London N1

Freehold Refurbishment and

Development Opportunity

2

INVESTMENT SUMMARY

— Old Street is one of London’s most sought after locations and is a favoured destination for companies in the creative, technology and fashion industries.

— Situated in a prominent position in the heart of Tech City on the corner of East Road and Vestry Street immediately to the north of Shoreditch and Old Street station.

— Attractive former Victorian warehouse, comprising media style office accommodation and five apartments, arranged over lower ground, ground and three upper floors totalling 15,039 sq ft (1,397.2 sq m).

— Multi-let on eight commercial leases and five assured shorthold tenancy agreements.

— Current rent of £531,469 per annum which equates to a low average rent of £35.34 per sq ft.

— Planning permission obtained for additional fourth and fifth floors of office accommodation totalling 5,070 sq ft (471.0 sq m) of net internal floor area with a roof terrace.

— Freehold.

— The vendor is seeking offers in excess of £11,000,000 (Eleven Million Pounds) subject to contract, for the benefit of their freehold interest. A purchase at this level would reflect a net initial yield of 4.52% after allowing for purchasers costs of 6.8% and a low capital value of £731 per sq ft.

3

Smithfield MarketThe City

Old Street Roundabout The Bower

White Collar Factory

Liverpool Street Station

Moorgate Station

Old Street Station

Farringdon Station

4

LOCATION

The property is located to the north of Old Street roundabout which together with the surrounding area has become synonymous with technology companies and web businesses leading to it becoming known as Silicon Roundabout, in a reference to America’s Silicon Valley.

In recent years, many technology companies have moved

to the area and local occupiers now include Turner

Broadcasting, Stripe, CBS Interactive, Farfetch, Google,

Dopplr, Last.fm, Banksthomas, Glue Isobar, TweetDeck,

livemusic.fm and McDonalds.

Complementing the vibrant office market is the excellent

retail and leisure amenity which has transformed over

the last ten years. Whitecross Street market, a short walk

from the property, has developed to become London’s

premier daily food market providing office workers with

an unparalleled choice of cuisines. New restaurants are

opening regularly adding to some firm London favourites,

including Ceviche, Enoteca Da Luca, Bone Daddies,

Cecconis, Honest Burger, Shoreditch Grind, M by Montcalm,

Ace Hotel and The Nobu Hotel which are all well

established in the area.

SILICON ROUNDABOUT

The Silicon roundabout area is an integral part of the

wider East London Tech City ‘technology hub’, which

stretches from Old Street to the Queen Elizabeth Olympic

Park in Stratford. Cisco, Facebook, Google and Intel are

amongst the companies that have committed to invest

in the ‘hub’ with Imperial College London, Loughborough

University and University College London also agreeing

to be academic partners. This initiative has meant there

has been rapid growth in the number of high-tech

companies locating to the area in the last five years.

Old Street roundabout is undergoing a £25 million public

realm overhaul. The improvements will dramatically

transform this ‘gateway’ to Tech City, creating a much

improved environment, for cyclists and pedestrians using

the junction in particular, making it far easier to access

the local area. The works include the creation of new

public space on the peninsula, new cycle lanes on all

arms, new cycle-only signals, new surface level pedestrian

crossings, widened bus lane, new cycle parking and hire

facilities and a new entrance to the underground station

accessible from the new peninsula.

5

5

COMMUNICATIONS

The property benefits from its proximity to Old Street

Underground station providing access to the Northern line

which is less than a two minute walk away. Barbican, Moorgate

and Liverpool Street are all within a 11–17 minute walk providing

access to the Circle, Metropolitan, Central, Hammersmith & City

lines and, upon its completion, the Elizabeth Line.

LOCAL AMENITIES

EATING & DRINKING

1. Ace Hotel

2. Floripa

3. Look Mum No Hands

4. Ozone Coffee

5. Shoreditch Grind

6. Tramshed

7. The Breakfast Club

8. Ceviche

9. Honest Burger

10. Bone Daddies

11. Enoteca Da Luca

12. Whitecross Street Market

13. Passo

14. Blacklock

15. Gloria

16. Breddos

17. Lantana

18. Serata Hall

BUSINESSES

19. Google Campus

20. R/GA

21. Vice Magazine

22. Moo

23. Mind Candy

24. EMC

25. Adobe

26. Capco

27. Stack Exchange

28. QuidCo

29. TechHub

30. Totally Money

31. Farfetch

32. Ebiquity

33. Inmarsat

34. Monzo

35. Brainlabs

36. Mother

All Journey times taken from the building. Source – TfL

City Rd.

City Rd .

C

ity R

d.

M

oo

rgate

Clerkenwell Rd.

Old St.

Old St. Old St.

Sh

ore

ditc

h H

igh

St.

Bish

op

sgate

London Wall London Wall

Goswell Rd.

Go

swell R

d.

A

lde

rsgate

St.

Farrin

gd

on R

d.

Farrin

gd

on

Rd

.

Great Eastern St.

East R

d.

Chiswell St.

Wh

itecro

ss St.

Ve

stry

St.

MusuemOf London

SmithfieldMarket

BarbicanCentre

Finsbury Circus

HoxtonSquare

Finsbury Sqaure

OLD STREET

LIVERPOOL STREET

SHOREDITCHHIGH STREET

MOORGATE

BARBICANFARRINGDON

OLD STREET

3 MINS

MOORGATE

14 MINS

BARBICAN

16 MINS

SHOREDITCH HIGH STREET

11 MINS

FARRINGDON

20 MINS

LIVERPOOL STREET

17 MINS

29

25

20

14

1

2

3

4

5

6

7

8

9

33

23

18

12

31

2735

22

17

11

21

1516

10

30

26

34

24

19

13

32

28

36

6

LOCAL DEVELOPMENTS

The area boasts a vibrant mixture of commercial, hotel, retail and residential uses and has experienced substantial investment and development activity.

WHITE COLLAR FACTORY OLD STREET ROUNDABOUT

A 278,000 sq ft office and retail scheme, together with 10,000 sq ft of residential developed by Derwent London.

THE BOWER Old Street Roundabout

A new landmark quarter developed by Helical plc featuring 320,000 sq ft of office, restaurant and retail accommodation.

THE ATLAS BUILDING 145 City Road

40 storey mixed-use development comprising 302 apartment residential tower which also benefits from a generous public realm space, offices and retail.

PRINCIPAL PLACE Worship Street

A 600,000 sq ft Foster & Partners designed mixed use development by Brookfield. Amazon, the global on-line retailer, has pre-let 430,000 sq ft of space.

THE STAGE Curtain Road

New mixed-use development in Shoreditch from Galliard Homes consisting of 400,00 sq ft of offices, 412 apartments set within a 37 storey tower, leisure space and retail.

SHOREDITCH VILLAGE Shoreditch High Street

A 150,000 sq ft mixed-use and public realm scheme opposite the iconic Tea Building on Shoreditch high Street. Phase one is under construction with Phase Two – 50,000 sq ft of offices and retail space currently in for planning.

SPECTRUM 150 Old Street

A Great Portland Estates 160,000 sq ft office, retail and restaurant scheme overlooking private courtyards.

THE SHOREDITCH ESTATE Blossom Street

A 192,000 sq ft 3 Phase mixed-use development by British Land. The development is taking place on a site of 2 acres and planning has been secured for Phase 1.

THE CURTAIN HOTEL 45 Curtain Road

The hotel comprises 120 guest rooms, a rooftop pool and lounge and over 6,000 sq ft of meeting and event space.

THE BISHOPSGATE GOODSYARD Shoreditch High Street

A Hammerson and Ballymore joint venture – 4.7 hectare site providing c. 2,000 residential units, office accommodation, retail and leisure amenities and over 1.8 hectares of public realm space.

201-207 SHOREDITCH HIGH STREET

A development by Highgate Holdings will include a 200-room luxury hotel and 127,724 sq ft of office space arranged over 30 storeys.

7

DESCRIPTION

Attractive former Victorian warehouse, comprising media style office accommodation and five apartments, arranged over lower ground, ground and three upper floors totalling 15,039 sq ft (1,397.2 sq m).

The office accommodation benefits from the following

specification:

Timber flooring;

Perimeter trunking;

Passenger lift servicing all floors;

Male and female toilet facilities throughout the building;

Excellent floor to ceiling heights;

Superb natural daylight.

ACCOMMODATION

The property provides the following approximate floor areas:

FLOOR SQ FT SQ M SQ FT SQ M

Third 3,113 289.2 3,956 367.5

Second 3,111 289.0 3,943 366.3

First 3,063 284.6 3,842 356.9

Ground 2,550 236.9 3,770 350.2

Lower Ground 3,202 297.5 4,140 384.6

TOTAL 15,039 1,397.2 19,650 1,825.5

NIA / NSA GIA

8

EXISTING FLOOR PLANS

FIRST FLOOR3,063 Sq Ft (284.6 Sq M) NIA / NSA

For indicative purposes only (not to scale)

Office

Residential

N

East Road

Vestry Street

LOWER GROUND FLOOR3,202 Sq Ft (297.5 Sq M) NIA / NSA

East Road

Vestry Street

SECOND FLOOR3,111 Sq Ft (289.0 Sq M) NIA / NSA

East Road

Vestry Street

GROUND FLOOR2,550 Sq Ft (236.9 Sq M) NIA / NSA

East Road

Vestry Street

THIRD FLOOR3,113 Sq Ft (289.2 Sq M) NIA / NSA

East Road

Vestry Street

9

TENANCY

The property is multi let in accordance with the tenancy schedule on eight commercial leases and five assured shorthold tenancy agreements, providing a total rental income of £531,469 per annum which equates to a low average rent of £35.34 per sq ft.

The vendor will provide a 12 month rent, rates, and service

charge guarantee on the vacant office accommodation.

All of the leases, except 81-83 East Road let to Mintland

Properties Limited, are excluded from the security of

tenure and compensation provisions of sections 24-28

of the Landlord and Tenant Act 1954 (as amended).

TENURE

Freehold.

10

TENANCY SCHEDULE

DEMISE TENANT ACCOMMODATION SQ FT SQ M LEASE DETAILSRENT PER ANNUM

(£PSF)ERV (£PSF) COMMENTS

75-79 East RoadHighrise Marketing Limited

Third Floor (Part Left) - Offices 1,059 98.4 2 yearsFrom:

To:01/04/2019 31/03/2021

£30,000 (£28.33)

£68,835 (£65.00)

Mutual break option on 01/12/2019 subject to 3 months notice and rolling thereafter.

75-79 East Road Vopulus Limited Third Floor (Right) - Offices 984 91.4 3 yearsFrom:

To:26/04/2017

25/04/2020£49,000 (£49.80)

£63,960 (£65.00)

Tenant has expressed an interest to extend their lease.

75-79 East Road Vacant Third Floor (Part Left) - Offices 224 20.8 1 yearFrom:

To:Completion

£12,320 (£55.00)

£14,560 (£65.00)

The vendor will provide an 12 month rent, rates and service charge guarantee.

75-79 East Road Individual Second Floor - Offices 2,267 210.6 2 yearsFrom:

To:30/09/2018 29/09/2020

£88,720 (£39.14)

£141,688 (£62.50)

Mutual break option on 01/09/2020 subject to 3 months notice and rolling thereafter. Tenant has expressed an interest to extend their lease.

75-79 East Road Individual First Floor (Right) - Offices 951 88.4 3 yearsFrom:

To:22/11/2019 21/11/2022

£31,200 (£32.81)

£59,438 (£62.50)

Mutual break option on 15/01/2021 subject to 3 months notice and rolling thereafter.

75-79 East Road Vacant First Floor (Left) - Offices 1,314 122.1 1 yearFrom:

To:Completion

£68,985 (£52.50)

£82,125 (£62.50)

The vendor will provide an 12 month rent, rates and service charge guarantee.

75 East RoadYes Engineering Group Limited

Ground Floor - Offices Lower Ground Floor - Offices Sub Total

903 1,182

2,085

83.9 109.8 193.7

5 yearsFrom:

To:13/08/2015

12/08/2020£85,974 (£41.23)

£114,675 (£55.00)

Tenant has expressed an interest to extend their lease.

79 East RoadBlue Mount (UK) Limited

Ground Floor - Offices 690 64.1 3 yearsFrom:

To:16/03/2018 15/03/2021

£35,000 (£50.72)

£41,400 (£60.00)

Mutual break option on 15/03/2020 subject to 3 months notice and rolling thereafter. Tenant has exercised the break option, lease expires on 15/03/2020.

30a Vestry Street Individual Ground Floor - Studio Apartment 296 27.5 6 monthsFrom:

To:22/01/2020 21/07/2020

£9,880 (£33.38)

(£823.33 pcm)

£9,880 (£823.33 pcm)

AST

77-79 East Road Vopulus Limited Lower Ground Floor - Offices 299 27.8 2.75 yearsFrom:

To:07/07/2017

25/04/2020£3,000

(£10.03)£9,718

(£32.50)Tenant has expressed an interest to extend their lease.

77-79 East Road IndividualLower Ground Floor - Studio Apartment

774 71.9 6 monthsFrom:

To:20/01/2020 19/07/2020

£11,440 (£14.78)

(£953.33 pcm)

£11,440 (£953.33 pcm)

AST Rent deposit of £1,100

30 Vestry Street Individual Third Floor - Studio Apartment 846 78.6 6 monthsFrom:

To:29/12/2019

28/06/2020

£15,430 (£18.24)

(£1,285.83 pcm)

£15,960 (£1,330.00 pcm)

AST Rent deposit of £1,620

30 Vestry Street Individual Second Floor - Studio Apartment 844 78.4 6 monthsFrom:

To:01/02/2019 31/07/2019

£14,560 (£17.25)

(£1,213.33 pcm)

£15,960 (£1,330.00 pcm)

AST Rent deposit of £1,620

30 Vestry Street Individual First Floor - Studio Apartment 798 74.1 1 yearFrom:

To:18/01/2020 17/01/2021

£15,960 (£20.00)

(£1,330.00 pcm)

£15,960 (£1,330.00 pcm)

AST Rent deposit of £1,500

81-83 East RoadMintland Properties Limited

Ground Floor - Retail Lower Ground Floor - Retail Sub Total

661 947

1,608

61.4 88.0

149.412 years

From: To:

R/R:

25/03/2015 24/03/2027 20/04/2023

£60,000 (£37.31)

£88,440 (£55.00)

TOTALS 15,039 1,397.2£531,469 (£35.34)

£754,037 (£50.14)

11

DEVELOPMENT POTENTIAL

The property currently benefits from detailed planning permission dated 29th April 2019 (Ref: 2019/0595) for the following:

- Erection of a part one, part two storey roof

extension, for office use, and roof terrace providing

5,070 sq ft (471 sq m) of net internal floor area;

- Change of use of 3 x residential dwellings (use class

C3) to offices (use class B1) at first, second and

third floors;

- Internal reconfiguration;

- Associated provision of cycle parking, waste storage

and plant at basement and roof level

In addition to the above, the vendor obtained planning

permission on 3rd June 2016 (Ref: 2015/4106) for a two

storey roof extension to provide six flats (3x1 bed, 1x2 bed

and 2x3 bed), including a communal garden providing

4,940 sq ft (459.0 sq m) of net saleable floor area.

Old Street has an established and thriving residential

market, which has flourished in recent years. There is a

strong demand from both owner occupiers and investors

for good quality residential in the location and the draw

of the restaurants, shops and excellent transport links

appeal to young professionals. Capital growth in the area

has been strong with top values reaching in excess of

£1,200 per sq ft.

12

PROPOSED FLOOR PLANS

FOURTH FLOOR3,186 Sq Ft (296.0 Sq M) NIA

FIFTH FLOOR1,884 Sq Ft (175.0 Sq M) NIA

East

Ro

ad

East

Ro

ad

Vest

ry S

treet

Vest

ry S

treet

For indicative purposes only (not to scale)

N

13

CITY FRINGE OFFICE MARKET

Old Street is now considered the centre for all emerging technical, media and creative agencies. These businesses vary in size and range from start-ups through to larger global companies. Prime City fringe office rents are currently in the excess of £80 per sq ft.

RENTAL COMPARABLESAddress Date Area (sq ft) Rent (£psf)

Bower Building – 207–211 Old Street, EC1 Q4 2019 11,306 £82.00

Spectrum, 160 Old Street, EC1 Q2 2019 5,512 £72.50

Chapter House,1 Cranwood Street, EC1 Q2 2019 7,449 £67.50

34–38 Provost Street, N1 Q2 2019 11,223 £60.50

INVESTMENT COMPARABLESAddress Date Area (sq ft) AWULT Date Price Net Initial Yield Cap Val psf

24/25 Britton Street, EC1 Kurt Geiger Limited 51,502 15 years Q4 2019 £64,500,000 4.07% £1,252

34–38 Provost Street, N1 Meira GTx UK II 11,223 5 years Q4 2019 £13,500,000 4.71% £1,203

7–9 Woodbridge Street, EC1 ETCH (UK) Limited 3,145 1.8 years Q4 2019 £4,250,000 4.42% £1,351

Vestry Street Studios,

10–19 Vestry Street & 65–69 East Road, N1Multi Let 22,562 1.5 years Q3 2019 £19,250,000 5.01% £853

99 Clifton Street, EC2 R/GA Media Group Limited 45,255 8.8 years Q3 2019 £58,900,000 4.50% £1,302

The submarket has been radically transformed in recent

years due to the delivery of new office stock within flagship

mixed use schemes by leading developers Great Portland

Estates, Derwent London and Helical Bar primarily at

Spectrum, White Collar Factory and The Bower. These

schemes have acted as a catalyst for change in a submarket

which now boasts some of Tech City’s best quality office

space and supporting residential and leisure amenity.

14

MISREPRESENTATION ACT 1967 Messrs Springer Nicolas and GC Real Estate for themselves and for the vendors or lessors 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) Messrs Springer Nicolas and GC Real Estate 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) no employee of Messrs Springer Nicolas and GC Real Estate has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property; (iv) rents, prices, premiums and service charge quoted

in these particulars may be subject to VAT in addition; and (v) Messrs Springer Nicolas and GC Real Estate will not be liable, in negligence or otherwise, for any loss arising from the use of these particulars. (vi) 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.

Designed by Cre8te.

GC REAL ESTATE

SERVICE CHARGEThe service charge runs from 1st April to 31st March. The

budget for 2019/2020 is £47,576 (£4.35 per sq ft) exclusive

of VAT. Further details are available within the data room.

CAPITAL ALLOWANCESThere are no capital allowances available.

VALUE ADDED TAXThe property is not elected for VAT.

INVESTMENT RATIONALE- Attractive former Victorian warehouse;

- Unprecedented tenant demand for the location;

- Limited available office supply;

- Low average passing rent of £35.34 per sq ft;

- Grade A office rents around Old Street and Shoreditch

are now in excess of £80.00 per sq ft;

- Opportunity to change the use of the 3 apartments at

first, second and third floors to offices;

- Opportunity to create 5,070 sq ft (471.0 sq m) of

additional office accommodation by developing the

consented fourth and fifth floors;

- Low capital value per sq ft

PROPOSALThe vendor is seeking offers in excess of £11,000,000

(Eleven Million Pounds) subject to contract, for the

benefit of their freehold interest. A purchase at this level

would reflect a net initial yield of 4.52% after allowing for

purchasers costs of 6.8% and a low capital value of

£731 per sq ft.

EPCEPCs have been commissioned and are available within

the data room.

FURTHER INFORMATIONFor further information please do not hesitate to contact:

www.springernicolas.co.uk

www.gcrea lestate .co.uk

RYAN SPRINGER ryan@springernicolas.co.uk

020 3667 5050

07932 792 531

ALEXIS NICOLAS

alexis@springernicolas.co.uk

020 3667 5050

07932 708 881

GEORGE COLLINS

george@gcrealestate.co.uk

0787 260 5362

East

Ro

ad

Chart Street

Haberdasher Street

Vest

ry S

tree

t

Nile Street

Pro

vo

stS

tree

t