An outstanding office investment opportunity

An outstanding office investment opportunity

The Grimaldi Building 154a Pentonville Road KING S CROSS, London N1 15,636 sq ft (1,452.6 sq m) 13 onsite parking spaces

Investment Summary: Situated on the north side of Pentonville Road, equidistant between Angel and King s Cross/ St Pancras underground and mainline stations. A highly prominent and characterful selfcontained office building constructed from new in 1991 and comprehensively refurbished in 2012 to an excellent standard. The property extends to a net internal area of 15,636 sq ft and has the benefit of 13 onsite car parking spaces. Single let to Eviivo Limited on an FR&I lease for a term of 10 years from 30th March 2012, subject to an upwards only rent review and a tenants option to break at the 5th year. Current passing rent of 480,000 pax devaluing to 30.70 psf overall. Prime rents in King s Cross are approaching 50 psf and as such we believe that the property has strong reversionary potential. a new head lease for a term of 150 years from 6th March 2013. The current head rent payable is 32,000 per annum rising from the 2nd January 2014 to 60,000 per annum, being 12.50% of either rents received or open market rental value, and will be reviewable upwards only on a 5 yearly basis in line with RPI. Current net passing rent of 448,000 pax. We have been instructed to seek offers in excess of 6,500,000 subject to contract and exclusive of VAT for the benefit of our clients long leasehold interest. A purchase at this level would reflect a capital value of 416 psf and the following yield profile after the deduction of the ground rent and standard purchaser s costs of 5.80%: 6.51% Net Initial Yield 7.55% Reversionary Yield* * assuming our opinion on ERV of 30 psf on lower ground and 40 psf on ground to third floors, after the deduction of the head rent payable at 12.50% and standard purchaser¹s costs of 5.80%.

Location: The building is located in the centre of Pentonville Road equidistant between Upper Street Islington and King s Cross The property is located in the London Borough of Camden, on the edge of the King s Cross Growth Area. The King s Cross area of London has been subject to extensive regeneration in recent years, with the relocation of the Eurostar terminal to St Pancras International and most notably the substantial new development at King s Cross Central. King s Cross Central is a 67 acre development site which, when complete, will provide 8 million sq ft of mixed use accommodation to include 23 office buildings, up to 2,000 homes and serviced apartments, 650 student accommodation units, 500,000 sq ft of retail space and 10 new public parks and squares, as well as theatres, cinemas, hotels and up to 50 arts and music venues. The property is located in the centre of the Pentonville Road, equidistant between Upper Street Islington and King s Cross, the immediate surrounds benefit from a variety of restaurants, coffee shops and bars which enhance a thriving working environment. Sat Nav: n1 9pe ROYAL COLLEGE ST CAMDEN ST TOTTENHAM COURT ROAD Goodge Street CAMDEN RD ST PANCRAS W AY EVERSHOLT STREET Euston EUSTON ROAD Tottenham Court Road GOWER STREET MIDLAND RD YORK WAY TAVISTOCK SQUARE H IG H Caledonian Park GOODSWAY King s Cross Inter l King s Cross St Pancras JUDD ST HUNTER ST YORK WAY NORTHAMPTON ROW CALEDONIA N R D Coram s Fields Russell Square G RAY S INN RD BLOOMSBURY WAY THEOBALDS RD THE DRIVE Holborn Caledonian Road & Barnsbury FARRI N GDON RD ROSEBURY AVE HOLBORN HIGH HOLBORN LIVERPOOL ROAD PENTONVILLE ROAD Chancery Lane Bernard Park HATTON GARDEN Highbury & Islington LIVERPOOL ROAD ST JOHN ST SKINN ROSEBU RY AVENUE FARRINGDON RD UPPER STREET UPPER STREET Angel GOSWELL RD ER ST A1 CLERKENWELL RD ST JOHN ST CANNO N BURY RD ISLINGTON GREEN SPENCER ST Farringdon Essex Road CITY ROAD GOSWELL RD Barbican CHARTERHOUSE ST ALDERSGATE ST LEVER ST EAGLE WHARF RD SHEPHERDESS WALK BATH ST BURNHILL ROW SMITHFIELD BEECH ST HOLBORN VIADUCT ST PAUL S ROAD NEW NORTH RD OLD STREET ESSEX ROAD Old St Moorgate LONDON WALL NEW NORTH RD EAST RD CITY RD MOORGATE

Communications: The property is well served by transport links, being situated within a 5 minute walk of King s Cross St Pancras station, which provides access to mainline national rail services as well as London underground services and the Eurostar terminal. King s Cross St Pancras underground station is served by six London underground lines (the Circle, Hammersmith and City, Metropolitan, Northern, Piccadilly and Victoria lines). Click here to view tube map Eurostar connections from St Pancras International Destination Calais Lille Brussels Paris source: eurostar.com Best time 1 hour 2 mins 1 hour 20 mins 1 hour 55 mins 2 hours 15 mins Overground connections from King s Cross / St Pancras Destination London Luton Airport Gatwick Airport Peterborough Leicester Derby Nottingham Sheffield York Newcastle Best time 20 mins 56 mins 45 mins 1 hour 8 mins 1 hour 31 mins 1 hour 44 mins 2 hours 5 mins 3 hours 21 mins 4 hours 38 mins source: nationalrail.co.uk

Situation: Euston British Library St Pancras Renaissance Hotel The St. Pancras Lighthouse International Block King s Cross The Courtyard Nido Regent Quarter King s Cross Central The property is situated on the north side of Pentonville Road, approximately 0.5 miles from Angel underground station and King s Cross/St Pancras underground and mainline stations, which lie to the east and west respectively. The surrounding area comprises a mix of commercial, residential and retail/leisure uses. The property is bound by a small public park to most elevations.

Site: The site of the property is irregular in shape and has a principal frontage of approximately 119 feet (36 metres) to Pentonville Road. By reference to the Ordnance Survey Extract, we calculate that the total site area for the property is approximately 0.25 acres. Originally on the site was the Church of St James which dated back to 1778 and served as the Pentonville Chapel. From 1854 the church served as the official church of the International Circus Clown s Club and the legendary Joseph Grimaldi was buried in the grounds. Playground WESTON RISE Playground PENTON RISE PENTONVILLE ROAD A501 CUMMING STREET Playground JOSEPH GRIMALDI PARK COLLIER STREET Playground RODNEY STREET DONEGAL STREET

Description: A new office building was rebuilt in 1991 and has recently been comprehensively refurbished to an excellent standard. It is arranged over lower ground, ground and three upper floors and extends to a net internal area of 15,636 sq ft. The specification included carpeted floors, solid ceilings with fluorescent strip lighting units, aluminium framed double glazed windows and air conditioning provided via Mitsubishi ceiling mounted cassettes. The floorplates are relatively column free and all floors (including the lower ground) benefit from good levels of natural daylight from two elevations. There is also a small courtyard accessed from the lower ground floor level. All floors are served by a 13 person, 1,000 kg passenger lift. The property is entered from Pentonville Road via a floating ramp leading to a reception area. The property benefits from car parking for approximately 13 vehicles to the front of the building.

Accommodation: Click on a floorplan to enlarge Schedule of Areas Floor sq ft sq m Lower Ground floor 3,224 299.5 Ground floor 3,136 291.3 First floor 3,676 341.5 Second floor 3,524 327.4 Third floor 2,076 192.9 Total 15,636 1,452.6 Lower Ground floor Ground floor First floor Second floor Third floor

Accommodation: Lower Ground floor Schedule of Areas Floor sq ft sq m Lower Ground floor 3,224 299.5 Ground floor 3,136 291.3 First floor 3,676 341.5 Second floor 3,524 327.4 Third floor 2,076 192.9 Total 15,636 1,452.6

Accommodation: Ground floor Schedule of Areas Floor sq ft sq m Lower Ground floor 3,224 299.5 Ground floor 3,136 291.3 First floor 3,676 341.5 Second floor 3,524 327.4 Third floor 2,076 192.9 Total 15,636 1,452.6

Accommodation: First floor Schedule of Areas Floor sq ft sq m Lower Ground floor 3,224 299.5 Ground floor 3,136 291.3 First floor 3,676 341.5 Second floor 3,524 327.4 Third floor 2,076 192.9 Total 15,636 1,452.6

Accommodation: Second floor Schedule of Areas Floor sq ft sq m Lower Ground floor 3,224 299.5 Ground floor 3,136 291.3 First floor 3,676 341.5 Second floor 3,524 327.4 Third floor 2,076 192.9 Total 15,636 1,452.6

Accommodation: Third floor Schedule of Areas Floor sq ft sq m Lower Ground floor 3,224 299.5 Ground floor 3,136 291.3 First floor 3,676 341.5 Second floor 3,524 327.4 Third floor 2,076 192.9 Total 15,636 1,452.6

PLANNING: The permitted use of the property is within Class B1 (office use). The current statutory plan covering planning policy and development control for the area is the Islington Unitary Development Plan (Saved Policies), which was adopted in June 2002, and the Islington Core Strategy, which was adopted on 17 February 2011. The property is neither Listed nor situated within a Conservation Area. It is designated on the Proposals Map as lying within a Rail Safeguarding Area for Crossrail and within a protected Local Views area. It appears to lie just within the Central Activities Zone boundary.

Tenancy: Tenure: The entire property is let to Eviivo Limited for a term of 10 years from 30 March 2012 on FR & I terms subject to an upward only rent review on the 2nd April 2017. The commencing rental is 480,000 per annum exclusive devaluing to 30.70 psf overall. There is a tenant only break option on 2 April 2017 on 6 months written notice. There is a rent deposit of 280,000. Eviivo Limited s principal activity is the development and licensing of software products, and the provision of revenue management services to independent hotels and guest houses. The property is held long leasehold from the Church Commissioners for England for a term of 150 years from the 6th March 2013. The current head rent payable is 32,000 per annum rising from the 2nd January 2014 to 60,000 per annum (being 12.50% of the passing sublease rent). From the 2nd January 2014 the rent payable is defined in the lease as 12.50% of rents received if the property is let, or if it is occupied by the head tenant, is sublet at below market rent or is vacant then 12.50% of the open market rental value. The ground rent will be reviewable upwards only on a 5 yearly basis in line with RPI. For further information, please visit www.eviivo.com Covenant 2012 2011 Sales Turnover 8.869,000 7,688,594 Profit/(Loss) Before Taxes (416,000) (1,779,648) Shareholders Fund 4,549.130 1,176,169

Market Commentary: The Grimaldi building benefits from being located equidistant from King s Cross and Islington. Both areas have undergone significant transformation in recent years, with some landmark residential, office, and retail led developments having been constructed. These include Argents ongoing redevelopment of King s Cross Central, Manhatten Lofts mixed use development of St. Pancras and Derwent London s Angel Centre scheme. Due to the regeneration of the surrounding area and major works to King s Cross Central, the area has recently, and will continue to attract a large and diverse tenant audience. King s Cross connectivity to the rest of London, the UK and Europe is extensive, boasting 6 tube lines and Eurostar travel links at St Pancras International making it more accessible that any other Central London district. Local occupiers include: Google The Guardian Mcmillan Cancer Support Jamie s Kitchen Expedia Ticketmaster Cancer Research Hummingbird Hoare Lea

Recent investment transactions: 3-7 Ray Street London EC1 Size 18,230 sq ft Price 9,175,000 NIY 4.63% Capital Value 503 psf 83 Clerkenwell Road, London EC1 Size - 19,315 sq ft Price - 9,050,000 NIY - 4.98% Capital Value - 469 psf 7-9 William Road, London NW1 Size 14,797 sq ft Price In excess of asking (I.e. 7.15m) NIY In excess of asking (I.e. 5.75%) Capital Value In excess of asking (I.e. 483 psf) Marcelo House, 236-240 Pentonville Road London N1 Size 19,888 sq ft Price 8,300,000 NIY 6.5% Capital Value 417 psf

Occupational market: 10-4 Pentonville Road, N1 Tenant - Ticketmaster Size - 47,678 sq ft Rent - 40.61 psf Date - Jan 2013 Western Transit Shed, 12-13 Stable Street, London N1 Tenant - Zone Size - 16,972 sq ft Rent - 42.50 psf Date - Sept 2012 The Angel Building, 4013 411 St John Street, EC1 Tenant - Expedia Size - 81,259 sq ft Rent - 42.50 psf Date - July 2011

PRICE: VAT: We have been instructed to seek offers in excess of 6,500,000 subject to contract and exclusive of VAT for the benefit of our clients long leasehold interest. A purchase at this level would reflect a capital value of 416 psf and the following yield profile after the deduction of the ground rent and standard purchaser s costs of 5.80%: The property has been elected for VAT and therefore it is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC). 6.51% Net Initial Yield 7.55% Reversionary Yield* (31st March 2017) * assuming our opinion on ERV of 30 psf on lower ground and 40 psf on ground to third floors, after the deduction of the head rent payable at 12.50% and standard purchaser¹s costs of 5.80%.

CONTACT: David Berko davidberko@pilcherhershman.co.uk Adam Velleman adam@burlingtonpartners.com David Silver david@burlingtonpartners.com Misrepresentation Act Whilst every effort has been made to ensure accuracy, no responsibility is taken for any error, omission or mis-statement in these particulars which do not constitute an offer or contract. no representation or warranty whatever is made or given either during negotiations or in particular by the vendor, lessors or agents Pilcher Hershman & Burlington Partners. All figures are exclusive of rates, service charge, vat and all other outgoings. All floor areas are approximate. Designed and produced by Zest Design & Marketing 020 7079 3090. April 2013 (01082).