Prime West End 44-46 Cranbourn Street Investment and Development and 5-7 Bear Street Opportunity Leicester Square, London WC2 Executive Summary • Prime West End location in an internationally recognised leisure location and one of the most famous tourist visitor places in Europe • Freehold • 100% Prime mixed use building just off Leicester Square on the pedestrianised east side of the square, providing 7,698 sq ft (714 sq m) • 40 feet / 12.3m frontage to Cranbourn Street leading into Leicester Square and 63 ft / 19.1m frontage to Bear Street • In excess of 52 million people walk past the subject property every year • Comprises leisure on ground and lower ground floors, and offices and residential on the upper floors • Directly opposite the Hippodrome Casino and adjacent to Leicester Square station • Multi-let to 5 tenants on 6 leases • Current rent of £990,000 per annum • Total accommodation 7,689 sq ft • Highly Reversionary rent with potential to redevelop the site to provide a modern mixed use development (subject to planning consents) • We are instructed to invite offers for our client’s freehold interest in the property Location 44-48 Cranbourn Street and 5-7 Bear Street are located on the north east corner of Leicester Square. The building forms part of the Bear Street triangle and connect Leicester Square with the underground station (50m away), providing a pedestrianised link to Long Acre and towards Covent Garden. Cranbourn Street connects Leicester Square to Charing Cross road and Long Acre, Covent Garden to the East and Trafalgar Square to the South. The Square takes its name from Robert Sidney the 2nd Earl of Leicester, who in 1630 bought 4 acres of land in St. Martin's Field, and by 1635, had constructed a large residence called Leicester House. The square was extensively refurbished and remodelled for the 2012 London Olympics at a cost of more than £15m. More recently, Leicester Square has benefitted from the redevelopment of the LSQ building on the west side, which is a mixed-use restaurant, retail and office building (Lego store) and soon to be completed Radisson 5 star hotel on the south west corner. Leicester Square is one of London’s best known public squares and a hub of entertainment and activity. The square has become London’s prime location for hosting film premieres and various celebrity events. Another popular destination on the Square is the W Hotel, which is also home of M&Ms World store. Situation 44-46 Cranbourn Street and 5-7 Bear Street are situated on North East side of Leicester Square in close proximity to Leicester Square station, the Hippodrome and the Odeon Leicester Square cinema. Communications The building is located just 50m to the West of Leicester Square underground station (Northern and Piccadilly lines) and 320m (5 min walk) from Piccadilly Circus station (Piccadilly and Bakerloo lines) and also 320m from Covent Garden station (combined annual entry / exit movements of approx. 80 million people). The property sits at the very heart of London’s transport network, offering exceptional connectivity across the capital via both London Underground and Elizabeth Line services, as well as the proposed Crossrail 2 route. There are numerous 24-hour bus services available from Charing Cross Road, serving routes across Central London. Description The building comprises two adjoining period buildings known as: • 44-46 Cranbourn Street and 5-7 Bear Street • 6 Bear Street 44-46 Cranbourn Street has dual frontage to Bear Street, with four units fronting Cranbourn Street and three units fronting Bear Street. The building also has three upper floors of offices entered from Cranbourn Alley. The majority of the ground floor accommodation is let to M&L Travel Accessories Limited and has dual frontage from Cranbourn Street through to Bear Street, and has also knocked through to use the ground floor of 6 Bear Street. This unit has basement level on the Cranbourn Alley side of the building. The Cork & Bottle wine bar (Clayton Restaurants Limited) has the main basement known as 45 & 46 Cranbourn Street and 5 & 6 Bear Street. 6 Bear Street is a separate period building which has a ground floor entrance and three studio flats over first to third floors, and is sold off until 2029. Accommodation Floor Tenant NIA sq ft NIA m2 Ground Floor London Theatre Bookings Limited 1,067 99.12 44-46 Cranbourn St Lower Ground Clayton Restaurants Limited t/A 1,336 124.11 44-46 Cranbourn St & 5-6 Bear St Cork & Bottle Part Ground, London Theatre Bookings Limited 367 34.09 5-7 Bear St & 44-46 Cranbourn St Basement & Ground M&L Travel Accessories Ltd T/A 1,836 170.56 5-7 Bear St & 44-46 Cranbourn St Coffee & Gift 1st, 2nd, 3rd floors Meir Levy and Nissim Levy 658 61.13 6 Bear Street 1st, 2nd, 3rd floors Hippodrome Casino 2,425 225.28 44-46 Cranbourn St Total 7,689 714.31 Floor Plans Basement Ground Floor First Floor Second Floor Third Floor Tenancy Schedule AREA / FLOOR TENANT AREA / m2 USE CLASS LEASE START LEASE END RENT COMMENTS sq ft Ground Floor, 44-46 London Theatre Kiosk retail unit. Outside of the 1,067 99.12 E (A1) 01-Nov-17 31-Oct-22 £225,000 Cranbourn Bookings Limited L&T act 1954 Street Lower Ground, 44-46 Clayton Restaurants dual access from entrances on Cranbourn Limited t/A Cork & 1,336 124.11 E (A3) 01-Nov-17 31-Oct-22 £70,000 Cranbourn St and Bear Street. Street and 5-6 Bottle Outside of the L&T act 1954 Bear Str Part Ground, 5-7 Bear Street London Theatre Kiosk retail unit. Outside of the and 44-46 367 34.09 E (A1) 18-Dec-17 31-Oct-22 £105,000 Bookings Limited L&T act 1954 Cranbourn Street Basement & Ground, 5-7 M&L Travel Interlinked retail unit from Bear Street & Accessories Ltd T/A 1,836 170.56 E (A3) 02-Feb-18 01-Feb-23 £500,000 Cranbourn St to Bear Street. 44-46 Coffee & Gift Outside of the L&T act 1954 Cranbourn Street 1st, 2nd, 3rd Meir Levy and Nissim Long leasehold with 9 years floors, 6 Bear 658 61.13 C1 25-Mar-50 23-Mar-29 £60 Levy remaining on the term. Street 1st, 2nd, 3rd Self contained offices entering floors, 44-46 Hippodrome Casino 2,425 225.28 E (B1) 01-Nov-17 31-Oct-22 £90,000 from 1 Cranbourn Lane. Cranbourn Outside of the L&T act 1954 Street 7,689 714.31 £990,060 Tenure Freehold. Tenants’ Covenants Hippodrome Casino Ltd Company number 05497987, accounts to 31st December 2018. Revenue £76.5m, EBITDA £5.2m and a Gross profit of £45.71m. Clayton Restaurants Ltd Company number 09698720, last accounts up to 31st July 2019 which show total assets of £566,000 and a retained profit of £235,000. London Theatre Bookings Ltd Company number 01157197, last accounts year ending 31st May 2019. The business is owned and controlled by Ms Jill Davey and Mr Joe Davey. M & L Travel Accessories Ltd Company number 08270884, last filed accounts 31st October 2018. Current assets £213,000. Development Potential The two buildings comprise a mix of different heights, with only lower ground and ground floors on 44 Cranbourn Street and 5 Bear Street. There exists potential to infill and extend the buildings to create a nine-storey building, which would create 15,775 sq ft net lettable space (subject to attaining planning consent). The prominence of the subject buildings means there is potential to create a unique and landmark retail or leisure-led mixed-use scheme, perhaps similar to M&Ms World on the west side of the Square. Adjoining Site Development 1-4 Bear Street and 47-48 Cranbourn Street, London, WC2H 7AR. Which adjoins to the west has planning consent to demolish the existing building and redevelop to provide a new building comprising basement, ground and six upper floors. Use of basement, ground and first floors for restaurant purposes (Class A3), with ticket booth (Class A1) at ground floor level to Cranbourn Street. Use of upper floors as nine self-contained residential flats (8 x 1 beds and 1 x 2 bed). Development Potential Proposed Areas Cranbourn Street elevation: Cranbourn Street FLOOR NIA sq m NIA sq ft USE B2 122 1,314 A3 A1 LG 246 2,649 A3 A1 Ground 150 1,615 A3 A1 1st 125 1,346 A3 A1 2nd 75 808 Office 3rd 75 808 Office 4th 75 808 Office 5th 75 808 Office 6th 62 668 Office Total 1,005 10,822 Bear Street elevation: Bear Street FLOOR NIA sq m NIA sq ft USE B2 87 937 B1 offices LG 36 388 B1 offices Ground 29 312 Office Ground 17 183 A3 entrance 1st 31 334 Office 2nd 69 743 Office 3rd 69 743 Office 4th 43 463 Office 5th 43 463 Office 6th 36 388 Office Total 460 4,953 London Tourism Leicester Square is known throughout the world as the beating heart of London’s West End and a global icon which welcomes 250,000 visitors a day. The Square has been entertaining the Capital 24/7 since 1670. It’s a historic destination that’s home to some of the UK’s oldest and most beautiful theatres, cinemas and casinos. The Square hosts more than 60 premieres each year, to 6,000 cinema seats. Leicester Square station had a passenger footfall of 35.78m in 2017 which is more than double Covent Garden tube figures (data TFL).