An Outstanding Office Investment Opportunity

An outstanding office investment opportunity The Grimaldi Building 154a Pentonville Road KING’S CROSS, London N1 15,636 sq ft (1,452.6 sq m) 13 onsite parking spaces Investment Summary:

• Situated on the north side of Pentonville Road, • A new head lease for a term of 150 years from equidistant between Angel and King’s Cross/ 6th March 2013. The current head rent payable St Pancras underground and mainline stations. is £32,000 per annum rising from the 2nd January 2014 to £60,000 per annum, being • A highly prominent and characterful self- 12.50% of either rents received or open market contained office building constructed from rental value, and will be reviewable upwards new in 1991 and comprehensively refurbished only on a 5 yearly basis in line with RPI. in 2012 to an excellent standard. • Current net passing rent of £448,000 pax. • The property extends to a net internal area of 15,636 sq ft and has the benefit of 13 onsite car • We have been instructed to seek offers in excess parking spaces. of £6,500,000 subject to contract and exclusive of VAT for the benefit of our clients long leasehold • Single let to Eviivo Limited on an FR&I lease interest. A purchase at this level would reflect a for a term of 10 years from 30th March 2012, capital value of £416 psf and the following yield subject to an upwards only rent review and profile after the deduction of the ground rent and a tenants option to break at the 5th year. standard purchaser’s costs of 5.80%:

• Current passing rent of £480,000 pax • 6.51% Net Initial Yield devaluing to £30.70 psf overall. • 7.55% Reversionary Yield*

• Prime rents in King’s Cross are approaching * Assuming our opinion on ERV of £30 psf on lower ground and £40 psf on ground to third floors, after the £50 psf and as such we believe that the deduction of the head rent payable at 12.50% and standard property has strong reversionary potential. purchaser¹s costs of 5.80%.

Location: The building is located in the centre of Pentonville Road equidistant between Upper Street Islington and King’s Cross

L ST PAU The property is located in the London I L’S R Caledonian V OAD Sat Nav: n1 9pe Park E R Highbury Borough of Camden, on the edge of the P D O R & O N Islington C King’s Cross Growth Area. The King’s E L A D

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& Barnsbury

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U N Y terminal to St Pancras International E A ST D W L N P Bernard A N C A E O O E and most notably the substantial new O N Park R R R A1 T L C G C L H L R A E T N A O E R development at King’s Cross Central. M G O D S O E E T D P R W S G

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King’s Cross Central is a 67 acre A P A I D U R N AY N W W RF S D O A E O H W development site which, when complete, GO King’s K D W R E E L L G N

Cross O A M A E O Inter’l Y C will provide 8 million sq ft of mixed use I S R D H E King’s Angel T V L E P H E A Cross H R D R accommodation to include 23 office N OA E S St Pancras ILLE R ONV S G R D H D ENT P T O D O S E R W C L J IT S buildings, up to 2,000 homes and serviced D S T O E Y R L O W S H L A D A T N R E L R F D D apartments, 650 student accommodation K U S E A R

E J N T R T T U E R S T D R V CE S A N units, 500,000 sq ft of retail space and 10 D I PE A N S Euston D Y B E S Coram’s G T A R S A O T R G O E R Fields U V T N TA D LE Old new public parks and squares, as well as B S O O E H T W S V N S S St U H K E I R O I S S R N T E U G D N R S T theatres, cinemas, hotels and up to 50 arts T E L N O R L C T A R C K E Y ET B D E U and music venues. R ’S TR I S E S T D R Q S I V L N Y N A O U T N H T A Y R

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EN O The property is located in the centre N O Russell LERK O O C J W F W H R R H T Square A O Barbican A R A E H D H R R T R Goodge M A Farringdon N E of the Pentonville Road, equidistant S T I BEE M D N CH

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Street C T P A G T B T A O N S A D O R T E E S L O H O U G G U E N T O D N between Upper Street Islington and E H R R A R T Chancery R E E T Y R T O A D R D D A L R W Lane IE O R E H Moorgate Y R C F S King’s Cross, the immediate surrounds O N H O M R G U IT A W O M B IGH H LBO S A D S H RN T M LONDON WALL O E benefit from a variety of restaurants, O RN Tottenham L O H B O B L Court Road L Holborn BO S O R T coffee shops and bars which enhance H N H VIA HIG DU a thriving working environment. CT Communications:

Eurostar connections from St Pancras International The property is well served by transport links, being situated within a 5 minute walk of King’s Cross St Pancras station, which provides access to mainline national rail services as well Destination Best time as London underground services and the Eurostar terminal. Calais 1 hour 2 mins King’s Cross St Pancras underground station is served by six Lille 1 hour 20 mins London underground lines (the Circle, Hammersmith and City, Metropolitan, Northern, Piccadilly and Victoria lines). Brussels 1 hour 55 mins Paris 2 hours 15 mins Click here to view tube map source: eurostar.com

Overground connections from King’s Cross / St Pancras

Destination Best time London Luton Airport 20 mins Gatwick Airport 56 mins Peterborough 45 mins Leicester 1 hour 8 mins Derby 1 hour 31 mins Nottingham 1 hour 44 mins Sheffield 2 hours 5 mins York 3 hours 21 mins Newcastle 4 hours 38 mins source: nationalrail.co.uk Situation: St Pancras The King’s British Renaissance St. Pancras Lighthouse The Regent Cross Euston Library Hotel International Block King’s Cross Courtyard Nido Quarter Central

The property is situated on the north side of Pentonville Road, approximately 0.5 miles from Angel underground station and King’s Cross/St Pancras underground and mainline stations, which lie to the east and west respectively.

The surrounding area comprises a mix of commercial, residential and retail/leisure uses. The property is bound by a small public park to most elevations. Site:

The site of the property is irregular in WESTON RISE shape and has a principal frontage Playground of approximately 119 feet (36 metres)

to Pentonville Road. By reference to the COLLIER STREET Ordnance Survey Extract, we calculate that the total site area for the property CUMMING STREET is approximately 0.25 acres. Playground Playground Playground Originally on the site was the Church of St James which dated back to 1778 and PENTONVILLE ROAD A501 served as the Pentonville Chapel. From 1854 the church served as the official church of the International Circus Clown’s Club and the legendary Joseph PENTON RISE JOSEPH GRIMALDI Grimaldi was buried in the grounds. PARK

RODNEY STREET

DONEGAL STREET Description:

A new office building was rebuilt in 1991 and has recently been comprehensively refurbished to an excellent standard.

It is arranged over lower ground, ground and three upper floors and extends to a net internal area of 15,636 sq ft. The specification included carpeted floors, solid ceilings with fluorescent strip lighting units, aluminium framed double glazed windows and air conditioning provided via Mitsubishi ceiling mounted cassettes. The floorplates are relatively column free and all floors (including the lower ground) benefit from good levels of natural daylight from two elevations.

There is also a small courtyard accessed from the lower ground floor level. All floors are served by a 13 person, 1,000 kg passenger lift. The property is entered from Pentonville Road via a ‘floating ramp’ leading to a reception area. The property benefits from car parking for approximately 13 vehicles to the front of the building.

Accommodation: Click on a floorplan to enlarge

Schedule of Areas Floor sq ft sq m Lower Ground floor 3,224 299.5 Ground floor 3,136 291.3 First floor 3,676 341.5 Second floor 3,524 327.4 Third floor 2,076 192.9 Total 15,636 1,452.6

Lower Ground floor Ground floor First floor

Second floor Third floor Accommodation: Lower Ground floor

Schedule of Areas Floor sq ft sq m Lower Ground floor 3,224 299.5 Ground floor 3,136 291.3 First floor 3,676 341.5 Second floor 3,524 327.4 Third floor 2,076 192.9 Total 15,636 1,452.6 Accommodation: Ground floor

Schedule of Areas Floor sq ft sq m Lower Ground floor 3,224 299.5 Ground floor 3,136 291.3 First floor 3,676 341.5 Second floor 3,524 327.4 Third floor 2,076 192.9 Total 15,636 1,452.6 PLANNING:

The permitted use of the property is within Class B1 (office use).

The current statutory plan covering planning policy and development control for the area is the Islington Unitary Development Plan (Saved Policies), which was adopted in June 2002, and the Islington Core Strategy, which was adopted on 17 February 2011. The property is neither Listed nor situated within a Conservation Area. It is designated on the Proposals Map as lying within a Rail Safeguarding Area for Crossrail and within a protected Local Views area. It appears to lie just within the Central Activities Zone boundary. Tenancy: Tenure:

The entire property is let to Eviivo Limited for a term of 10 years from 30 March The property is held long leasehold from the Church 2012 on FR & I terms subject to an upward only rent review on the 2nd April 2017. Commissioners for England for a term of 150 years from the 6th March 2013. The current head rent payable is £32,000 per The commencing rental is £480,000 per annum exclusive devaluing to £30.70 psf annum rising from the 2nd January 2014 to £60,000 per annum overall. (being 12.50% of the passing sublease rent). From the 2nd January 2014 the rent payable is defined in the lease as 12.50% There is a tenant only break option on 2 April 2017 on 6 months written notice. of rents received if the property is let, or if it is occupied by the head tenant, is sublet at below market rent or is vacant There is a rent deposit of £280,000. then 12.50% of the open market rental value.

Eviivo Limited’s principal activity is the development and licensing of software The ground rent will be reviewable upwards only on a 5 yearly products, and the provision of revenue management services to independent basis in line with RPI. hotels and guest houses.

For further information, please visit www.eviivo.com

Covenant 2012 2011 Sales Turnover £8.869,000 £7,688,594 Profit/(Loss) Before Taxes £(416,000) £(1,779,648) Shareholders Fund £4,549.130 £1,176,169 Market Commentary:

The Grimaldi building benefits from being located equidistant from King’s Cross and Islington. Both areas have undergone significant transformation in recent years, with some landmark residential, office, and retail led developments having been constructed. These include Argents’ ongoing redevelopment of King’s Cross Central, Manhatten Lofts mixed use development of St. Pancras and Derwent London’s Angel Centre scheme.

Due to the regeneration of the surrounding area and major works to King’s Cross Central, the area has recently, and will continue to attract a large and diverse tenant audience. King’s Cross’ connectivity to the rest of London, the UK and Europe is extensive, boasting 6 tube lines and Eurostar travel links at St Pancras International making it more accessible that any other Central London district.

Local occupiers include:

Google The Guardian Mcmillan Cancer Support Jamie’s Kitchen Expedia Ticketmaster Cancer Research Hummingbird Hoare Lea Recent investment transactions:

3-7 Ray Street London EC1 83 Clerkenwell Road, London EC1 Size – 18,230 sq ft Price – £9,175,000 Size - 19,315 sq ft NIY – 4.63% Price - £9,050,000 Capital Value – £503 psf NIY - 4.98% Capital Value - £469 psf

7-9 William Road, London NW1 Marcelo House, 236-240 Pentonville Road London N1 Size – 14,797 sq ft Price – In excess of asking (I.e. £7.15m) Size – 19,888 sq ft NIY – In excess of asking (I.e. 5.75%) Price – £8,300,000 Capital Value –In excess of asking NIY – 6.5% (I.e. £483 psf) Capital Value – £417 psf Occupational market:

10-4 Pentonville Road, N1 Western Transit Shed, 12-13 Stable Street, London N1 Tenant - Ticketmaster Size - 47,678 sq ft Tenant - Zone Rent - £40.61 psf Size - 16,972 sq ft Date - Jan 2013 Rent - £42.50 psf Date - Sept 2012

The Angel Building, 4013–411 St John Street, EC1

Tenant - Expedia Size - 81,259 sq ft Rent - £42.50 psf Date - July 2011 PRICE: VAT:

We have been instructed to seek offers in excess of £6,500,000 subject to contract The property has been elected for VAT and therefore it is anticipated and exclusive of VAT for the benefit of our clients long leasehold interest. A that the sale will be treated as a Transfer of a Going Concern (TOGC). purchase at this level would reflect a capital value of £416 psf and the following yield profile after the deduction of the ground rent and standard purchaser’s costs of 5.80%:

6.51% Net Initial Yield 7.55% Reversionary Yield* (31st March 2017)

* Assuming our opinion on ERV of £30 psf on lower ground and £40 psf on ground to third floors, after the deduction of the head rent payable at 12.50% and standard purchaser¹s costs of 5.80%. CONTACT:

David Berko Adam Velleman [email protected] [email protected] David Silver [email protected]

Misrepresentation Act Whilst every effort has been made to ensure accuracy, no responsibility is taken for any error, omission or mis-statement in these particulars which do not constitute an offer or contract. no representation or warranty whatever is made or given either during negotiations or in particular by the vendor, lessors or agents Pilcher Hershman & Burlington Partners. All figures are exclusive of rates, service charge, vat and all other outgoings. All floor areas are approximate. Designed and produced by Zest Design & Marketing 020 7079 3090. April 2013 (01082).