61-62 SOUTH AUDLEY STREET MAYFAIR SOUTH AUDLEY STREET MAYFAIR

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3 SUMMARY Prime Mayfair retail investment opportunity; South Audley Street represents one of Mayfair s most exclusive dedicated luxury goods retail pitches; Prominently situated on the prime pitch of South Audley Street, close to its junction with Mount Street; The Grosvenor Estate has recently injected 5 million into the public realm along Mount Street and the surrounding area thereby significantly enhancing its profile, sense of exclusivity and appeal to luxury goods retailers; Comprises two attractive self-contained retail units arranged over lower ground and ground floors totalling 3,392 sq ft (315.1 sq m); The property is held long leasehold from Grosvenor West End Properties until 28th September 2131 (providing circa 114 years unexpired) at a fixed peppercorn rent; Let on two leases providing a weighted average unexpired lease term certain of approximately 10 years; Immediate reversion upon settlement of the one outstanding rent review; South Audley Street currently trades at a significant discount to its surrounding peer pitches, notably approximately 45% less than Mount Street, offering significant future growth and reversionary potential; Offers are invited in excess of 8.9m reflecting a net initial yield of 3.29%, immediately reverting to a estimated yield of 3.50% upon settlement of the outstanding review.

4 BERKLEY SQUARE MOUNT STREET

5 SOUTH MOLTON STREET GROSVENOR SQUARE HYDE PARK OXFORD STREET

6 IS LOCATED IN THE HEART OF LONDON S EXCLUSIVE DISTRICT, AN AREA STEEPED IN HISTORY AND CHARACTERISED BY A MIX OF HIGH END LUXURY RETAIL SHOPS

7 LOCATION Mayfair South Audley Street is located in the heart of London s exclusive Mayfair district, an area steeped in history and characterised by a mix of high end luxury retail shops, exclusive residential and high quality headquarter office buildings. Mayfair acquired its name from the 15 day annual May Fair which took place from 1686 until The circa 275 acre village was originally developed as a fashionable residential district between the Mid-17th and 18th Centuries by a handful of landlords, including the Grosvenor family. Mayfair has an unrivalled leisure offering, which makes it the destination of choice in London for the world s elite business leaders, politicians, celebrities and royalty and is home to a number of Michelin starred restaurants including La Gavroche and Hibiscus as well as luxury five star hotels such as Claridges, The Dorchester and the Connaught, which all lie a short distance from the Property. More importantly Mayfair represents London s, and arguably the world s, premiere luxury retail district. Mayfair is synonymous with luxury and is home to some of the world s most famous haute couture labels, jewellers, luxury goods brands and fine art galleries. With a finite supply of quality retail units and fierce demand from both established and emerging brands, the luxury retail industry has outgrown its traditional home along Bond Street to the surrounds of Mount and South Audley Street amongst others.

8 IS RECOGNISED FOR RENOWNED HOME GROWN BRITISH NAMES SUCH AS JAMES PURDEY & SONS, THE CONNAUGHT HOTEL AND SCOTTS RESTAURANT SITTING ALONGSIDE HIGH END GLOBAL FASHION BRANDS INCLUDING CELINE, DIOR AND MARC JACOBS.

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10 T M A N S Q U A R E S Q U A R E W I G M O R E S T R E E T W I G M O R E S T R E E T O X F O R D S T R E E T BOND STREET S O U T H M O L T O N S T R E E T S Q U A R E H A N O V E R S Q U A R E E N T S T R E E T OXFORD CIRCUS O X F O R D S T R E E T G R E A T M A R L B O R O U G H S T R E E T S O H O S Q U A R E CLARIDGES G R O S V E N O R N E W B O N D S T R E E T C O N D U I T S T R E E T THE WESTBURY G O L D E N S Q U A R E T E S B U R Y E A V S Q U A R E S A V I L E R O W S H A F S O U T H A U D L E Y S T R E E T THE CONNAUGHT M O U N T S T R E E T S Q U A R E B E R K E L E Y A L B E M A R L E S T R E E T D O V E R S T R E E T O L D B O N D S T R E E T PICCADILLY CIRCUS THE DORCHESTER J E R M Y N S T R E E T S T J A M E S S GREEN PARK S Q U A R E South Audley Street connects Grosvenor Square in the north with Curzon Street to the south, interchanging with Mount Street at its midway point. The property is situated on the prime pitch of South Audley Street, on the west side of the street, close to is junction with Mount Street. HYDE PARK CORNER The Grosvenor Estate is a key stakeholder in both South Audley Street, Mount Street and the immediate surrounding area. This, together with the areas's striking architecture, has helped create an added sense of exclusivity with its own unique ambience entirely different to the other main Mayfair luxury retail pitches. ELGRAVIA G R O S V E N O R P L A C E P I C C A D I L L Y Grosvenor s ownership has helped shape the retail mix in a uniquely distinctive fashion and what further differentiates it from its peer pitches. Accordingly whilst there is a strong lean towards luxury goods and fashion the immediate area retains a more village feel with newer brands sitting alongside long-established quintessentially English retailers. C O N S T I T U T I O N H I L L The Grosvenor Estate has recently injected 5 million into the public realm along Mount Street and the surrounding area thereby significantly enhancing its profile, sense of exclusivity and appeal to luxury goods retailers. S T J A M E S S T R E E T P A L L M A L L The immediate area is a recognised top tier luxury destination, anchored by world renowned home grown British names such as James Purdey & Sons, the Connaught Hotel and Scotts restaurant sitting comfortably alongside leading high end global fashion brands including Celine, Dior and Marc Jacobs. T H E M A L L

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13 THE PROPERTY Originally constructed between 1881 and 1892 the property comprises two attractive retail units, both of which are arranged over lower ground and ground floors providing for 3,392 sq ft (315.1 sq m) in total. The upper parts are used as residential form a separate interest owned by the Grosvenor Estate. THE PROPERTY IS SITUATED ON THE PRIME PITCH OF, ON THE WEST SIDE OF THE STREET, CLOSE TO IS JUNCTION WITH MOUNT STREET.

14 AREA SCHEDULE Address Floor Area Zone A Sq ft Sq m Sq ft 61 South Audley Street Ground Basement Sub Total 1, South Audley Street Ground Basement Sub Total 1, Total 3, ,066 TENURE The property is held long leasehold from Grosvenor West End Properties for a term expiring 28th September 2131 (114 years unexpired) at a fixed peppercorn rent per annum for the remainder of the term. TENANCY The Property is fully let on the following basis: Address Tenant NIA Zone A 61 South Audley Street 62 South Audley Street Solland Properties Ltd Term Start Expiry Date Rent Review Passing Rent Rent ITZA 1, /04/16 24/04/31 25/04/21 185, Bamford Ltd 1, /05/07 07/05/22 08/05/17 127, Total 312,500 Comment Outstanding Rent review Sollands A multi-disciplinary design practice founded in 1987 the company specialises in residential architecture and interior design. Sollands have been in occupation since Bamford Bamford, launched in 2006 is a clothing and beauty company. The lease is guaranteed by BHOLDINGS Ltd.

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16 OCCUPATIONAL MARKET COMMENTARY London s West End is the most highly sought after retail destination in the world, led primarily by the luxury brands who maintain a must have presence in the area. South Audley Street currently trades at a significant discount to its surrounding peer pitches, approximately 45% less than Mount Street, offering significant future growth potential moving forwards. The Street also benefits from smaller sized units, which produce much lower and more sustainable global rents, thereby more appealing to retailers. The prime pitch is focused around the Mount Street junction, in which the Property sits. Recent evidence includes: Unit Tenant Date Type Zone A 61 South Audley Street Solland Apr 2016 Lease Renewal South Audley Street Majestic Jun 2016 Rent Review South Audley Street Harry of London Shoes Dec 2015 Lease Renewal South Audley Street Frette Sep 2015 New Letting 310 (Thomas Goode) Thomas Goode Sep 2015 Headlease Review South Audley Street A Pash & Sons Aug 2015 Rent Review 312 The evidence above sits in the back drop of recent Mount Street settlements. The tone for Mount Street is now well established at 565 Zone A, with recent evidence including: Unit Tenant Date Type Zone A 89 Mount Street Georg Jenson Sept 2016 Rent Review Mount Street Marc Jacobs July 2016 Rent Review Mount Street Ralph Lauren Kids May 2016 Rent Review 565

17 INVESTMENT MARKET COMMENTARY The retail investment market remains strong. London is still viewed as a key global gateway city as investors continue to be attracted by its accessibility and transparency and the provision of long leases in a landlord friendly environment, offering relative value compared to most other markets. Prime retail in particular continues to attract strong investor appetite, not least on account of the security of income it typically offers alongside ease of management, but also on account of the more liquid lot sizes that such investments typically entail thereby attracting a much broader audience. This combined with a paucity of investment stock has resulted in prime equivalent yields now standing post Brexit at around 3.00%. Date Address Tenure Lease Price Initial Yield Available Jun-17 Apr-17 Jan-17 6 Neal Street 18 Conduit Street Jermyn Street 140 Great Portland Street Dec 16 9 Argyle Street Freehold vfh (956 years unexpired) at a peppercorn rent vfh (1,904 years unexpired) at a peppercorn rent vfh (999 years unexpired) at a peppercorn rent vfh (999 years unexpired) at a peppercorn rent 6.5 years unexpired to Luxottica 7 years unexpired to Vivienne Westwood 14 years unexpired to Charles Tyrwhitt Shirts 10 years unexpired to Boots UK Ltd Multi let to retail and office tenants with WAULT of 7.1 years 6.925M 3.25% 7.0M 1.67% 10.5M 3.12% 5.38M 3.49% 21.25M 2.81% Dec Maddox Street Freehold May Albemarle Street Freehold Dec Conduit Street vfh (1,874 years unexpired) at a peppercorn rent 14 years unexpired to Holland & Barrett 8 years unexpired to Gissmondi Jewellery 7.5 years unexpired to Lalique 8.50M 3.31% 21.10M 1.91% 13.00M 2.19%

18 THE OPPORTUNITY Under The Grosvenor Estate s curation, South Audley Street, alongside Mount Street, has evolved into one of Mayfair s best recognised and most defined luxury retail pitches. South Audley Street trades at a significant discount to its surrounding peer pitches, including Mount Street, and as such offers significant future reversionary potential. This potential is further enhanced by the provision of typically much smaller units thereby producing much more sustainable global rents. This together with its core Mayfair location, situated in the midst of some of the most expensive and exclusive residential in world, providing immediate access to an exceptionally wealthy client base, further enhances the pitch s appeal to a range of luxury retailers, thereby providing a further platform for future rental growth. PROPOSAL Offers are invited in excess of 8.9m (Eight Million Nine Hundred Thousand Pounds) reflecting a net initial yield of 3.29%, immediately reverting to a estimated yield of 3.50% upon actioning and settlement of the outstanding review. F U RT H E R INFORMATION VAT The property is elected for VAT Planning The property is not listed and falls within the Mayfair Conservation Area.

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20 CONTACTS If you require further information please do not hesitate to contact: Savills Simon Ewart-Perks +44 (0) (0) BCM Andrew Dobson +44 (0) (0) George Gawthrop +44 (0) (0) Important Notice Savills give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. Designed and Produced by Savills Marketing: September 2017