33 lombard street PRIME FREEHOLD CITY OF LONDON INVESTMENT SECURELY LET FOR A FURTHER YEARS

Transcription

1 PRIME FREEHOLD CITY OF LONDON INVESTMENT SECURELY LET FOR A FURTHER YEARS on the instructions of grainmarket asset management llp

2 HERON TOWER TOWER 42 Swiss Re Bank of England Royal Exchange Lloyd s of London MANSION HOUSE DLR bank Station 20 Gracechurch StREET 20 Fenchurch Street UNDER CONSTRUCTION NM ROTHSCHILD & SONS 33 lombard street 3 Not to scale.

3 overview Freehold. Prime City of London investment securely let for a further years. Each office floor is separately leased and subject to upwards only rent review in June This arrangement is anticipated to increase the likelihood of a rental uplift. Situated within 200 metres of the Bank of England. Substantially refurbished in 2010 / The ground floor and basement accommodation is anticipated to provide exposure to the City of London s vibrant retail, restaurant and leisure sectors. 58,583 sq.ft. (5,442 sq.m.) of Grade A office, retail, leisure (1) and ancillary accommodation. The offices are securely let to Integrated Financial Arrangements Plc (IFA) until June 2023 term certain. The property occupies a substantial site which is relatively under- developed. In due course there may be scope to increase the lettable floor area, possibly in conjunction with neighbouring ownerships. IFA is a major financial services group with a reported net worth of 40 million. PROPOSAL All leases are drawn on effective full repairing and insuring terms. Contracted rent of 2,488,546 (2) per annum exclusive. The office rent equates to per sq.ft. ( 525 per sq.m.) overall in respect of the best accommodation. Offers are invited, subject to contract, for the freehold interest. (1) Planning approval has recently been obtained to convert part of the ground floor and basement to a gymnasium. It is anticipated that the balance of the ground floor and basement will attract retail/ restaurant occupiers subject to obtaining the necessary consents. (2) Rent reserved assuming rental top up s are provided to the contractual minimum rent anticipated to be payable (post letting the ground floor and basement) with effect from 24/06/2018. Prime headline City of London rents are currently per sq.ft. ( 590 per sq.m.) with evidence within the tower buildings exceeding per sq.ft. ( 700 per sq.m.). 3

4 Location 33 Lombard Street is situated in a prime City of London location less than 200 metres south east of the Bank of England, Mansion House and The Royal Exchange. Neighbouring occupiers include; NM Rothschild & Sons, Mitsubishi UFJ, UBS Asset Management, Daiwa Securities and VTB Bank. The immediate vicinity provides a fantastic and diverse range of amenities. Whether luxury shopping at Royal Exchange, the Victorian splendour of Leadenhall Market or the latest contemporary amenities within New Change, all tastes and fashions are catered for. 34

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6 HERON TOWER MCDERMOTT WILL & EmERY partners group SNORAS BANK METLIFE TOWER 42 ARNOLD & PORTER LLP DEBEVOISE & PLIMPTON LLP SAMSUNG LIFE INVESTMENT WHITE & CASE AXA 30 st mary axe SWISS RE STANDARD LIFE ARES CAPITAL KIRKLAND & ELLIS LLP AVIVA DEUTSCHE BANK BINGHAM MCCUTCHEN BAKER BOTTS UBS INVESTMENTS TORONTO DOMINION TALBOT UNDERWRITING WILLIS Bank of England LLOYD S OF LONDON CATLIN RFIB GROUP ROYAL & SUNALLIANCE VTB BANK CANADA LIFE AXA INSURANCE NM ROTHSCHILD & SONS MONTE DEI PASCUI DI SIENA NM ROTHSCHILD & SONS INDUSTRIAL & COMMERCIAL BANK OF CHINA CHARLES SCHWAB UBS GLOBAL ASSET MANAGEMENT 33 lombard street XL CAPITAL TOKIO MARINE ALLIANZ GROUP PLANTATION PLACE ACCENTURE ROYAL & SUNALLIANCE WELLS FARGO & COMPANY ROYAL LONDON ASSET MANAGEMENT UNIVERSITY PARTNERSHIP PROGRAMME mitsubishi ufj N 36

7 KING STREET IRONMONGER LANE OLD JEWRY BANK OF ENGLAND Bank of England THROGMORTON STREET BARTHOLOMEW LANE ROYAL EXCHANGE Royal Exchange OLD BROAD STREET FINCH LANE BISHOPSGATE LEADENHALL STREET 3 MANSION HOUSE mansion house BANK BIRCHIN LANE LLOYD S OF LONDON LLOYD S OF LONDON 1 8 WALBROOK 6 4 LOMBARD STREET 33 lombard street CLEMENT S LANE FENCHURCH STREET 2 CANNON STREET 7 QUEEN STREET PLACE 3 UPPER THAMES STREET N UPPER THAMES STREET KING WILLIAM STREET MONUMENT MONUMENT STREET 5 EASTCHEAP

8 CURRENT & RECENTLY COMPLETED DEVELOPMENTS 1 67 Lombard Street, EC3 5 Monument Place, EC3 Size: Status: Developer: 90,000 sq.ft. (8,361 sq.m.). speculative development scheduled for completion in mid Viridis Real Estate. Size: Status: Developer: 75,000 (6,967 sq.m.) of Grade A office accommodation including two retail units totalling 7,400 sq.ft. (687 sq.m.) speculative development underway. Completion scheduled for summer rockspring Property Investment Managers and development partner, Charterfield Asset management Fenchurch Street ( The Walkie-Talkie ), EC3 6 The Walbrook Building, EC4 Size: Status: Developer: Occupiers: 685,000 sq.ft. (63,639 sq.m.) arranged over 36 floors including a publicly accessible roof terrace. speculative development underway. Completion scheduled for Q land Securities & Canary Wharf Group Plc. The project is set to attract high profile occupiers from the business community. Lettings have been concluded with Markel Corporation and RK Kiln at headline rents reported to be at per sq.ft. Negotiations are underway with a number of other occupiers. Size: Status: Developer: 445,000 sq.ft. (41,341 sq.m.) of Grade A offices plus 35,000 sq.ft. of retail & restaurant accommodation. foster & Partners designed headquarters building. Completed to shell & core. Minerva. 3 The Leadenhall Building, 122 Leadenhall Street, EC3 Size: 614,000 sq.ft. (57,051 sq.m.) arranged over 43 floors. Status: Construction underway. Completion scheduled for Mid Developer: british Land and Oxford Properties. Occupiers: AON has committed to a pre-let of circa 190,000 sq.ft. (17,651 sq.m.). Balance being developed speculatively. 7 Size: Cannon Place, EC4 Status: Developer: 389,000 sq.ft. (36,138 sq.m.) of Grade A office accommodation plus a new rail concourse and entrance to Cannon Street station. Completed. Hines. 4 New Court, EC3 8 Bloomberg Place, EC2 Size: Status: Developer: 140,000 sq.ft. (13,000 sq.m.). New headquarters building owned and occupied by NM Rothschild & Sons. NM Rothschild & Sons. Size: Status: Developer: 662,755 sq.ft. (61,751 sq.m.) comprising offices, retail, restaurants and a new entrance to Bank station. New European headquarters of Bloomberg, under construction and scheduled for completion late 2014 / early Bloomberg. 38

9 CONNECTIVITY Transport communications are excellent. The property is within 200 metres of Bank station and 100 metres from Monument station (Central, Northern, District & Circle and Docklands Light Railway). Proximity to Underground and Mainline Connections 33 lombard street Mainline services from Cannon Street station and Fenchurch Street station are within a five minute walk. London Bridge, Liverpool Street and Moorgate stations are within a ten minute walk. London City Airport is located within 26 minutes from Bank Underground Station (via the Docklands Light Railway) and provides links to all of Europe s major cities. Gatwick Airport is a 30 minute journey from London Bridge station. Local Underground and Mainline Stations & Journey Times from Bank Station Monument Underground 100 metres District & Circle H hammersmith & City Northern via link with Bank Bank Underground 200 metres Central D district via Monument Circle via Monument M metropolitan Northern A Docklands Light Railway (DLR) Canary Wharf and London City airport Source: BAKER STREET 15 MINS EUSTON 10 MINS KING S CROSS ST. PANCRAS 8 MINS FARRINGDON 12 MINS OLD STREET 4 MINS TO LUTON/STANSTED LIVERPOOL STREET 2 MINS Cannon Street Underground 300 metres Disrict & Circle Rail services to Sussex, Kent and the S south Coast. MOORGATE 2 MINS WHITECHAPEL Fenchurch Street Rail 400 metres Services to Essex & East Anglia BOND STREET 9 MINS GREEN PARK 13 MINS TO HEATHROW 45 MINS VICTORIA 17 MINS OXFORD TOTTENHAM HOLBORN CHANCERY CIRCUS COURT ROAD 5 MINS LANE ST PAUL S 8 MINS 6 MINS 3 MINS 1 MIN ALDGATE BANK 8 MINS LEICESTER CITY THAMESLINK TO CITY AIRPORT SQUARE 15 MINS 26 MINS 13 MINS CANNON STREET 3 MINS MONUMENT TOWER HILL 2 MINS 6 MINS TOWER GATEWAY FENCHURCH 11 MINS CHARING CROSS STREET 12 MINS BLACKFRIARS MANSION HOUSE 9 MINS 8 MINS 5 MINS EMBANKMENT TEMPLE 11 MINS 10 MINS LONDON BRIDGE TO CANARY 2 MINS WHARF 10 MINS 33 lombard street Central Circle District Hammersmith & City Jubilee Metropolitan Northern Waterloo & City DLR Thameslink Liverpool Street Underground 500 metres Circle Hammersmith & City M metropolitan B bakerloo Central S Rail services to Essex, Cambridgeshire, Norfolk and Suffolk. Stansted Express rail service. WATERLOO 4 MINS TO GATWICK 44 MINS Crossrail (Operational 2018) 39

10 Bank Station Upgrade Four bidding groups have been shortlisted to implement a 500m upgrade of The Bank and Monument Tube station complex, the fourth busiest interchange station on the Underground network with 96,000 customers during the morning rush hours. The upgrade project (anticipated to be completed by 2021) will deliver a new station entrance a short distance south of 33 Lombard Street (refer to the plan below), increased capacity at Bank station and a step free-route between the Northern line platforms, DLR and street levels. 33 lombard street 10 3

11 description 33 Lombard Street was comprehensively refurbished by Grainmarket Asset Management LLP in 2010/2011 to provide a Grade A headquarters building. Works included the replacement and substantial over-haul of all central plant and machinery (refer below) and the re-configuration and Category A refurbishment of the office accommodation. The main reception, WC s and lift lobbies have been redesigned with high quality contemporary fixtures and fittings. The building is arranged over two basements, a ground and five upper floors and provides 58,583 sq.ft. (5,442 sq.m.) of lettable floorspace together with secure parking for up to six cars. Three thirteen-person passenger lifts. Metal tiled suspended ceilings. Recessed LG7 lighting with 400 LUX and automatic motion detection system. 115mm raised access floors. Finished floor to ceiling heights of 2.50 metres (enhanced at ground floor level). High specification male and female WC facilities on each floor. The offices total 45,130 sq.ft. (4,192 sq.m.) arranged at first to fifth floors inclusive. The office tenant leases a further 3,323 sq.ft. (308 sq.m.) of reception and ancillary accommodation at ground and sub-basement levels, together with all of the basement car parking. The ground and basement has a gross internal area (GIA) of 10,130 sq.ft. (941 sq.m.) and is capable of being independently accessed and serviced. This area is currently finished to shell and core having formally been in office use. Planning approval has recently been obtained to utilise part of this accommodation as a gymnasium. Alternative uses for the remainder could include retail or restaurant, subject to obtaining the necessary consents. Amenities include:- A large and impressive reception fronting Clements Lane. A four pipe fan coil air conditioning system on 1st & 2nd floors and a VAV system on 3rd - 5th floors. Showers, changing rooms and bicycle racks. Fully DDA compliant access and facilities. Basement parking for up to six motor cars accessed via a car lift. Plant Replacement The following items of plant were replaced as part of the recent refurbishment:- Gas fired boilers. Chillers. Cooling towers and associated pumps and controls. Fan coil units. 11 3

12 ACCOMMODATION The building has been measured by Armada Surveys Limited. The lettable floor areas are as follows:- FLOOR USE area (SQ.FT.) area (SQ.M.) Fifth offices 5, Fourth offices 9, Third offices 10, Second offices 10, First offices 9, Ground reception 1, Part Basement 6 Car Spaces - - Sub Basement Storage 2, Sub Total 48,453 (offices 45,130) 4, (offices 4,192.67) Part Ground Gymnasium 1,557* * Part Basement Gymnasium 2,233* * Sub Total 3,790* * Part Ground Leisure / Retail 3, Part Basement Leisure / Retail 1, Sub Total 5,068* * Part Ground Retail 1,272* * TOTAL 58,583 5, * The floor area shown is measured on a Gross Internal Area basis (GIA). 12 3

13 33 LOMBARD STREET 33 LOMBARD STREET 133

14 Tenure Freehold. 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. The area shaded blue is subject to a rights of way at ground floor level. Planning The property is not listed, nor is it situated within a designated Conservation Area. 14 3

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17 TENANCies The property is let in accordance with the tenancy schedule set out overleaf. We would draw your attention to the following:- All leases are drawn on effective full repairing and insuring terms. The offices are let for a further years term certain. The rent reserved will be topped up by the Vendor to 2,488,546 per annum exclusive, i.e. to the contractual minimum level of rent anticipated to be payable (post letting the ground floor and basement) with effect from 24/06/2018. The office rent equates to per sq.ft. overall in respect of the accommodation at first to fifth floors inclusive. Reception, storage and car parking is leased to the office tenant at a peppercorn rent and excluded from the aforementioned calculation. All office leases are all subject to upwards only open market rent reviews in June A summary of a typical office lease is set out at Appendix

18 TENANCY SCHEDUle TENANT FLOOR USE AREA LEASE LEASE NEXT RENT PASSING RENT COMMENTS (SQ.FT.) START DATE EXPIRY DATE REVIEW DATE RENT ( PA) ( P.S.F) Integrated Financial Fifth offices 5,263 24/06/ /06/ /06/ , Arrangements Plc Integrated Financial Fourth offices 9,333 24/06/ /06/ /06/ , Arrangements Plc Integrated Financial Third offices 10,125 24/06/ /06/ /06/ , Arrangements Plc Integrated Financial Second Offices 10,428 24/06/ /06/ /06/ , Arrangements Plc Integrated Financial First offices 9,981 24/06/ /06/ /06/ , Arrangements Plc Integrated Financial Ground Reception 1,272 24/06/ /06/ Peppercorn - Arrangements Plc Part Basement 6 Car Spaces - S sub Basement Storage 2,051 Cyclebeat Ltd Part Ground Gymnasium 1,557 14/09/ /09/ /09/ , Part Basement Gymnasium 2, Vacant Part Ground Leisure / Retail 3, , L lower Ground Leisure / Retail 1, Vacant ground Annex Retail 1, , Inside1954 Act. As at 24/06/2018 the initial rent of 232,047 per annum will increase to a minimum of 269,007 per annum ( per sq.ft.) and to a maximum of 296,158 per annum ( per sq.ft.) exclusive, i.e. a collar and cap equivalent to five years of compounded growth of 3.00% per annum and 5.00% per annum respectively. The lease provides for a fixed service charge. Inside1954 Act. As at 24/06/2018 the initial rent of 406,829 per annum will increase to a minimum of 471,626 per annum ( per sq.ft.) and to a maximum of 519,228 per annum ( per sq.ft.) exclusive, i.e. a collar and cap equivalent to five years of compounded growth of 3.00% per annum and 5.00% per annum respectively. The lease provides for a fixed service charge. Inside1954 Act. As at 24/06/2018 the initial rent of 441,352 per annum will increase to a minimum of 511,649 per annum ( per sq.ft.) and to a maximum of 563,290 per annum ( per sq.ft.) exclusive, i.e. a collar and cap equivalent to five years of compounded growth of 3.00% per annum and 5.00% per annum respectively. The lease provides for a fixed service charge. Inside1954 Act. As at 24/06/2018 the initial rent of 454,560 per annum will increase to a minimum of 526,960 per annum ( per sq.ft.) and a maximum of 580,147 per annum ( per sq.ft.) exclusive, i.e. a collar and cap equivalent to five years of compounded growth of 3.00% per annum and 5.00% per annum respectively. The lease provides for a fixed service charge. Inside1954 Act. As at 24/06/2018 the initial rent of 365,208 per annum will increase to a minimum of 423,377 per annum ( per sq.ft.) and to a maximum of 466,109 per annum ( per sq.ft.) exclusive i.e. a collar and cap equivalent to five years of compounded growth of 3.00% per annum and 5.00% per annum respectively. The lease provides for a fixed service charge. Inside 1954 Act. The lease provides for a fixed service charge. Outside 1954 Act. Measured on a Gross Internal Area (GIA) basis. As at 14/09/2017 the initial rent of 100,000 per annum will increase to 115,927 per annum. With effect from 14/09/2023 the rent will increase to 138,423 per annum for the duration of the term. Landlord s option to determine as at 23/06/2023 (upon serving twelve months notice) subject to a penalty of 50,000 and a waiver of the reinstatement provisions. The demise includes an external covered courtyard. Measured on a Gross Internal Area (GIA) basis. The net internal area is 3,227 sq.ft. at ground and 1,176 sq.ft. lower ground. A twenty four month rent top up will be provided. Measured on a Gross Internal Area (GIA) basis. The net internal area is 1,005 sq.ft. A twenty four month rent top up will be provided. TOTAL OFFICES & ANCILLARy 48,453 2,202,619 TOTAL GYM, LEISURE & RETAIL 10, ,927 AGGREGATE 58,583 2,488,

19 TENANT S profile Integrated Financial Arrangements Plc The Transact service is essentially a platform for Independent Financial Advisors. Some of the functions and benefits which it provides are as follows:- There is only one counterparty to deal with Transact. Integrated Financial Arrangements Plc (IFA) was incorporated in 1999 and began trading in March The business has been profitable every year since June Financial highlights are set out below:- Clients can view their entire portfolio all in one place. Clients receive a single consolidated annual tax statement, comprehensive six monthly statements, confirmation of all purchases, sales, deposits and withdrawals as well as other information such as online Capital Gains Tax calculations. 30/09/ /09/ /09/2009 Turnover 49,774,000 46,031,000 38,421,000 Pre-tax Profit 14,551,000 17,551,000 14,516,000 Net Worth 40,613,000 41,833,000 19,235,000 Fee calculations including ad valorem charges, time based charges, retainer or ad hoc charges. High quality tools to help analyse a client s current financial position and plan what the need to meet their long term goals. Integrated Financial Arrangements is engaged in the provision of Transact - a WRAP service which arranges and executes transactions between investors, their advisers and financial product providers. Further information is available online at the following web sites:- Cyclebeat Ltd Cyclebeat Ltd is a new venture which will provide customers with yoga and spin classes within the business district of the City of London. The directors currently operate London s premier Bikram Yoga studios (Hot Bikram Yoga) with facilities at London Bridge, Fulham and Balham. Further information is available online at

20 EPC PROFESSIONAL TEAM 33 Lombard Street was comprehensively refurbished in 2010 / The key professionals included:- Developer: M Architect: H grainmarket Asset management LLP Househam henderson 20 3

21 service charge VAT To be read in conjunction with the office lease summary set out at Appendix 1. The property is not elected for VAT. All leases are drawn on effective full repairing and insuring terms. Integrated Financial Arrangements Plc (IFA) has entered into fixed service charge provisions whereby the Landlord assumes responsibility for the provision of certain services. CAPITAL ALLOWANCES No capital allowances are available to the Purchaser. IFA s service charge contributions (during the service charge year to 31st December 2012) equate to an aggregate of 193,812 per annum ( 4.29 per sq.ft.). The leases provide for this to increase on an annual basis in line with RPI. The Tenant is responsible for costs incurred in respect of security, electricity and all other utilities. The Landlord (via the service charge) is responsible for:- Maintaining in good repair, repairing, renewing, cleaning (including windows), decorating or otherwise treating (in accordance with the principals of good estate management) all parts of the building (other than the Premises and Lettable Units demised to the Tenant by the Office Leases and Common Parts Lease). PROPOSAL Offers are invited, subject to contact, for the freehold interest. FURTHER INFORMATION Please contact the Vendor s sole agent:- The structural and external parts of the building including the roof. The hallow clay pot soffits within the premises. Air conditioning, plant rooms, risers and lifts. Providing facilities for the heating and mechanical ventilation and cooling of the premises and the common parts. HALL KEMP LLP Lime Street London EC3M 7ay Tel: +44 (0) douglas.hall@hallkemp.com Providing hot and cold water to the premises. 21 3

22 APPENDIX 1 SUMMARY OF A TYPICAL OFFICE LEASE Premises Fourth floor Lombard Street and Clements Lane, London, EC3. Tenant Integrated Financial Arrangements Plc (Company No ). Term 11 years (term certain) commencing 24th June 2012 and expiring 23rd June The lease is held inside the Security of Tenure and Compensation provisions of the Landlord and Tenant Act Rent 406, per annum exclusive. Rent is payable quarterly in advance on the usual English quarter days. Rent Review 24th June Rent is reviewed to the higher of:- the open market rental value of the premises as at the date of review and; a sum equivalent to the rent payable immediately prior to the date of review plus interest at the rate of 3.00% per annum compounded annually from and including the date five years prior to the date of review. The open market rental value of the premises is defined as the lesser of:- the annual rent at which the premises might be expected to let at the date of review on the assumptions set out below; and a sum equivalent to the rent payable immediately prior to the date of review plus interest at the rate of 5.00% per annum compounded annually from and including the date five years prior to the date of review. Rent Review Assumptions In assessing the open market rent, the following is assumed:- A willing lessor and a willing lessee. A letting of the whole. Without a fine or premium. With vacant possession. For a term of ten years commencing on the date of review. That the willing tenant has had the benefit of a rent free period that would normally be available in the open market to reflect the time taken to undertake initial fit-out works. That the covenants and conditions contained within the lease have been performed. The premises are in good and substantial repair and condition and are completed in accordance with the base specification. That the premises are fit for immediate occupation. That no work has been undertaken by the Tenant (or its predecessors in title) which has diminished the rental value. The valuation should disregard the following:- Any effect on the open market rental value of the premises of the fact that the Tenant (or by its predecessors in title or by any sub-tenant) have been in occupation. Any goodwill attached to the premises on account of the Tenant s (or by its predecessors in title or by any sub-tenant) occupation. Improvements undertaken with consent (where required) by the Tenant or sub-tenants. Any effect on rent of any obligation of the Tenant to reinstate the premises to the condition or design of the premises before the carrying out of any works to the premises. Any works to the premises by the Tenant which adversely affect the energy efficiency of the premises. The fact that any VAT chargeable on the rents payable under the hypothetical lease may not be recoverable by the willing lessee. Arbitration If the parties cannot agree the new rent three months before the rent review date, either party may require it to be determined by an arbitrator to be appointed by the RICS. Repair, Decoration & Yielding Up The Tenant covenants to keep the premises in good and substantial repair and condition and to keep the premises clean and tidy. Drains, plant, machinery and appurtenances exclusively serving the premises are to be kept repaired. The Tenant covenants to replace all Landlords fixtures, fittings and appurtenances in the premises which become beyond repair during or at the end of the term. Whenever reasonably necessary and also during the last year of the term, the Tenant covenants to paint and decorate all surfaces and other parts, fabrics and finishes. The tenant covenants to replace all broken or damaged glass and to clean all internal faces of all windows and window frames at least once in every six months. Unless released from compliance, the Tenant covenants to remove from the premises all fixtures, fittings, partitions, furniture and effects. The Tenant also covenants to remove any alterations or additions carried out to the premises and to re-instate the premises to the condition and design in which they were prior to undertaking alterations. The tenant covenants to replace all carpets and other floor coverings laid in the premises with new carpet and coverings (if reasonably required by the landlord) and to make good any damage caused to the Premises by any reinstatements or removal. Service Charge Notwithstanding the aforementioned repairing and reinstatement obligations, the Tenant pays a fixed service charge of 40, per annum rising annually in line with RPI. The Landlord is responsible for:- Maintaining in good repair, repairing, renewing, cleaning, decorating or otherwise treating (in accordance with the principals of good estate management) all parts of the building (other than the Premises and Lettable Units demised to the Tenant by the Lease and Common Parts Lease). The structural and external parts of the building including the roof. The hallow clay pot soffits within the premises. Air conditioning. Plant rooms. Risers. Lifts. Providing facilities for the heating and mechanical ventilation and cooling of the premises and the common parts. Providing hot and cold water to the premises. The Landlord does not assume responsibility for providing electricity or any other utility. The costs of all utilities is payable separately by the Tenant. Alterations Structural alterations are prohibited. The Tenant is permitted (with Landlord s prior written consent not to be unreasonably withheld or delayed) to make minor alterations to the mechanical, electrical and service media within or serving the premises and carry out non-structural alterations. The Tenant may install demountable partitions and undertake other minor works without Landlord s consent. Such works must not materially affect the operation of the service media, the services, or the air conditioning within the building. Alienation The tenant covenants:- Not to assign part only. Not to assign the whole of the premises without prior written consent (not to be unreasonably withheld or delayed). The Landlord may reasonably require that the Tenant enters into an Authorised Guarantee Agreement. Underletting(s) of the whole or part is permitted (provided there shall be no more than two occupiers of the Premises at any one time) with the Landlord s consent (not to be unreasonably withheld or delayed). Insurance The Landlord is to insure the building and three years loss of rent. The tenant will reimburse a fair proportion of the premium. User To be used as offices within use call B1 of the 1987 Town and Country Planning Use Classes Order. 22 3

23 APPENDIX 2 - FLOOR PLANS Ground Floor Third Floor OFFICE/RETAIL/RESTAURANT/LEISURE (STP) PLOUGH COURT PLOUGH COURT OFFICE OFFICE/RETAIL/RESTAURANT/LEISURE (STP) LIFT GYMNASIUM (STP) LOMBARD COURT RISER LOMBARD COURT LIFT WC LIFT WC LIFT RISER LIFT LIFT LIFT WC RISER WC CAR LIFT OFFICE RECEPTION OFFICE BIN STORE CLEMENT S LANE CLEMENT S LANE N Not to scale. For indicative purposes only. 233

24 Fifth Floor ROOF TERRACE PLOUGH COURT OFFICE RISER LOMBARD COURT OFFICE WC LIFT RISER LIFT LIFT WC RISER CLEMENT S LANE 24 3

25 MISREPRESENTATION ACT 1967 Hall Kemp LLP for themselves and the Vendor of this property give notice to anyone who reads these particulars as follows:- 1 These particulars are prepared for the guidance only of prospective purchasers. They are intended to give 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 conditions or otherwise nor that any services or facilities are in good working order. 4 The photographs appearing in this brochure show only certain parts 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. Further, 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 an intending purchaser. 7 Descriptions of a property are inevitably subjective and the descriptions contained herein are in good faith as an opinion and not by way of statement of fact. 8 Any intending purchaser should satisfy themselves as to the presence of any deleterious materials that may exist, or have been used in the construction of the property. 9 The vendor provides no warranty as to the precise location of the boundaries of the property. PROPERTY MISDESCRIPTION ACT These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. September 2012.