Lime Street Estate London EC3
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THE Lime Street Estate LONDON EC3 A CORE CITY OF LONDON ASSET MANAGEMENT OPPORTUNITY THE WILLIS BUILDING THE LEADENHALL BUILDING M&G 20 FENCHURCH STREET LLOYD’s of LONDON LEADENHALL MARKET ^ N Executive Summary • Situated in a prime City of London location, within the eastern Tower Cluster. • Located directly opposite Lloyd’s of London, the world’s leading specialist insurance 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, 20 Fenchurch Street 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 THE SCALPEL, 3 40 LEADENHALL STREET, 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 BISHOPSGATE, EC2 & 7 100 BISHOPSGATE, 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 22 BISHOPSGATE, EC2 8 70 ST MARY AXE, 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 BROADGATE FINSBURY CIRCUS LIVERPOOL STREET LONDON WALL SALESFORCE TOWER GUILDHALL 7 MOORGATE 8 TOWER 42 HOUNDSDITCH GRESHAM STREET STOCK EXCHANGE WOOD STREET L O T H B U R Y BISHOPSGATE MILK STREET THROGMORTON STREET PRINCE’S STREET SWISS RE ST PAUL’S 6 AVIVA TOWER KING STREET BANK OF ENGLAND OLD BROAD STREET THE LEADENHALL BUILDING POULTRY 5 MANSION HOUSE ST ST PAUL’S ROYAL L E A D E N H A L L CATHEDRAL THREADNEEDLE EXCHANGESTREET STREET CORNHILL 1 LLOYD’S KING WILLIAM STREET 4 OF LONDON MANSION BANK HOUSEQUEEN STREET MANSION HOUSE THE WILLIS BUILDING 3 S T R E E T LEADENHALL FENCHUR LOMBARD STREET MARKET QUEEN VICTORIA STREET C H A V E LIME FENCHURCH STREET 2 BLOOMBERG HQ GRACECHURCH STREET MANSION HOUSE FENCHURCH STREET 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. Liverpool 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 (Crossrail) 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.