor will consider proposals for the purchase of the holding structure. Purchasers should refer to their own advisers for accounting, legal, regulatory, tax or other advice in respect of the JPUT.

FURTHER INFORMATION

Debt Terms VAT

CBRE’s Debt Advisory team have obtained highly competitive The property has been elected for VAT. The sale may be indicative debt terms. Further information is available upon treated as a Transfer of a Going Concern (TOGC) depending request. on the purchaser’s VAT status.

Energy Performance Certificate (EPC) Collateral Warranties

The Building has an EPC rating of C51. A comprehensive set of third party warranties from the building contractor and core professional team will be made available to the purchaser. Capital Allowances

Any residual Capital Allowances will transfer to the purchaser. Dataroom

Access to the legal dataroom can be provided upon request. Planning

The property is Grade II Listed and is located within the City of London’s Bank Conservation Area. BISHOPSGATE BISHOPSGATE 40 41

A sale by:

on behalf of WELPUT.

BentallGreenOak is committed to its Environmental, Social and Governance undertakings and as such will not be issuing printed brochures. Please think about the environment before printing copies of this document.

CONTACTS

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

DEBT ADVISORY SERVICES: Piers Agace Philip Butterworth Sarah Humes Richard Day +44 (0) 20 7182 3766 +44 (0) 20 7182 3715 +44 (0) 20 7182 8376 +44 (0) 20 7182 2188 +44 (0) 7977 424 904 +44 (0) 7702 973 283 +44 (0) 7880 147 662 + 44 (0) 7825 313 653 [email protected] [email protected] [email protected] [email protected]

For enquiries relating to the Jersey Property Unit Trust, please contact David Martin, +44 (0) 20 7182 2468, [email protected]

Property information also available on www.cbredealflow.com

IMPORTANT INFORMATION This document and any other materials accompanying this document (collectively, the “Materials”) are provided for general informational purposes. By accepting any Materials, the recipient acknowledges and agrees to the matters set out below. The Materials have been prepared by CBRE Indirect Investment Services Limited (CBREIIS) (the “Advisor”), who are authorised and regulated by the Financial Conduct Authority. The Materials have been prepared on the basis of information obtained from the Advisor’s client (the “Sponsor”) and other sources which the Advisor believes to be reliable as of the specified date. The Advisor and the Sponsor do not undertake any duty or obligation to update the information. Neither the Advisor nor the Sponsor makes or gives any representation, warranty or guarantee, whether express or implied, that the information contained in the Materials or otherwise supplied to the recipient, at any time by or on behalf of the Advisor or the Sponsor whether in writing or not, relating to the opportunity discussed herein is complete or accurate or that it has been or will be audited or independently verified, or that reasonable care has been taken in compiling, preparing or furnishing the information. The Materials provide a guide only and are not intended to be exhaustive and, in particular, do not contain disclosure of any of the risks associated with the opportunity. The Materials are not to be construed as investment, tax or legal advice in relation to the relevant subject matter and the recipient is encouraged to seek independent legal or other professional advice on these matters. Any opinions or estimates contained in the Materials represent the judgment of the Advisor at this time and is subject to change without notice. No person providing Materials is acting as fiduciary with respect to the Materials. The distribution of the Materials (which term shall include any form of communication) is restricted pursuant to section 21 (Restrictions on Financial Promotion) of the Financial Services and Markets Act 2000 (“FSMA”). In relation to the , the Materials are only being distributed to, and is directed only at, persons (i) who have professional experience in matters relating to investments falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion Order) 2005, as amended (the “Order”), (ii) falling within article 49(2)(a) to (d) of the Order and (iii) to whom it may otherwise lawfully be distributed (all such persons together with qualified investors (as defined in the EU Prospectus Directive) being referred to as “relevant persons”). The Materials must not be acted on or relied on in the United Kingdom by persons who are not relevant persons. Any investment or investment activity to which this Memorandum relates is available only in the United Kingdom to relevant persons and will be engaged in only with such persons. By receiving the Materials you are deemed to warrant that you fall within the categories of persons described above. Neither the information, nor any opinion expressed herein constitutes a solicitation, or recommendation by us of the purchase, or sale of any securities, or any other financial instruments. Nothing in this document constitutes accounting, legal, regulatory, tax or other advice. CBREIIS does not accept any responsibility for the consequences of any person placing reliance on the content of this information for any purpose. The information contained in this brochure, including any data, projections, and underlying assumptions are based upon certain assumptions, management forecasts, and analysis of information available as at the date of this brochure and reflects prevailing conditions, and our views as of that date, all of which are accordingly subject to change at any time without notice, and we are not under any obligation to notify you of any of these changes. Past or projected performance is not necessarily indicative of future results. Notice is hereby provided that the Materials are confidential and are furnished solely for the purpose of the recipient’s review in connection with the opportunity discussed herein. The Materials are not to be used for any other purpose or made available to any other person without the express written consent of the Advisor. The opportunity is subject to prior placement and withdrawal, cancellation or modification without notice. For recipients based in the European Union the Materials are distributed by CBREIIS. For the purposes of Section 21 of the U.K. Financial Services and Markets Act 2000 (“the Act”), the content of the Materials have been approved by CBREIIS Limited, which is authorized and regulated by the UK Financial Conduct Authority and which does not deal directly with retail clients. February 2020 Property ID Number: CBRE-CM-ADV2414 www.cube-design.co.uk (Q4270) BISHOPSGATE 42