Clerkenwell EC1 Freehold Investment Opportunity with Significant Development Potential Executive Summary

Located in the heart of close to A rare opportunity Farringdon Station to acquire a prime Freehold Comprises 21,491 sq ft (1,996.6 sq m) of offices over freehold asset with basement, ground and 3 upper floors short term income Let to Trace Group Limited until 23rd September and exceptional 2022, who have been in occupation since 1989 Current rent passing of £712,880 which equates value-add potential. to a low overall rent of £33.17 per sq ft The rent is subject to fixed uplifts Positive pre-application responses for an exciting new build office scheme Offers are invited in excess of £14,000,000 (fourteen million pounds) for the freehold interest, subject to contract and exclusive of VAT A purchase at this level reflects a net initial yield of 4.77%, assuming purchaser’s costs of 6.79%, a capital value of £651 per sq ft on the existing accommodation and £366 per sq ft on the proposed development scheme 2 / 3

Located in the heart of Landmarks 1 20 (Walkie Talkie) Clerkenwell with excellent 2 (Gherkin) 3 110 transport connections 4 Barbican 5 Guildhall 6 Smithfield Market 7 St Paul’s Cathedral 8 22 Bishopsgate 9 The Shard 10 42

224–232 Liverpool Street Moorgate St John St. Barbican Farringdon East Cannon Street St Paul’s Farringdon

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6 Location

Farringdon is founded upon a rich heritage of creativity

Located within Farringdon’s Clerkenwell village, the area has a rich heritage, from the Order of St John who founded what is today the St Johns Ambulance service, to the licensing of 35 Shakespeare’s plays and the birthplace of the English dictionary.

Today, Farringdon is regarded as the Europe’s pre-eminent centre of innovation where creative, media and technology firms reside amongst Michelin star restaurants, bustling markets and independent cafés and bars.

London is the tech capital of Europe, and St John Street sits at the epicentre of London’s ‘Golden Triangle’ of tech and creative enterprise.

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r lb n eet orn Gr ce V Local occupiers Local Amenitiesiad esh ry uct am City Str L ee a t ne Thameslink 1 Adidas 10 McCann Erickson 1 Artisan St Paul’s 10 Modern Pantry 2 Agent Provocateur 11 Save the Children 2 Brill 11 Passo 3 AirBnB 12 Steelcase 3 Caravan 12 Polpo 4 Alexander McQueen 13 Tesco 4 Clerkenwell Grind 13 St John 5 AKQA 14 TM Lewin 5 Coin Laundry 14 Sushi Tetsu 6 Deloitte Digital 15 Turner Broadcasting 6 Granger & Co 15 The Gate 7 Knoll 16 Unilever 7 Iberica 16 The Green 8 Kurt Geiger 17 Vitra 8 Look Mum No Hands 17 The Jerusalem Tavern 9 Lastminute.com 18 Zaha Hadid 9 Luca 18 The Slaughtered Lamb 4 / 5

Creativity and innovation are fundamental pillars of London’s Complementing the vibrant office market is the excellent economic future and Clerkenwell is a defined area that drives retail and leisure amenity which has been transformed over economic growth and networks of knowledge. the last ten years. Leather Lane and Exmouth markets have developed to become amongst London’s premier daily food This highly sought after location offers a hub for technology and markets providing office workers with an unparalleled choice creative industries, at the cutting edge of their trade, alongside of cuisines. highly creative fields like architecture, design, theatre production, advertising and marketing. New restaurants are opening regularly adding to some firm London favourites, including Granger & Co, Modern Pantry, Pizza Pilgrims and Hix, which are all well established in the area. Unrivalled Connections

Over 140 trains per hour through the Farringdon interchange

Perhaps one of London’s most central locations, Farringdon is just a short walk from the City, a tube ride into the West End and just three minutes by overground rail to St Pancras International, with Eurostar services to Europe.

Opened in 1863, Farringdon Station claims to be the oldest underground metro station in the world, but perhaps more impressive is the estimation that by 2021, a quarter of ’s population will be able reach Farringdon within 45 minutes.

Station Connections Travel Times (Mins)

Farringdon 8

Angel 9

Old Street 14

Kings Cross St Pancras 13

Liverpool Street 15

Journey Times from The Building. Source TfL

New Farringdon ticket hall for the Elizabeth Line (CGI)

Elizabeth Line (Crossrail) Stratford

Tottenham Liverpool Reading Paddington Bond Street Court Road Farringdon Street Whitechapel 10 To Shenfield mins

59 8 4 2 224–232 2 5 Canary Wharf mins mins mins mins mins mins St John St. To Abbey Wood

Heathrow 8 mins 31 mins Journey Times from Farringdon Station. Source crossrail.co.uk

Connectivity is set to be further improved in 2020 by the opening The new Farringdon Station western ticket hall will be of the new Elizabeth Line (Crossrail), which can be accessed 500 metres from St John Street. from the nearby Farringdon station. Elizabeth Line services will be fully integrated with London’s existing transport network The Elizabeth Line will provide fast access to a large number and will bring an extra 1.5 million people to within a 45 minute of stations across the capital, with the journey times from journey time of the capital. Farringdon to Canary Wharf and Bond Street being reduced to 8 and 4 minutes respectively. Farringdon will provide a major interchange between Crossrail, Thameslink, London Underground and National Rail services. Local Developments 6 / 7

Current & future developments

Herbal House, Spectrum, The Smithson, 10 Back Hill EC1 160 Old Street EC1 6-9 Briset Street EC1

Status Completed Q1 2018 Status Completed Q2 2018 Status Completion Q3 2018 Developer Allied London & Aerium Developer Great Portland Estates Developer Savills IM Architect Buckley Gray Yeoman Architect Orms Architect Tate Hindle Scheme 115,000 Ft² mixed use Scheme 153,000 Ft² of Grade A office Scheme 47,900 Ft² of Grade A development comprising offices, accommodation office accommodation retail and residential

The Ray, The Farmiloe Building, Farringdon East, 119 EC1 St John Street EC1 EC1

Status Completion Q1 2019 Status Completion Q2 2019 Status Completion Q2 2019 Developer Viridis Real Estate Developer Aberdeen Standard Developer Helical Architect Allford Hall Monaghan Morris Architect AWW Architect PLP Architecture Scheme 100,000 Ft² development Scheme 63,400 Ft² development Scheme 75,000 Ft² of Grade A office and including 90,000 Ft² of of Grade A offices retail accommodation Grade A offices

100 St John Street, Farringdon West, - EC1 EC1 West Smithfield, EC1

Status Completion Q3 2019 Status Completion Q4 2019 Status Completion 2022 Developer Aberdeen Standard Developer HB Reavis Developer Architect AWW Architect John Robertson Architects Architect Stanton Williams and Asif Khan Scheme 31,000 Ft² development Scheme 207,000 Ft² of Grade A offices Scheme 269,000 sq ft of Museum of Grade A offices and 25,000 Ft² of retail of London and restaurant The Existing Building

Originally constructed in the 1950s as a light industrial building and was converted to office accommodation in the early 1990s

The building is of concrete frame construction under a flat roof with brick cladding and solid floors.

The property provides approximately 21,491 sq ft (1,996.6 sq m) of net internal office and ancillary accommodation arranged over ground and three upper floors. Additionally there is a basement which houses plant and machinery and ancillary space.

To the rear accessed from Agdon Street there is a loading bay at ground level which currently provides parking for up to four cars. 8 / 9

Specification

The office specification includes:

Comfort cooling

Perimeter heating

Suspended ceilings with integrated lighting

Two service cores

1 x 8 person passenger lift

1 x goods lift The Existing Building

Accommodation Ground Floor 5,875 Sq Ft / 545.8 Sq M

Floor Use Sq Ft (NIA)* Sq M (NIA)*

3rd Office 4,724 438.9

2nd Office 5,410 502.6

1st Office 5,398 501.5

Ground Office 5,806 539.4

Storage 69 6.4

Basement Storage 84 7.8

Total 21,491 1,996.6

*Loading bay (4 car parking spaces)

Floor Core

Plans for indicative purposes only. Not to scale.

Typical Upper Floor 5,410 Sq Ft / 502.6 Sq M 3rd Floor 4,724 Sq Ft / 438.9 Sq M 10 / 11

Library Brunswick Museum Estate

Brunswick Tenancy Court

The property is let in it’s entirety to Trace Group Limited on a 15 year lease from 24th September 2007. The lease is inside Skinner Street the security of tenure and compensation provisions of the Landlord and Tenant Act 1954 Part II. From 24th September 2019 the passing rent is £712,880 per annum. The rent is

Skinner Street subject to fixed uplifts equivalent to 3% per annum. Partridge This will show the following yield profile. 224-232 Court

Year Rent (pa) Rent (psf) Running yield*

Agdon Street Sep-19 £712,880 £33.17 4.77%

Sep-20 £734,267 £34.17 4.91% Paramount Building Woodbridge Street Sep-21 £756,295 £35.19 5.06%

*Assuming a net purchase price of £14m.

Tenant’s Covenant

Established in 1974, Trace Group Limited (02388822) specialises in business software solutions for the financial, insurance, reinsurance and property markets and provides payroll services.

The company has an Experian Delphi score of 100 out of 100, demonstrating very low risk. The May 2018 accounts show it has a tangible net worth of £10,263,562 and a turnover of £26,718,440.

The Vendor is willing to assign a guarantee provided by Santander UK Plc up to an aggregate amount of £625,000 should Trace Group Limited not comply with its lease obligations. Development Potential

The proposals include the demolition of the existing building and New build pre- its replacement with a Grade A office-led development with retail application meetings and/or café uses at ground floor. Details of the development potential may include; have been positively Demolition and re-build to provide an eight storey building received by the London arranged over lower ground, ground and six upper floors Terraces at fourth, fifth and sixth floors totalling 4,386 sq ft

Borough of Islington Improved office reception

Efficient floorplates

Improved A1 and/or A3 retail frontage and positioning

Floor to ceiling heights of 2.7m and ground floor retail of 3.9m

Secure ground floor cycle storage (52 racks) and associated showers/changing facilities

Creation of an additional 16,664 sq ft (1,548.1 sq m) of net lettable area, with office floorplates ranging from approximately 1,518 sq ft on the sixth floor to 6,350 sq ft on the first to third floors

Requirement for Affordable Office floorspace equating to approximately 5% of the total amount of office floorspace proposed

Proposed Development with an indicative score of 71% equating to a BREEAM rating of ‘Excellent’

Further information on the scope for a new build scheme can be found on the data room. 12 / 13

A professional team, lead by SCR Architects, has assessed the redevelopment potential for 224-232 St John Street.

Discipline Consultant

Architecture | Urban Design SCRa

Planning Consultant Iceni Planning

Heritage Consultant Donald Insall Associates

Archaeology Consultant MOLA

Draft Construction Management Systra

Structural Engineering WSP

BREEAM Assessment WSP

Cost Consultant Core Five

Building Services and Sustainability WSP

Accessible Design Consultant Systra Development Potential

Accommodation

Floor Use NIA* GIA* Terrace

Sq Ft Sq M Sq Ft Sq M Sq Ft Sq M

6th Office 1,518 141 2,670 248 1,136 105.5

5th Office 2,917 271 3,864 359 2,863 266

4th Office 5,662 526 6,490 603 388 36

3rd Office 6,350 590 7,179 667 – –

2nd Office 6,350 590 7,179 667 – –

1st Office 6,350 590 7,179 667 – –

Ground Office 2,842 264 5,900 548 – –

Retail 451 42 – – – –

Lower Ground Office 5,715 531 7,190 668 – –

Total 38,155 3,545 47,651 4,427 4,386 302

*All figures are approximate only, based on preliminary sketch layouts and should not be relied upon for costing or marketing purposes. All figures are subject to detailed design development. See data room for further information.

Floor Reception Retail Terrace Core

Plans for indicative purposes only. Not to scale.

Brick

Brick 14 / 15

Lower Ground Floor 5,715 Sq Ft / 531 Sq M Ground Floor 2,842 Sq Ft / 264 Sq M

Typical Upper Floor 6,350 Sq Ft / 590 Sq M Fourth Floor 5,662 Sq Ft / 526 Sq M

Fifth Floor 2,917 Sq Ft / 271 Sq M Sixth Floor 1,518 Sq Ft / 141 Sq M Tenure

The property is held Freehold.

Planning

224-232 St John Street is not Listed, but lies within the Clerkenwell Green Conservation Area of the London Borough of Islington.

EPC

The property has an EPC of D-83.

VAT

The property is elected for VAT. It is anticipated that the sale of the property will be treated as a Transfer of a Going Concern (TOGC) so that VAT will not be payable on the purchase price.

Data room Contact

Further information is available on the data room, For further information or to arrange access to which can be provided upon request. a viewing, please contact:

Mike Pope 020 3440 9807 [email protected]

Proposal John Morton 020 3440 9810 Offers are invited in excess of £14,000,000 (fourteen [email protected] million pounds) for the freehold interest, subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 4.77%, assuming purchaser’s costs of 6.79%, and a capital value of £651 per sq ft on the existing accommodation and £366 per sq ft on the proposed development scheme.

MISREPRESENTATION ACT 1967. IMPORTANT: These particulars do not constitute either the whole or any part of an invitation, offer or contract in relation to the property described in the particulars. Gryphon Property Partners, nor its Directors, employees and agents, have authority to make or give any representation or warranty, express or implied, on behalf of any party in relation to the property. Whilst the particulars are given in good faith, intending purchasers must satisfy themselves independently as to the accuracy of all matters on which they intend to rely. All negotiations are subject to contract. September 2019.

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