1 HEADER Copy 7-17 Jewry Street London EC3 HIGHLY REVERSIONARY MULTI-LET FREEHOLD CITY OF LONDON INVESTMENT 2 3 HEADER INVESTMENT SUMMARY Copy A WELL LET FREEHOLD WITH EXCITING REPOSITIONING OPPORTUNITIES IN A RAPIDLY CHANGING AREA OF CENTRAL LONDON WHERE THE TRADITIONAL CITY CORE MEETS THE DYNAMIC NEW MEDIA TECH WORLD OF ALDGATE • Freehold. • Located at the crossover between the increasingly vibrant Aldgate district popular with Technology Media Telecommunications (TMT) occupiers and the established City of London financial and insurance heartland. • Close to numerous mainline and underground stations, such as Aldgate, Fenchurch Street and Tower Hill. Also close to the new Crossrail station at Liverpool Street (opening in 2018). • The building comprises 45,062 sq ft of offices over ground and 7 upper floors as well as 7 basement car parking spaces. • Multi-let to include 12 office tenants, producing a total passing rent of £1,319,326 per annum, reflecting very low average rent of approximately £28.24 per sq ft per annum for the ground and upper floor office space. All occupational leases are outside of the L&T Act 1954 (Part II). • Well timed lease events to enable rents to be driven forward in the short to medium term with weighted average terms of 3.70 years to expiry and just over 3.11 years to breaks. • Considerable active management, repositioning, alternative use opportunities in the short to medium term as well as significant medium to long term redevelopment potential, subject to planning. • Offers are sought in the order of £30,850,000, subject to contract and exclusive of VAT. • The above price reflects a net initial yield of 4.00% (assuming a purchaser’s costs at 6.77%) and a net capital value of £685 per sq ft. • Assuming market rents of £50 per sq ft per annum on the best accommodation the reversionary yield would be in excess of 6.75%. 4 5 ROYAL THE EXCHANGE/ LLOYD’S OF FENCHURCH LEADENHALL 30 LIVERPOOL OLD SPITALFIELDS SHOREDITCH BANK LONDON STREET BUILDING TOWER 42 ST MARY AXE HERON TOWER STREET ALDGATE MARKET HIGH STREET ALDGATE EAST HEADER HEADER Copy Copy 6 7 LOCATION The property is located on the west side of Jewry Street, close to the junction with Fenchurch Street to the north and Crutched Friars to BOUNDARY HOUSE IS SITUATED WITHIN the south, which gives occupiers the benefit of easy access to the traditional insurance district of London. Institutions within close THE CITY OF LONDON AT THE POINT proximity include The London Underwriting Centre, Lloyd’s of London, WHERE THE TRADITIONAL FINANCIAL Lloyd’s Registry of Shipping and The London Metal Exchange. AND INSURANCE DISTRICTS MEET THE Local insurance and shipping market occupiers include Miller Group, AXA, Towergate Insurance, JLT, AIG, Lockton, Elborne Mitchell, Chubb RAPIDLY EMERGING EASTERN AREA and BMS. AROUND ALDGATE. The surrounding area to the east of Jewry Street is rapidly evolving and has attracted some of the most prominent Technology Media Telecommunications (TMT) companies in London. This area, known as Aldgate, has become home to a wide mix of occupiers such as Uber, WeWork, Tag Worldwide, Thomson Reuters, Maersk and Sky. In addition to the above, Boundary House is also within easy reach of such destinations such as the Leadenhall Market, Spitalfields Market, Brick Lane, St Katharine Docks and the Whitechapel Art Gallery, all with their vibrant mix of dining, shopping, entertainment and cultural attractions. LOCAL OCCUPIERS HEADER Local Occupiers Copy 1. Accenture 27. Lloyd’s 2. ACE Insurance 28. Lockton 3. AIG 29. Markel International 4. Amlin 30. Miller Insurance Group 5. Aon 31. Munich RE Group 6. Arch Insurance 32. PLP Architecture. 7. Ascot Underwriting 33. QBE Europe 8. Aspen Insurance 34. Royal Bank of Scotland 9. Aviva PLC 35. RSA 10. Axis Speciality Europe 36. Salesforce 11. Beazley Group 37. SG Hambros Bank 12. Brit 38. Standard Life Investments 13. Browne Jacobson 39. Sungard Availability 14. Chubb Services 15. Clyde & Co 40. Swiss RE 16. Curzon Maritime Ltd 41. TAG Worldwide 17. Cunningham Lindsey 42. Thomas Miller 18. The Fairtrade Foundation 43. Tokio Marine Kiln 19. Gensler 44. Trinity House 20. HCC International 45. Uber 21. Hermes 46. W.R. Berkley 22. Interiors Group 47. Wells Fargo 23. JLT 48. Westpac Banking 24. Kennedys Corporation 25. Kirkland & Ellis 49. WeWork 26. LCH Clearnet 50. Willis Restaurants & Bars 1. Omino 12. Discount Suit Company 2. Skygarden Cocktail Bar 3. Luc’s Brasserie 13. The Three Lords 4. Le Paris Grill 14. Number 49 5. Duck & Waffle 15. The Hoop & Grapes 6. The Culpeper 16. Hungry Donkey Greek 7. The Dispensary Kitchen 8. East India Arms 17. Pitt Cue 9. One Under Lime 18. Draft House Seething 10. Lamb Tavern 19. Walter & Monty 11. The Mayor of Scaredy Cat 20.WM Barker and Co Town Hotels & Leisure 1. Virgin Active 6. Apex City of London Hotel 2. Motel One 7. Grange City Hotel 3. Hotel Indigo 8. Tower Of London 4. David Lloyd 9. St Katherine Dock 5. Chamberlain Hotel London 10 11 COMMUNICATIONS ALDGATE CHANGING The local transport communications are excellent with Fenchurch Street Station (mainline, District and Circle Line Underground), Tower Hill and Aldgate East Underground (District and Circle Line Underground and DLR at Tower Hill) all nearby, whilst Bank Underground (Central, Northern, Waterloo & City lines and DLR) and Liverpool Street (Mainline, District & Circle and Central lines) are within close walking distance. ALDGATE IS ONE OF LONDON’S FASTEST DEVELOPING SUB-MARKETS. THE AREA HAS EVOLVED AS A MIXED USE DISTRICT AND HAS CONSEQUENTLY EXPERIENCED A Station Service Average Walking Time Distance STRONG UPSURGE IN RETAIL, CAFES, RESTAURANTS AND HOTELS TO THE LOCALITY. Aldgate Underground - Metropolitan, Circle 2 mins 210m THE BALANCE BETWEEN WORK, PLEASURE AND CONVENIENCE IS NOW ONE OF Underground - Circle, Aldgate East 5 mins 450m Hammersmith & City THE MOST APPEALING ASPECTS OF THE AREA, ATTRACTING A WIDE VARIETY OF OCCUPIER TO THE VICINITY. Fenchurch Street Overground 1.5 mins 120m Tower Hill Underground - Circle, District 4 mins 300m Overground, (Crossrail 2018) Liverpool Street Underground - Central, Circle, 8 mins 750m The eastern core of Aldgate has seen considerably high levels of At the northern end of Jewry Street, the Aldgate area will receive a Metropolitan, Hammersmith & City investment over recent years with over 2 million sq ft of office space having major uplift in spring 2017 as changes to the traffic layout ensure well been developed and more than 1 million sq ft of it being taken up in the thought out traffic flow, introduce pedestrian crossing points, allow easier Tower Gateway DLR 4 mins 350m last 18 months or so. In addition more than ten acres of parks, seating navigation of bus services and introduce two new public spaces on the Monument Underground - Circle, District 11 mins 804m areas and gardens are being regenerated within the proximity of Jewry eastern edge of the City of London. Street. This has been combined with over 40 new restaurants, cafes and bars, as well as numerous new hotels who add to list of local amenities The Aldgate Highway Changes and Public Realm Improvements Project close to Boundary House. Furthermore there are over 10 new residential will enhance safety for road users by improve cycling routes, pedestrian CROSSRAIL developments which will ensure a modern, vibrant, balanced environment. routes and connections whilst introducing more greenery and improving lighting in the area Crossrail is due to be delivered in 2018 and is set to revolutionise London’s East-West connections with high speed, high frequency train services. London’s overall transport capacity will increase by 10%, transporting up to 200 million people per annum, with up to 24 trains per hour in each direction at peak times. STRATFORD FOREST GATE ROMFORD SHENFIELD STANSTED MOORGATE/ HAYES & EALING TOTTENHAM LIVERPOOL READING HARLINGTON HANWELL BROADWAYPADDINGTON COURT ROAD STREET MARYLANDMANOR PARK CUSTOM MAIDENHEAD SOUTHALL WEST EALINGACTON BOND STREET FARRINGDON WHITECHAPEL HOUSE ABBEY WOOD MAIN LINE HEATHROW LUTON AIRPORT GATWICK CANARY WOOLWICH WHARF Liverpool Street station is a short walk from Boundary House, which will have the following journey times once Crossrail services are complete in 2018. Station Existing journey time (mins) Journey time following opening of Crossrail (mins) Canary Wharf 19 6 Whitechapel 5 2 Farringdon 4 2 Tottenham Court Road 8 4 Bond Street 11 7 Paddington 19 10 Heathrow 50 32 The Aldgate Highway Changes and Public Realm Improvements Project 12 13 LOCAL DEVELOPMENTS Minories Estate Beagle House 1 Commercial Street 1 4C Hotels 2 Aldgate Developments 3 Redrow/Angelo Gordon THE SURROUNDING INSURANCE DISTRICT AND ALDGATE AREAS HAVE RECENTLY SEEN EXCEPTIONAL LEVELS OF INVESTMENT AND DEVELOPMENT, ATTRACTING SOME OF THE UK’S LARGEST PROPERTY COMPANIES, DEVELOPERS AND HOUSE BUILDERS. Aldgate Tower Goodman’s Fields Matrix, Aldgate High Street 4 Aldgate Developments 5 Berkeley Homes 6 Dorsett Hospitality Heron Tower 3 St Botolph Building Tower 42 4 10 2 30 St Mary Axe 6 Creechurch Place 40 Leadenhall Street The Butterfly 7 5 7 8 9 The Leadenhall 1 Helical Bar/HOOPP TIAA Henderson Real Estate Fosun and Portsoken Advisors Building Lloyds of London 11 8 12 13 9 15 Aldgate Union 80 Fenchurch Street Dixon House, 20 10 11 12 Fenchurch Derwent London Partners Group & Marick Fenchurch Street Street Greenoak 14 Roman Wall House Royal Mint Street 9 Prescot Street 13 L+R (being sold) 14 IJM Land 15 Derwent London RIVER THAMES 14 15 DESCRIPTION Boundary House comprises a purpose built office building The property has undergone a rolling refurbishment programme and constructed circa mid-1950’s and is arranged over basement, ground the specification of the offices varies on the individual floors / units. A and seven upper floors. The building has a net internal area of 45,062 number of the floors (5th, 6th and pt 7th) remain as centrally heated sq ft including basement storage accommodation.