25-27 FARRINGDON ROAD, , EC1 Prime City Fringe Retail Investment for sale 25-27 FARRINGDON ROAD, LONDON, EC1 LOCATION

The property is located in the heart of , an area which has successfully reinvented itself during the past 20 or so years. The premises are situated in a prominent position on the west side of Farringdon Road, at the junction with Greville Street, immediately opposite . Farringdon Road is a thriving mixed-use destination between the West End and the and will benefit from the investment in Crossrail. The area is currently home to many occupiers from the Financial and Creative industries as well as a number of boutique retailers.

RETAIL ON FARRINGDON ROAD

The retail pitch in the immediate locality is solely situated on western side of Farringdon Road, beginning at the junction with Cowcross Street/Greville Street (where the subject property is located) until the junction with St Cross Street. This junction with Greville Street/Cowcross Street is the first frontage visible to those exiting the station onto Farringdon Road. The adjoining retail unit is occupied by a Sainsburys Local, which affirms the strength of the location for retailers. Other notable retailers in this pitch are JD Wetherspoon, Post Office, Tesco Express, Papa Johns and Winkworth Estate Agents, with Costa Coffee and Pret-a-Manger nearby.

DESCRIPTION

The long leasehold investment forms the Ground and Basement floor of this 7-storey property.

The building is Grade II listed and was originally built in the late-19th Century, presenting an imposing Venetian Gothic façade to the street scene and featuring a unique corner “turret”. The building was substantially redeveloped by Berkeley Homes in the late 1990s, creating apartments throughout the upper floors and a Retail unit at Ground and Lower Ground floor. T L 7 N -S A IO TI U 6 T L CT - NA U A 8 M ) ( 6 55 (3

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MAJOR INFRASTRUCTURE INVESTMENT - CROSSRAIL

In December 2011, a new ticket hall opened (opposite the subject property) which is dedicated to Thameslink and future Crossrail passengers opened. This provides new ticket facilities and According to Ove Arup extra capacity and improved access for passengers. Crossrail’s Elizabeth line opens in 2018 & Partners Limited and will make Farringdon Station one of the busiest in the UK, connecting Thameslink and the (“The Impact of Crossrail on Visitor Numbers London Underground, thus linking to outer London, the Home Counties, the City, Canary Wharf in Central London” - January 2014): and three of London’s major airports (Heathrow, Gatwick, and Luton) and to Eurostar services. “Farringdon station could The number of journeys and capacity will increase significantly and key journey times will be achieve demand of some 41 reduced by 20%-40%. With up to 24 trains an hour running in each direction on Thameslink and million passengers per annum Crossrail, including tube trains Farringdon will be served by over 140 trains an hour. and, on average, some 153,000 passengers per day in 2026. These figures represent an increase of some 150% compared TOTTENHAM LIVERPOOL PADDINGTON COURT ROAD STREET to current totals”.

CUSTOM HOUSE

BOND STREET WHITECHAPEL

FARRINGDON CANARY WHARF WOOLWICH

FARRINGDON 25-27 FARRINGDON ROAD, LONDON, EC1

DEVELOPMENT IN FARRINGDON/CITY FRINGE

The following developments have recently been completed or are proposed for the locality, demonstrating the confidence from Investors and Occupiers in this area.

Development Scheme Timescale Developer

60 Viaduct 212,000 sq ft of redeveloped Grade A office Complete July 2013 AXA Real Estate

352,000 sq ft of redeveloped Grade A office 30,000 sq ft of retail 1&2 New Ludgate, EC4 Completed April 2015 Land Securities accommodation

40 Chancery Lane, WC2 101,800 sq ft of redeveloped Grade A office Completed Developer Completed July 2015 Derwent

266,000 sq ft of redeveloped Grade A office 5,000 sq ft of retail 1 New Street Square, EC4 Completed June 2016 Land Securities accommodation Completion

12-14 New Fetter Lane, EC4 147,171 sq ft of redeveloped Grade A office Completed September 2016 Great Portland Estates

165,764 sq ft of redeveloped Grade A office 15,069 sq ft of retail Charterhouse Place Completion due Q1 2017 TIAA Henderson accommodation

98 Fetter Lane, EC4 58,342 sq ft of redeveloped Grade A office Pre-let to Macfarlanes Completion due Q1 2017 Brookfield

Goldman Sachs Headquarters, EC4 1,000,000 sq ft of redeveloped Grade A office Completion due 2017/18 Goldman Sachs Campus

236 high quality apartments 230,000 sq ft of retail/restaurant/café Barts Square, EC1 Completion due Q3 2018 Helical Bar accommodation

Farringdon Station 207,000 sq ft of redeveloped grade A office with retail units 2018 Crossrail/ Cardinal Lysander

Smithfield Quarter Creation of a new Museum of London 2021 City of London Corporation

61-65 116,250 sq ft of redeveloped Grade A office 246 Bedroom hotel Planning Granted CitizenM/CHIL 25-27 FARRINGDON ROAD, LONDON, EC1

INVESTMENT MARKET COMMENTARY

Demand for smaller investment lots, particularly those that are backed by an undoubted covenant, remains strong despite the supposed impact of political events on both sides of the Atlantic Ocean.

Despite a fall in retail investment volumes compared to Q2, high street yields have been stable, with prime centres remaining at a ten-year low. In addition, yields are between 25-50 bps below the previous year, prompted by higher cross border demand.

TENANT COVENANT

Boots is one of the UK’s retailing institutions. Founded by John Boot in 1849 in Nottingham, today it is the largest pharmacy health and beauty chain in the UK with over 2,500 stores with representation in most high streets, shopping centres and airport terminals across the country. The company’s parent, Alliance Boots, was bought in 2007 for £11.1 billion. This was the first ever FTSE 100 company bought by a private equity firm.

In 2012, Walgreens (the largest drug store chain in the United States) bought a 45% stake in Alliance Boots with the option to buy the rest within three years. It exercised this option in 2014, and as a result Boots became a subsidiary of Walgreens Boots Alliance forming a combined business with operations in 25 countries. In April 2015, Walgreens Boots Alliance published their first post-merger update, reporting an overall rise in sales of 35%, to $26.6bn, and a 33% rise in profits compared with last year. Boots UK Limited is rated as Very Low Risk in terms of business failure with a Dun & Bradstreet Rating of 5A1. In the year to 31st March 2014 the company reported turnover of £6.34bn (up from £6.204bn in 2013), pre-tax profit of £507m (up from £452m in 2013) and total net worth of £456m (up from £430m in 2013). We would consider that most investors would interpret the tenant to be of very strong covenant strength. 25-27 FARRINGDON ROAD, LONDON, EC1

TENANCY CONTACT

The premises are let to Boots UK Limited from 31 May 2012 until For further information or to arrange a 30 May 2022, thus giving the purchaser a term-certain of more viewing please contact: than 5 years. James Reiff on 0207 927 6570 A rent review is due 31 May 2017. The permitted user is A1 Retail. email [email protected] The passing rent is £90,000 per annum exclusive. We or consider the rent to be reversionary. Ben Blausten on 0207 927 6331 TENURE email [email protected] The premises are held on a long-lease of 999 years from and including 1 January 1997.

PROPOSAL/PRICE We are instructed to seek offers in excess of £2,250,000, thus reflecting a Net Initial Yield of 3.75% and a capital value £504/sqft.

Misrepresentation Act 1967. These particulars are intended only to give a fair description of the property and do not form the basis of a contract or any part thereof. These descriptions and all other information are believed to be correct but their accuracy is no way guaranteed.