BLOOMSBURY STREET FITZROVIA WC1

BLOOMSBURY STREET FITZROVIA WC1

BLOOMSBURY STREET FITZROVIA WC1 FOREWORD Fitzrovia, together with Soho, is the preferred location for the creative industries. This West End village is also home to world class restaurants such as Hakkasan, Roka, and Berners Tavern; and some of London s leading hotels including The Langham, Charlotte Street Hotel, The Sanderson, and The London Edition Hotel. This significant London freehold asset is let to an undoubted tenant at a low rent for a further 8.5 years. The building is situated in an ever evolving and growing location, which is due to the excellent amenities, the accessibility to future employment talent, the improving communications infrastructure, and the potential for alternative uses. 1

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EXECUTIVE SUMMARY Located in an exciting part of the West End, with increasing critical mass of new developments nearby, and set to benefit from Crossrail from late 2018 onwards. Freehold. The building was redeveloped in 1990 behind a retained brick facade, and comprises approximately 79,368 sq ft (7,373.46 sq m) of grade A office and ancillary accommodation arranged over lower ground, ground and five upper floors around an impressive full height atrium. The entire property is let to the Secretary of State for Transport, Local Government and the Regions on an effectively full repairing and insuring basis for a term of 20 years from 8 November 2002, expiring 7 November 2022. There are approximately 8.5 years unexpired. The passing rent is 3,308,568 per annum reflecting 41.69 per sq ft, subject to five yearly fixed rental uplifts at 2.4% per annum. Offers are sought in excess of 75,000,000 for the freehold interest, subject to contract, equating to a capital value of 945 per sq ft. The vendor will top up the passing rent to the level of the fixed increase in 2017. A purchase at this level reflects a net initial yield of 4.70% after 5.8% purchaser s costs. 3

COVENT GARDEN HOUSES OF PARLIAMENT ST JAMES S PARK VICTORIA CROSSRAIL STATION 4

ST JAMES S SOHO CROSSRAIL MAYFAIR NOHO STATION 5

LOCATION Situated in one of the West End s most dynamic and evolving areas, Fitzrovia is set to benefit from a place making period, with 2.6m sq ft of new office accommodation being delivered over the next few years by some of London s most well known developers. This upgrade in stock, combined with major infrastructure improvements is set to locate 21 Bloomsbury Street at the heart of an emerging business district attracting the TMT sector (technology, media and telecoms), and an increasing number of corporate and financial occupiers. The area is well catered for by internationally renowned restaurants including Hakkasan, Pied a Terre and Berners Tavern, and the Charlotte Street and London Edition Hotels. 21 Bloomsbury Street occupies a prominent corner position at the junction of Bloomsbury Street and Bedford Avenue, approximately 200 metres to the north of New Oxford Street, and 200 metres to the east of Tottenham Court Road. Communications The property benefits from excellent communications with Tottenham Court Road London Underground station, served by the Central and Northern Lines, within four minutes walking distance. Indicative journey times are as follows:- Underground Stations Mainline Rail Airports Oxford Circus Bank Canary Wharf 1 minute 7 minutes 21 minutes Kings Cross St Pancras Victoria Paddington 11 minutes 8 minutes 14 minutes Heathrow Gatwick City Airport 54 minutes 48 minutes 33 minutes Crossrail Presently c. 150,000 passengers use Tottenham Court Road Underground Station daily. The development of Crossrail, the new high frequency railway through central London linking Maidenhead in the west to Shenfield in the east, will have a positive impact on the environs of Tottenham Court Road in terms of:- Improved connectivity with reduced travel times - once Crossrail is running it is anticipated that the journey time to Canary Wharf will reduce to 12 minutes, and 28 minutes to Heathrow; and Increased pedestrian traffic - it is anticipated that c. 102,000 passengers will use this Crossrail station daily, and the combined daily station demand is estimated at more than c. 200,000. To accommodate this increased capacity Crossrail and Transport for London are investing 1 billion in transforming Tottenham Court Road Underground Station, which is one of five Crossrail stations located in Zone One, and only three in the West End. 6

OCCUPIERS AMENITIES 1 Arcadia Group 10 Betgenius 19 Octopus Publishing A Sanderson Hotel J The Soho Hotel Albany Street Great Portland Street 2 Omnicom Europe 3 The Football Foundation 4 Gardiner & Theobald 5 Zenith Optimedia 6 HKS Architects 7 Dolby Europe 8 20th Century Fox 9 Freemantle Media Ascent Media Euston Road Hampstead Road Warren Street 11 TMP Worldwide 12 Time Out 13 Aminex 14 Bloomsbury Publishing 15 William Morris 16 LinkedIn 17 Yahoo Lloyds 18 Hogarth Worldwide 20 Google Mindshare NBC Universal Young & Rubican Specific Media 21 Purvin and Gertz Euston Road 22 Maitland Group All 3 Media 23 Edexcel Gordon B Pescatoria C The London Edition Hotel and adjoining Berners Tavern D Fino E Roka F L Etoile G Charlotte Street Hotel H Lima I Crazy Bear Coram Street Marchmont Street Hunter Street K Arbutus L Hakkasan M Ronnie Scott s N The Gauthier Soho O L Atelier De Joel Robuchon P The Ivy Q Hawksmoor Doughy Street ew Cavendish Street Wigmore Street Henrietta Place ook Street Devonshire St. Portland Place Chandos Street Cavendish Oxford Street New Bond Street Bruton Street Hanover Regent Street OXFORD CIRCUS Dover Street GREEN PARK Conduit Street Albemarle Street Great Portland Street Oxford Circus Fitzroy Great Titchfield Street Regent Street Cleveland Street Wells Street Eastcastle Street Great Marlborough Street Carnaby Street Sackville Street Fitzroy Street Mortimer Street Goodge Street A Beak Street Berners Street Duke Street Tottenham Court Road Tottenham Court Road B Golden Piccadilly GOODGE STREET E F D G C 1 Newman Street PICCADILLY CIRCUS Jermyn Street H Percy Street Wardour Street Brewer Street St James s I 2 Gower Street Bloomsbury Street Rathbone Place Regent Street Dean Street Soho Coventry Street Store Street Frith Street TOTTENHAM COURT ROAD Greek Street Shaftesbury Avenue Haymarket Whitcomb Street Bedford Great Russell Street Charing Cross Road LEICESTER SQUARE Cockspur Street National Gallery Bedfored Way British Museum Charing Cross Road Seven Dials Russell Bernard Street Oxford Street New Oxford Street J 5 7 3 6 8 9 K 4 L M 12 10 N 13 11 Leicester 14 21 Strand RUSSELL SQUARE Long Acre Bloomsbury Way Endell Street Drury Lane COVENT GARDEN CHARING CROSS Northumberland Avenue Pall Mall Chandos Place 17 O 15 16 P 20 Trafalgar 7 Mins Tottenham Court Road 18 21 19 22 Q 6 Mins Guildford Street 23 John Adam Street Villiers Street Great Ormond Street Boswell Street Old Gloucester Street EMBANKMENT HOLBORN Great Queen Street Wild Street Russel Street Strand Kingsway Aldwych Victoria Embankment Holborn High Holborn Waterloo Bridge Bedford Row John Street Jockey s Fields Grays Inn Ro The Mall 7 Whiteha l Piccadilly Queens Wa

THE BRITISH MUSEUM The British Museum was founded in 1753, and was the first national public museum in the world. From its opening it granted free admission to all studious and curious persons. Visitor numbers have grown from around 5,000 a year in the eighteenth century to nearly 6 million today.

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THE BUILDING 21 Bloomsbury Street was redeveloped in 1990 behind a period retained brick façade and comprises approximately 79,368 sq ft (7,373.5 sq m) of fully specified office and ancillary accommodation arranged over lower ground, ground and five upper floors. The offices overlook a striking central glazed atrium. Two internal balconies overlook the atrium on the first and second floor and there is an additional garden balcony located on the second floor. In 2012 the tenant undertook significant refurbishment and upgrade works. The current specification includes: Air-conditioning - four pipe fan coil system 150mm raised floors Metal tiled suspended ceilings with recessed lighting 2.6m finished floor to ceiling heights on the upper floors, with an enhanced 3.1m at ground level Three 16-person (1,250kg) passenger lifts serving all floors DDA compliant Large glazed atrium extending the full height of the building Male and female WCs on all floors Male and female showers at lower ground level Five lower ground floor car parking spaces. 12

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ACCOMMODATION Floor Areas Vendors floor areas are set out below: Floor Use Area Sq Ft Area Sq M Level 5 Office 10,068 935.34 Level 4 Office 11,226 1,042.92 Level 3 Office 11,279 1,047.84 Level 2 Office 11,279 1,047.84 Level 2 Atrium Terrace 390 36.23 Level 1 Office 12,794 1,188.59 Ground Office 9,893 919.08 Ground Reception 1,990 184.88 Lower Ground Office 9,147 849.78 Lower Ground Atrium Base 1,302 120.96 Lower Ground Car Parking 5 spaces Total 79,368 7,373.46 16

FLOOR PLANS 5th 4th 3rd 2nd 1st Ground Lower Ground 17

12 45 14 60 FB TENURE AND TENANCY Tenure The property is held freehold, under title number NGL815737. Tenancy The entire property is let to the Secretary of State for Transport, Local Government and the Regions on an effectively full repairing and insuring basis for a term of 20 years from 8 November 2002, expiring 7 November 2022. There are approximately 8.5 years unexpired. The property is occupied by Sports England, UK Sport, Arts Council, CAFCASS, OFWAT, HBLB, and OISC. These Government bodies occupy under Memorandum of Terms of Occupation Agreements (MOTO), and as such there is no Landlord and Tenant relationship. There are also two underleases of the lower ground floor and first floor respectively to The Sports Council Trust Company and the English Sports Council for a term of one day shorter than the main lease. The underleases are outside the Landlord and Tenant Act 1954. There is an option for the tenant to take a reversionary lease on expiry of the current term for a period of 15 years at the then open market rental value. This option may be exercised by the tenant at any time from 7 November 2020 until 7 November 2021. The current lease is outside the 1954 Landlord and Tenant Act. The rent is subject to five yearly fixed rental uplifts, equating to increases of 2.4% per annum, resulting in the following profile: The passing rent to 7 November 2017 is 3,308,568 per annum, reflecting 41.69 per sq ft; and from 8 November 2017 to 7 November 2022 the rent will be 3,725,116 per annum, reflecting 46.93 per sq ft. The vendor will top up the passing rent to the 2017 level. 1 58 56 BEDFORD SQUARE 54 50 53 BLOOMSBURY STREET 46 25 15 BEDFORD AVENUE 43 to 54 41 21 34 26 El Sub Sta 9 TCBs LB Bedford Court Mansions 42 55 to 73 24 22 BLOOMSBURY STREET 92 93 91 89 ADELINE PLACE Kenilworth Hotel 39 38 101 to 121 98 94 to 97 37 35 WILLOUGHBY 98 10 Cycle Hire Station 5 2012 to 18 STREET 3 7 to 13 0m 10m 20m 30m 104 Hotel 20 16 109 Hotel 18

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OCCUPATIONAL MARKET The core West End markets of Mayfair and St James s are now regularly achieving rents in excess of 115 per sq ft. 21 Bloomsbury Street is situated in Fitzrovia, which is emerging as a hub for the creative sector and TMT occupiers. As the sub-market matures and becomes more attractive to corporate occupiers, the sustained upward pressure on rents, currently at 62.50 per sq ft, will continue. This strong rental growth is largely caused by a recovering economy resulting in rising demand, combined with a lack of available space (West End availability ratio is c. 4.4%, and only c. 1.7% for grade A) causing occupiers to become more foot loose than in previous cycles and prepared to move between sub-markets. In addition to the macro economic factors, the desirability of this vibrant area of the West End is well placed to continue due to the quality of local amenities, and through:- Major investment into improving the already excellent infrastructure services are planned to start in the central section of Crossrail from late 2018 onwards. The significant upgrade in the quality of office stock - Derwent London, Great Portland Estate, Almacanter, Exemplar & Bedford Estates, and AXA (amongst others) are developing new, and renovating existing buildings to provide new office led schemes on Tottenham Court Road, Oxford Street, and New Oxford Street. One of the key drivers for cutting edge firms is the access to young and emerging talent. 21 Bloomsbury Street is ideally located with University College London, and University of London within half a mile, furthermore three further major Universities are within a 1 mile radius. Leasing Comparables Details of a sample of recent and relevant grade A office lettings are summarised below:- Tenant Floor Address Area (sq ft) Rent (per sq ft) Lincoln International 10th Orion House, Upper St Martins Lane, WC2 5,844 82.50 WPP G & LG 25 Great Pulteney Street, W1 5,891 75.00 Lookout Ltd 6th 25 Soho, W1 3,725 67.50 New Look 4th Wells & More, 45 Mortimer Street, W1 6,297 70.00 Sheridans 4th -5th 76 Wardour Street, W1 11,915 73.50 Generation Investment Management 7th Air, W1 4,884 90.00 Facebook 6th - 8th 10 Brock Street, NW1 88,000 62.50 The accuracy of the information in the Leasing Comparables table can not be guaranteed as it has been sourced from third parties. 20

INVESTMENT MARKET 2013 was a record year for the central London investment market with 21.8bn of transactions which was 24% up on the 2012 total. At 8.9bn the final quarter of the year saw the highest ever recorded volume, more than the full year in 2008 ( 8.2bn), and 2009 ( 7.9bn). Investment activity was higher than 2012 in all the central London markets West End investment was up by 17% to 5.6bn, Mid Town 8% to 2.3bn, and City of London 2% to 7.7bn for the year. Demand for central London property has remained exceptionally strong into 2014 as investors seek the security and opportunity that London can offer. Overseas investors accounted for 65% of all purchases in 2013. In the first quarter of 2014 central London investment totalled c. 2.6bn, which is similar to the same time last year (c. 2.8bn), but less than a third of the total transacted in the last quarter of 2014. There has been c. 1.3bn of transactions completed in the West End so far this year, and there is c. 1.3bn of available stock, albeit c. 775m of this availability is just four assets. If all these assets transact in the current quarter then the first half of 2014 total is likely to be broadly similar to the same period in 2013, a total of 2.7bn, which is only restricted by the level of supply. The strong rental growth that the West End has enjoyed is expected to continue, the global importance of the London to the international investment community, and the restricted level of supply is resulting in continued downwards pressure on yields. Investment Comparables A sample of recent West End investment transactions are summarised below:- Property Tenure Date Area (per sq ft) Price Cap val (per sq ft) Yield (NIY) Purchaser 42-43 Great Marlborough Street, W1 Long leasehold Under offer 13,589 Q. 10.5m Q. 773 3.89% Under offer 110 Park Street, W1 Long leasehold April 2014 27,481 33m 1,201 3.32% Scottish Widows 203-206 Piccadilly, W1 Long leasehold February 2014 66,317 67.5m 1,205 2.73% (rev. to c. 4.25%) Meyer Bergman 77 Newman Street, W1 Freehold December 2014 14,828 19.2m 1,300 3.94% Corob Holdings Ltd 50 Pall Mall, SW1 Freehold December 2013 35,145 Above 60m Above 1,707 Sub 4.00% Private European Clive House, SW1 Freehold December 2013 86,534 90m 1,040 4.22% Mitsubishi Estate Company Partnership House, SW1 Freehold December 2013 38,934 49m 1,292 3.67% Private Middle Eastern Investor The accuracy of the information in the Investment Comparables table can not be guaranteed as it has been sourced from third parties. 21

Euston Road A CHANGING LOCATION Bedfored Way Guildford Street Charlotte Street Rathbone Place Gower Street Bloomsbury Street Great Ormond Street Russell Fitzroy Street Cleveland Street Store Street Regent Street Great Portland Street Great Titchfield Street Wells Street Eastcastle Street Mortimer Street Tottenham Court Road Tottenham Court Road GOODGE STREET OXFORD CIRCUS 1 Berners Street Goodge Street Newman Street Oxford Street 3 4 Percy Street 6 7 Soho 8 Bedford Great Russell Street TOTTENHAM COURT ROAD 9 11 British Museum Central Saint Giles 21 New Oxford Street 12 13 Endell Bloomsbury Way 14 15 Drury Lane HOLBORN Great Queen Street Wild Street Kings Hanover ond Street Conduit Street Great Marlborough Street 2 Golden Wardour Street Brewer Street PICCADILLY CIRCUS 5 Dean Street Coventry Street Frith Street Greek Street Charing Cross Road Shaftesbury Avenue 10 LEICESTER SQUARE Seven Dials Long Acre Street Chandos Place 16 COVENT GARDEN Russel Street Strand A Sav Charing Cross Road Whitcomb Street Centre Point Central St Giles 1 Fitzroy Place Strand Victoria Embankment 22

FUTURE DEVELOPMENT 1 FITZROY PLACE, W1 Exemplar and Aviva s mixed use scheme on the former Middlesex Hospital site. Scheme will comprise 235 apartments, 220,000 sq ft of offices and 21,000 sq ft of retail and leisure. 2 THE SOHO WORKS, W1 Henderson Global Investors development comprising 66,000 sq ft of offices, 6,750 sq ft of retail and 7,750 sq ft of residential accommodation is currently under construction. 3 AMPERSAND, W1 Resolution Property and Peterson Group s development scheme of c. 65,000 sq ft of offices, c. 25,000 sq ft of retail and two upper floors of c.15,000 sq ft of prime residential accommodation. Completion due in Q4 2014. 4 RATHBONE PLACE, W1 Great Portland Estates scheme planned on the site of the Royal Mail delivery centre, to comprise c. 350,000 sq ft of office floorspace, c. 60,000 sq ft of retail and leisure space, and public realm works. 5 76 WARDOUR STREET, W1 Legal & General office refurbishment project completed in October 2013, providing circa 32,000 sq ft of grade A office space. DTZ bought the building for L&G and are currently marketing this space. Two floors let at record Wardour Street rents. ( 73.50 and 75.00 per sq ft). 6 1-2 STEPHEN STREET, W1 The property provides 255,100 sq ft of office and retail accommodation. Derwent London is carrying out an 86,000 sq ft office extension and refurbishment with delivery in early 2014. The retail units on Tottenham Court Road will also be refurbished and extended down into the basement. This is expected to start in Q2 2014 and complete in Q2 2015, and will increase the retail space by 70% to 41,000 sq ft. 7 24-68 OXFORD STREET, W1 Oriana GP Ltd is a joint venture between Land Securities and Frogmore. The initial phase delivered 149,000 sq ft of retail space and was let to Primark as its flagship store. The second phase will provide a further 76,500 sq ft of retail accommodation over basement, ground and first floors and 18 high quality private apartments ranging from one to three bedroom units. The retail is due to complete on a phased basis with the first retailers expected to start trading in the first quarter of 2016. The flats will complete in the second quarter of 2016. 8 BEDFORD AVENUE, WC1 Exemplar & Bedford Estates have formed a joint venture to re-develop the site and provide 85,000 sq ft of office and retail accommodation. Planning permission was granted in September 2013 with the project expected to be completed in 2016. 9 1 OXFORD STREET, W1 275,000 sq ft mixed use Derwent London development scheme planned directly above Tottenham Court Road station, which was previously owned by Derwent and compulsorily acquired for Crossrail works in 2009. Due for completion in 2017. 10 CHINATOWN ESTATE, WC2 Development site assembled by Bourne Capital to the south of Shaftesbury Avenue to provide a mixed use scheme of retail, market and leisure accommodation, over an area currently providing 67,102 sq ft of space. 11 CENTRE POINT, WC1 Almacantar s planned conversion of the office tower into residential apartments is due to begin in 2014. 12 CASTLEWOOD HOUSE, 77-91 OXFORD STREET, W1 The property comprises 65,000 sq ft of office accommodation over 9 floors and was refurbished by AXA Investments in 2012. The project included the replacement of key central plant. Following the expiry of the LinkedIn lease the property is a major development site. 13 ST GILES CIRCUS, W1 St Giles Circus and Denmark Street development by Laurence Kirschel s Consolidated Land, over 1 acre with permission for more than 170,000 sq ft of retail, hotel, leisure and residential accommodation. 14 MIDTOWN POST OFFICE, 21-31 NEW OXFORD STREET, WC1 Brockton Capital refurbishment of 360,000 sq ft of mixed use space. Predicted completion 2017. 15 10 BLOOMSBURY WAY, WC1 London & Regional Properties development to create c. 235,000 sq ft of office accommodation. 16 90 LONG ACRE, WC1 Development site purchased by Northwood in July 2013. Currently provides 194,000 sq ft of office accommodation, with potential for refurbishment and extension on expiry of the existing leases. 1 Oxford Street Dean Street Crossrail Station IMAX Charing Cross Road 23

FURTHER INFORMATION Planning The property is situated within the London Borough of Camden and is subject to the general planning policies of the Unitary Development Plan. The property is not listed, but is situated within the Bloomsbury Conservation Area. VAT The property is not elected for VAT, and there is a landlord s covenant in the lease not to make such an election. Data Site Further information on the sale can be found on the data site. Please contact DTZ for further details. Proposal Offers are sought in excess of 75,000,000 for the freehold interest, subject to contract, equating to a capital value of 945 per sq ft. A purchase at this level will reflect a net initial yield of 4.70%, based on the topped up rent, and after 5.8% purchaser s costs. EPC The Energy Performance Certificate confirms a rating of C at November 2012. Contact For further information, to arrange an inspection, or obtain a data site password, please contact one of the following: Ben Blinston-Jones Tel: +44 (0)20 3296 4661 Email: ben.blinston-jones@dtz.com Ben Cook Tel: +44 (0)20 3296 3632 Email: ben.cook@dtz.com Oliver Horwitch-Smith Tel: +44 (0)20 3296 3638 Email: oliver.horwitch-smith@dtz.com James Ball Tel: +44 (0)20 3296 4462 Email: james.ball@dtz.com MISREPRESENTATION DTZ for themselves and for the vendors of this property for whom they act, give notice that: i) These particulars are a general outline only, for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract; ii) DTZ cannot guarantee the accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy; iii) Rents quoted in these particulars maybe subject to VAT in addition; iv) DTZ will not be liable, in negligence or otherwise, for any loss arising from the use of these particulars; v) The reference to any plant, machinery, equipment, services, fixtures or fittings at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective purchasers/tenants should satisfy themselves as to the fitness of such items for their requirements; vi) No employee of DTZ (and its subsidiaries and their Joint Agents where applicable) has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Tayler Reid Design 04385 I 020 7355 2500 I www.taylerreid.co.uk May 2014 24