7-8 Wakley Street

328 City Road

Islington EC1

A Freehold Mixed Use Development Opportunity In The Heart Of

- 01 - Executive Summary

An opportunity to acquire and develop a freehold site within the heart of Islington, which will be of significant interest to This is an opportunity to purchase and de- developers, investors and owner occupiers. velopment a freehold site within the heart of Islington. We believe this opportunity will be of significant interest to developers, investors and owner occupiers. - Existing freehold B1 office building with a gross internal floor area of 22,364 sq. ft. on a site extending to 0.4 acres.

- Planning permission granted for new build mixed use scheme which comprises 26 residential units (22 private, 4 affordable) with 18,383 sq. ft. of B1 offices. The total consented area is 48,966 sq. ft. (GIA).

- The property is currently let to National Children’s Bureau at nil rent on a lease to expire in April 2018.

- Pending application for a scheme to refurbish and extend the existing building to provide 38,801 sq. ft. GIA of B1 space and 8,253 sq. ft. of residential space across 9 units.

- Offers in excess of £11,750,000 which reflects a low capital value of £525.39 / sq. ft. on the existing GIA and £239 / sq. ft. on the consented scheme.

- The property is VAT elected and therefore will be applicable to the purchase price.

- Subject to contract.

Wakley Street Facade

- 01 - Location

Old Street 7-8 Angel Barbican Farringdon

11 mins walk 328 5 mins walk 9 mins 16 mins

- 02 - Location Ba Liverpool Roa d rnsbury Road N n ew Nor ee Gr n o th ingt Roa Location O2 Isl d Academy d Granary Caledonian Roa Islington t S

Square r 7-8 Wakley Street & 328 City Road occupy a site of e p Angel p York approximately 0.16 hectares (0.40 acres) located Central U

W Camden in the heart of Islington. ay Passage

The immediate vicinity provides a diverse mix of Penton d Pancras a S

bars, shops and restaurants which make Angel Ro tree Square n a i Ea

t one of Central London’s most exciting locations on s Wh t P d Ro a e nc l Kings Cross ar a

r Ca to live, work and socialise. Local amenities include a d Angel f s R Ro W S o a ad e he KINGSL HO Sadler’s Wells Theatre, O2 Academy Islington, d n PITFIELD p oad l ille R o ntonv h Pe c XTON erde Goswell k et Almeida Theatre, Screen On The Green, Islington R tre o e S il AND RO ss N a

t S City ST d W St Pancras S R Central, Camden Passage retail as well as R o TREE oa y a REET d a P d le lk k r Kings Cross o

Am

vo AD Islington Business Design Centre. TC St Pancras Wa st t w d e a d S el e o oa t r R l r t R City R e S n St to C et

City Road to the east of the site provides a re oa ry us e d t ckney E nt a King’s e Gr Sadler’s Wells es H t ra V S

7-8 ay principal arterial route towards the l HOXTON Theatre t C . S ’ SQUARE SW s Inn Ro J t r oh o re s e ANFIELD n e via roundabout. Farringdon and King’s s R t nu S o a tr 328 ve a d ee A B Cross are also directly accessed via St John Street d y t

er at b Old Street et ARNOLD ST h Stre d RIVINGTON BO and to the immediate south. l CIRCUS REET S O t

r UR e Rose SHOREDIT ee UN

Plac ck t TA

o DA vist Old Street Rivington St

IN R Ta Roundabout Gr RY OLD NICHOL STREET

t e

S at E

k D c Fa twi CH HIGH as a B s t REDCHURCH ST rr Exmouth tree te in ld S rn Connectivity O gdon Roa S Market t

TEA

BUILDING Russell Square

t Bunhill Ro e Ci e W tr d

S Gr n ty e h BRIC

i Angel 5 mins walk re

ilford ay t Ro u G ec BOX PARK G l St John’s G Whitecross

’ ad s r K o In nwel oss Market SHOREDITCH e Square l d L n rk w

AN e oad en HIGH STREET R Cl l R St Old Street 11 mins walk o el L w r

E ad ken ee Cler a n t e

Finsbury S

OLD TRUMAN King’s Cross St Pancras 11 mins outh Square F BREWERY a Barbican Chiswell Street SUN STREET

a r

Bish r m Charterhouse Comm ingd t pt tree o Farringdon Square h S ec o Euston 13 mins n Be o p R n sg ow ad t o Ro ree

at R St ercial alds se a heob ou e e OLD SPITALFIELDS T d h an er L MARKET Bank 15 mins rt ng ha o S C L tr Moorgate e et

ield Farringdon 16 mins thf mi Holborn t S es W LIVERPOOL

London Wall Liverpool Street 17 mins STREET olborn High H Chancery LON Lane F D a H ON r olb WA Highbury & Islington 18 mins r o r LL i n ng Via duct K d ingswa on

S tree

y All journey times taken from the building. Source: TFL t

Che ap side reet Fleet St

- 03 - Lifestyle

- 04 - Accommodation

Accommodation Existing Floor Plans The existing office building extends to Lower Ground Wakley Street approximately 22,364 sq. ft. (GIA). 7-8 Wakley Ground Floor Street is arranged over Ground to 2nd floor, Floor and 328 City Road is arranged over Ground to 4th floor. City Road

7-8 Wakley Street

NIA sq. ft. GIA sq. ft. 2nd Floor 1,489 1,683 1st Floor 1,510 1,687 Ground Floor 601 1,028

Total 3,599 4,398 1st Floor Wakley Street 2nd Floor Wakley Street 328 City Road Kitchen

Services

Kitchen NIA sq. ft. GIA sq. ft. 5th Floor 452 698 4th Floor 407 682 City Road 3rd Floor 487 672 City Road 2nd Floor 501 661 1st Floor 484 635 Ground Floor 476 533

Total 2,806 3,880

Central Building

NIA sq. ft. GIA sq. ft. 1st Floor 1,932 2,107 Typical Wakley Street Ground Floor 8,902 11,449 Floor Lower Ground Floor 531 531 (3rd-5th) Total 11,365 14,086

NIA sq. ft. GIA sq. ft. City Road Grand Total 17,770 22,364

N

For indicative purposes only – not to scale.

- 05 - The Building

City Road Facade

- 06 - Approved Scheme

Approved Scheme Planning permission exists under reference P2014/3572/FUL for the demolition of the existing buildings and the construction of 26 residential units and 18,383 sq. ft. of offices within a new build scheme.

4 of the units are to be provided for affordable housing. A copy of the Section 106 agreement is available upon request.

Average Type Number NIA GIA Size (sq. ft.)

B1 Office 1 - 18,364 21,937

Open Market 22 758 16,673 22,863 Residential

Affordable 4 759 3,035 4,166 Residential

Total 28 - 38,072 48,966

A copy of the approved scheme can be viewed here, use the access code Wakley.

A copy of the seller’s Rights of Light survey report in relation to this is available upon request.

- 07 - Pending Application

Pending Application Proposed Accommodation Proposed Elevations

It is considered that whilst the April 2016 consent sets Commercial GIA Residential GIA Floor a precedent for a mass and bulk of a development sq. ft. sq. ft. which can take place on the site, there may be Fifth 2,917 1,076 alternative development options by working to reposition the existing building with the creation of Fourth 3,530 1,399 additional residential and office accommodation. Third 4,230 1,560

Second 6,070 1,560 This application is designed within the envelope of the April 2016 approved scheme, and is understood First 8,083 1,668 to be policy compliant. Ground 12,766 990

Basement 1,205 0 A planning application is due to be submitted for a Total 38,801 8,253 mixed-use scheme which will: - Extend to the rear of upper floors of the 328 City Road element - Add 2 additional floors on the Wakley Street frontage – as per April 2016 consent - Add 3 additional floors to the centre of the existing office building (as opposed to 4 floors in the April 2016 consent) - Opens light wells at ground – increasing open aspect to the north at ground

A scheme of this nature would create circa 38,801 sq. ft. GIA of B1 space and 8,253 sq. ft. of residential space across 9 units, with the construction work carried out as extensions, conversion and refurbishment rather than a new build scheme.

Possible External Terrace Space

- 08 - Market Commentary

Occupational Market Occupational Market Comparables The London office vacancy rate has been decreasing for almost three years and has fallen to just below 3%. Address Area Tenant Headline Rent Demand across non-core submarkets continues to originate from a wide range of occupiers looking for Suncourt House, 18-26 Essex Road N1 4,300 sq. ft. Hudl UK Limited £57.50 per sq. ft. affordable Grade-A space. Supply continues to lag, £55.00 per sq. ft. The Pivotal Building, 123 Pentonville Road N1 25,800 sq. ft. Houzz with approximately 20% of schemes currently under (Overall-Entire Building) construction already pre-let.

Rental evidence in Islington suggests that the rental 205-207 Kings Cross Road, London WC1 3,331 sq. ft. CCGroup Communications Limited £66.50 per sq. ft. growth rate has been in line with surrounding City

Fringe locations. Rents in Islington are typically in White Collar Factory, 1 Old Street Yard EC1 28,549 sq. ft. Box.com £75.00 per sq. ft. the high £50’s per sq. ft., with any premium space on the borders of Shoreditch and King’s Cross in the sub Saffron House, 6-10 Kirby Street EC1 11,644 sq. ft. Arthritis Research UK £62.50 per sq. ft. 5,000 sq. ft. category commanding rents in excess of £60 per sq. ft. Sutton Yard, 65 Goswell Road EC1 9,448 sq. ft. Future Games Of London £70.00 per sq. ft. Recent rental growth driven by acutely low vacancy in Tech City, coupled with continuing strong demand, has caused a leapfrogging effect resulting in cost-conscious tech companies having to widen their search for office space to include Islington. Key Investment / Vacant Possession Comparables

Address Tenure Tenancy Price Purchaser Comment

£12.6m (£342 per sq. ft. 65-70 White Lion Street, Planning permission for a new office Freehold Vacant possesion based on the consented Private N1 scheme of 36,760 sq. ft. scheme)

VP with comprehensive refurbishment / 175 St John Street, EC1 Freehold Vacant possesion £14.2m (£999 per sq. ft.) Place To Be development required. White Collar Factory Suncourt House

Old Sorting House, £14.00 M (£570 per sq. ft. Planning permission for a new office/ 46 Essex Road, Freehold Vacant possession Private on the consented) residential scheme of 24,400 sq. ft. N1

York House, Outline planning consent for the £34.25 M (£600 per sq. ft. The Office 207-221 Pentonville Road, Freehold Vacant possession reconfiguring and additional massing to on the proposed) Group N1 provide an office scheme of 56,900 sq. ft.

Sutton Yard 205-207 Kings Cross Rd

- 09 - Further Information

Tenure VAT Freehold. The site is elected for VAT.

Tenancy Proposal The property is currently let to National Children’s Bureau at nil rent on a Offers invited in excess of £11,750,000 (Eleven Million, Seven Hundred and Fifty Thousand lease to expire in April 2018. Pounds) which reflects a low capital value of £525.39 / sq. ft. on the existing GIA and £239.96 / sq. ft. on the consented scheme.

City Contact Road For further information, please contact the joint sole agents:

eet r Ricky Blair St 020 7871 7420 ley [email protected] Wak

Elliott Stern 020 7871 7425 [email protected]

et

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tr

ll S Kyle Joss Ha 020 7487 1958 [email protected]

G oswell Road Ross Kemp 020 7183 2529 [email protected]

Tom Brain 020 7183 2529 [email protected]

Colliers International & Kingsbury, give notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Party 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. No person in the employment of Colliers International & Kingsbury has any authority to make any representation or warranty whatsoever in relation to this property. September 2017.

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