FREEHOLD INVESTMENT SECURELY LET TO MOORFIELDS EYE HOSPITAL NHS FOUNDATION TRUST 7 9 BATH STREET & 4 12 CAYTON STREET, LONDON EC1

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1 BATH &, LONDON EC1 FREEHOLD INVESTMENT SECURELY LET TO MOORFIELDS EYE HOSPITAL NHS FOUNDATION TRUST 7 9 BATH & 4 12, LONDON EC1

2 INVESTMENT HIGHLIGHTS Freehold Attractive warehouse-style corner property Prime Old Street location in the heart of London s thriving creative and technology quarter 23,158 sq ft (2,151 sq m) NIA of flexible accommodation arranged over basement, ground and five upper floors Securely let to Moorfields Eye Hospital NHS Foundation Trust (D&B rating of 5A1) 7.6 years to lease expiry (31st August 2025) Passing rent of 731,364 per annum, reflecting a low overall passing rent of per sq ft Opportunity to drive rental performance at September 2020 rent review. Prime office rents in the immediate area are now in excess of per sq ft The west to east migration of talent and arrival of the Elizabeth Line from 2018 will continue to fuel occupational demand in this vibrant London market Future refurbishment and redevelopment potential with the immediate area set to benefit from the delivery of several major developments and infrastructure upgrades THE PROPOSAL Offers in excess of 17,120,000 are invited for the freehold interest, subject to contract This reflects a net initial yield of 4.00% (assuming usual purchasers costs of 6.74%) and an attractive capital value of 739 per sq ft

3 Hoxton Square Shoreditch High Street Old Street Silicon Roundabout Liverpool Street The Honourable Artillery Company Moorgate Liverpool Street (Western entrance) Whitecross Street Food Market LOCAL OCCUPIERS Southbank City of London GREAT EASTERN ST. Shoreditch CLERKENWELL ROAD BATH & B AT H

4 THE NEIGHBOURHOOD 15 MINUTES 5 MINUTES HAGGERSTON 10 MINUTES ANGEL BATH & 5 MINUTES NEW N ROAD SHOREDITCH HIGH HOXTON Old Street is one of London s most vibrant, diverse and sought after locations; favoured by both innovative start-ups and some of the world s largest technology, media and telecommunications (TMT) organisations, including Microsoft, Google and Amazon. Such is the demand for space from this sector the neighbourhood has fast become known as London s Tech City centred around Old Street Silicon roundabout. More recently a growing number of corporate, educational and research occupiers, traditionally based in the West End, Midtown and City of London, are making Old Street their location of choice as they seek to refresh their image and access talent. Broad sector demand is driving competition for space resulting in record Old Street rental levels being achieved. FARRINGDON ROAD CLERKENWELL ROAD GOSWELL ROAD FARRINGDON BARBICAN CHANCERY LANE CHARTERHOUSE NEWGATE ST PAUL S ALDERSGATE CH 5 MINUTES CHISWELL 10 MINUTES 5 MINUTES 15 MINUTES OLD MOORGATE including Liverpool Street Western Entrance LONDON WALL GREAT EASTERN COMMERCIAL LIVERPOOL BISHOPSGATE SHOREDITCH HIGH ALDGATE EAST ALDGATE The burgeoning business and residential population is supported by a vibrant 24/7 amenity offering, which boasts a wide choice of restaurants, coffee houses, bars, clubs and boutique hotels. The amenity encapsulates the Old Street vibe ensuring it remains at the forefront of London s buzzing lifestyle scene. With this part of London set to benefit considerably from the arrival of the Elizabeth Line (Crossrail) in 2018, there has been and continues to be significant investment in the area which will further transform and evolve the immediate locality. 5 MINUTES 10 MINUTES 15 MINUTES RELAX AND UNWIND Jamie Oliver s Fifteen Whitecross St Food Market Nightjar Ozone Coffee Honest Burger Ceviche PLACES TO STAY Z Hotel M by Montcalm RELAX AND UNWIND Happiness Forgets The Hoxton Grill The Book Club The Breakfast Club Dishoom HIX s Tramshed PLACES TO STAY The Hoxton Hotel Citizen M Shoreditch RELAX AND UNWIND Spitalfields Market Pizza East Shoreditch House Lyle s The Clove Club Bull in a China Shop PLACES TO STAY The Boundary Ace Hotel

5 TRANSPORT ELIZABETH LINE (CROSSRAIL) Located at the heart of the Tech and Media belt between Clerkenwell and Shoreditch, the property is well placed to attract London s creative talent. Old Street station is less than a five minute walk away providing access to the London Underground (Northern Line) and National Rail services. Just a 10 minute walk from the building is Moorgate where the new western ticket hall for Liverpool Street station s Elizabeth Line services is located. The Elizabeth Line is due to open in 2018 and is set to transform Central London s transport capacity from east to west and substantially reduce journey times. BATH & HAYES & HARLINGTON HANWELL EALING BROADWAY TOTTENHAM COURT ROAD STRATFORD SOUTHALL WEST EALING PADDINGTON ACTON MAIN LINE BOND FARRINGDON WHITECHAPEL LIVERPOOL CANARY WHARF HEATHROW KING S CROSS ST. PANCRAS ANGEL BATH & UNDERGROUND / ELIZABETH LINE Travel times from Old Street Station FARRINGDON BARBICAN MOORGATE LIVERPOOL Moorgate Bank London Bridge King s Cross St Pancras Euston Liverpool Street Tottenham Court Road Waterloo Canary Wharf Bond Street Victoria Paddington Heathrow 2 mins 4 mins 5 mins 5 mins 7 mins 8 mins 12 mins 12 mins 14 mins 14 mins 17 mins 18 mins 41 mins BANK Travel times from tfl.gov.uk and crossrail.co.uk LONDON BRIDGE Moorgate Elizabeth Line entrance CGI

6 LOCAL DEVELOPMENTS 2 The Atlas Building, 145 City Road 3 Spectrum, 160 Old Street 4 White Collar Factory, Old Street Roundabout 2 EAST ROAD HOXTON BATH & BRUNSWICK PLACE BATH BUNHILL ROW 5 OLD 1 GREAT EASTERN WILLOW 3 BUNHILL FIELDS 4 LEONARD TABERNACLE CLERE LUKE EPWORTH LEONARD SCRUTTON RAVEY 6 Great Portland Estates 153,000 sq ft speculative office development. 98,539 sq ft pre-let to Turner Broadcasting. Completion Derwent London 237,000 sq ft office led development. Entirely let having achieved rents of per sq ft. 1 Old Street Roundabout 5 The Bower, Old Street Roundabout 6 The Curtain Hotel, 45 Curtain Road Currently undergoing a comprehensive 50 million regeneration delivering an iconic, world class centre to London s Tech City. Rocket Investments 40 storey, 302 apartment residential tower and 9 storey 83,000 sq ft office building. Commercial pre-let to WeWork. Completion Helical Plc Landmark 320,000 sq ft scheme comprising office, restaurant and retail accommodation. The Warehouse and Studio are fully let. The Tower completes summer 2018 with 59,000 sq ft pre-let to WeWork. Gansevoort Hotel Group 120 bedroom hotel with rooftop pool, live music venue and members club. Recently completed.

7 DESCRIPTION SPECIFICATION The property is an attractive warehouse style building of steel frame construction with brick elevations and stonework features. The property provides 23,158 sq ft NIA of flexible accommodation arranged over basement, ground and five upper floors. The property benefits from regular floor plates with good natural light to all three principal elevations. There are two entrances to the property. The Bath Street entrance provides access to the private eye hospital which is arranged over part ground and the five upper floors. The remainder of the ground floor is occupied by the NHS virtual clinic, accessed from Cayton Street. The basement provides ancillary office accommodation and storage. There is a redundant bridge link at second floor level between the property and the neighbouring UCL Institute of Ophthalmology.* *Additional information is available in the data room. The property comprises a mixture of modern consultancy suites and clinics with additional waiting areas, ancillary offices and storage. The tenant undertook a comprehensive refurbishment in 2015 with the majority of accommodation benefiting from perimeter or underfloor trunking, a mixture of suspended fibre tile and plasterboard ceilings with inset lighting and individually controlled climate control cassettes. There are two lifts located at either end of the property. The lift servicing the Bath Street entrance has access to all floors but is capped off at 4th floor level. The lift serving the Cayton Street entrance provides access to all floors.

8 B A T H S T R E E T B A T H S T R E E T ACCOMMODATION The property provides the following areas: 5TH FLOOR 2,866 sq ft sq m Floor NIA sq m NIA sq ft GIA sq m GIA sq ft B A T H S T R E E T Roof th , ,581 4th , ,132 C A Y T O N S T R E E T 3rd , ,152 2nd , ,134 1st , ,076 Ground , ,187 1ST FLOOR 3,240 sq ft sq m Basement , ,098 B A T H S T R E E T Total 2, ,158 2, ,078 The property has been measured by Plowman Craven in accordance with the RICS Code of Measuring Practice (6th Edition). C A Y T O N S T R E E T GROUND FLOOR 3,974 sq ft sq m C A Y T O N S T R E E T BASEMENT 3,442 sq ft sq m C A Y T O N S T R E E T Not to scale and indicative only

9 COMPARABLE LEASING ACTIVITY Date Address Floor Area (sq ft) Reported Rent Tenant U/O The Epworth Building, City Road, EC1 5th 6th 12, psf Telecoms occupier Dec 2017 Spectrum, 160 Old Street, EC1 LG & G 3rd 98,539 COMPARABLE INVESTMENT ACTIVITY Address Tenure NIA (sq ft) Price NIY Capital Value Purchaser Date C Space, City Road EC1 Napier House & Hertford House, 1 2 Cranwood Street EC1 Dial-A-Cab House East Road N1 Argus House, St John Street EC psf (overall) FH 63,536 74m 4.60% 1,165 FH 26, m N/A 960 FH 15, m N/A 1,498 FH 14, m N/A 852 Turner Broadcasting June Bonhill Street, EC2 5th 12, psf Crabtree & Evelyn June Wilson Street, EC2 5th 6th 11, psf The Bio Agency Ltd April Old Street Yard, EC1 3rd 4th 7, psf Red Badger Consulting Ltd Jan 2017 Churchill House, Old Street, EC1 5th 3, psf Maplin Electronics Ltd Dec Luke Street, EC2 LG 5th 30, psf Rise London Dec 2016 The Bower Phase II, Old Street, EC1 1st 6th 59,000 Dec 2016 C Space, City Road, EC1 P3rd 4th 15, psf (on best) psf WeWork NeuLion Ltd Meadow Partners LBS Properties ERL Developments Private Investor Nov 17 Sept 17 Aug 17 Aug 17 The property offers desirable medium term income secured against the undoubted covenant of the NHS, at an attractive capital value of 739 per sq ft. There is a short term opportunity to drive rental performance at rent review in 2020, with the passing rent of per sq ft set positively against Old Street prime rents, currently in excess of 65 per sq ft. Longer term the property offers multiple opportunities including a re-gear, lease extension, refurbishment or comprehensive redevelopment. Churchill House, Old Street EC1 FH 26, m 4.30% 969 UBS Jul 17 Gilray House, City Road EC1 FH 11,023 11m 4.55% 998 Private Investor May Old Street EC1 FH 11,034 14,250 N/A 1,291 Private Investor Jan 17

10 to Eagle House 163 to to 36 TENURE 7-9 Bath Street & 4-12 Cayton Street, EC1 is held freehold under title number NGL The approximate extent of the freehold ownership is shown in red for indicative purposes only. 190 to BATH 1 to 5 TENANCY The property is let in its entirety to Moorfields Eye Hospital NHS Foundation Trust Term of 10 years commencing 1st September 2015 and expiring 31st August to to Cayton Place Moorfields Eye Hospital Passing rent 731,364 per annum / per sq ft overall Upwards only open market rent review 1st September 2020 to the higher of B1 and D1 (medical & health) use classes Full Repairing and Insuring lease, subject to a Schedule of Condition UCL Institute of Ophthalmology The lease is held inside the protection of the Landlord and Tenant Act to 43 N PLANNING The property is located within the London Borough of Islington.* Office (Class B1) use and educational and hospital (Class D1) use. The building is currently in use predominately as D1 medical with ancillary B1. The property is not listed, but sits within the Moorfields Conservation Area. *Interested parties should make their own enquires. COVENANT Moorfields Eye Hospital NHS Foundation Trust is a leading provider of eye health services in the UK and a world-class centre of excellence for ophthalmic research and education. The trust s main focus is the treatment and care of NHS patients with a wide range of eye problems, from common complaints to rare conditions that require treatment not available elsewhere in the UK. Moorfields Eye Hospital NHS Foundation Trust is the public body that operates Moorfields Eye Hospital and predominantly operates from the main hospital site located on City Road, moments from the subject property. Over 300,000 patients are seen by the hospital each year, including over 24,000 ophthalmic operations carried out. The NHS trust employs over 1,700 people. For more information about the trust visit the Moorfields Eye Hospital website, VAT The premises have not been elected for VAT. EPC The property has an EPC rating of D92. DATA ROOM Further information is available in the online data room: Plowman Craven measured survey Registered title information Legal documents EPC Floor plans D&B report Sales particulars PROPOSAL Offers in excess of 17,120,000 are invited for the freehold interest, subject to contract. This reflects a net initial yield of 4.00% (assuming usual purchasers costs of 6.74%) and an attractive capital value of 739 per sq ft. Moorfields Eye Hospital NHS Foundation Trust has a D&B rating of 5A1. Access to the data room is password protected and can be obtained on request at: BATHAND.COM

11 BATHAND.COM CONTACT For further information or to arrange an inspection, please do not hesitate to contact the Vendor s agent: Fergus Jagger Alex Keith Amy Bryant Ben Nichols Tel. +44 (0) Mob. +44 (0) fjagger@geraldeve.com Tel. +44 (0) Mob. +44 (0) akeith@geraldeve.com Tel. +44 (0) Mob. +44 (0) abryant@geraldeve.com Tel. +44 (0) Mob. +44 (0) bnichols@geraldeve.com Conditions under which these particulars are issued All details in these particulars are given in good faith, but Gerald Eve LLP for themselves and the Vendors/Lessors of this property for whom they act give notice that:- 1. These particulars do not and shall not constitute, in whole or in part, an offer or a contract or part thereof, and Gerald Eve LLP have no authority to make or enter into any such offer or contract. 2. All statements contained in these particulars are made without acceptance of any liability in negligence or otherwise by Gerald Eve LLP, for themselves or for the Vendors/Lessors. 3. None of the statements contained in these particulars is to be relied on as a statement or representation of fact or warranty on any matter whatsoever, and intending purchasers must satisfy themselves by whatever means as to the correctness of any statements made within these particulars. 4. The Vendors/Lessors do not make, give or imply, nor do Gerald Eve LLP or any person in their employment have any authority to make, give or imply, whether in these particulars or otherwise, any representation or warranty whatsoever in relation to the property. This statement does not affect any statutory rights you may have nor does it intend to limit Gerald Eve LLP s liability which cannot be excluded or limited by law. Particulars issued February 2018.