MIDDLESEX STREET, LONDON E1 PROMINENT CITY OF LONDON FREEHOLD WITH ASSET MANAGEMENT OPPORTUNITIES

Transcription

1 MIDDLESEX STREET, LONDON E1 PROMINENT CITY OF LONDON FREEHOLD WITH ASSET MANAGEMENT OPPORTUNITIES

2 EXECUTIVE SUMMARY 2 Situated on the north side of Middlesex Street approximately 150 metres from Liverpool Street Station, Bishopsgate and the Broadgate Estate and approximately 250 metres to the south of the Spitalfields Estate. Tower 42 Freehold. Willis Building 125 Old Broad Street Constructed in 1989 to comprise three interconnected buildings totalling approximately 48,064 sq ft (4,465 sq m) of Grade A specified office, restaurant and ancillary accommodation. Swiss Re Tower Aviva Tower 99 Bishopsgate Drapers Gardens Typical office floors range between 1,350 sq ft (125 sq m) and 4,150 sq ft (386 sq m) providing flexible office accommodation with excellent natural light. 100 Bishopsgate Heron Tower Dashwood House Multi-let to 10 tenants on leases to expire between 2013 and The weighted average lease term to expiry is approximately 6.50 years. Liverpool Street Broadgate The rent is 1,468,306 per annum equating to a low rent of per sq ft overall. Devonshire Square Considerable asset management opportunities with well timed lease events. Nido Offers in excess of million, subject to contract, which reflects an initial yield of 6.75% and a low capital value of 428 per sq ft, assuming purchaser s costs of 5.80%. 250 & 280 Bishopsgate Bishops Square

3 LOCATION & COMMUNICATIONS Middlesex Street is located on a prominent island site on the north side of Middlesex Street at its junction with Widegate Street approximately 150 metres from Liverpool Street Station, Bishopsgate and the Broadgate Estate and approximately 250 metres to the south of the Spitalfields Estate. Broadgate 250 Bishopsgate The immediate area is an established City of London location with the Broadgate complex to the west and Devonshire Square to the south. The area has further benefited from the ongoing expansion of the Spitalfields Estate around Bishops Square and more recently through the redevelopment of the adjoining site, to provide a mixed use office and University complex. 10 Bishops Square The surrounding area is dominated by major occupiers to include RBS, HBOS, Henderson, AON, Allen & Overy and Credit Suisse. There are a number of ongoing and planned development schemes within close vicinity of Middlesex Street including extremely high profile tower developments. The building benefits from excellent transport communications provided by the following: Station Distance Services Liverpool Street 150 m National Rail, Central, Circle, Hammersmith & City, Aldgate East 350 m District, Hammersmith & City Aldgate 400 m Circle, Metropolitan Moorgate 600 m National Rail, Circle, Hammersmith & City, Bank 800 m Central, DLR, Northern, Waterloo & City Bishops Square Spitalfields Market W I L S O N ST R E ET S U N ST R ET E P R I M RO S E ST FO LG AT E ST R E ET S P I TA L S Q U A R E London Fruit & Wool Exchange M O O RG AT E E L D O N ST CO M M E RC I A L ST R E ET Devonshire Square Nido FINSBURY CIRCUS LO N D O N WA L L T H RO G MO RTO N AV E OL D B RO A D ST R E ET L I V E R P O O L ST B I S H O P S G AT E B E V I S M A R K S ST M ARY A X E H O U N D S D I TC H M IDD L E S E X S T R E ET S T BOTO L PH ST Not to scale. Indicative only.

4 MIDDLESEX STREET LONDON E1 ACCOMMODATION DESCRIPTION SPECIFICATION REFURBISHMENT Middlesex Street comprises approximately 48,064 sq ft (4,465 sq m) of Grade A specified office, restaurant and ancillary accommodation arranged over lower ground, ground and five upper floors on 110 & 112 and four upper floors on 114. The property was originally developed in 1989 by AMEC Developments and comprises three adjoining office buildings, each benefiting from its own entrance on Middlesex Street with dedicated reception area and individual lift/stair core. 110 & 114 is each served by two 8 person passenger lifts and 112 by a single 8 person passenger lift. The property benefits from highly flexible floorplates which are suitable for open plan or cellular occupation, with a typical mid level floorplate as follows: 110 Middlesex Street - 4,150 sq ft (386 sq m) 112 Middlesex Street - 1,350 sq ft (125 sq m) 114 Middlesex Street - 3,000 sq ft (279 sq m) A laterally integrated floor (as per 2nd floor occupied by McGregor Boyall) comprises approximately 8,500 sq ft (790 sq m). Some upper floors also benefit from their own roof terraces. The restaurant accommodation is accessed via Widegate Street. Internally the office accommodation provides the following overall specification: Four pipe fan coil air conditioning system Metal tile suspended ceilings with recessed lighting 5 eight person passenger lifts Raised floors The building has been subject to a rolling refurbishment programme over the last 3 years to include both common parts, mechanical and electrical equipment and individual demises to include: Refurbishment of the 5th floor 110/112 Refurbishment of the 4th floor 112/114 Refurbishment of the 3rd floor 110/114 Refurbishment of the 1st floor 112/114 Refurbishment of all receptions and WC s 110/112/114

5 FLOOR AREAS FLOORPLANS 5 We understand that the building comprises the following net internal floor areas: Building Floor Sq Ft Sq M 5th 2, th 3, rd 4, Middlesex 2nd 4, Street 1st 4, Ground 3, Lower Ground 3, Sub Total 25,553 2,374 5th th 1, rd 1, Middlesex 2nd 1, Street 1st 1, Ground Lower Ground Sub Total 7, th 1, rd 2, nd 3, Middlesex 1st 3, Street Ground 1, Lower Ground 1, Sub Total 13,426 1,247 Ground Widegate Street Lower Ground Sub Total 1, TOTAL 48,064 4,465 TYPICAL UPPER FLOOR GROUND FLOOR Office Restaurant Reception Core Not to scale. For identification purposes only

6 TENURE & TENANCIES KEY INVESTMENT CONSIDERATIONS 6 TENURE The building is held freehold. TENANCIES The property is let in accordance with the tenancy schedule overleaf and summarised below: Office The office accommodation is let to 10 tenants on leases with tenant breaks or expiries between December 2011 and July The average weighted lease term to expiry is circa 6.50 years. The 3rd floor of 114 comprising approximately 2,583 sq ft (240 sq m) is under offer at per sq ft. The rent on the office accommodation is 1,418,306 per annum which equates to per sq ft overall. Retail The retail accommodation is let to Sri Thong on a lease expiring in September 2018 at rent of 50,000 per annum equating to per sq ft overall. The rent rises to 55,000 per annum in September Summary The total rent is 1,468,306 per annum exclusive equating to per sq ft overall Middlesex Street provides an opportunity to acquire a high quality office and retail building in the City of London with considerable asset management potential. Prominent City location close to the border of EC2/EC3. Freehold. Highly flexible office accommodation capable of occupation as self contained buildings or providing larger floor plates through lateral integration. Office accommodation with a weighted average lease term to expiry of approximately 6.50 years. Historically high degree of tenant retention. Considerable asset management opportunities with well timed lease events between 2011 and Attractive initial yield of 6.75%. Low capital value of 428 per sq ft. Managers Office Indicative tenancy profile Refurbished 3rd floor Middlesex Street

7 7 TENANCY SCHEDULE Building Floor Tenant Area (N.I.A) Term Start Date Expiry Date Break Date Rent Review Rent Passing Per Sq Ft Comments 110 2,217 5th Activtrades Mar Feb Feb-12-81, Initial service charge cap 33,900 per annum RPI base figure Tenant provided Barclays bank guarantee on completion up to 11,695 The tenant has activated their break 110 4th Phoenix Partners Group LLP 3, Sep Sep Sep , Further 6 months rent free if tenant does not exercise break Initial service charge cap 49,650 per annum RPI base figure rd Ocaso SA 4, Sep Sep Sep , Initial service charge cap 51,525 per annum RPI base figure Jan st 4,198 Grd QA-IQ 3,326 Base 3, ,184 4th Idealing 114 1, Sep Sep Sep , Initial service charge cap 137,375 per annum RPI base figure Sep Aug-18 1-Sep Jun , Initial service charge cap (including 114 premises) 37, per annum RPI base figure rd Harley Mullion 1, Dec-08 3-Dec-13 4-Dec-11-40, The tenant has activated their break. Will be guiding per sq ft 112 1,346 1st ADT Group Plc 114 3, Dec Dec Dec Dec , Current rent free infilled by Vendor 16 month rent penalty if tenant breaks Initial service charge cap 55,175 per annum RPI base figure Grd Abovenet Communications Dec Dec Dec-12 28, Rent deposit lodged 23,115 plus VAT 112 Base Vacant rd Under Offer 2, rd Year - 90, nd 4, nd 1,346 McGregor Boyall 114 2nd 3, Grd 1,370 Circa 300 sq ft is occupied by Ocaso SA on a licence for rates and service charge only. Rent free to be infilled by vendor. Further 3 months rent free if tenant does not exercise break. 3 month rent deposit. Service charge cap at 33,579 per annum plus RPI Jul Jul Jul , Initial service charge cap 128,368 per annum RPI base figure Base McGregor Boyall Jul Jul Jul-15 6, Current rent free infilled by Vendor then open market review capped at 6,840 per annum Initial service charge cap 8,796 per annum RPI base figure Base Managers Office Not rentalised but could be used for storage. 114 Base Vacant Widegate Street Sri Thong 1, Sep Sep Sep-13 50, Rent rising to 55,000 per annum in year Sept 2012 Total 48,064 1,468,

8 PROPOSAL Offers in excess of million (Twenty Million Five Hundred and Sixty Thousand Pounds Sterling), subject to contract and exclusive of VAT, which reflects an initial yield of 6.75% and a low capital value of 428 per sq ft, assuming purchaser s costs of 5.80%. VAT The property is elected for VAT and it is envisaged that the sale will be treated as a TOGC. FURTHER INFORMATION For further information or to arrange an inspection, please contact: Richard Garside Richard.Garside@gva.co.uk Tel: James Hiatt James.Hiatt@gva.co.uk Tel: GVA is the trading name of GVA Grimley limited, conditions under which particulars are issued by GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. (ii) all descriptions, dimensions, references to condition and necessary permission for use and occupation, and other details, are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. (iii) no person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property. (iv) all rentals and prices are quoted exclusive of VAT. The date of this publication is October (Q1891) Thomas Hood Thomas.Hood@gva.co.uk Tel: