26-28 Glasshouse Yard, London

26-28 GLASSHOUSE YARD, LONDON EC1 HIGHLY REVERSIONARY INVESTMENT FREEHOLD OFFICE SUMMARY INVESTMENT zz Striking modern office building comprehensively refurbished in 2011 to provide 4,436.9 sq m (47,758 sq ft) NIA of Grade A accommodation. zz Less than 300 metres from the new Farringdon Crossrail Station. zz Freehold. zz Single let to the undoubted covenant of Amazon UK Services Ltd, part of Amazon.com, Inc. zz c. 4.75 years unexpired. zz Rent: £1,826,881 pa (inclusive of vendor top-up). zz ERV: £2,660,755 pa. zz Reversionary passing rent of only £38.41 psf overall (assuming lease areas of 47,560 sq ft). zz Prime Clerkenwell & Farringdon in excess of £70.00 psf. zz Price: £40.25 million zz Net Initial Yield: 4.25% zz Reversionary Yield: 6.19% zz Equivalent Yield: 5.75% zz Capital Value: £843 psf INVESTMENT RATIONALE

zz Secure income from a “blue chip” 5 A1 covenant. zz Reversionary passing rent of only £38.41 psf overall. zz Significantly under-rented with prime Clerkenwell/Farringdon rents now in excess of £70.00 psf. zz Opportunity to re-gear with one of the world’s largest online retailers. zz Well-specified modern office building with no capex required. zz Crossrail arriving at Farringdon Station in 2018. zz Growth location with large-scale local development activity. zz Low capital value of only £843 psf compared to £1,100 psf in prime Clerkenwell/Farringdon. SHOREDITCH HIGH STREET LIVERPOOL STREET MOORGATE LONDON BRIDGE SMITHFIELD MARKET

OLD STREET CANARY WHARF CROSSRAIL ST PAUL’S FARRINGDON

CROSSRAIL CROSSRAIL BARBICAN FARRINGDON STATION GLASSHOUSE STATION EASTERN TICKET HALL

CROSSRAIL

ALDERSGATE STREET

OLD STREET

GOSWELL ROAD

CLERKENWELL ROAD

300M FROM THE NEW ST JOHN ST FARRINGDON CROSSRAIL STATION

CONSTANT OF TAKE-UP BY TMT TENANT DEMAND OCCUPIERS

SQUARE FEET CLERKENWELL TAKEN-UP BY Q2 2017

PRESTIGIOUS GLOBAL BRANDS VACANCY RATE TMTHOTSPOT

LONDON’S QUARTER EXCITING NEW RESTAURANTS

WORLD CLASS AMENITIES

INDEPENDENT COFFEE SHOPS CUTTING EDGE NEIGHBOURHOOD

CLERKENWELL DESIGN WEEK EXCLUSIVE BOUTIQUE HOTELS

STRONG OCCUPIER APPEAL CROSSRAIL OPENING IN 2018 MAJOR DEVELOPMENT ACTIVITY FUELLED al St BY THE ARRIVAL OF CROSSRAIL IN 2018Perciv

d R n o St ton C mpt p t e a om S n h C k t t A ic r r tw a 1 s o t a l B 7 S S N n t L e

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G f W

k ng h i e i S wl t e t o n B c a G r G s o a o t s o S l s u le d P e t d S g Clerkenwell S l e t v O t h y n n A r S u Green u b L t o y s n 1 2 3 r 4 le M r y e A b e s o A R 2 d G FARRINGDON STATION CHARTERHOUSE BARTS FARRINGDON STATION0 R o ell s 1 w w EASTERN TICKET HALL PLACE SQUARE WESTERN TICKET HALL en e rk l le l C R d

Developer: Crossrail Developer: TIAA Henderson Developer: Helical Bar PLC Developer:

ll Rd e St Scheme: 75,000 sq ft Real Estate Scheme: 212,000 sq ft of Cardinal Lysander nwe un ke S rt ler GLASSHOUSE o C t F

of Grade A offices and Scheme: 240,000 sq ft Grade A offices, 20,500 sq ft Scheme: 207,000 sq ft J o h retail accommodation of Grade A offices and of A3 retail and 236 lhighl Rd of Grade A offices and T n e u ’ nw s rke r S Cle n Timing: 2018 30,000 sq ft of retail quality apartments retail 25,000 sq ft of retail/ m t i H l Fann St l S Timing: Under construction Timing: Q3 2018 restaurant a accommodation S t t t J t oh

A o Timing: 2018 5 n n 2 0 G ’s S 0 a affr L r n d

en o

H 1

i l Charterhouse l F a Square r Farringdon t r S i n n usia h g art St d h C c ee BARBICAN o B

Barbican n Cowcross St

S 1 CENTRE 4 t

l Farringdon d e Farringdon Eastern ticket hall r Smithfield s Western ticket hall g Market a lle St t Grevi e

S t

5 6 7 8 eet 3 Str se 2 u o rh e e rt n a 5 a h L A SMITHFIELD 24-30 148 SUTTON YARD, C g n 2 o L 0

QUARTER WEST SMITHFIELD OLD STREET 65 GOSWELL ROAD 1 A

1 W d l Developer: City of Developer: Whitbread Developer: Great Ropemaker Developer: Chesham Capital e Holb i e C Chancery Lane orn s hf h t Smit London Corporation Scheme: 326 bedroom hotel a Partnership Scheme: 77,500 sq ft n c Scheme: Smithfield Market totalling 123,807 sq ft e Scheme: 151,700 sq ft of of Grade A offices 6 r Museum y A4 to be redeveloped to Timing: Planning L Grade A offices Timing: Completed Q1 2016 0 of n London London Wall provide a new home for consent granted Timing: Under construction the Museum of London Barts Pathology Timing: 2021 Museum al St Perciv

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k ng h i e i S wl t e t o n B c a G r G s o a o t s o S l s u le d P e t d S g Clerkenwell S l e t v O t h y n n A r S u Green u b L t o y s n r le M r y e A b e s o A R 2 d G 0 R o ell s 1 w w en e rk l le l C R d

CROSSRAIL

ll Rd St nwe une ke S t ler or C t GLASSHOUSE F

J o h ll Rd T n e u ’ nw s rke r

Cle n zz Europe’s largest infrastructure project. m t i H l Fann St l S a S t t zz £15BN project revolutionising London travel. t J t o A o

5 n n 2 0zz Arriving at Farringdon station in 2018. G ’s S 0 a affr L r n d

zz Farringdon Station is one of the key London eCrossrailn stations.o

A A

1 1

i zz Only Crossrail station with a 3-way interchange between l Charterhouse l F 300m a Square Thameslink, Crossrail and London Underground services. r Farringdon r i n Barbican g St d h zz Over 140 trains per hour through Farringdon. c ee BARBICAN o B

n Cowcross St

S CENTRE zz London journey times reduced by up to 70%. t

l Farringdon d zz 25% of the population of England will be able to reach e Farringdon Eastern ticket hall r Smithfield s Farringdon within 45 minutes. Western ticket hall g Market a lle St t Grevi e

zz Direct links to 3 of London’s major airports Heathrow, Gatwick S t

and Luton. eet Str se u o zz Significant impact on office rents. rh e e rt n a a h L A C g n 2 o L 0

1 A

1 W d l Holb e i e C Chancery Lane orn s hf h t Smit a n c e r Museum y A L 40 of n London London Wall

32 mins 8 mins 4 mins 300M FROM 2 mins Barts Pathology8 mins 10 mins THE GLASSHOUSE Museum

HEATHROW PADDINGTON BOND STREET FARRINGDON LIVERPOOL STREET CANARY WHARF STRATFORD COMMUNICATIONS OLD STREET zz Excellent transport links. Northern zz 5 London Underground Stations within 13 minutes’ walk. Great Northern Trains zz Less than 300 m from the new Crossrail Station at Farringdon. 0.6 miles | 11 mins zz Direct rail services to London Heathrow, Gatwick and Luton airports and St Pancras International (Eurostar)

GLASSHOUSE

0.1 miles 2 mins 0.7 miles | 13 mins 0.7 miles | 13 mins

0.2 miles | 4 mins

CHANCERY LANE BARBICAN FARRINGDON

Central Circle Circle MOORGATE Hammersmith & City Hammersmith & City Metropolitan Metropolitan Circle District Hammersmith & City Metropolitan Thameslink Northern Crossrail Great Northern Trains DESCRIPTION A FORMER TELEPHONE EXCHANGE COMPREHENSIVELY REFURBISHED IN 2011. zz Well specified, open-plan, Grade A office accommodation. zz 4,436.9 sq m (47,758 sq ft) NIA. zz Arranged over lower ground, ground and 6 upper floors. zz Main entrance located on Glasshouse Yard. zz Impressive double height glazed frontage. zz Modern, spacious reception complete with Italian Basalt flooring. zz Excellent natural light throughout. zz External roof terraces. REFURBISHED MODERN OFFICE BUILDING MODERN OPEN-PLAN OFFICES PERFECTLY SUITED TO LOCAL OCCUPIER DEMAND STRIKING OUTDOOR TERRACES OFFICE SPECIFICATION:

zz Underfloor fan coil air conditioning. zz Plastered ceilings with LG7 pendant lighting. zz Fully accessible 600mm x 600mm raised flooring from lower ground to 5th floors with a depth of 415mm. zz Perimeter trunking at 6th floor. zz Finished floor to ceiling heights between 2.44 m & 3.24 m. zz Floor to ceiling windows. zz 2 x KONE 10 person/800 kg passenger lifts. zz Dedicated male & female washroom facilities. zz DDA Compliant washroom facilities on every floor. zz 6 x basement showers. zz Dedicated cycle storage. FLEXIBLE OFFICE ACCOMMODATION WITH AN ABUNDANCE OF NATURAL LIGHT ACCOMMODATION

The building has been measured in accordance with the RICS Property Measurement, 1st Edition May 2015 (incorporating IPMS) and provides the following floor areas:

IPMS 3 NIA FLOOR USE SQ M SQ FT SQ M SQ FT 6th 217.8 2,344 152.8 1,645 5th 505.2 5,438 390.1 4,199 4th 744.8 8,017 662.9 7,135 3rd Offices 808.6 8,704 708.5 7,626 2nd 861.1 9,269 816.5 8,789 1st 772.7 8,317 760.1 8,182 590.0 6,351 577.5 6,216 Ground Reception 69.3 746 67.0 721 Lower Offices 316.3 3405 301.5 3,245 Ground TOTAL 4,885.8 52,590 4,436.9 47,758 FLOOR PLANS FLOOR PLANS FLOOR PLANS

FLOOR PLANS GLASSHOUSE Y GLASSHOUSE Y GLASSHOUSE Y ARD ARD ARD

LOWER GROND FLOOR FIRST FLOOR 301.5 Sq m 3,245 Sq ft FIRST760.1 SqFL OORm 8,182 Sq ft Lettable Area 760.1Lettable Sq m Area 8,182 Sq ft Core GLASSHOUSE YARD LCoreettable Area GLASSHOUSE YARD Core GLASSHOUSE YARD GLASSHOUSE Y GLASSHOUSE Y GLASSHOUSE Y ARD ARD ARD

SECOND FLOOR GROND FLOOR SECOND816.5 Sq mFL OOR 8,789 Sq ft 644.6 Sq m 6,938 Sq ft 816.5Lettable Sq m Area 8,789 Sq ft Lettable Area LCoreettable Area GLASSHOUSE YARD Core GLASSHOUSE YARD Core GLASSHOUSE YARD

Illustrations for indicative purposes only. FLOOR PLANS FLOOR PLANS

FLOOR PLANS GLASSHOUSE Y GLASSHOUSE Y ARD ARD

THIRD FLOOR FIFTH FLOOR 708.5 Sq m 7,626 Sq ft 390.1 Sq m 4,199 Sq ft GLASSHOUSE YARD Lettable Area Lettable Area Core Core Terrace GLASSHOUSE YARD Terrace

PLANT PLANT GLASSHOUSE Y GLASSHOUSE Y PLANT

PLANT ARD ARD

FORTH FLOOR SITH FLOOR 662.9 Sq m 7,135 Sq ft 152.8 Sq m 1,645 Sq ft GLASSHOUSE YARD GLASSHOUSE YARD Lettable Area Lettable Area Core Core Terrace Terrace

Illustrations for indicative purposes only. E

S Q

U S

C A H R

A New E

R Church

E 3

3 Hawe

8 R

t Chapel

o 3

9 Court

1 13

Chapel

1 2 (private)

East Gate 2

3 4 The Green TENURE PLANNING RU Barts and TLA 10 to 1 ND The London 1 PL AC

9 6 to 9 E MedicineSchool and Dentistry of Queen Mary t

o University of Freehold. Located in the London Borough of

1 2 8 Florin London Islington, the Glasshouse is situated

Welken Wolfson Institute

7 Court

1 o t House C 1

A of Preventive on Glasshouse Yard close to the R

T Charterhouse

PH Medicine

H junction with Goswell Road.

U 1

S Square

I o

A Campus

1 N

7 The property is not Listed and does

t R

o not lie in a Conservation Area. E

5 124

E Bank 1

t 1

1 5 1 4 33 to 134 9

c 131 1 1 29

9b 9 G

Cathedral L A

1 S

25 Lodge S

H 2 O 2 6

12 0 to 9a 3 U 2 1 8

97 20 S

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tat D ion 110 to 14 1 T t 99 15 he o res 15 e H ou 5 t G se o 9 LA 29 C S to 1 to 9 HA 10 SH 30 R J 0 OU Houghton 11 T ohn Tru S to ER ndle Co E Y 1 H urt AR Court 3 O D 3 U 10 1 SE 1 to 1 3 10 B 133 08 2 LD GS 107 9 1 Hotel 4

G 5 William Harvey 26-28 7 to

21 Heart Centre 8

1 EC London,

25b lasshouse 27 YMCA

Barbican

6 GOSWELL ROAD 0

6 a

Cresce r nt House 38 d 14 16 18 20 28 1 3 301 to 353 N 201 to 253 101 to 153

Sports Court

1 1

Games Court L

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Day 4 l

Nursery d

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7 4 LET OFF £38.41 PSF WITH A 45% REVERSION IN APRIL 2022

TENANCY INFORMATION

The Glasshouse is let on 2 co-terminus leases. For rent review purpose the floor areas have been stated as follows:

LOWER GROUND - 4TH FLOOR 5TH & 6TH FLOORS FLOOR USE SQ M SQ FT 6th 160.6 1,729 5th 396.2 4,265 zz 10 year term expiring 01 April 2022. zz 5 year term expiring 01 April 2022. 4th 668.3 7,194 z z 3rd 713.8 7,683 z Passing rent of £1,554,436 pa equating to z Passing rent of £272,445 pa equating to £45.45 psf. Offices £37.40 psf. 2nd 824.1 8,871 zz Lease is subject to a 12 month rent free period to be 1st 748.5 8,057 zz Passing rent was subject to a fixed maximum topped-up by the vendor. Ground 583.9 6,285 uplift at the April 2017 rent review. zz Passing rent was subject to a fixed maximum uplift at Lower Ground 322.9 3,476 the April 2017 lease renewal. TOTAL 4,418.5 47,560 TENANCY SCHEDULE

AREA FLOOR TENANT USE TERM RENT (PA) RENT (£ PSF) ERV (PA) ERV (£ PSF) COMMENTS (SQ FT) • Inside 1954 LTA. 6th 1,729 • Tenant has a 12 month rent free which the vendor will top-up until 01 Apr 2018. 02 Apr 2017 Amazon UK Services Ltd Offices £272,445 £45.45 £374,625 £62.50 • Exterior service charge cap of £21,869.25 pa 01 Apr 2022 (with annual CPI increases). 5th 4,265 • Passing rent was subject to a fixed maximum uplift at the April 2017 lease renewal.

4th 7,194

3rd 7,683 • Inside 1954 LTA. • Exterior service charge cap of £135,089.50 pa 2nd 8,871 02 Apr 2012 (with annual CPI increases). Amazon UK Services Ltd Offices £1,554,436 £37.40 £2,286,130 £55.00 1st 8,057 01 Apr 2022 • Passing rent was subject to a fixed maximum uplift for the April 2017 rent review. Ground 6,285 Lower 3,476 Ground

• Inside 1954 LTA. Lower 20 Sep 2000 EDF Energy Plc Sub-Station - - - - - Ground 19 Sep 2099 • Landlord’s redevelopment break right on no less than 6 months’ written notice.

TOTAL 47,560 £1,826,881 £38.41 £2,660,755 £55.95 SECURELY LET TO A SUBSIDIARY OF AMAZON.COM, INC.

zz Amazon UK Services Ltd (Company No. 03223028) – The table below provides various financial indicators on the tenant. COVENANT a digital media design and engineering hub. zz Wholly owned by Amazon.com, Inc. one of the largest 31-DEC-15 31-DEC-14 31-DEC-13 internet based retailers in the world with an operating Sales Turnover £946,458,000 £679,111,000 £449,118,000 INFORMATION revenue of USD $136 billion (2016) and a market capitalisation of USD $495 billion (August 2016). Pre-tax Profit/ (Loss) £48,510,000 £34,393,000 £17,079,000 zz Amazon UK Services Ltd focuses on the creation of Tangible Net Worth £256,978,000 £193,950,000 £150,009,000 interactive digital services such as Amazon Instant Video, game consoles, smartphones and PCs. zz Dun & Bradstreet - 5 A1. zz Minimum risk of business failure. OCCUPATIONAL MARKET

CLERKENWELL AND FARRINGDON CONTINUE TO WITNESS STRONG RENTAL GROWTH. zz Prime office rents now in excess of £70.00 per sq ft. zz Crossrail arriving in 2018. zz Falling supply. zz Significant tenant demand from the UK TMT sector. zz Modern offices perfectly suited to local occupier demand. zz Local occupiers include Publicis Group, Airbnb and Beats by Dre as well fashion retailers Alexander McQueen, Agent Provocateur and Ben Sherman.

Below we set out details of some recent local leasing transactions:

DATE ADDRESS AREA (SQ FT) TENANT LEASE TERM (YRS) RENT (£ PSF)

Q3 2017 Glasshouse, 26-28 Glasshouse Yard, EC1 47,560 Amazon 4.75 £38.41

Q2 2017 23-28 Charterhouse Square, EC1 6,530 Peakon Ltd - £75.00 Q2 2017 White Collar Factory, 100 City Road, EC1 14,327 Box.com 10 £75.00 Q2 2017 Scriptor Court, 155-157 Farringdon Road, EC1 2,336 Pitney Bowes - £65.00 Q1 2017 23-28 Charterhouse Square, EC1 12,195 Anomaly - £75.00 Q1 2017 80 Clerkenwell Road, EC1 3,035 Breather Products UK Ltd - £70.96 Q1 2017 Sutton Yard, 65 Goswell, EC1 10,050 All Response Media 10 £65.00 Q1 2017 140 Aldersgate Street, EC1 10,726 Newable Ltd 10 £60.00 Q3 2016 Gee Street Studios, 15-27 Gee Street, EC1 5,637 Elmwood Design Ltd 10 £62.50 Q3 2016 90-92 St John Street, EC1 2,919 Merazzi UK 5 £61.66 INVESTMENT MARKET

CLERKENWELL AND FARRINGDON CONTINUE TO EXPERIENCE CONSIDERABLE INVESTMENT DEMAND. zz Robust occupational and investment credentials. zz Prime Capital values in excess of £1,100 per sq ft. zz Severe lack of supply. zz Strong rental growth prospects zz Crossrail arriving in 2018.

Below we set out details of some recent local investment transactions:

CAPITAL DATE ADDRESS AREA TENURE PRICE NIY COMMENTS VALUE

Q3 2017 Glasshouse, 26-28 Glasshouse Yard, EC1 47,560 FH £40,250,000 4.25% £843 Single let to Amazon for 4.75 years off £38.41 psf.

Q3 2017 9-13 St Andrews Street EC4 16,772 FH £21,000,000 3.84% £1,252 Single let for 10 years off £50.86 psf. Q2 2017 Churchill House, 142-146 Old Street, EC1 26,738 FH £26,000,000 4.30% £972 Multi-let offices let off £44.69 psf. Q2 2017 36-38 Hatton Garden, EC1 25,226 FH £28,850,000 4.66% £1,144 Multi-let offices & retail let off £56.84 psf. Q1 2017 White Bear Yard, EC1 21,193 FH £19,000,000 4.90% £897 Multi-let offices let off £47.23 psf. Q1 2017 Gilray House, 146-150 City Road, EC1 11,023 FH £11,000,000 4.56% £998 Single let offices & retail let off £48.53 psf. Q4 2016 78 Cowcross Street, EC1 10,122 FH £9,200,000 - £909 - Q4 2016 54 Hatton Garden, EC1 7,550 FH £7,400,000 4.80% £980 Multi-let offices let off £50.00 psf. Q3 2016 293-295 Old Street, EC1 11,034 FH £11,400,000 - £1,033 Vacant with planning consent for offices & A3. Q2 2016 17-18 Haywards Place, EC1 10,061 FH £10,250,000 3.31% £1,019 Multi-let offices let off £36.73 psf. Q2 2016 2 Pear Tree Court, EC1 14,343 FH £15,550,000 2.77% £1,084 - Q2 2016 8-10 Hatton Garden, EC1 11,630 FH £12,030,000 3.43% £1,034 Multi-let offices & retail let off £38.14 psf. VAT The property is elected for VAT and it is proposed that the sale will be structured as a TOGC.

EPC E (116).

CAPITAL ALLOWANCES No capital allowances are available.

PROPOSAL Price: £40.25 million Net Initial Yield: 4.25% Reversionary Yield: 6.19% Equivalent Yield: 5.75% Capital Value: £843 psf CONTACT For further information or to arrange an inspection, please contact:

Dominic Rowe Nick Steele Peter Ng Direct Line: 020 7529 5706 Direct Line: 020 7529 5709 Direct Line: +65 6733 3212 Email: [email protected] Email: [email protected] Email: [email protected]

Declaration: Michael Elliott for themselves and for the vendors of this property whose agents they are, give notice that: a) the particulars are set out as general outline only for the guidance of intending purchasers and do not constitute, nor constitute part of, an offer or contract; b) all descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchaser should not rely on them as statements or representations of fact but should satisfy themselves by inspection or otherwise as to the correctness of each of them; c) no person in the employment of Michael Elliott has any authority to make or give any representations or warranty whatever in relation to this property. September 2017.