The Royle Building

THE ROYLE BUILDING

A HIGH YIELDING REVERSIONARY INVESTMENT OPPORTUNITY, LOCATED WITHIN ONE OF LONDON'S MAJOR REGENERATION AREAS INVESTMENT SUMMARY THE ROYLE BUILDING ROYLE THE • Located equidistant from two of London’s most vibrant Tech Belt locations, Shoreditch and Angel, just a 10 minute walk from Tech City

• Attractive canal side setting, within close proximity to one of London’s major mixed use regeneration areas, City Road Basin and the City Road

• The property provides approximately 1,080 sq m (11,579 sq ft) NIA of high quality newly refurbished office accommodation arranged predominantly at ground floor level, across two units

• Long leasehold interest for a term of 125 years expiring 23 June 2123 (105 years unexpired) at a nominal initial ground rent of £1,000 per annum

• Fully let to award winning Catapult Enterprises Ltd (t/a Propercorn), and Somesuch & Co Ltd with weighted income of approximately 6.6 years unexpired

41 WENLOCK ROAD LONDON N1 • Current passing rent of £510,473 per annum which equates to a reversionary £44.09 per sq ft overall.

• Offers are sought in excess of £7,950,000 subject to contract and exclusive of VAT

• A purchase at this level reflects ahighly attractive net Initial yield of 6.01%, after purchaser’s costs of 6.68%, and a capital value of £687 per sq ft overall

LOCATION

THE SURROUNDING AREA HAS THE ROYLE BUILDING ROYLE THE EXPERIENCED SIGNIFICANT REGENERATION IN RECENT YEARS.

The property is located on the The location is set to improve western side of Wenlock Road, further upon the delivery of major which adjoins City Road to the forthcoming infrastructure projects. south, one of the main arterial Old Street station is to undergo a roads that links the City of London £50m upgrade, which will convert with Shoreditch, Kings Cross and the existing 1970s roundabout into Euston. The surrounding area and in an attractive new pedestrianised particular City Road has undergone public space, including seating significant regeneration in recent and trees. It will see the north- 41 WENLOCK ROAD LONDON N1 The Royle Building is located years, with numerous high quality western 'arm' of the junction by City equidistant from two of London’s conversions of commercial and Road closed and two-way traffic most vibrant and rapidly expanding industrial buildings to vibrant mixed reintroduced to the gateway to Tech Tech Belt locations, Shoreditch use schemes comprising offices, City as it becomes a new hub for the and Angel. The property offers an residential, hotel, student and retail thousands of people who live, work attractive canal side setting, within uses. Schemes such as 250 City and socialise nearby. close proximity of Islington’s City Road, The Eagle and Canaletto have Road Basin regeneration zone. Old benefited from the area’s proximity Street Roundabout and Tech City to the City of London, excellent are approximately a 10 minute walk public transport links and greatly to the south east of the property improved local amenities, making and the cosmopolitan areas of Angel this a desirable destination for urban and Clerkenwell are located a short living and working. distance to the west and south-west respectively.

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OLD S 23 22 21 20 19 including: hotels and restaurants, bars, of anumber offering base, occupier creative to the amenity rich provide Angel and Shoreditch 9 8 7 6 5 4 3 2 1 QuidCo. and (Interpublic), Lowe Group Systems, Adobe Inmarsat, Bank, Valley Silicon Headspace, Ticketmaster, Campus, Google Amazon, UK, Research Cancer include occupiers Local industries. art and music fashion, technology, media, fin-tech, in start-ups for incubator an as serves area The innovation. and creativity of centre new London’s as distinct Tech have become and City Shoreditch hub. technology global amajor as position its secured has years recent in Roundabout Street Old surrounding area the and to Shoreditch (TMT) companies telecommunication and media, technology, of influx unprecedented An

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28 27 26 25 24 18 17 16 15 14 13 12 11 10 D OZONE COFFEE OZONE ITALIANJAMIE’S NICHE SARDINE NARROWBOAT PUB THE UK CANCER RESEARCH TICKETMASTER KAPLAN PIXIPIXEL TRANSFERWISE CAPCO BENNETT L.K. MIXCLOUD VICE CONNECTIVITY

FARRINGDON 0.95 MILES FROM THE ROYLE BUILDING THE ROYLE BUILDING ROYLE THE 61 MINS 40 MINS ELIZABETH LINE (CROSSRAIL) READING SHENFIELD 7 MINS Crossrail is Europe’s largest infrastructure project and is set to transform SOUTHALL WEST ACTON BOND WHITECHAPEL EALING MAIN LINE STREET London’s transport network. It is estimated that the new rail line will bring an extra 1.5 million people to within 45 minutes of Central London. Services are due to commence in 2018 with Farringdon set to become one of the key 27 MINS HANWELL 18 MINS 10 MINS 5 MINS LIVERPOOL hubs and is located approximately a mile from The Royle Building. HAYES& EALING PADDINGTON TOTTENHAM STREET HARLINGTON BROADWAY COURT ROAD

When Crossrail opens in 2018, Farringdon Station will be the only 34 MINS 18 MINS HEATHROW ABBEY WOOD station in London that is connected to the Crossrail, Underground and AIRPORT Thameslink networks. Approximately one quarter of the population of England will be able to reach Farringdon Station within 45 minutes, which amounts to over 13.25 million people. Farringdon Station will provide a direct link to three of London’s five airports, with travel times to London destinations significantly reduced. It is also one stop to Kings Cross and the Eurostar Terminal. With 140 trains per hour forecasted to pass through the interchange, this location is expected to become an ever increasing business hub for occupiers seeking world class connectivity. ANGEL 0.3 MILES FROM THE ROYLE BUILDING CROSSRAIL 2 AND ANGEL UNDERGROUND STATION TWICKENHAM 41 WENLOCK ROAD LONDON N1 Angel Underground Station is currently included in the plans for a future SHEPPERTON north-south rail service across Greater London known as Crossrail 2. This KINGSTON will link Surrey and Hertfordshire via central London stations including TOOTING KING’S ROAD TOTTENHAM BROADWAY CHELSEA COURT ROAD NEW Victoria and King’s Cross St Pancras. The scheme aims to achieve SOUTHGATE Government approval in 2020, and be fully operational in the early 2030s. HAMPTON COURT WIMBLEDON CLAPHAM VICTORIA EUSTON STRAIGHT LINE JUNCTION CHESHUNT STATION SERVICES CHESSINGTON KINGS CROSS DISTANCE (DIRECTION) SOUTH ST.PANCRAS 0.55 miles Northern Underground and Old Street MOTSPUR PARK (South east) Mainline Rail services 0.3 miles Angel Northern Underground services EPSOM (West) Circle, Metropolitan and 0.95 miles Farringdon Hammersmith & City (South west) Underground services 6 GROUND FLOOR VACANT POSSESSION VALUES WITHIN THE LOCALITY HAVE ACHIEVED IN EXCESS OF £800 PER SQ FT

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3 LOCAL DEVELOPMENTS THE ROYLE BUILDING ROYLE THE 1 2 3 4 5 1 THE BOWER, EC1 7 ATLAS, EC1 Primary Use: Offices Primary Use: Residential Developer: Helical Developer: Rocket Investments Private Units: 301

2 WHITE COLLAR FACTORY, EC1 Primary Use: Offices 8 250 CITY ROAD, EC1 Developer: Derwent London Primary Use: Residential SHOREDITCH, Developer: Berkeley Homes ANGEL AND THE 3 THE ANGEL BUILDING, EC1 Primary Use: Offices 9 CANALETTO, EC1 CITY ROAD HAS 6 9 Developer: Derwent London Primary Use: Residential BEEN SUBJECT TO Developer: Groveworld UNPRECEDENTED 4 44-48 WHARF ROAD, N1 DEVELOPMENT Primary Use: Offices 10 ST MATTHEWS & ST MARKS Owner: Urban Lime Ltd HOUSE, SHEPHERDESS WALK, N1 ACTIVITY IN Primary Use: Offices RECENT YEARS. Developer: Schroders 5 SPECTRUM, 160 OLD STREET,

41 WENLOCK ROAD LONDON N1 7 8 10 EC1 Primary Use: Offices 11 THE LEXICON, EC1 Developer: Ropemaker Primary Use: Residential Partnership (50:50 JV between Developer: Mount Anvil GPE and the BP Pension Fund) This is largely being driven by occupational demand from rapidly 12 225 CITY ROAD, EC1 growing tenants within the tech 6 PROVOST & EAST, EC1 Primary Use: Residential and creative sectors, but also Primary Use: Offices Developer: Reuben Brothers residential occupiers seeking to be Developer: Rocket Investments part of the exciting transformation 11 12 13 of Shoreditch and the Tech Belt. 13 WHARF STUDIOS, N1 Primary Use: Offices

8 9 41 WENLOCK ROAD LONDON N1 THE ROYLE BUILDING DESCRIPTION ACCOMMODATION THE ROYLE BUILDING ROYLE THE TWO SELF-CONTAINED UNIT FLOOR NIA (SQ FT) NIA (SQ M)

Ground 6,316 586.77 WAREHOUSE STYLE Unit 1 OFFICE UNITS SITUATED Lower Ground 502 46.63 Basement 1,061 102.74

IN AN ATTRACTIVE CANAL Unit 2 Ground 3,700 343.7

SIDE SETTING. TOTAL 11,579 1,079.84

41 Wenlock Road comprises two self-contained warehouse style office units The refurbished modern situated in an attractive canal side setting fronting the Regents Canal and specification of both Units can be Wenlock Basin. The units form part of the The Royle Building which is an summarised as follows: attractive former print works originally constructed in 1937 of traditional 41 WENLOCK ROAD LONDON N1 brick. • Attractive canal side working environment The property underwent a comprehensive refurbishment in 2015 to provide • VRF air conditioning systems approximately 1,080 sq m (11,579 sq ft) NIA of modern well specified • Exceptional floor to ceiling warehouse style office space, arranged predominantly at ground floor level. heights of 3.2 – 3.5 metres • Newly installed suspended Unit 1 provides approximately 732 sq m (7,879 sq ft) and has extensive lighting frontage to the canal at northern and western elevations. Unit 2 provides • Outstanding natural light approximately 344 sq m (3,700 sq ft) and has a separate entrance fronting Wenlock Basin. The regular shaped floor plates benefit from vast floor to ceiling heights (3.2 – 3.5 metres) and large windows, ensuring exceptional levels of natural light.

9 11 41 WENLOCK ROAD LONDON N1 THE ROYLE BUILDING 3,700 SQ FT (NIA) FT SQ 3,700 GROUND 2 UNIT FLOORS OFFICE SPACE WAREHOUSE STYLE WELL SPECIFIED 11,579 SQFTMODERN THE WENLOCK BASIN WENLOCK THE 1,061 SQ FT (NIA) FT SQ 1,061 BASEMENT 1 UNIT (NIA) FT SQ 502 GROUND LOWER 1 UNIT 6,316 SQ FT (NIA) FT SQ 6,316 GROUND 1 UNIT 12 41 WENLOCK ROAD LONDON N1 THE ROYLE BUILDING unexpired leaseterm isapproximately 6.6years. £510,473 perannum(£44.09 persqft)overall andtheweighted average with thetenancy schedulesetoutbelow. The total gross rent is Somesuch &Co Ltd on FullRepairing andInsuringTerms inaccordance The property isletto Catapult Enterprises Ltd (t/a Propercorn) and SCHEDULE TENANCY RENT TOTAL GROSS TOTAL NET RENT HEAD RENT Unit 2 Unit 1Total Unit 1 UNIT Limited Somesuch &Co Propercorn) (trading as Limited Enterprises Catapult TENANT Floor Ground Basement Ground Lower Floor Ground DEMISE 11,579 3,700 1,061 502 7,879 6,316 (SQ FT) NIA 15/04/2016 03/03/2016 START LEASE 4/04/2021 02/03/2026 EXPIRY LEASE 25/02/2021 REVIEW RENT £509,473 -£1,000 £510,473 £190,400 £13,263 £22,590 £284,220 £320,073 RENT (P.A.) PASSING £44.09 £51.46 £12.50 £45.00 £45.00 £40.62 RENT (PSF) PASSING • • • • COMMENTS £76,160 Rent Depositof £192,043.5 Rent Deposit the review date 3 August 2017 until £320,072.50 from August 2017 3 June2016 to 2 £160,036.25 from 13 41 WENLOCK ROAD LONDON N1 THE ROYLE BUILDING anniversaries oftheleaseassetoutbelow: The headlease issubjectto stepped rental increases at the25th 105 YEARSUNEXPIRED. PROVIDING APPROXIMATELY YEARS EXPIRING23JUNE2123 LEASEHOLD FOR TERMOF125 THE PROPERTY ISHELDLONG SITE & TENURE Period 3 Period 2 Period 1 PAYMENTS HEADLEASE Period 5 Period 4 24/06/2048 24/06/2023 24/06/1998 FROM 24/06/2098 24/06/2073 23/06/2073 23/06/2048 23/06/2023 TO 23/06/2123 23/06/2098 HEAD RENT £16,000 £4,000 £8,000 £2,000 £1,000 T h i s o f f i c i a l c o p y i s i n c o m The above plan shows approximate boundaries copied from the title plan and is for indicative purposes only. purposes indicative for is and plan title the from copied boundaries approximate shows plan above The p l e t e Canal w i t h o u t t h e p r e c e d i n g n o t e s p a g e . 14 41 WENLOCK ROAD LONDON N1 THE ROYLE BUILDING INNOCENT DRINKS FOUNDERS COVENANT INFORMATION PROPERCORN HAS SECURED Drinks founders JamJar investment from theInnocent the company to secure a£7m The rapid success enabled popcorn in11countries. at The Royle Buildingandsellstheir staff at theirLondon headquarters The company now employs over 40 UK’s fastest growing snackbrands. popcorn iscurrently oneofthe this year; theirlow calorieflavoured seen popcorn salesincrease by 10% health conscious nation whichhas Capitalising onanincreasingly business partner Ryan Khon. by CEOCassandra Stavrou and health snackfounded in2011 Propercorn isanew generation CATAPULT LTD ENTERPRISES JAMJAR AND INVESTMENT A £7M INVESTMENT FROM INVESTMENT £7M A PIPER PRIVATEPIPER EQUITY www.propercorn.com Companies (May 2017). 1000: Europe’s Fastest Growing place intheFinancialTimes Propercorn alsoranked fifth £10m in2015 to £15min2017. Propercorn are forecast to risefrom Private Equitywebsite, salesof Wholefoods. According to thePiper supermarkets includingTesco and Propercorn isstocked inallmajor business. on thecontinued growth ofthe Chairman at thistimefocusing founder Adam Balonwas appointed Equity in2016. Innocent Drinksco- Investments, andPiperPrivate (t/ aPropercorn) www.somesuch.com for Best ShortFilmfor ‘Home’. Armour. The company won itsfirst BAFTA in2017 for Hondaand“ItComes from Below” for Under successful campaignssuchas“The OtherSide” Company of theYear’ award in2015 following its also awarded theprestigious ‘Production and 2017 ‘Production Company A-List’. Itwas has grown significantly to feature onthe2015 and videocommissioner Tim Nash.The company producer SallyCampbell,director NickGordon film production company founded in 2010 by Somesuch &Co isanaward winningglobal &CO LTDSOMESUCH RENTAL COMPARABLES THE ROYLE BUILDING ROYLE THE

UNION WHARF, UNIT 5 23 4-6 NILE STREET, N1 44-48 WHARF ROAD, N1 HQ SHOREDITCH, 26 UNDERWOOD STREET, N1 WENLOCK ROAD, N1 Size: 1,959 sq ft Size: 995 sq ft (ground) BEVENDEN STREET, N1 Size: 6,214 sq ft Size: 1,363 per sq ft Rent: £57.50 per sq ft Rent: £54.50 per sq ft Size: 8,680 sq ft Rent: £57.50 per sq ft (ground & mezzanine) Rent: £59.50 per sq ft Rent: £57.50 per sq ft (available)

INVESTMENT COMPARABLES 41 WENLOCK ROAD LONDON N1

UNION WHARF, UNIT 5 23 14 SHEPHERDESS WALK, N1 20 UNDERWOOD ROW, N1 GILRAY HOUSE, 146-150 CITY 21 WORSHIP STREET, EC2 WENLOCK ROAD, N1 Size: 4,616 sq ft (ground & (Vacant Possession) ROAD, EC1 Size: 12,864 sq ft (Available, vacant possession) lower ground) Size: 2,195 sq ft (over ground only) Size: 11,023 sq ft Tenure: Freehold Size: 1,363 sq ft (ground and Tenure: Virtual freehold Tenure: Long leasehold Tenure: Freehold Price: £14,250,000 mezzanine) Price: £2,900,000 Price: £1,900,000 Price: £11,000,000 NIY: 4.91% Tenure: Virtual freehold NIY: 3.11% Price/ sq ft: £866 psf NIY: 4.55% Price/ sq ft: £1,108 per Price: £1,350,000 Price/ Sq ft: £628 per sq ft Price/ sq ft: £998 per sq ft

15 Price/ Sq ft: £990 per sq ft 16 41 WENLOCK ROAD LONDON N1 THE ROYLE BUILDING per sqft. 6.01%, after purchaser’s costs of6.68%,andacapitalvalue of£687 A purchase at thislevel reflects ahighlyattractive netInitialyieldof contract andexclusive ofVAT for ourclient’s longleaseholdinterest. Million NineHundred andFiftyThousand Pounds) subjectto We are instructed to seekoffers inexcess of£7,950,000 (Seven PROPOSAL situated withintheRegent’s CanalConservation Area. The property islocated inThe London Borough ofHackney andis PLANNING CAPITAL ALLOWANCES VAT contact thevendor’s agentsto request access. Further information canbefound ontheonlinedata room. Please DATA ROOM Unit 2.Copies ofthecertificates are available onthedata room. The property hasanEPCrating ofA(54)for Unit1andE(106)for EPC available to thepurchaser by separate negotiation. The benefit of any unclaimedcapitalallowances could bemade transaction willbetreated asaTransfer ofaGoingConcern (TOGC). The property iselected for VAT anditisanticipated that the [email protected] 020 7588 4433 Matthew Millman rents are quoted exclusive ofVAT. October 2017. representation orwarranty whatsoever inrelation to thisproperty. Unless otherwisestated, allprices and correctness ofeachthem. Nopersonintheemployment ofAllsop LLPhasany authorityto make any statements orrepresentations of fact, butmust satisfy themselves by inspection orotherwiseasto the any responsibility andany intending Purchasers, Lessees orThird Parties shouldnotrely onthemas Purchasers or Lessees, and do not constitute any part of an offer or contract. Details are given without are, give notice that: These particularsare setoutasageneral outlineonlyfor guidance to intending DISCLAIMER: Allsop LLP on its behalf and for the Vendors or Lessors of this property, whose Agents they

[email protected] 020 7588 4433 Christopher James