MUTUAL HOUSE 193 - 201 | REGENT STREET | LONDON W1 1 MUTUAL HOUSE | 193 - 201 | REGENT STREET | LONDON W1 MUTUAL HOUSE | 193 - 201 | REGENT STREET | LONDON W1 2 3 MUTUAL HOUSE | 193 - 201 | REGENT STREET | LONDON W1 MUTUAL HOUSE | 193 - 201 | REGENT STREET | LONDON W1 4 1 MUTUAL HOUSE | 193 - 201 | REGENT STREET | LONDON W1 A Unique Opportunity to acquire a landmark property on London’s Regent Street” INVestment SummarY • A trophy asset situated on London’s Regent Street. • Attractive flagship retail units with self contained offices to the upper floors, accessed from Conduit Street. • Situated in the heart of Regent Street, directly opposite the famous Hamleys toy store and surrounded by many of the world’s high end retail brands. • The Retail element is let to renowned British luxury retailers Hackett, Church’s Shoes and The Pen Shop. • Low retail rents offering excellent rental growth prospects; retail rents on Regent Street currently offer a c.50% discount to prime rents on New Bond Street and a c.20% discount to prime rents on Oxford Street. • Opportunity to improve the retail offering through the implementation of a planned development scheme to create a larger flagship unit and establish optimum rents. • The office accommodation is multi-let to five tenants with an average rent of only £45.49 per sq ft. • Long leasehold interest from The Crown Estate with approximately 103 years unexpired and no landlord’s redevelopment break option or pre-emption right to purchase. • Offers in excess of £85,000,000, subject to contract, are invited for the Long Leasehold interest. This reflects an initial yield of 2.95% and a reversionary yield of 3.83%, based on our opinion of ERV. MUTUAL HOUSE | 193 - 201 | REGENT STREET | LONDON W1 2 3 MUTUAL HOUSE | 193 - 201 | REGENT STREET | LONDON W1 Buckingham Palace Hyde Park Green Park St James’s Park Berkeley Square MAYFAIR New Bond Street Hanover Square SOHO Regent Street MUTUAL HOUSE | 193 - 201 | REGENT STREET | LONDON W1 4 5 MUTUAL HOUSE | 193 - 201 | REGENT STREET | LONDON W1 Regent Street has substantially benefited from a £1 billion investment programme initiated by the Crown Estate. This ongoing programme has helped define Regent Street as a major shopping destination.” REGENT STREET REGENT STREE HESTER MANC CAVENDISH ET TOTTENHAM COURT ROAD SQUARE O R E S T R E Extending to just under one mile and Crown Estate International Retailer Presence Average weekly footfall has increased GM WI AN boasting two million square feet of by 15% over the last year whereas TM RE Regent Street has substantially benefited London is the world’s most popular POR SQUA OXFORD STREET SOHO commercial space, Regent Street is from an ongoing £1 billion investment destination for foreign tourists with over Oxford Street and Bond Street levels ET T 9 O R E S T R E one of the most prestigious shopping have remained flat. The world famous GM programme initiated over the past 18 million visitors annually spending WI districts in the West End. It forms an Hamleys toy store, a major tourist RE 8 OXFORD CIRCUS decade by the Crown Estate, which £11.44 billion, which is forecast to SQUA T SQUARE important link between upmarket attraction, is located directly opposite owns the majority of Regent Street. increase to £18.82 billion by 2020. OXFORD STREE MARYLEBONE OUGH STREET Mayfair to the West, the creative quarter This ongoing programme has helped the subject property and attracts five R 7 V ER 6 of Soho to the East and connecting the Regent Street has seen the greatest million tourists per year. BOND STREET HANO define Regent Street as a major shopping T GREAT MARLBO major transport hubs of Oxford Circus destination, characterised by renowned expansion in international retailer 2 In addition to increased tourists flows to OXFORD STREE and Piccadilly Circus. presence in the West End, proportionally RE global retailers. The Crown Estate NORTH AUDLEY STREE London, The UK Government is actively SQUA has completed ten major schemes up by 33 percentage points. In SOHO improving the Chinese Visa system. This to date with a number of upcoming comparison to other key pitches in MARBLE ARCH 1 includes: a new 24 hour visa service; completions, including Block W5 Central London, Regent Street is the exploring the development of a single P A R K S T R E E (adjacent to Mutual House) in Q4 2015. first choice for international retailers T visa application centre for both UK and NE alongside Covent Garden. The D W NOR TREE REGENT STREE E A V I E S S S V B O N D S T R E E Schengen visas; and a new joint British/ T RO V This investment has resulted in Regent international appeal of Regent Street has G N O R S T R E E T I T GOLDEN E U A T S V Irish visa scheme. For some Gulf States RO RE Y Street becoming London’s most helped to drive footfall and significantly G R S OND UA TR U citizens can now obtain a free electronic C SQ B SA S impressive and architecturally grand increase total sales. E E ET T E V I L E R O R visa waiver to travel to the UK instead T F retail locations. LEICESTE T 5 3 T A of needing to apply for a visit visa. These SQUARE H TREE S P A R K L A N E S W changes are likely to result in increased S O U T H A U D L P A R K S T R E E ON E T 4 AR RU S QU visitor numbers. MAYFAIR B BE PICCADILLY CIRCUS R KELE O L D B O REET BURLIN S T REGENT STREE SQ DOVE T Y E M O U N T U Y S T R E E T AR N G R D T O N E STRE ROYALCADE S T R E E T AR AR E London is the most visited city by international tourists in the World Total visitor spend in London BERKELEY STREETT C A DE ILLY PAR D Rest of the World Europe North America BRIC (Brazil, Russia, India, China) A T K 18 20,000 L A N E PICC S T R E E T JERMYN STREET S S E L 16 STRATT CHAR S T J A M E S ’ 14 O 15,000 N STREET 12 ST JAMES’S RE GREEN ST SQUA 10 STREET PARK J A M E S S T C U R Z O N 10,000 Flagship Stores P A L L M A L L 8 1. Hamleys HYDE PARK REET 6 Total spend (£m) 2. Liberty 5,000 4 3. Burberry P A R 4. Abercrombie & Fitch K 2 L Overnight in international visitors (millions) 5. Louis Vuitton A N 0 0 E 6. Apple PICCADILLY London Bangkok Paris Singapore Dubai New York Istanbul Kuala Hong Seoul 2007 2008 2009 20110 2011 2012 2013 2020 Lumpur Kong 7. Selfridges ALL M Rest of the World Europe North America BRIC (Brazil, Russia, India, China) Source: Mastercard Global Destination Cities Index Q2 2013 8. John Lewis Source: Savills; ONS; Deloitte GREEN PARK T H E *London data is based on year end 2013 data 20,000 9. Topshop Source: Savills Source: Savills; ONS; Deloitte MUTUAL HOUSE | 193 - 201 | REGENT STREET | LONDON W1 15,000 6 7 MUTUAL HOUSE | 193 - 201 | REGENT STREET | LONDON W1 HYDE PARK CORNER C O N S T I T U T I O N H I L L 10,000 ST JAMES’S Total spend (£m) BUCKINGHAM PARK G 5,000 ROSVE PALACE N O R P L A GARDENS BELGRAVIA C E 8-9 Stratton Street 0 2007 2008 2009 20110 2011 2012 2013 2020 Source: Savills; ONS; Deloitte MUTUAL HOUSE | 193 - 201 | REGENT STREET | LONDON W1 8 9 MUTUAL HOUSE | 193 - 201 | REGENT STREET | LONDON W1 Regent Street was the world’s first modern purpose built shopping street, pre-dating the Champs Elysee and Fifth Avenue” HISTORY Originally designed by John Nash, Today each building is protected with Regent Street was the world’s first listed building status conserving the modern purpose built shopping street, famous grand Portland stone façades. pre-dating the Champs Elysee and Fifth Regent Street’s unique and historic Avenue. In the early 20th Century, the environment attracts an increasing street was redeveloped by leading British amount of shoppers whilst large architects in order to reconfigure the stores meet the requirements of shops to make them suitable for modern today’s occupiers. retail trading. MUTUAL HOUSE | 193 - 201 | REGENT STREET | LONDON W1 10 11 MUTUAL HOUSE | 193 - 201 | REGENT STREET | LONDON W1 The property is anchored by many local occupiers including the ET world famous Hamleys Toy Store, RE ST GOL DEN Burberry, Michael Kors, Jaegar, SQU AR E R NAB Y ST RE ET O U G H CA Apple, Hugo Boss, Lacoste and R E OXFORD STREET OR Longchamp.” ST RLBO MENT RT MA T DEPA TY EA S IE S IE IBER L OR GR TEZENI EAR LINGER RD E ET KIKO S W RE MILANO ST LY UNIQL US HER ST K ING C SSORIZE T HAR SOON OT HANG LADIE ES O FO C LE ACCE MON S TY RC TW MO SITUATION TS RW NA SS AUST VIYE HITT E OX CI MANI EX L SAIN AR OR LLA UAL IN REED AL S S IT H&M SIG UNITED COL GIE LO PO RO Y S EY S ’S ST E LLI OF BENNET LAND S GI L Y OURS CO DE HER L LL GAP ON SPIR INGER N WI Mutual House is situated in the heart FO EBB Y HIC JUIC RE COUTU OML E LEVI HUGO BOSS OOK OT SHOP DY BO FR IS RE GUES ANTH ENC SSEL LLI BR CONNEH BR IE TIMBER MM TO TMAPPIN GER HILFI & W KS RU of Regent Street at its junction with & BR CTIO LE TM FO THE N MANGO Conduit Street.