ONE FETTER LANE 1 ONEFETTER LANE, LONDON EC4 PRIME MIDTOWN FREEHOLD MIXED USE REFURBISHMENT OPPORTUNITY ONE FETTER LANE ONE FETTER LANE 2 3 EXECUTIVE SUMMARY Freehold. Prominent corner building in a prime Midtown location on the junction of Fetter Lane and Fleet Street, within close proximity of City Thameslink, Farringdon and Chancery Lane stations. 24,056 sq ft (2,234.9 sq m) of office, retail and ancillary accommodation arranged over lower ground, ground and six upper floors. Multi-let to one office tenant and four retail tenants producing a total rent of £1,199,000 per annum (£49.84 per sq ft overall). Low passing office rent of only £46.98 per sq ft compared to prime Midtown rents in excess of £75.00 per sq ft. Highly reversionary retail income accounting for c.23% of the overall income, with average rents of £152 Zone A, with rents on Fleet Street in excess of £200 Zone A. Opportunity to increase the net lettable area of the building by 3,306 sq ft (307.1 sq m) subject to obtaining the necessary consents. Weighted Average Unexpired Lease Term to earliest determination of approximately 0.5 years on the office space and 9.35 years on the retail accommodation. Offers are sought in excess of £21,000,000 for the freehold interest subject to contract and exclusive of VAT. This reflects a net initial yield of 5.35% and a capital value of £873 per sq ft on the existing area and £767 per sq ft on the proposed area, assuming 6.75% purchaser’s costs. Applying a yield of 4.50% to the existing retail income this pricing equates to £776 per sq ft on the existing office area and £664 per sq ft on the proposed office area. ONE FETTER LANE ONE FETTER LANE 4 5 LOCATION THE PROPERTY IS PROMINENTLY SITUATED ON THE CORNER OF FETTER LANE AND FLEET STREET. THE CITY CORE IS LOCATED LESS THAN A 10 MINUTE WALK TO THE EAST, WITH CLERKENWELL AND COVENT GARDEN EQUIDISTANT TO THE NORTH EAST AND WEST RESPECTIVELY. Fleet Street is one of the key arterial routes linking the Framestore, Skype, Amazon, Saatchi & Saatchi, City and the West End. It forms part of the ceremonial WeWork and Deloitte Digital are some of the occupiers EUSTON route through Central London from St Paul’s and is who have taken occupation of nearby schemes in synonymous with both the press and legal sector. recent years. The property, on the corner of Fetter Lane, is ideally The property benefits from excellent surrounding situated for access to the Royal Courts of Justice, the transport infrastructure situated a short walk from City Law Society, Middle and Inner Temples and Lincoln’s OLD STREET Thameslink National Rail and Chancery Lane (Central Inn. Line) Underground Stations. Farringdon National The adjacent street of Chancery Lane has seen large Rail and Underground station is approximately a 10 scale redevelopment projects including Derwent minute walk to the north- west and will benefit from London’s 40 Chancery Lane (HQ of Saatchi and The Elizabeth Line by mid-2020. It is estimated that Saatchi), Aberdeen’s The Cursitor Building and Viridis’ the new rail line will bring an extra 1.5 million people to 28 Chancery Lane. Traditionally associated with the within 45 minutes of Central London. SHOREDITCH HIGH STREET legal sector, Midtown now attracts a hugely diverse occupierRUSSELL base, including those from the technology, SQUARE media and telecommunication (TMT) sector. GOODGE CONNECTIVITY STREET BARBICAN FARRINGDON EASTERN TICKET HALL 1 Fetter Lane benefits from the following FARRINGDON excellent transport connectivity MOORGATE CHANCERY LANE HOLBORN LIVERPOOL STREET M 0 70 4 800 5 M 0 TOTTENHAM M London Underground COURT ROAD National Rail Elizabeth Line ST PAUL’S OXFORD 35 CIRCUS 0M BOND STREET CITY Piccaddily Line THAMESLINK MARBLE ARCH 5 BANK Metropolitan Line M 0 0 0 50 M COVENT Hammersmith & City Line GARDEN District Line Circle Line MANSION Central Line TEMPLE BLACKFRIARS HOUSE LEICESTER CANNON SQUARE STREET MONUMENT PICCADILLY CIRCUS CHARING CROSS GREEN PARK EMBANKMENT LONDON BRIDGE SOUTHWARK WATERLOO WATERLOO EAST HYDE PARK CORNER KNIGHTSBRIDGE BOROUGH EUSTON OLD STREET GREA T E ASTER EET N FARRING STR ST W OLD REET OBURN P DON R CITY ROA LAC OAD E SHOREDITCH HIGH STREET D RUSSELL SQUARE COMME ONE FETTER LANE ROAD ONE FETTER LANE CLERKENWELL 6 7 RCIA L STRE SO U LOCAL T ET HAMPTO OCCUPIERS GRAY’S INN ROA FARRINGDON HEOBALD’S ROAD H FARRI N T GOODGE A ALDER STREET R T O T ET BARBICAN W 7 ON E NGDON TR S SE SGATE GA OU RH D E RD T 2 AR ROA H D E C L STR IE N HF 1 London School of Economics Y 11 IT D SM EET ST WeWork Y WA 6 E 2 R W U B MOORGATE 3 Covington & Burling LLP N HOLB ORN 4 Saatchi & Saatchi BLOOMS HIGH HOLBOR 8 12 GATE CHANCERY LONDON WALL LIVERPOOL 5 Framestore LANE STREET SHOPS HOLBORN 9 NE 6 Skype N 4 HOLBORN BI C LA FARRI 7 Lastminute.com H VIAD 18 A 10 HOLBOR N 13 UC 8 Sainsbury’s LINCOL N’S IN N C T FIELD S E 14 NGDO HIGH R 9 Lego Y FETTER LA 5 19 TOTTENHAM 17 MOORGATE D STREET 10 Bird & Bird N STREET OXFOR COURT ROAD N E 2 11 De Beers 20 C GRESHAM STREET HARI 12 Amazon KINGSWAY 21 NG CR 13 Deloitte 14 OXFORD 1 ST PAUL’S T 22 CIRCUS 14 Goldman Sachs FLEE T STR EET THREADNEEDLE STREE OSS 15 Hachette BOND STREET 2 ROAD 16 Unilever 3 CITY 17 Metro Bank THAMESLINK MARBLE ARCH YCH 25 BANK DW 18 Merrill Lynch L K A ING 19 AXA COVENT CANNON GARDEN WI 24 20 London Stock Exchange STREE L L QUEEN VICTORIA STRE T IA 21 Ropes and Gray LLP STRAND ET M MIDDL E TEMPL E 16 ST 22 Lewis Silkin LLP NS MANSION CECHURCH STREET GARDE R A 23 15 HOUSE EE 23 Nesta GR UPPER THAMES T NT LEICESTER 24 Jones Day LLP VICTORI A EMBANKME STREET CANNON BLACKFRIARS STREET SQUARE 25 Gartner UK Limited TEMPLE MONUMENT E PICCADILLY CIRCUS LOWE R WATERLOO B EGENT STR R THAMES STREE AND T R ST HWARK BRIDG EET RIDGE RIDGE SOUT B CHARING CROSS LONDON GREEN PARK EMBANKMENT LONDON BRIDGE SOUTHWARK WATERLOO WATERLOO EAST HYDE PARK CORNER KNIGHTSBRIDGE BOROUGH FETTER LANE FETTER LANE ONE 4 7 6 8 9 5 ONE 2 3 1 10 12 11 ONE 8 9 LOCAL DEVELOPMENTS MIDTOWN IS ONE OF LONDON’S MAJOR SUB-MARKETS AND HAS BEEN SUBJECT TO SIGNIFICANT DEVELOPMENT ACTIVITY IN RECENT YEARS, WITH A PIPELINE TO SUGGEST THIS WILL CONTINUE. MIDTOWN HAS RECENTLY WITNESSED AN UNPRECEDENTED TREND OF TECHNOLOGY, MEDIA AND TELECOMMUNICATIONS (TMT) OCCUPIERS MOVING IN FROM LONDON’S TECHNOLOGY HUB SHOREDITCH AND CHOOSING TO OCCUPY HIGH QUALITY SPACE WITHIN THE AREA. 1 2 3 7 8 9 20 Farringdon Street Plumtree Court Stonecutter Court Farringdon West Charterhouse Place Smithfield Quarter HB Reavis National Pension Service Greycoat/Ivanhoe Cambridge HB Reavis Helical Bar and Ashby Capital (2019) City of London Corporation 86,000 sq ft multi-let office 827,000 sq ft development let to 240,000 sq ft of office and retail 138,000 sq ft office development, 165,000 sq ft office development, with 270,000 sq ft redevelopment for the development Goldman Sachs accommodation with ground floor retail and amenity 30,000 sq ft of ground floor retail new site of the Museum of London Completed Completed 2022 (estimate) accommodation accommodation 2022 2020 2021 4 5 6 10 11 12 28 Chancery Lane Morley House Hotel 17 Charterhouse Street Fleet Street Estate Fleet House, New Bridge Street Ludgate London Viridis Shiva Hotels / ICG Longbow M&G Investments City of London Corporation City of London Corporation Greycoat/Goldmans 100,000 sq ft office and retail 120,000 sq ft 191-room hotel 145,000 sq ft office development, 27 World class fraud and cybercrime court 51,000 sq ft of new development 105,000 sq ft refurbishment comprising development. Framestore have let the development residential apartments and 6,690 sq ft and new headquarters for the City of comprising office and retail office and retail accommodation entire office accommodation 2021 of warehouse office accommodation London Police accommodation 2020 Completed let to De Beers 2025 (estimate) 2022 (estimate) 2020 ONE FETTER LANE ONE FETTER LANE 10 11 DESCRIPTION 1 FETTER LANE WAS COMPLETED IN 1988 AND PROVIDES APPROXIMATELY 24,056 SQ FT (2,234.9 SQ M) OF OFFICE, RETAIL AND ANCILLARY ACCOMMODATION ARRANGED OVER LOWER GROUND, GROUND AND SIX UPPER FLOORS. The office space, totalling The office floor plates range The ground and lower ground floors 19,584 sq ft (1,819.4 sq m) including from 3,100 - 3,929 sq ft with the benefit from prominent frontage reception and BMA, offers an exception of the 6th floor which to Fleet Street and Fetter Lane, institutional specification which comprises 663 sq ft. The floors experiencing high levels of footfall includes; raised floors, recessed benefit from good natural light at the junction of these two major fluorescent lighting, double glazing, from all sides and generous floor to thoroughfares. suspended ceilings and VAV air ceiling heights ranging from 2.4 - conditioning. 2.65m throughout with slab to slab heights of 3.25m. The double height office reception fronts onto Fetter Lane and provides two lifts linking the ground to fifth floors. SPECIFICATION The current specification of the office space can be summarised as follows: Substantial double height entrance hall Generous finished floor to ceiling heights ranging from 2.4 - 2.65m throughout with slab to slab heights of 3.25m Male and female WCs VAV Air conditioning Suspended Ceilings Raised Floors Two 10 person lifts providing access to the office space ONE FETTER LANE ONE FETTER LANE 12 13 ACCOMMODATION FLOOR PLANS The property has been independently measured by Plowman Craven in accordance with the RICS Code of GROUND FLOOR SECOND FLOOR Measuring Practice and provides the following Net Internal Areas: FLOOR USE NIA SQ FT NIA SQ M 6th Office 663 61.6 5th Office 3,114 289.3 4th Office 3,592 333.7 3rd Office 3,919 364.1 2nd Office 3,929 365.0 1st Office 3,525 327.5 Ground Retail 2,065 270.0 Ground Reception 473 43.9 Ground Office 356 33.1 Ground Storage 13 1.2 Lower Ground Retail 1,276 118.5 Lower Ground Ancillary 1,131 105.1 TOTAL 24,056 2,234.9 IPMS3 areas are available in the online dataroom.