The Lime Street Estate EC3

A CORE ASSET MANAGEMENT OPPORTUNITy the

the LEADENHALL building

M&G

20

lloyd’s of london

LEADENHALL MARKET

^ N Executive Summary

• Situated in a prime City of London location, within the eastern Cluster.

• Located directly opposite Lloyd’s of London, the world’s leading specialist market.

• 121,255 sq ft (11,265 sq m) of office and ancillary accommodation arranged in two adjoining buildings, across basement, ground and nine upper floors.

• Highly divisible floorplates ranging from individual suites of 500 sq ft up to 10,000 sq ft.

• Multi-let to 34 tenants with staggered lease events.

• All leases are drawn on effective FRI terms.

• Occupiers include: Everest Advisors, Tokio Marine HCC, Skuld Services and White Oak Underwriting Agency.

• WAULT of 3.9 years to lease expiry and 2.8 years to determination, as at March 2018.

• Total gross contracted rent of £6,921,416 per annum reflecting £64.24 per sq ft overall.

• Long leasehold for a further 138 years at a gearing of 15.00% of rents receivable.

• Net rental income of £5,883,204 per annum exclusive.

3 The Opportunities

• Approximately 32,986 sq ft (3,064 sq m) of office accommodation is due to be vacated within twelve months, affording the opportunity to upgrade the space and re-position the asset.

• A further 5,004 sq ft (464 sq m) of office accommodation is leased on reversionary terms to tenants who are not in occupation.

• Numerous opportunities exist to manage lease events / re-gear leases.

• The public realm will continue to improve as a result of neighbouring development activity.

• Significant long term development potential. The Estate is situated in an area designated suitable the proposal for high rise buildings.

The Proposal

Offers in excess of £78.00 million are invited, subject to contract, for the long leasehold interest.

This reflects a net initial yield of 7.0% allowing for purchaser’s costs of 6.8% and a capital value of £643 per sq ft. A Prime and Rapidly Evolving Location

The Estate is situated in heart of the City of London, directly opposite Lloyd’s of London, the world’s leading specialist insurance market. The buildings occupy a highly prominent position with substantial frontages onto Lime Street and Fenchurch Avenue.

Many of the world’s most pre-eminent insurance businesses have entered into long term lease commitments and freehold acquisitions within the immediate vicinity. Notable examples include: Willis, AON Benfield, RSA, Amlin, SCOR and WR Berkley. The critical mass of insurance industry expertise within the vicinity of Lloyd’s will undoubtedly ensure the success of this district for many decades to come.

In recent years a number of internationally acclaimed developments including The Leadenhall Building, and Plantation Place have attracted corporates, financial services providers, law firms, accountancy businesses and tech firms into the area. This thriving commercial district, once the preserve of insurance and shipping industries, is now more diversified than at any point in its history.

5 The Eastern Tower Cluster

The Estate is located in the eastern Tower Cluster area of the City of London where high density commercial development is encouraged. The properties are equidistant between two internationally recognised buildings, 20 Fenchurch Street (the ‘Walkie -Talkie’) and The Leadenhall Building (the ‘Cheesegrater’).

Later this year a further 800,000 sq ft of Grade A offices will be delivered in two new buildings which neighbour the Estate; 10 Fenchurch Avenue and 52 Lime Street. Approximately 70% of this new floorspace has already pre-leased to M&G Investments, WR Berkley, Decus and AXIS.

Lloyd’s of London

The main entrance into Lloyd’s of London is situated directly opposite the Estate.

Lloyd’s is the world’s oldest and leading specialist insurance market operating across 200 territories. It offers an unrivalled concentration of specialist underwriting expertise. In its 300 year plus history, Lloyd’s has diversified such that it now insures the world’s largest and most unusual risks.

Lime Street is synonymous with global insurance and has a rich heritage. Brokers and underwriters requiring swift access into Lloyd’s will pay a premium to be located on Lime Street given the direct access into Lloyd’s.

Leadenhall Market

Leadenhall Market, one of the City’s most vibrant spots, is situated directly adjacent to the Estate. This Victorian Grade II* listed building of grand proportions is crammed full of restaurants, bars, coffee houses, market stalls and artisan boutiques. Alfresco dining and live entertainment provide exceptional amenity, day and night.

Leadenhall Market is integral to the insurance community and the way in which it functions. The specialist nature of the policies written dictate that a high degree of interface still takes place between the brokers and underwriters. The coffee houses and restaurants in and around the market provide a convivial environment in which to cement relationships and conduct business, much of which still takes place based on a handshake.

A wide collection of retailers are situated along Lime Street. Concessions include Charles Tyrwhitt, Cheaney Shoes, Roderick Charles, M&S, Vodafone, Boots, Links London, Oliver Bonas and Cycle Republic.

6 Local Development Initiatives

The neighbouring area is one of the most transformed areas in central London. These landmarks coupled with forthcoming initiatives are delivering exceptional The vicinity is home to some of London’s highest profile towers including The Leadenhall improvements to the amenity of EC3 and to the public realm. Moreover, these Building and 20 Fenchurch Street. developments are providing a world class business environment which attracts global businesses at market leading rents.

The 1 , 3 40 , EC3 skyline 52 LIME STREET, EC3

Developer: TH Real Estate refined Developer: WRBC Description: 34 storeys providing 910,000 Description: 385,000 sq ft office tower sq ft of office and retail

The Scalpel is coming: a new presence on arranged over 36 storeys. A new one of the most distinguished and dynamic skylines in the world. 5 accommodation. The building is at once both a sharp reminder of a rich history of commerce at the heart of public square at the base of the London’s main financial centre, the City, and a symbol to a successful future. building will vastly improve Lime Status: Planning consent granted. Street.

Status: PC anticipated 2018. Occupiers include: WR Berkley, Decus & Axis.

2 3

2 10 FENCHURCH AVENUE, EC3 4 1 LEADENHALL, EC3

Developer: Generali Developer: Brookfield

Description: 420,000 sq ft, 15-storey office Description: 36-storey building with two levels building that will provide retail of retail floorspace, totalling at the lower levels and a publicly approximately 680,000 sq ft. accessible rooftop garden Status: Planning consent granted. offering panoramic views across the City.

Status: PC anticipated 2018. 76% pre-let to M&G Investments.

7 5 6-8 , EC2 & 7 , EC2 150 LEADENHALL STREET, EC3 Developer: Brookfield Developer: Mitsubishi Estates & Stanhope Description: 950,000 sq ft of office and retail Description: 50-storey tower development accommodation within a 37 storey providing 570,000 sq ft including tower. ground floor shops and Status: PC anticipated 2019. Majority restaurants. pre-let to Royal Bank of Canada, Status: Planning consent granted. Jefferies and Freshfields.

6 , EC2 8 70 , EC3

Developer: AXA Real Estate on behalf of a Developer: TH Real Estate consortium Description: 312,000 sq ft of office and retail Description: 1.4m sq ft in a 62-storey tower accommodation over 21 storeys. set to be the tallest building in Status: Circa 133,000 sq ft reported to be the City. The upper levels will under offer to Sidley Austin LLP. comprise a publicly PC anticipated Q4 2018. accessible viewing gallery, restaurant and bar.

Status: PC anticipated 2019.

8 BARBICAN

MOORGATE

FINSBURY CIRCUS

LIVERPOOL STREET

L O N D O N W A L L SALESFORCE TOWER

GUILDHALL

7

MOORGATE 8

TOWER 42

H O U N D SDT CI H

GRESHAM STREET STOCK EXCHANGE

WOOD STREET

L O T H B U R Y BISHOPSGATE MILK STREET THROGMORTON STREET T E E R T S S ’ E C N I R P SWISS RE ST PAUL’S

6 AVIVA TOWER

KING STREET

BANK OF OLD THE LEADENHALL BUILDING

P O U L T R Y 5 M A N S I O N H O U S E S T ST PAUL’S ROYAL L E A D E N H A L L CATHEDRAL THREADNEEDLE EXCHANGESTREET S T R E E T

CORNHILL 1 LLOYD’S

T E E R T S M A I L L I W G N I K 4 OF LONDON MANSION BANK HOUSEQUEEN STREET MANSION HOUSE THE WILLIS BUILDING 3

S T R E E T LEADENHALL F E N C H U R LOMBARD STREET MARKET QUEEN VICTORIA STREET C H A V E

LIME FENCHURCH STREET

2

BLOOMBERG HQ

GRACECHURCH STREET

MANSION HOUSE F E N C H U R C H S T R E E T

WALBROOK FENCHURCH STREET 20 ^ CANNON STREET FENCHURCH N STREET Not to scale. For indicative purposes only.

CANNON STREET

MONUMENT 9

R REVI AHTM E S

R REVI AHTM E S

TATE MODERN Connectivity

The Estate is situated in the core of the City of London and benefits from excellent transport communications. STANSTED AIRPORT The whole of central London is accessible via the underground and PARIS 48 rail network. Street, Bank, Fenchurch Street, Monument and 2HOURS16 Cannon Street stations are all within a 500m radius of the Estate.

All of London’s international airports are within an hour of the property and train services to Europe operate via Eurostar from St Pancras International station, which is about 8 minutes by tube.

KINGS CROSS LIVERPOOL STREET ST. PANCRAS STATION HEATHROW AIRPORT 8 5 35

BANK STATION 4 DL R

CITY AIRPORT FENCHURCH STREET STATION 21 2

CANNON STREET STATION MONUMENT 10 STATION 4

GATWICK AIRPORT 57

Approximate journey times in minutes

10 The Elizabeth Line ()

The Elizabeth Line is scheduled to become operational in December this year, the nearest station being Liverpool Street which is within an 5 minute walk.

The circa £15 billion initiative is Europe’s largest infrastructure project. Services will be fully integrated with London’s existing transport network. State-of-the- art trains capable of accommodating 1,500 passengers, will bring an extra 1.5 million people to within 45 minutes of central London.

From it will take just 7 minutes to reach Bond Street, 6 minutes to reach Canary Wharf and 35 minutes to arrive at Heathrow Airport.

CGI of proposed new Broadgate ticket hall and square, at Liverpool Street

Approximate journey times from Liverpool Street Station READING

Farringdon Station 2 minutes BOND STREET LIVERPOOL STREET Canary Wharf Station 6 minutes

Bond Street Station 7 minutes STRATFORD PADDINGTON FARRINGDON Stratford Station 8 minutes CANARY WHARF

Paddington Station 10 minutes

Heathrow Airport 35 minutes HEATHROW AIRPORT

Reading Station 57 minutes

11 the leadenhall building

THE WILLIS BUILDING

M&G

LLOYD’S OF LONDON 40

37-39

20 FENCHURCH STREET

LEADENHALL STREET

LEADENHALL MARKET LIME STREET LIME

^N

FENCHURCH STREET EC3M 7AY

Estate Overview Tenure

The Estate is held by way of a single headlease and comprises two adjoining The properties are held by way of a single headlease from the Carpenters Company which expires self-contained office buildings which are arranged around a large central on 29/09/2156 i.e. circa 138 years unexpired. lightwell. The buildings benefit from a centralised concierge and are interconnected at basement level. The Freeholder is entitled to 15.00% of rents receivable from underletting(s), subject to a minimum rent of £355,000 per annum. The minimum rent increases by £25,000 per annum on 29/09/2031 and Floorplates range from individual suites of 500 sq ft up to 10,000 sq ft. twenty five yearly thereafter. Accordingly the Estate is well placed to cater for a wide variety of occupational requirements. All office accommodation is air conditioned and has excellent A summary of the main headlease terms is set out at Appendix 1. levels of natural daylight.

The Estate has been independently measured by Plan London in accordance with the RICS code of measuring practice (6th edition). The Net Internal Areas are summarised as follows:-

PROPERTY USE AREA AREA % OF TOTAL (SQ.FT.) (SQ.M.) FLOOR AREA 40 Lime Street Offices 71,882 6,678.00 69%

Storage 11,942 1,109.43 37-39 Lime Street Offices 30,644 2,846.89 31% 40 Storage 6,787 630.52 Lightwell TOTAL Offices 102,526 9,524.89 37-39 TOTAL Storage 18,729 1,739.96 GRAND TOTAL 121,255 11,264.86

Planning

37-39 Lime Street is Grade II listed and located within the Leadenhall Market Conservation Area. For indicative purposes only. This plan is based upon the Ordnance Survey map with the sanction of the controller of H.M. Stationary Office. Crown copyright reserved. 40 Lime Street is not listed, nor is it situated within a designated Conservation Area.

13

0 5 10 15 20 25 30 35 40 45 50

m

OS MasterMap 1250/2500/10000 scale Wednesday, December 6, 2017, ID: HMC-00675807 www.themapcentre.com

1:1250 scale print at A4, Centre: 533171 E, 181011 N

© Crown Copyright Ordnance Survey. Licence no. 100018971 40 Lime Street 40 Lime Street Description

• Floor Area 83,824 sq ft 40 Lime Street/4 Fenchurch Avenue is strategically positioned directly opposite Lloyd’s of London and has substantial frontages onto Lime Street, Fenchurch Avenue and Fen Court. The building • % Estate Area 69% has entrances onto each of the aforementioned thoroughfares which converge into a large centralised reception. From here the concierge also oversees operations at 37-39 Lime Street. • Gross Rent £4,812,922 pa The property provides 83,824 (7,787.43 sq m) of lettable office and ancillary accommodation arranged over two basements, ground and nine upper floors. The floorplates are divided into • Net Rent £4,090,984 pa North and South suites, comprising circa. 7,000 sq ft and 2,500-3,000 sq ft respectively.

• Rent psf £64.87 psf overall The property has been modernised on a rolling basis since 2008. Large roof terraces have been (tenanted accommodation) created on the 5th, 6th, 7th and 8th floor North facing units. Other initiatives include:-

• WAULT 4.75 years to expiry ◊ Refurbishment of office areas (3.25 years to breaks) ◊ new roof coverings in part

◊ Refurbishment of common areas including main reception, WCs, lifts and stairwells

◊ Installation of fan coil ceiling mounted air conditioning units

◊ new fire alarm

◊ new heating pumps, valves and water heaters to shared plant room

The specification includes:-

➢ > Four eight-person passenger lifts 40 ➢ > Ceiling mounted fan coil air conditioning ➢ > Metal / mineral fibre tiled suspended ceilings with LG compliant recessed light fittings

Lightwell ➢ > Raised access floors

➢ > Male, female and disabled WCs

> Shower and bike storage facilities at basement level

For indicative purposes only. This plan is based upon the Ordnance Survey map with the sanction of the controller of H.M. Stationary Office. Crown copyright reserved.

15

0 5 10 15 20 25 30 35 40 45 50

m Accommodation

The property has been measured in accordance with the RICS Code of Measuring Practice (6th edition) and provides the following Net Internal Areas:-

FLOOR USE AREA (SQ.FT.) AREA (SQ.M.)

Ninth Offices 2,847 264.49

Eighth Offices 1,734 161.09

Seventh Offices 4,735 439.89

Sixth Offices 6,268 582.31

Fifth Offices 7,448 691.93

Fourth Offices 9,580 890.00

Third Offices 9,830 913.22

Second Offices 9,861 916.10

First Offices 9,252 858.53

Ground Offices 10,327 959.40

Basement & Sub Basement Storage 11,942 1,109.43

OFFICES 71,882 6,678.00 STORAGE 11,942 1,109.43 TOTAL 83,824 7,787.43

40 Lime Street Fourth floor

16 40 Lime Street Fourth floor (North)

17 40 Lime Street Ground floor (West)

18 40 Lime Street

Eighth floor (North East) terrace 40 Lime Street 19 40 Lime Street

Ninth Eighth

9

FENCHURCH AVENUE

General Insurance Corporation of India (under offer to Clements Europe)

LIME STREET FENCHURCH AVENUE LIFT LIFT

LIFT LIFT Terrace 8

WC LIGHTWELL LIGHTWELL Vacant WC

LIME STREET

LIFT

Acis Cargo LIFT LIFT Underwriting Agency LIFT LIFT

LIGHTWELL LIGHTWELL

KITCHEN

EALC

FLAT ROOF

N^

Not to scale. For indicative purposes only.

20 40 Lime Street

Seventh Sixth

FENCHURCH AVENUE

Terrace 7

WR Berkley Insurance LIME STREET

LIFT

LIFT LIFT

LIFT LIFT

WC FENCHURCH AVENUE

WC LIGHTWELL LIGHTWELL Terrace

LIME STREET Skuld Services WR Berkley Insurance

LIFT

LIFT LIFT

LIFT LIFT

LIGHTWELL WC LIGHTWELL

SHOWER

WR Berkley Insurance

N^

Not to scale. For indicative purposes only.

21 40 Lime Street

Fifth Fourth

FENCHURCH AVENUE

Terrace 5

Skuld Services NYA International

LIME STREET

LIFT

LIFT LIFT

KITCHEN KITCHEN

LIFT LIFT

LIGHTWELL SHOWER LIGHTWELL

WC FENCHURCH AVENUE

WC

White Oak Underwriting Agency

4 LIME STREET Brunel Professional Risks

LIFT

LIFT LIFT

LIFT LIFT LIGHTWELL

WC LIGHTWELL

WC

WC

Compass Broker Holding

N^

Not to scale. For indicative purposes only.

22 40 Lime Street

Third Second

FENCHURCH AVENUE 3

Clements Europe Fenchurch Law LIME STREET (under offer to General Insurance Corporation of India)

LIFT

LIFT LIFT

LIFT LIFT

WC LIGHTWELL LIGHTWELL SHOWER FENCHURCH AVENUE

WR Berkley Insurance LIME STREET

WR Berkley Insurance

SHOWER

WC 2 LIFT LIFT LIFT

WC KITCHEN SHOWER LIFT LIFT

LIGHTWELL WC

LIGHTWELL SHOWER

WR Berkley Insurance

N^

Not to scale. For indicative purposes only.

23 40 Lime Street First Ground FENCHURCH AVENUE

1 Everest Advisors

LIME STREET

WC

KITCHEN

LIFT

LIFT LIFT

WC SHOWER KITCHEN LIFT LIFT Tokio Marine HCC METER ROOM

WC LIGHTWELL LIGHTWELL WC

FENCHURCHFENCHURCH AVENUE AVENUE g

Special Risks Insurance Brokers BDB ENTRANCE Tokio Marine HCC LIME STREET LIME STREET Everest Advisors

Oilfield Insurance Agencies

LIFT LIFT

LIFT LIFT

RECEPTION

Everest Advisors

N^

Not to scale. For indicative purposes only.

24 37-39 Lime Street

37-39 Lime Street Description

• Floor Area 37,431 sq ft 37-39 Lime Street dates from the 1930’s and is Grade II listed. The property has an attractive Portland stone façade fronting onto Lime Street and provides 37,431 sq ft (3,477 sq m) of lettable • % Estate Area 31% office and ancillary accommodation arranged over two basements, ground and seven upper floors.

• Gross Rent £2,108,494 pa The floorplates are typically circa 3,800 sq ft (353.02 sq m) and are capable of being leased as whole, or sub-divided into three units of occupation per floor. The ceiling heights are generous throughout and there are good levels of natural daylight from three elevations. • Net Rent £1,792,220 pa The reception and common areas have been refurbished in the last six months. All of the office • Rent psf £62.85 psf overall accommodation (save the seventh floor west and fifth floor east) has been refurbished since 2008. (tenanted accommodation) Initiatives have included:- • WAULT (March 2018) 2.1 years to expiry ◊ new roof coverings in part (1.6 years to breaks) ◊ office accommodation upgraded as and when suites have reverted

◊ Reception and common areas refurbished including lifts

◊ Installation of ceiling mounted fan coil air conditioning units

◊ Replacement fire alarm

◊ new heating pumps, valves and water heaters to shared plant room

The specification includes:-

➢ > Two nine-person passenger lifts

➢ > Ceiling mounted fan coil air conditioning

➢ > Metal tiled suspended ceilings (1) with LG compliant recessed light fittings Lightwell 37-39 ➢ > Raised access floors ➢ > Male and female WCs alternate between floors

➢ > Shower, bike and disabled WCs at basement level

Note

(1) The ground floor and seventh floor (west) have mineral fibre ceiling tiles.

For indicative purposes only. This plan is based upon the Ordnance Survey map with the sanction of the controller of H.M. Stationary Office. Crown copyright reserved.

26

0 5 10 15 20 25 30 35 40 45 50

m Accommodation

The property has been measured in accordance with the RICS Code of Measuring Practice (6th edition) and provides the following Net Internal Areas:-

FLOOR USE AREA (SQ.FT.) AREA (SQ.M.)

Seventh Offices 2,964 275.36

Sixth Offices 3,541 328.96

Fifth Offices 3,869 359.43

Fourth Offices 3,900 362.31

Third Offices 3,789 352.00

Second Offices 3,828 355.62

First Offices 3,822 355.07

Ground Offices 4,931 458.10

Basement & Sub Basement Storage 6,787 630.52

OFFICES 30,644 2,846.89 STORAGE 6,787 630.52 TOTAL 37,431 3,477.42

27 37-39 Lime Street First floor

28 37-39 Lime Street

7 7

Seventh Sixth 6 6

re escape re re escape re

LIGHTWELL

LIGHTWELL

LIFT LIFT LIFT LIFT LIFT LIFT LIFT LIFT KITCHEN KITCHEN

KITCHEN KITCHEN

WC WC WC WC

LIME STREET

LIME STREET Hyundai Marine & Fire Insurance Sovag

Direct Commercial HK Property Services

N^

Not to scale. For indicative purposes only.

29 37-39 Lime Street

Fifth Fourth

5 5 4 4

Norwegian Hull Club LIGHTWELL WR Berkley Insurance LIGHTWELL

LIFT LIFT LIFT LIFT LIFT LIFT LIFT LIFT KITCHEN KITCHEN KITCHEN KITCHEN

WC WC WC WC

LIME STREET

LIME STREET

Market Research.com Minton, Treharne & Davies

Censeo

N^

Not to scale. For indicative purposes only.

30 37-39 Lime Street

Third Second 1 3 3 2 2 g

LIGHTWELL LIGHTWELL

LIFT LIFT LIFT LIFT LIFT LIFT LIFT LIFT LIFT LIFT LIFT LIFT KITCHEN KITCHEN KITCHEN KITCHEN KITCHEN

WC LIME STREET WC RECEPTION WC WC WC

LIME STREET

LIME STREET

Mapfre Global Risks WR Berkley Insurance

N^

Not to scale. For indicative purposes only.

31 37-39 Lime Street

First Ground 1 1 g g

LIGHTWELL

LIFT LIFT LIFT LIFT LIFT LIFT LIFT LIFT KITCHEN KITCHEN

RECEPTION RECEPTION WC WC

LIME STREET

LIME STREET LIME STREET

LIME STREET

Decus Insurance Brokers Blackmore Borley

N^

Not to scale. For indicative purposes only.

32 Tenancies

The Estate is let in accordance with the tenancy schedules set out overleaf.

The gross rent is £6,921,416 per annum exclusive equating to £64.24 per sq ft overall in respect of the tenanted accommodation. Following deduction of the headrent, the net rental income is £5,883,204 per annum exclusive.

We would draw your attention to the following:-

• All leases are drawn on effective full repairing and insuring terms.

• The ten largest occupiers by reference to their rental obligations generate 77% of the Estate’s income.

• The Weighted Average Unexpired Lease Term is 3.9 years to lease expiries and 2.8 years to tenant breaks as at March 2018.

• Virtually all leases are excluded from the Landlord and Tenant Act 1954.

• 32,986 sq ft (3,064 sq m) of office accommodation is due to be vacated within the next twelve months. This provides an exciting opportunity to upgrade floorspace and re-position the asset.

• A further 5,004 sq ft (464 sq m) of office accommodation is leased on reversionary terms to tenants who are not in occupation.

33 Tenancy Schedule 40 Lime Street

TENANT FLOOR USE AREA LEASE LEASE NEXT RENT ANNUAL RENT HEADLINE HEADLINE COMMENTS (sq.ft.) START DATE EXPIRY DATE REVIEW DATE RENT (£P.A.) (£P.S.F) ERV (£P.A.) ERV (£P.S.F)

Cornerstone Telecommunications Roof Mast - 01/03/2016 28/02/2026 01/03/2021 £22,500 - £22,500 - Inside Telecommunications Act. Infrastructure Ltd Tenant’s option to determine as at 01/03/2022 upon serving three months notice.

General Insurance Corporation of India Ninth (North) Offices 2,011 18/06/2014 17/06/2019 - £100,000 £49.73 £120,660 £60.00 Outside 1954 Act. Tenant pays a fixed service charge of £25,290 per annum (£12.57 psf) plus annual RPI. Terms agreed to surrender existing lease and grant a new five year lease to Clements Europe Ltd at a rent of £120,660 per annum (£60.00 psf). Rent will be payable at half rate for the first twelve months. Refer to part third floor commentary below.

Acis Cargo Underwriting Agency Ltd Ninth (South) Offices 836 15/03/2013 14/03/2019 - £43,500 £50.29 £51,373 £60.00 Outside 1954 Act. Tenant pays a fixed service charge of £12,799 per annum Basement 12a Storage 97 £15.00 £12.50 (£13.71 psf) plus annual RPI.

Vacant Eighth (North) + Offices 949 - - - £61,685 £65.00 £61,685 £65.00 Recently refurbished. Roof Terrace Vendor to provide a twelve month rent top up.

EALC Ltd Eighth (South) Offices 785 29/09/2008 28/09/2018 - £37,500 £47.77 £49,063 £62.50 Inside 1954 Act. t/a QLP Ltd (the Levithan facility) Tenant pays a fixed service charge of £29,359 per annum (£37.40 psf) plus annual RPI.

WR Berkley Insurance (Europe) Ltd Seventh (North) Offices 2,830 29/09/2012 29/09/2018 - £143,500 £50.71 £183,950 £65.00 Outside 1954 Act. + Roof Terrace Tenant pays a fixed service charge of £42,182 per annum (£14.90 psf) plus annual RPI.

WR Berkley Insurance (Europe) Ltd Seventh (South) Offices 1,905 29/09/2012 29/09/2018 - £92,500 £48.56 £119,063 £62.50 Outside 1954 Act. Tenant pays a fixed service charge of £28,394 per annum (£14.90 psf) plus annual RPI.

Skuld Services Ltd Sixth (North) + Offices 4,011 24/06/2012 24/06/2022 24/06/2017 £190,000 £47.37 £260,715 £65.00 Outside 1954 Act. Roof Terrace Tenant has a right of first refusal of the balance of the sixth floor on market terms. Tenant pays a fixed service charge of £68,816 per annum (£17.15 psf) plus annual RPI.

WR Berkley Insurance (Europe) Ltd Sixth (South) Offices 2,257 29/09/2010 28/09/2018 - £255,041 £113.00 £141,063 £62.50 Outside 1954 Act. Tenant pays a fixed service charge of £42,229 per annum (£18.71 psf) plus annual RPI. The dilapidations liability has been settled in advance.

NYA International Ltd Fifth Offices 3,181 01/06/2017 31/05/2027 01/06/2022 £206,700 £64.98 £206,765 £65.00 Outside 1954 Act. (North East) + Tenant’s option to determine as at 01/06/2023 upon Roof Terrace serving six months notice. Tenant pays a fixed service charge of £38,160 per annum (£12.00 psf) plus annual RPI.

Skuld Services Ltd Fifth Offices 2,000 13/06/2012 24/06/2022 13/06/2017 £94,500 £47.25 £130,000 £65.00 Outside 1954 Act (North West) + Tenant pays a fixed service charge of £34,399 per annum Roof Terrace (£17.20 psf) plus annual RPI.

Brunel Professional Risks Ltd Fifth (South) Offices 2,267 01/09/2017 31/08/2022 - £147,500 £65.06 £147,355 £65.00 Outside 1954 Act Tenant pays half rent of £73,750 pax until 31/08/2018. Vendor to provide rent top up. Planning consent granted for a roof terrace.

continued...

34 Tenancy Schedule 40 Lime Street

TENANT FLOOR USE AREA LEASE LEASE NEXT RENT ANNUAL RENT HEADLINE HEADLINE COMMENTS (sq.ft.) START DATE EXPIRY DATE REVIEW DATE RENT (£P.A.) (£P.S.F) ERV (£P.A.) ERV (£P.S.F)

White Oak Underwriting Agency Ltd Fourth (North) Offices 7,006 22/03/2016 21/03/2026 22/03/2021 £437,875 £62.50 £420,360 £60.00 Outside 1954 Act. Tenant pays half rent of £218,937 pax until 22/12/2018. Vendor to provide rent top up. Tenant’s option to determine as at 22/03/2022 upon serving nine months notice. Tenant pays a fixed service charge of £85,152 per annum (£12.15 psf) plus annual RPI.

Compass Broker Holding Ltd Fourth (South) Offices 2,574 01/09/2016 31/08/2022 - £160,875 £62.50 £154,440 £60.00 Outside 1954 Act. Tenant pays fixed service charge of £32,018 per annum (£12.43 psf) plus annual RPI.

Clements Europe Ltd Part Third Offices 4,192 05/01/2015 04/01/2021 - £230,560 £55.00 £251,520 £60.00 Outside 1954 Act. (North) Tenant pays a fixed service charge of £52,807 per annum (£12.60 psf) plus annual RPI. Terms agreed to surrender existing lease and grant a new five year lease to General Insurance Corporation of India at a rent of £274,375 per annum (£62.50 psf). Rent will be payable at half rate for the first fifteen months. Refer to part ninth floor commentary above.

Fenchurch Law Ltd Part Third Offices 2,826 25/12/2015 04/01/2021 - £169,620 £60.02 £169,560 £60.00 Outside 1954 Act. (North) Tenant pays a fixed service charge of £34,561 per annum (£12.22 psf) plus annual RPI.

WR Berkley Insurance (Europe) Ltd Third (South) Offices 2,812 10/12/2012 25/12/2018 - £141,000 £50.14 £161,690 £57.50 Outside 1954 Act. Tenant pays a fixed service charge of £44,534 per annum (£15.83 psf) plus annual RPI.

WR Berkley Insurance (Europe) Ltd Second Offices 7,050 29/09/2010 29/09/2018 - £1,115,063 £112.19 £585,608 £60.00 Outside 1954 Act. (North) Tenant pays a fixed service charge of £181,711 per annum (£18.28 psf) plus annual RPI. Second Offices 2,811 £57.50 The dilapidations liability has been settled in advance. (South)

Basement J Storage 78 £12.50

Everest Advisors (UK) Ltd First (North) Offices 5,513 25/03/2017 23/06/2032 24/06/2022 £301,506 £54.69 £316,998 £57.50 Outside 1954 Act. Tenant’s option to determine as at 24/06/2027 upon serving nine months notice. Rent free period from 25/03/2017 until 02/10/2018. Vendor to provide rent top up. Tenant pays a fixed service charge of £66,156 per annum (£12.00 psf) plus annual RPI.

BDB Ltd First Offices 1,215 24/11/2013 04/05/2019 - £57,760 £47.54 £66,825 £55.00 Outside Act. (Part South) Tenant pays a fixed service charge of £16,165 per annum (£13.30 psf) plus annual RPI Tenant not in occupation.

Special Risks Insurance Brokers Ltd First Offices 506 26/09/2014 24/12/2018 - £27,500 £54.35 £27,830 £55.00 Outside 1954 Act. (Part South) Tenant pays a fixed service charge of £6,292 per annum (£12.43 psf) plus annual RPI.

Oilfield Insurance Agencies Ltd First Offices 880 25/12/2008 24/12/2018 - £44,250 £50.28 £48,400 £55.00 Outside 1954 Act. (Part South) Tenant pays a fixed service charge of £10,848 per annum (£12.32 psf) plus annual RPI.

Tokio Marine HCC First (East) Offices 1,138 25/12/2017 04/04/2025 24/12/2022 £265,000 £56.98 £299,718 £55.00 Outside 1954 Act. Tenant’s option to determine as at 25/12/2022 upon serving six months notice. Ground (East) Offices 3,513 £67.50

continued...

35 Tenancy Schedule 40 Lime Street

TENANT FLOOR USE AREA LEASE LEASE NEXT RENT ANNUAL RENT HEADLINE HEADLINE COMMENTS (sq.ft.) START DATE EXPIRY DATE REVIEW DATE RENT (£P.A.) (£P.S.F) ERV (£P.A.) ERV (£P.S.F)

Everest Advisors (UK) Ltd Ground (West) Offices 3,113 24/06/2017 23/06/2032 24/06/2022 £226,625 £68.90 £212,328 £67.50 Outside 1954 Act. Everest Reinsurance (Bermuda) Ltd acts as surety. Basement 19 Storage 176 £12.50 Tenant’s option to determine as at 24/06/2027 upon serving nine months notice. Tenant pays a fixed service charge of £39,648 per annum (£12.00 psf) plus annual RPI.

Everest Advisors (UK) Ltd Ground (South) Offices 3,701 24/06/2017 23/06/2032 24/06/2022 £213,403 £57.66 £203,555 £55.00 Outside 1954 Act. Everest Reinsurance (Bermuda) Ltd acts as surety. Tenant’s option to determine as at 24/06/2027 upon serving nine months notice. Tenant pays a fixed service charge of £44,400 per annum (£12.00 psf) plus annual RPI.

Tokio Marine HCC Basement 10 & 11 Storage 451 25/12/2017 04/04/2025 25/12/2022 £5,750 £12.75 £5,638 £12.50 Outside 1954 Act. Tenant’s option to determine as at 25/12/2022 upon serving six months notice. Tenant pays a fixed service charge of £5,412 per annum (£12.00 psf) plus annual RPI.

Capstone Facilities Services Ltd Basement 30 Storage 183 01/01/2017 01/06/2020 - £3,120 £17.05 £2,288 £12.50 Outside 1954 Act. Mutual option to determine at any time upon serving 28 days notice. The rent includes service charge at £7.50 psf and buildings insurance at £0.41 psf.

Skuld Services Ltd Basement 32 Storage 185 31/08/2016 24/06/2022 - £2,236 £12.09 £2,313 £12.50 Outside 1954 Act. Mutual option to determine upon serving 28 days

Open Access Finance Ltd Basement A & B Storage 394 27/03/2017 26/03/2020 - £6,883 £17.47 £4,925 £12.50 Outside 1954 Act. Rent charged inclusive of service charge (£7.50 psf) and buildings insurance (£0.41 psf). The rent figure shown is the net position.

Fenchurch Law Ltd Basement C & D Storage 263 04/01/2016 04/01/2021 - £3,179 £12.09 £3,288 £12.50 Outside 1954 Act. Mutual option to determine upon serving 28 days notice. Rent charged inclusive of service charge (£7.50 psf) and buildings insurance (£0.41 psf). The rent figure shown is the net position.

EALC Ltd Basement G Storage 215 01/06/2009 28/09/2018 - £2,900 £13.49 £2,688 £12.50 Inside 1954 Act. Tenant pays a fixed service charge of £5,754 per annum (£26.76 psf) plus annual RPI.

W R Berkley Insurance (Europe) Ltd Basement H Storage 130 20/04/2015 28/09/2018 - £1,571 £12.08 £1,625 £12.50 Outside 1954 Act. Rent charged inclusive of service charge (£7.50 psf) and buildings insurance (£0.41 psf). The rent figure shown is the net position.

The London Electricity Board Basement Sub - 25/12/1987 23/12/2035 ------Station

Special Risks Insurance Brokers Ltd Sub Basement Q Storage 132 26/09/2014 24/12/2018 - £1,320 £10.00 £1,650 £12.50 Outside 1954 Act.

Vacant Basement & Storage 9,638 ------Various units. Sub Basement

OFFICES 71,882

STORAGE 11,942

SUB TOTAL (GROSS) 83,824 £4,812,922 £4,437,433

36 Tenancy Schedule 37-39 Lime Street

TENANT FLOOR USE AREA LEASE LEASE NEXT RENT ANNUAL RENT HEADLINE HEADLINE COMMENTS (sq.ft.) START DATE EXPIRY DATE REVIEW DATE RENT (£P.A.) (£P.S.F) ERV (£P.A.) ERV (£P.S.F)

Schwarzmeer Und Ostee Versicherungs- Seventh Offices 2,053 25/12/2008 24/12/2018 - £102,820 £50.08 £128,313 £62.50 Outside 1954 Act. Aktiengesellschaft Sovag (West) Tenant pays a fixed service charge of £68,829 per annum (£33.52 psf) plus annual RPI. Tenant not in occupation.

Hyundai Marine & Fire Insurance Seventh Offices 911 01/05/2018 30/04/2023 - £50,000 £54.88 £56,938 £62.50 Outside 1954 Act. Company-London Liaison Office (East) Tenant pays a fixed service charge of £15,411 per annum (£16.91 psf) plus annual RPI. Tenant has entered into a reversionary lease as described. The current rent reserved of £37,000 per annum will be topped up by the Vendor to £50,000 per annum.

Direct Commercial Ltd Sixth Offices 2,306 13/03/2017 24/03/2022 - £130,000 £56.37 £138,360 £60.00 Outside 1954 Act. (West) Tenant pays a fixed service charge of £36,587 per annum (£15.86 psf) plus annual RPI.

HK Property Services Ltd Sixth Offices 1,235 01/04/2015 31/03/2020 - £60,000 £48.58 £71,013 £57.50 Outside 1954 Act. (East) Tenant pays a fixed service charge of £15,649 per annum (£12.67 psf) plus annual RPI.

Norwegian Hull Club Fifth Offices 1,418 01/09/2016 28/09/2020 - £92,170 £65.00 £88,625 £62.50 Outside 1954 Act. (North) Tenant pays a fixed service charge of £17,081 per annum (£12.00 psf) plus annual RPI.

Censeo Ltd Fifth Offices 1,180 25/03/2016 28/09/2020 - £76,000 £64.41 £70,800 £60.00 Outside 1954 Act. (Part West) Tenant pays a fixed service charge of £14,556 per annum (£12.00 psf) plus annual RPI.

Market Research.com Ltd Fifth Offices 1,271 29/09/2015 28/09/2020 - £66,738 £52.51 £73,083 £57.50 Outside 1954 Act. (East) Tenant pays a fixed service charge of £16,700 per annum (£13.13 psf) plus annual RPI.

WR Berkley Insurance (Europe) Ltd Fourth Offices 1,227 14/03/2008 28/09/2018 - £138,651 £113.00 £73,620 £60.00 Outside 1954 Act. (Part West) Tenant pays a fixed service charge of £22,205 per annum (£18.00 psf) plus annual RPI. The dilapidations liability has been settled in advance.

WR Berkley Insurance (Europe) Ltd Fourth Offices 1,442 28/09/2010 28/09/2018 - £162,946 £113.00 £86,520 £60.00 Outside 1954 Act. (Part West) Tenant pays a fixed service charge of £24,500 per annum (£17.00 psf) plus annual RPI. The dilapidations liability has been settled in advance.

Minton, Treharne & Davies Ltd Fourth Offices 1,231 24/06/2017 23/06/2022 - £77,250 £62.75 £70,783 £57.50 Outside 1954 Act. (East) Tenant pays a fixed service charge of £16,462 per annum (£13.37 psf) plus annual RPI. Mapfre Global Risks, Compania Third Offices 2,537 01/06/2016 31/05/2020 - £135,000 £53.21 £152,220 £60.00 Outside 1954 Act. International de Seguros y Reaseguros SA (West) Tenant pays a fixed service charge of £40,429 per annum (£15.93 psf) plus annual RPI. Tenant not in occupation. Mapfre Global Risks, Compania Third Offices 1,252 19/05/2015 31/05/2020 - £65,000 £51.92 £68,860 £55.00 Outside 1954 Act. International de Seguros y Reaseguros SA (East) Tenant pays a fixed service charge of £16,508 per annum (£13.18 psf) plus annual RPI. Tenant not in occupation. WR Berkley Insurance (Europe) Ltd Second Offices 3,828 01/08/2011 28/09/2018 - £432,564 £113.00 £229,680 £60.00 Outside 1954 Act. Tenant pays a fixed service charge of £75,082 per annum (£19.60 psf) plus annual RPI. The dilapidations liability has been settled in advance.

Decus Insurance Brokers Ltd First Offices 04/07/2012 03/07/2022 - £220,000 £57.56 £229,320 £60.00 Outside 1954 Act. Brown & Brown Inc act as surety. Tenant pays a fixed service charge of £66,417 per annum (£17.37 psf) plus annual RPI. Tenant has determined its lease with effect from 04/07/2018 and has agreed terms for a new lease expiring 02/07/2019, at a rent of £431,886 per annum. The new lease will be subject to a rolling tenant option to determine upon serving eight weeks notice. The dilapidations liability has been settled in advance.

continued... 37 Tenancy Schedule 37-39 Lime Street

TENANT FLOOR USE AREA LEASE LEASE NEXT RENT ANNUAL RENT HEADLINE HEADLINE COMMENTS (sq.ft.) START DATE EXPIRY DATE REVIEW DATE RENT (£P.A.) (£P.S.F) ERV (£P.A.) ERV (£P.S.F)

Blackmore Borley Ltd Ground Offices 4,931 04/01/2011 03/01/2021 - £250,000 £50.70 £308,188 £62.50 Outside 1954 Act. Tenant pays a fixed service charge of £65,366 per annum (£13.25 psf) plus annual RPI. Partially sub-let to Vivet Ltd for a term expiring 01/12/2020.

WR Berkley Insurance (Europe) Ltd Basement T Storage 170 01/01/2016 28/09/2018 - £2,055 £12.09 £2,125 £12.50 Rent charged inclusive of service charge (£7.50 psf) and buildings insurance (£0.41 psf). The rent shown is the net position to the Landlord.

Poncho No. 8 Ltd Basement N Storage 141 25/01/2017 24/01/2020 - £1,884 £13.36 £1,763 £12.50 Outside 1954 Act. Rent charged inclusive of service charge (£7.50 psf) and buildings insurance (£0.41 psf). The rent shown is the net position to the Landlord. Mutual option to determine upon serving 28 days notice.

Six Physio Ltd Basement L & M Medical 1,503 23/11/2016 22/11/2026 23/11/2021 £34,500 £22.95 £18,788 £12.50 Outside 1954 Act. Tenant pays half rent of £17,250 per annum until 23/08/2019. Vendor to provide a rent top up. Tenant pays a fixed service charge of £18,000 per annum (£12.00 psf) plus annual RPI. Rent is subject to compounded annual RPI increases subject to a collar and cap of 2.00% & 5.00% respectively.

Capstone Facilities Services Ltd Sub Basement 119 Storage 207 03/10/2016 01/06/2020 - £1,482 £7.16 £2,588 £12.50 Outside 1954 Act. Rent charged inclusive of service charge (£7.50 psf) and buildings insurance (£0.41 psf). The rent shown is the net position to the Landlord. Mutual option to determine upon serving 28 days notice.

HK Property Services Ltd Sub Basement K Storage 443 30/06/2017 31/03/2020 - £3,675 £8.30 £5,538 £12.50 Outside 1954 Act. Rent charged inclusive of service charge (£7.50 psf) and buildings insurance (£0.41 psf) and business rates £4.02 psf). The rent shown is the net position to the Landlord. Mutual option to determine upon serving 28 days notice.

Ingenhagg LLP Sub Basement F Storage 117 25/03/2016 24/03/2018 - £2,574 £22.00 £1,463 £12.50 Outside 1954 Act. Rent charged inclusive of service charge (£7.50 psf) and buildings insurance (£0.41 psf). The rent shown is the net position to the Landlord.

Schwarzmeer Und Ostee Sub Basement Storage 319 25/12/2008 24/12/2018 - £3,180 £9.97 £3,988 £12.50 Outside 1954 Act. Versicherungs B & C Tenant pays a fixed service charge of £7,007 per annum Aktiengesellschaft Sovag (£21.96 psf) plus annual RPI.

The London Electricity Board Sub Basement Sub- - 29/09/1962 22/09/2156 - £5.00 - - - - station

Vacant Basement and Sub Storage 3,887 ------Basement

OFFICES 30,644

STORAGE 6,787

SUB TOTAL (GROSS) 37,431 £2,108,494 £1,882,570

ESTATE TOTAL (GROSS) 121,255 £6,921,416 £6,320,003

HEADRENT -£1,038,212 -£948,000

ESTATE GRAND TOTAL (NET) 121,255 £5,883,204 £5,372,002 Net rent increases to £6,118,110 per annum upon completion of transactions in solicitors hands. 38 Development Potential

The Estate is believed to have significant long term development potential and is situated within the eastern Tower Cluster, where the City of London Corporation has encouraged high rise development.

40 Lime Street is arranged over ground and nine upper floors. 37-39 Lime Street is arranged over ground and seven upper floors.

The following is a list of the neighbouring schemes within the immediate vicinity:-

52 Lime Street Under construction 36-storeys 206 metres

The Willis Building Existing building 28-storeys 125 metres

10 Fenchurch Avenue Under construction 15-storeys 85 metres

1 Leadenhall Street Planning consent granted 36-storeys 183 metres

For indicative purposes only. Purchasers are required to carry out their own investigations. 39 City Investment Market

London is one of the most liquid and transparent real estate markets in the world, and remains Low interest rates, low vacancy rates and high occupational demand support strong real estate highly attractive to overseas investors. returns compared to other asset classes.

During 2017 the City of London investment market recorded transaction volumes of £12.8 The spread between the prime City yield and UK gilts over the last 12 months remains at circa billion. This is 6% up on the five year average, and the 5th consecutive year where investment 250 bps. Prime yields in the City of London are also attractive when compared to prime office has exceeded £8 billion. The total investment volume was driven by some large lot size deals, yields in other major gateway cities. including the sale of The Leadenhall Building, EC3 for £1.15 bn and 20 Fenchurch Street, EC3 for £1.28 bn, both of which are within the immediate vicinity of the Estate.

Prime Office Yields Globally

City of London 4.00%

Frankfurt Paris CBD 3.50% 3.00%

Tokyo 3.20%

Madrid Zurich 3.40% 3.50% New York 4.30% Milan Hong 3.25% Kong 2.20%

Singapore 3.30%

40 Recent Capital Transactions

One George Yard, EC3 35 King Street, EC2

Size: 20,420 sq ft Size: 16,311 sq ft

Tenure: Freehold Tenure: Freehold

Price: £22,850,000 Price: £19,500,000

NI Yield: 4.50% NI Yield: 4.05%

Capital Value: £992 psf Capital Value: £1,196 psf

Sale Date: december 2017 Sale Date: September 2017

21 Great Winchester Pellipar House, Street, EC2 9 Cloak Lane, EC4

Size: 26,943 sq ft Size: 29,105 sq ft

Tenure: Freehold Tenure: Long Leasehold (peppercorn rent) Price: £28,000,000 Price: £27,000,000 NI Yield: 4.60% NI Yield: 5.32% Capital Value: £1,039 psf Capital Value: £910 psf Sale Date: July 2017 Sale Date: June 2017

41 : GROSS WRITTEN INSURANCE PREMIUMS INCREASED 6% IN 2015 TO City Occupational Market 300 YEARS OLD & RANKED FIRST GLOBALLY IN TERMS OF £26.7 INTERNATIONALITY BILLION WITH 300 COMPANIES FROM 70 NATIONS LISTED EC3 is a long established core location for the insurance and shipping markets. The insurance industry alone contributes 26% of the City of London’s GDP and 10% of London’s GDP. London is the largest global centre for commercial risk and reinsurance, and is larger than its three closest rivals — Bermuda, Singapore and Zurich — combined. LONDON METAL EXCHANGE: Insurance companies remain the most loyal of all industry sectors to their existing location. In 2015 and again in 2016 insurance sector occupiers moved the shortest distance in comparison to other sectors, as they seek to remain in close proximity to Lloyd’s of London; 454,000 37-39 and 40 Lime Street cannot be bettered in terms of its location adjacent to Lloyd’s. 75%

PEOPLE OF ALL NON-FERROUS METAL ARE Take-up FUTURE BUSINESS. EMPLOYED IN IN 2015 THIS EQUATED TO City take-up increased by 17% over the quarter to 1.9 million sq ft, the highest Q4 take-up THE CITY OF $12 TRILLION NATIONAL • since 2014. This brought the annual 2017 leasing volumes to 6.6 million sq ft, 22% ahead of LONDON 4 BILLION TONNES the same period last year and in line with the five-year annual average of 6.7 million sq ft. • 170 MILLION LOTS

Leasing volumes in the City core were supported by a greater number of larger transactions. The largest transaction of the year saw Deutsche Bank pre-let a minimum of 469,000 sq ft at 21 , EC2; a significant affirmation by the bank of its commitment to the City. The Banking & Finance sector accounted for 30% of take-up. The flexible office sector expansion continued at pace, taking 23% of total leasing volumes. Transactions in the insurance sector remained steady at 8% of take up. Other notable transactions include LLOYD’S Antares Underwriting committing to 30,000 sq ft at the new development at 21 Lime Street. OF The start of 2018 has seen 58,000 sq ft at Aurum (30 Lombard Street) go under offer to a single occupier. 251 LONDON THE WORLDS FOREIGN SPECIALIST BANKS INSURANCE AND Supply RE-INSURANCE MARKET IN LONDON OPERATING ACROSS 200 Availability fell marginally in Q4 2017 to stand at 7.0 million sq ft, reflecting a vacancy rate TERRITORIES of 5.1%. Supply increased 16% year on year due to a number of large developments entering supply figures towards the latter part of 2017. However, total supply remained below the five-year quarterly average of 7.1 million sq ft.

An estimated 5.4 million sq ft was under construction and expected to deliver from Q3 2018 onwards, albeit at this stage 48% (or 2.6 million sq ft) of space has been pre-let or under offer.

Overall the total volume of speculative space under construction contracted quarter on quarter to 2.8 million sq ft, from 3.4 million sq ft at the end of Q3 2017, which will insulate the market from future supply increases in the next three years. $2.7 TRILLION OF FOREIGN EXCHANGE The largest speculative scheme under construction and due to complete in 2018 is One TURNED OVER EACH DAY - 530 Bartholomew Close, EC1 (213,000 sq ft). Other key schemes delivering in the second half of 2018 include 70 St Mary Axe, EC3 (c. 120,000 sq ft of which is under offer to Sidley Austin) and FOREIGN The Bower, EC2 (112,000 sq ft available). COMPANIES LISTED IN LONDON 41% OF GLOBAL FOREIGN EXCHANGE EPC Further Information

37-39 Lime Street (D85). For further information please contact:-

40 Lime Street (D82).

Further information is available upon request

Service Charge

There are no service charge shortfalls in respect of the tenanted accommodation.

Douglas Hall Martin Lay Tel: +44 (0)20 7100 5555 +44 (0)20 3296 2021 [email protected] [email protected]

Tom Kemp Tara Scott VAT Tel: +44 (0)20 7100 5555 +44 (0)20 3296 3848 [email protected] [email protected] The Estate is not elected for VAT. Adam Stephens +44 (0)20 3296 4116 [email protected] Proposal

Offers in excess of £78.00 million are invited, subject to contract, for the long leasehold interest.

This reflects a net initial yield of 7.0% allowing for purchaser’s costs of 6.8% and a capital value of £643 per sq ft.

MISREPRESENTATION ACT 1967 Hall Kemp (trading name of HK Property Services Ltd) and Cushman Wakefield for themselves and the Vendor give notice to anyone who reads these particulars as follows:- 1) These particulars are prepared for the guidance only of prospective purchasers. They are intended to give fair overall description of the property but are not intended to constitute part of an offer or contract. 2) Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3) Nothing in these particulars shall be deemed to be a statement that the property is in good conditions or otherwise nor that any services or facilities are in good working order. 4) The photographs appearing in this brochure show only certain parts of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Further, no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5) Any areas, measurements or distances referred to herein are approximate only. 6) Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by an intending purchaser. 7) Descriptions of a property are inevitably subjective and the descriptions contained herein are in good faith as an opinion and not by way of statement of fact. 8) Any intending purchaser should satisfy themselves as to the presence of any deleterious materials that may exist, or have been used in the construction of the property. 9) The vendor provides no warranty as to the precise location of the boundaries of the property.

PROPERTY MISDESCRIPTION ACT 1991 These details are believed to be correct at the time of compilation but may be subject to subsequent amendment.

February 2018. 43 Appendix 1: Headlease Summary

Lessor • A willing landlord and a willing tenant Underletting

The Worshipful Company of Carpenters. • Vacant possession Underletting of the whole or part of the property is permitted, subject to certain conditions. • Without fine or premium Demise Repair • For a term of years and with periodic rent reviews that 37-39 and 40 Lime Street and 4 Fenchurch Avenue, London EC3. shall accord with good estate management and normal The tenant covenants to keep and maintain the premises in practice Term good and substantial repair and condition. • The tenant has complied with the terms of the headlease 150 years from 29/09/2006 expiring 29/09/2156 (circa 138 years Alterations and Redevelopment unexpired). • The premises have been fully reinstated in the event that they have been damaged or destroyed Alterations are permitted. The landlord must approve any Rent works to merge or combine the premises with adjoining or • That no work has been carried out which has diminished neighbouring premises. the rental value of the premises. The freeholder is entitled to 15.00% of the rents receivable from Redevelopment is permitted providing that the tenant has underletting(s) at the property, subject to a minimum rent of The following are to be disregarded:- secured a planning consent. The landlord’s written approval is £355,000 per annum. required (not to be unreasonably withheld or delayed). • The tenant’s occupation Payment and calculation of rent Insurance • Any goodwill attached to the premises Rents receivable are assessed annually. The provisions for The tenant insures. calculating rents receivable are set out below:- • Any rent free or concessionary rent free period for fitting out Gross rent is defined as all principal rents, licence fees and premiums receivable by the headlessee in respect of the Review of the minimum rent premises (whether capital or income in nature).

The minimum rent is currently £355,000 per annum. This It includes capital sums received by the headlessee in increases by £25,000 per annum on 29/09/2031, 29/09/2056, connection with the grant, variation or surrender of sublettings 29/09/2081, 29/09/2106 and 29/09/2131. and licences.

Excluded from rents receivable are sums receivable by the User headlessee in respect of reimbursements or on account of expenses or fees. Any use within Class A1 to A5 (inclusive), B1(a), D1 or D2 of the Town and Country Planning Use Classes Order. The headlessee is to use good estate management in order to exploit the premises having regard to prevailing market Alienation conditions. The tenant covenants not to assign part only of the property. In the event that the headlessee (or a group company, licensee Assignment of the whole is permitted with the landlord’s or franchisee) takes occupation of the premises then a notional consent (not to be unreasonably withheld or delayed). rent equivalent to the open market rental value of the premises is deemed to apply. The open market rental value is defined as the best yearly rent at which the occupied premises might reasonably be expected to let in the open market assuming:-

44 Appendix 2: Tenants Profile

The ten largest tenants within the Estate generate 77% of the current annual rent.

W.R. Berkley Insurance (Europe) Ltd Everest Advisors (UK) Ltd Everest Reinsurance (Bermuda) Ltd act as surety

35.9% of contracted rent

W.R. Berkley Insurance (Europe) Ltd is a wholly owned subsidiary of W.R. Berkley Corporation. Founded in 1967, W.R Berkley Corporation is an insurance holding company that is amongst the largest commercial lines writers in the United States. 10.7% of contracted rent

Everest is a leading global reinsurance and insurance organisation with an extensive distribution W.R. Berkley Corporation Year Ended 2016 network that spans five continents. Total Revenues USD $7.65 billion

Total Assets USD $23.36 billion Everest Advisors (UK) Ltd Year Ended December 2016

Turnover £11.12 million www.wrberkley.com Net Current Assets £7.00 million

Everest Re Group Ltd. (RE) Year Ended December 2016

Total Assets USD $21.32 billion

Shareholder Equity USD $8.07 billion

www.everestre.com

45 Blackmore Borley Ltd White Oak Underwriting Agency Ltd

6.41% of contracted rent 6.3% of contracted rent

Blackmore Borley Ltd was established in 1997 to provide an independent bespoke and White Oak is a specialist insurance and reinsurance agency focussed on niche markets personalised insurance broking service. requiring expert solutions.

Blackmore Borley Ltd Year Ended March 2017 White Oak Underwriting Agency Ltd Year Ended December 2016

Turnover £1.95 million Sales Turnover £10.34m

Net Current Assets £257,147 Net Current Assets £2.67m

www.blackmoreborley.com www.whiteoakuw.com

46 Decus Insurance Brokers Ltd Skuld Services Ltd (Brown & Brown Inc act as surety)

4.1% of contracted rent

Skuld Services Ltd is a subsidiary of Assuranceforeningen Skuld, an international mutual maritime insurance company, founded in 1897.

4.20% of contracted rent

Decus Insurance Brokers Ltd is an insurance intermediary providing services across varying Assuranceforeningen Skuld Year Ended December 2016 speciality lines of business including; Property, Professional Liability and Binding Authority Earned Premium & Calls USD $403.2 million programs. Its parent company, Brown & Brown Inc, is listed on the New York Stock Exchange. Total Assets USD $1,000.5 million

Brown & Brown Inc Year Ended 2016

Total Revenues USD $1.76 billion Skuld Services Ltd Year Ended December 2016

Total Assets USD $5.27 billion Sales Turnover £7.24 million

Shareholder Equity USD $2.36 billion Net Worth £1.43 million

Decus Insurance Brokers Ltd Year Ended December 2016 www.skuld.com

Turnover £8.66 million

Profit before Tax £2.68 million

Net Worth £11.14 million

www.decusbrokers.co.uk

47 Tokio Marine HCC Clements Europe Ltd

3.9% of contracted rent 3.6% of contracted rent

Tokio Marine HCC is part of Tokio Marine Holdings Inc, a premier global company founded in Clements Worldwide, the trading name of Clements Europe Ltd, is a leading provider 1879 with a market cap of $31 billion as at December 2016. of insurance solutions for expatriates and international organizations. Founded in 1947, Clements offers worldwide car, property, life and health, and speciality and high risk insurance to clients in more than 170 countries. HCC International Insurance Company Plc Year Ended December 2016

Turnover £353.1 million Clements Europe Ltd Year Ended December 2016

Net Current Assets £105.6 million Turnover £2.17 million

Net Assets -£1.32 million www.tmhcc.com

www.clements.com

48 NYA International Ltd Mapfre Global Risks, Compania International de Seguros y Reaseguros SA

2.98% of contracted rent

Since 1990 NYA has been committed to helping clients understand the threats to their 2.89% of contracted rent people, information, property and reputation. A global team provides expertise to mitigate and manage security risks. Clients range from small to medium sized enterprises to high net Mapfre is an international Spanish insurance company with 38,000 employees. The Group worth individuals. operates in 49 countries, is the number one non-life insurer in Latin America, and one of the top 20 reinsurers in the word. The Group insures 13.2 million cars and 5 million homes.

NYA International Ltd Year Ended December 2016 MAPFRE S.A 9 Months 2017 Net Worth £2.23 million Total Revenues €21.29 million Total Assets £3.24 million Shareholder Equity €8.78 billion

www.nyarisk.com www.mapfreinsurance.com

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