6-8 STANDARD PLACE RIVINGTON STREET LONDON EC2 PRIME SHOREDITCH FREEHOLD MIXED-USE INVESTMENT OPPORTUNITY WITH ASSET MANAGEMENT POTENTIAL

Transcription

1 6-8 STANDARD PLACE RIVINGTON STREET LONDON EC2 PRIME SHOREDITCH FREEHOLD MIXED-USE INVESTMENT OPPORTUNITY WITH ASSET MANAGEMENT POTENTIAL

2 6-8 STANDARD PLACE INVESTMENT SUMMARY 2 Freehold. Prime Shoreditch location situated at the heart of the highly coveted Shoreditch Triangle. Old Street Roundabout and the Tech City cluster are located just a few hundred metres to the west of the property, with the forthcoming Elizabeth Line (Crossrail) at Liverpool Street/ Moorgate, Old Street and Shoreditch High Street stations all within close walking distance sq m (8,038 sq ft) NIA of recently refurbished media style office and ancillary accommodation arranged over ground and 3 upper floors. Two penthouse apartments with substantial terraces and spectacular City views on the 4th and part 5th floors extending to approximately sq m (2,410 sq ft) NSA. Multi-let to 5 office and 2 residential tenants with a Weighted Average Unexpired Lease Term of 3.25 years to expiries and 2.14 years to break options on the let commercial accommodation. The office accommodation provides a passing rent of 450,947 per annum ( per sq ft) whilst the residential provides 93,600 per annum. The total passing rent equates to 544,547 per annum inclusive of vendor top-ups. Immediate value add potential with a planning consent to extend the residential accommodation by approximately 66 sq m (710 sq ft), and/or to convert the residential accommodation to offices following a positive planning pre-application response. Potential market rental value of c. 712,000 per annum following the extension and conversion of the top floors to offices. Offers are sought in excess of 11,750,000 for the Freehold interest, subject to contract. The purchase price reflects an attractive net initial yield of 4.71% on the office accommodation and 1,150 psf in respect of the residential accommodation. The reversionary income reflects a net initial yield of 5.68%.

3 SPITALFIELDS MARKET LIVERPOOL STREET MOORGATE THE HOXTON NOBU HOTEL WHITE COLLAR FACTORY OLD STREET HOXTON SQUARE 6-8 STANDARD PLACE SHOREDITCH TRIANGLE SHOREDITCH HOUSE SHOREDITCH HIGH STREET AMAZON UK HEADQUARTERS GOOGLE ACE HOTEL INMARSAT 3

4 LOCATION 6-8 Standard Place is located right at the heart of London s most vibrant sub-market, Shoreditch. The property occupies the northern side of Rivington Street which is one of the area s best known streets, running through the centre of the highly coveted Shoreditch Triangle, adjoining Shoreditch High Street to the east and Great Eastern Street to the west. The Tech City cluster surrounding Old Street Roundabout is located just a few hundred metres to the west of the property. The City of London is located approximately a 10-minute walk to the south, with Clerkenwell/ Farringdon equidistant to the west. 6-8 STANDARD PLACE An unprecedented influx of technology, media, and telecommunication companies (TMT) to Shoreditch and the area surrounding Old Street Roundabout in recent years has secured its position as a major global technology hub. Shoreditch and Tech City have become distinct as London s new centre of creativity and innovation. The area serves as an incubator for start-ups in fin-tech, media, and technology, fashion, music and art industries. Being the preeminent location for tech occupiers in London, Shoreditch is home to the leading brands within the industry including Amazon, Google Campus, Silicon Valley Bank, Yammer, Inmarsat, Adobe Systems, Lowe Group (Interpublic), and QuidCo. 4

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6 6-8 STANDARD PLACE LOCAL DEVELOPMENTS Shoreditch provides rich amenity to the creative occupier base with Rivington Street being the premier destination for restaurants, cafes, galleries and bars, housing the famous The Tramshed, Blacklock, Butchies and Popolo. Also within a 5 minute walk of the property are Shoreditch institutions The Hoxton Hotel, The Shoreditch Grind, Nobu Hotel, Ace Hotel, and Jamie Oliver s Fifteen. The forthcoming Art Ortel will be located just a few hundred metres from the property, at the eastern end of Rivington Street and will be another significant landmark for the area. 1 ARNOLD 2 WHITE COLLAR FACTORY 3 SHOREDITCH VILLAGE 4 ART OTEL 5 PRINCIPAL PLACE CITY ROAD 12 6 OLD STREET 2 EAST ROAD CITY ROAD OLD STREET OLD STREET GREAT EASTERN STREET CURTAIN ROAD RIVINGTON STREET KINGSLAND ROAD 3 9 SHOREDITCH HIGH STREET HACKNEY ROAD BETHNAL GREEN ROAD SHOREDITCH HIGH STREET COMMERCIAL STREET 6 THE BOWER 7 THE EPWORTH 8 C SPACE MOORGATE 9 1 FAIRCHILD STREET 10 THE STAGE BONHILL 12 SPECTRUM MOORGATE LONDON WALL LIVERPOOL ST BISHOPSGATE 6

7 1 ARNOLD 2 WHITE COLLAR FACTORY 3 SHOREDITCH VILLAGE 4 ART OTEL 6-8 STANDARD PLACE GREAT EASTERN STREET, EC2 The Property Trust 75,000 sq ft 42,500 sq ft Under Offer Completed Q EC2 Derwent London 237,000 sq ft Office and retail scheme Completed Q EC2 Brockton 150,000 sq ft Office, residential and retail scheme Completion 2020 GREAT EASTERN STREET, EC2 Park Plaza Hotels 18 storey, 350 bedroom hotel, with top floor restaurant and bar Likely completion Q PRINCIPAL PLACE 6 THE BOWER 7 THE EPWORTH 8 C SPACE WORSHIP STREET, EC2 ENPAM 600,000 sq ft 100% pre-let to Amazon plus 273 residential units Completed Q OLD STREET, EC2 Helical Plc Phase 1: 140,000 sq ft offices and retail, 100% pre-let. Phase 2: 180,000 sq ft offices, with retail, a third pre-let to Wework. P1 completed 2016, P2 scheduled Q CITY ROAD, EC2 London & Regional 70,000 sq ft Pre-let to NTT Data and Spaces (Part of IWG Plc) Completed Q CITY ROAD, EC1 Helical Plc 62,000 sq ft Let to Mullins Lowe and NeuLion 9 1 FAIRCHILD STREET 10 THE STAGE BONHILL 12 SPECTRUM EC2 Highgate Holdings 101,000 sq ft and 200 bed hotel Completion 2021 or beyond SCRUTTON STREET, EC2 Cain Hoy Enterprises 220,000 sq ft and 412 residential units Office 100% pre-let Completion Q EC2 The Estate Office 70,000 sq ft Completion 2020 or beyond 160 OLD STREET, EC1 Great Portland Estates & BP Pension Fund 116,500 sq ft pre-let to Turner Broadcasting 160,000 sq ft offices, with cafe and restaurants Completed Q

8 CONNECTIVITY 6-8 STANDARD PLACE BENEFITS FROM THE FOLLOWING EXCELLENT TRANSPORT CONNECTIVITY: 6-8 STANDARD PLACE STATION Old Street WALKING DISTANCE (DIRECTION) 8 minutes (West) SERVICES Northern Underground and Mainline Rail services Shoreditch High Street 8 minutes (East) London Overground services Liverpool Street Moorgate 12 minutes (South) 15 minutes (South West) Central, Hammersmith & City, Circle and Metropolitan Underground and Mainline Rail services. Crossrail services available from Autumn Northern, Hammersmith & City, Circle and Metropolitan Underground and Mainline Rail services. Crossrail services available from Autumn ELIZABETH LINE ELIZABETH LINE Crossrail is Europe s largest infrastructure project and is set to transform London s transport network. It is estimated that the new rail line will bring an extra 1.5 million people to within 45 minutes of Central London. Services are due to commence in Autumn 2019 with Liverpool Street set to become one of the key hubs which is located within short walking distance to 6-8 Standard Place. Liverpool Street Crossrail will provide direct links to the West End, Canary Wharf and London Heathrow. READING 60 mins HEATHROW 40 mins PADDINGTON 10 mins BOND STREET 7 mins TOTTENHAM COURT ROAD 4 mins FARRINGDON 2 mins LIVERPOOL STREET WHITECHAPEL 2 mins STRATFORD 8 mins CANARY WHARF 6 mins 8

9 6-8 STANDARD PLACE DESCRIPTION 6-8 Standard Place comprises a modern mixed use courtyard building which provides approximately sq m (8,038 sq ft) NIA of office and ancillary accommodation arranged over ground and 3 upper floors, with two penthouse apartments on the 4th and part 5th floors totalling approximately sq m (2,410 sq ft) NSA. Since 2016, works have been carried out to the entrance hall, and the ground, 1st and 2nd floor office suites which were refurbished to a media style specification. The residential accommodation is arranged as two self-contained 2-bedroom penthouses. Both apartments benefit from substantial roof terraces and spectacular panoramic views. The residential accommodation benefits from a planning consent (Ref: 2016/3382) to extend into the terraces, increasing the NSA by approximately 66 sq m (710 sq ft). The building also benefits from a positive planning pre-application response to convert the existing residential accommodation to offices. THE SPECIFICATION OF THE OFFICE SPACE CAN BE SUMMARISED AS FOLLOWS: Comfort cooling 8 person passenger lift Shower New light fittings Mixture of underfloor and perimeter trunking Timber flooring Kitchenettes Disabled WC 9

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11 6-8 STANDARD PLACE ACCOMMODATION The property provides the following Net Internal and Net Saleable Areas: FLOOR PLANS RESIDENTIAL NSA SQ FT NSA SQ M 5th th 2, TOTAL 2, COMMERCIAL NIA SQ FT NIA SQ M 3rd 2, nd 1, st 2, Ground 2, TOTAL 8, GROUND FLOOR OFFICES TYPICAL UPPER FLOOR OFFICES FOURTH FLOOR APARTMENTS REAR REAR REAR UP UP DN UP UP UP FRONT FRONT FRONT 11 Not to scale. Indicative only.

12 CGI of the Consented Extension and Positive Pre Application for the Change of Use to Offices

13 PROPOSED SECTION / WEST ELEVATION PROPOSED SOUTH ELEVATION 4FFL PLANNING/ASSET MANAGEMENT NEW EXTENSION BED 1 HALL NEW EXTENSION 4FFL NEW EXTENSION NEW EXTENSION ADJACENT BUILDING TERRACE 4FFL 6-8 STANDARD PLACE LIGHTWELL The property is located in the London Borough of Hackney. The property is not listed but is situated within the South Shoreditch Conservation Area. 3FFL 3FFL 3FFL USE 2FFL 1FFL 1) RESIDENTIAL PLANNING CONSENT The property offers an immediate opportunity to add value via the following planning consent from 10 January Ref: 2016/3382 Erection of a roof extension to provide additional floor space to two existing self-contained dwellings. Implementation of this consent would provide an additional 710 sq ft increasing the building to a total of 11,158 sq ft (1, sq m). 2FFL 1FFL 2FFL 1FFL 2) CHANGE OF USE: RESIDENTIAL TO OFFICES GFFL The precedent has been set to extend the building via the existing residential planning consent. A positive pre-application response from the London Borough of Hackney Planning Department has also been obtained, suggesting it is possible to convert the residential accommodation to offices, increasing the rental income significantly. Should this initiative be implemented, we are of the view that the building will have the following ERV: RIVINGTON STREET GFFL RIVINGTON STREET GFFL Proposed South Elevation EXISTING ERV FLOOR NSA SQ FT ERV ( PSF) ERV ( PAX) 4th& 5th Front ,600 4th & 5th Rear 1, ,300 TOTAL 2, ,900 PROPOSED ERV FLOOR NSA SQ FT ERV ( PSF) ERV ( PAX) 4th& 5th Front 1, ,670 4th & 5th Rear 1, ,998 TOTAL 3, ,668 With Shoreditch rents currently matching and forecast to exceed those achieved in the City core, there is an opportunity to increase the rental profile of the property significantly. CGI of the Consented Extension and Positive Pre Application for the Change of Use to Offices 13

14 TENURE The property is held Freehold and is registered at HM Registry under title number EGL STANDARD PLACE Not to scale. For identification purposes only. This plan is based upon the Ordnance Survey Map with the sanction of the controller of H.M. Stationery Office. Crown Copyright reserved 14

15 6-8 STANDARD PLACE TENANCY RESIDENTIAL TENANT FLOOR NO. OF BEDS AST 4 & Part 5 - Front AST 4 & Part 5 - Rear 6-8 Standard Place is multi-let to 5 office and 2 residential tenants with a Weighted Average Unexpired Lease Term on the let commercial accommodation of approximately 3.25 years to expiries and 2.14 years to break options. The total passing rent equates to 544,547 per annum. AREA LEASE LEASE TENANT RENT ERV COMMENTS SQ FT SQ M START EXPIRY OPTION PAX PSF PAX PSF /10/18 30/09/19-41, , ERV assuming implementing consented extension and change of use 2 1, /07/ , , Tenant is currently holding over. ERV assuming implementing consented extension and change of use TOTAL 2, , , COMMERCIAL TENANT FLOOR USE AREA LEASE LEASE TENANT RENT ERV COMMENTS SQ FT SQ M START EXPIRY OPTION PAX PSF PAX PSF The Footsoliders Design Consultancy Limited The Footsoliders Design Consultancy Limited 3rd - Front Office /09/17 04/08/19-42, , Lease is outside the L&T 1954 Act. 3rd - Rear Office 1, /09/17 04/08/19-40, , Lease is outside the L&T 1954 Act. Avature Limited 2nd - Front Office /03/16 01/03/21 02/03/19 41, , Lease is outside the L&T 1954 Act. 90/24 Limited 2nd - Rear Office 1, /06/17 18/06/21-80, , Lease is outside the L&T 1954 Act. Ganapati 1st - Front Office /09/16 13/09/21 14/09/20 41, , Lease is outside the L&T 1954 Act. Tenant not in occupation. Keakie Limited G Rear & 1st Rear Office 2, /09/18 19/09/23 20/09/21 170, , Lease is outside the L&T 1954 Act. Vacant G - Front Office , , A 6 month vendor guarantee will be provided. TOTAL 8, , , STANDARD PLACE 15 TOTAL 10, , , Please note the above information has been derived from thid parties and is subject to verification. ERV assuming existing consent to extend the residential accommodation is implemented and then subsequently converted to office accommodation.

16 FURTHER INFORMATION VAT The property is elected for VAT and VAT will therefore be payable on the purchase. It is anticipated that the transaction will be treated as a Transfer of a Going Concern. EPC Copies of the EPCs are available upon request. PROPOSAL Offers are sought in excess of 11,750,000 for the Freehold interest subject to contract and exclusive of VAT. The purchase price reflects an attractive net initial yield of 4.71% on the office accommodation and 1,150 psf in respect of the residential accommodation. The reversionary income reflects a net initial yield of 5.68%. CONTACT JAMES ABRAHAMS James.abrahams@allsop.co.uk CHRISTOPHER JAMES Christopher.james@allsop.co.uk MATT MILLMAN Matthew.millman@allsop.co.uk DISCLAIMER: Allsop LLP on its behalf and for the Vendors or Lessors of this property, whose Agents they are, give notice that: 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. Details are given without any responsibility and any intending Purchasers, Lessees or Third Parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Allsop LLP has any authority to make any representation or warranty whatsoever in relation to this property. Unless otherwise stated, all prices and rents are quoted exclusive of VAT. October (Q4121)