1 KING S ARMS YARD LONDON EC2. The Amundi Collection

Transcription

1 1 KING S ARMS YARD LONDON EC2 The Amundi Collection

2 INVESTMENT SUMMARY 1 King s Arms Yard is a core City of London office investment. Grade A office building situated within 50 metres of the Bank of England. 100% prime City of London location. 56,071 sq ft of high quality office and ancillary accommodation over basement, lower ground, ground and six upper floors. Rolfe Judd designed scheme, completed in 2009 with a BREEAM Very Good rating. Prominent corner site with excellent natural daylight from three elevations and stunning views over the Bank of England. Held long leasehold for a term expiring in 2141 with a current head rent payable of 5,000 per annum. The property is securely let to eight tenants at a current gross passing rent of 2,763,197 per annum reflecting a below market rent of only per sq ft overall. The WAULT is approximately 3.1 years to expiries. Offers are invited in excess of 58,300,000, subject to contract and exclusive of VAT, for our client s long leasehold interest in 1 King s Arms Yard. This represents an attractive net initial yield of 4.65% and a capital value of 1,040 per sq ft, assuming acquisition costs of 1.80% through the purchase of the Luxembourg SARL.

3 LOCATION 1 King s Ar ms Yard London B I S H O P S G AT E B R O A D G AT E TOW E R B I S H O P S G AT E LEADENHALL BUILDING T H E L LOY D S B U I L D I N G LIVERPOOL STREET FINSBURY CIRCUS 1 KING S ARMS YA R D LONDON EC2 M O O R G AT E BANK BANK OF ENGLAND R O YA L E X C H A N G E

4 1 King s Arms Yard London LOCATION 1 King s Arms Yard occupies a prime corner site on King s Arms Yard and Tokenhouse Yard of approximately 0.24 acres. This highly desirable location is at the very heart of the City of London, just off the junction of Gresham Street, Moorgate and Lothbury. The Bank of England, in full view of the property, is only 50m to the south and Guildhall is approximately 150m to the west. The immediate area is the favoured location for many of the City s global occupiers including Commerzbank, Lloyds Bank, BNP Paribas, Legal & General, Standard Chartered Bank, Bank of China, Bloomberg and Investec. All of these major companies are headquartered within 500m of the property. 50 metres from the Bank of England The immediate surrounding area and wider City core have seen a significant increase in leisure and dining provision recently, particularly with the opening of The Ned in The Ned offers a 250 bed hotel plus ten restaurants and a members club all within the restored Grade I listed Midland Bank building on the Bank interchange, a short walk from 1 King s Arms Yard.

5 1 King s Arms Yard London 6 7 CONNECTIVITY Due to the exceptional core City location of the property it benefits from being within a 10 minute walk of seven major stations, providing connectivity to the London Underground, National Rail and Crossrail (Elizabeth Line) network amongst others. STATION WALKING DISTANCE CONNECTIVITY BANK 3 mins Central Line DLR Northern Line Waterloo & City Line MOORGATE 6 mins Northern Line Bank station, one of the key transport hubs in the City of London, provides access to three London underground lines and the DLR, with services to the north, south, east and west of the capital as well as direct to London Waterloo. Bank is currently undergoing major infrastructure improvements, due for completion in 2022, which will result in a 40% increase in passenger capacity. Hammersmith & City Line Circle Line Metropolitan Line National Rail Services Elizabeth Line CANNON STREET 7 mins District Line THE ELIZABETH LINE (CROSSRAIL) Moorgate station, another key transport node provides London Underground access to four lines and National Rail services. It will also allow access to the Elizabeth Line (Crossrail) later this year when services become operational. Crossrail is set to revolutionise transport across Central London, and the proximity of this service to the property is a major asset. Circle Line National Rail Services LIVERPOOL STREET 9 mins Central Line Hammersmith & City Line Circle Line Metropolitan Line National Rail Services Elizabeth Line MONUMENT 9 mins District Line London Overground / TfL Rail Circle Line MANSION HOUSE 9 mins District Line Crossrail, the 14.8 billion project linking East and West London, is currently Europe s largest infrastructure project. When operational in late 2018, it will be fully integrated with London s existing transport infrastructure and will increase central London rail capacity by 10% - the largest single increase since World War 2. Crossrail locations have seen unprecedented levels of demand from investors, developers and occupiers and have continued to outperform locations which will not benefit from access to the Crossrail network. Journey times from east to west will be dramatically reduced, linking the core employment markets of the West End, City and Canary Wharf and making them accessible to one another in under 15 minutes. Furthermore, access to the UK s dominant airport, Heathrow, will also be dramatically enhanced once services are up and running. For example, the rail journey time from the City of London to Heathrow will fall from 55 to 34 minutes on Crossrail. Circle Line Some of the impressive key statistics of Crossrail include: ST PAUL S 10 mins Central Line DESTINATION WATERLOO STATION THE WEST END (BOND STREET) TOTAL JOURNEY TIME 11 mins 13 mins (Crossrail) 60 miles of track with 41 accessible stations, 10 of which are brand new Estimated 200 million passengers per annum The network will bring an extra 1.5 million people to within a 45-minute journey time of Central London READING SOUTHALL WEST EALING ACTON MAIN LINE 7 MINS BOND STREET 2 MINS FARRINGDON LIVERPOOL STREET WHITECHAPEL STRATFORD SHENFIELD MIDTOWN (HOLBORN) SOUTHBANK (LONDON BRIDGE) CANARY WHARF KING S CROSS ST PANCRAS PADDINGTON STATION 14 mins 15 mins 15 mins (Crossrail) 16 mins 16 mins (Crossrail) MAIDENHEAD HEATHROW 34 MINS HANWELL EALING BROADWAY PADDINGTON 10 MINS TOTTENHAM COURT ROAD 4 MINS CANARY WHARF CUSTOM HOUSE WOOLWICH LONDON CITY AIRPORT ABBEY WOOD

6 1 King s Arms Yard London 8 9 LOCAL OCCUPIERS LOCAL DEVELOPMENT ACTIVITY 1 King s Arms Yard is surrounded by prime financial, legal and corporate businesses within a few minutes walk; there are also numerous high quality restaurants, bars and leisure facilities within the same area. Sun Street Appold S ONE NEW CHANGE Cannon Street BARBICAN Cheapside London Wall GUILDHALL Gresham Street Poultry Queen Victoria Street Moorgate 11 Princes Street Bank Moorgate Moorgate BANK OF ENGLAND Finsbury Circus ROYAL EXCHANGE Threadneedle Street Cornhill 28 4 London Wa l BROADGATE 6 1 TOWER 42 Old Broad Street Bishopsgate 3 THE LEADENHALL BUILDING 25 Leadenhall Street LLOYD S BUILDING Liverpool Street 24 HERON TOWER 9 Bishopsgate Bevis Marks 30 ST MARY AXE 100 LIVERPOOL STREET 523,000 sq ft (30% pre let) Delivery 2019 British Land/GIC 101 MOORGATE 88,000 sq ft Delivery 2020 Aviva/PSP LONDON WALL 346,000 sq ft Delivery 2019 LaSalle IM 1-14 LIVERPOOL ST 256,000 sq ft Delivery 2021 Aviva BISHOPSGATE 1,275,000 sq ft Delivery 2019 AXA led consortium 21 MOORFIELDS 564,000 sq ft (100% pre let) Delivery 2021 Landsec 7 11 MOORGATE & LONDON WALL 36,000 sq ft Delivery 2018 Thor Limited 1&2 LONDON WALL PLACE 500,000 sq ft Completed 2018 Schroders & Cleary Gottlieb Brookfield Devonshire Solicitors LLP 8 Alvarez & Marsal 16 Cleary Gottlieb 23 Deutsche Bank 2 First State Investments 9 ICAP 17 M&G 24 Latham & Watkins LLP 3 Rathbone Investment Management 4 Cisco Systems 5 CM CIC Systems 6 CRA 7 Stephenson Harwood LLP 10 Citadel Investment Group 11 Legal & General 12 WeWork 13 Tradeweb Europe Limited 14 Alfa 15 Schroders 18 Standard Chartered Bank 19 Prudential Regulation Authority 20 BNP Paribas 21 ING 22 BlackRock Investment Management 25 Aon 26 Axa 27 King & Spalding LLP 28 Nationwide 29 Commerzbank AG 100 BISHOPSGATE 879,000 sq ft (97,000 sq ft remaining) Delivery 2019 Brookfield ANGEL COURT 311,600 sq ft Completed 2017 Multi let Mitsui Fudosan/Stanhope 77 COLEMAN STREET 67,371 sq ft Delivery 2019 Kajima 25 COPTHALL AVENUE 49,240 sq ft refurbished Completed 2018 Multi let Helix Property

7 PROPERTY 1 King s Arms Yard London DESCRIPTION Newly developed in 2009 by Ardstone Capital and designed by renowned architect Rolfe Judd. 1 King s Arms Yard provides approximately 56,000 sq ft of high quality Grade A office and ancillary accommodation arranged over basement, lower ground, ground and six upper floors. Floor plates are regular and range from approximately 3,500 sq ft 7,500 sq ft with only a single line of columns making them suitable for both open plan and cellular use. The floors benefit from excellent natural light with windows on three elevations, providing stunning views over the Bank of England. The 6th floor benefits from a large roof top terrace. Secure bicycle storage and shower facilities are located in the basement. Large feature reception

8 Stunning views over the Bank of England

9 1 King s Arms Yard London SPECIFICATION 1 King s Arms Yard benefits from the following high quality specification: 2.65m typical floor to ceiling heights, with 3.05m on the ground floor Steel frame construction with composite concrete floors and a Portland Stone façade 1 person per 10 sq m occupancy ratio 3 x 13-person passenger lifts and 1 x 8-person fire lift 1.5m planning grid and 7.5m structural grid Fully accessible 600mm x 600mm tile raised floor system with 150mm void, with 100mm to 6th floor Predominantly perforated metal tile suspended ceilings with 1200mm x 300mm planks with integrated lighting Large roof terrace on 6th floor Four-pipe fan coil air conditioning system Male, female and disabled WC s on all floors Cycle storage, changing and shower facilities at basement and further shower on 6th floor THE FOLLOWING PROFESSIONAL TEAM WERE EMPLOYED TO COMPLETE THE DEVELOPMENT: DEVELOPER ARCHITECT STRUCTURAL ENGINEER BUILDING SERVICES ENGINEER PRINCIPAL CONTRACTOR Ardstone Capital Rolfe Judd Architecture Thomasons LLP Scott Wilson Wates Construction Limited

10 1 King s Arms Yard London ACCOMMODATION The property has been measured by Plowman Craven in accordance with the RICS Code of Measuring Practice (6th edition). A duty of care for the measured survey can be supplied. The net internal areas are as follows: FLOOR USE SQ FT SQ M 6TH Office 3, TH Office 6, TH Office 7, RD Office 7, ND Office 7, ST Office 7, GROUND Office 5, GROUND Reception LOWER GROUND Office 6, BASEMENT Office BASEMENT Storage 1, BASEMENT BMA TOTAL 56,071 5,209.3 The property has also been measured in accordance with IPMS. A copy of the report is held on the data room.

11 TOKENHOUSE YARD TOKENHOUSE YARD TOKENHOUSE YARD TOKENHOUSE YARD 1 King s Arms Yard London FLOOR PLANS LOWER GROUND 6,833 sq ft KING S ARMS YARD SECOND FLOOR 7,549 sq ft KING S ARMS YARD GROUND Office 5,386 sq ft Reception 802 sq ft KING S ARMS YARD FIFTH FLOOR 6,823 sq ft KING S ARMS YARD TERRACE TERRACE KEY KEY RECEPTION OFFICE CORE Floor plans are not to scale and are for indicative purposes only. Additional floor plans available upon request. RECEPTION OFFICE CORE Floor plans are not to scale and are for indicative purposes only. Additional floor plans available upon request.

12 K ING'S AR MS Y AR D TENURE / TENANCY 1 King s Arms Yard London TENURE The Property is held on a long leasehold basis from The Wardens and Commonalty of The Mystery of Mercers of the City of London. The lease is for a term of 140 years expiring in April The head rent payable is fixed at 5,000 per annum, with a fixed uplift of a further 5,000 every 25 years (next uplift due in 2026). 8 to 10 TE L E G R AP H S TR E E T Copthall Buildings Founders Court St Margaret's Close S t Margaret TOK E NHOUS E Y AR D C hurch LOTHBUR Y m Bank of England 0m 5m 10m 15m 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.

13 1 King s Arms Yard London TENANCY SECURE AND DIVERSE INCOME PROFILE 1% 7% 1 King s Arms Yard is multi-let to eight tenants from the financial and professional services sector. The offices are fully let, with only two small units at basement level currently unoccupied (accounting for less than 1% of the income for the asset). The total gross passing rent is 2,763,197 per annum, including top-ups, which equates to an overall rent of per sq ft, an attractive level in a market where prime rental levels are currently in excess of per sq ft. The property provides medium term income with a weighted average unexpired lease term (WAULT) of approximately 3.1 years to expiries. There is a rent review on the fifth floor (31 May 2018) which is currently passing off a low rent of per sq ft. Recent reviews in the building have settled at net effective rents from c to per sq ft suggesting an uplift on this floor which will enhance the level of rental income and improve the running yield. It is proposed the vacant storage and office units at basement level will be guaranteed by the vendor at a rent of and per sq ft respectively for a duration of 18 months. KEY Albion Ventures LLP Union Bank Saul Trustee Company Wilmington Trust SP Services (London) Limited CheckFree Solutions Limited Nexant Limited Alder Asset Management Twenty Recruitment Limited & Adrian Paul Kinnersley & Paul Andrew Marsden Vacant 9% 10% 16% 16% 12% 15% 14% TENANCY SCHEDULE RENT TENANT FLOOR USE AREA LEASE START LEASE EXPIRY REVIEW Albion Ventures LLP 6 Office 3,564 Basement Storage 259 PER ANNUM PER SQ FT 13/02/ /02/ , Union Bank UK PLC 5 Office 6,823 31/05/ /05/ /05/ , May 2018 rent review instigated. Saul Trustee Company 4 Office 7,597 Basement Storage /01/ /01/ , Wilmington Trust SP Services (London) Limited 3 Office 7,549 28/02/ /02/ , Rent settled at 2016 review. Rent deposit held. CheckFree Solutions Limited 2 Office 7,549 03/08/ /08/ , Rent settled at 2016 review. Surety from Fiserv, Inc. Rent deposit held. Nexant Limited 1 Office 7,500 Basement Storage 254 COMMENTS 21/07/ /07/ , Rent settled at 2016 review. Rent deposit held. Alder Asset Management Ground Office 5,386 22/09/ /09/ , N/A Ground Reception Twenty Recruitment Limited Lower Ground Office 6,833 26/01/ /01/ , Vacant Basement Office , month rental top-up. Vacant Basement Storage , month rental top-up. EDF Energy Network (LPN) Plc Basement Substation - 18/12/ /12/ N/A Basement BMA TOTAL 56,071 2,763, GROUND RENT - 5,000 NET RENT 2,758,197 Part ground floor sub let to Western United Investment Company on co terminus terms. Surety from Alder Investment Management Limited. Surety from Adrian Paul Kinnersley & Paul Andrew Marsden. Rent deposit held. Landlord redevelopment right to break upon 12 months notice to the Tenant - break contingent on Landlord granting Tenant a lease of alternative premises.

14 1 King s Arms Yard London TENANT COVENANTS of income secured to D&B rated 75%+ minimum risk covenants ALBION VENTURES LLP 7% OF RENTAL INCOME Albion Ventures LLP is a leading independent investment manager serving clients in the United Kingdom. It was founded in 1996 and invests in technology and asset based businesses. It is part of the wider Albion Group that manages funds of circa 1 billion. Albion Ventures LLP has a Dun & Bradstreet rating of A 1, which represents a low risk of business failure. Further information: SAUL TRUSTEE COMPANY 14% OF RENTAL INCOME SAUL Trustee Company (STC) is the administrator and Trustee of SAUL, which was set up in 1976 to provide pensions for non-academic staff of the University of London. STC employs around 60 people and is responsible for the day to day operations of SAUL as well as looking after the interests of the SAUL members. The lease is guaranteed by SAUL and has an Experian Risk Disk rating of 100/100 representing a very low risk of default and a Dun & Bradstreet rating of N 1, which represents a low risk of business failure. Further information: CHECKFREE SOLUTIONS LIMITED (NOW TRADING AS FISERV) 16% OF RENTAL INCOME CheckFree Solutions Limited was acquired by Fiserv in December Fiserv was founded in 1984 and specialises in development, distribution and service of financial software. The firm has approximately 24,000 associates worldwide and more than 12,000 clients in over 80 countries. Checkfree Solutions Limited has an Experian Risk Disk rating of 100/100 representing a very low risk of default and a Dun & Bradstreet rating of 4A 1, which represents a low risk of business failure. Further information: ALDER ASSET MANAGEMENT 10% OF RENTAL INCOME Alder Asset Management manages personal investment portfolios, trusts and fund assets over several asset classes. The firm is particularly known for managing the investments of a well known extended English family; which has over 80 members as clients and shareholders. Alder Asset Management has an Experian Risk Disk rating of 100/100 representing a very low risk of default and a Dun & Bradstreet rating of 2A 1, which represents a low risk of business failure. Further information: UNION BANK UK PLC 12% OF RENTAL INCOME Union Bank UK Plc is a wholly owned subsidiary of the Union Bank of Nigeria plc, one of the oldest and most revered banks in West Africa. Their UK subsidiary has been operating in London since 1983 and has acted independently as a UK bank since The bank offers a comprehensive range of banking services primarily to customers who do their business in Nigeria and West Africa. Union Bank UK plc has an Experian Risk Disk rating of 89/100 representing a low risk of default and a Dun & Bradstreet rating of 5A 1, which represents a low risk of business failure. Further information: WILMINGTON TRUST SERVICES (LONDON) LIMITED 16% OF RENTAL INCOME Wilmington Trust Services is a provider of international, corporate and institutional services, investment management and private banking. The firm was founded in 1903 as a banking trust and safe deposit company and in 2010 became a subsidiary of M&T Bank. The firm have been a leading provider of administrative services for some of the largest bankruptcies in US history. Wilmington Trust has an Experian Risk Disk rating of 100/100 representing a very low risk of default and a Dun & Bradstreet rating of 3A 1, which represents a low risk of business failure. Further information: NEXANT LIMITED 16% OF RENTAL INCOME Nexant provides software, consulting and services to utilities, energy enterprises and chemical companies, in order to enhance productivity. The company was founded in 2000 and now has a worldwide network of over 650 employees across 32 global offices spanning four continents. Nexant has an Experian Risk Disk rating of 96/100 representing a very low risk of default and a Dun & Bradstreet rating of 2A 1, which represents a low risk of business failure. Further information: TWENTY RECRUITMENT LIMITED 9% OF RENTAL INCOME Twenty Recruitment is one of the world s fastest expanding independent recruitment companies. The company specialises in several sectors including finance technology and legal & compliance. The company was formed in 2009 and operates from offices in London and New York, employing around 200 people across these offices. Twenty Recruitment Limited has an Experian Risk Disk rating of 75/100 representing a below average risk of default and a Dun & Bradstreet rating of A 3, which represents a high probability of business failure. Further information:

15 1 King s Arms Yard London ASSET MANAGEMENT INITIATIVES HEADLEASE SUMMARY The overall rent of 1 King s Arms Yard is per sq ft offering a sound platform for strategic asset management opportunities to drive future performance from the asset. This is helped by the majority of leases being held outside the security of tenure provisions of the Landlord & Tenant Act Specific opportunities include: Settle the outstanding rent review on the fifth floor lease where Union Bank are currently paying a low passing rent of per sq ft. Recent rent reviews have been settled on a net effective basis at rents ranging from per sq ft. Potential restructuring of the occupational leases to lengthen and improve the income profile. ADDITIONAL INFORMATION DATE 23 April 2001 LANDLORD The Wardens and Commonalty of the Mystery of Mercers of the City of London TERM 140 years (expiring 22 April 2141) PREMISES Land and buildings at 19 Tokenhouse Yard and 1-2 King s Arms Yard, London EC2 ALIENATION Not to transfer, charge or hold on trust any part of the premises; not to transfer the premises within the last seven years of the term without the prior written consent of the Landlord; not to underlet the whole or any part of the premises at a fine or premium save for short term underleases and not to underlet the whole or part for a term of 25 years or more without the prior written consent of the Landlord. REPAIR To repair the premises and maintain and keep them in good and substantial repair and condition other than in the three years prior to any redevelopment or during the period when a redevelopment is being carried out. PLANNING 1 King s Arms Yard is located under the jurisdiction of the City of London Corporation planning authority. The property is not listed but does sit within the Bank conservation area. VAT The property has been elected for VAT. ENVIRONMENTAL PERFORMANCE 1 King s Arms Yard has an EPC rating of C59 and the EPC certificate can be found in the online data room. The redevelopment in 2009 was completed to a BREEAM Very Good rating. CAPITAL ALLOWANCES It is anticipated that any capital allowances may be available to qualifying parties. Further details of these, if applicable, are available in the online data room. DATA ROOM For access to the online data room please contact the sales agents. USER Any purpose within Class A, B1 or B2 of the Town and Country Planning (Use Classes) order 1987, or such other commercial use which may be permitted with the landlord s qualified consent. Ancillary residential permitted as long as this does not comprise more than 10% of the NIA of the premises / no more than two separate units and is occupied by means of a service occupancy or AST for not longer than 3 years. RENT Fixed 5,000 per annum subject to increases of 5,000 every 25 years. Next increase in REDEVELOPMENT The Tenant may undertake three developments during the term. INSURANCE Tenant to insure the building.

16 1 King s Arms Yard London PROPOSAL Offers are invited in excess of 58,300,000, subject to contract and exclusive of VAT, for our client s long leasehold interest in 1 King s Arms Yard. This represents an attractive net initial yield of 4.65% and a capital value of 1,040 per sq ft, assuming acquisition costs of 1.80% through the purchase of the Luxembourg SARL. DAVID HOOKEY T: +44(0) E: david.hookey@cushwake.com 1 King s Arms Yard is part of the Amundi Collection of eight UK properties located in London, Glasgow and Cardiff. These assets are available individually or as a portfolio. Full details can be found at CONTACTS For further information or to arrange a viewing, please contact: JAMES BALL T: +44(0) E: james.ball@cushwake.com BEN COOK T: +44(0) E: ben.cook@cushwake.com ARGIE TAYLOR M: +44 (0) E: argie.taylor@cushwake.com BROCHURE DESIGNED AND PRODUCED BY SAENTYS +44 (0) INFO@SAENTYS.COM SAENTYS.COM Important Notice Cushman & Wakefield gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. 8. All photographs are for indicative purposes only. June 2018

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