EXECUTIVE SUMMARY. Prominent location in the heart of the City. 60% of the income (Executive Offices Group Ltd) benefits from

Transcription

1

2

3

4

5 EXECUTIVE SUMMARY Prominent location in the heart of the City. Extensively refurbished to provide 4, sq m (44,200 sq ft) of office accommodation and a ground floor banking hall. Excellent natural light with elevations to King Street, Cheapside AND Ironmonger Lane. Freehold. Entirely let to two tenants; Barclays Bank Plc AND Executive Offices Group Ltd. Total passing rent of 1,949,326 per annum. 60% of the income (Executive Offices Group Ltd) benefits from 5 yearly RPI rent reviews, collared and capped at 2% AND 4% per annum. Unexpired term certain of over 11 years. Seeking offers in excess of 35,000,000, subject to contract and exclusive of VAT. Net initial yield of 5.26% rising to a minimum of 5.59% in 2017, assuming purchaser s costs of 5.80%. Capital value of 792 per sq ft. 1

6 Grade II listed building occupying a prominent location in the heart of the City of London, only moments from the Bank of England and Bank underground station.

7 The property has recently undergone a significant refurbishment to provide high specification offices and a new ground floor reception.

8 Location/Communications 1 King Street occupies a strategic location in the heart of the City of London, the world s leading international financial and business centre. The proximity of King Street to the Bank of England and its worldwide profile ensures this location is regarded as a prime office location with occupiers nearby including Commerzbank, Standard Bank, Bank of China, Fidessa, Liverpool Victoria, Bank of India, Eversheds and Aviva. The building occupies a substantial site with an extensive frontage to both King Street and Ironmonger Lane and a prominent, recognisable frontage which overhangs Cheapside creating a covered walkway beneath. The property is highly visible from the junction of Queen Street which lies immediately opposite to the south. Tower St Mary Axe Lloyd s of London Bank of England 1 King Street Bloomberg HQ site One New Change St Paul s Cathedral

9

10 West Smithfield Holborn Viaduct Long Lane Giltspur Street Newgate Street Noble Street Gresham Street 5 Fore Street Basinghall Street Coleman Street Moorgate Moorgate Copthall Avenue Finsbury Circus London Wall Old Broad Street Liverpool Street Bishopsgate Aldersgate Street Fleet Passage Old Bailey Ludgate Hill St Paul s Churchyard City Thameslink Rail Farringdon Street Warwick Lane Paternoster Square 1 2 St Paul s St Paul s Cathedral 4 One New Change Watling Street 5 minutes walk Cheapside 3 minutes walk Mansion House Bank Queen Victoria Street Cannon Street Cannon Street King Street Queen Street 1 King Street Poultry Bank of England 6 Cornhill The Royal Exchange 7 Gracechurch Street Fenchurch Street Lloyd s of London 8 Black Friars Lane Queen Victoria Street Cannon Street Monument 7 minutes walk Blackfriars 3 Upper Thames Street King William Street Lower Thames Street Millennium Bridge Blackfriars Bridge Southwark Bridge

11 Location/Communications The location benefits from excellent transport connectivity including: Bank underground station (Central, Northern, Waterloo & City and DLR services) is situated less than 100 metres to the east of the property. Mansion House underground station (District and Circle lines) is only 225 metres to the south of the property. St Paul s underground station (Central line) lies 375 metres to the west of the building. Landmarks st Paul s Cathedral london Stock Exchange millennium Bridge one New Change guildhall the Bank of England the Royal Exchange lloyd s of London London Cannon Street station (Circle and District lines and Mainline services) is situated 400 metres to the south east of the property. Furthermore Cheapside forms the City s main east west vehicular route connecting the Bank of England to St Paul s Cathedral and beyond to Midtown and the West End. 7

12

13 Improvements to Vicinity Office A number of major office developments have taken place in the immediate vicinity which include the redevelopment of 1 Wood Street, Bow Bells House, 1 Old Jewry, 150 Cheapside and 107 Cheapside. Furthermore the redevelopment of 100 Cheapside, which lies opposite the subject property, to provide 95,000 sq ft of office and retail accommodation, is underway and 35 King Street is currently undergoing a major refurbishment to provide 16,800 sq ft of Grade A office accommodation. Retail One New Change has brought significant luxury retail amenities to the area, providing 220,000 sq ft of retail accommodation together with 340,000 sq ft of offices. Anchor retail tenants include Marks & Spencer, Top Shop, Reiss and H&M Hennes. The immediate vicinity has profited from recent capital expenditure by the City of London Corporation courtesy of the Cheapside Retail Initiative to improve the public realm, transforming the landscape between St Paul s Cathedral and Bank junction. Streetscape works have been implemented to provide extra capacity for pedestrians to accommodate additional footfall as this destination aims to secure its position as the prime retail hub for the City. Other retail occupiers in the near vicinity include Tesco, GAP, TM Lewin, Austin Reed and Hugo Boss. Bank Station Upgrade There are plans for a 500m upgrade of the Bank and Monument Tube station complex and four bidders have been shortlisted to implement the plan. The project, which is anticipated to be completed by 2021, will provide increased capacity, a new station entrance, and a step-free route between the Northern line platforms, DLR and the street. Crossrail Crossrail is a major new transport link that will connect Heathrow & Maidenhead in the west with Shenfield & Abbey Wood in the east. It will provide a high frequency, high capacity service across 37 stations and bring an additional 1.5m people within a 45 minute commute of London. Construction on the Crossrail development commenced in 2011 and is due for completion in 2018, with the nearest Crossrail station to the subject property being Liverpool Street station, only a short 10 minute walk to the north east. 9

14 Description 1 King Street comprises a landmark Grade II listed property located moments away from the Bank of England. The property comprises high quality refurbished office accommodation, a ground floor banking hall and storage accommodation providing a total of 4, sq m (44,200 sq ft). Arranged over sub-basement, basement, ground and first to fifth floor levels, the accommodation is configured to provide regular-shaped open plan offices with excellent levels of natural light and views of the City from the upper floors. Originally constructed in 1836 and remodelled in the mid 1940 s, the property is of concrete frame construction with concrete elevations faced in granite and Portland Stone beneath a part slate mansard and part flat asphalt roof. The main office entrance to the ground floor reception area fronts directly onto King Street with the entrance to the banking hall adjacent. The impressive reception area features a new stone floor, marble walls, a feature chandelier, ornate stairwell and three 10 person (800kg) passenger lifts. Internally, the accommodation is served by a central core from the main entrance off King Street whilst a secondary core and stairwell is located to the rear of the property, accessed off Prudent Passage. There is a further secondary entrance to the property, via Ironmonger Lane. 10

15

16

17 Specification Approximately 4,000,000 has been spent during the course of the last 12 months on the refurbishment of the property at mezzanine and 2nd 5th floor levels, and at ground floor reception to provide high specification offices with the typical features as listed adjacent. A detailed breakdown of the refurbishment specification is available in the data room. Typical Features Striking reception area with feature chandelier, stone floor, ornate stairwell and marble walls. 4 pipe fan coil air conditioning supplied with chilled water and low temperature hot water from the central chillers and boilers. VRV fan coil units with outdoor condensing units at roof level. Fully accessible raised floor system. LG7 compliant lighting. New secondary glazing. Three 10 person (800kg) passenger lifts. Fully refurbished male, female & disabled WC facilities in the central core on each floor. Building Management System to control and monitor the M&E service systems. Bicycle spaces with shower facilities at basement level. 13

18 Accommodation The building has been measured by measurement specialist Greenhatch Group Limited and it provides the following net internal floor areas: Floor Level Use Sq m Sq ft 5th Offices ,823 4th Offices ,516 3rd Offices ,132 2nd Offices ,913 Mezzanine Offices ,097 1st Offices ,695 Ground Banking Hall ,159 O offices ,492 Basement Offices ,882 S storage Sub-Basement Storage Total 4, ,200 The measured survey will be assigned. View from balcony on 5th floor at 1 King Street 14

19 Typical Upper Floor Ironmonger Lane Cheapside King Street Ground Floor Ironmonger Lane Banking Hall Cheapside North Banking Hall Entrance King Street Office Entrance

20 Tenure Tenancies The property is held Freehold under title number NGL and provides a site area of hectares (0.243 acres). The approximate extent of the Freehold ownership is shown outlined red on the Ordnance Survey extract. Bank Trump Street King Street Prudent Passage Ironmonger Lane Mercers Hall The property is entirely let to two tenants; Barclays Bank Plc and Executive Offices Group Ltd who account for 40% and 60% of the income respectively. The sub-basement, basement (offices), ground and first floors are let to Barclays Bank Plc on full repairing and insuring terms for a term of 15 years from 25th December 2008 expiring on 24th December The current passing rent is 775,000 per annum and is subject to 5 yearly upwards only rent reviews, the next being on 25th December The basement (storage), mezzanine and 2nd to 5th floors are let to Executive Offices Group Ltd on full repairing and insuring terms on a new 15 year lease from 14th November 2012 expiring on 24th December 2027, with a tenant only break option on 24th December The current rent is 1,174,326 per annum ( psf overall) and is subject to 5 yearly rent reviews linked to RPI, capped at 4% and collared at 2% per annum, such that the rent will increase to a minimum of 1,296,541 per annum in A rent deposit of 1,291, is currently held. Cheapside The total passing rent is therefore 1,949,326 per annum. Freehold NGL

21

22 Tenant Covenant Information Barclays Bank Plc Barclays Bank Plc is a major global financial services provider engaged in personal banking, credit cards, corporate and investment banking, and wealth and investment management, with an extensive international presence in Europe, the Americas, Africa and Asia. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs approximately 140,000 people. The company is rated 5A1 by Dun & Bradstreet, indicating a minimum risk of business failure. For the last three years they have reported the following figures: Barclays Bank Plc Company No ( 000s) ( 000s) ( 000s) Turnover 43,102,000 41,228,000 41,020,000 Pre-Tax Profit 5,974,000 6,079,000 4,559,000 Net Worth 54,232,000 50,477,000 47,130,000 18

23 Executive Offices Group Ltd Executive Offices Group Ltd is the premier owner/operator of high quality serviced office properties in Central London. The group operates four unique serviced office brands: argyll, which is EOG s five star brand, and operates exclusively from self-contained office buildings. Palladia, which provides superior quality contemporary serviced offices. Corpnex provide mid-market modern serviced offices. Grosvenor Serviced Offices, which offers a range of prestigious serviced offices located on the Grosvenor Estate. Executive Offices Group Ltd Company No ( ) ( ) ( ) Turnover 18,922,470 14,369,104 16,029,807 Pre-Tax Profit 585, ,773 1,913,127 Net Worth 2,187, ,708 8,676,833 EOG own 39% of the accommodation in which they operate, including a portfolio of 12 London office buildings, nine of which are located in prime West End locations. They are rated 2A1 by Dun & Bradstreet, representing a minimum risk of business failure. For the last three years they have reported the following figures: 19

24 Further Information Planning The property is Grade II listed and is situated within the Guildhall Conservation Area. Environmental The building has achieved a SKA Rating of Silver. SKA Rating is an environmental assessment method, benchmark and standard for non-domestic fit-outs, led and owned by the RICS. Service Charge Barclays Bank Plc is currently responsible for 40.05% of the service charge, while Executive Offices Group Ltd is responsible for the remaining 59.95%. Further information is available on request. Capital Allowances There are substantial capital allowances available by way of separate negotiation. VAT The property is elected for VAT and therefore VAT will be payable on the purchase price. It is anticipated that the sale of the property will be treated as a Transfer of a Going Concern (TOGC). Warranties The purchaser will benefit from all available warranties in respect of the refurbishment programme. Proposal We are instructed to seek offers in excess of 35,000,000, subject to contract and exclusive of VAT. This provides a purchaser with a net initial yield of 5.26%, rising to a minimum of 5.59% in 2017, after the deduction of acquisition costs of 5.80%. An acquisition at this level reflects a capital value per sq ft of 792. Data Room An electronic data room has been created, the contents of which include: Title documents Occupational leases/occupational documents Planning information Area Measurement Report Energy Performance Certificate Electronic copy of the sales particulars Detailed breakdown of refurbishment specification For access to the data room, please contact Tudor Toone. EPC Energy Performance Certificate 20

25 Contacts For further information or to arrange an inspection of the property please contact: Ben Goodberry Tel: Mob: A sale on behalf of: Hugh Faith Tel: Mob: Misrepresentation Act 1967 Tudor Toone LLP, for itself and for the vendors of this property, hereby give notice that: (I) These particulars do not constitute, nor constitute any part of, an offer or contract. (II) Tudor Toone LLP and its members accept no legal responsibility for any statement or representation whether written, oral or implied or whether contained in any advertisement particulars or other matters issued or any correspondence entered into by them and whether made in any antecedent present or subsequent enquiries or negotiations. (iii) Neither Tudor Toone LLP nor their principals, members, agents, servants or representatives have any authority whatsoever to make or give any representation or warranty whatsoever whether written or implied in relation to this property. (iv) Any intending purchaser must satisfy himself by inspection or otherwise as to the correctness of any antecedent present or subsequent statements or representations, and should not rely upon the same unless he has satisfied himself accordingly. (v) Unless otherwise stated all prices and rents are quoted exclusive of value added tax (VAT). Any intending purchasers or lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction. Subject to contract and exclusive of VAT. Tudor Toone LLP is a limited liability partnership registered in England and Wales with registered number OC Registered office: 41/43 Maddox Street London W1S 2PD Designed & produced by Sectorlight ( ) +44 (0) sectorlight.com December 2012

26

27

28

29

30