Clerkenwell london ec1

f r e e h o l d o f f i c e i n v e s t m e n t f o r s a l e 3 Clerkenwell london ec1

INVESTMENT SUMMARY 01/03 Prime Victorian Warehouse building within a short walk of Farringdon Station in the heart of Clerkenwell. The building provides high quality office accommodation arranged over lower ground, ground and five per floors. The total floor net internal area of the building equates to 18,230 sq ft (1,693.61 sq m). The entire property is let on a single lease to Experis Limited (formerly Elan Computing Limited) a wholly owned subsidiary of ManpowerGro for a term of just over ten years expiring on 1st April 2020. Highly reversionary passing rent of only 449,250 per annum ( 24.64 psf) overall. There is to be a minimum reversion on the rent review on 25th December 2014 of 539,100 per annum ( 29.57 psf) or open market review whichever is the greater. Offers in excess of 9,000,000 ( 493.69 psf). A price at this level would reflect a net initial yield of 4.72% with a minimum reversion on review to 5.66% after assuming purchasers costs of 5.80%. Based on an ERV of 42.50 psf applied to Ground - 5th floors, 26.50 psf on the lower ground and 15.00 psf on the vaults - this calculates to be 733,785 per annum and therefore would produce a reversionary yield of 7.71% after assuming purchasers costs of 5.80%. Investment Summary 1

Investment Summary 2 3

Investment Summary 3

AERIAL OVERVIEW Smithfield Market Holborn Circus Farringdon Station Chancery Lane Station Hatton Garden Farringdon Road Clerkenwell Road 3-7 RAY STREET Clerkenwell Green Mount Pleasant Exmouth Market Aerial Overview

LOCATION PENTONVILLE ROAD PENTONVILLE ROAD ANGEL 3-7 Ray Street is located within Clerkenwell with Farringdon Underground and National Rail station located approximately 150m to the south. The area has been identified as a hotspot for regeneration with particular focus on the Mount Pleasant Post Office site approximately 200m to the north and also the former Guardian Newspaper building immediately to the north along Farringdon Road. Clerkenwell is certainly one of Central London s most exciting urban villages, where it has become a fashionable residential location as well as a favoured destination for companies in the creative, technology, media and fashion industries. A number of the former industrial buildings have offered residential developers the opportunity to provide loft-living style apartments that is well complemented by an abundance of restaurants, bars and shops. Clerkenwell is also home to some of the best restaurants in London, including; St John, a traditional English restaurant, The Spanish/ Moroccan restaurant Moro, The Bleeding Heart, Zetter Hotel s Bistrot Loubet, the Michelin starred Comptoir Gascon, Café du Marché, Smiths of Smithfield, Burger & Lobster and many others who all contribute to the area s gastronomic reputation. Not to mention hotels, nightclubs, trendy bars and laid back pubs. Many of the warehouses and workshops of Clerkenwell s industrial past remain, but are now home to a myriad of businesses including architectural practices, design showrooms, fashion houses, TV / film production companies, media agencies and hi-tech firms. Local occiers include Ben Sherman, Agent Provocateur, McCann Erickson, Timberland, Espirit, Thomson Reuters, Alexander McQueen, Grey Advertising, Zaha Hadid, Kurt Geiger, Save The Children, Lastminute.com, Vitra, Steelcase and Knoll. Transport links are excellent; Farringdon Station (National Rail, Circle, Hammersmith & City and Metropolitan lines), Chancery Lane (Central line) and King s Cross (National Rail, Eurostar service, Metropolitan, Hammersmith & City, Circle, Northern, Victoria and Piccadilly lines). The Thameslink rail service provides quick and regular services to Brighton via Gatwick airport, and Bedford via Luton Airport. Farringdon Station is also the flagship station for Crossrail link. W KINGSWAY GUILFORD STREET LAMB S CONDUIT STREET GRAY S INN ROAD GRAY S INN ROAD GRAY S INN ROAD THEOBALD S ROAD CLERKENWELL ROAD CLERKENWELL ROAD HIGH HOLBORN HOLBORN SWINTON STREET ACTON STREET JOHN STREET CALTHORPE STREET PHOENIX PLACE KING S CROSS ROAD FARRINGDON ROAD FARRINGDON ROAD CHANCERY LANE AMWELL ROAD ROSEBERY AVENUE ROSEBERY AVENUE CHANCERY LANE BACK HILLRAY ST. HATTON GARDEN EXMOUTH MARKET 3-7 HOLBORN CIRCUS NEW FETTER LANE SKINNER STREET BOWLING GREEN LANE CLERKENWELL GREEN TURNMILL STREET ST ANDREW STREET GOSWELL ROAD ST JOHN STREET ST JOHN STREET FARRINGDON COWCROSS STREET CITY ROAD GOSWELL ROAD CHARTERHOUSE STREET WEST SMITHFIELD BEECH STREET HOLBORN VIADUCT CITY THAMESLINK BARBICAN CENTRAL STREET CHARTERHOUSE SQUARE ALDERSGATE STREET S Location 1

Location 2

CROSSRAIL Transport links within the Clerkenwell area are already very good and will be improved substantially when the Crossrail network begins service in 2018. Crossrail is currently the biggest engineering project in Europe and forms a major part of the Mayor s Transport Strategy. When it opens in 2018, Crossrail will connect 37 stations, including Heathrow airport and Maidenhead in the west with Canary Wharf, Abbey Wood and Shenfield in the east. Crossrail Map MAIDENHEAD TAPLOW BURNHAM SURFACE LINE TUNNEL SLOUGH LANGLEY IVER WEST DRAYTON PORTAL (TUNNEL ENTRANCE AND EXIT HAYES & HARLINGTON HEATHROW AIRPORT SOUTHALL HANWELL WEST EALING EALING BROADWAY ACTON PADDINGTON MAIN LINE BOND STREET FARRINGDON WHITECHAPEL TOTTENHAM COURT ROAD LIVERPOOL STREET STRATFORD MARYLAND CANARY WHARF CUSTOM HOUSE FOREST GATE MANOR PARK WOOLWICH ILFORD ABBEY WOOD GOODMAYES SEVEN KINGS CHADWELL HEATH ROMFORD GIDEA PARK HAROLD WOOD BRENTWOOD SHENFIELD When complete, it is currently planned that over 140 trains per hour will flow through the Farringdon interchange when it becomes a link between Thameslink, Crossrail and London Underground services. Farringdon station is unique in that it will be the only station from which passengers will be able to access all three networks. Farringdon will become one of Britain s busiest train stations, and will be a key link in bringing passengers from outer London to the business hubs in Midtown, the City and Canary Wharf. When works are completed it will be possible to directly connect with three of London s five airports (with single interchange to the other two), also providing a railway connection between both Heathrow and Gatwick. Crossrail

description 3-7 Ray Street is a grand Grade II Listed former Victorian foundry building that is brilliantly situated in the heart of Clerkenwell on the south side of the street that sits between the junctions of Farringdon Road, Back Hill, Herbal Hill and Warner Street. After a substantial refurbishment of the building in 2010, the building provides high quality office accommodation arranged over lower ground, ground and 5 per floors. The floor sizes range from 2,115 sq ft to 2,685 sq ft with a total floor area of 18,230 sq ft. The property has an impressive yellow bricked period façade and has been architecturally designed internally with a specification to include; a contemporary entrance lobby, fantastic floor to ceiling heights, timber wooden flooring, exposed warehouse style features throughout, comfort cooling, central heating, modern suspended office light fittings, excellent natural daylight and an 8 person passenger lift. The property also benefits from a loading bay / car park to the side and rear of the building, where Architects McDowell Bendetti have carried out exploratory studies that demonstrate potential of adding an additional 7,000 sq ft approx of net lettable space (subject to planning). The property is Grade II Listed and sits within the Clerkenwell Green Conservation Area (CA1) within The London Borough of Islington. Under the current legislation, because of its Listed status, vacant office property will have the benefit of 100% relief from paying empty business rates until they become occied again. 1

2

3

lift ACCOMMOdATION Accommodation Schedule Fifth Floor 2,650 Sq ft / 246.19 Sq m N Floor Sq m Sq ft 5th 246.19 2,650 4th 246.19 2,650 3rd 249.44 2,685 2nd 246.66 2,655 1st 240.15 2,585 Ground 244.33 2,630 Lower Ground 196.49 2,115 Vaults 24.15 260 Total 1,693.61 18,230 Plan for indicative purposes only. Not to scale. Subject to contract. 5

Fourth Floor 2,650 Sq ft / 246.19 Sq m N Third Floor 2,685 Sq ft / 249.44 Sq m N lift 1125 1125 Plans for indicative purposes only. Not to scale. 4 3

Second Floor 2,655 Sq ft / 246.66 Sq m N First Floor 2,585 Sq ft / 240.15 Sq m N lift 1140 Plans for indicative purposes only. Not to scale. 2 1

Ground Floor 2,630 Sq ft / 244.33 Sq m N Lower Ground Floor 2,115 Sq ft / 196.49 Sq m N lift 935 Plans for indicative purposes only. Not to scale. G LG

tenancy schedule Demise Tenant Area Sq M Area Sq Ft Rent PSF Rent PA ERV PSF ERV PA Lease Start Rent Review Lease Expiry L&T Act 1954 Comments 5th 246.19 2,650 42.50 112,625.00 4th 246.19 2,650 42.50 112,625.00 3rd 249.44 2,685 42.50 114,112.50 2nd 246.66 2,655 42.50 112,837.50 Experis Limited 24.64 449,250.00 1st 240.15 2,585 42.50 109,862.50 Ground 244.33 2,630 42.50 111,775.00 18/01/2010 25/12/2014 01/04/2020 Inside Half rent for the first 6 months of 6th year. Minimum increase at rent review of 539,100 per annum exclusive. Lower Ground 196.49 2,115 26.50 56,047.50 Vaults 24.15 260 15.00 3,900.00 Total 1,693.61 18,230 24.64 449,250.00 40.25 733,785.00 The above ERV s are based on our opinions as local agents and not to be relied on as a statement of fact. All prospective parties are to make their own investigations to satisfy themselves on any values. Tenancy Schedule

TENANT ProfILE Experis Limited - www.experis.co.uk Company Number 02114287 VAT Number - GB524301001 Experis Limited (formerly Elan Computing Limited) is a wholly owned subsidiary of ManpowerGro. Experis are IT recruitments specialists and are considered to be a global leader in professional resourcing and project based workforce solutions. The Vendor has carried out a Graydon company credit analysis, which suggests Experis Limited to be a rating of 1A that is considered to be a 50m plus financial strength rating based on net worth plus net current assets/liabilities. It currently holds a Risk Category of LOW RISK. Tenant Profile

OCCUPATIONAL MARKET Clerkenwell & Farringdon have a rich diversity of office space, which provides a lower cost alternative to traditional City of London and West End occiers. The location is very active at present, this is partly driven by the surge in interest from TMT sector companies relocating to the area. There is currently a shortage of office accommodation in the area which is driving rents and reducing tenant incentives. The local leasing market is expected to further improve with a number of large high quality local developments being carried out and the arrival of Crossrail in 2018. Please see a selection of leasing transactions mentioned below: Clover House 147-149 Farringdon Road London EC1 Third Floor Size 2,340 sq ft Rent 40.00 per sq ft Date February 2012 109 111 Farringdon Road London EC1 First Floor Size 2,000 sq ft Rent 40.00 per sq ft Date June 2012 The Johnson Building 77 Hatton Garden London EC1 Third Floor Size 22,300 sq ft Rent 42.50 per sq ft Date March 2012 6-7 St Cross Street London EC1 Fifth Floor Size 3,722 sq ft Rent 42.50 per sq ft Date June 2012 Market Commentary 1

INVESTMENT TRANSACTIONS Demand for Central London investments remains strong with UK institutions and private UK and overseas investors the most active buyers in the market. Prime assets in growth locations are most sought after and in the adjacent table we set out details of some recent Clerkenwell / Smithfield investment transactions. 65 Clerkenwell Road London EC1 224-232 St John Street London EC1 Size 12,786 sq ft Tenure Freehold Price 5,500,000 ( 430.16 per sq ft) NIY 3.72% Size 21,709 sq ft Tenure Freehold Price 9,100,000 ( 419.18 per sq ft) NIY 5.84% Farringdon Road Estate 147-149 Farringdon Road London EC1 Size 61,918 sq ft Tenure Freehold Price 25,850,000 ( 417.49 per sq ft) NIY 6.00% 89 Charterhouse Street Smithfield London EC1 Size 7,693 sq ft Tenure Freehold Price 3,700,000 ( 480.96 per sq ft) NIY 4.96% Status Under Offer (in excess of quoting) Market Commentary 2

Tenure, Price AND VAT Tenure Freehold Title Number: 333571 Price Offers for the freehold interest are invited in excess of 9,000,000 ( 493.69 psf). A price at this level would reflect a net initial yield of 4.72% with a minimum reversion on review to 5.66% after assuming purchasers costs of 5.80%. There is to be a minimum reversion on the rent review on 25th December 2014 of 539,100 per annum ( 29.57 psf) or open market review whichever is the greater. Based on an ERV of 42.50 psf applied to Ground 5th floors, 26.50 psf on the lower ground and 15.00 psf on the vaults this calculates to be 733,785 per annum and therefore would produce a reversionary yield of 7.71% after assuming purchasers costs of 5.80%. VAT The property has been elected for VAT. However provided the relevant conditions are satisfied it is envisaged that the sale will be treated as a Transfer of a Going Concern. Tenure, Price & VAT

Further InfORMATION For further information or to arrange a viewing please contact the joint sole letting agents: Ricky Blair rblair@hattonrealestate.co.uk Michael Raibin mraibin@hattonrealestate.co.uk Richard Silver rsilver@hattonrealesate.co.uk David Berko davidberko@pilcherhershman.co.uk David Jackson davidjackson@pilcherhershman.co.uk Energy Performance Certificate Non-Domestic Building Offices - 3-7 Ray Street, London EC1R 3DR Certificate Reference Number: 0090-0132-7739-3070-5092 This certificate shows the energy rating of this building. It indicates the energy efficiency of the building fabric and the heating, ventilation, cooling and lighting systems. The rating is compared to two benchmarks for this type of building: one appropriate for new buildings and one appropriate for existing buildings. There is more advice on how to interpret this information on the Government s website www.communities.gov.uk/epbd. Technical information Main heating fuel: Natural Gas Building Environment: Air Conditioning Total useful floor area (m²): 1692 Building complexity (NOS level): 4 Building emission rate (kgco /m²): 106.94 ² Benchmarks Building similar to this one could have ratings as follows: 30 If newly built 79 If typical of the existing stock Energy Performance Asset Rating More energy efficient Less energy efficient Net zero CO2 emissions For full EPC Rating information visit the website. 152 Misrepresentation Act 1967: Hatton Real Estate and Pilcher Hersham 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 Hatton Real Estate and Pilcher Hersham 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 quote exclusive of VAT. Property Misdescriptions Act 1991: These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. Further Information