Prime Islington Freehold Mixed-Use Investment Opportunity

PRIME ISLINGTON FREEHOLD MIXED-USE INVESTMENT OPPORTUNITY

1 islington high street London N1 9TR

INVESTMENT SUMMARY • Prominent freehold corner building • Multi-let to five tenants producing a total income of £463,684 per annum exclusive • Prime location opposite Angel underground station • Reversionary average overall office rent of £42.00 per sq ft • Attractive Grade II listed, mixed-use office and A2 retail building • Average weighted term of 5.83 years to expiry and a term certain of 5.33 years • 11,483 sq ft (1,066.6 sq m) arranged over basement, ground and five upper floors • Secure, reversionary A2 retail unit currently let off a low Zone A rate of £117.4 per sq ft • Comprehensively refurbished in 2013 including new air conditioning

INVESTMENT RATIONALE • Attractive freehold • Excellent opportunity for active management and value enhancement • Offices recently refurbished to a very high standard • Potential change of use of the A2 retail unit to A3/A4 use, subject to planning • Well let double fronted A2 retail unit on prominent corner location • Potential change of use to residential, subject to planning • Both the A2 retail unit and the offices are reversionary • Equidistant between Kings Cross St.Pancras and Old Street Roundabout

We are seeking offers in excess of £8,500,000 (Eight Million, Five Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects anet initial yield of 5.16%, a reversionary yield of 6.42%, adopting our Estimated Rental Value of £577,765 per annum, and a capital value of £740 per sq ft after allowing for standard aquisition costs of 5.8%. Location Islington is an exciting and affluent North The area is served by a comprehensive London suburb located approximately 2 miles transport network, which offers flexible and to the north of the City. regular travel into Central London and beyond. London Underground services are provided Islington is renowned as a haven for at Angel Station (Northern Line) and Highbury shoppers, diners and theatre goers attracting & Islington (Victoria Line). Kings Cross visitors from all over London. The area houses St. Pancras Eurostar terminal and London a diverse range of fashion and lifestyle Euston mainline stations are within a short boutiques, as well as numerous bars and distance to the north west. In addition there restaurants. Islington boasts eleven theatres, are numerous bus services to Central two cinemas, several art galleries and lively London and surrounding areas. street markets. The Business Design Centre is also in close proximity hosting some 80 The main arterial roads into Central London exhibitions and 250 conferences every year are accessed via the A1 (Upper Street). which attracts over half a million visitors. These transport links provide easy access to the following key central destinations:

Kings Cross, St. Pancras International: 3 minutes Old Street, Farringdon and Shoreditch: 4 minutes Bank and the City: 7 minutes Oxford Circus and the West End: 10 minutes 8

Situation The property occupies a prominent position The location has been greatly improved at the corner of Islington High Street and following the comprehensive refurbishments Pentonville Road, opposite the entrance to of both The Angel Building and 10 – 4 Angel Underground Station. Pentonville Road which has increased the retail footfall as well as the public realm. The proposed refurbishment/redevelopment of Angel Court will further enhance the immediate area.

6 7

HIGHBURY & ISLINGTON

5 11 1 9 13 12 10 9 2 LIVERPOOL RD UPPER ST 3 14 6 7 CHAPEL MARKET

BARON ST

4 4 3 WHITE LION ST

ANGEL

2 ISLINGTON HIGH STREET EUSTON KINGS CROSS ST. PANCRAS 1 8 5 8 EUROSTAR 15 11 PENTONVILLE ROAD 9 6 4 7 6 1 PENTONVILLE ROAD 10 5

ANGEL BUILDING 11 OLD ST 8 2 ST. JOHN ST CITY RD 4 5 PENTOVILLE RISE

GOSWELL ROAD

Kings Cross 15 min walk 0.8 miles WAKELEY ST

Old St 17 min walk 0.9 miles FARRINGDON Farringdon St 19 min walk 1.0 miles 7 Highbury and Islington 22 min walk 1.1 miles 3 Euston 26 min walk 1.3 miles

ROSEBERRY AVENUE 1

Companies Restaurants/Bars Local points of interest 3

1 North One Television Ltd 1 Jamie’s Italian 1 Business Design Centre 13 Waitrose 2 2 Elite Models 2 Busaba Eathai 2 02 Academy Islington 14 Marks and Spencer 3 Trace Solutions 3 Pret A Manger 3 Islington Farmers Market 15 Jurys Inn 4 RBS 4 Bill’s 4 The Lexington 5 Ticketmaster 5 Frederick’s 5 Virgin Active Gym 6 Sage 6 Byron 6 Toni & Guy 7 Cancer Research UK 7 Hundred Crows Rising 7 Sadlers Wells Theatre 8 National Association of 8 The Charles Lamb 8 Crafts Council Citizens Advice Bureaux 9 Thai Square 9 Chapel Market 9 National Autistic Society 10 Starbucks 10 N1 Centre Kings Cross Angel Pentonville Islington Angel Angel Upper N1 Shopping 10 Expedia 11 Hummingbird Bakery 11 Sainsbury’s 1 2 3 4 5 6 7 8 St. Pancras Building Road High Street Court Kings CrossStreet Centre15 min walk 0.8 miles 11 HM Customs and Excise 12 The Hilton, Islington Kings Cross 15 min walk 0.8 miles Old St 17 min walk 0.9 miles Old St 17 min walk 0.9 miles Farringdon St 19 min walk 1.0 miles Farringdon St 19 min walk 1.0 miles Highbury and Islington 22 min walk 1.1 miles Highbury and Islington 22 min walk 1.1 miles Euston 26 min walk 1.3 miles Euston 26 min walk 1.3 miles DESCRIPTION No.1 Islington High Street was originally The office specification includes: built in 1801 and remodelled, in 1903, as The Angel Hotel after the site’s previous • Bespoke re-modelled reception with use as The Angel Inn, one of London’s security and 24 hour access famous coach-houses in the 17th century. • Solid wood floors It now comprises a Grade II listed office/ retail building. The upper parts were • New 2-pipe VRV ducted heating and comprehensively refurbished in 2013 cooling system to provide high quality contemporary office • New plastered ceilings with 30mm void floors with floor plates ranging from for conduit routing and surface mounted 1,347 sq ft (125.1 sq m) to 1,615 sq ft ceiling lights (150.0 sq m). The building also benefits from excellent natural light on account • Perimeter trunking of its prominent corner position. • Refurbished 6 person passenger lift serving ground to 5th floors • Refurbished timber framed windows with new secondary glazing • Average floor to ceiling heights of 2.8m • Excellent natural light • External terrace at 3rd floor level and a balcony at 2nd floor level • WCs on half landings • Shower facilities at basement level

The ground and lower ground floor banking unit benefits from a prominent double frontage to both Islington High Street and Pentonville Road. The unit is currently occupied by Co-operative Bank PLC who have fitted it out in their corporate style. ACCOMMODATION Typical Floor plans The building has been measured in accordance with the RICS Code of Measuring 300mm 200mm 100mm 0mm 100mm 200mm 300mm paper scale @ A1 NOTE: Practice and has the following approximate Any critical dimensions should be checked on site before any construction work is net internal areas: undertaken. Any discrepancies should be reported immediately to Lasermeaured.

  Position of North is approximate.

Legal boundaries should be established by others           Ground Floor       Floor Use Area  Key to abbreviations:

       ffl - finished floor level

2,119 sq ft    f/c - floor to ceiling height   

Sq ft Sq m    f/us - floor to under side   196.9 sq m  

                        rwp - rainwater downpipe    svp - soil vent pipe    Banking Unit      mh - manhole

    bic - built in cupboard       c/c - centre to centre  

Ground A2 2,119 196.9      - ffl     

  ITZA 1,184.25 110.02            - ffl to under side                Lower Ground A2 1,491 138.5     This measured survey has been     independently undertaken and has been Vaults A2 148 13.7 drawn to a level of detail suitable for architectural and lease plan use.

   

         Banking Unit Sub Total 3,758 349.1 

       Offices       ISLINGTON HIGH STREET

    Ground Reception 221 20.5             

1st Floor B1 1,615 150.0 

 100mm paper scale @ A1            2nd Floor B1 1,550 144.0       

  3rd Floor B1 1,477 137.2   4th Floor B1 1,515 140.7

5th Floor B1 1,347 125.1   Pentonville Road Office Sub Total 7,725 717.5

  Total 11,483 1,066.6 Second Floor 0 4321 5 10m 1,550 sq ft 144.0 sq m 0mm

             

                          

              ISLINGTON HIGH STREET        100mm

       ©        LASERMEASURED     ARCHITECTURAL   MEASURED SURVEYS  

   49 RICHMOND HILL ph: 020 89481055  RICHMOND mb: 079 06068518      Pentonville Road SURREY [email protected]   TW10 6RE www.lasermeasured.co.uk          client     Vallonia Springs Ltd  Homeview Properties Ltd, 435-437 Edgware Rd

     London, W2 1TH      project

  

   1 Islington High Street   London

    N1  

  drawing title   Measured Floor Plans Basement to First Floors

N date scale dwn.   2 March 2011 1:100@A1 MS  drawing number sheet no. rev.  11118-01-01 1 of 3 - tenancies Covenant information The property is multi-let to five tenants, in accordance with the following tenancy schedule, and produces a total current income Co-operative bank of £463,684 per annum. All the upper floor The Co-operative Bank PLC is a commercial bank leases are outside the security of tenure and trading in the United Kingdom and Guernsey, with compensation provisions of the Landlord and headquarters in Manchester. It is an ethical bank and Tenant Act 1954, as amended: refuses to invest in companies involved with the arms trade, global climate change and genetic engineering as stated in its unique Ethical Policy. Further information can be found at www.co-operativebank.co.uk Tenant Floor Area Lease Start Rent Reviews Lease Expiry Rent £pa ERV £pa L&T Act 1954 Comments Sq ft (£psf) (£psf) SE10 LLP 5th 1,347 22/01/2014 - 21/01/2019 £53,400 £63,982 Outside Tenants only break upon 6 (£39.64) (£47.50) months prior written notice on 21/01/2017. 4 months rent free if break not exercised. Elite Model Management London Ltd Service charge cap equivalent Founded in Paris in 1972 and manages over 2000 to £7.92 psf models from 5 continents. Elite London opened in Aconex (UK) Ltd 4th 1,515 03/04/2014 - 02/04/2019 £64,500 £71,962 Outside 2008. Rent deposit of £40,736. Guarantee from SMS (£42.57) (£47.50) Finance SA, the ultimate group parent company. Further information can be found at www.elitemodellondon.co.uk Smyle Creative Ltd 3rd 1,477 28/05/2014 - 27/05/2019 £62.773 £70,157 Outside Tenants only break upon 6 (£42.50) (£47.50) months prior written notice on 27/05/2017. 2 months rent free if break not exercised. Service charge cap equivalent to £10.00 psf Elite Model 2nd 1,550 12/12/2013 - 11/12/2018 £65,874 £73,625 Outside Smyle Creative Ltd Management (£42.50) (£47.50) Smyle develops creative, brand focussed life and London Ltd digital events. Rent deposit of £31,386.25. Further information can be found at www.smyle.co.uk Elite Model 1st 1,615 12/12/2013 - 11/12/2018 £68,638 £76,713 Outside Management (£42.50) (£47.50) London Ltd Reception Ground 221 ------

B1 Sub Total 7,725 £315,184 £356,439 Aconex (UK) Ltd Co-operative Ground 2,119 16/12/2008 29/09/2016 28/09/2023 £148,500 £221,326 Inside 6 months rent free period Aconex is a privately held Australian company providing Bank PLC LG 1,491 29/09/2021 (£117.41 ZA) (£175 ZA) equivalent to £74,250 +VAT mobile and web-based collaboration technologies for Vaults 148 commences from projects of information and process management to ITZA 1,184.25 from 28/9/15 - 24/3/16 clients in the construction, infrastructure, power, mining and oil and gas sectors. Rent deposit of £116,100. A2 Sub Total 3,758 £148,500 £221,326 Guarantee from Aconex Ltd in Australia, the ultimate group parent company. Further information can be TOTAL 11,483 £463,684 £577,765 found at www.aconex.com.

SE10 LLP SE10 provide public relations and other writing-related services for its clients from speech writing to strategy and newsletters and news conferences. Rent deposit of £18,690. Further information can be found at www.se10.com Islington High Street

U P E I G P P - R S P

S L E V P E A P Y D G D N 2 D A D L E R J L E A R 2 S /W E R M P T R C O & R R - T W /W E L H D U S O 4 2 A S R T O U G & L S

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This Plan includes the following Licensed Data: OS MasterMap Black and White PDF Site Plan by the Ordnance Survey National Geographic Database and 0m 20m 40m 60m 80m 100m incorporating surveyed revision available at the date of production. Reproduction in whole or in part is prohibited without the prior permission of Ordnance Survey. The representation of a road, track or path is no evidence of Scale: 1:1250, paper size: A4 a right of way. The representation of features, as lines is no evidence of a property boundary. © Crown copyright and database rights, 2014. Ordnance Survery 0100031673

Prepared by: Simon Hall, 18-09-2014 Office Occupational Market INVESTMENT Market The office market in Islington has benefitted The majority of office requirements now Improving transport links together with the from the resurgent TMT sector, which has include Clerkenwell, Shoreditch, Old Street or diverse local amenities and comparatively low been particularly active over the last 2–3 Angel and rents have been steadily increasing: occupational costs, compared to similar areas years. Office rents have remained buoyant of London, Islington has proved popular with as a result of the diverse occupier base, lively tenants and investors alike resulting in significant retailing and leisure scene and its excellent increases in demand and capital values. communications to the rest of Central London.

Address Date Area (Sq ft) Sale Price NIY Price (£psf) Address Tenant Date Area (Sq ft) Rent (£psf) 26–27 Great Sutton Street Frank Reynolds Architects Q3 2014 1,547 £48.00 Islington Portfolio On Market 20,552 £18 million - Quoting 4.45% £875 Suncourt House, Net Media Planet Q3 2014 4,003 £43.00 186 City Road Q3 2014 38,300 £23.3 million 4.09% £608 18–26 Essex Road 1 Islington Green Q3 2014 4,694 £3.16 million 3.95% £694 1 Olivers Yard Orms Architects Q3 2014 6,500 £50.00 91 Goswell Road Q3 2014 17,117 £13.85 million 4.52% £809 91–93 Farringdon Road MMT Digital Q2 2014 2,223 £50.00 59 Upper St Q2 2014 5,081 £4.410 million 4.16% £868 17–18 Haywards Place Kinosis Q1 2014 2,180 £50.46 154 Clerkenwell Road Q3 2013 13,635 £10.3 million 4.13% £755 3–4 Hardwick Street VE Interactive Q4 2013 12,015 £45.00 2 Peartree Court Q3 2013 14,343 £9.850 million 4.85% £686 8–9 Upper St Q1 2013 4,087 £3.900 million 4.85% £954

The accuracy of the information in the above tables have been sourced from third parties and are subject to verification.

Retail Occupational Market Islington provides over 700,000 sq ft of Angel continues as a true mixed-use location, retail, restaurant and bars, centred around with its reputation as a haven for shopping Upper Street, Liverpool Road and the N1 and fine dining. The high footfall and exciting Shopping Centre. Not only does it attract the range of retailers has meant that demand for main retailers such as H&M, Superdry, Gap, prominent units in Angel is substantial and Marks & Spencer and Next, Camden Passage rents have been increasing accordingly. Prime is home to one of London’s best known Zone A rents at the intersection of Upper antiques market. Street and Liverpool Road range between £215 and £245 whilst further north on Upper Street and Islington High Street they are in the region of £160 and £180.

Address Tenant Date Area (Sq ft) Rent 162 Upper Street The Tool Shop Q3 2014 1,240 £61.25 psf with A/2 on basement 42 Upper Street Flight Centre Q2 2014 1,193 £165.00 psf ITZA 160–161 Upper Street Post Office Q2 2014 2,863 £50.44 psf overall with A/2 on basement 159 Upper Street Topps Tiles Q1 2014 1,461 £55.88 psf overall with A/2 on basement 71 Upper Street Five Guys Q3 2013 2,323 £169.00 psf ITZA 40 Upper Street Phones 4 U Q2 2013 2,872 £180.00 psf ITZA 68–69 Upper Street Wahaca Q1 2013 4,861 £48.76 psf overall with A/2 on basement and first floor VAT

The property is elected for VAT purposes. It is anticipated that the sale will be treated as a Transfer Of a Going Concern.

Capital Allowances Capital allowances can be made available by way of separate negotiation.

Proposal

We are instructed to seek offers in excess of £8,500,000 (Eight Million, Five Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 5.16%, a reversionary yield of 6.42%, adopting our Estimated Rental Value of £577,765 per annum, and a capital value of £740 per sq ft after allowing for standard aquisition costs of 5.8%.

FURTHER INFORMATION Further information is available at www.no1angel.co.uk. This includes:

• Freehold Title • Occupational leases • Floor plans • Service charge information • EPC certificates • Building specification • Asbestos and fire risk reports

Should you wish to access the password controlled data site or arrange an inspection, please contact:

Burlington Partners Hanover Green Hamilton Investment Properties David Silver Simon Hall Edward Offenbach George Collins Sackville House 11–12 Dover Street 45 Maddox Street 40 Piccadilly London, W1S 4LJ London, W1S 2PE London, W1J 0DR T: 020 7183 7772 T: 020 7183 5547 T: 020 3130 6400 DDI: 020 7183 7778 DDI: 020 7183 5549/020 7183 5225 DDI: 020 3130 6403 M: 07768 998 333 M: 07881 631674/07872 605362 M: 07715 323553 [email protected] [email protected] [email protected] [email protected]

IMPORTANT NOTICE Hanover Green, Burlington Partners and Hamilton Investment Properties gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a 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 condition or otherwise nor that any services or facilities are in good working order. 4 The photographs appearing in this brochure show only certain parts and aspects 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. Furthermore 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 any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. October 2014. Q2910

Design: Shaw+Skerm