ALIE STREET LONDON E1 HIGHLY REVERSIONARY MULTI-LET CENTRAL LONDON INVESTMENT
INVESTMENT Summary Prominent corner building in Aldgate, one of London s fastest developing sub-markets Situated close to Crossrail stations at both Liverpool Street and Whitechapel High level of local amenity including retail, hotel, restaurant, leisure and bar uses associated with high end residential areas 104,483 sq ft (9,706.6 sq m) of office, retail and ancillary accommodation over basement, ground and six upper floors Multi-let office and retail income, with an AWULT of 2.5 years in respect of the offices Flexible office accommodation with typical floor plates of between 12,600 sq ft to 18,600 sq ft Roof terraces at 4th, 5th and 6th floors Site area of 0.75 acres Total gross passing rent of 1,913,078 per annum, reflecting 18.31 per sq ft overall, providing an excellent opportunity for future rental growth Net income of 1,817,424 per annum Prime rents in the location are circa 50.00 per sq ft Opportunity to reposition via refurbishment, extension or redevelopment A new 150 year leasehold interest is available from the Corporation of London, at an annual rent equating to 5% of rents receivable Offers sought in excess of 38,000,000 subject to contract Capital value of only 364 per sq ft Net initial yield of 4.52%
LOCATION 1 Alie Street occupies a highly visible site on the corner of Mansell Street and Alie Street in Aldgate. Aldgate is an extremely exciting London village, where transport improvements and the continued expansion of the City eastwards are triggering significant mixed use development, and creating a vibrant new commercial quarter right next to the City of London. New landmark schemes include Berkeley s Goodman s Fields, a mixed use seven acre development which includes six towers arranged around a central plaza with circa 900 residential units, 617 student rooms, a 250 room hotel and over 100,000 sq ft of retail and commercial space. Also Minories London, a mixed use scheme by 4C Hotels, comprises a 195,000 sq ft office building, 380 room Hilton hotel, 87 residential apartments and a new landscaped park. The area is popular with both domestic and international occupiers and is becoming an increasingly popular location for art, fashion, technology, music and creative industries due to the strong lifestyle and cultural attractions of the locality. Companies now located in the area include Tag Worldwide, Uber, Level 3, Thomson Reuters, Digital Window, Exponential-E, Wavex Technology, Bright North, The Collective, Future Foundation, LCH Clearnet and BskyB. Some of London s key cultural attractions situated nearby include Whitechapel Art Gallery, Brick Lane, St Katharine Docks and Spitalfields, whilst restaurants and bars such as Fogg s Kitchen & Bar, Sonargon, Moo Grill and La Pietra are located within a short walking distance. In the adjoining Whitechapel area, the Local Authority has promoted and adopted the Whitechapel Vision which promotes comprehensive regeneration and investment in the short, medium and long term. A new Crossrail station is under construction and will provide a significant improvement to the transport infrastructure and accessibility to the area.
1 Alie Street occupies a highly visible site IN ALDGATE, ONE OF LONDON S FASTEST DEVELOPING SUB-MARKETS
TRANSPORT LINKS HEATHROW 40 MIN PADDINGTON 20 MIN BAKER STREET 15 MIN EUSTON 16 MIN KINGS CROSS ST PANCRAS 9 MIN FARRINGDON 6 MIN MOORGATE 3 MIN LIVERPOOL STREET 1 MIN STRATFORD WESTFIELD CITY OLYMPIC PARK 15 MIN BAKERLOO CENTRAL CIRCLE DISTRICT HAMMERSMITH & CITY JUBILEE METROPOLITAN NORTHERN PICCADILLY VICTORIA WATERLOO & CITY DLR CROSSRAIL MAINLINE BOND STREET 18 MIN OXFORD CIRCUS 16 MIN VICTORIA 16 MIN CHARING CROSS 16 MIN BLACKFRIARS 7 MIN CANNON STREET 4 MIN ALDGATE BANK 3 MIN CANARY WHARF 22 MIN 1 Alie Street is very well located for access to transport, being situated in close proximity to a number of London Underground and mainline stations which provide quick links to the rest of London and to the wider South East. Liverpool Street 950 metres Fenchurch Street 650 metres Aldgate 290 metres Aldgate East 300 metres
LIVERPOOL STREET Heron Tower BISHOPSGATE WENTWORTH STREET COMMERCIAL STREET BRICK LANE BRICK LANE WHITECHAPEL ROAD THE CITY 30 St Mary Axe LEADENHALL HOUNDSDITCH BEVIS MARKS STREET ALDGATE MIDDLESEX STREET ALDGATE ALDGATE EAST ALDGATE HIGH STREET WHITECHAPEL HIGH STREET ALIE STREET COMMERCIAL ROAD GOODMAN S FIELDS LEMAN STREET FENCHURCH STREET MANSELL STREET MINORIES FENCHURCH STREET PRESCOT STREET GREAT TOWER STREET TOWER HILL TOWER GATEWAY ROYAL MINT STREET WAPPING Not to scale, indicative only CROSSRAIL Crossrail will call at Liverpool Street station from 2018 and provide an interchange between the London Underground network and National Rail services. 1 Alie Street is situated to benefit significantly from the Crossrail network, being within walking distance of Liverpool Street station. The east-west rail link will cross Central London linking Reading and Heathrow in the west to Shenfield and Abbey Wood in the east. It is estimated that the new service will carry around 200 million passengers each year providing a 10% increase in rail capacity to London. Journey times from Liverpool Street to key destinations will be improved as follows: Liverpool Street to CANARY WHARF 19 6 WHITECHAPEL 5 2 FARRINGDON 4 2 TOTTENHAM COURT ROAD 8 4 BOND STREET 11 7 PADDINGTON 19 10 HEATHROW 39 35 Current Proposed
9 & 16 Prescot Street Derwent London/ LaSalle Investment Management Minories Estate 4C Hotels Braham Street Park Tower Hamlets LOCAL DEVELOPMENT 1 Commercial Street Redrow / Angelo Gordon Aldgate Tower Aldgate Developments
Goodman s Fields Berkeley Homes ACTIVITY to The Aldgate area has recently seen significant investment and development; there are several new high profile developments in close proximity 1 Alie Street Matrix, Aldgate High Street Dorsett Hospitality The Goodman Building, Alie Street Royal College of Pathologists
THE PROPERTY 1 Alie Street is a substantial corner building BENEFITING FROM EXCEPTIONAL NATURAL DAYLIGHT. The building comprises 104,483 sq ft (9,706.6 sq m) of office, retail and ancillary accommodation arranged over basement, ground, and six upper floors. There are three retail units on the ground floor; the main retail frontage is on Mansell Street, with a return frontage to Alie Street. The office accommodation is accessed from Alie Street; a large double height reception leads to the principal core and four passenger lifts which serve all office floors. Floor plates range between 12,600 sq ft to 18,600 sq ft, configured around a central core. A secondary core is located on the east side of the building. The north elevation overlooks a service yard, with vehicle access from Alie Street and Halfmoon Passage. The main reception and common parts were remodelled in 2005-2006. SPECIFICATION The building benefits from the following modern specification: VAV air conditioning Suspended ceilings Fully accessible raised floors Excellent natural light Double glazing Finished floor to ceiling heights of 2.70 metres Four x 13 person passenger lifts together with two goods lifts Fully DDA compliant Male and female WCs on each floor Kitchen areas on all upper floors Shower facilities 32 secure bicycle racks Secure car parking for 18 cars
ACCOMMODATION The property is currently configured as office suites of between 158 sq ft - 6,035 sq ft. The building has been measured by Plowman Craven in accordance with the RICS Code of Measuring Practice (6th Edition), and the floor areas are calculated as follows: Floor Accommodation Area NIA Area NIA Sq m Sq ft Sixth Office 683.6 7,358 Fifth Office 1,171.0 12,605 Fourth Office 1,421.2 15,298 Third Office 1,730.4 18,626 Second Office 1,680.5 18,089 First Office 1,556.4 16,753 Ground Reception 167.7 1,805 Ground Office 410.4 4,418 Ground Storage/Ancillary 17.7 190 Ground Retail 773.3 8,324 Basement Storage 94.4 1,017 Total 9,706.6 104,483 Car parking is provided for 18 cars together with 32 bicycle racks.
FLOOR PLANS GROUND FLOOR UNIT 1 SECOND FLOOR MANSELL STREET MANSELL STREET UNIT 2 UNIT 3 PLANT PLANT RECEPTION ALIE STREET OFFICE OFFICE ALIE STREET FIFTH FLOOR MANSELL STREET PLANT OFFICE ALIE STREET Not to scale, Indicative only
10 20 4 5 LE TENURE Und Aldgate Tower Sedgwick Centre cle re Station Posts Maersk House CAMPERDOWN STREET A new long leasehold interest for a term of 150 years from the City of London Corporation, at an annual rent of 5.00% of rents receivable (subject to a minimum rent). HALFMOON PASSAGE 6 BRAHAM STREET Standon House Half Moon Passage 25 Central House 25 The site area is approximately 0.30 hectares (0.75 acres). 21 17 19 PH 21 9 CR 23 ALIE STREET 1 26 2 28 A MANSELL STREET 27 33 22 6a 14 18 16 Lattice House 8 6 8 10 to 12 Network House 12 6 El Sub Stas 55 NORTH TENTER STREET Not to scale. For identification purposes only. This plan is based upon an Ordnance Survey Map with the sanction of the controller of H.M. Stationery Office. Crown Copyright reserved. 18 16 14 Guinness Court TENTER PASSAGE 1 to 143 ST M 31 57
TENANCIES 1 Alie Street is a multi-let office and retail investment generating a gross income of 1,913,078 per annum, equating to only 18.31 per sq ft overall. The current income after the deduction of the head rent is 1,817,424 per annum. Awult To Breaks Awult To Expiries Office 1.5 years 2.5 years Retail 11 years 11 years Overall 2 years 3 years The majority of the leases are outside the security of tenure provisions contained in sections 24 to 28 of the Landlord & Tenant Act 1954. The property is let in accordance with the tenancy schedule overleaf.
TENANCY SCHEDULE Unit Description Unit Type Net area (sq ft) Lease Start Date Rent Review Lease End Date Break Date Annual Rent Rent psf (Headline) Outside LTA Comments East Wing (Offices) Office 4,370 01/11/2015 06/03/2019 31/10/2023 101,603 23.25 Rent deposit (8334/unit 4) West Wing Shop 3 (8334/90) Retail 4,467 22/05/2013 21/05/2028 78,173 17.50 West Wing Shop 2 Retail 2,906 07/11/2014 06/11/2024 70,000 24.09 West Wing Shop 1 (8334/unit 1) Retail 1,292 11/12/2013 11/12/2018 10/12/2023 46,000 35.60 Y Rent deposit Rent year 1: 45.000 year 2: 46.000 year 3: 47,000 year 4: 48,000 year 5: 49,000 Room 607 Office 158 29/11/2014 28/11/2015 8,351 30.00 Y Rent deposit Rent inclusive of rates, service charge and insurance. Room 606 166 05/03/2015 25/03/2017 4,980 30.00 6th Floor Roof Terrace Terrace 27/03/2013 03/03/2018 1,700 Y Rent deposit Room 604-605 Office 564 04/03/2013 03/03/2018 14,664 26.00 Y Rent deposit Room 603 Office 501 03/12/2012 02/12/2017 02/12/2015 12,525 25.00 Y Rent deposit Suite 601 Roof Terrace Office 4,737 08/06/2012 08/06/2015 24/06/2017 07/06/2015 126,279 26.66 Y Rent deposit Room 511-513 + Terrace Office 4,250 26/03/2012 24/03/2016 25/03/2014 81,273 19.12 Y Room 510 Adjoining Roof Office 2,413 24/07/2012 24/06/2015 51,901 21.51 Y Rent deposit Terrace Room 509 Office 931 25/12/2014 24/12/2019 22,344 24.00 Y Rent deposit Room 508 Office 503 25/06/2010 23/06/2015 25/06/2013 9,789 19.46 Y Rent deposit Room 507 Office 397 24/06/2014 23/06/2017 9,528 24.00 Y Rent deposit Room 506 Office 233 25/12/2011 24/12/2016 24/12/2014 5,126 22.00 Y Rent deposit Room 501/505 Roof Terrace Office 1,820 25/12/2011 24/12/2016 24/12/2014 40,040 22.20 N Rent deposit Room 417, 4th Floor Office 293 25/06/2014 24/06/2019 6,593 22.50 Y Rent deposit Room 416, 4th Floor Office 413 18/12/2014 17/12/2019 17/12/2017 11,771 28.50 Y Rent deposit Room 415, 4th Floor Office 415 26/11/2012 25/11/2017 25/11/2015 8,923 21.50 Y Rent deposit Room 414, 4th Floor Office 972 18/10/2010 17/10/2015 20,898 21.50 Y Rent deposit Room 412/413, 4th Floor + Adjoining Roof Terrace Office 2,602 10/07/2013 24/12/2017 17/10/2015 55,943 21.50 Y Rent deposit. Roof terrace 18/10/2010-17/10/2015 Room 410/411, 4th Floor Office 3,046 25/10/2012 25/10/2017 24/10/2015 65,489 21.50 Y Rent deposit Room 409, 4th Floor Office 925 01/02/2013 31/01/2018 31/01/2016 20,350 22.00 Y Rent deposit Room 408, 4th Floor Office 749 25/06/2014 24/10/2017 16,853 22.50 Y Rent deposit Room 407 Office 558 25/03/2015 24/03/2016 15,624 28.00 Y Room 406 Office 277 14/02/2013 13/02/2016 6,233 22.50 Y Room 405 Office 259 21/10/2011 28/09/2016 20/10/2014 5,374 20.75 Y Rent deposit Room 404 Office 206 01/08/2014 23/06/2017 4,635 22.50 Y Rent deposit Room 402/403 Office 1,126 16/02/2015 15/02/2020 32,100 28.51 Y Rent deposit Room 401 Office 522 06/02/2012 25/03/2017 05/02/2014 10,440 20.00 Y Rent deposit Room 312, 3rd Floor Office 1,150 19/09/2014 18/09/2019 18/09/2017 23,000 20.00 Y Rent deposit Room 311, 3rd Floor Office 1,730 12/03/2012 12/03/2015 24/06/2017 34,600 20.00 Y Rent deposit Room 309/310, 3rd Floor Office 3,068 30/09/2012 29/09/2017 29/09/2015 61,360 20.00 Y Rent deposit Room 307/308, 3rd Floor Office 3,024 25/06/2012 23/06/2017 24/06/2015 61,844 20.45 Y Rent deposit Room 306, 3rd Floor Office 1,981 07/03/2014 06/03/2019 06/03/2017 44,573 22.50 Y Room 305, 3rd Floor Office 1,793 25/12/2014 24/12/2017 24/12/2016 43,032 24.00 Y Rent deposit Room 304, 3rd Floor Office 1,143 18/03/2014 17/03/2019 17/03/2017 25,750 22.53 Y Rent deposit Room 303, 3rd Floor Office 565 18/03/2014 24/12/2016 12,430 22.00 Y Room 302, 3rd Floor Office 464 18/06/2013 17/06/2018 17/06/2016 9,430 20.32 Y Rent deposit Room 210, 2nd Floor Office 1,152 25/06/2013 24/06/2018 24/06/2016 23,328 20.25 Y Room 209, 2nd Floor Office 3,250 26/03/2012 24/03/2017 65,000 20.00 Y Rent deposit Room 208, 2nd Floor Office 1,554 22/08/2012 23/06/2017 21/08/2015 33,411 21.50 Y Rent deposit. Rent free 22/08/2015-21/10/2015 Room 206/207, 2nd Floor Office 3,032 07/05/2013 Cap 13 psf 06/05/2018 63,675 21.00 Y Room 205, 2nd Floor Office 1,492 25/12/2013 24/12/2018 24/12/2015 33,570 22.50 Y Rent deposit Room 204, 2nd Floor Office 1,266 25/03/2012 24/03/2017 25/03/2015 25,320 20.00 Y Rent deposit Room 203, 2nd Floor Office 1,847 03/09/2010 28/09/2015 03/09/2013 38,787 21.00 Y Rent deposit Room 202, 2nd Floor Office 995 01/05/2012 28/09/2015 29/09/2013 20,895 21.00 Y Rent deposit Room 201, 2nd Floor Office 484 29/09/2013 28/09/2018 28/09/2016 10,406 21.50 N Room 107/110 Office 6,035 13/07/2012 12/07/2017 120,720 20.00 Y Rent deposit Room 106 Office 2,812 25/12/2013 24/12/2015 63,270 22.50 Y Rent deposit Room 105 Office 2,815 18/11/2011 18/11/2012 24/12/2016 57,706 20.50 Y Rent deposit Room 104 Office 525 08/05/2012 24/06/2016 11,288 21.50 Y Rent deposit Room 103 Office 551 24/06/2013 23/06/2016 23/06/2018 23/06/2016 12,260 22.25 Y Rent deposit. Fixed uplift 20/06/2016-12,673 Room 102 Office 502 25/12/2013 24/12/2015 11,295 22.50 Y Rent deposit Room 101 Office 816 16/06/2011 23/06/2016 17,544 21.50 Y Rent deposit
Unit Description Unit Type Net area (sq ft) Lease Start Date Rent Review Lease End Date Break Date Annual Rent Outside LTA Comments 1 Motor Cycle Parking Space Car Parking Space 0 1 Motor Cycle Parking Space Car Parking Space 0 07/01/2013 500 Licence - determined by either party with 1 month s notice 1 Motor Cycle Parking Space Car Parking Space 0 1 Motor Cycle Parking Space Car Parking Space 0 01/10/2012 500 Licence - determined by either party with 1 month s notice 1 Car Parking Space Car Parking Space 0 07/04/2014 1,200 Licence - determined by either party with 1 month s notice 1 Car Parking Space Car Parking Space 0 20/03/2014 1,200 N Licence - determined by either party with 1 month s notice 1 Car Parking Space Car Parking Space 0 07/04/2014 1,200 N Licence - determined by either party with 1 month s notice 1 Car Parking Space Car Parking Space 0 1 Car Parking Space Car Parking Space 0 15/01/2014 1,402 N Licence - determined by either party with 1 month s notice 1 Car Parking Space Car Parking Space 0 18/11/2013 1,500 N Licence - determined by either party with 1 month s notice 1 Car Parking Space Car Parking Space 0 18/06/2014 2,500 N Licence - determined by either party with 1 month s notice 1 Car Parking Space Car Parking Space 0 21/04/2008 2,000 N Licence - determined by either party with 1 month s notice Store Room 6 Basement Storage 116 14/11/2012 24/10/2017 24/10/2015 1,200 Y Store Room 5 Basement Storage 155 19/10/2012 07/06/2015 24/06/2017 08/06/2015 1,550 Y Store Room 2 Basement Storage 331 07/05/2013 06/05/2018 2,750 Y Rent deposit Store Room 1 Basement Storage 181 02/10/2012 02/10/2013 01/10/2014 1,800 Y Lease renewal pending 1,810 Server Cabinet UPS Room 2 0 1,000 Under offer Server Cabinet UPS Room 2 0 22/03/2011 780 Server Cabinet UPS Room 2 0 Server Cabinet UPS Room 2 0 Server Cabinet UPS Room 2 0 Patch Cable UPS Room 2 0 1 Car Parking Space Car Parking Space 0 1 Car Parking Space Car Parking Space 0 1 Car Parking Space Car Parking Space 0 1 Car Parking Space Car Parking Space 0 1 Car Parking Space Car Parking Space 0 2 Car Parking Spaces Car Parking Space 0 2 Car Parking Spaces Car Parking Space 0 1 Car Parking Space Car Parking Space 0 2,000 Room 301, 3rd Floor Office 457 Store Room 3 Basement Storage 106 Store Room 4 Basement Storage 1,807 Store Room 7 Basement Storage 344 Store Room 8 Basement Storage 267 TOTAL 89,881 1,913,078 LENGTH OF REMAINING OFFICE INCOME INCOME BY SECTOR OVER 4 YEARS UP TO 4 YEARS UP TO 3 YEARS UP TO 2 YEARS UP TO 1 YEAR 0% 5% 10% 15% 20% 25% 30% PERCENTAGE OF INCOME OFFICE INCOME RETAIL INCOME PARKING
ASSET MANAGEMENT 1 Alie Street presents numerous asset management opportunities. These are based on strong tenant demand for space in the location, the flexibility of office space on offer and the low level of passing rent. Potential for lease restructuring with existing tenants to provide longer term income and higher rents. Capitalisation of the forecast rental growth prospects for the Central London market. Undertake refurbishment of the current accommodation upon lease expiries, to deliver attractive floor plates into an occupational market characterised by increasing tenant demand and limited availability. Potential to create additional floor area (subject to planning and headlease). Floor plates at levels 4, 5 and 6 could be extended out to the building line, infilling the roof terraces. Extra floor area could also be created at the ground floor by infilling the vehicle drop off area at the entrance of the building (subject to planning and headlease). Create additional net lettable space by removing a number of internal corridors and opening up the office floor plate. PLANNING 1 Alie Street is located within the London Borough of Tower Hamlets. The property is neither listed nor is it situated within a Conservation Area. The 1987 planning permission allowed for the construction of a seven storey building comprising offices, ancillary parking and storage (PA/87/01072). In 2011 planning permission was granted to change the ground floor use from Class B1 to mixed use comprising A1 (retail), A3 (restaurant) B1 (offices) and D1 (medical facility). 1 Alie Street is located within the Aldgate Masterplan area (2007), which recognises the area as having tremendous regeneration potential. The Aldgate area is undergoing substantial change at present, with a view to encouraging economic and social regeneration and accommodating future growth through several infrastructure and development projects. Certain works have already been completed, such as the new Braham Street Park immediately adjacent to the property which is built on a site formerly occupied by the Aldgate gyratory traffic system. This 160 metre long public space includes grassed and planted areas, water features and seating, creating much needed additional green space. Further changes should take place in the period leading up to 2016, with major improvements to traffic flow and public realm planned including a new public space centred on the Sir John Cass Foundation Primary School and the St Botolph without Aldgate Church. Further projects will include improvements to cycling and pedestrian routes, introduction of greenery and public space and improved street lighting.
SERVICE CHARGE DATAROOM The service charge budget for the year ending 2015-2016 is estimated to be 11.83 per sq ft. VAT We understand that the property has been elected for the purposes of VAT. An online data room can be accessed at www.onealiestreet.co.uk The data room contains the following additional information:- Measured survey Floor plans Energy Performance Certificates Rateable Values Service Charge information
PRICING Offers for the new long leasehold interest are sought in excess of 38,000,000 (Thirty Eight Million Pounds), subject to contract and exclusive of VAT. Assuming purchaser s costs of 5.80%, this reflects a net initial yield of 4.52%, and a low capital value of 364 per sq ft.
CONTACT If you would like the opportunity to inspect the property, or if you require any further information, please contact: Sean Howes T: 020 3296 2022 E: sean.howes@dtz.com David Hookey T: 020 3296 2112 E: david.hookey@dtz.com Tara Scott T: 020 3296 3848 E: tara.scott@dtz.com Misrepresentation Act 1967 & Declaration DTZ, a UGL company gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. June 2015 www.cube-design.co.uk (Q3180)