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41 KINGSWAY WC2 41 KINGSWAY A UNIQUE MIXED USE INVESTMENT OPPORTUNITY

Executive Summary

n Freehold mixed-use investment / development opportunity.

n Prominently located on the corner of Kingsway and Kemble Street.

n Mixed-use property providing 11,153 sq ft of net internal area of existing B1 office use and 3,773 sq ft of retail on the ground and basement with return frontage on Kingsway and Kemble Street.

n Fully let with total passing rent of £480,665 per annum equating to £34.44 per sq ft overall on the office accommodation and £93.68 per sq ft ITZA on the retail element.

n Detailed planning consent for the provision of 14 residential apartments (C3) comprising 12,648 sq ft (1175 sq m) of net saleable area with a mix of one, two and three bedroom apartments, and a new A3 ground end basement unit.

n Reversionary income with well-timed lease events to capitalise on strong rental growth forecasts.

n Offers are sought in excess of £12,750,000 subject to contract and exclusive of VAT.

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RIVER THAMES LINCOLN’S INN FIELDS OXFORD CIRCUS

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Location Situation

Situated in the city of , Kingsway is To the east of the property lies London’s most famous Waterman House occupies a noticeable end of terrace considered one of the major thoroughfares in the West legal district playing home to the corner plot at the junction of Kingsway and Kemble End, linking in the north to Aldwych and and the Inns of Court. The local area has therefore been Street on the western side of the Strand Underpass. The Strand in the south. The property itself occupies a prime a synonymous as an office location with many named local area is predominantly distinguished by commercial location on the street and is centrally located between law firms and financial institutions occupying properties occupiers and the property sits directly opposite the Covent Garden, Holborn, Aldwych and the City as well nearby. In addition to this, there are many prestigious London School of Economics. Other notable commercial as being in close to proximity to the River Thames. education establishments which have their main occupiers include Goldman Sachs, Deloitte, Google, campuses in the area, including the London School of Tishman Speyer and the UK Government. Bordering the property to the West, Covent Garden Economics, Kings College London and the Royal College is one of London’s most popular districts offering an of Surgeons. array of acclaimed shopping, restaurant and leisure facilities as well as world renowned historic and cultural Due to improvements to the retail and leisure landscape establishments, such as House. in recent years, the local area has increasingly become a popular residential location. Local residents and commercial occupiers also have the benefit of being close by to the green open space of Lincoln’s Inn Fields, the largest open public square in London.

Y TO EUSTON KINGS CROSS

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TO 41 KINGSWAY A UNIQUE MIXED USE INVESTMENT OPPORTUNITY

Communications

Communications in the area are excellent and the site is centrally located to benefit from close proximity to both the City and the West End. Nearby underground stations include Holborn (Piccadilly and Central lines), Temple (District and Circle lines) and Covent Garden (). National Rail services are accessible via Charing Cross station which is situated 0.6 miles to the south west of the site and operates services to destinations outside of . In addition, the area is well serviced by a large number of bus routes with Aldwych being a central terminus for many routes.

By road, Waterman is easily accessible by the Kingsway (A4200) and Strand Underpass, which lead directly to High Holborn to the north and in the south.

Crossrail

In addition to the existing transport links, accessibility to the site will be further improved when the major Crossrail Hub opens at station in 2018. Crossrail will directly connect London’s main business centres, linking with , the West End, the City and Canary Wharf with up to 24 trains per hour.

Route Map Forest Harold Tottenham Stratford Gate Ilford Goodmayes Romford Wood Shenfield Court Road Hayes & Ealing Maryland Manor Seven Chadwell Gidea Brentwood Taplow Slough Iver Harlington Hanwell Broadway Paddington Farringdon Whitechapel Park Kings Heath Park

Custom Maidenhead Burnham LangleyWest Southall West Acton Bond Liverpool Abbey House Drayton Ealing Main Line Street Street Wood Surface line Heathrow Canary Woolwich Tunnel Airport Wharf Portal (tunnel entrance and exit)

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Building Overview Existing Floor Plans

Waterman House is an attractive corner building of a Victorian neo-classical design and provides 14,926 sq ft net internal area of modern office and retail accommodation arranged over lower ground, ground and seven upper floors.

The existing B1 office accommodation is arranged over part lower ground, part ground and seven upper floors totalling 11,153 sq ft net internal area. The property is accessed from the main entrance on Kemble Street with a passenger lift serving all floors. All floors benefit from dual aspect views of Kingsway and Kemble Street and boast good natural light.

The office floors are fully occupied by two tenants and the specifications includes:

A four passenger lift servings all floors

Plastered and painted walls with suspended ceiling Kemble Street Carpet flooring Perimeter trunking RETAIL RETAIL OFFICE OFFICE OFFICE Male and female WCs Kitchen facilities Bicycle storage and garage (one vehicle) on ground floor access on Kemble Street KINGSWAY The existing retail element occupies a prominent corner position at the junction of Kingsway and Kemble Street. The unit is let to Leeds Building Society with the ground floor dedicated to retail use and the ancillary basement accommodation accessed via bASEMENT GROUND FIRST SECOND THIRD a staircase situated in the centre rear of the ground floor.

Existing Area Schedule

Floor Use Existing NIA (SQ FT) Existing GIA (SQ FT)

Basement Retail 1,848 4,000

Ground Retail 1,925 2,541

First Office 1,878 2,408 OFFICE OFFICE OFFICE OFFICE Second Office 1,816 2,344

Third Office 1,895 2,386

Fourth Office 1,858 2,378

Fifth Office 1,825 2,327

Sixth Office 1,486 2,129 FOURTH FIFTH SIXTH SEVENTH Seventh Office 395 593

14,926 21,106

*Floor areas provided by client

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Tenancies The Opportunity

FLOOR RENT TERM LEASE OUTSIDE Residential Opportunity FLOORS TENANT USE LEASE START AREA PASSING (YEARS) EXPIRY 1954 ACT (SQ FT) PA Planning consent was granted on 4th August 2015 for C3 residential conversion (ref: 15/03597/FULL) for use Leeds Building Society Retail 25 years 24/06/1991 23/06/2016 NO 3,773 £96,500 of part basement and part ground floor as a restaurant 4 years (Class A3) and use of part ground and first to seventh First & ICSA Software Office 10 months 06/02/2012 24/12/2016 YES 2,273 £77,500 floors to provide 14 residential flats (Class C3). External Seventh International Limited 19 days alterations including extension and new dormer windows 5 years at roof level; installation of mechanical plant within the Second ICSA Software Office 1 month 31/10/2011 24/12/2016 YES 1,816 £72,640 Floor International Limited rear lightwell and at seventh floor level; and installation 24 days of an extract duct to the rear elevation. Third Clarks Ricketts LLP Office 2 years 04/02/2015 03/02/2017 YES 1,895 £56,800 Floor Copies of the consent along with the consented 4 years architectural drawings are available within the data Fourth ICSA Software Office 10 months 06/02/2012 24/12/2016 YES 1,858 £52,085 room. Floor International Limited 19 days 4 years Office refurbishment Opportunity Fifth ICSA Software Office 3 months 14/09/2012 24/12/2016 YES 1,825 £65,700 Floor International Limited 11 days With this prime commercial location, clean floor plates 4 years and excellent natural light throughout, the property is Sixth ICSA Software Office 9 months 01/03/2012 24/12/2016 YES 1,486 £59,440 Floor International Limited also suitable for a comprehensive office refurbishment 25 days and re-letting, or owner occupation. £480,665 Retail/Restaurant Opportunity

The planning consent includes change of use of the lower ground and ground floors from Class A2 to a restaurant Class A3 use. In order to implement this Tenant Covenant Information consent vacant possession would be required.

Leeds Building Society

Leeds Building Society is the 5thg biggest building society in the UK. Further information is available at www.leedsbuildingsociety.co.uk ICSA Software International Limited

ICSA Software international is a software company of ICSA (the institute of Chartered Secretaries and Administrations) the chartered membership and qualifying body professionals working in governance, risk and compliance. Further information available at www.icsasoftware.com Clarks Ricketts LLP

Clark Ricketts LLP is a well-established law firm, whose practice is entirely devoted to aviation law matters. Further information available at www. clarkricketts.co.uk

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Consented Schedule Consented Scheme Plans

The table below outlines the proposed off plan Net Saleable Areas (NSA) for the consented residential upper parts and the consented Gross internal Areas (GIA) on the restaurant unit on ground and basement. FLAT 1.3 FLAT 2.3 FLAT 3.2

Floor Use Unit Bedrooms Size Sq M Size Sq Ft

Basement A3- Retail Restaurant - 175 1,884

Ground A3- Retail Restaurant - 172 1,851 RESTAURANT First C3- Residential 1.1 2 81 872

Kemble Street FLAT 1.2 FLAT 2.2 First C3- Residential 1.2 1 37 398

First C3- Residential 1.3 2 71 764 FLAT 3.1 KITCHEN RESTAURANT FLAT 1.1 FLAT 2.1 Second C3- Residential 2.1 2 70 753

Second C3- Residential 2.2 1 37 398

Second C3- Residential 2.3 2 68 732 KINGSWAY

Third C3- Residential 3.1 3 118 1,270 bASEMENT GROUND FIRST SECOND THIRD Third C3- Residential 3.2 2 69 743

Fourth C3- Residential 4.1 3 118 1,270

Fourth C3- Residential 4.2 2 69 743

Fifth C3-Residential 5.1 3 114 1,227 FLAT 6.2 Fifth C3- Residential 5.2 2 66 710 FLAT 4.2 FLAT 5.2 FLAT 6.2

Sixth/Seventh C3- Residential 6.1 Duplex 3 171 1,841

Sixth/Seventh C3- Residential 6.2 Duplex 3 86 926

Total Gross 347 3,375 Internal Area Restaurant Total Net Saleable 1,175 12,648 Area Residential (14 Apartments) FLAT 4.1 FLAT 5.1 FLAT 6.1 FLAT 6.1

Areas schedule has been provided by the clients architect.

FOURTH FIFTH SIXTH SEVENTH

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Commercial Market Commentary

Office Occupational Market

2015 was a strong year in Midtown, the third consecutive year of above-trend take-up. Pre-letting activity continues to be prevalent as the vacancy rate fell to just 1.8%. Availability fell marginally during the quarter to stand at Having seen rapid rental growth over the past three years, 1.4m sq ft, broadly in-line with the 10-year average. The the pace of increase is expected to moderate in 2016. availability of ready-to-occupy space fell much more sharply in Q4, reflected in the Midtown vacancy rate, Take-up in Midtown in Q4 2015 hit its highest level since which fell to 1.8% from 2.6%, the lowest since Q2 2001. Q1 2013 at 680,800 sq ft. This represented an increase of 23% on the previous quarter and was 82% above the Prime rents, reflecting rents in King’s Cross, remained 10-year average of 373,400 sq ft. Midtown was the best unchanged in Q4 2015 at £80.00psf. This represents an performing market in Central London relative to trend annual increase of 17.6%. Rent free period remained at 15- in Q4. Take-up for 2015 was 2.2m sq ft, which was 14% 18 months on a 10-year lease higher than 2014 and 44% above the 10-year average. The largest deal of the quarter saw Universal Music pre-let 176,300 sq ft at Four Pancras Square.

Area Rent Date Address Floor Tenant (Sq Ft) (Per Sq Ft) 17 Slingsby Place 14-12-2015 7th 3,017 Camron PR £75.00 London, WC2E 9AB Orion House Retail Occupation Market Wadhwani Asset 04-12-2015 5 Upper St Martins Lane 9th 5,832 £90.00 Management LLP London, WC2H 9EA Situated centrally between the West End and the City, This will predominantly focus on the area between the Midtown retail market is well situated and therefore Holborn and stations, two of the busiest 6 Agar Street 30-11-2015 Part 2nd 3,892 Gordon Dadds LLP £65.00 London, WC2N 4HN benefits from exceptionally high levels of footfall. Underground stations in central London. The overall retail landscape in the area has changed 25 Bedford Street Association of 31-10-2015 2nd 10,530 £79.50 In addition to this, the introduction of new Crossrail London, WC2E 9EQ British Ports significantly over the past few years and has a diverse tenant mix that has been positively influenced by the stations at Farringdon and Tottenham Court Road 4th are expected to create an influx of demand for retail 3rd improved retail offering in the City. 14 Garrick Street 27-10-2015 2nd 5,540 ServiceMax Europe £77.50 units in the area. The limited supply coupled with the London, WC2E 9BJ 1st Further improvements are expected to take place in strong demand has resulted in improved rental growth Rec the area since Holborn has been identified in Camden forecasts and rising capital values being a consistent Davidson Building Council’s Local Development Framework as a major trend for the Holborn sub-market, with prime zone A’s 31-08-2015 5/8 Southampton Street 2nd 6,300 Elasticsearch £72.50 shopping area. on Kingsway reaching £180 ITZA. London, WC2E 7HA 90 Long Acre 10-08-2015 4th Unit 1 6,956 Wells Fargo £62.00 London, WC2E 9NQ

Date Property Address Tenant Transaction Rent

Jan 15 77 Kingsway Leon OML £180

Dec 13 73 Kingsway Cards Galore OML £150

Oct 13 119 Kingsway Scribber OML £180

Sept 13 60 Kingsway Co-Op OML £141

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Further Information

Residential West End Sales Market Planning Proposal

In a continuation of strong sales Overall, the total value of sales Strong demand has been witnessed The building is not listed and is located in the Strand Offers are sought in excess of £12,750,000 subject figures throughout 2015, the West was up 15% on Q4 2014 with a 65% in the new-build market with new conservation area within the borough of Westminster to contract and exclusive of VAT. End market enjoyed a robust end increase in the volume of sales properties making up 67% of all to the year with 33% of homes sold compared to the first half of 2015. sales conducted by CBRE in Q4. This VAT in Q4 upward of £2,250 psf across This surge of activity in the market indicates a continued focus from The Property has been elected for VAT purposes and it CBRE Residential’s West End patch. can be attributed to a recovery purchasers on high specification is intended to treat the transaction as a transfer of going This is the highest average value in buyer confidence following the new-build residences, with these concern (TOGC). achieved since 2012 and an increase minor disruption of mansion tax properties achieving a premium of of 23% on the previous year. after the May election. 92% on average capital value, up EPC 69% on Q3. Energy Performance Certificates will be made available in the data room

£ / SQ No of Exchange Property Address Post Code Sale Price SQ FT Floor FT bedrooms Date

The Charles Apt 15 WC2R £2,000,000 954 £2,096 3 Fourth Jan 16

Strand Apt 2 Gatti House WC2R £3,650,000 1,744 £2,093 2 Second May 15

Third & Gatti House Apt 3 WC2R £2,750,000 1,363 £2,017 2 Aug 15 Contact Fourth Further information is available via the data room. For access details please contact CBRE: Aldwych Chambers, Apt 16 WC2R £2,350,000 1,168 £2,012 3 Fourth Apr 15 James Mashiter Guy Passey Hop House 13 WC2N £950,000 495 £1,919 1 First Jan 15 [email protected] [email protected] Seventh & 020 7420 3018 020 7182 2394 St Dunstans Court Apt 75 EC4A £1,600,000 845 £1,893 2 Oct 15 Eighth Charlie Philip Kathryn Durrant Buckingham St Apt 3, 6-7 WC2N £2,100,000 1,139 £1,844 2 First Jun 15 [email protected] [email protected] 020 7182 2442 020 7182 2235

DISCLAIMER: CBRE Limited

CBRE Limited on its behalf and for the Vendors or Lessors of this property whose Agents they are, give notice that: 1. 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. 2. 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. 3. No person in the employment of CBRE Limited has any authority to make any representation or warranty whatsoever in relation to this property. 4. Unless otherwise stated, all prices and rents are quoted exclusive of VAT. February 2015.

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