331 OLD STREET SHOREDITCH LONDON EC1 OUTSTANDING FREEHOLD OPPORTUNITY IN THE HEART OF HOXTON

Transcription

1 SHOREDITCH LONDON EC1 OUTSTANDING FREEHOLD OPPORTUNITY IN THE HEART OF HOXTON

2 02 01 LOCATION EXECUTIVE SUMMARY RARE OPPORTUNITY TO ACQUIRE AN ATTRACTIVE WAREHOUSE-STYLE MIXED USE BUILDING O Prominently located on Old Street in the heart of the Shoreditch Triangle, one of London s fastest growing and most dynamic sub-markets O Less than 0.3 miles from Old Street Station (Northern Line) and 0.55 miles from Liverpool Street Station, a key interchange on the Crossrail network O Attractive mixed-use warehouse-style building providing 4,206 sq ft ( sq m) of bar, office and residential accommodation O Fully let producing 170,250 pa (inclusive of vendor top-ups) O Potential to add additional massing (subject to planning) O Freehold O Offers invited in excess of 3,650,000 O Net Initial Yield: 4.29% O Reversionary Yield: 4.76% O Capital Value: 926 psf 331 OLD STreet

3 SHOREDITCH HIGH STREET LIVERPOOL ST MOORGATE OLD SPITALFIELDS MARKET BROADGATE ESTATE THE HAC GROUND BOX PARK CURTAIN ROAD GREAT EASTERN STREET OLD STREET SILICON ROUNDABOUT SHOREDITCH HIGH STREET 331 OLD STREET HOXTON SQUARE

4 04 LOCATION PROMINENTLY LOCATED ON OLD STREET, SOUTH-WEST OF HOXTON SQUARE IN THE HEART OF SHOREDITCH Shoreditch 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 Google, Amazon and Microsoft. Centered around Old Street Silicon Roundabout, Shoreditch is known as London s tech city. Strong tenant demand is driving competition for office space resulting in record rental levels being achieved on Old Street and the surrounding areas. In addition, there are a growing number of corporate and educational occupiers, traditionally based in the West End and Midtown who are now making Shoreditch their location of choice due to the vibrant amenity offering, which boasts a wide choice of restaurants, coffee houses, bars, clubs and boutique hotels.

5 05 LOCAL OCCUPIERS SLEEP, EAT & DRINK 1 M by Montcalm 2 Hoxton Hotel 3 Ace Hotel 4 Shoreditch House 5 Ceviche 6 Tramshed 7 Shoreditch Grind 8 Fifteen 9 Look Mum No Hands 10 The Albion 11 Magic Roundabout 12 Whitecross Street Market SHOP & CULTURE 1 Box Park 2 Spitalfields Market 3 Barbican Centre 4 Hackney House 5 Sweaty Betty 6 A.P.C 7 Versus Versace 8 Aesop 9 Oliver Bonas 10 Cock and Bull Gallery 11 Modern Art 12 Tokyobike BUSINESS 1 Google Campus 2 Mind Candy 3 Immarsat 4 WeWork 5 Yammer 6 Vice Magazine 7 EMC 8 Adobe 9 Capital One 10 Tech Hub 11 Moo 12 SoundCloud G O S W E L L R O A D G O S W E L L R O A D R O A D BARBICAN A L D E R S G A T E S T R E E T 9 11 O L D S T R E E T 12 3 L O N D O N W A L L B A T H S T R E E T B U N H I L L R O W M O O R G A T E C I T Y R O A D E A S T R A O OLD STREET MOORGATE HOXTON SQUARE O L D S T R E E T G R E A T E A S T E R N S T R E E T 8 LIVERPOOL STREET 2 6 C U R T A I N R O A D 4 N O R T O N F O L G A T E T C H H I G H S T R E E T E D I S H O R SHOREDITCH HIGH STREET

6 E HOXTON L K B A T H S T R E E T 331 OLD STREET 06 COMMUNICATIONS E A S T R A O D 9 mins FIRST-CLASS TRANSPORT LINKS WITH EXCELLENT PROXIMITY TO OLD STREET STATION AND LIVERPOOL STREET CROSSRAIL STATION. 6 mins 331 O L D S T R E E T Old Street Station is located on Silicon Roundabout, less than 0.3 miles from the property. Transport for London are currently refurbishing Old Street Station with works set to complete in OLD STREET T C H H I G H S T R E E T E D I S H O R Liverpool Street Station is one of London s largest transport hubs providing access to the Central, Hammersmith & City, Circle and Metropolitan Lines in addition to mainline services to Essex, East Anglia and Stansted Airport. Currently, Liverpool Street Station services approximately 123 million travelers a year which is set to increase with the completion of Crossrail in B U N H I L L R O W C I T Y R O A D G R E A T E A S T E R N S T R E E T C U R T A I N R O A D 9 mins 15 mins 12 mins SHOREDITCH HIGH STREET M O O R G A T E N O R T O N F O L G A T E MOORGATE LIVERPOOL STREET L O N D O N W A L L

7 07 CROSSRAIL COMPLETING IN 2018, THIS 16 BILLION INFRASTRUCTURE PROJECT IS THE LARGEST IN EUROPE AND WILL PROVIDE LONDON AND THE SOUTH-EAST WITH A WORLD-CLASS HIGH SPEED INNER-CITY RAIL SERVICE. O The Elizabeth line will link 37 stations and 2 London airports (Heathrow and City Airport) with journey times reduced by up to half. O It is forecasted that up to 200 million passengers will travel on Crossrail each year resulting in a 10% increase in London s rail capacity and bringing 1.5 million additional people within 60 minutes reach of the capital s key business districts. O Located less than 0.55 miles from 331 Old Street. HEATHROW BOND STREET 331 LIVERPOOL STREET FOR STANSTED O Liverpool Street Station is currently undergoing major redevelopment to increase capacity, improve accessibility and upgrade interchanges. O The new station and Crossrail s services will help ease overcrowding and support economic growth in the area. O The station will provide new entrances and ticket halls with new longer platforms. The public space around the station will be re-modelled to provide welcoming, clear and open spaces for people to work and relax in, with wider pavements, more trees and seating. CANARY WHARF WOOLWICH READING PADDINGTON FARRINGDON FOR LUTON AND GATWICK WHITECHAPEL STRATFORD ROMFORD

8 08 LOCAL DEVELOPMENTS NOBU HOTEL, WILLOW STREET Nobu Hotel opened in 2017 comprising a 90,000 sq ft 156 bed boutique hotel. The Willow Street Hotel is renowned restaurateur Nobu s first European venture into hospitality, and occupies a 100m long frontage along a quiet Shoreditch street. THE ARNOLD The Property Trust are developing a 75,000 sq ft office building over basement, ground and 7 upper floors. The building is being specifically designed for the tech and creative companies in an industrial chic style. The scheme will include c.6,000 sq ft of retail. DEVELOPMENT HOUSE City Developments Ltd are pursuing a planning application to deliver 90,000 sq ft of prime offices with ground floor and basement retail on the corner of Paul St and Leonard St. The Waugh Thistleton scheme is an iconic design and may well be Shoreditch s largest CLT built structure GREAT EASTERN STREET Seven Capital are developing a 70,000 sq ft 125 bed boutique hotel on a stand alone island site and utilising in part the original façade of a late Victorian warehouse. The 30m development also incorporates the restoration of the Grade II listed Griffi n Pub with its upper levels being converted to residential use. THE STAGE Galliard Homes and Cain Hoy are developing a multi-million pound regeneration of a 2.5 acre site in Shoreditch called The Stage. The residential led scheme has received planning consent to develop 412 residential units in a new 40-storey tower. There will be two office buildings totalling 207,000 sq ft NIA and 50,000 sq ft NIA of retail space. 1 MARK SQUARE EPIC recently bought the unrefurbished 62,000 sq ft office, and have now successfully let the whole building to WeWork who are in the process of fitting out. CURTAIN HOTEL, CURTAIN ROAD Opened in 2017, The Gansevoort Hotel Group built the Curtain Hotel and Private Members Club. It provides a nine storey building (including three underground) with 114 hotel rooms and six suites. HOLLYWELL CENTRE Workspace Group have consent and are on site to develop a new 55,000 sq ft business centre to be operated by them. Unit sizes will range from 200 sq ft to 1,300 sq ft and amenities will include bike storage and a dedicated café. 62 PAUL STREET Folgate Developments are close to the completion of a mixed use, 5 storey Stiff + Trevillion designed building delivering restaurant/ retail, 16,500 sq ft of offices and 9 residential units.

9 09 DESCRIPTION ACCOMMODATION Comprising an attractive mid-terrace former warehouse building extending to approximately 4,206 sq ft ( sq m) NIA over basement, ground and 3 upper floors. At basement and ground floor the property affords 2,384 sq ft ( sq m) of bar accommodation trading as Trafik. 1,172 sq ft ( sq m) of contemporary office accommodation is provided at first floor level with two residential flats on the 2nd and 3rd floors. FLOOR USE AREA (SQ FT) AREA (SQ M) Flat A - Residential Second & Third Flat B - Residential* - - First Office First Office Ground 1, Bar Basement 1, TOTAL 4, *Flat B is sold-off 331 OLD STreet

10 010 FLOOR PLANS BASEMENT GROUND FIRST SECOND THIRD ROOF HOXTON SQUARE RECYCLABOX LIMITED FLAT A FLAT A FLAT B METALLIC MANAGEMENT FLAT B FLAT B OLD STREET Not to scale. Indictive only.

11 FUTURE MASSING The existing site has the potential to create additional massing via an extension of the existing third floor and the creation of an additional fourth floor at the Hoxton Square side of the property (STPP). Indicative plans are as follows: TENURE Freehold. FLOOR EXISTING AREA (SQ FT) EXISTING AREA (SQ M) PROPOSED AREA (SQ FT) PROPOSED AREA (SQ M) Second Third Fourth TOTAL , SECOND THIRD FOURTH LIVING AND KITCHEN 36 sqm BEDROOM 18 sqm BEDROOM 13 sqm H O X TO N SQ U AR E TERRACE 9 sqm STUDY 9 sqm RUFUS STREET FLAT ROOF TERRACE 8 sqm UNIT B 103 sqm O LD S TR EET BEDROOM 12 sqm LIVING AND KITCHEN 44 sqm TERRACE 40 sqm BEDROOM 20 sqm For identification purposes only. The plan is based upon an ordnance survey map with sanction of the Controller of HM Stationary Office. Crown copy right reserved. Not to scale. Indictive only.

12 012 TENANCY SCHEDULE FLOOR TENANT USE AREA (SQ FT) Second & Third LEASE START Private Individual Flat A Residential /05/ /05/ , , LEASE EXPIRY RENT (PA) RENT (PSF) ERV ERV (PSF) COMMENTS Private Individual Flat B Residential - 19/12/ /12/ Sold-off First Metallic Management Office /05/ /05/ , , First Recyclabox Limited Office /09/ /09/ , , Ground Trafik Bar Basement 1,575 17/12/ /12/2026 TOTAL 4, ,250 1,131 17/12/ /12/ , , Stepped rent: 17/12/ /12/2018 = 97,000 17/12/ /12/2019 = 98,000 17/12/ /12/2020 = 99,000 17/12/ /12/2022 = 100,000 Vendor will top-up to 100,000

13 013 MARKET COMMENTARY INVESTMENT MARKET YEAR ADDRESS TENURE DESCRIPTION PRICE NIY (%) CAPITAL VALUE (PSF) PURCHASER Q Great Eastern Street FH Multi-let 13,500, % 836 LaSalle Q City Road FH Multi-let 27,500, % 835 Riverside Capital Q Churchill House, Old Street FH Multi-let 25,900, % 969 UBS Q The Griffin, 93 Leonard Street FH Long lease to a leisure operator with vacant residential uppers 3,100, % 835 Rumi Foundation Q Gilray House, City Road FH Single let to Barclays 11,000, % 998 Private Investor Q Worship Street FH Multi-let 14,250, % 1,107 City Corporation Q Old Street FH VP 11,250,000 N/A 1,020 Aviva Digital OCCUPATIONAL MARKET Office demand across Shoreditch has remained consistently strong during the last half of 2017 and into Q with office take up in Q across the City fringe standing at 400,000 sq ft. The Old Street market in particular has proved extremely resilient with a number of high profile lettings and prelettings secured in Q Prime office rents now stand at between per sq ft across the Old Street area. The owner occupier and investment transactional markets remain active with a particular focus on either income driven investments or opportunity led projects with development or refurbishment angles. DATE ADDRESS FLOOR AREA TENANT RENT (PSF) Q The Epworth Building, City Road 5th-6th 12,641 Telecoms Occupier Q Spectrum, 160 Old Street LG-3rd 98,539 Truner Broadcasting Q Bonhill Street 5th-6th 12,555 Crabtree&Evelyn Q Wilson Street 5th-6th 11,912 The Bio Agncy Ltd Q Old Street Yard 3rd - 4th 7,664 Red Badger Consulting Ltd Q Churchill House, Old Steet 5th 3,552 Maplin Electonrics Ltd Q Luke Street LG-5th 30,569 Rise London Q The Bower Phase II 1st-6th 59,000 WeWork Q C-Space, City Road 3rd-4th 15,387 Neulion Ltd 65.00

14 014 FURTHER INFORMATION VAT The property has been elected for VAT. The transaction will be treated as a Transfer of a Going Concern. EPC Available upon request. PROPOSAL OFFERS IN EXCESS OF 3,650,000 FOR THE BENEFIT OF OUR CLIENT S FREEHOLD INTEREST, REFLECTING A NET INITIAL YIELD OF 4.29% AND A REVERSIONARY YIELD OF 4.76% AFTER DEDUCTING ACQUISITION COSTS OF 6.80%. THIS REFLECTS A CAPITAL VALUE OF 926 PER SQ FT. CONTACT Mark Shipman markshipman@michaelelliott.co.uk +44 (0) (0) Harry Cox harrycox@michaelelliott.co.uk +44 (0) (0) Peter Ng peterng@michaelelliott.co.uk Disclaimer Important notice: Michael Elliott for themselves and for the vendors of this property whose agents they are given notice that: a) the particulars are set out as general outline only for the guidance of intending purchasers and do not constitute, nor constitute part of, an offer or contract; b) all descriptions, dimensions, references to 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 should not rely on them as statements or representations of fact but should satisfy themselves by inspection or otherwise as to the correctness of each of them; c) no person in the employment of Michael Elliott has any authority to make or give any representations or warranty whatever in relation to this property. June (Q3859)