A unique consented hotel development opportunity in prime Soho.

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2 2 SUMMARY A unique consented hotel development opportunity in prime Soho. Rare and coveted consented development opportunity in London s creative epi-centre Exceptionally well located on Great Marlborough Street in the heart of Soho Minutes walk from Dean Street Crossrail entrance, Liberty Department Store, Carnaby Street, Oxford Street, Regent Street and the luxury provisions of Mayfair Freehold 2 existing adjoining buildings totalling 44,149 sq ft (4,101.6 sq m) GIA 100 ft (30.4m) of prime frontage and visibility to Great Marlborough Street Rare opportunity provided with vacant possession Not listed Full planning permission for demolition and redevelopment to provide an 118 key lifestyle hotel Totalling 63,400 sq ft GIA, the hotel will provide 2 retail units and a further 6,993 sq ft of Food & Beverage accommodation Continually strong demand from hotel operators seeking to benefit from London s burgeoning tourism market and perceived weakness in Sterling Computer generated image of consented scheme 3

3 HOUSES OF PARLIAMENT ST JAMES S PARK TRAFALGAR SQUARE PICCADILLY CIRCUS GOLDEN SQUARE NEW BOND STREET CARNABY STREET LIBERTY LONDON Mayfair REGENT STREET Soho HANOVER SQUARE CROSSRAIL ENTRANCE WARDOUR STREET GREAT MARLBOROUGH STREET DEAN STREET CROSSRAIL ENTRANCE OXFORD CIRCUS OXFORD STREET 4 5

4 LONDON Front runner of the Global Power City Index 2017 for the sixth consecut ive year, London benefits from an outstanding worldwide reputat ion for its economy, cul tural interact ion, accessibility and research and development. THE LEADING TOURIST DESTINATION Population of over 8.8 million (2016) with an average growth of 1.13% p.a Most diverse population in the world with over 300 languages spoken 19.9 million foreign overnight visitors, up by c.1 million from million tourist arrivals in year to date September 2017 The London Underground accommodates over 1 billion journeys per year Financial capital of the world, ahead of New York Hong Kong and Singapore Greenwich Mean Time London is where the world sets its watch to 4 of the top 10 of most visited museums in the world Number 1 theatre destination in the world with over 300 theatres Over 12,000 restaurants, including 70 Michelin-starred restaurants Transparent legal system The MasterCard 2017 Global Cities Index ranked London as the most popular tourist destination in Europe, second globally to Bangkok 33% of European HQs of Global Fortune 500 companies are based here 6 7

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6 Bordered by the exclusive Mayfair and St James s to the west, the vibrant creativity of Fitzrovia to the north and the internationally renowned entertainment of Covent Garden to the east, Soho has long been considered London s most cosmopolitan village. The influx of modern development and refurbishment of existing buildings has turned Soho into the current hub of London s media world with multiple advertising agencies, television companies, radio studios and postproduction companies making the area home. Soho has benefited from significant investment and redevelopment evolving to become Central London s most creat ive and vibrant quarter

7 Soho has developed a prestigious and long-standing association with London s art and fashion scenes as well as the film and music industries. Soho s eclectic mix of boutiques centred around Carnaby Street complement the world renowned international retail line-up on Oxford Street and Regent Street creating an unrivalled and unique retail experience. Soho has also long been synonymous with London s music scene. From the likes of Chet Baker, Ella Fitzgerald and Nina Simone who appeared at the world-famous Ronnie Scott s to Led Zeppelin, David Bowie and the Rolling Stones who performed at the Marquee Club, music has been the lifeblood of Soho

8 14 The densest concentrat ion of theatres, restaurants, cafés, private clubs, and bars in the Capital, today s modern Soho is the epicentre of cool represent ing the bust ling heart of London. 15

9 OXFORD STREET New Bond Street Grosvenor Street Cavendish Gardens Bond Street Entrance Hanover Mayfair REGENT STREET Oxford Circus Conduit Street 5 Maddox Street Saville Row Great Marlborough Street 5 Kingly Street Carnaby Street 13 8 REGENT STREET Soho Beak Street Poland Street Golden 17 3 OXFORD STREET Tottenham Court Road (Dean Street) Entrance Wardour Street Brewer Street Dean Street SHAFTESBURY AVENUE Rupert Street 4 3 Soho Tottenham Court Road 1 2 Greek Street 2 Lisle Street 6 3 CHARING CROSS ROAD 8 4 SHAFTESBURY AVENUE SHAFTESBURY AVENUE Leicester CHARING CROSS ROAD Berkeley Gardens 12 Piccadilly Circus Members Club Hotels Theatres Restaurants Office Occupiers Retailers The Union 2. The House of St Barnabas 3. Blacks Club 4. The Century Club 5. The Groucho Club 6. Soho House 40 Greek Street 7. Soho House 76 Dean Street 8. Disrepute 9. Milk & Honey 1. Ham Yard Hotel 2. Soho Hotel 3. Kettners Townhouse 4. Z Soho 5. Courthouse Hotel 6. Dean Street Townhouse 7. The Nadler 8. Hazlitt s Hotel 9. W Hotel 10. Mimi s 11. Karma Sanctum Soho 12. Hotel Café Royal 1. Soho Theatre 2. Prince Edward Theatre 3. Queen s Theatre 4. Apollo Theatre 5. Gielgud Theatre 6. Lyric Theatre 7. Piccadilly Theatre 8. Palace Theatre 9. Windmill Theatre 10. London Palladium 1. Quo Vadis 2. L Escargot Club Privé 3. HIX Soho 4. Nopi 5. Bocca Di Lupo 6. Polpo 7. Flat Iron 8. Temper 9. Yauatcha 10. Barrafina 11. Spuntino 12. The Palomar 13. Dishoom 14. Burger & Lobster 15. The Ivy Brasserie 16. Duck & Rice 17. Social Eating House 18. Princi 19. Zelman Meats 20. Chotto Matte 21. Shoryu 22. Bob Ricard 23. Stick n Sushi 1. Framestore 2. Sony Pictures 3. M&C Saatchi 4. 20th Century Fox 5. Apple 6. Dolby Europe Ltd 7. Palantir 8. BBH 9. Och-Ziff 10. Telefonica 11. Twitter 12. Clear Channel 13. Diageo 14. Bauer Media 15. United Agents 1. Paul Smith 2. Axel Arigato 3. Nigel Hall 4. Pretty Green 5. Ben Sherman 6. Liberty London 7. Rapha 8. Woolrich 9. Champion 10. Fiorucci 11. Folk 12. Maharishi 13. Alex Eagle 14. Rag & Bone 15. A.P.C. 16. Le Labo 17. Oliver Spencer 18. Nudie Jeans 19. Filson / Shinola 20. Fred Perry 21. Albam Clothing 17

10 Cavendish Gardens REGENT STREET OXFORD STREET Tottenham Court Road CHARING CRO S ROAD LOCAL DEVELOPMENTS Oxford Circus Soho OXFORD STREET OXFORD STREET & 1 DEAN ST 1 SOHO PLACE Wardour Street New Bond Street Hanover Developer: Great Portland Estates Architect: Lifschutz Davidson Sandilands Scheme: 42,500 sq ft of Grade A offices pre-let to Moneysupermarket.com 47,100 sq ft of prime flagship retail pre-let to Benetton & New Look Completion: 2018 Poland Street Dean Street Developer: Derwent London Architect: AHMM Scheme: 209,000 sq ft of Grade A offices 36,000 sq ft of prime retail 40,000 sq ft 350-seat Nimax theatre Completion: BEAK STREET Developer: Enstar Capital & LandCap Architect: Stiff + Trevillion Scheme: 13,655 sq ft of Grade A offices pre-let to Damien Hirst 5,000 sq ft restaurant pre-let to Sticks n Sushi Completion: 2018 Kingly Street REGENT STREET Carnaby Street Beak Street Golden IlONA ROSE HOUSE CENTRE POINT Developer: Almacantar Architect: Rick Mather Architetc & Conran+Partners Scheme: 82 luxury apartments 48,000 sq ft of prime retail & restaurant accommodation Completion: 2018 Developer: Soho Estates Architect: MATT Architecture & SODA Scheme: 158,453 sq ft of Grade A offices 65,778 sq ft of prime retail & restaurant accommodation 9,750 sq ft NSA of residential accommodation Completion: 2020 Leicester GOLDEN SQUARE Piccadilly Circus 18 Berkeley Gardens Developer: Halamar Architect: Brimelow McSweeney Scheme: 22 luxury apartments with a restaurant and retail at ground floor Completion: BROADWICK STREET Developer: Great Portland Estates Architect: Emrys Architects Scheme: 74,766 sq ft of Grade A offices 17,205 sq ft of prime retail and restaurant accommodation Completion: 2017 WALKERS COURT Developer: Soho Estates Architect: MATT Architecture & SODA Scheme: 15,070 sq ft of Grade A offices 17,502 sq ft of retail 2,702 sq ft of residential 155-seat theatre Completion: 2018 ST GILES CIRCUS Developer: Consolidated Developments Architect: Orms Scheme: 150,000 sq ft mixed-use commercial scheme comprising retail, hotel & residential accommodation & an 800-capacity music venue Completion: 2020 Charing Cross 19

11 A 3 minute walk from the new Dean Street Crossrail entrance providing access to Heathrow in 30 minutes. CONNECTIVITY Travel times from Oxford Circus Underground (minutes) Holborn Victoria King's Cross St. Pancras Waterloo Bank Liverpool St Heathrow Airport City Airport Gatwick Airport Walk times from 54 & Great Marlborough Street (minutes) Oxford Circus Tottenham Court Road Bond Street Piccadilly Circus Crossrail (Elizabeth Line) from Heathrow to Stratford (minutes) Heathrow Paddington Bond Street Tottenham Court Road Farringdon Liverpool St (Stansted) Canary Wharf Stratford Key (London Underground lines) Artist s impression of the proposed Dean Street Crossrail entrance Elizabeth Circle Metropolitan Northern Piccadilly Victoria Hammersmith & City Bakerloo District Central Jubilee Waterloo & City DLR London Overground TFL Rail 20 Travel times are indicative and taken from Transport for London and Google Maps. 21

12 EXISTING ACCOMMODATION 54 & Great Marlborough Street comprise two attractive prominent mixeduse buildings totalling 44,149 sq ft (4,101.6 sq m) GIA with an impressive 30.4m (100ft) frontage to Great Marlborough Street. Both properties are vacant and have been stripped out with all electrics, plumbing and lift machinery removed and subsequently have been de-listed from business rates. 54 GREAT MARLBOROUGH STREET Constructed in the 1950 s, the Property is of concrete framed construction with a brick façade and media style crittal windows. Previously mixed-use offices and showroom arranged over basement, ground and six upper floors totalling 14,933 sq ft (1,387.3 sq m) GIA GREAT MARLBOROUGH STREET Constructed in the 1920 s, the Property is of masonry construction with a Portland stone and brick façade and media style crittal windows Previously used as offices with a self-contained retail unit arranged over basement, ground and five upper floors totalling 29,216 sq ft (2,714.3 sq m) GIA

13 TENURE & TENANCY 100 feet of Prime Central London frontage. Tenure Freehold. Tenancy Vacant possession subject to a substation located on the Lower Ground Floor let to London Power Networks PLC at a passing rent of 250 p.a. The substation can be relocated. Ramillies Street Lancer Court Poland Street Poland Street Great Marlborough Street Noel Street D Arblay Street Key: Freehold Basement vaults included in the title Rear Party Wall Refer to p38 Freeholder: Marlborough House Limited (Target Entity) Outline is for guidance purposes only. The title plan shown is an indicative illustration, parties should rely on their own physical inspection and title investigation with regard to the extent of the Property

14 CONSENTED SCHEME GMS provides an unrivalled opportunity to create Soho s newest, best in class, lifestyle hotel. Planning consent was granted in March 2018 for demolition and redevelopment to provide a new, Eric Parry designed flagship hotel arranged over two basement levels, ground and seven upper floors totalling 63,400 sq ft (5,890 sq m) GIA. The new building will form a high end lifestyle hotel and comprise 2 (class A1) retail units at part ground and part lower ground floors, food and beverage provisions including a signature restaurant and bar at part lower ground and part ground floors and 118 hotel bedrooms arranged over 1st-7th floors. A separate planning consent was granted in April 2016 for a residential led redevelopment to provide 27 luxury apartments above retail and restaurant accommodation. Further information is available in the data room. Consented accommodation Summary Hotel Offering Lifestyle / 4*+ Guest rooms 118 Typical Room Size Suites Retail Units Food & Beverage 22 sq m - 24 sq m 6 suites of c.28 sq m 2x class A1 totalling 5,199 sq ft (483.0 sq m) Bar/Lounge at ground floor level with restaurant over lower ground Food & Beverage area 6,993 sq ft GIA ( sq m) Lifts 2 passenger, 1 service Gross Internal Area 63,400 sq ft (5,890 sq m) GIA Computer generated image of consented scheme 26 27

15 GROUND FLOOR PLAN Great Marlborough Street THE HEART AND SOUL OF THE HOTEL Retail Hotel Entrance Lobby Retail Service A signature F&B offering alongside 2 new retail units will complement and enhance the vibrancy of Soho. Lounge Food & Beverage LOWER GROUND FLOOR PLAN Rooflight Over North Linked by an open stair between floors, the F&B will provide a destination restaurant over lower ground with a themed bar and lounge provision complemented by relaxed informal seating areas suited to both work and leisure at ground floor. Totalling 6,993 sq ft GIA, the current design has 130 covers consented (80 in the restaurant and 50 at the bar) although planning advice is that this can be increased considerably. The bar and lounge areas are designed to interflow with the hotel reception providing a buzzy, lively entrance atmosphere synonymous with Soho. Retail Units Retail Retail Substation Two units fronting Great Marlborough Street are afforded curved landscaped glass shop frontages with discrete entrances to the east and west of hotel entrance. The retail units operate over two levels with flexibility of linkage at lower ground. Hotel Reception / Entrance Set back and offering a generous canopied threshold, the hotel entrance will provide an impressive area to welcome hotel guests and the general public. The hotel front-ofhouse areas open up to the rear and provide reception and foyer leading into the open plan lounge and bar areas. Restaurant Servicing FOH Kitchen Servicing, which is key to the smooth operation of the hotel is via a dedicated service entrance and core to the eastern end of the site. The service lift and core provide connection to all levels with the hotel back-of-house and refuse storage wrapped around the core at ground, lower ground and basement levels. The kitchen, together with other back of house functions, would be located on the lower level providing room service. 28 Back of House 29

16 FIRST TO SIXTH FLOOR PLAN GUEST ROOMS The curved profile of the Great Marlborough Street façade, allows for long views, east and west of the street from the front rooms with deep cills providing a buffer separating the hotel rooms from the street. Quieter rooms at the rear have external brise soleil to offer shading and privacy. The seventh floor is set back from the main façade and offers 6 luxurious larger guest suites to Great Marlborough Street and 4 guest rooms to the rear court. The suites are typically 28m². A large terrace to the front provides opportunity for a landscaped space to the street and with a visual link from the suites. Court North SEVENTH FLOOR PLAN External Plant Typical room arrangement Typical suite arrangement Court External Plant 30 31

17 PROPOSED HOTEL SCHEME Area Schedule Floor Hotel Keys Total NIA sq ft Total NIA sq m Total GIA sq ft Total GIA sq m Seventh 10 2, , Seventh Floor Sixth 18 4, , Sixth Floor Fifth 18 4, , Fourth 18 4, , Fifth Floor Third 18 4, , Fourth Floor Second 18 4, , First 18 4, , Third Floor Ground (all) - 5, , Second Floor Food & Beverage (ground FOH) - 1, , Food & Beverage (ground BOH) First Floor Hotel Bedrooms A1 Retail (ground) - 2, , Lower Ground (all) - 5, , Ground Floor Retail Lounge Food & Beverage (lower ground FOH) - 2, , Food & Beverage (lower ground BOH) A1 Retail (lower ground) - 2, , Lower Ground Floor Retail Restaurant Basement (all) - 2, , Food & Beverage (basement BOH) - 1, , Basement Floor Plant Back of House Total (all building) , ,

18 MARKET SNAPSHOT International visitor numbers and crossborder spending have grown consistently faster than global real GDP since In the MasterCard Global Destination Index 2017, London was again Europe s leader for highest number of international overnight visitors and spend 24 million tourist arrivals in year to date September 2017, London is 2nd worldwide for tourism arrivals after Bangkok Visitor arrivals in YTD Sept 2017 increased by 4.5% in comparison to YTD 2016 International overnight stays account for more than 60% of total overnight stays. The compound growth rate for total visitor arrivals from 2008 to 2016 is 3.0%, and 2.4% for foreign bed nights London s International visitor cross-border spending was estimated at 11.87bn with a total average spend per visit of 623 London is one the most popular tourism destinations in the world fuelling a buoyant and in demand hotel and leisure market. GMS offers an exciting opportunity to capture burgeoning demand and limited new hotel openings in soho. Foreign Exchange Rate Movements The foreign exchange rate for GBP compared to Euro and USD has seen a gradual decline in value, making the United Kingdom a more attractive export market as well as a cheaper destination to travel to Euro ( ) / Dollar ($) Source: Oxford Economics Euro ( ) per Pound 2015 Following the EU referendum this led to an increase in foreign arrivals, bed nights and overall spending. In addition to more inbound travel, travelling abroad has become more expensive for British residents leading to an increase in domestic travel F 2018F USD ($) per Pound 2019F 2020F 2021F 2022F London is one of the best performing hotel markets in Europe, with occupancy averaging over 80% over the past ten years London Luxury Market Trading Performance Visitor Arrivals ( 000) 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 London Tourism Demand Sept YTD 2016 Source: Visit Britain Visitor Arrivals Bed Nights ADR & RevPAR ( ) % 80% 70% 60% 50% 40% 30% 20% 10% 0% Occupancy Source: STR Global ADR RevPAR Occupancy (%) 34 Bed nights increase by 3.3% per annum Sept YTD , , , , , ,000 0 Bed Nights ( 000) The greater London Luxury Segment has a proven track record with an average Rev P AR growth of 5.3% per annum. Greater London Luxury Class 35

19 Proposed Competitive Set Trading Performance The competitive set includes six hotels with a total of 670 rooms, averaging 112 per property. The competitive set was chosen based on location, type of product and facilities offered and provides an indicative benchmark. All of the hotels are considered to be of an upper upscale standard in the lifestyle or boutique category Across all markets, Soho and Fitzrovia are is the best performing in all of Central London after the ultra-luxury precincts of Mayfair and Knightsbridge The competitive set shows RevPAR increases of 8.7% in 2016 and 6.8% in In 2013 a decline in RevPAR was mainly due to a complete rooms refurbishment to one of the participating hotels Supply and Demand London is expecting circa 11,120 new hotel rooms to open by 2019, with much of the pipeline located in East London. A large concentration of expected new rooms are in the economy class segment (c.24%) and upscale segment (45%) leaving a gap in the market for upscale product in Soho. Competitive Set Performance Current Supply (Number of Rooms) Source: STR 36 ADR / RevPAR % 85% 75% 65% 55% 45% 35% Occupancy 20% Economy Class 26% Midscale 9% Luxury Class 45% Upscale 0 25% Source: AM:PM Source: STR Global ADR RevPAR Occupancy (%) Pipeline (Number of Rooms) 24% Economy Class 3% Luxury Class 29% Midscale 45% Upscale Competitive set includes: Café Royal, Firmdale Soho, Dean Street Townhouse, Firmdale Charlotte Street, Sanderson hotel and The London Edition. Source: AM:PM 37

20 CONSIDERATIONS Planning Located within the City of Westminster, the property falls within both the Central Activities Zone (CAZ) and the Soho Conservation Area. Neither building is listed. Rear Party Wall There is a cooperation agreement in place with the owner of the development site behind which will benefit successors in title of the GMS site requiring both parties to act cooperatively in relation to the demolition. The owners can also rely on the Party Wall Act in relation to the demolition to the rear. The boundary wall to the rear can only be built in accordance with the restrictive covenants within the lease of the additional land and interested parties should refer to the documentation within the data room for more information. Data Room Access can be provided upon request. VAT The property is elected for VAT and it is anticipated that any property transaction will be conducted as a Transfer of Going Concern (TOGC). Transaction Structure PROCESS & CONTACTS Process Interested parties will be invited to submit offers for 100% of issued share capital in Marlborough House Limited. A data room will be made available to qualified parties. Please contact JLL or Michael Elliott for access. Contacts For information in relation to this investment opportunity, please contact an advisor: Jonathan Goldman Senior Vice President +44 (0) jonathan.goldman@eu.jll.com Lars Eckmann Associate +44 (0) lars.eckmann@eu.jll.com Mark Shipman Director +44 (0) markshipman@michaelelliott.co.uk Scott Lister Associate Director +44 (0) scottlister@michaelelliott.co.uk Peter Ng Director peterng@michaelelliott.co.uk Soho Marlborough Limited (Isle of Man) 100% Marlborough House Limited (Isle of Man) Target Entity Disclaimer: This Memorandum was prepared by JLL and Michael Elliott based on information supplied by ownership (the Owner ). It contains select information about the Property and the real estate market but does not contain all the information necessary to evaluate the acquisition of the Property. While the information contained in this Memorandum and any other Evaluation Material is believed to be reliable, neither JLL, Michael Elliott nor Owner guarantees its accuracy or completeness. Because of the foregoing and since the Property is being offered on an As Is, Where Is basis, a prospective investor or other party authorized by the prospective investor to use such material solely to facilitate the prospective investor s investigation, must make its independent investigations, projections and conclusions regarding the acquisition of the Property without reliance on this Memorandum or any other Evaluation Material. Although additional Evaluation Material, which may include engineering, environmental or other reports, may be provided to qualified parties as the marketing period proceeds, prospective investors should seek advice from their own attorneys, accountants, engineers and environmental experts. Owner expressly reserves the right, in its sole discretion, to reject any offer to purchase the Property or to terminate any negotiations with any party at any time with or without written notice. Owner shall have no legal commitment or obligations to any prospective investor unless and until a purchase and sale agreement has been fully executed, delivered and approved by Owner and any conditions to Owner s obligations there under have been satisfied or waived. Owner has retained JLL and Michael Elliott as joint brokers and will be responsible for any commission due to JLL and Michael Elliott in connection with a transaction of the Property pursuant to a separate agreement. JLL and Michael Elliott are not authorized to make any representation or agreement on behalf of Owner. Each prospective investor will be responsible for any claims for commissions by any other broker in connection with a sale of the Property if such claims arise from acts of such prospective investor or its broker. This Memorandum is the property of Owner, JLL and Michael Elliott and may be used only by parties approved by Owner, JLL and Michael Elliott.This Memorandum is not to be used for any other purpose or made available to any other party without the prior written consent of JLL or Michael Elliott. Design & print by GQ Design. gqdesign.com 38 39

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