A Unique Investment Opportunity Contents

A UNIQUE INVESTMENT OPPORTUNITY CONTENTS

INVESTMENT SUMMARY 3 LOCATION 6 LOCAL DEVELOPMENTS 8 COMMUNICATIONS 10 DESCRIPTION 12 ACCOMMODATION 14 FLOOR PLANS 16 TENURE AND PLANNING 20 TENANCIES 22

ASSET MANAGEMENT 23

TENANCY SCHEDULE 24 PROPOSAL 28

CONTACTS 30

1 INVESTMENT SUMMARY

30 MINORIES OFFERS AN EXCELLENT OPPORTUNITY TO ACQUIRE A REVERSIONARY, MULTI-LET OFFICE AND RETAIL “INVESTMENT LOCATED IN AN AREA THAT IS UNDERGOING SIGNIFICANT REGENERATION.

■■ Freehold. ” ■■ Located within the City of London in the heart of Aldgate and in close proximity to Fenchurch Street, Tower Hill, Whitechapel and Spitalfields.

■■ The property totals 8,338 sq m (89,748 sq ft) of office and restaurant accommodation arranged over basement, ground and 12 upper floors together with 28 car parking spaces.

■■ Multi-let to 20 tenants with an average weighted unexpired lease term of 5.1 years and 3.6 years to lease breaks.

■■ 85% of the total income is from the office and 15% from the restaurant tenants.

■■ The office and retail accommodation is currently 100% let with one part floor becoming vacant in January 2014. The total passing rent of £2,505,688 per annum exclusive assumes the vacant accommodation is topped up for 12 months.

■■ Low average passing rent of £27.92 per sq ft overall.

■■ Based on an ERV of £35 per sq ft for a refurbished floor the property is highly reversionary with a potential income of £3,050,790 per annum (£33.99 per sq ft overall).

■■ Numerous opportunities exist to increase value through active management with the surrounding area undergoing significant regeneration with office, hotel and residential led development.

■■ We are instructed to seek offers in excess of £39.25 m for the Freehold interest which reflects an initial yield of 6.03% after purchaser’s costs of 5.8% and a low capital value of £437 per sq ft.

■■ Alternatively the asset is held in a Jersey Property Unit Trust (JPUT) and a purchase of the shares in the JPUT would reflect an initial yield of 6.27% after purchaser’s cost of 1.8%.

LOCATION

30 MINORIES IS LOCATED WITHIN The property is situated on the eastern side of THE EC3 DISTRICT OF THE CITY Minories and bounded by St. Clare Street to the north and Haydon Street to the south. Minories connects “OF LONDON WITH THE IMMEDIATE Aldgate to the north with Tower Bridge to the south AREA SEEING SIGNIFICANT and provides easy access to Lloyds of London, REGENERATION. the Lloyds Register of Shipping and the London Underwriting Centre.

” As well as being well located for the EC3 insurance market, the property is in close proximity to the Aldgate and Whitechapel office markets which are seeing significant tenant demand from the TMT sector and mixed use regeneration.

The immediate area has seen a number of proposed and recently completed developments with the emergence of some significant mixed use, residential, hotel and student housing schemes.

6 7 1 COMMERCIAL STREET

ALDGATE TOWER ALTITUDE, ALIE STREET

ALDGATE PLACE Liverpool Street Station

Aldgate East GOODMAN FIELDS THE MINORIES ESTATE

24-26 MINORIES

Aldgate

Fenchurch Street Station

10 TRINITY SQUARE ROYAL MINT STREET

100 MINORIES

Tower Gateway

Tower Hill

GOODMAN’S FIELDS 24-26 MINORIES ROYAL MINT STREET ALTITUDE THE MINORIES ESTATE 1 COMMERCIAL 100 MINORIES ALDGATE TOWER ALDGATE PLACE 10 TRINITY SQUARE A development by Berkeley Endurance Land and SWIP IJM are developing a mixed A development by Barratt Homes The 2.13 acre site has planning STREET The Grange Hotel Group have Aldgate Developments have Barratt Homes and British Land Reignwood Group and Kop Homes to provide 900 residential are developing a 16 storey, use scheme comprising providing a 27 storey residential consent for a commercial A development by Redrow recently acquired the office secured planning consent have submitted a planning Properties are developing a units, 661 Student rooms, 291 bedroom hotel. 354 residential units, tower with 235 units and scheme of approximately providing 217 residential building to provide a serviced for 317,000 sq ft of office application for 462 residential luxury 120 bedroom 5 star a 250 bedroom hotel and a 236 bedroom hotel and 14,450 sq ft of retail and office 1 million sq ft. Splendid Hotel units, 93,000 sq ft of apartment complex. accommodation arranged over units, a hotel, 12,500 sq ft hotel with 41 private residential 120,000 sq ft of supermarket, 33 serviced apartments as accommodation. Group are anticipated to submit office and 11,500 sq ft of 16 floors. of retail and restaurant apartments. retail, leisure and office well as retail and restaurant a revised hotel led scheme. retail accommodation in a accommodation and accommodation. accommodation. 22 storey tower. 36,059 sq ft of office accommodation.

8 9 COMMUNICATIONS OLD STREET

D AD

A EEN RO

O NAL GR R ETH

L REET

E ST

OLD W

O G OLD STREET C O M ■ Northern M E RC AD IA RO T L N REE ST EE ST R GR OLD EE L T NA 30 MINORIES BENEFITS FROM TH BE EXCELLENT PUBLIC TRANSPORT SHOREDITCH “COMMUNICATIONS, PROVIDING HIGH STREET QUICK AND EASY ACCESS TO CLERKENWELL ROAD

THE WEST END AND DOCKLANDS F A R R I AS WELL AS INTERNATIONAL N G D O AIRPORTS. N E

R T E A T O

A A G D

G D R A

S O O

O R CRO

SSRAIL O WHITECHAPEL M MAINLINE AND LONDON UNDERGROUND W

FARRINGDON BARBICAN H S E

SSRAIL N ■ District ” B RO ■ Metropolitan C 30 Minories is located a short walk from Fenchurch ■ Metropolitan ■ Hammersmith ■ Circle ET ■ Circle CROSS RE RAIL & City Street mainline station, Aldgate, Aldgate East and ■ Hammersmith ST ■ Hammersmith & City CH EE & City Tower Hill underground stations. Tower Gateway is B LIVERPOOL located just to the south of the property providing STREET MOORGATE ■ Metropolitan ■ Circle access to the Docklands Light Railway. OAD ■ Metropolitan ■ Central EL R ■ AP ■ Circle Hammersmith CH & City ITE ON WALL ■ Northern H LOND ■ Hammersmith W CROSSRAIL & City ET ATE STRE 30 Minories is located within 10 minutes’ walk of both FIELDG CITY THAMESLINK LON Liverpool Street and Whitechapel Crossrail Stations. DON WALL E Crossrail is Europe’s largest infrastructure project N A L R ST PAUL’S ALDGATE EAST providing direct rail links between Stratford in the E T T ■ Central E ■ District east and Maidenhead in the west. The service willF ■ Hammersmith enhance capacity across Central London by 20% & City COMMERCIAL ROAD with over 250 million passengers a year using the REET CITY THAMESLINK FLEET ST C ALDGATE ET HEAP BANK RE service which will link Heathrow, the West End, the SIDE ST IE L ■ Central ■ Circle AL E City and Canary Wharf. This project will transform ■ ■ MA Circle CORNHILL LEADENHALL STRE Metropolitan ■ District ET N

Central London especially in locations close to new ■ Northern M S T L A UD ■ Waterloo R G N ATE E or updated stations. H & City S E IL L M L OM E T I L B N A L RD T O E S S E R T TR T R I S R EE H E T C S E d MANSION HOUSE R E l HU C T e BLACKFRIARS FEN

■ Circle Bond n ■ District d ■ Circle FENCHURCH

a CABLE STREET Street Farringdon Whitechapel ■ District STREET Sh e CANNON STREET MONUMENT T STREE nh e T E IN ■ Circle ■ Circle L M G A ■ District OY D ■ District R I TOWER GATEWAY

Paddington Tottenham Liverpool B Ma id e

S w U Court Road Street E PP R E o R G TH WE A AM O R HI I D ES T LL TOWER HILL I ST R REET HIGHWAY Abbe y Wood THE BR KF ■ Circle eath r C K ■

H District

A R A

BL W E

TH D U RI O B S

O L

E G D I R B

R 10 E 11 W O T SOUTH WARK STR TO EET OL EY ST RE ET DESCRIPTION

30 MINORIES WAS ORIGINALLY The building provides podium floors from 1st to 5th CONSTRUCTED IN THE 1960’S floors with tower floors from the 6th to 12th floors providing typical floor plates of 9,500 sq ft in the “AND COMPRISES APPROXIMATELY podium and 3,500 sq ft on the tower floors. 8,338 SQ M (89,748 SQ FT) ARRANGED OVER BASEMENT, The building is accessed via a generous reception GROUND AND 12 UPPER FLOORS hall which has recently been refurbished, with the WITH 28 CAR PARKING SPACES ON office floors and common parts having been subject to a rolling refurbishment over the last five years. A SITE OF 0.58 ACRES. The building specification varies from floor to floor ” and a detailed breakdown is available in the dataroom. In summary the building benefits from the following specification:

■■ Impressive recently refurbished reception area.

■■ The majority of lift lobbies and WCs have been refurbished.

■■ 3 x 16 person passenger lifts.

■■ Predominantly metal tiled ceilings with integrated LG7 compliant recessed lighting.

■■ Raised access floors.

■■ On VP, the current Landlord has installed VRF heat recovery air heating and cooling systems with fresh air ventilation.

■■ Male, female and disabled WCs.

12 ACCOMMODATION

The property has been measured in accordance with the RICS Code of Measuring 12

Practice (6th Edition). A copy of the Arena Property 11 Services measured survey, and floor plans are available in the data room. 10

9 Floor Use Net Internal Area 8 Sq M Sq Ft 12th floor Office 318 3,420 7

11th floor Office 318 3,426 6 10th floor Office 325 3,503 5 9th floor Office 322 3,471 8th floor Office 321 3,458 4 7th floor Office 327 3,520 3 6th floor Office 315 3,390

5th floor Office 547 5,890 2 4th floor Office 907 9,762 3rd floor Office 888 9,553 1 2nd floor Office 879 9,462 G 1st floor Office 869 9,359 Ground Retail / Office 938 10,095 B Basement Retail / Storage 1,063 11,439 Total 8,338 89,748

14 15 GROUND FLOOR TYPICAL PODIUM FLOOR (1ST – 5TH FLOOR)

floorplan being colourised

KEY KEY n Office n Reception n Office n Retail n Lifts n Core n Core n Lifts Floor plans not to scale. For indicative purposes only. Floor plans not to scale. For indicative purposes only.

16 17 TYPICAL TOWER FLOOR (6TH – 12TH FLOOR)

KEY n Office n Core n Lifts Floor plans not to scale. For indicative purposes only.

18 19 TENURE AND PLANNING

5 7 2

5 1

o Portsoken Community

5 and Health Centre 5

1 Latham House

6 Bus

8 Station 15.8m

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TENURE 0 a 5 m The property is held Freehold. 1

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TREET IA S EET

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St Clare House

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Hotel 1 The Writers' House

HAYD STREE

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BPs 1 ET Surgery STRE 14 SOKEN to 13 ORT 10 11 P

TCBs 14.7m 6 SSWALL 4 t

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20 21 TENANCIES ASSET MANAGEMENT

THE OFFICE AND RETAIL The office accommodation accounts for 85% of the THE PROPERTY PROVIDES ■■ The Landlord served notice on the tenants ACCOMODATION IS CURRENTLY total area with the retail accommodation let to two NUMEROUS ASSET MANAGEMENT occupying the 1st floor rear office accommodation tenants accounting for 15% of the total income. offering the purchaser the opportunity to set a new “100% LET TO 20 TENANTS “OPPORTUNITIES IN THE SHORT TO rental tone in the property. PROVIDING A WEIGHTED The office accommodation is currently fully let MEDIUM TERM. AVERAGE UNEXPIRED LEASE TERM however the landlord has served notice on the ■■ Further lease events over the course of the next TO EXPIRY OF 5.1 YEARS AND tenants on the first floor rear which will provide 24 months allow the Landlord the opportunity to 3,139 sq ft of accommodation. A rental top up ” negotiate lease renewals, rent reviews and benefit 3.6 YEARS TO LEASE BREAKS. will be provided for a term of 12 months from from significant reversions following refurbishment. completion, details of which are contained in ” the tenancy schedule. ■■ Virtually all of the leases are excluded from the Landlord and Tenant Act 1954 which enables The total current passing rent of £2,505,688 per the Landlord control to implement asset annum equates to £27.92 per sq ft. management initiatives.

The property is currently let at a low average passing ■■ Reposition the property to appeal more to the rent of £27.92 per sq ft overall which is highly TMT occupier base who are increasingly active reversionary. Based upon an ERV on the refurbished in the Eastern fringe / Whitechapel area. office accommodation of £35.00 per sq ft, the Strong demand has been shown by the recent property has a potential reversionary income of letting of the second floor which benefited from £3,050,790 per annum equating to £33.99 per sq ft a TMT refurbishment. overall. Even at these reversionary rents the building offers fantastic opportunities for further rental growth. ■■ Continue the existing program of refurbishment to the common parts and WCs.

■■ Implement existing plans for the installation of showers facilities and secure bike storage.

■■ Undertake external refurbishment works to the podium section of the property.

■■ Explore opportunities to develop additional accommodation by extending the height of the podium levels and by building over the car park areas.

■■ Explore medium term potential for redevelopment and change of use.

22 23 TENANCY SCHEDULE

TENANT UNIT / FLOOR TOWER / USE AREA AREA LEASE NEXT NEXT LEASE RENT RENT L & T ACT COMMENTS PODIUM SQ M SQ FT START REVIEW BREAK EXPIRY £ PA £ PSF 1954 Curzon Maritime Ltd 12 Tower Office 318 3,420 11-Jan-13 11-Jan-16 10-Jan-16 10-Jan-18 £86,780 £25.00 Outside 12 month rent free period to be taken in the last quarter of the 1st 4 years. Tenant can also determine within 10 days of rent review settlement and lease comes to an end 6 months afterwards. Rent review assumes refurbished accommodation. Basement store (J) Storage 12 128 £10.00 Heerema Marine Contractors 11 Tower Office 318 3,426 17-Jan-13 16-Jan-18 £111,345 £32.50 Outside Rent deposit of £66,807. UK Ltd Crispin Speers & Partners Ltd 10 Tower Office 325 3,503 09-Aug-11 29-Sep-14 29-Sep-14 28-Sep-19 £96,332 £27.50 Outside Tenants break option on 6 months notice. Intertanko 9 Tower Office 322 3,471 03-Sep-13 03-Sep-18 02-Sep-15 02-Sep-23 £112,800 £32.50 Outside Tenants break option on 3 months notice. £65,800 penalty if determined in 2015 however may determine in 2018 with no penalty. Rent deposit of £61,420. Morgan Spencer Ltd 8 Tower Office 321 3,458 01-Sep-09 30-Aug-14 £79,534 £23.00 Outside Intel Corporation (UK) Limited 7 Tower Office 327 3,520 22-Jun-11 21-Jun-16 £88,000 £25.00 Outside Intel Corporation (UK) Limited 6 Tower Office 315 3,390 22-Jun-11 21-Jun-16 £84,750 £25.00 Outside MTS Global (Europe) Ltd 5 Tower Office 294 3,160 03-Oct-13 02-Oct-16 02-Oct-18 £105,860 £33.50 Outside Tenants break option on 6 months notice. 4 months rent free if break not excercised. Rent deposit of £79,632. Helikon Shipping Enterprises Ltd 5 Podium Office 254 2,730 14-Sep-12 13-Sep-17 13-Sep-22 £76,275 £27.50 Outside Basement store (H) Storage 11 120 £10.00 Compre Services (UK) Ltd 4 Tower Office 321 3,458 11-Apr-11 10-Apr-15 £85,265 £23.65 Outside Basement store (L) Storage 46 493 £7.06 Crispin Speers & Partners Ltd 4 Podium Office 586 6,304 29-Sep-09 29-Sep-14 29-Sep-14 28-Sep-19 £175,000 £27.76 Outside Tenants break option on 6 months notice. No dilapidations payable at end of lease (either break or expiry). The Shipowners Protection Ltd 3 Podium Office 888 9,553 22-Dec-06 24-Dec-16 £262,708 £27.50 Inside Just I.T. Recruitment Ltd 2 (North) Podium Office 220 2,368 19-Aug-13 18-Aug-16 18-Aug-18 £76,960 £32.50 Outside Tenants break option on 6 months notice. Rent deposit of £23,088. Just I.T. Training Ltd 2 (South) Podium Office 365 3,925 19-Aug-13 18-Aug-16 18-Aug-18 £123,638 £31.50 Outside Tenants break option on 6 months notice. Rent deposit of £37,091. The Shipowners Protection Ltd 2 Tower Office 294 3,169 13-Jul-07 24-Dec-16 £93,486 £29.50 Inside Vacant 1 Tower Office 292 3,139 £109,865 £35.00 Notice period has been served with VP in January 2014. 12 months rental cover will be provided. Chesterfield Insurance Brokers Ltd 1 Podium Office 578 6,220 29-Sep-06 27-Sep-16 28-Sep-14 28-Sep-16 £174,320 £27.50 Outside Tenants break option on 6 months notice. If tenant determines there is a penalty of £43,580 plus VAT. Basement store (C) Storage 30 327 £10.00 Crispin Speers & Partners Ltd G Tower Office 449 4,836 29-Sep-09 29-Sep-14 29-Sep-14 28-Sep-19 £101,320 £19.59 Outside Tenants break option on 6 months notice. Dilapidations at end of lease or break opton capped at £70,000. Basement store (K) Storage 94 1,007 £6.53 A3D2 Limited t/a The Abbey G (North) Podium A3 193 2,078 19-Oct-01 19-Oct-16 18-Oct-26 £205,000 £38.59 Inside Pt B A3 567 6,104 £19.29 Pt B Storage 44 470 £9.65 G (2) Parking 1 £2,500 The Japanese Canteen Ltd G (South) unit 1 Podium A3 140 1,503 12-May-06 12-May-16 11-May-21 £85,000 £40.00 Inside Pt B Storage and/ or offices 43 467 £53.25 The Japanese Canteen Ltd G (South) unit 2 Podium A3 156 1,678 12-May-06 12-May-16 11-May-21 £73,000 £40.00 Inside Pt B Storage and/ or offices 45 489 £12.00 Vacant Basement store (A) Basement Storage 8 84 £850 £10.12 12 months rental cover. Academy Concerts Society Basement store (D) Basement Storage 8 84 12-Feb-10 11-Feb-15 £630 £7.50 Outside Break Clause – rolling tenant only break after 12-Feb-11 on 3 months notice. Academy Concerts Society Basement store (I) Basement Storage 12 130 12-Feb-10 11-Feb-15 £975 £7.50 Outside Break Clause – rolling tenant only break after 12-Feb-11 on 3 months notice. The Shipowners Protection Ltd Basement store Basement Storage 51 547 21-Jun-07 24-Dec-16 £2,210 £4.04 Inside (E&F) Chase Information Technology Basement store (B) Basement Storage 10 108 01-Nov-12 06-Sep-14 £1,080 £10.00 Outside Either party may determine the lease at any time giving 3 months notice. Services Ltd Vacant Basement store (G) Basement Storage 13 139 £1,390 £10.00 12 months rental cover. Vacant Basement store (M) Basement Storage 20 211 £2,110 £10.00 12 months rental cover. Vacant Office and bike store Basement Office and bike store 39 423 Used as the building manager’s office and the bike store room. Vacant Building storage Basement Storage 10 108 Helikon Shipping Enterprises Ltd G – 17 Car Park Parking 1 25-Dec-11 24-Dec-13 £2,000 £2,000 Outside G –7 Car Park Parking 1 14-Sep-12 24-Dec-13 £2,000 £2,000 Outside Curzon Maritime Ltd G – 19 Car Park Parking 1 25-Jun-13 24-Jun-15 £3,000 £3,000 Outside Rolling break anytime, tenant notice 3 months Landlord notice 2 weeks. Intel Corporation (UK) Limited G – 20, 21 Car Park Parking 2 22-Jun-11 21-Jun-16 £6,000 £3,000 Outside Intel Corporation (UK) Limited G – 22, 23 Car Park Parking 2 22-Jun-11 21-Jun-16 £6,000 £3,000 Outside Blohm & Voss Repair GMBH G – 6 Car Park Parking 1 27-Jun-12 26-Jun-14 £2,000 £2,000 Outside Tenant break – 3 months notice. Landlord break – 2 weeks notice. Silvershoe Ltd G – 13 Car Park Parking 1 16-Nov-10 15-Nov-13 £3,000 £3,000 Outside Vacant G Car Park Parking 18 £54,000 £3,000 12 months rental cover. Vodafone Ltd Roof Roof Ancillary 1 25-Dec-93 24-Dec-13 £11,205 £11,205 Outside Terms quoted at £30,000 per annum. TOTAL 8,338 89,748 £2,505,688 £27.92

24 25

PROPOSAL

VAT PROPOSAL The property has been elected for VAT. The sale may We are instructed to seek offers in excess of be treated as a Transfer of a Going Concern (TOGC) £39,250,000 (Thirty Nine Million Two Hundred and depending on the purchaser’s VAT status. Fifty Thousand Pounds) for the Freehold interest, which reflects a net initial yield of 6.03% (after EPC purchaser’s costs of 5.8%) and a low capital value Energy Performance Certificates (EPCs) are of £437 per sq ft. available in the data room. The refurbished office accommodation has an EPC rating of C. Alternatively the asset is held in a Jersey Property Unit Trust (JPUT) and a purchase of the shares in the JPUT would reflect an initial yield of 6.27% after purchaser’s cost of 1.8%

28 29 CONTACTS AND FURTHER INFORMATION

CONTACTS FURTHER INFORMATION For further information or to arrange an inspection Access to the online dataroom is available at: of the property please contact:

www.30minories.co.uk

Oliver Sadler [email protected] www.30minories.co.uk James Abrahams [email protected]

Jonathan Ruback [email protected]

Important notice DISCLAIMER: Allsop LLP on its behalf and for the Vendors or Lessors of this property, whose Agents they are, give notice that: These particulars are set out as a general outline only for guidance to intending Purchasers or Lessees, and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Allsop LLP has any authority to make any representation or warranty whatsoever in relation to this property. Unless otherwise stated, all prices and rents are quoted exclusive of VAT. October 2013 ARK.

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