80 Clerkenwell Road, London EC1M 5RJ Prime Clerkenwell Investment Opportunity with Considerable Active Management Potential

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1 31 Old Burlington Street, Mayfair, London W1S 3AS Clerkenwell Road, London EC1M 5RJ Prime Clerkenwell Investment Opportunity with Considerable Active Management Potential

2 Investment Highlights Freehold office building totaling 10,949 sq ft (1, sq m) arranged over lower ground, ground and four uppers. Highly prominent and well positioned on the corner of Clerkenwell Road and St John Street within the 'heart' of Clerkenwell. Situated within immediate walking distance to Farringdon Underground and Mainline Station a major Crossrail hub, and Barbican Underground Station. Single let and providing a total income of 270,575 pa reflecting a low passing rent of only psf. Highly reversionary with ERV s of 40 psf on the ground and upper floors, and 25 psf on the lower ground. Lease expiry in January 2015 providing 2.2 years unexpired. Exceptional asset management opportunities to enhance value including the repositioning of the plant to create additional accommodation on 3 rd & 4 th floors, subject to obtaining the necessary consents. Potential change of use to retail (A1/A2/A3) on lower ground and ground floors, and residential on the upper floors, subject to obtaining the necessary consents. We are instructed to seek offers in excess of 5,500,000 subject to contract and exclusive of VAT, reflecting a Net Initial Yield of 4.65% (assuming the deduction of purchasing costs of 5.80%), a reversionary yield of 6.91% based upon our assessment of ERV's, and a capital value of 502 psf.

3 Location 80 Clerkenwell Road is situated within the heart of Clerkenwell, occupying a highly prominent corner position at the junction of St John Street and Clerkenwell Road. Clerkenwell has emerged as a major transport hub in Central London, and the subject property benefits from being ideally located from Farringdon Underground & Mainline Station a major Crossrail hub, and Barbican Underground Station; both of which are within a short walking distance. Clerkenwell Road has attracted a host of very impressive occupiers that include the offices of fashion labels Alexander McQueen, Ben Sherman and Agent Provocateur. Global advertising agency McCann Erickson, iconic furniture designers Vitra and the popular boutique hotel The Zetter are also located within a few hundred yards of the building on Clerkenwell Road. The immediate vicinity also offers a host of fashionable bars and restaurants including Burger & Lobster, St John, Smiths of Smithfield, Bleeding Heart and Hix.

4 Description 80 Clerkenwell Road is a highly attractive former warehouse building constructed in the early 20 th century. The building is arranged over lower ground, ground and four upper floors and totals 10,949 sq ft (1, sq m) of office accommodation. The building provides largely column free, highly efficient and flexible floor plates. Both front and side elevations of the building benefit from excellent natural light. Furthermore, an 8-person passenger lift provides direct access to all floors. The office accommodation benefits from the following specification: Air conditioning Suspended ceilings 8 person passenger lift WC s on each floor Excellent natural daylight from the front and side elevations Fantastic floor to ceiling heights

5 Accommodation We have been advised of the following Net Internal Areas for the premises*: Floor Use Area (Sq Ft) Area (Sq M) Fourth Office 1, Third Office 1, Second Office 2, First Office 1, Ground Office 1, Lower Ground Office 2, ,949 1, *Subject to verification Tenancy The entire building is single let to Scholz & Friends London Limited on a 15 year FR&I lease from 20 th January 2000 until 19 th January 2015, therefore providing 2.2 years unexpired. The current passing rent is 270,575 pa, which devalues to only psf. However, the entire building has been sub-let in accordance with the below schedule: Floor Tenant Area (Sq Ft) Lease Start Lease Expiry Break (T) Rent Review Rent (PA) Rent (PSF) Fourth Moreton Smith Included in LG, Ground, 1 st & 2 nd Floors. Ltd. Third Shaw Industries 1,300 25/11/ /01/ , Outside Inc. Second Moreton Smith 2,040 30/11/ /01/2015 Outside First Ltd. 1,975 03/09/ /01/ ,154 Inc Outside Ground 1,818 4 th Floor Lower Ground 2,402 10, , Act Comments

6 Covenants Head Tenant: Scholz & Friends London Limited Scholz & Friends London Limited, a wholly subsidiary of Scholz & Friends Group GmbH, is one of the leading and largest advertising agencies in Germany and offers a wide range of communication instruments such as PR, digital, design, dialogue and event marketing. Clients include: Vodafone, Carlsberg, Opel, Muller, and Mercedes-Benz. Scholz & Friends is part of Commarco, one of the largest holdings for communications and marketing services in Germany. In turn, Commarco belongs to WPP, the world s leading communication network for advertising, branding and relationship marketing. Further information on Scholz & Friends is available at there website: Further information on Commarco / WPP is available at there website: / Sub-Tenants: Moreton Smith Limited Moreton Smith is an award-winning credit management agency, delivering a one-stop Credit Management Solution to customers in various industries and countries. Founded in 1994, they annually manage over 10 billion of client receivables through their service and software offerings, which support 17 of the FTSE 100 companies. They currently serve over 640 clients in 36 industries, across 123 countries. Whilst being a London-based company, Moreton Smith has worldwide market reach and cater to global clients with a multi-cultural workforce who specialise in over 25 languages. Underlying technology forms the backbone of their service, providing clients with access to innovative credit management solutions without capital expenditure or development costs. Leading global companies within manufacturing, media, telecommunications, banking, insolvency, accountancy, logistics and technology are using the Moreton Smith credit management outsource service on a daily basis to drive improved efficiencies and cash collections. Further information is available at there website: Shaw Industries Inc. Shaw Industries Inc. is the world s largest carpet manufacturer and a wholly owned subsidiary of Berkshire Hathaway Inc. (the holding company of renowned investor Warren E. Buffett). With over 25,000 employees globally, Shaw Industries Inc. are the most award-winning carpet brand in the world and have offices across North America, South America, Asia Pacific, Middle East, Africa and Europe. Further information is available at there website:

7 Tenure The property is held Freehold under Title Number NGL Planning 80 Clerkenwell Road is located within The London Borough of Islington. The building is not listed but is situated within the Clerkenwell Green Conservation Area. Asset Management Opportunities The building offers a number of asset management opportunities to enhance value, including: VAT A comprehensive refurbishment of the offices. We are of the opinion that ERV s for newly refurbished Grade A offices will reflect psf on best space, and 25 psf on the lower ground floor; Potential to obtain a change of use to retail (A1/A2/A3) on the lower ground and ground floors, and residential on the upper floors, subject to obtaining the necessary consents; Repositioning of the plant to create additional accommodation on 3 rd & 4 th floors, subject to obtaining the necessary consents. The property is elected for VAT and as such VAT will be payable on the purchase price. It is envisaged that the sale will be treated as a Transfer Of a Going Concern (TOGC). Proposal We are instructed to seek offers in excess of 5,500,000 subject to contract and exclusive of VAT, reflecting a Net Initial Yield of 4.65% (assuming the deduction of purchasing costs of 5.80%), a reversionary yield of 6.91% based on our assessment of ERV s, and a capital value of 502 psf.

8 Further Information EPC For further information, please contact: 31 Old Burlington Street, Mayfair, London W1S 3AS Adam Velleman David Silver Burlington Partners Burlington Partners E: E: T: T: M: M: David Berko Pilcher Hershman E: T: M: Misrepresentation Clause: Burlington Partners LLP and Pilcher Hershman for themselves, their Associated Companies, their employees and for the vendors or lessors of the properties whose agents they are give notice that:- 1. All particulars or properties provided are given as a general outline only for the guidance of intending purchaser, lessee or tenant, and do not constitute, nor constitute part of, an offer or contract. 2. Whilst all particulars of properties given including but not limited to descriptions, dimensions, references to condition and necessary permissions for use and occupation and maps are believed to be correct and are given in good faith, they are however given without responsibility on the part of Burlington Partners LLP and Pilcher Hershman, their Associated Companies, their employees and or the vendors or lessors as the case may be. 3. None of the statements contained in any particulars is to be relied upon as a statement or representation of fact. 4. Any intending purchaser or lessee or tenant should not rely on any particulars provided by us and must satisfy themselves by inspection or otherwise as to the correctness of each statement made in such particulars. 5. The vendor or lessor (as the case may be) do not make or give and neither Burlington Partners LLP and Pilcher Hershman, their Associated Companies or any person in their employment have any authority to make or give any representation or warranty whatever in relation to any properties. November 2012