21 WORSHIP STREET A PRIME INVESTMENT OPPORTUNITY LOCATED WHERE THE CITY OF LONDON MEETS LONDON S MOST VIBRANT SUB-MARKET
EXECUTIVE SUMMARY Freehold Prime location where the City of London meets London s most vibrant sub-market, Shoreditch Located a short distance from Old Street Roundabout, Amazon s London HQ and the Broadgate Estate Crossrail at Liverpool Street/Moorgate located within 500 metres Newly refurbished attractive period property providing approximately 1,195 sq m (12,864 sq ft) of net internal office and ancillary accommodation Fully let to Business Cube Management Solutions Ltd and Perivan Ltd, with weighted income of approximately 9.9 years, or 4.9 years to the earliest determination Passing rent currently 747,078 per annum equating to 58.08 per sq ft overall Offers sought in excess of 13,000,000 subject to contract and exclusive of VAT A purchase at this level reflects an attractive net initial yield of 5.38% and a capital value of 1,011 per sq ft, assuming purchaser s costs of 6.72%
21 WORSHIP STREET THE CITY LIVERPOOL STREET BANK BISHOPSGATE GOODSYARD PRINCIPAL PLACE THE BROADGATE ESTATE MOORGATE ARNOLD THE STAGE FINSBURY SQUARE GOOGLE CAMPUS ALPHABETA EPWORTH HOUSE HAC OLD STREET OLD STREET ROUNDABOUT WHITE COLLAR FACTORY
BARBICAN ST PAUL'S CITY ROAD OLD STREET BARBICAN CENTRE BARBICAN BATH STREET LONDON WALL MOORGATE OLD STREET CITY ROAD TABERNACLE ST 21 WORSHIP STREET CITY OF LONDON LIVERPOOL STREET GREAT EASTERN STREET APPOLD S TREET BISHO PSGATE HIGH STREET HIGH STREET SPITALFIELDS MARKET ALDGATE EAST LOCATION 21 Worship Street is situated on the north side of Worship Street in Shoreditch, strategically located at the boundary with the City of London. The Tech City cluster surrounding Old Street Roundabout is located a short walk to the north, while Amazon s 525,000 sq ft London headquarters and the world renowned Broadgate Estate are located just a few hundred metres to the east. The property is located immediately opposite the award winning Alphabeta, one of the most successful buildings of recent times. Like Alphabeta, 21 Worship Street benefits from being in a location which attracts occupiers from both the financial sector associated with the City market and the booming creative sector attracted to Shoreditch. The location is set to improve further upon completion of Crossrail in 2018. The Liverpool Street and Moorgate entrances are approximately a 5 minute walk from the property and will provide access to Bond Street and Canary Wharf within 7 minutes and Heathrow within 32 minutes. Strong occupational demand for Shoreditch has ensured it is one of London s fastest growing sub-markets and headline rents are now on a par with, and in some cases have exceeded those being achieved within the traditional City of London core. Such has been the demand from the creative industries for Shoreditch; it has become commonplace for large scale developments to 100% pre-let prior to practical completion.
CONNECTIVITY 21 Worship Street benefits from excellent transport connectivity. ELIZABETH LINE (CROSSRAIL) Station Old Street Moorgate Liverpool Street Shoreditch High Street Distance (Direction) 355 metres (North) 400 metres (South) 475 metres (South East) 625 metres (North East) Services Northern Underground and Mainline Rail services Northern, Hammersmith & City, Circle and Metropolitan Underground and Mainline Rail services Central, Hammersmith & City, Circle and Metropolitan Underground and Mainline Rail services London Overground services Crossrail is Europe s largest infrastructure project and is set to transform London s transport network. It is estimated that the new rail line will bring an extra 1.5 million people to within 45 minutes of Central London. Services are due to commence in 2018 with Liverpool Street set to become one of the key hubs which is located approximately 500 metres from 21 Worship Street. Liverpool Street Crossrail will provide direct links to the West End, Canary Wharf and London Heathrow. Liverpool Crossrail Station CGI ELIZABETH LINE ROUTE MAP Reading 61 mins Twyford Maidenhead 48 mins Shenfield 40 mins Brentwood Harold Wood GideaPark Taplow Burnham Slough 39 mins Langley LIVERPOOL STREET 27 mins 18 mins 10 mins 7 mins 5 mins 2 mins 7 mins West Hayes & Ealing Bond Tottenham Drayton Harlington Hanwell Broadway Paddington Street Court Road Farringdon Whitechapel Stratford Iver Southall West Acton Ealing Main Line Maryland Forest Gate Manor Park 14 mins Romford 27 mins Chadwell Heath Goodmayes Seven Kings Ilford Heathrow Terminals 2,3 34 mins CanaryWharf 6 mins Heathrow Terminal 4 Custom House for ExCeL Woolwich AbbeyWood 18 mins Approximate journey times from Liverpool Street in mins
LOCAL DEVELOPMENTS Shoreditch is one of London s fastest growing submarkets and has been subject to unprecedented development activity in recent years. This is largely being driven by occupational demand from rapidly growing tenants within the tech and creative sectors which have made Shoreditch the international tech hub that it is today. With one of the lowest vacancy rates across Central London, developers are competing to capture this strong occupational demand. ARNOLD WHITE COLLAR FACTORY 1 MARK SQUARE ALPHABETA PRINCIPAL PLACE THE BOWER EPWORTH HOUSE C SPACE 1 FAIRCHILD STREET THE STAGE TABERNACLE COURT FINSBURY SQUARE OLD STREET BARBICAN CENTRE BARBICAN CITY ROAD BATH STREET LONDON WALL MOORGATE OLD STREET CITY ROAD TA BERNACLE ST 21 WORSHIP ST GREAT EASTERN STREET APPOLD LIVERPOOL STREET ST REET BISHO PSGATE HIGH ST HIGH STREET SPITALFIELDS MARKET
ARNOLD, GREAT EASTERN STREET, EC2 The Property Trust 75,000 sq ft Completion Q1 2018 PRINCIPAL PLACE, EC2 ENPAM 600,000 sq ft 86% pre-let to Amazon and 273 residential units Completion Q1 2018 1 FAIRCHILD STREET, EC2 Highgate Holdings 140,448 sq ft and 200 bed hotel Completion 2020 or beyond WHITE COLLAR FACTORY, EC2 Derwent London 237,000 sq ft 80% pre-let to various tenants Completion Q1 2017 THE BOWER, EC2 Helical Plc 122,000 sq ft (the Warehouse) and 18,000 sq ft (the Studio) The Warehouse 100% let Completion Q3 2017 THE STAGE, EC2 Cain Hoy Enterprises 220,000 sq ft and 412 residential units Completion Q2 2019 1 MARK SQUARE,, EC2 EPIC 70,300 sq ft Subject to Planning EPWORTH HOUSE, 25 CITY ROAD EC2 London & Regional 70,000 sq ft Completion Q1 2018 TABERNACLE COURT, TABERNACLE STREET, EC2 The Estate Office 100,000 sq ft Completion 2020 or beyond ALPHABETA,, EC2 Sinar Mas Land 244,661 sq ft Completed Q4 2015 C SPACE, 37-45 CITY ROAD, EC1Y 62,000 sq ft Helical Plc 75% pre-let to Mullins Lowe Completed FINSBURY SQUARE, EC2 Hondo Enterprises 40,000 sq ft Subject to Planning
DESCRIPTION 21 Worship Street underwent a comprehensive refurbishment in 2016 to provide approximately 1,195 sq m (12,864 sq ft) of net internal office and ancillary accommodation arranged over lower ground, ground and five upper floors. Local Shoreditch/ Clerkenwell Architects GPAD have designed a contemporary space with exposed services, embracing the original features of the property. The offices are accessed from the northern side of Worship Street via a newly modelled entrance lobby. Typical office floors are in the order of 1,900 sq ft and benefit from exceptional floor to ceiling heights of typically 2.90 metres to the lowest point. The small floors are regular in shape and receive high levels of natural light from the front windows as well as the rear light well.
SPECIFICATION The building specification can be summarised as follows: New exposed VRF air-conditioning system Typical floor to ceiling heights of over 2.9 metres to the lowest point Fully accessible metal tiled raised floors with 100mm void New 8-person passenger lift (630 kilogram loading capacity) New communal shower facilities at 1st floor level New suspended lighting New male and female WCs on each floor (Superloos) Disabled WC at ground floor Off street bicycle storage Double glazing Newly modelled entrance lobby 5th floor roof terrace
ACCOMMODATION The property has been independently measured by Sterling Temple in accordance with the RICS Code of Measuring Practice 6th Edition and International Measuring Standard IPMS 3. The survey is assignable to a purchaser and a Duty of Care can be provided. Floor Use NIA sq ft NIA sq m IPMS sq ft IPMS sq m GIA sq ft GIA sq m 5th Office 1,587 147.4 1,592 147.9 2,067 192.0 4th Office 1,887 175.3 1,889 175.5 2,370 220.2 3rd Office 1,908 177.3 1,910 177.4 2,383 221.4 2nd Office 1,901 176.6 1,903 176.8 2,379 221.0 1st Office 1,897 176.2 1,899 176.4 2,368 220.0 G Office 1,728 160.5 1,729 160.6 2,513 233.5 LG Office 1,802 167.4 1,802 167.4 2,468 229.3 Total 12,864 * 1,195 12,723 1,182 16,549 1,537.4 * Includes reception area comprising 14.3 sq m (154 sq ft) GIA taken from a previous measured survey.
FLOOR PLANS GROUND FLOOR FIFTH FLOOR Balcony Lightwell Worship Street Lobby Entrance Worship Street Entrance Main Entrance Lift WC Lift Entrance to Bike Store Disabled WC WC WC LOWER GROUND FLOOR TYPICAL UPPER FLOOR Lightwell Worship Street Entrance Lobby Entrance Worship Street Entrance Lift WC Lift WC Bike Storage WC N Not to scale. For indicative purposes only.
1 21 WORSHIP STREET TENURE & SITE BONHILL STREET The property is held Freehold and is registered at HM Land Registry under title number NGL100442. Hotel 4 to 14 Govt Offices 4 to 8 1 to 3 Chy 9 11 3 9 7 CR TENANCY The property is let to two tenants on Full Repairing and Insuring terms, to Business Cube Management Solutions Ltd and Perivan Ltd, with the income split approximately 63% and 37% respectively. Both leases are for 10 year terms, with breaks in the fifth year providing a weighted income of approximately 9.9 years, or 4.9 years to the earliest determination. 7 2a 1 to 3 Henry Thomas House 5 to 11 13 to 17 21 25 WORSHIP STREET 20 to 26 28 31 to 41 30 34 Ciena House 43 Boro Const and LB Bdy 7.5m 69 TENANCY SCHEDULE Not to scale. For identification purposes only. This plan is based upon on Ordnance Survey Map with the sanction of the controller of HM Stationary Office. Crown Copyright reserved. Tenant Floor Use Area Lease Start Lease Rent Break Rent sq ft sq m Expiry Review Option PAX PSF Comments Business Cube Management Solutions Ltd 5th Offices 1,587 147.43 4th Offices 1,887 175.30 3rd Offices 1,908 177.25 2nd Offices 1,901 176.60 03/01/2017 02/01/2027 03/01/2022 03/01/2022 473,395 65.00 Tenant only break option subject to 6 months notice. 3 months rent deposit held. Rent reviews 5 yearly upwards only. Lease held inside the security of tenure provisions of the Landlord & Tenant Act 1954. Perivan Ltd 1st Offices 1,897 176.23 Ground Offices 1,728 160.53 Lower Ground Offices 1,802 167.41 07/10/2016 06/10/2026 07/10/2021 07/10/2021 273,682 50.43 Mutual break option subject to 6 months notice. Rent reviews 5 yearly upwards only. Lease held inside the security of tenure provisions of the Landlord & Tenant Act 1954. Ground Reception 154 * 14.31 TOTAL 12,864 1,195 747,078 58.08 * Reception area is Gross Internal (Measurement taken from historic survey).
COVENANT INFORMATION PERIVAN LTD (Company number 09028839) Perivan is a printing company specialising in the financial services market, founded in 1937. Originally part of the Williams Lea Group, the business was acquired by the present management and staff in 2003 with the aim of building the company s financial strength, broadening its offering and improving its services. The company currently has 70 employees, with its sole office at 21 Worship Street. The company is currently debt free with substantial cash balances. It has consistently delivered a significant profit with the latest figures from July 2015 demonstrating a turnover of 10.21 million, a pre-tax profit of 766,000, a tangible net worth of 1.32 million and net current assets of 491,000. BUSINESS CUBE MANAGEMENT SOLUTIONS LTD (Company number 07594193) Business Cube was founded in 2012 with the objective of creating a business centre community in which tenants can form rewarding business relationships with each other thereby creating a lucrative and inspiring working environment. The company currently has six business centres including three in Shoreditch/Clerkenwell, one in Russell Square and two out-of-town in High Wycombe and Reigate. 21 Worship Street is their 6th business centre and is the flagship. Business Cube currently has an occupancy rate of approximately 95% across its portfolio (excluding 21 Worship Street) and has already secured a tenant for the 5th floor at 21 Worship within 2 weeks of opening. We are informed that the latest preliminary accounts for Business Cube Management Solutions Ltd show a turnover of 2.8 million, a pre-tax profit of 497,615, tangible assets of 588,263 and a net worth of 571,495.
FURTHER INFORMATION PLANNING The property is located in The London Borough of Islington. It is not listed, nor is it located within a conservation area. VAT The property is elected for VAT and VAT will therefore be payable on the purchase price. It is anticipated that the transaction will be treated as a Transfer of a Going Concern. INVESTMENT PROPOSAL We are instructed to seek offers in excess of 13,000,000 (Thirteen Million Pounds) subject to contract and exclusive of VAT for our client s Freehold interest in the property, assuming purchaser s costs of 6.72%. A purchase at this level reflects an attractive net initial yield of 5.38% and a capital value of 1,011 per sq ft. EPC The property has an EPC rating of B. A copy of the certificate is available upon request. DATA ROOM For further information please visit: WWW.21WORSHIPSTREET.COM CONTACT Matt Millman 020 7588 4433 matthew.millman@allsop.co.uk Jack Sawbridge 020 7588 4433 jack.sawbridge@allsop.co.uk Jonathan Ruback 020 7588 4433 jonathan.ruback@allsop.co.uk DISCLAIMER: Allsop LLP on its behalf and for the Vendors or Lessors of this property, whose Agents they are, give notice that: These particulars are set out as a general outline only for guidance to intending Purchasers or Lessees, and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Allsop LLP has any authority to make any representation or warranty whatsoever in relation to this property. Unless otherwise stated, all prices and rents are quoted exclusive of VAT. January 2017.