Freehold Refurbishment and Development Opportunity

London N1 INVESTMENT SUMMARY

— is one of ’s most sought after locations and is a favoured destination for companies in the creative, technology and fashion industries.

— Situated in a prominent position in the heart of Tech City on the corner of East Road and Vestry Street immediately to the north of and .

— Attractive former Victorian warehouse, comprising media style office accommodation and five apartments, arranged over lower ground, ground and three upper floors totalling 15,039 sq ft (1,397.2 sq m).

— Multi-let on eight commercial leases and five assured shorthold tenancy agreements.

— Current rent of £531,469 per annum which equates to a low average rent of £35.34 per sq ft.

— Planning permission obtained for additional fourth and fifth floors of office accommodation totalling 5,070 sq ft (471.0 sq m) of net internal floor area with a roof terrace.

— Freehold.

— The vendor is seeking offers in excess of £11,000,000 (Eleven Million Pounds) subject to contract, for the benefit of their freehold interest. A purchase at this level would reflect a net initial yield of 4.52% after allowing for purchasers costs of 6.8% and a low capital value of £731 per sq ft.

2 Liverpool Street Moorgate Old Street Farringdon Station Station Station Old Street White Collar Station Smithfield The City Roundabout Factory The Bower Market

3 LOCATION

The property is located to the north of which together with the surrounding area has become synonymous with technology companies and web businesses leading to it becoming known as Silicon Roundabout, in a reference to America’s . In recent years, many technology companies have moved to the area and local occupiers now include Turner Broadcasting, Stripe, CBS Interactive, Farfetch, , Dopplr, Last.fm, Banksthomas, Glue Isobar, TweetDeck, livemusic.fm and McDonalds.

Complementing the vibrant office market is the excellent retail and leisure amenity which has transformed over the last ten years. Whitecross Street market, a short walk SILICON ROUNDABOUT from the property, has developed to become London’s premier daily food market providing office workers with an unparalleled choice of cuisines. New restaurants are The Silicon roundabout area is an integral part of the opening regularly adding to some firm London favourites, wider ‘technology hub’, which including Ceviche, Enoteca Da Luca, Bone Daddies, stretches from Old Street to the Queen Elizabeth Olympic Cecconis, Honest Burger, Shoreditch Grind, M by Montcalm, Park in Stratford. Cisco, , Google and are Ace Hotel and The Nobu Hotel which are all well amongst the companies that have committed to invest established in the area. in the ‘hub’ with , and University College London also agreeing to be academic partners. This initiative has meant there has been rapid growth in the number of high-tech companies locating to the area in the last five years.

Old Street roundabout is undergoing a £25 million public realm overhaul. The improvements will dramatically transform this ‘gateway’ to Tech City, creating a much improved environment, for cyclists and pedestrians using the junction in particular, making it far easier to access the local area. The works include the creation of new public space on the peninsula, new cycle lanes on all arms, new cycle-only signals, new surface level pedestrian crossings, widened bus lane, new cycle parking and hire facilities and a new entrance to the underground station accessible from the new peninsula.

4 5

LOCAL AMENITIES

Ci Go ty Rd sw . East Rd ell Rd. Shor edit

EATING & DRINKING BUSINESSES .

ch High St. City Rd t. S 1. Ace Hotel 19. Google Campus y . r

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2. Floripa 20. R/GA Ve

Hoxton

30 Square 3. Look Mum No Hands 21. Vice Magazine Go 8

s 32 we 10 9 7 4. Ozone Coffee 22. Moo 31 ll 5 OLD STREET R 11 18

5. Shoreditch Grind 23. Mind Candy Fa d Old St. Old St. . 25 r Gr ri 33 2 28 14 6 6. Tramshed 24. EMC ngdon Rd. 13 e . 26 at St 27 4 24 Ea 15 1 16 ld 35 7. The Breakfast Club 25. Adobe 3 O st er 17 29 n 36 8. Ceviche 26. Capco S Whit t 12 . 9. Honest Burger 27. Stack Exchange City Rd. 23 21

. ec ro SHOREDITCH Rd 20 22 ll HIGH STREET enwe 10. Bone Daddies 28. QuidCo Aldersga Clerk ss St

11. Enoteca Da Luca 29. TechHub 19 . Bishopsgat

12. Whitecross Street Market 30. Totally Money Fa BARBICAN Sqaure te

FARRINGDON rringdon Rd

13. Passo 31. Farfetch St Chiswell St. Smithfield 34 . 14. Blacklock 32. Ebiquity Market e Barbican LIVERPOOL 15. Gloria 33. Centre STREET Moorga

. Finsbury 16. Breddos 34. Monzo Musuem MOORGATE Circus Of London

17. Lantana 35. Brainlabs London Wall te London Wall 18. Serata Hall 36. Mother

COMMUNICATIONS

OLD SHOREDITCH MOORGATE BARBICAN LIVERPOOL FARRINGDON The property benefits from its proximity to Old Street STREET HIGH STREET STREET Underground station providing access to the which is less than a two minute walk away. Barbican, Moorgate and Liverpool Street are all within a 11–17 minute walk providing access to the Circle, Metropolitan, Central, Hammersmith & City lines and, upon its completion, the Elizabeth Line. 3 MINS 11 MINS 14 MINS 16 MINS 17 MINS 20 MINS

All Journey times taken from the building. Source – TfL

5 THE SHOREDITCH ESTATE PRINCIPAL PLACE LOCAL Blossom Street Worship Street A 192,000 sq ft 3 Phase A 600,000 sq ft Foster & DEVELOPMENTS mixed-use development by Partners designed mixed British Land. The development use development by is taking place on a site of Brookfield. , the The area boasts a vibrant mixture of 2 acres and planning has global on-line retailer, commercial, hotel, retail and residential uses been secured for Phase 1. has pre-let 430,000 sq ft and has experienced substantial investment of space. and development activity.

WHITE COLLAR FACTORY THE CURTAIN HOTEL THE STAGE OLD STREET 45 Curtain Road Curtain Road ROUNDABOUT The hotel comprises 120 guest New mixed-use development A 278,000 sq ft office rooms, a rooftop pool and in Shoreditch from Galliard and retail scheme, together lounge and over 6,000 sq ft Homes consisting of 400,00 with 10,000 sq ft of residential of meeting and event space. sq ft of offices, 412 apartments developed by Derwent set within a 37 storey tower, London. leisure space and retail.

SPECTRUM THE BISHOPSGATE SHOREDITCH VILLAGE 150 Old Street GOODSYARD Shoreditch High Street A Great Portland Estates Shoreditch High Street A 150,000 sq ft mixed-use and 160,000 sq ft office, A Hammerson and Ballymore public realm scheme opposite retail and restaurant joint venture – 4.7 hectare site the iconic Tea Building on scheme overlooking providing c. 2,000 residential Shoreditch high Street. Phase private courtyards. units, office accommodation, one is under construction with retail and leisure amenities Phase Two – 50,000 sq ft of and over 1.8 hectares of offices and retail space public realm space. currently in for planning.

THE BOWER 201-207 SHOREDITCH THE ATLAS BUILDING Old Street Roundabout HIGH STREET 145 A new landmark quarter A development by 40 storey mixed-use developed by Helical plc Highgate Holdings will development comprising featuring 320,000 sq ft include a 200-room luxury 302 apartment residential of office, restaurant and hotel and 127,724 sq ft of tower which also benefits retail accommodation. office space arranged over from a generous public realm 30 storeys. space, offices and retail.

6 DESCRIPTION

Attractive former Victorian warehouse, comprising media style office accommodation and five apartments, arranged over lower ground, ground and three upper floors totalling 15,039 sq ft (1,397.2 sq m). The office accommodation benefits from the following specification:

Timber flooring;

Perimeter trunking;

Passenger lift servicing all floors;

Male and female toilet facilities throughout the building;

Excellent floor to ceiling heights;

Superb natural daylight.

ACCOMMODATION

The property provides the following approximate floor areas:

NIA / NSA GIA FLOOR SQ FT SQ M SQ FT SQ M

Third 3,113 289.2 3,956 367.5

Second 3,111 289.0 3,943 366.3

First 3,063 284.6 3,842 356.9

Ground 2,550 236.9 3,770 350.2

Lower Ground 3,202 297.5 4,140 384.6

TOTAL 15,039 1,397.2 19,650 1,825.5

7 EXISTING FLOOR PLANS

THIRD FLOOR SECOND FLOOR FIRST FLOOR 3,113 Sq Ft (289.2 Sq M) NIA / NSA 3,111 Sq Ft (289.0 Sq M) NIA / NSA 3,063 Sq Ft (284.6 Sq M) NIA / NSA

East Road East Road East Road

Vestry Street Vestry Street Vestry Street

GROUND FLOOR LOWER GROUND FLOOR 2,550 Sq Ft (236.9 Sq M) NIA / NSA 3,202 Sq Ft (297.5 Sq M) NIA / NSA

East Road East Road

Vestry Street Vestry Street

N Office Residential For indicative purposes only (not to scale) 8 TENANCY

The property is multi let in accordance with the tenancy schedule on eight commercial leases and five assured shorthold tenancy agreements, providing a total rental income of £531,469 per annum which equates to a low average rent of £35.34 per sq ft. The vendor will provide a 12 month rent, rates, and service charge guarantee on the vacant office accommodation.

All of the leases, except 81-83 East Road let to Mintland Properties Limited, are excluded from the security of tenure and compensation provisions of sections 24-28 of the Landlord and Tenant Act 1954 (as amended). TENURE

Freehold.

9 TENANCY SCHEDULE

RENT PER ANNUM DEMISE TENANT ACCOMMODATION SQ FT SQ M LEASE DETAILS ERV (£PSF) COMMENTS (£PSF)

Highrise Marketing From: 01/04/2019 £30,000 £68,835 Mutual break option on 01/12/2019 subject to 3 months 75-79 East Road Third Floor (Part Left) - Offices 1,059 98.4 2 years Limited To : 31/03/2021 (£28.33) (£65.00) notice and rolling thereafter.

From: 26/04/2017 £49,000 £63,960 75-79 East Road Vopulus Limited Third Floor (Right) - Offices 984 91.4 3 years Tenant has expressed an interest to extend their lease. To : 25/04/2020 (£49.80) (£65.00)

From: £12,320 £14,560 The vendor will provide an 12 month rent, rates and 75-79 East Road Vacant Third Floor (Part Left) - Offices 224 20.8 1 year Completion To : (£55.00) (£65.00) service charge guarantee.

Mutual break option on 01/09/2020 subject to 3 months From: 30/09/2018 £88,720 £141,688 75-79 East Road Individual Second Floor - Offices 2,267 210.6 2 years notice and rolling thereafter. Tenant has expressed an To : 29/09/2020 (£39.14) (£62.50) interest to extend their lease.

From: 22/11/2019 £31,200 £59,438 Mutual break option on 15/01/2021 subject to 3 months 75-79 East Road Individual First Floor (Right) - Offices 951 88.4 3 years To : 21/11/2022 (£32.81) (£62.50) notice and rolling thereafter.

From: £68,985 £82,125 The vendor will provide an 12 month rent, rates and 75-79 East Road Vacant First Floor (Left) - Offices 1,314 122.1 1 year Completion To : (£52.50) (£62.50) service charge guarantee.

Ground Floor - Offices 903 83.9 Yes Engineering From: 13/08/2015 £85,974 £114,675 75 East Road Lower Ground Floor - Offices 1,182 109.8 5 years Tenant has expressed an interest to extend their lease. Group Limited To : 12/08/2020 (£41.23) (£55.00) Sub Total 2,085 193.7 Mutual break option on 15/03/2020 subject to 3 months Blue Mount (UK) From: 16/03/2018 £35,000 £41,400 79 East Road Ground Floor - Offices 690 64.1 3 years notice and rolling thereafter. Tenant has exercised the Limited To : 15/03/2021 (£50.72) (£60.00) break option, lease expires on 15/03/2020.

£9,880 From: 22/01/2020 £9,880 30a Vestry Street Individual Ground Floor - Studio Apartment 296 27.5 6 months (£33.38) AST To : 21/07/2020 (£823.33 pcm) (£823.33 pcm)

From: 07/07/2 0 1 7 £3,000 £9,718 77-79 East Road Vopulus Limited Lower Ground Floor - Offices 299 27.8 2.75 years Tenant has expressed an interest to extend their lease. To : 25/04/2020 (£10.03) (£32.50)

£11,440 Lower Ground Floor - Studio From: 20/01/2020 £11,440 77-79 East Road Individual 774 71.9 6 months (£14.78) AST Rent deposit of £1,100 Apartment To : 19/07/2020 (£953.33 pcm) (£953.33 pcm) £15,430 From: 29/12/2019 £15,960 30 Vestry Street Individual Third Floor - Studio Apartment 846 78.6 6 months (£18.24) AST Rent deposit of £1,620 To : 28/06/2020 (£1,330.00 pcm) (£1,285.83 pcm) £14,560 From: 01/02/2019 £15,960 30 Vestry Street Individual Second Floor - Studio Apartment 844 78.4 6 months (£17.25) AST Rent deposit of £1,620 To : 31/07/2019 (£1,330.00 pcm) (£1,213.33 pcm) £15,960 From: 18/01/2020 £15,960 30 Vestry Street Individual First Floor - Studio Apartment 798 74.1 1 year (£20.00) AST Rent deposit of £1,500 To : 17/01/2021 (£1,330.00 pcm) (£1,330.00 pcm)

Ground Floor - Retail 661 61.4 From: 25/03/2015 Mintland Properties £60,000 £88,440 81-83 East Road Lower Ground Floor - Retail 947 88.0 12 years To : 24/03/2027 Limited (£37.31) (£55.00) Sub Total 1,608 149.4 R/R: 20/04/2023

£531,469 £754,037 TOTALS 15,039 1,397.2 (£35.34) (£50.14)

10 DEVELOPMENT POTENTIAL

The property currently benefits from detailed planning permission dated 29th April 2019 (Ref: 2019/0595) for the following:

- Erection of a part one, part two storey roof extension, for office use, and roof terrace providing 5,070 sq ft (471 sq m) of net internal floor area;

- Change of use of 3 x residential dwellings (use class C3) to offices (use class B1) at first, second and third floors;

- Internal reconfiguration;

- Associated provision of cycle parking, waste storage and plant at basement and roof level

In addition to the above, the vendor obtained planning permission on 3rd June 2016 (Ref: 2015/4106) for a two storey roof extension to provide six flats (3x1 bed, 1x2 bed and 2x3 bed), including a communal garden providing 4,940 sq ft (459.0 sq m) of net saleable floor area.

Old Street has an established and thriving residential market, which has flourished in recent years. There is a strong demand from both owner occupiers and investors for good quality residential in the location and the draw of the restaurants, shops and excellent transport links appeal to young professionals. Capital growth in the area has been strong with top values reaching in excess of £1,200 per sq ft.

11 PROPOSED FLOOR PLANS

FOURTH FLOOR FIFTH FLOOR 3,186 Sq Ft (296.0 Sq M) NIA 1,884 Sq Ft (175.0 Sq M) NIA East Road East Road East

Vestry Street Vestry Street

N

For indicative purposes only (not to scale) 12 CITY FRINGE OFFICE MARKET

Old Street is now considered the centre for all The submarket has been radically transformed in recent emerging technical, media and creative agencies. years due to the delivery of new office stock within flagship These businesses vary in size and range from mixed use schemes by leading developers Great Portland start-ups through to larger global companies. Estates, Derwent London and Helical Bar primarily at Prime City fringe office rents are currently Spectrum, White Collar Factory and The Bower. These schemes have acted as a catalyst for change in a submarket in the excess of £80 per sq ft. which now boasts some of Tech City’s best quality office space and supporting residential and leisure amenity.

RENTAL COMPARABLES

Address Date Area (sq ft) Rent (£psf)

Bower Building – 207–211 Old Street, EC1 Q4 2019 11,306 £82.00 Spectrum, 160 Old Street, EC1 Q2 2019 5,512 £72.50

Chapter House,1 Cranwood Street, EC1 Q2 2019 7,449 £67.50

34–38 Provost Street, N1 Q2 2019 11,223 £60.50

INVESTMENT COMPARABLES

Address Date Area (sq ft) AWULT Date Price Net Initial Yield Cap Val psf

24/25 Britton Street, EC1 Kurt Geiger Limited 51,502 15 years Q4 2019 £64,500,000 4.07% £1,252 34–38 Provost Street, N1 Meira GTx UK II 11,223 5 years Q4 2019 £13,500,000 4.71% £1,203

7–9 Woodbridge Street, EC1 ETCH (UK) Limited 3,145 1.8 years Q4 2019 £4,250,000 4.42% £1,351

Vestry Street Studios, Multi Let 22,562 1.5 years Q3 2019 £19,250,000 5.01% £853 10–19 Vestry Street & 65–69 East Road, N1

99 Clifton Street, EC2 R/GA Media Group Limited 45,255 8.8 years Q3 2019 £58,900,000 4.50% £1,302 13 SERVICE CHARGE PROPOSAL The service charge runs from 1st April to 31st March. The The vendor is seeking offers in excess of £11,000,000 budget for 2019/2020 is £47,576 (£4.35 per sq ft) exclusive (Eleven Million Pounds) subject to contract, for the of VAT. Further details are available within the data room. benefit of their freehold interest. A purchase at this level would reflect a net initial yield of 4.52% after allowing for purchasers costs of 6.8% and a low capital value of £731 per sq ft. Nile Street CAPITAL ALLOWANCES There are no capital allowances available. Provost Haberdasher Street EPC Street

Vestry Street EPCs have been commissioned and are available within VALUE ADDED TAX the data room. The property is not elected for VAT. East Road FURTHER INFORMATION INVESTMENT RATIONALE For further information please do not hesitate to contact: Chart Street - Attractive former Victorian warehouse; - Unprecedented tenant demand for the location;

- Limited available office supply; RYAN SPRINGER GEORGE COLLINS - Low average passing rent of £35.34 per sq ft; [email protected] [email protected] - Grade A office rents around Old Street and Shoreditch 020 3667 5050 0787 260 5362 are now in excess of £80.00 per sq ft; 07932 792 531

- Opportunity to change the use of the 3 apartments at ALEXIS NICOLAS first, second and third floors to offices; [email protected] - Opportunity to create 5,070 sq ft (471.0 sq m) of 020 3667 5050 additional office accommodation by developing the 07932 708 881 consented fourth and fifth floors; - Low capital value per sq ft GC REAL ESTATE www.gcrealestate.co.uk

www.springernicolas.co.uk

MISREPRESENTATION ACT 1967 Messrs Springer Nicolas and GC Real Estate for themselves and for the vendors or lessors of this property for whom they act, give notice that: (i) these particulars are a general outline only, for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract; (ii) Messrs Springer Nicolas and GC Real Estate cannot guarantee the accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation, and other details contained herein, and prospective purchasers or tenants must not rely on them as statements of fact or representations, and must satisfy themselves as to their accuracy; (iii) no employee of Messrs Springer Nicolas and GC Real Estate has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property; (iv) rents, prices, premiums and service charge quoted in these particulars may be subject to VAT in addition; and (v) Messrs Springer Nicolas and GC Real Estate will not be liable, in negligence or otherwise, for any loss arising from the use of these particulars. (vi) the reference to any plant, machinery, equipment, services, fixtures or fittings at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective purchasers/tenants should satisfy themselves as to the fitness of such items for their requirements.

Designed by Cre8te.

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