THROGMORTON STREET, LONDON EC2 PRIME CITY INVESTMENT FOR SALE

1 26 THROGMORTON STREET, LONDON EC2 PRIME CITY INVESTMENT FOR SALE

2 26 THROGMORTON STREET, EC2

3 INVESTMENT SUMMARY LOCATION A core City of London location within a 150m of the Bank of England. Close by to excellent communications with Bank Underground Station and Liverpool Street Mainline and Underground Station. A vibrant City position surrounded by a wide variety of retail, bars, cafés, restaurants and amenities. DESCRIPTION The building comprises 22,336 sq ft (2,075.1 sq m) of offices, ancillary and public house/restaurant accommodation over lower ground, ground and five upper floors. The building was reconstructed behind the Grade II listed façade in 2000 to provide highly specified offices including four pipe fan coil air-conditioning, raised floors and metal tiled suspended ceilings. TENURE An effective 150 year long leasehold interest from November 1998 i.e. over 133 years unexpired at a ground rent based on 5% of net rents received. TENANCIES Multi-let to 6 office tenants with lease expiries and break options between June 2015 and March 2021 at a low average rent of approximately 40 per sq ft (including 12 months rental top up on the 2nd and 5th mezzanine floors at 52.50 per sq ft). Approximately 19% of the income is secured to Greene King until Sept 2024 (i.e. over 9 years unexpired) at just over 25 per sq overall. Approximately 41% of the office income is secured until at least March 2020, with an average weighted unexpired term for the building of 4.6 years to expiries and 3.8 years until earliest determination (including the rental top ups). The net rent is 753,392 per annum (assuming an estimated current ground rent of 36,506 per annum). PROPOSAL Offers in excess of 16m, subject to contract, reflecting a net initial yield of 4.46% (after deducting purchaser s costs of 5.8%) and a capital value of 716 per sq ft. The property provides an excellent opportunity to drive rents forward in the short to medium term by actively managing the property to take advantage of the improving City of London rental market. A prime multi-let City of London investment opportunity in a central and vibrant location.

HERON TOWER TOWER 42 30 ST MARY AXE THE LEADENHALL BUILDING 125 OLD BROAD STREET LLOYD S BUILDING LIVERPOOL STREET STATION

THE ROYAL EXCHANGE BANK OF ENGLAND 20 FENCHURCH STREET BANK STATION

6 26 THROGMORTON STREET, EC2 LOCATION Throgmorton Street is situated within the heart of the City of London in an established and vibrant location and is well positioned to benefit from the City s excellent transport communications. The building is in a prime and prominent City location on the northern side of Throgmorton Street at its junction with Old Broad Street and Austin Friars. Throgmorton Street is a prestigious address within the core of the City s financial district and close to the Bank of England. Over recent years there have been a number of high quality developments schemes in the immediate vicinity which have greatly enhanced the public realm and streetscape. These schemes have contributed to the area s continued importance as a high end office location and include developments such as 125 Old Broad Street, 60 Threadneedle Street, Tower 42 and Lion Plaza. Also on Throgmorton Street, Stanhope are currently redeveloping Angel Tower, a new 280,000 sq ft office scheme which will further improve the surrounding streetscape and provide additional amenities to the area. There are a wide variety of amenities within close proximity to the property including, restaurant, bars, pubs, cafés, food outlets, and gyms. Close by is the high end boutique retail location in and around the Royal Exchange which is home to luxury retailers such as Hermes, Louis Vuitton, Tiffany, Mont Blanc, Smythsons and chocolatier Paul Young. The central location of the property is also home to many of the world s major financial occupiers including Blackrock, Nationwide, Bank of China, ING and Deutsche Bank. Other local occupiers include White & Case, USS Berenberg, DTZ, Talbot Underwriting and Gatehouse Bank.

7 COMMUNICATIONS The property benefits from excellent underground and rail communications provided by the following: BANK (300m) LIVERPOOL STREET (375m) MOORGATE (500m) CANNON STREET (550m) Underground: Central, Circle, District, Northern and Waterloo & City lines and DLR British Rail: Main line services and Crossrail (from 2018) Underground: Central, Circle, Hammersmith & City and Metropolitan lines British Rail: Main line services and Crossrail (from 2018) Underground: Circle, Metropolitan, Hammersmith & City and Northern lines British Rail: Main line services Underground: Circle and District lines CROSSRAIL STRATFORD FOREST GATE HAYES & HARLINGTON HANWELL EALING BROADWAY PADDINGTON TOTTENHAM COURT ROAD LIVERPOOL STREET MARYLAND MANOR PARK TOWARDS MAIDENHEAD SOUTHALL WEST EALING ACTON MAIN LINE BOND STREET FARRINGDON WHITECHAPEL CUSTOM HOUSE ABBEY WOOD HEATHROW AIRPORT CANARY WHARF WOOLWICH

8 26 THROGMORTON STREET, EC2 LOCAL AMENITIES LOCAL OCCUPIERS Financial Insurance Legal/Other 1 Commerzbank 2 Bank of China 3 Bank of Ireland 4 Investec 5 Nationwide 6 Deutsche Bank 7 First Rand Bank 8 USS Berenberg 9 Standard Chartered 10 Rothschild 11 Aviva Investors 12 JP Morgan 13 Daiwa Securities 14 Blackrock 15 VTB 16 KBC Bank 17 ING 18 Smith & Williamson 19 China Construction Bank 20 Prudential 1 Legal & General 2 Aon Benfield 3 Royal & Sun Alliance 4 Allianz 5 Hiscox 6 AXA 7 Willis 8 Catlin 9 Aviva 10 XL Capital 1 White & Case 2 Latham & Watkins 3 DTZ 4 Sidley Austin 5 Kirkland & Ellis 6 Davis Polk & Wardwell 7 Baker Botts 8 Bingham McCutchen 9 Steptoe & Johnson 10 Bravura Solutions

5M INU TE W AL K 1 3M IN UT E 6 W AL K 6 2 19 4 10 2 7 9 7 8 ON ORT STREET OGM THR 3 1 5 5 8 6 9 5 7 NEW BANK ENTRANCE (2015) 10 8 4 3

10 26 THROGMORTON STREET, EC2 THE BUILDING Pictures from top: First Floor: Tenant reception Second Floor: Office space The 22,336 sq ft (2,075.1 sq m) building was redeveloped in 2000 behind three Grade II listed façades to provide approximately 16,416 sq ft (1,525.1 sq m) net of high specification office and ancillary accommodation arranged over basement, ground and five upper floors. The ground floor provides a well configured reception hall providing access to two passenger lifts. There is a public house/a3 unit on the ground and basement floors which comprises approximately 5,920 sq ft (550 sq m) of gross internal accommodation. The office accommodation benefits from a high quality specification including:- Four pipe fan coil air conditioning Fully accessible raised flooring Metal tile suspended ceilings with inset lighting Two fully automatic eight person passenger lifts Male and female WCs and shower facilities on all floors Double glazed windows Building Management System Floor loading of 3.0kN/m 2 plus 1.0kN/m 2 Ground First Floor Mezzanine Reception Public House Office Space Not to scale. Indicative only.

11 ACCOMMODATION SCHEDULE FLOOR USE AREA (SQ M) AREA (SQ FT) Fifth Mezzanine Fourth Mezzanine Third Mezzanine Office 145.7 46.8 Office 247.1 53.2 Office 278.8 52.5 1,568 504 2,660 573 3,001 565 Second Office 291 3,132 First Mezzanine Office 297.9 51.6 3,207 555 Ground Office 17.4 187 Ground Pub/Restaurant/A3 285.0 3,068 Basement Pub/Restaurant/A3 265.0 2,852 Basement Storage 43.1 464 TOTAL 2,075.1 22,336 The building has been measured by Plowman Craven Associates in line with the RICS code of measuring practice 6th edition. NB the office areas are provided as net internal measurements and the pub/restaurant/ A3 areas are gross internal. First Floor: Meeting Room

12 26 THROGMORTON STREET, EC2 TENURE TENANCY The building is held on a long lease from The Drapers Company for an effective term of over 133 years unexpired at a ground rent geared to 5% of rents received. TERM The term is for 99 years from 3 November 1998 and expiring 3 November 2097 with a tenant s option to renew for a further 51 years, which may be exercised at any time after the end of the 78th year of the term on not less than six months notice. RENT The ground rent payable is defined as the minimum rent plus the supplemental rent for the respective rent period ending 24 December each year. The property is multi-let to six office tenants on leases with expiries and breaks between June 2015 and March 2021 and a public house with a lease that expires in September 2024. The upper floor office rents range between approximately 26 per sq ft and 41 per sq ft (excluding the top up ) with the average office rent being approximately 40 per sq ft including the top up. The pub accommodation is let to Greene King plc, trading as Phoenix for a term of 25 years from 29th September 1999, to expire 28th September 2024; over 9 years unexpired. The current rent passing is 150,000 per annum which equates to just over 25 per sq ft overall. The total overall income including the proposed rental top up is 789,898 per annum which breaks back to a rent of 35.36 per sq ft. The net rent (after deducting the current ground rent) is 753,392. The supplemental rent for each rent period is 5% of the rents received by the tenant from the occupational underleases during the respective rent period, minus the minimum rent. 26 Dutch Church 60 Augustine House Priory (site of) The minimum rent is calculated as 2.5% of the market rent for the premises; the minimum rent is reviewed on an upward only basis every five years. The minimum rent is currently 15,000 per annum and the next review is due on 10 May 2015. AUSTIN FRIARS 6 4 Austin Friars House We estimate the ground rent to be in the order of 36,506 based on the current rent passing. 29 2 A copy of the headlease is available on request. 120 27 26 THROGMORTON STREET 123 11 OLD BROAD STREET 7 13 to 17 Bank Adams Court 10 9 Bank 4 Not to scale. For identification purposes only. This plan is based upon an Ordnance Survey Map with the sanction of the controller of H.M. Stationery Office. Crown Copyright reserved.

13 TENANCY SCHEDULE TENANT FLOOR USE AREA (SQ FT) LEASE START LEASE EXPIRY (TENANT BREAK OPTION) RENT REVIEW PASSING RENT (PA) PASSING RENT (PSF) COMMENTS Clearance Capital Limited 5th Office 1,568 01/04/2011 31/03/2016 56,664 36.14 Outside the 1954 Act GO Investment Partners LLP 5th Mezz Office 504 15/11/2010 23/06/2015 (plus a 12 month rental top up from completion) 26,460 1 52.50 Outside the 1954 Act The vendor will top up the rent to 52.50 psf for 12 months from completion Lighthouse Group Plc 4th 4th Mezz Basement Office Office Storage 2,660 573 38 14/03/2011 13/03/2021 (14/03/2016) 14/03/2016 123,000 37.93 10.00 2 Inside the 1954 Act (Underlet to The Association of Independent Financial Advisors) 3 months rent free if the March 2016 break is not exercised ADVFN Plc 3rd Office 3,001 31/03/2010 30/03/2020 31/03/2015 123,700 40.80 Inside the 1954 Act Basement Storage 126 10.00 2 ADVFN Plc 3rd Mezz Office 565 18/08/2010 30/03/2020 31/03/2015 15,000 26.55 Inside the 1954 Act GO Investment Partners LLP 2nd Office 3,132 24/06/2010 23/06/2015 (plus a 12 month rental top up from completion) 164,430 1 52.50 Inside the 1954 Act The vendor will top up the rent to 52.50 psf for 12 months from completion Loyens & Loeff 1st Office 3,207 24/06/2010 23/06/2020 24/06/2015 125,000 33.23 Inside the 1954 Act 3 1st Mezz Office 555 Cederberg Ground Office 187 23/06/2010 19/06/2015 5,644 30.02 Licence to occupy (the licence fee is 9,294 psf with 3,650 apportioned to service charge and the remainder as rent) Greene King Neighbourhood Estate Pubs Ltd (trading as Phoenix) Ground Public House/ A3 3,068 4 29/09/1999 28/09/2024 29/09/2019 150,000 25.34 Inside the 1954 Act (September 2014 review remains undocumented) Basement 2,852 4 (overall) Vacant Basement Storage 300 - TOTAL 22,336 789,898 1 The rent passing figure stated is the top up amount 2 10 per sq ft assumed on basement accommodation where applicable in order to analyse the office rent on a per sq ft basis 3 The tenant has a 9 month rent free period from 20/06/2015 which the vendor will cover at the current rent passing 4 The public house/a3 unit has been measured as a gross internal area

14 26 THROGMORTON STREET, EC2 TENANT INFORMATION LOYENS & LOEFF 16% of rental income Loyens & Loeff is a leading independent Benelux law firm, offering top-level advice for international businesses, financial institutions and government bodies. Its London office specialises in Benelux tax, corporate, banking and fund matters and who provides Benelux law expertise in these areas to the UK market. Loyens & Loeff has approximately 1,500 employees worldwide. GO INVESTMENT PARTNERS GROUP LLP 16% of rental income D&B rating of 2A 1 which represents a minimum risk of business failure. GO Investment Partners ( GO ) is an independent partnership, majority owned by its senior executives who have been managing constructive activist funds since 1998. ADVFN PLC 17.5% of rental income D&B rating of 1A 2 which represents a lower than average risk of business failure. ADVFN is a financial market website. It provides online data and services to private investors such as stock quotes, charts, news, FOREX, futures & options and stock screeners. LIGHTHOUSE GROUP PLC 15.5% of rental income D&B rating of N2 which represents a lower than average risk of business failure. Lighthouse Group is an AIM-listed company which provides financial advice to personal and corporate clients through specialist advisers located throughout the UK. CLEARANCE CAPITAL LTD 7% of rental income D&B rating of D3 which represents a higher than average risk of business failure. Clearance Capital is an investment management firm which specialises in European real estate capital markets. The firm was established in 2008. GREENE KING NEIGHBOURHOOD ESTATE PUBS LTD 19% of rental income D&B rating of 5A1 which represents a minimum risk of business failure. Greene King are one of the leading pub and brewing companies in the UK who run 1,900 managed, tenanted, leased and franchised pubs, restaurants and hotels. Greene King have been brewing award-winning ales for more than 200 years. The lease is guaranteed by Greene King plc. Fifth Floor: General Reception

15 PLANNING VAT The property is Grade II listed and is located in the historic Bank Conservation Area as designated by the City of London Corporation planning department. The building has been elected in respect of VAT. The sale may be treated as a Transfer of a Going Concern (TOGC) depending on the purchaser s VAT status. EPC DATA ROOM The Energy Performance Assessment Rating for the building is E105. Further information can be found on a dedicated online data room. Access to the data room is available on request. CAPITAL ALLOWANCES PROPOSAL There are no available capital allowances for the property. Offers in excess of 16,000,000, exclusive of VAT, subject to contract, for the leasehold interest. A purchase price of this level reflects a net initial yield of 4.46% (after deducting purchaser s costs of 5.8%) and a capital value of 716 per sq ft. Ground Floor: Public House

16 26 THROGMORTON STREET, EC2 FURTHER INFORMATION For further information or to arrange an inspection please contact the sole selling agent: Mike Pope D +44 (0)20 3440 9807 M +44 (0)7799 664 945 mike.pope@gryphonpropertypartners.com Jeremy Trice D +44 (0)20 3440 9802 M +44 (0)7798 636 599 jeremy.trice@gryphonpropertypartners.com On behalf of The Church Commissioners for England: Misrepresentation Act 1967: Gryphon Property Partners for themselves and for the vendor(s) or lessor(s) of this property whose agents they are, give notice that: 1. These particulars do not constitute, nor constitute any part of, an offer or contract. 2. None of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact. 3. Any intending purchaser or lessee must satisfy himself by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 4. The vendor(s) or lessor(s) do not make or give and neither Gryphon Property Partners nor any person in their employment has any authority to make or give, any representation or warranty whatever in relation to this property. Finance Act 1989: Unless otherwise stated all prices and rents are quoted exclusive of VAT. Property Misdescription Act 1991: These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. May 2015 www.cube-design.co.uk (Q3137)