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Prominent corner office and retail building.
Freehold.
Totals 15,021 sq ft (1,395.7 sq m) of B1 office and A1 retail accommodation, arranged over basement,
ground and 5 upper floors.
The income is secured to 2 retail tenants and 3 office tenants, all on individual leases.
42% of the income is secured to Indexbold Ltd until 2022, with a further 23% secured to the retailer
ITSU Ltd until 2030.
The WAULT is 8.9 years or 6.8 years to breaks.
The most immediate asset management initiative is the Indexbold Ltd rent review in September 2017
which is passing off £42.10 per sq ft, there are further lease events in 2018.
Total current income of £728,623 per annum, with an average office rent of £44.52 per sq ft per
annum exclusive.
Asset is therefore highly reversionary with potential to increase the floor area (subject to planning).
There is further opportunity to derive value from our rights held over the basement car parking
in 188 Fleet Street, held under a separate long leasehold interest.
We are instructed to seek offers in excess of £19,000,000 (Nineteen Million Pounds) subject
to contract and exclusive of VAT.
A purchase at this level reflects a net initial yield of 3.59% after purchaser’s costs of 6.74%. The capital
value equates to £1,265 per square foot overall.
E X E C U T I V E S U M M A R Y
The property is prominently located on the east side of Chancery, at its junction with Fleet Street.
1
The Royal Courts of Justice is situated approximately 50 metres to the west.
LO C AT I O N
The property is prominently located on the east side of Chancery Lane, at its junction with Fleet Street. Chancery Lane is in the heart of the London’s Midtown
and is historically synonymous with the Legal sector, and home to the Law Society.
The property also fronts onto Fleet Street, which
forms part of the Ceremonial route through
Central London and is itself synonymous with
the Legal sector and the historic Press Industry.
The property sits ideally located for access
to the Royal Courts of Justice, The Law Society
(located 50m to the north), Middle and Inner
Temples and Lincoln’s Inn.
4 5
R I V E R T H A M E S
R I V E R T H A M E S BLACKFRIARS PIER
EMBANKMENTPIER
SOUTH BANK (LONDON), FESTIVAL PIER
BANKSIDE PIER
LONDON BRIDGE, LONDON BRIDGE CITY PIER
TOWER MILLENNIUM
PIER
ST. KATHARINE’S PIER
PaternosterSquare
Lincoln’s InnFields
Gray’s InnGardens
Russel Square
BrunswickSquareGardens
St George’s Gardens
Regent SquareGardensCartwright
Gardens
Euston SquareGardens
St Andrew’sGardens
Granville Square
Wilmington Square
SpaFieldsPark
St Luke’sGardens
HoxtonSquare
AskeGardens
BoundaryGardens
AllenGardens
St Matthew’sChurchGardens
PercyCircus
MyddeltonSquareGardens
Spa Green Garden
NorthhamptonSquareGardens
FinsburyCircus
FinsburySquare
Fortune StreetPark
St James’sChurch Gardens
HACPlaying Fields
Bunhill Fields Burial Grounds
Broadgate Circle
DevonshireSquare
Middle TempleGardens
Middle Temple
InnerTemple
Bernie SpainGardens
VictoriaEmbankment
Gardens
JubileeGardens
WhitehallGardens
St. JamesSquare
WaterlooGardens
BerkeleySquareGardens
SohoSquare
Bedford SquareGardens
BloomsburySquareGardens
Red Lion SquareGardens
LeicesterSquare
GoldenSquare
HanoverSquare
CavendishSquareGardens
ParliamentSquare
VictoriaTower Gardens
Lambeth PalaceGardens
NelsonSquare
Mint StreetPark
NewingtonGardens
Dickens Fields
TabardGardens
Guy StreetPark
Leathermarket Gardens
Potter Fields Park
Tanner Street Park
St Mary MagdalenChurchyard
LittleDorritPark
Archbishop’sPark
Lower GrosvenorGardens
Buckingham PalaceGardens
St James’s Park
Green Park
TOWER OF LONDON
ST. KATHERINE’S DOCK
SPITALFIELDSMARKET
BANKOF ENGLAND
20 FENCHURCH
LLOYDS OF LONDON
ROYALEXCHANGE
MANSIONHOUSE
GUILDHALL
ONE NEWCHANGE
SOMERSETHOUSE
COVENT GARDENMARKET
ROYAL COURTSOF JUSTICE
TEMPLECHURCH
ST BRIDE’SCHURCH
THE LAW SOCIETY
THE BRITISHMUSEUM
THESAVOY
TRAFALGARSQUARE
10 DOWNING STREET
ST. PAUL’SCATHEDRAL
TATE MODERN
NATIONALTHEATRE
LONDONEYE
SHAKESPEARE’SGLOBE
SOUTHWARKCATHEDRAL
MORE LONDON
HAY’S GALLERIA
KING’S COLLEGELONDON
SHARD
CITY HALL
BARBICAN ESTATE
SMITHFIELDMARKET
ROYALACADEMYOF ARTS
THERITZ
THEWOLSELEY
DEBENHAMS
HOUSEOF
FRASER
BUCKINGHAMPALACE
HORSE GUARDSPARADE
HOUSES OF PARLIAMENT
WESTMINSTERABBEY
BIG BEN
ST JAMES’S PALACE
THE CONNAUGHT
JOHNLEWIS
LIBERTY
HMS BELFAST
TOWERGATEWAY
BANK
MONUMENT
ALDGATE
ALDGATE EAST
MANSIONHOUSE
ST. PAUL’S
CHANCERYLANEHOLBORN
RUSSELLSQUARE
GOODGE STREET
WARRENSTREET
EUSTONSQUARE
TOTTENHAMCOURT ROAD
OXFORDCIRCUS
REGENT’SPARK
BOND STREET
ST JAMES’S PARK
GREENPARK
PICCADILLYCIRCUS
WESTMINSTER
LEICESTERSQUARE
COVENT GARDEN
TEMPLE
EMBANKMENT
CANNONSTREET
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THAMESLINK
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CHARING CROSS
WATERLOO
EUSTON
LONDONBRIDGE
BARBICANFARRINGDON
OLD STREET
SHOREDITCHHIGH STREET
MOORGATE
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MUSEUMOF LONDON
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C H A N C E R Y L A N E A S S O C I AT I O N
Chancery Lane is unique in that it’s the
only street in London that finds itself at the
intersection of three Local Authorities, namely
Camden, the City of London and Westminster.
The Chancery Lane Association (CLA) was set
up in 2006 to provide an important voice for
Chancery Lane and the immediate area.
The CLA comprises local owners, occupiers,
institutions and interest groups. Meeting two
times per year the CLA is an important conduit
for all involved to express their vision for the
improvement and the long term promotion of
the area.
The CLA promoted the creation of the
Chancery Lane Area Enhancement Scheme,
which aims to create a high quality street
environment. The Scheme is supported by
each of the Local Authorities (City of London,
London Borough of Camden and the City of
Westminster), thereby creating a coordinated
way to achieve the long-term aspirations for
the area. Since 2009 there has been the
creation of a new public space area along
Chancery Lane, the widening and repaving of
footpaths, an exercise to declutter the street
and the resurfacing of the highway.
1 Kings’ College London
2 Freshfields Bruckhaus Deringer
3 Bird & Bird
4 MacFarlanes
5 HM Courts Service
6 Legalease
7 Deloitte
8 Lewis Silken
9 Saatchi & Saatchi
10 Essex Chambers
11 Goldman Sachs
12 Sainsbury’s
13 Child & Co
14 Jones Day
15 C Hoare & Co
16 DAC Beechcroft
17 LSE
18 WSP Group
1 Rosewood Hotel
2 Silver Vaults
3 Vanilla Black
4 Bounce
5 Vivat Bacchus
6 Ede & Ravenscroft
7 Gaucho
8 Roka
9 The Delaunay
10 Cheshire Cheese
11 Church’s Shoes
12 Baranis
13 Brasserie Blanc
14 Lutyens
15 Dept of coffee and social affairs
16 Apex Hotel
17 Natural Kitchen
18 Cittie of Yorke
H I S TO R Y O F C H A N C E R Y L A N E
Chancery Lane was built
sometime around 1160
by the Knights Templar
on land they owned, and
was originally called New
Street. The current name
dates from the time of
Ralph Neville, who was
Bishop of Chichester
and Lord Chancellor
of England. The area
around the street came
into his possession when
in 1227 Henry III gave him
land for a palace.
Stow also mentions that there was a house for
converted Jews located there. In 1377, this house was
annexed to the keeper of the Rolls of Chancery, and
became the office of the Master of the Rolls, which
was created by royal authority.
At the start of the 20th Century the chancery
buildings and the rolls were replaced by the Office of
Public Records (now King’s College London library).
L O C A L O C C U P I E R S A M E N I T I E S
Izaac Walton’s house, at the corner of Chancery Lane and Fleet Street, 1627-1644
L I F E ST Y L E
6 7
London Underground services at Temple
(Circle and District lines), Chancery Lane (Central
line), Blackfriars (Circle and District lines),
Farringdon (Hammersmith & City, Metropolitan
and Circle lines) and Holborn (Central and
Piccadilly lines) are all within 600m.
Mainline rail services can be accessed from
CityThameslink, Blackfriars and Farringdon
Stations. These stations all provide access to
the First Capital Connect rail network, which is
the UK’s busiest train system. This links London
to Cambridge and Luton Airport in the north
and with Gatwick Airport and Brighton to the
south. Current improvement works will
increase the network’s capacity by 5,000
passengers and will deliver trains through
Central London every 2-3 minutes by the
end of 2016.
King’s Cross St Pancras station is readily
accessible, providing intercity UK and
international Eurostar services to Paris (2 hours
15 minutes) and Brussels (1 hour 50 minutes).
Waterloo station is within easy reach via
the bus network.
Numerous bus routes traverse the immediate
area, linking it to a wide range of Central
London destinations.
CO M M U N I C AT I O N S
The location benefits from excellent public transport facilities, providing good access to all parts of Central London.
Future development in the area is underpinned by the Elizabeth Line, Europe’s largest
infrastructure project earmarked for completion in 2019. The Elizabeth Line will provide
frequent rail services to 37 stations linking Maidenhead in the West to Shenfield in the
East and will increase capacity and reduce journey times to key business destinations
such as Heathrow Airport, Paddington and Canary Wharf. The area will benefit from the
major upgrade of stations at Farringdon. Farringdon Station is projected to become one
of the busiest transport hub in Central London delivering 140,000 passengers everyday.
The Elizabeth Line will bring approximately 750,000 more people within 45 minutes
travel time of Midtown.
T E M P L E
FA R R I N G D O N
V I C T O R I A
E M B A N K M E N T
B L A C K F R I A R S
C I T Y T H A M E S L I N K
H O L B O R N
T O T T E N H A M C O U R T R O A D
C H A N C E R Y L A N E S T PA U L ’ S
12 minutes 8 minutes 14 minutes
12 minutes
Elizabeth Line completion in 2019
7 minutes
9 minutes 6 minutes
WAT E R L O O
10 minutes
K I N G ’ S C R O S S
8
D E S C R I P T I O N lift to all floors. A secondary staircase is
located against the northern flank wall. The
floors provide open plan rectangular flexible
offices arranged around the main core.
The main retail unit is prominently positioned
on the corner of Fleet Street and Chancery
Lane, accessed directly from Fleet Street. The
ground and basement are connected via a
separate internal staircase. A separate retail
kiosk is situated on Chancery Lane.
There are 6 car parking spaces under the
adjacent 188 Fleet Street, which are accessed
via a ramp from Chancery Lane. A further car
parking space is located at ground floor level
in the undercroft.
The granite cladding panel curtain wall system
on the Chancery Lane and Fleet Street elevations
was installed in 1985. Recent refurbishment works
completed in 2013, included replacement of the
building’s primary heating, cooling, ventilation and
cold water plant. The fourth and fifth floor offices
and the WC accommodation were also refurbished.
The lift was overhauled and refurbished in 2007.
The property provides 15,021 sq ft (1,395.7 sq m)
of B1 office and A1 retail accommodation arranged
over basement, ground and five upper storeys.
The main entrance to the property is via a dedicated
newly refurbished and manned reception area
from Chancery Lane, leading to the central core,
accommodating a staircase and 9 person passenger
Metal Tile Suspended Ceilings
VRF Air Conditioning
LG7 Lighting
Raised Floors
1 x 9 Person Passenger Lift
Refurbished Male and Female WCs on each floor
Car Parking
Shower Facilities
Cycle Storage
The property was originally built in the 1960s, and is constructed with a reinforced concrete frame and floors, with a flat asphalt roof.
S P E C I F I C AT I O N
10
ACCO M M O DAT I O N
An assignment of this survey will be provided to the purchaser with an appropriate duty of care letter. A full copy of the Measured Survey is available in the data room.
FLOOR USE SQ M SQ FT
5th Office 224.4 2,415
4th Office 224.4 2,415
3rd Office 224.9 2,421
2nd Office 224.5 2,416
1st Office 224.7 2,419
Ground Retail (ITZA)
99.1 1,066 (850)
Kiosk 17.3 186
Ground floor total 116.4 1,252
Basement Retail 93.0 1,001
Storage 40.5 436
Ancillary 22.9 246
Basement total 156.4 1,683
TOTAL 1,395.7 15,021
C H A N C E R Y L A N E
FL
EE
T S
TR
EE
T
OFFICE CORE
F L O O R A R E A S
The property has been
measured by Plowman Craven
in accordance with the RICS
Code of the Measuring
Practice, 1st edition. The
property provides the following
floor areas:
1312
EVOLUTION OF CHANCERY LANE
512-14 NEW FETTER LANE, EC4
Completed Q4 2015 and undergoing tenant fit out. New development by Great Portland Estates (recently acquired by TH Real Estate). Pre-let to Bird & Bird – Totalling approximately 142,500 sq ft.
88 SALISBURY SQUARE, EC4
Scheduled completion Q1 2017. Substantial refurbishment and extension by Greycoat and Cheyne Capital – Totalling approximately 155,000 sq ft.
140 CHANCERY LANE, WC2
Completed Q3 2015 and undergoing tenant fit out. New development by Derwent London. Pre-let to Publicis Groupe (Saatchi & Saatchi) – Totalling approximately 96,500 sq ft.
481 CHANCERY LANE, WC2
Completed Q3 2015 and undergoing tenant fit out. Substantial refurbishment by Deerbrook Group. Pre-let to Essex Chambers – Totalling approximately 59,520 sq ft.
2THE CURSITOR BUILDING, 35 CHANCERY LANE, WC2
Scheduled completion Q1 2016. Substantial refurbishment and extension. Under construction by Aberdeen Asset Management/Endurance Land – Totalling approximately 69,000 sq ft.
328 CHANCERY LANE, WC2
Scheduled completion Q1 2017. Redevelopment behind a retained façade by Viridis Real Estate – Totalling approximately 99,000 sq ft.
1
4
5
6
2 3
98
7
THE SHARD
ST PAUL’S
GOLDMAN SACHS
TEMPLE
BLACKFRIARS
OLD BAILEY
ROYAL COURTS OF JUSTICELINCOLN’S INN
SMITHFIELDS MARKET
9ST ANDREW’S HOUSE, 18-20 ST ANDREW ST, EC4
Scheduled completion Q1 2017. Substantial refurbishment by AXA and Morgan Capital Partners – Totalling approximately 54,706 sq ft.
698 FETTER LANE, EC4
Scheduled completion Q3 2016. New construction by Blackstone and Morgan Capital Partners – Totalling approximately 57,000 sq ft. Predominately pre-let to Macfarlanes LLP.
71 NEW STREET SQUARE, EC4
Scheduled completion Q3 2016. New construction by Land Securities Plc – Totalling approximately 260,000 sq ft. Entirely pre-let to Deloitte.
Chancery Lane is undergoing the most significant evolution in its history with a number of notable development projects ongoing. The arrival of new office tenants, most notably Saatchi & Saatchi, and a series of impressive new retail units, coupled with public realm upgrades will transform Chancery Lane.
O T H E R N O TA B L E D E V E L O P M E N T S
1514
T E N A N C Y I N F O R M AT I O N The WAULT is 8.9 years or 6.8 years to breaks25% of the income is secured to 2 retail tenants with the remainder from 3 office tenants, all on individual
leases. The main tenant is Indexbold Ltd who account for 42% of the total income.
C L A R K E W I L L M O T T L L P1 6 % O F T O TA L I N C O M E
Clarke Willmott LLP, founded in 1888, is a national law firm with over 500 staff.
Accounts to the 30th April 2015 show the company made a pre-tax profit of £10,126,000 with a turnover of £39,887,000 and a total assets of £22,152,000. The company has an Experian Delphi Score of 96.
www.clarkewillmott.com
I N D E X B O L D L I M I T E D4 2 % O F T O TA L I N C O M E
Indexbold trading as 1 Chancery Lane are a leading civil common law set of barristers chambers. The guarantors have limited liability; John Ross QC, Simon Readhead QC and Edward Bishop QC.
www.1chancerylane.com
I T S U LT D2 3 % O F T O TA L I N C O M E
ITSU is a British chain of Asian-inspired fast food shops and restaurants incorporated in 1996.
Accounts to the 1st January 2015 show the company made a pre-tax profit of £2,021,984 with a turnover of £67,869,415 and a total assets of £28,406,726. The company has an Experian Delphi Score of 88.
www.itsu.com
C R I P P S , S E A R S & PA R T N E R S LT D1 6 % O F T O TA L I N C O M E
Executive search specialists in Energy, Natural Resources and Infrastructure incorporated in 1982.
Accounts to the 30th September 2015 show the company have total assets of £1,749,493. The company has an Experian Delphi Score of 100.
www.crippssears.com
Note: The car parking spaces are all located in the basement of 188 Fleet Street, which is immediately adjacent. * A ground rent of £1,000 per annum is paid by the adjacent owner of 188 Fleet Street in respect of access rights granted under the leasehold interest Title Number NGL48526.
TENANT USE FLOOR AREA SQ FT
CAR PARKING
ANNUAL RENT
RENT PER SQ FT
LEASE START RENT REVIEW TENANT BREAK
LEASE EXPIRY L&T ACT 1954 COMMENTS
Cripps, Sears & Partners Ltd B1 5th Floor 2,415 £114,712 £47.50 22/05/2013 21/05/2018 Outside There is a schedule of condition attached to the lease. Service Charge Cap of £33,206+RPI
Clarke Willmott LLP B1 4th Floor 2,415 1 Space £117,920 £48.83 13/05/2013 12/05/2018 Outside Service Charge Cap of £33,810+RPI
Indexbold Limited t/a 1 Chancery Lane
B1 3rd Floor 2,421 £108,990 £45.02 27/09/2012 27/09/2017 27/09/2022 26/09/2027 Inside Held under three separate leases. Guarantor has limited liability. John Ross QC, Simon Readhead QC and Edward Bishop QC. Service Charge Caps: 3rd - £39,963+RPI 2nd - £39,897+RPI 1st - £39,913.50+RPI
2nd Floor 2,416 1 Space £102,160 £42.28 27/09/2012 27/09/2017 27/09/2022 26/09/2027 Inside
1st Floor 2,419 1 Space £94,341 £39.00 27/09/2012 27/09/2017 27/09/2022 26/09/2027 Inside
ITSU Ltd A1 Ground Floor (Zone A)Basement
1,066 (850) 1,683
£165,000 £171.48 23/02/2015 23/02/2020 and
23/02/2025
22/02/2030 Outside
Raheel Choudhary A1 Ground Floor 186 £20,000 £107.53 30/09/2008 01/10/2018 and
29/09/2023
29/09/2028 Inside Reversionary lease in place commencing 30/9/2018
Delta Executive Search Ltd Basement of 188 Fleet Street
1 Space £2,500 31/03/2013 See comment. N/A Car parking licence only. Can be terminated by either party on three months’ notice.
Lewis Silkin LLP Basement of 188 Fleet Street
1 Space £2,000 30/05/2011 See comment. N/A Car parking licence only. Can be terminated by either party on three months’ notice.
Vacant Basement of 188 Fleet Street
2 Spaces
TOTAL
15,021
£728,623*
T E N A N T C O V E N A N T S
1716
T E N U R E & P L A N N I N G
The Midtown market has a low availability rate
of 3.6%. This is primarily driven by its low levels
of supply and appeal to a diverse range of
occupiers. Midtown has a diverse tenant base
with Professional Services (16%), Legal (13%),
Banking & Finance (12%) and Media (9%)
sector tenants driving demand in the last
3 years. The 5-year quarterly average take-up is
671,000 sq ft. New and refurbished supply levels
until 2019 are projected to be approximately
350,000 sq ft per quarter, this does not include
a significant proportion that is already pre-let.
Midtown has been rated by IPD as the top
performing market in 2015. This performance
is largely driven by strong rental growth. Today
the rental tone for high quality Grade A office
accommodation is generally in excess of £60
per sq ft. In the context of limited future supply,
the prospect of rental growth is positive.
This further underpinned by infrastructure
developments, such as the Elizabeth Line.
Investor interest in Midtown has been driven
by the strong occupational market. In Q1 2016,
the investment turnover in Midtown exceeded
£1 billion. Far Eastern (24%), Middle Eastern
(21%) and UK institutional funds (19%) have
been the most active purchasers over the last
3 years. This illustrates the widening international
appeal of this key Central London market.
Indexbold Ltd, who account for 42% of the total
income, have a rent review in September 2017.
Their leases for the 1st to 3rd floor offices are
passing off an overall rent of £42.10 per sq ft
which is highly reversionary.
There are lease expiries in May 2018 on the 4th
and 5th floors, which are outside the security
provisions of the Landlord and Tenant Act 1954.
These floors were substantially refurbished
in 2013 and the passing rents are highly
reversionary.
There is potential to construct an additional
floor on the existing structure, subject to the
necessary planning consent and feasibility.
Precedent has been set with the existing roof
plant room and the additional floor and terrace
under construction on the adjacent property,
188 Fleet Street.
The sale includes the long leasehold interest
over the 6 car parking spaces in the basement
of 188 Fleet Street.
If the long leasehold interest is terminated early,
this will allow the owner of 1 Chancery Lane to
infill the Ground floor underpass, to reconfigure
and extend the retail offering.
S I T E A R E A
The freehold occupies a site area of
approximately 0.038 hectares (0.094 acres).
U S E
The current permitted use is B1 offices and
A1 retail in accordance with the Town and
Country Planning (Use Classes) Order 1987
(as amended).
P L A N N I N G
The local planning authority is the City
of London. The property is not listed but
is situated within the Fleet Street
Conservation Area.
A S S E T M A N A G E M E N T I N I T I AT I V E S
The property is held freehold under Title
number NGL518078. The extent of the demise
is highlighted in the OS plan below.
The property also benefits from the
leasehold interest under Title Number
NGL48526 over the land tinted blue, this
includes car parking spaces numbered 12 to
17 beneath 188 to 192 Fleet Street. The term
of the lease is 93 years from 22nd March 1967
at a peppercorn rent.
T E N U R E
M A R K E T C O M M E N TA R Y
1918
VAT
The property is VAT elected.
It is anticipated that the
sale of the property will be
treated as a Transfer of a
Going Concern.
E P C
The energy performance
asset rating is C 69. Further
information is available in the
data room.
D ATA R O O M
Access can be provided to
the solicitor’s secure data
room upon request.
C O N S I D E R AT I O N
We are instructed to seek offers in excess of £19,000,000 (Nineteen Million Pounds) subject to contract and exclusive of VAT.
A purchase at this level reflects a net initial yield of 3.59% after purchaser’s costs of 6.74%. The capital value equates to £1,265 per square foot overall.
For further information or to arrange a viewing
please contact the joint sole selling agents:
JAMES FROST
0207 855 3536
ALASTAIR HILTON
0207 855 3535
C O N TA C T
M I S R E P R E S E N TAT I O N A C T 1 9 6 7
IMPORTANT: These particulars do not constitute either the whole or any part of an invitation, offer or contract in relation to the property described in the particulars. Neither Farebrother/Gryphon Property Partners, nor their Directors, employees and agents, have authority to make or give any representation or warranty, express or implied, on behalf of any party in relation to the property. Whilst the particulars are given in good faith, intending purchasers or tenants must satisfy themselves independently as to the accuracy of all matters on which they intend to rely. All negotiations are subject to contract. April 2016.
F U R T H E R I N F O R M AT I O N
MIKE POPE
020 3440 9800
JOHN MORTON
020 3440 9810
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