17 ST HELEN S PLACE LONDON EC3 PRIME CITY OF LONDON INVESTMENT WITH DEVELOPMENT POTENTIAL

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1 LONDON EC3 PRIME CITY OF LONDON INVESTMENT WITH DEVELOPMENT POTENTIAL

2 Investment Overview A prime City of London investment with development potential. Located 200 metres from Crossrail Liverpool Street (operational in 2018). Strategically situated serving both the financial services and insurance markets, in close proximity to the creative district of Spitalfields and Shoreditch. Attractive period building situated within an exclusive private courtyard. Opportunity to create a Grade A building of circa 27,420 sq ft, subject to the necessary consents. The current floor area is 23,986 sq ft. Multi-let by way of five occupational leases drawn on effective FRI terms. Vacant possession can be achieved in September 2018, alternatively leases may be extended. Held by way of a headlease with c. 133 years unexpired. The Freeholder is entitled to 10.00% of rents received from underletting(s), subject to a minimum rent of 75,000 per annum. Approximately 60% of the building is let at just per sq ft overall. Following deduction of headrent the net rental income is 670,581 per annum exclusive. This is anticipated to rise to in excess of 1.50 million upon completion of the development initiatives. Repositioning opportunities are well timed in the context of Crossrail. Proposal Offers in excess of million are invited, subject to contract, for the long leasehold interest. This reflects an anticipated yield on cost of 5.75% (when stabilised) and a capital value of 656 per sq ft on the anticipated floor area. 2

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4 BANK OF ENGLAND TOWER BISHOPSGATE 100 BISHOPSGATE THE LEADENHALL BUILDING 17 ST HELEN S PLACE SALESFORCE TOWER 30 ST MARY AXE N

5 17 ST HELEN S PLACE LIVERPOOL STREET LOND O N WA LL DEVONSHIRE SQUARE HERON PLAZA SALESFORCE TOWER 100 BISHOPSGATE G AT E 70 ST MARY AXE MOOR TOWER ST HELEN S PLACE E AT OP SH CE S THR EA RE E ST ET ST 6-8 BISHOPSGATE & 150 LEADENHALL STREET RE ET REET HALL ST EET 1 LEADENHALL STREET LLOYD S OF LONDON ET ET T EE TR RE ES RE ST M ST RD LI M BA LEADENHALL MARKET STREET IA M ECH LL UR WI LO ARY HALL S BILLITER NG BANK LEADEN CH KI MANSION HOUSE STR T AC SE S TREE C O R N H IL L TC H THE LEADENHALL BUILDING GR HOU LEADEN DI ST M EDL DNE DS AXE BI OA BR IN SION AVIVA TOWER D OL PR BANK OF ENGLAND UN SWISS RE 22 BISHOPSGATE ROYAL EXCHANGE MAN HO SG ET RE T EET ST RY GM HRO STR D LO T H B U ON O RT TREET N CH UR FE H NC ET RE ST

6 Local Developments A number of major developments are taking place within close proximity. These initiatives are creating substantial improvements to the public realm and are attracting world class occupiers, at market leading rents. 100 BISHOPSGATE, EC2 HERON PLAZA, EC2 Developer: Brookfield Description: 950,000 sq ft of office and retail accommodation within a 37 storey tower. Status: Majority pre-let to Royal Bank of Canada, Jefferies and Freshfields. PC anticipated Developer: UOL Group Description: 43 storey tower comprising a 5-star hotel (approximately 340,000 sq ft), 120 residential apartments and retail space. A large public plaza will incorporate shops and cafes behind retained period façades. Status: Anticipated completion 2019/ BISHOPSGATE, EC2 70 ST MARY AXE, EC3 Developer: AXA Real Estate on behalf of a consortium. Description: 1.4m sq ft in a 62 storey tower set to be the tallest building in the City. The top levels will comprise a publicly accessible viewing gallery, restaurant and bar. Status: PC anticipated Developer: TH Real Estate Description: 21 storey building providing c. 310,000 sq ft of office and retail accommodation. Status: Circa 120,000 sq ft is reported to be under offer to Sidley Austin LLP. Anticipated completion BISHOPSGATE, EC2 & 150 LEADENHALL STREET, EC3 Developer: Mitsubishi Estates & Stanhope Description: 50-storey tower development providing 570,000 sq ft including ground floor shops and restaurants. Status: Planning consent granted. 1 LEADENHALL STREET, EC3 Developer: Brookfield Description: 36 storey building with 2 levels of retail floorspace. Status: Planning consent granted. 6

7 LONDON STOCK EXCHANGE: 300 YEARS OLD AND RANKED FIRST GLOBALLY IN TERMS OF INTERNATIONALITY WITH 300 COMPANIES FROM 70 NATIONS LISTED LONDON METAL EXCHANGE: 75% OF ALL NON- FERROUS METAL FUTURE BUSINESS. IN 2015 THIS EQUATED TO $12 TRILLION NATIONAL 4 BILLION TONNES 170 MILLION LOTS 530 FOREIGN 17 ST HELEN S PLACE COMPANIES LISTED IN LONDON 454,000 PEOPLE ARE EMPLOYED IN THE CITY OF LONDON $2.7 TRILLION OF FOREIGN EXCHANGE TURNED OVER EACH DAY - 41% OF GLOBAL FOREIGN EXCHANGE THE CITY OF LONDON ESTABLISHED AD50 LLOYD S OF LONDON: THE WORLDS SPECIALIST INSURANCE AND RE-INSURANCE MARKET OPERATING ACROSS 200 TERRITORIES 251 FOREIGN BANKS IN LONDON GROSS WRITTEN INSURANCE PREMIUMS INCREASED 6% IN 2015 TO 26.7 BILLION

8 Location 17 St Helen's Place is situated in the heart of the central core of the City of London within the 'tower cluster' area. This strategically important location serves both the financial and professional services occupiers of EC2 together with the insurance and shipping occupiers traditionally associated with EC3. The property is located in close proximity of the creative and TMT districts of Spitalfields and Shoreditch. St Helen's Place is an exclusive private courtyard situated approximately 200 metres south of Liverpool Street station. It lies equidistant from both the Bank of England and Lloyd s of London. 30 St Mary Axe The Gherkin, The Leadenhall Building and Salesforce Tower are within a stone s throw. These will shortly be joined by the new generation of tower buildings, noteably 100 Bishopsgate and 22 Bishopsgate, both of which are under construction. Leadenhall Market and Devonshire Square are nearby. These vibrant destinations are crammed with restaurants, bars and eateries. 8

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10 AON SWISS RE STANDARD LIFE ABERDEEN UPON COMPLETION:- ROYAL BANK OF CANADA JEFFERIES FRESHFIELDS AVIVA WILLIS DEVONSHIRE SQUARE SALESFORCE.COM EMEA BASF METALS MCDERMOTT WILL & EMERY DEUTSCHE BANK LATHAM & WATKINS TRAVELERS MANAGEMENT ARGO UNDERWRITING AGENCY PINEBRIDGE INVESTMENTS LLOYD'S OF LONDON LEADENHALL MARKET STATE BANK OF INDIA AMALGAMATED METALS CORPORATION TOWERGATE UNDERWRITING GROUP HAMPSHIRE TRUST BANK SERVCORP MITSUBISHI PHARMA EUROPE CADWALADER WICKERSHAM & TAFT HBOS

11 The Community...all within a 5 minute walk 17 ST HELEN S PLACE 11

12 Connectivity The property is located In the heart of the City of London and accordingly it enjoys superb communications. The whole of central London can be accessed via the underground network and over-land rail services. All of London s major airports are within an hour of the property. Services to the continent operate via Eurostar at St Pancras station, 20 minutes by taxi. 3 MINUTES BANK OF ENGLAND 3 MINUTES LEADENHALL MARKET 5 MINUTES FENCHURCH STREET STATION 2 MINUTES BROADGATE 2 MINUTES LIVERPOOL STREET STATION 12

13 < < 17 ST HELEN S PLACE The Elizabeth Line (Crossrail) Communications will be further enhanced by the arrival of The Elizabeth Line (Crossrail) at Liverpool Street station in St Helen's Place is set to be better connected than at any time in its history. The new station lies within 200 metres to the north. The c. 15 billion Crossrail initiative is Europe s largest infrastructure project. The services will be fully integrated with London s existing transport network. State-of-the-art trains will bring an extra 1.50 million people to within 45 minutes of central London. < PADDINGTON BOND STREET TOTTENHAM COURT ROAD FARRINGDON 17 ST HELEN S PLACE Luton* LIVERPOOL STREET Gatwick* Standsted * WHITECHAPEL STRATFORD CANARY WHARF Bakerloo Central HEATHROW AIRPORT Circle District DLR Hammersmith & City Jubilee Metropolitan Northern * Airports not on the Crossrail route - to travel to these airports passengers will need to travel on other connecting rail services Overground Piccadilly Approximate journey times from Liverpool Street Station Farringdon Station Canary Wharf Station Bond Street Station Stratford Station Heathrow Airport 2 minutes 6 minutes 7 minutes 8 minutes 35 minutes 13

14 Description Accommodation 17 St Helen s Place is an attractive period building dating from The property has a Portland stone façade and currently provides 23,986 sq ft (2,228 sq m) of lettable office and ancillary accommodation. Upon completion of the development initiatives the lettable floor area is conservatively anticipated to increase to circa 27,420 sq ft (2,547 sq m). Access to the property is via a private gated courtyard. The building has an impressive reception which leads to two six-person passenger lifts. The ground and first floors have particularly generous slab heights. Floorplates are regularly configured with excellent levels of natural daylight from both the front and the rear elevations. There is central heating serving the entire building. Most floors have additional air cooling. There are raised floors and suspended ceilings throughout. The net internal floor areas are as follows:- FLOOR USE AREA (SQ.FT.) AREA (SQ.M.) Fifth Offices 2, Fourth Offices 3, Third Offices 3, Second Offices 3, First Offices 3, Ground Offices 3, Ground Reception Lower Ground Offices 3, Basement Storage 1, TOTAL 23,986 2,

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17 Tenure Planning The property is held by way of a headlease from The Leathersellers Company for an effective term expiring 24/03/2150 i.e. circa 133 years unexpired. The property is not listed, however it is situated within the St Helen s Place Conservation Area. The Freeholder is entitled to 10.00% of rents received from underletting(s) at the premises, subject to a minimum rent of 75,000 per annum. The minimum rent is subject to upwards only review on 25/03/2024 and five yearly thereafter to 7.50% of the properties estimated rental value (ERV). The Leathersellers also own the freehold interest in the surrounding Estate and oversee the management of St Helen s Place which is a private road. The headlessee contributes towards an Estate service charge which is recovered from the occupiers of 17 St Helen's Place. A summary of the headlease and service charge provision is set out in the Appendix. For indicative purposes only. This plan is based upon the Ordnance Survey map with the sanction of the controller of H.M. Stationary Office. Crown copyright reserved. 17

18 Tenancies The property is let in accordance with the tenancy schedule set out overleaf and produces a net rental income of 670,581 per annum exclusive. Approximately 60% of the building is let at just per sq ft overall. The low passing rents reflect the fact that St Helen s Place has been the subject of substantial development activity arising from the creation of a new Livery Hall and 100 Bishopsgate. Within St Helen's Place these works are ostensibly at an end, Vacant possession of the entire building can be obtained in September Brookfield Multiplex, occupies approximately 60% of the building as a site office for its development at 100 Bishopsgate. This project is unlikely to be completed before mid A number of occupiers have contacted the landlord with a view to extending their leases. All leases are drawn on effective full repairing and insuring terms and are excluded from the L&T Act 1954.

19 Tenancy Schedule TENANT FLOOR USE AREA (SQ.FT.) LEASE START DATE LEASE EXPIRY DATE PASSING RENT ( PA) RENT ( P.S.F) COMMENTS Brookfield Multiplex Construction Europe Fifth Offices 2,228 20/05/ /03/ , Outside 1954 Act. Part Fourth Offices 1,427 Second Offices 3,420 First Offices 3,285 Lower Ground Offices 3,315 Basement Store Basement Store Basement Store Sub Total 14,261 BMI Healthcare Ltd Part Fourth Offices 1,839 08/08/ /08/ , Outside 1954 Act. Basement Store 6, JDX Consulting Ltd Third Offices 3,329 11/12/ /09/ , Outside 1954 Act. The Society of International Gas Tankers Ground (East) Offices 1,695 01/02/ /09/ , Outside 1954 Act. City Career Management Ltd Ground (West) Offices 1,502 26/03/ /03/ , Outside 1954 Act. Basement Store Brookfield Multiplex Construction Europe Basement Store /07/ /03/2018 5, Outside 1954 Act. Vacant Basement Store 5, 9, TOTAL 23, , HEADRENT - 75,000 NET RENT 670,581 Note: Total floor area includes reception of 267 sq ft 19

20 Development Potential An opportunity exists to transform 17 St Helen s Place into a Grade A headquarters building with an additional floor of offices and re-configured floorplates. The Freeholder is supportive of the development proposals and has recently re-geared the headlease in order to help facilitate the proposed initiatives. Vacant possession can be achieved by September This is well timed in the context of Crossrail, which becomes operational next year. A feasibility study undertaken by Minifie Architects has concluded that circa 3,500 sq ft (325 sq m) of lettable floorspace could be created, subject to obtaining the necessary consents. The proposals envisage that s are re-located into the rear lightwells, enhancing the floorplate configuration. A floor area gain of circa 1,615 sq ft (150 sq m) is anticipated from the initiative. A new sixth office floor is anticipated to provide circa 1,820 sq ft (169 sq m) of net accommodation. This will have spectacular City views and could feature a private roof garden. A more substantial intervention could enable the floor area to be increased further. Shower and changing facilities will be created within the basement for cyclists. Further information is available upon request. Redesigned office floor Reception 20

21 Metal scale wall tiles Metal profile in concrete flooring 21

22 17 ST HELEN S PLACE INITIAL DESIGN IDEA 22

23 PANORAMIC VIEWS FROM NEW SIXTH FLOOR PROPOSED NEW SIXTH FLOOR LIFT LIFT PRIVATE GARDEN OFFICE N For indicative purposes only. Not to scale. 23

24 EXISTING FIFTH FLOOR LIFT LIFT OFFICE PROPOSED FIFTH FLOOR LIFT LIFT OFFICE N For indicative purposes only. Not to scale. 24

25 EXISTING FOURTH FLOOR SHOWER LIFT LIFT KITCHEN OFFICE OFFICE PROPOSED FOURTH FLOOR LIFT LIFT N OFFICE For indicative purposes only. Not to scale. 25

26 EXISTING GROUND FLOOR KITCHEN LIFT LIFT OFFICE OFFICE PROPOSED GROUND FLOOR LIFT LIFT OFFICE OFFICE CONCIERGE N For indicative purposes only. Not to scale. 26

27 EXISTING BASEMENT FLOOR KITCHEN LIFT LIFT VAULTS PROPOSED BASEMENT BIKE RACKS AND SHOWERS FOR CYCLISTS LOCKERS N DIS & SHOWER For indicative purposes only. Not to scale. 27

28 City Investment Market Recent capital transactions include:- Post refurbishment, 17 St Helen s Place will be one of the best small floorplate buildings in the City of London. Small lot sizes in the central core are a rare commodity. Given its stature, the building would almost certainly appeal to owner occupiers. End users are likely to emanate from a variety of sectors including; medical (given its discrete setting), financial services and banking, insurance, brokers and charitable or regulatory bodies. The City investment market is experiencing an acute shortage of good quality stock (small lot sizes) and strong demand, particularly from overseas investors. Prime yields have hardened to 4.00%, compared to the West End at sub 3.25%. 35 King Street, EC2 Sale Date: October 2017 Tenure: FH Tenancy: Multi-let Area: 16,311 sq ft Purchaser: Private Investor Price: 19.5m / 1,195 psf Yield: 4.00% 9-13 St Andrew Street, EC4 Sale Date: August 2017 Tenure: FH Tenancy: Rosenblatt Solicitors Area: 16,772 sq ft Purchaser: Get Nice Holdings Price: 21.0m / 1,250 psf Yield: 3.80% 21 Great Winchester Street, EC2 Sale Date: July 2017 Tenure: FH Tenancy: Multi-let Area: 26,973 sq ft Purchaser: Frasers Property Price: 28.6m / 1,065 psf Yield: 4.50% 2 Moorgate, EC2 Sale Date: November 2016 Tenure: FH Tenancy: Brown Shipley Area: 26,025 sq ft Purchaser: Santalucia Seguros Price: 33.3m / 1,280 psf Yield: 3.70% 77 Cornhill, EC Eastcheap, EC3 Sale Date: January 2017 Tenure: FH Tenancy: Multi-let Area: 28,335 sq ft Purchaser: KanAm Price: 28.0m / 990 psf Yield: 4.40% Sale Date: September 2016 Tenure: FH Tenancy: Multi-let Area: 25,576 sq ft Purchaser: Private Investor Price: 25.7m / 1,005 psf Yield: 4.61% 28

29 City Occupational Market 17 St Helen's Place is strategically situated serving both the traditional financial services district (EC2) and the insurance and shipping district (EC3). The property is also in very close proximity to the creative and TMT districts of Spitalfields and Shoreditch. The refurbished property will appeal to a wide variety of occupiers and we expect the target audience to widen significantly when Crossrail becomes operational next year. There has been a 28% increase in employment in the City of London over the last five years and of the 18,000 businesses located in the City, 99% are SME s. High quality best-in-class floor plates are well placed to prosper as occupiers recognise that the core city area provides excellent value for money in a central London context. Demand Take-up at the end of Q totalled 1.58m sq ft. Best-in-class buildings continue to prove most popular for discerning tenants across all sectors. Total active demand rose by 3% in the last quarter to 4.78m sq ft, 17% above the long-term average. Availability City availability fell by 11% in the last quarter to 7.87m sq ft. This remains below the long-term average of 9.35m sq ft. At the end of Q supply stood at 8.06m sq ft, a reduction of 8.8% from the previous quarter. Supply remains well below the long-term average of 9.38m sq ft. The current vacancy rate in the City is 6.7%, well below the long-term average of 8%. Rents Prime headline rents remained stable at per sq ft for the seventh consecutive quarter. 29

30 City Occupational Market Recent leasing transactions include:- 140 Leadenhall Street, EC3 17 Devonshire Square, EC2 1 George Yard, EC3 Date: Under Offer Floor: 5 th Size (sq ft): 3,500 Reported Rent ( psf): Term: 5 years Tenant: Confidential Date: Under Offer Floor: 3 rd Size (sq ft): 3,717 Reported Rent ( psf): Term: 10 years Tenant: Confidential Date: Sept 2017 Floor: 3 rd Size (sq ft): 2,700 Reported Rent ( psf): Term: 10 years Tenant: BIE Executive 5 St Helen's Place, EC3 41 Eastcheap, EC3 42 New Broad Street, EC2 Date: Aug 2017 Floor: 1 st Size (sq ft): 3,834 Reported Rent ( psf): Term: Tenant: 10 years Correlation Risk Partners Date: July 2017 Floor: 4 th Size (sq ft): 3,388 Reported Rent ( psf): Term: 10 years Tenant: NGUKPS Date: July 2017 Floor: 4 th Size (sq ft): 3,592 Reported Rent ( psf): Term: 10 years Tenant: United Elliot The Steward building, EC2 21 Lime Street, EC3 77 Cornhill, EC3 Date: June 2017 Floor: Part 2 nd Size (sq ft): 3,456 Reported Rent ( psf): Term: 10 years Tenant: Ronin Capital Date: May 2017 Floor: 1 st -7 th Size (sq ft): Average 4,800 Reported Rent ( psf): Term: 15 years Tenant: Antares Date: May 2017 Floor: 3 rd Size (sq ft): 3,414 Reported Rent ( psf): Term: Tenant: 10 years Aquis Exchange 30

31 Capital Allowances Proposal No capital allowances are available. EPC The property has an EPC of D96. VAT Offers in excess of million are invited, subject to contract, for the long leasehold interest. This reflects an anticipated yield on cost of 5.75% (when stabilised) and a capital value of 656 per sq ft on the anticipated floor area. Further Information For further information please contact:- The property is elected for VAT. It is anticipated that the transaction will be structured as a Transfer of a Going Concern (TOGC). Douglas Hall Tel: +44 (0) douglas.hall@hallkemp.com 31

32 Appendix Headlease Summary Landlord The Leathersellers Company. Demise 17 St Helen s Place, London, EC3. Term An effective term expiring 24/03/2150. Repair The lease is granted on full repairing and insuring terms. The Tenant covenants to keep the premises in good and substantial repair and condition. Decoration The Tenant covenants to redecorate the exterior every four years and the interior every six years, and in each instance, during the last six months of the term. Yielding Up At the expiration or determination of the Term, the Tenant covenants to yield up in good and substantial repair. Insurance The Tenant insures in the joint names of the Landlord and the Tenant. The policy is to cover the full reinstatement cost of the premises, four years loss of rent and liabilities in respect of the property owners and third party risk. Use High class offices (Class B1) or medical offices and consulting rooms (Class D1). Alterations / Development External and internal structural alterations or addition to the premises requires the Landlord s consent (not to be unreasonably withheld or delayed). The Landlord is supportive of the propsed development initiatives. Alienation Assignment of part is prohibited. Assignment of the whole and underletting(s) of the whole or part require Landlords consent, not to be unreasonably withheld. There are no restriction as to the number of underlettings. Rent The Landlord receives the greater of the Base Rent (currently 75,000 per annum) and 10.00% of Rental Income derived from the premises during a Rent Period. This additional sum is expressed as The Supplementary Rent. A Rent Period is defined as one year commencing 25th March. Rental Income is defined as the total income of whatsoever nature received by the Tenant in respect of the Premises during a Rent Period, including (but without limitation), the following:- Any Tenant s Rent; Any interest recovered pursuant to any provision contained in any occupational lease; Any sum or sums recovered by the Tenant pursuant to any insurance policy in respect of loss of income in the event of the Premises being damaged or destroyed. The Supplementary Rent is reconciled quarterly in arrears. The Base Rent is reviewed upwards only on 25/03/2024 and five yearly thereafter to 7.50% of the Rental Value of premises. Rental Value is defined as the yearly rack rent after expiry of whatever rent free period would reasonably be agreed in the open market at the relevant date, between a willing landlord and a willing tenant, for fitting out purposes, or receipt by the willing tenant of a capital sum in lieu thereof. The premises are deemed to be let in whole or part, by way of a lease or leases for such a term in accordance with the then market practice. No account is taken of improvements carried out by any under tenant and which the Tenant is not entitled itself to take into account. No account is taken of any goodwill. Occupation by the Tenant If at any time during the term the Tenant or any Group Company occupies the premises (part or whole), the part occupied will be treated as notionally underlet. There will be an assessment of rental value and that will be deemed to be payable quarterly for the purposes of calculating the Supplementary Rent. St Helen's Place Service Charge The Headlease provides for a service charge contribution in respect of St Helen's Place. This covers the repair, maintenance and renewal, cleaning and lighting of the private road. It also covers the provision of porters and insurance. The current contribution is 16,151 per annum. The Headlessee recovers this sum from the occupational tenants. Service charge is payable on account quarterly and reconciled annually. Further information is available upon request. 32

33 MISREPRESENTATION ACT 1967 AND DECLARATION Hall Kemp (trading name of HK Property Services Ltd) for themselves and for the vendors of this property who agents they are give notice that: a) the particulars are set out as general outline only for the guidance of intending purchaser s and do not constitute, not constitute part of, or an offer or contract b) all descriptions, dimensions, references or condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct, but any intending purchaser s should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of them c) no person in employment of Hall Kemp (trading name of HK Property Services Ltd) has any authority to make or give any representation or warranty whatever in relation to this property. PROPERTY MISDESCRIPTION ACT 1991 These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. November 2017.