PRIME SHOREDITCH RETAIL INVESTMENT

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Georgia Phillips
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1 LONDON E2 PRIME SHOREDITCH RETAIL INVESTMENT

Investment Summary East London s most desired fashion and restaurant destination Part of a newly developed prominent corner building in the prime pitch of Redchurch Street New 999

8 sq m) over ground floor and basement Let to two global brands J Crew Clothing and Allpress Espresso until 2025, with open market rent reviews in 2020 and 2021 respectively Combined

291,700 per annum Soho House occupy the upper floors as a five-star boutique hotel Next door development includes Cecconi s new flagship restaurant The property is set to benefit from

2 Investment Summary East London s most desired fashion and restaurant destination Part of a newly developed prominent corner building in the prime pitch of Redchurch Street New 999 year virtual freehold interest Two retail units totalling 2,183 sq ft (202.8 sq m) over ground floor and basement Let to two global brands J Crew Clothing and Allpress Espresso until 2025, with open market rent reviews in 2020 and 2021 respectively Combined passing rent of 195,000 per annum, reflecting 148 psf Zone A With recent lettings on the street reaching in excess of 225 Zone A, the asset is considered reversionary with an ERV of 291,700 per annum Soho House occupy the upper floors as a five-star boutique hotel Next door development includes Cecconi s new flagship restaurant The property is set to benefit from several major placemaking developments in the immediate vicinity Amazon have secured 430,000 sq ft of office space at nearby Principal Place Offers are invited in excess of 5,500,000, reflecting a net initial yield of 3.33%, with a reversionary yield of 4.98%, assuming purchasers costs of 6.61%.

3 SHARD GHERKIN LIVERPOOL STREET MOORGATE SPITALFIELDS MARKET BOX PARK SHOREDITCH HIGH STREET OLD STREET

CITY ROAD SHOREDITCH KINGSLAND RD HOXTON (12 mins walk) HACKNEY ROAD GOSWELL ROAD OLD STREET BARBICAN (24 mins walk) BARBICAN MOORGATE OLD STREET (12 mins walk) MOORGATE (18 mins walk) LONDON WALL

WHITECHAPEL BETHNAL GREEN RD WEAVERS FIELD BETHNAL GREEN (16 mins walk) WHITECHAPEL (18 mins walk) BETHNAL GREEN THE ROYAL LONDON HOSPITAL Redchurch Street Redchurch Street is now considered some of

The street is a key east to west link from Shoreditch High Street to the famous Brick Lane, forming part of a circular route through some of East London s trendiest fashion and leisure destinations

With its proximity to both the City district and tech rich Old Street, Redchurch Street benefits from high footfall levels, attracting one of the most diverse and affluent demographics in London.

Silicon Roundabout and of course sits within the fascinating creativity of Shoreditch.

4 CITY ROAD SHOREDITCH KINGSLAND RD HOXTON (12 mins walk) HACKNEY ROAD GOSWELL ROAD OLD STREET BARBICAN (24 mins walk) BARBICAN MOORGATE OLD STREET (12 mins walk) MOORGATE (18 mins walk) LONDON WALL GREAT EASTERN STREET BISHOPGATE B122 LIVERPOOL STREET (12 mins walk) SHOREDITCH HIGH STREET (2 mins walk) OLD SPITALFIELDS MARKET COMMERCIAL ST BRICK LANE CHESHIRE ST BRICK LANE MARKET WHITECHAPEL RD WHITECHAPEL BETHNAL GREEN RD WEAVERS FIELD BETHNAL GREEN (16 mins walk) WHITECHAPEL (18 mins walk) BETHNAL GREEN THE ROYAL LONDON HOSPITAL Redchurch Street Redchurch Street is now considered some of the most sought-after retail space in East London; with its swirls of graffiti, unique quirky buildings and recent influx of high-end fashion and lifestyle retailers. The street is a key east to west link from Shoreditch High Street to the famous Brick Lane, forming part of a circular route through some of East London s trendiest fashion and leisure destinations such as Old Spitalfields Market and Bishops Square. With its proximity to both the City district and tech rich Old Street, Redchurch Street benefits from high footfall levels, attracting one of the most diverse and affluent demographics in London. Communications Redchurch Street draws on immediate accessibility to a variety of different cultures and demographics; the most influential financial district in the City, the innovative tech hub of Silicon Roundabout and of course sits within the fascinating creativity of Shoreditch. Its closet major transport hub is Liverpool Street (12 min walk) and with the opening of the Crossrail (Elizabeth Line) in December 2019, journey times from Liverpool Street are set to decrease significantly. Thus, Shoreditch will be more accessible than ever. In total, the property benefits from four major transport hubs within walking distance; London s Underground, Overground, Crossrail and National rail services, making it increasingly easy to access all corners of the capital and beyond. THE BOND STREET OF EAST LONDON FINANCIAL TIMES

Local Developments a transforming location 2 1THE GOODSYARD LONDON HUNTINGDON ESTATE Hammerson and Ballymore have submitted plans for the Located 50 metres from 58

5 hectare Newcastle and UK & European have proposals for a major former rail depot which has been vacant for the past high end mixed-use development fronting

The scheme 1,360 new homes, new offices, shops and public space, consists of retail, café, restaurant, office, leisure and including a raised public garden.

independent businesses, start-ups and local people.

setting capital of the World. With a strong underlying arts heritage, Shoreditch has had a long standing affiliation with a wide range of creative industries.

The of Bishopsgate Tower between Worship Street and Hearn first phase is now completed and the second phase has Street.

5 Local Developments a transforming location 2 1THE GOODSYARD LONDON HUNTINGDON ESTATE Hammerson and Ballymore have submitted plans for the Located 50 metres from 58 Redchurch Street, London & development of Bishopsgate Goodsyard, the 4.5 hectare Newcastle and UK & European have proposals for a major former rail depot which has been vacant for the past high end mixed-use development fronting Redchurch 50 years. Proposals include a mixed-use scheme of up to Street, Ebor Street and Bethnal Green Road. The scheme 1,360 new homes, new offices, shops and public space, consists of retail, café, restaurant, office, leisure and including a raised public garden. Goodsyard will cater art gallery/ exhibition space with 80 luxury residential for growing Tech City media & technology demands, apartments above. independent businesses, start-ups and local people. Shoreditch Shoreditch, located in the London Borough of Hackney, is one of London s most vibrant, exciting and prospering areas, earning its reputation as the trend setting capital of the World. With a strong underlying arts heritage, Shoreditch has had a long standing affiliation with a wide range of creative industries. Over recent years, its appeal has grown to include leading media and professional firms with its proximity to the Silicon roundabout, becoming one of London s fastest growing districts. 3 4 PRINCIPAL PLACE SHOREDITCH VILLAGE A substantial development site located immediately north A two-phase re-development of Shoreditch village. The of Bishopsgate Tower between Worship Street and Hearn first phase is now completed and the second phase has Street. The development will comprise an impressive been acquired by Brockton Capital. Located just east of 15-storey, 600,000 sq ft office building, 430,000 sq ft of the property, the site is bound by Shoreditch High Street, which has been pre-let to Amazon, a brand new public Holywell Lane & New Inn Yard. Proposals include a 150,000 piazza comprising half an acre of public realm, an events sq ft mixed-use and public realm scheme offering retail, space and more than 20,000 sq ft of retail space, cafés café, restaurant, residential and commercial space. and restaurants. The scheme is due for completion AMAZON HAVE TAKEN 430,000 SQ FT AT PRINCIPAL PLACE

THE PROPERTY CONSISTS OF TWO NEWLY DEVELOPED RETAIL UNITS PROVIDING HIGH QUALITY TRADING SPACE AT GROUND FLOOR AND ANCILLARY SPACE AT BASEMENT

their members. This is accessed from 11 Club Row.

6 THE PROPERTY CONSISTS OF TWO NEWLY DEVELOPED RETAIL UNITS PROVIDING HIGH QUALITY TRADING SPACE AT GROUND FLOOR AND ANCILLARY SPACE AT BASEMENT LEVEL The Situation The retail units sit within a wider building redevelopment, which has completely transformed the existing building into a focal point of Redchurch Street. The four upper floors now form Soho House s latest addition to their exclusive social club estate, providing a five-star boutique hotel for their members. This is accessed from 11 Club Row. Next door to the J Crew unit, a final phase of development is now underway, creating a flagship restaurant unit which has been pre-let to renowned Italian restaurant Cecconi s, with the upper floors providing additional rooms to the Soho House hotel. THE EXCLUSIVE SOHO HOUSE ABOVE AND CECCONI S FLAGSHIP RESTAURANT TO OPEN NEXT DOOR IN AUGUST 2018

Accommodation The property provides a total area of 2,183 sq ft (202.

1 Ground ITZA 293 27.2 Basement Ancillary 200 18.6 Sub-total 513 47.

7 Accommodation The property provides a total area of 2,183 sq ft (202.8 sq m) as measured in accordance with the RICS Code of Measuring Practice (6th Edition). UNIT FLOOR DESCRIPTION SQ FT SQ M Unit 1, Allpress Ground Retail Sales Ground ITZA Basement Ancillary Sub-total Unit 2, J Crew Ground Retail Sales 1, Ground ITZA Basement Ancillary Sub-total 1, TOTAL 2, GROUND FLOOR BASEMENT Floorplans for indicative purposes only

Tenancy DEMISE TENANT FLOOR SQ FT SQ M Unit 1, 58 Redchurch Street Unit 2, 58 Redchurch Street Tenure Allpress Espresso UK Limited J Crew

1 LEASE START The property is offered Virtual Freehold on a new 999 year leasehold interest at a peppercorn rent, for ground floor and

LEASE END RENT REVIEW RENT PA (PSF) 16/10/15 15/10/25 16/10/21 45,000 ( 148 ZA) 24/08/15 23/08/25 24/08/20 150,000 ( 148 ZA) ERV PA (PSF)

8 195,000 291,700 COMMENTS - Outside the L&T Act 1954 -Outside the L&T Act 1954 N Club Row Redchurch Street Allpress Espresso are coffee

Now, working with over 1000 independent cafes around the world and through their 11 roastery locations, they have established themselves

8 Tenancy DEMISE TENANT FLOOR SQ FT SQ M Unit 1, 58 Redchurch Street Unit 2, 58 Redchurch Street Tenure Allpress Espresso UK Limited J Crew UK Limited Ground Basement Sub-Total Ground Basement 1, Sub-Total 1, LEASE START The property is offered Virtual Freehold on a new 999 year leasehold interest at a peppercorn rent, for ground floor and basement only. LEASE END RENT REVIEW RENT PA (PSF) 16/10/15 15/10/25 16/10/21 45,000 ( 148 ZA) 24/08/15 23/08/25 24/08/20 150,000 ( 148 ZA) ERV PA (PSF) 63,700 ( 225 ZA) 228,000 ( 225 ZA) TOTAL 2, , ,700 COMMENTS - Outside the L&T Act Outside the L&T Act 1954 N Club Row Redchurch Street Allpress Espresso are coffee roaster and espresso specialists. Founded in 1989 they were New Zealand s first ever coffee cart. Now, working with over 1000 independent cafes around the world and through their 11 roastery locations, they have established themselves as a leading espresso coffee brand. For more information on this tenant please visit The J Crew Group is an internationally recognised omnichannel fashion retailer of women s, men s and children s apparel, shoes and accessories. The company operates from over 570 stores globally and established e-channel platforms. For more information on this tenant please visit

retail offer The street s reputation as East London s centre for stylish boutiques, independent store and vintage shops has attracted many premier fashion and lifestyle brands.

9 BOUNDARY STREET DIRTY BURGER STUDIO 1.1 DRAGANA PERISIC BY WALSKI FORSTER INC LE LABO BEACH BLANKET BABYLON IN HOUSE OFFICE ENTRANCE CYGNET SREET THE REDCHURCH UNDER ALTERATION PRET A MANGER SHOREDITCH FISH & CHIPS Redchurch Street s retail offer The street s reputation as East London s centre for stylish boutiques, independent store and vintage shops has attracted many premier fashion and lifestyle brands. French fashion designer APC, Nudie Jeans, Versace s Versus brand, Aesop, Club Monica and Murdock to name a few, have all established themselves on the street. The most recent open marketing letting evidence on the street is Kite Eyewear s occupation of Redchurch Street at a rent reflecting 226 per sq ft Zone A. Redchurch Street s restaurant and café offer is thriving, attracting new types of customers to the street and increasing dwell time. Established institutions such as Shoreditch House, Albion Café and The Boundary mixed with exciting new dining concepts such as The Smoking Goat bring together an offering to rival most. This is added to by Cecconi s, the world renowned Italian fine dining restaurant, committing to take the flagship restaurant development adjacent to the subject property. BRICK LANE SWANFIELD STREET TURVILLE STREET LUCKIES GIFTS FRANZE & EVANS EIZENSTEIN RADIO HAIRDRESSING WHISTLES MEN CHANCE STREET THE PAINTED LADY TRACEY NEULS HOUSE OF TOO GOOD JJ WILLIAMS ELEMENTARY KLAUS HAPPANIEM LABOUR AND WAIT MONOLOGUE DWELLINGS REDCHURCH STREET VINTAGE GUITAR BOUTIQUE BREWDOG BAR EST AG DISHOOM FOLK DWGS THE SHOREDITCH MASJID TRUST ANDINA SWEATY BETTY UPHOLSTERY SUNSPEL ALBION CAFE BOUNDARY HOTEL A.P.C. AIME DWELLINGS KITE NUDIE JEANS REDCHURCH STREET TIMOTHY EVEREST MODERN SOCIETY VERSUS VERSACE THE OWL & PUSSYCAT PATTY & BUN UNDER ALTERATION OFFICE WALLUC MIISTA AESOP MURDOCK T2 BURRO E SALVA PASTIFICO CLUB MONACO SOHO HOUSE & CECCONI S SOHO HOUSE OFFICE BRANDY MELVILLE CLUB ROW BARBER & PARLOUR THE ELECTRIC CINEMA REDSOFA BETHNAL GREEN ROAD BRICK LANE NEW DEVELOPMENT SHOREDITCH VILLAGE SMOKING GOAT EBOR STREET PSYCLE HEALTH CLUB WHITBY STREET RACHEL ENTWISTLE DIRTY BONES URBAN INTERIOR DECORATIONS BACON STREET SHOREDITCH NEW DEVELOPMENT HUNTINGDON ESTATE GINA S PIZZA EAST LYLE S COWSHED SHOREDITCH HIGH STREET BETHNAL GREEN ROAD SCLATER STREET SHOREDITCH HIGH STREET LONDON OVERGROUND NORTH

Investment Market The central London retail investment market continues to perform well, with total transaction volumes reaching 1.47 billion in 2017.

10 Investment Market The central London retail investment market continues to perform well, with total transaction volumes reaching 1.47 billion in London remains the preferred location for overseas investors attracted to the transparent, low interest rate environment and opportunities around sterling devaluation. Whilst Asian and Middle Eastern buyers remained very active in the market, it was in fact domestic buyers who thrived in 2017, accounting for 47% of volumes. This shows the depth of buyer profiles active in the Central London retail market. Pricing remains strong across all central London retail sub-markets with record low yields being maintained for prime assets with strong investment fundamentals. VAT The property has been elected for VAT. It is intended that the transaction will be treated as a Transfer Of a Going Concern. PROPOSAL Offers are invited in excess of 5,500,000, reflecting a net initial yield of 3.33%, with a reversionary yield of 4.98%, assuming purchasers costs of 6.61%. PLANNING The property is located within the administrative boundaries of Tower Hamlets City Council. It is not listed. ENERGY PERFORMANCE Both units have an EPC rating C. A copy of both Energy Performance Certificates are available on request. CONTACTS For further information, or to arrange an inspection of the property, please contact: OLIVER JORDAN t: m: e: oliver.jordan@cbre.com ADAM CHURTON t: m: e: adam.churton@cbre.com MARK HOFFMAN t: m: e: mark@rib.co.uk DISCLAIMER: CBRE Limited and Robert Irving Burns on their behalf and for the Vendors or Lessors of this property whose Agents they are, give notice that: 1. These particulars are set out as a general outline only for guidance to intending Purchasers or Lessees, and do not constitute any part of an offer or contract. 2. Whilst CBRE Limited uses reasonable endeavours to ensure that the information in these particulars is materially correct, any intending Purchasers, Lessees or Third Parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection, searches, enquiries, surveys or otherwise as to their accuracy. CBRE Limited as such cannot be held responsible for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss of profits resulting from direct or indirect actions based upon the content of these particulars. 3. No person in the employment of CBRE Limited has any authority to make any representation or warranty whatsoever in relation to this property. 4. Unless otherwise stated, all purchase prices and rents are correct at the date of publication and, unless otherwise stated, are quoted exclusive of VAT. Lease details and service ground rents (where applicable) are given as a guide only and should be checked and confirmed by your solicitor prior to exchange of contracts. February 2018.

Prime high street retail investment. Shoreditch E2

Prime high street retail investment Shoreditch E2 Investment Considerations Prime retail and residential property in s thriving cultural hub,, Shoreditch. is amongst the most sought after address in East.