14/16 GREAT PORTLAND STREET GREAT PORTLAND STREET LONDON W1

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1 GREAT PORTLAND STREET LONDON W1 1

2 Investment summary Prime freehold 14/16 mixed GREAT PORTLAND use asset STREET with development potential. Prominently located on Great Portland Street with dual frontage to Market Place/Margaret Court just 3 ft from Oxford Street, Europe s busiest retail street. Attractive mixed use retail and office building. 13,42 sq ft (1, sq m) NIA and 17,715 sq ft (1, sq m) GIA arranged over lower ground, ground and 5 upper floors. Freehold. Multi-let with vacant possession of the offices in January 217 and the whole by June 217. Range of asset management, refurbishment and development opportunities. Suitable for owner occupiers. Full planning permission to reposition the property as a Grade A office and retail building with extended areas and improved amenities. The consented scheme will deliver a total of 5,167 sq ft of A1 retail and 11,44 sq ft of B1 offices with 1,227 sq ft of terracing across multiple floors. Prime office ERVs are c. 85 psf. Further potential to convert part of the A1 retail unit to valuable A3 restaurant use (STPP). Price - 21,,. Capital value: 1,295 psf on the consented NIA. 2 3

3 1 4 / 1 6 G R E AT P O R T L A N D S T R E E T 1 4 / 1 6 G R E AT P O R T L A N D S T R E E T Soho Noho Market Place Carnaby Street Oxford Street Margaret Street Oxford Circus Great Portland Street Regent Street Mayfair 4 5

4 Location Prominently located on Great Portland Street with dual frontage to Market Place/ Margaret Court just 3 ft from Oxford Street, Europe s busiest retail street. Situated in the heart of London s West End, Great Portland Street forms one of the main thoroughfares linking Oxford Street in the south to Marylebone Road in the north and benefits from a highly varied occupier base with office, retail, residential, bar and restaurant occupiers providing a diverse and captivating mix synonymous with Noho/Fitzrovia. Noho, one of the main West End office sub-markets, has witnessed sustained growth and regeneration over the past few years including landmark schemes such as The BBC HQ, Fitzroy Place and Great Portland Estate s redevelopment of the former Post Office site at Rathbone Place. The area is brimming with restaurants, designer hotels and luxury boutiques and whilst traditionally associated with the fashion industry, Noho has recently become heavily associated with the TMT sector attracting office occupiers including Sony, Facebook, MTV, Lionsgate Films and The British Film Industry. Market Place, located to the rear, has become a popular bar and restaurant destination in addition to being an established retail location benefitting from enlarged deep pavements which provide tenants with rare and valuable outside seating. Local occupiers now include Côte Brasserie, Coppa Club, Carluccio s, Yoobi, Honest Burger & Market Place Bar. Oxford Street, one of the most visited retail destinations in the world is located just 3ft south of the property linking directly onto Great Portland Street. Oxford Street is one of the world s most famous shopping streets and Europe s busiest, attracting over 193 million people every year of which over 5% are overseas visitors. Acting as the principal location for department stores in London, Oxford Street is home to Selfridges, John Lewis, House of Fraser and Debenhams as well as an unprecedented and diverse mix of retailers. 6 7

5 Oxford Street, located just 3ft south of the property linking directly onto Great Portland Street, is home to major retailers uncluding Selfridges, John Lewis, House of Fraser and Debenhams.

6 Oxford Street is one of the world s most famous shopping streets and Europe s busiest, attracting over 193 million visitors every year. 1 11

7 Communications Benefitting from excellent transport links with 1 London Underground Stations located within less than a mile of the property providing an unrivalled access across London. BOND STREET.4 MILES Marylebone WIGMORE STREE T OXF ORD STREE T REGENT S PARK.4 MILES CAVENDISH SQUARE 14 HANOVER SQUARE GREAT PORTLAND STREET.5 MILES GREAT POR TLA ND STREE T OXF ORD CIRCUS.1 MILES REGE NT STREE T 6 9 Noho WARREN STREET.8 MILES OXF ORD STREE T GREAT MARLB OROUGH STREE T 5 21 Soho 7 4 GOODGE STREET.5 MILES WARDOUR STRE E T TOTTE NHAM C OUR T ROA D SOHO SQUARE TOTTENHAM COURT ROAD.5 MILES 2 1 DAVIE S STREE T LANGHAM HOTEL GRO SVE N O R S T R E E T 12 NEW B OND STREE T Mayfair 2 THE ROYAL SOCIETY OF MEDICINE AVE NUE 2 THE WESTBURY 3 CHANDOS HOUSE 4 SOHO HOUSE 5 THE SANDERSON 6 RIDING HOUSE CAFÉ 7 CHARLOTTE STREET HOTEL 8 BBC BR UTON STREE T 13 UNIVERSITY OF WESTMINSTER 14 JOHN LEWIS 15 LIBERTY LONDON 16 NIKE TOWN 17 ZARA 18 HOUSE OF FRASER 19 TOPSHOP/TOPMAN SHAF TE SBURY LEICESTER SQUARE.8 MILES 9 BT 2 CENTREPOINT 1 11 ROYAL INSTITUTE OF BRITISH ARCHITECTS CHINESE EMBASSY 21 LONDON EDITION HOTEL/BERNERS TAVERN PICCAD ILLY CIRCUS.7 MILES 12 BERKELEY SQUARE LY 13

8 Crossrail / Elizabeth Line Located just minutes from the new Hanover Street Crossrail ticket hall and Dean Street Crossrail ticket hall. Due for completion in 218, Crossrail will provide a new high speed train service providing thousands of commuters quick access into and across London. This 16 billion infrastructure enhancement is the largest in Europe and will provide London and the south east with a world leading inner-city railway. Once completed, the nearby Bond Street Station will have two new ticket halls and two new platform tunnels. The new line will link 37 stations and 2 London airports (Heathrow and City Airports) with journey times reduced by up to half. 2 million passengers are forecast to travel on Crossrail each year resulting in a 1% increase in London s rail capacity and bringing 1.5 million additional people within 6 minutes reach of the capital s key business districts. Both Bond Street & Tottenham Court Road Underground Stations are currently undergoing major transformations to become two of the key transport hubs of the Crossrail network and increase capacity at one of the largest shopping districts in the UK. At present Bond Street Station carries 155, passengers per day and once completed the station s capacity and footfall is forecast to increase to 225, people daily with commuters being able to travel from Heathrow Airport to Bond Street in just 26 minutes. 26 HEATHROW AIRPORT PADDINGTON 4 BOND STREET JOURNEY TIME (MINUTES) TOTTENHAM COURT ROAD 4 FARRINGDON LUTON GATWICK LIVERPOOL STREET 6 STANSTED 9 WHITECHAPEL STRATFORD CANARY WHARF TOTTENHAM COURT ROAD (Dean Street) Crossrail ticket hall BOND STREET (Hanover Square) Crossrail ticket hall.4 miles.2 miles 14 15

9 Description Comprising a prominent, attractive mixed use retail and office building benefitting from large frontages to both Great Portland Street and Margaret Court/Market Place. Totalling 13,42 sq ft NIA (1, sq m) and 17,715 sq ft (1, sq m) GIA, the building is arranged over lower ground, ground and 5 upper floors. Originally constructed in 1914, the Great Portland Street elevation benefits from an attractive and robust Portland Stone façade with large arch windows at first floor level and a highly detailed decorative arch over the office entrance. The office floor plates comprise open plan column free area benefitting from excellent levels of natural light throughout. The rear façade is comprised of white glazed bricks with large windows. The offices, arranged over 1st-5th floors, are accessed via a dedicated private entrance on Great Portland Street whilst the retail element, arranged over lower ground and ground floors, benefit from access from both Great Portland Street to the front & Margaret Court/ Market Place to the rear Great Portland Street benefits from generous floor to ceiling heights throughout, a passenger lift serving ground and all upper floors and a large, grand entrance hall. The building is not listed. 1st Floor 1st Floor 16 17

10 Accommodation FLOOR AREA GIA AREA NIA SQ FT SQ M SQ FT SQ M 5th th 1, rd 2, , nd 2, , nd half landing st 2, , Ground 3, , Lower Ground 3, , Total 17,715 1, ,42 1, nd Floor 18 19

11 1st Floor 2 21

12 Tenure Tenancies Freehold. Multi-let in accordance with the schedule below providing the opportunity to have vacant possession of the upper floors by 29 January 217 and vacant possession of the whole by June 217: Roxburghe House PREMISES TENANT RENT (PER SQ FT) TERM BREAK OPTION NIA AREA (SQ FT) COMMENTS GREAT PORTLAND STREET Fifth Creative Design Industries Ltd 26, ( 36.1) MB anytime on 2 months notice 722 Outside Act. MARKET PLACE Fourth Third Directors Cut Sound Ltd Creative Design Industries Ltd 27, ( 31.51) 6, ( 28.1) MB anytime on 1 months notice MB anytime on 2 months notice 857 Outside Act. 2,135 Outside Act. Kent House Second Vacant. 2,21 EAT CASTLE STREET MARKET PLACE MARKET PLACE First LOLA Post Productions Ltd ,148 Outside Act. Ground 154, ,465 Outside Act. Ryman Ltd ( 3.99) Lower Ground 2,55 Market Court TOTAL 267, 13,42 OXFORD STREET OXFORD CIRCUS Not to scale. For identification purposes only. This plan is based upon an ordnance survey map with sanction of the Controller of the HM Stationery Office. Crown copyright reserved

13 1 4 / 1 6 G R E AT P O R T L A N D S T R E E T 1 4 / 1 6 G R E AT P O R T L A N D S T R E E T Development Opportunity Consented floor plans: TYPICAL FLOOR (1/2/3) FLOOR 4 Office Extension / Refurbishment Full planning permission was granted on 28th July 216 to reposition the property as a Grade A modern mixed use building with extended office floors and improved amenities. The scheme will deliver a total of 5,167 sq ft of A1 retail and 11,44 sq ft of B1 offices with 1,227 sq ft of terracing across multiple floors. In summary the planning consent will provide: Erection of an additional storey at fourth floor level at the rear Refurbishment to provide Category A offices Widening of the link within the central lightwell at 1st-4th floors External alterations including the creation of terraces at 2nd, 3rd, 4th and roof levels Installation of screened plant at new roof level Removal of secondary stair core to Margaret Court to provide additional office (B1) area Creation of a new frontage and pedestrian access onto Margaret Court Creation of shower facilities and bike storage at lower ground FLOOR 5 Further information can be found online via the Westminster Council Planning Portal with the reference 16/879/FULL. PLANT New Floor New Terrace Not to scale, indicative only Consented floor areas: Widening of the link FLOOR GIA USE CLASS A1 AMENITY/TERRACE SPACE B1 NIA Roof Garden 24 View of 4th floor rear SQ M SQ FT SQ FT SQ FT SQ FT SQ FT SQ FT SQ FT , , , , , , , ,669 G 39 3, , LG 376 4, , ,838 19, ,166 1,26 11, ,227 TOTAL 25

14 1 4 / 1 6 G R E AT P O R T L A N D S T R E E T 1 4 / 1 6 G R E AT P O R T L A N D S T R E E T Development Opportunity Below are floor plans providing optionality on potential splits: Change of use to provide A3 use at part ground and lower ground floors GROUND FLOOR Potential exists (STPP) for change of use of part ground and lower ground floors from A1 retail to A3 restaurant use. The new A3 unit would be accessed from a dedicated entrance at Margaret Court/Market Place and would be a welcome further addition to the growing restaurant micro-destination that currently exists. Initial discussions with Westminster City Council have taken place and feedback has been positive with Westminster indicating they would support a change of use on the basis of a 5/5 split between A1/A3. Below is a table with projected ERV s for the proposed A1/A3 split: FLOOR USE ERV Ground A1 155, ( 225 ZA) Ground A3 28, Lower Ground TOTAL 435, Proposed Margaret Court frontage LOWER GROUND FLOOR Not to scale, indicative only 26 27

15 1 Local Developments GOODGE STREET.5 MILES GREAT PORTLAND STREET MORTIMER STREET TASMAN HOUSE, 59/63 WELLS STREET, W1 Developer: Great Portland Estates Under construction: 37,3 sq ft of retail/ restaurant and office accommodation Completion: H OXFORD STREET, W1 Developer: Derwent London Planning permitted: 275, sq ft, comprising 24, sq ft of office space, 37, sq ft of retail and a 35 seat theatre above the new Crossrail station Target start: 218 and completion in THE COPYRIGHT BUILDING, W1 Developer: Derwent London Under construction: 17,15 sq ft, comprising 87,15 sq ft of offices and 2, sq ft of retail space. Offices pre-let in entirety to Capital Business Services Limited for 2 years from 217 at an average rent of approximately 86 per sq ft Completion: H2 217 GREAT TITCHFIELD STREET MARGARET STREET TOTTENHAM COURT ROA D 9 TOTTENHAM COURT ROAD.5 MILES OXFORD STREET 7 OXF ORD CIRCUS.1 MILES SOHO SQUARE 4 - CENTRE POINT Developer: Almacantar Private Units: 82 apartments Average PSF: 3,5 reported achieved Completion: ONE RATHBONE SQUARE, W1 Developer: Great Portland Estates Under construction: 412, sq ft, including 227,3 sq ft of office space and 142 residential units. 227,3 sq ft pre-let to Facebook for 15 years at an average rent of per sq ft ( 83 per sq ft average for the six floors above ground) Completion: H OXFORD HOUSE, 76 OXFORD STREET, W1 Developer: Great Portland Estates Potential: 9, sq ft development comprising 55, sq ft of office space and 35, sq ft of retail space Target completion: H1 219 GREAT MARLBOROUGH STREET BERWICK STREET WARDOUR STREET DEAN STREET FRI TH STREE T GREEK STREE T OXFORD STREET, W1 Developer: Great Portland Estates Planning permitted: 88, sq ft of retail and office accommodation above the new Cross rail station. Pre-let 31,8 sq ft of retail space to New Look and 15,3 sq ft of retail space to Benetton Group for 2 years from 217 Target start: 216 with completion in H ONE BEDFORD AVENUE, WC1 Developer: Exemplar/Ashby Capital/ The Bedford Estates Under construction: 115, sq ft, comprising 7, sq ft of offices and 45, sq ft of retail space Completion: H ORIANA - PHASE II, OXFORD ST, W1 Developer: Frogmore & Land Securities Under construction: 72, sq ft of retail space Completion: 217 REGENT STREE T 1-8 CHARLOTTE STREET, W1 Developer: Derwent London Under construction: 38, sq ft, comprising 321, sq ft of offices, 45, sq ft of residential and 14, sq ft of retail space Completion: H NEWMAN STREET, W1 Currently being marketed. Planning consent for a 59,675 sq ft 1 bedroom hotel 12 - TIN PAN ALLEY, DENMARK ST, WC2 Developer: Consolidated Developments Planning permitted: 21, sq ft of mixed use development; 1, sq ft of urban gallery space and an 8 capacity basement music venue Target Completion: 218 SHAF TESBURY AVENUE 28 29

16 Market Commentary Investment / Development Despite the UK s decision to exit the EU in June 216, the Central London investment market remains robust, in particular to value add/asset management opportunities where growth can be extracted. Supply for prime West End assets remains extremely scarce with investors competing in a market characterised by tight supply. In September, the West End saw volumes of 869m across 13 transactions, the second largest monthly figure of the year. Annual turnover at the end of Q3 reached 5.44bn over 114 transactions. Although this is down 11% on previous year, current turnover levels remain the fourth highest on record, only 3% down on 214 which was the West End s record year. London remains a safe haven for overseas investors due to a transparent and competitive market, established legal system and political stability. Investors remain keen to secure London assets offering a return on their cash resources as well as excellent growth prospects. Today s environment of record low interest rates, a weakening Sterling; which is at a 35 year low against the dollar and a low return of 1.8% for UK government 1 year bond yields reinforce UK real estate as a global asset class. Across the world government bond yields have continued to compress as economists forecast low global growth and greater stimulus from central banks in spite of years of monetary easing. The UK s low gilt yields, favourable lending conditions and weak currency make UK real estate an attractive proposition for the global investor. Set out below are some comparable investment transactions: DATE ADDRESS NIA (SQ FT) TENURE TENANCIES PRICE NIY CAP VALUE (SQ FT) Q2, Bentinck Mews 3,11 VFH VP 5.1m N/A 1,694 Q2, Golden Square, W1 5,61 FH EAT, vacant uppers Q2, 216 Frith and Dean Street Buildings, W1 25,19 FH Multi let & part vacant 1.5m N/A 2, m 1.9% 1,352 Q2, Golden Square, W1 27,9 FH Multi-let with % 1,93 part vacant Q1, Broadwick Street, W1 22,249 FH VP 33.5m N/A 1,55 Q4, Great Portland Street, W1 79,552 FH Engine Group 13.m 3.88% 1,295 Retail Investment London continues to be one of the world s leading retail destinations alongside New York, Paris, Milan and Shanghai. The Capital offers global retail appeal and as a result the London retail economy continues to experience considerable growth. Retail sales on Britain s high streets rose by 5.9% year on- year (July 216) and 1.4% month-on-month (June 216 source ONS). According to Visit Britain (the UK tourist agency), the number of tourists coming to the UK is set to rise by 3.8% in 216 to 36.7m with spending forecast to increase by 4.2% resulting in a strengthening of occupational demand, low vacancy rates and strong rental growth. The perceived current weakness in the sterling is boosting retail sales as increased numbers of overseas tourists visit London looking to take advantage of the currency. Set out below are some retail investment transactions: DATE ADDRESS TENANT TENURE PRICE NIY CAPITAL VALUE U/O 14 Great Portland Street Boots VFH 5,55, 3.37% 1,67 Q Dean Street, W1 Wagamama VFH 14,5, 3.88% 2,565 Q Maddox Street, W1 Holland & Barrett VFH 8,4, 3.35% 2,194 Q Victoria Street, SW1 Natwest VFH 2,85, 2.93% 534 Q Parsons Green Lane, SW6 Cote Brasserie FH 3,75, 3.22% 61 Q Dean Street, W1 Le Relais de Venise The above information has been provided by 3rd parties and is subject to verification. FH 8,, 3.66% 2,24 Q1 216 Embassy Gardens, SW8 Waitrose VFH 22,14, 3.5% 843 Q Fulham Road, SW1 Nationwide VFH 2,13, 3.99% 838 Q Blandford Street, W1 L Autre Pied FH 4,, 2.5% 1,855 Q2, Great Portland Street, W1 15, FH VP 25.m N/A 1,667 Q2, Charlotte Street, W1 4,33 FH Multi-let 7.6m 1.67% 1,884 The above information has been provided by 3rd parties and is subject to verification. 3 31

17 Market Commentary Occupational Market The impact of Brexit has yet to be seen on the leasing market as we are still seeing remnants of pre-brexit agreed deals happening. Rental values throughout the UK office sector remained relatively stable in September, however take-up fell across Central London Offices over the course of August. Current availability increased in August by 1%, the third consecutive month of increasing availability, however despite the increases this figure still remains significantly below the 1 year average. Marylebone and Fitzrovia are currently experiencing low vacancy rates due to a limited office development pipeline in an area that has witnessed a large loss of offices to residential. Noho remains a destination where demand comfortably outstrips supply with the area popular for companies in the media, fashion and TMT sectors who seek a discount to rents in neighbouring Mayfair and the benefits of upcoming infrastructure improvements and high quality transport links. Below we set out details of some recent local leasing transactions: ADDRESS AREA (SQ FT) TENANT RENT (PSF) 33 Welbeck Street, W1 1,468 Strategic Land Group Q4, Welbeck Street, W1 1,551 Ashby Capital 95. Q3, Wimpole Street, W1 7,716 IVI UK Ltd Q2, Wells Street, W1 1,938 Lola VFX Limited 85. Q1, Berners Street, W1 87,15 Capita Business Services 86. Q1, Market Place, W1 3,181 Thomas St John Ltd 92.5 Q1, Market Place, W1 4,23 Ncrypt Ltd 92.5 Q4, Fitzroy Place, Mortimer Street, W1 12,867 Bakkavor Group Ltd 87.5 Q4, 215 DATE Heals Building, Tottenham Court Road, W1 4,879 Alteration Services Ltd 92.5 Q4, Market Place, W1 4,452 Joint London Ltd 92.5 Q4, 215 The above information has been provided by 3rd parties and is subject to verification 32 33

18 Further Information VAT Great Portland Street is VAT elected and it is intended that the transaction will be conducted as a TOGC (Transfer of Going Concern). EPC Great Portland Street has an EPC rating of D(86). PROPOSAL Offers in excess of 21,, for the benefit of our client s freehold interest reflecting a capital value of 1,295 psf on the consented areas. CONTACT For further information or to arrange an inspection, please contact: Scott Lister Direct Line: +44 () scottlister@michaelelliott.co.uk Richard Goldstein Direct Line: +44 () richardgoldstein@michaelelliott.co.uk Peter Ng Direct Line: peterng@michaelelliott.co.uk Misrepresentations Act 1967 & Declaration: Michael Elliott for themselves and for the vendors of this property whose agents they are given notice that: a) the particulars are set out as general outline only for the guidance of intending purchasers and do not constitute, nor constitute part of, an offer or contract; b) all descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchaser should not rely on them as statements or representations of fact but should satisfy themselves by inspection or otherwise as to the correctness of each of them; c) no person in the employment of Michael Elliott has any authority to make or give any representations or warranty whatever in relation to this property. November (Q3615) 34 35

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