Prime Mixed Use Consented Development Opportunity

Prime Mixed Use Consented Development Opportunity

SUMMARY Shoreditch is one of Central London s most exciting submarkets and has become one of London s fastest growing economic districts Prime development opportunity on a site of 0.07 hectares (0.17 acres) 150 metres from Shoreditch High Street Station, 500 metres from Liverpool Street Station and 700 metres from Old Street Station The site benefits from detailed planning permission for the demolition of the existing petrol filling station and the erection of a 6 storey (plus basement) mixed use development comprising a restaurant over the basement and ground floors, with five floors of office accommodation above The basement and ground floor restaurant has been pre-let to Alan Yau Long leasehold for a term of 150 years from completion, at an initial head rent of 200,000 per annum Offers are invited, subject to contract, for the benefit of the long leasehold interest 2

LOCATION Shoreditch is one of Central London s most exciting sub-markets. Situated on the north east boundary of the City of London and a short distance to the east of Old Street roundabout, Shoreditch has become one of London s fastest growing districts. Following years of redevelopment the area is now home to many of London s most fashionable restaurants, hotels and retailers. Located predominantly in the London Borough of Hackney, Shoreditch benefits from excellent communication links with Old Street (Northern Line), Liverpool Street (Central, Circle, Hammersmith & City and Metropolitan Lines) and Shoreditch High Street (London Overground) stations all within walking distance of the property. In addition, numerous bus routes pass along Shoreditch High Street, linking the area to the wider reaches of London. Shoreditch High Street and the surrounding streets have become an increasingly fashionable location with hip hotels, unique boutiques, highly regarded retailers and many well-known restaurants. The location is a highly sought after office, retail and leisure destination with requirements escalating in the past few years as the popularity and prestige of the location have increased. Hotel and restaurant occupiers include; Shoreditch House, The Ace Hotel, The Hoxton Hotel, Dishoom and Hoi Polloi. The Nobu Hotel is due to open in 2017. Amongst the retailers are Kit and Ace, Aesop, APC and Sunspel. Boxpark houses a number of independent brands whilst The Truman Brewery is also home to many retailers and leisure occupiers. Office occupiers now include L.K. Bennett, William Hill PLC, Farfetch, Oasis, Firebox.com, Network Rail, The Office Group, CBS Interactive and Dazed Digital. 3

Liverpool Street Station The Truman Brewery The Shoreditch estate google campus Shoreditch High Street Station The Bishopsgate Goodsyard The Tea Building Principal Place The White Collar Factory The Bower BOXPARK The Stage The Curtain Hotel Old Street Station 201-207 Shoreditch High Street ACE HOTEL Hoxton Hotel Shoreditch Village The Atlas Building 4

Local Developments White Collar Factory Old Street Roundabout A 278,000 sq ft office and retail scheme, together with 10,000 sq ft of residential developed by Derwent London. Scheduled for completion in Q4 2016. Further information is available at whitecollarfactory.com. The Bishopsgate Goodsyard Shoreditch High Street A Hammerson and Ballymore joint venture comprising a mixed used 4.7 hectare site to provide up to 2,000 new residential units, office accommodation, retail and leisure amenities and over 1.8 hectares of public realm space. The Atlas Building 145 City Road Rocket Investments have started development on the 40 storey, 302 apartment residential tower development which will also benefit from a generous public realm space, offices and retail. Demolition has started on site with completion expected by 2018. The Bower Old Street Roundabout A new landmark quarter developed by Helical plc featuring 320,000 sq ft of office, restaurant and retail accommodation. Phase 1 is now complete and fully let. 201-207 Shoreditch High Street A development by Highgate Holdings will include a 200-room luxury hotel and 127,724 sq ft of office space arranged over 30 storeys. The project is expected to be delivered in 2018. Principal Place Worship Street A 600,000 sq ft Foster & Partners designed mixeduse development by Brookfield. Amazon, the global on-line retailer, has pre-let 430,000 sq ft of space. Scheduled for completion in late 2016. Further information is available at principalplace. co.uk The Stage The Shoreditch Estate Blossom Street A 192,000 sq ft 3 phase mixed-use development by British Land. The development is taking place on a site of 2 acres and planning has been secured for phase 1. The Curtain Hotel 45 Curtain Road The hotel is being developed by Gansevoort Hotel Group and will comprise 120 guest rooms, a rooftop pool and lounge and over 6,000 sq ft of meeting and event space. The hotel is due to open in 2017. Curtain Road The Stage, by Galliard Homes, will be a new mixed-use development in the heart of Shoreditch consisting of 400,00 sq ft of offices, 412 apartments set within a 37 storey tower, leisure space and retail. Further information is available at thestageshoreditch.com Shoreditch Village Shoreditch High Street A 150,000 sq ft mixed-use and public realm scheme situated opposite the iconic Tea Building on Shoreditch high Street. Phase one is already under construction with phase two, 50,000 sq ft of offices and retail space currently in for planning. 5

hoxton st Situation The property is situated on the west side of Shoreditch High Street, opposite Redchurch Street, a busy thoroughfare running from Hoxton in the north to the City in the south. It is bounded by Great Eastern Street and Old Street to form what has been historically known as the Shoreditch Triangle comprising the main hub of activity in the area. The world famous TEA building and Shoreditch House members club is located directly opposite the property, with Shoreditch High Street Station, The Goodsyard and Highgate Holding s 200-room hotel development only a short distance away. EW N RD HAGGERSTON CITY RD OLD ST Murray Grove OLD STREET CITY RD pitfield st OLD ST Great Eastern St OLD STREET hoxton Kingsland Rd Bateman s Row Anning st New Inn Yard SHOREDITCH HIGH ST Boundary St Hackney Rd Redchurch St Bethnal green A1209 Columbia rd BETHNAL GREEN RD A501 Moorgate London Wall Liverpool street Curtain road A10 Bishopsgate Shoreditch high street brushfield st Middlesex st Quaker St Commercial St Hanbury st Rd Whitechapel A11 Whitechapel Aldgate EAST Aldgate Whitechapel A13 Commercial Road 6

Existing DESCRIPTION AND ACCOMMODATION The property comprises a former petrol filling station which is currently being used as a street food market. The site area is approximately 0.07 hectares (0.17 acres). TENANCY The property is let to La Brea Limited for a term of five years from 1 st April 2014, expiring on 31 st March 2019, subject to a rolling mutual break option on one month s written notice. The current rent is 100,000 per annum. Bateman s Row ANNING STREET Shoreditch High Street A10 Shoreditch High Street BOUNDARY PASS BOUNDARY STREET NAVARRE STREET Old Nichol StREET TENURE The property is held long leasehold upon the following terms: Term 150 years from completion. The lease is excluded from the security of tenure and compensation provisions of sections 24-28 of the Landlord and Tenant Act 1954 (as amended). Initial Rent 200,000 per annum. Rent Reviews Five yearly upwards only rent reviews to the highest of: 1. 10% of open market rent (assuming completed development); 2. RPI linked increase; or 3. 110% of previous passing rent. Permitted Use Within classes A, B or D2 of the Town and Country Planning (Use Classes) Order 1987 only. NEW INN YARD A10 Alienation Assignment or charging of part prohibited. Shoreditch High Street REDCHURCH STREET Repair Full Repairing and Insuring terms. HOLYWELL LANE A1209 BETHNAL GREEN ROAD Overage If further planning permission is obtained and implemented at any time during the term increasing the gross internal area of the premises from that authorised by the 2016 planning consent, an overage is payable at 300 (increasing in line with RPI) per square foot on the increased area. Plan not to scale, indicative only. A copy of the headlease is available on the electronic data room. 7

Consented SCHEME The scheme was drawn up by Kyson Architects to provide a modern interpretation of the local tradition of the Victorian warehouse that characterises the South Shoreditch Conservation Area. The architect proposes to construct a six storey plus basement mixed use scheme to comprise a restaurant over basement and ground floors with office accommodation over 1 st - 5 th floors. To the upper floors the main mass of the building is stepped inwards to create a roof terrace and pavilion. 8

PLANNING Basement Ground N The site benefits from detailed planning permission, subject to a S106 agreement, for the following: Demolition of existing petrol filling station and convenience store Erection of a six storey plus basement mixed use development 9,347 sq ft (868.4 sq m) of A3 accommodation over basement and ground floors 31,047 sq ft (2,884.4 sq m) of B1 office accommodation over the 1 st 5 th floors Secure bicycle storage Typical Upper - First, Second & Third Fourth Fifth N Floor plans not to scale, indicative only. 9

Schedule of Accommodation Floor Demise GIA (sq ft) GIA (sq m) NIA (sq ft) NIA (sq m) Basement Restaurant 2,094 194.5 Restaurant Refuse 309 28.7 Restaurant Cycle 152 14.1 Restaurant WC 439 40.8 Restaurant Storage 57 5.3 Restaurant Kitchen 1,182 109.8 Basement Sub Total 6,663 619.0 4,232 393.2 Ground Floor Restaurant 4,765 442.7 Office Reception 811 75.3 Ground Floor Sub Total 6,975 648.0 5,576 518.0 First Floor Office 3,498 325.0 Office(Affordable Workspace) 2,577 239.4 Kitchen 80 7.4 Storage 45 4.2 First Floor Sub Total 6,814 633.0 6,200 576.0 Second Floor Office 6,075 564.4 Kitchen 80 7.4 Storage 45 4.2 Second Floor Sub Total 6,814 633.0 6,200 576.0 Third Floor Office 6,075 564.4 Kitchen 80 7.4 Storage 45 4.2 Third Floor Sub Total 6,814 633.0 6,200 576.0 Fourth Floor Office 4,317 401.1 Kitchen 80 7.4 Storage 45 4.2 Terrace 409 38 Fourth Floor Sub Total 5,065 469.0 4,442 412.7 Fifth Floor Office 3,243 301.3 Kitchen 80 7.4 Storage 27 2.5 Terrace 999 92.8 Fifth Floor Sub Total 3,974 368.0 3,350 311.2 Development Total 43,118 4,003.0 36,200 3,363.1 Note: Affordable workspace is to be let at a rent that does not exceed 80% of Open Market Rent. The total areas exclude the terraces. 10

Restaurant Pre-let to Alan Yau An agreement for lease has been entered into for the basement and ground floor restaurant with Babaji Pide Limited (Alan Yau) for a term of 24 years and 11 months. The lease is subject to five yearly upward only rent reviews to the higher of open market rent or RPI capped at 4% per annum compounded and collared at 2% per annum compounded. The initial rent is 550,000 per annum. The landlord has an option to terminate the agreement for lease on 14th March 2017 subject to 10 working days notice and a penalty payment of 250,000. Alan Yau OBE is one of the most distinguished restauranteurs in the UK and around the world. Having founded Wagamama in 1992, Busaba Eathai in 1999, Hakkasan in 2001 and Yauatcha in 2004. Yau s newest restaurants include Park Chinois, Princi, Duck+Rice & Babaji. 11

OPPORTUNITY The property provides a rare opportunity to develop a high end mixed use scheme on one of the last remaining brownfield sites in Shoreditch. The scheme s massing is considered to be conservative when compared with other buildings in the immediate area. We believe there maybe an opportunity to improve the current consent and obtain additional area subject to planning. Section 106 and Mayrol CIL Payments Current Section 106 Contributions (Indexed Linked) include: Crossrail Contribution 350,480 Highway Contribution 21,850 Town Centre Contribution 21,675 Ways into Work Contribution 136,042 Ways into Work Construction Phase Contribution 18,197 Ways into Work Commercial Phase Contribution 117,845 Total 666,089 A Mayoral CIL payment of 131,320 is required on commencement of development. A Hackney CIL payment of 200,620 is required on commencement of development. In addition, there are Section 106 obligations relating to Affordable Workspace, Travel Plan and Highways Works. CAPITAL ALLOWANCES There are no capital allowances available. VALUE ADDED TAX The property has been elected for VAT purposes and therefore VAT will be payable upon the purchase price. 12

SHOREDITCH OFFICE MARKET Central London take-up remained at a high level in the first half of 2016, with 2.6 million sq ft let across the City, West End and Docklands markets. The City saw 1.3 million sq ft let, underpinned by large lettings to several financial institutions, with 830,000 sq ft in the West End, led by activity in the King s Cross and Paddington markets. Shoreditch is now considered the established centre for all emerging technical, media and creative agencies. These businesses vary in size and range from start-ups through to larger global companies. Prime Shoreditch office rents are currently in the region of 65.00-72.50 per sq ft and 168-178 Shoreditch High Street is an opportunity to deliver a newly refurbished development to take advantage of Shoreditch s future rental growth. There is currently a lack of office accommodation in the area, which is continuing to increase rents and reduce tenant incentives. The local office market is expected to improve further as a number of larger high quality developments are being undertaken. Traditionally regarded as a low cost property option for media and the creative industries that have been priced out of areas such as Soho and Covent Garden, Shoreditch is rapidly becoming a mature market. Demand from technology, media and creative businesses has, over the last few years, powered the rise in office rents. RENTAL COMPARABLES Address Tenant Date Area (SQ FT) Rent (psf) 15-16 Dufferin Street Starsupply Commodity Brokers Q2 2016 1,352 72.50 White Collar Factory, Old Street Roundabout Spark 44 Q2 2016 22,500 67.50 The Steward Building, Brushfield Street Bacardi Martini Q1 2016 9,564 70.00 Alphabeta, 2 Worship Street W20 Q1 2016 8,317 67.50 The Bower, Old Street Roundabout Stripe Q4 2015 12,240 67.50 99 Clifton Street R/GA Media Group Q4 2015 44,448 65.00 13

DATA ROOM An electronic data room is available for the property. For access to the data room please contact Springer Nicolas. PROPOSAL Offers are invited, subject to contract, for the benefit of the long leasehold interest. Further Information Ryan Springer Greg Meller For further information please do not hesitate to contact: ryan@springernicolas.co.uk T 020 3667 5050 M 07932 792 531 greg@springernicolas.co.uk T 020 3667 5050 M 07811 465 977 WWW.SPRINGERNICOLAS.CO.UK Misrepresentation Act 1967. Messrs Springer Nicolas for themselves and for the vendors or lessors of this property for whom they act, give notice that: (i) these particulars are a general outline only, for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract; (ii) Messrs Springer Nicolas cannot guarantee the accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation, and other details contained herein, and prospective purchasers or tenants must not rely on them as statements of fact or representations, and must satisfy themselves as to their accuracy; (iii) no employee of Messrs Springer Nicolas has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property; (iv) rents, prices, premiums and service charge quoted in these particulars may be subject to VAT in addition; and (v) Messrs Springer Nicolas will not be liable, in negligence or otherwise, for any loss arising from the use of these particulars. (vi)the reference to any plant, machinery, equipment, services, fixtures or fittings at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective purchasers/tenants should satisfy themselves as to the fitness of such items for their requirements. 14