14O-142 GREAT PORTLAND STREET. 1o9-11O BOLSOVER STREET

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1 14O-142 GREAT PORTLAND STREET 1o9-11O BOLSOVER STREET LONDON W1 Prime vacant Marylebone refurbishment opportunity with residential consent 1

2 . INVESTMENT SUMMARY» Located between the thriving and fashionable districts of Marylebone and Fitzrovia in the heart of London s West End.» Two attractive red brick office buildings benefitting from prominent dual frontages.» 14,025 sq ft (1,303 sq m) arranged over lower ground, ground and four upper floors.» Freehold.» Vacant possession.» Range of asset management, refurbishment and development opportunities.» Full planning consent for a luxury residential led mixed-use scheme comprising: - 8 private apartments totalling 8,709 sq ft NSA. - 5,692 sq ft (GIA) of ground and lower ground floor retail.» Offers in excess of 17,500,000 for the benefit of our client s freehold interest.» Capital value: 1,248 psf on existing area and 1,215 psf on consented areas. 2

3 piccadilly circus tottenham court road St JAmes S park regent street Great Portland Street & Bolsover Street, London, W1 OXFORD CIRCUS green park bond street oxford street cavendish square bond street HYDE PARK selfridges BT TOWER BBC Broadcasting house new cavendish street 14O-142 GREAT PORTLAND STREET 1o9-11O BOLSOVER STREET GREAT PORTLAND street PORTLAND place 3

4 LOCATION Great Portland Street & Bolsover Street are situated just off New Cavendish Street and located between the thriving and fashionable districts of Marylebone and Fitzrovia in the heart of London s West End. The properties are just north of the internationally renowned retail destination of Oxford Street and walking distance from the independent boutiques of Marylebone High Street and Fitzrovia. 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 all represented providing a diverse and captivating mix synonymous with Marylebone and Fitzrovia. Bolsover Street is predominantly occupied by office and residential users. MARYLEBONE Marylebone s two largest landowners, The Portman and The Howard De Walden Estates, have upheld the heritage of the area creating a vibrant, fashionable and desirable commercial and residential location centred around Marylebone Village providing an alluring and eclectic mix of high end residential accommodation, boutique and designer retail shops, top quality restaurants and both modern and period office accommodation. Marylebone is bounded by exclusive Mayfair to south, Regent s Park to the north, Soho to the east and Paddington to the west. Regent s Park lies just 0.8 km (0.5 miles) to the north and provides the largest area for sports in Central London. The park covers 19.7 hectares (486 acres) and also offers an Open Air Theatre, London Zoo, cafes and restaurants. 4 The Chiltern Street Firehouse Marylebone High Street

5 FITZROVIA Fitzrovia 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 fashionable restaurants, hotels and boutiques with hotel occupiers including The Sanderson, The Grazing Goat, The London Edition and The Charlotte Street Hotel. Charlotte Street also plays host to restaurants including Roka, Bambou, Pied a Terre and Brasserie Blanc. Local occupiers include fashion, media advertising, film and television industries. Other restaurant occupiers throughout Marylebone and Fitzrovia include Hakkasan, Riding House Café, Archipelago and The Chiltern Street Firehouse. BBC Broadcasting House Hakkasan 5

6 COMMUNICATIONS Benefitting from excellent transport links with 10 London Underground Stations located within less than a mile of the properties providing unrivalled access across London. CROSSRAIL Due for completion in 2018, 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. The new line will link 37 stations and 2 London airports (Heathrow and City Airports) with journey times reduced by up to half. 200 million passengers are forecast to travel on Crossrail each year resulting in a 10% increase in London s rail capacity and bringing 1.5 million additional people within 60 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 hubs of the Crossrail network. At present Bond Street Station carries 155,000 passengers per day and once completed the station will have two new ticket halls and two new platform tunnels with capacity and footfall forecast to increase to 225,000 people daily with commuters being able to travel from Heathrow Airport to Bond Street in just 26 minutes. 14O GREAT PORTLAND STREET 1o9-11O BOLSOVER STREET O.3 MILES GREAT PORTLAND STREET OXFORD CIRCUS GOODGE STREET REGENT S PARK O.4 MILES O.5 MILES WARREN STREET EUSTON SQUARE O.6 MILES O.7 MILES TOTTENHAM COURT ROAD BOND STREET LONDON EUSTON BAKER STREET O.8 MILES 1.1 MILES MARYLEBONE MAIDENHEAD HAYES & HARLINGTON WEST EALING EALING BROADWAY ACTON MAIN LINE 14O GREAT PORTLAND 1o9-11O BOLSOVER STREET PADDINGTON BOND STREET TOTTENHAM COURT ROAD FARRINGDON STANSTED LIVERPOOL STREET WHITECHAPEL STRATFORD CUSTOM HOUSE ROMFORD SHENFIELD ABBEY WOOD CIRCLE METROPOLITAN HAMMERSMITH & CITY BAKERLOO NORTHERN VICTORIA CENTRAL JUBILEE HEATHROW AIRPORT LUTON GATWICK CANARY WHARF WOOLWICH 6

7 . MAINLINE RAIL Mainline national rail services are afforded from London Marylebone & London Euston (both within a mile) which provide regular services across the country. London Marylebone provides fast access to destinations including High Wycombe, Wembley Stadium, Warwick, Birmingham Moor Street & Birmingham Snow Hill. London Euston, the sixth busiest railway station in the UK, is also the southern terminus of the West Coast Main Line with direct services to Birmingham, Manchester, Liverpool & Glasgow. London Euston is also the preferred southern terminus of the proposed HS2 (High Speed 2) line which will provide London with a new state of the art high speed rail link to Birmingham in just 32 minutes. Proposed new London Euston station concourse London to: Birmingham East Midlands Hub 0.51 Nottingham Midland Derby Midland Sheffield Meadowhall Sheffield Midland Leeds York Crewe Manchester Airport Manchester Liverpool Merseyside Liverpool Runcorn Warrington Crewe Stafford WEST MIDLANDS Stoke Birmingham Bradford Manchester Manchester Airport HS2 Station HS2 destination served by HS2 classic compatible services Core high Speed Network (Phases One & Two) HS2 connection to existing rail network Classic compatible services on West Coast Main Line Classic compatible services on East Coast Main Line Existing Lines with potential for future connection to HS2 Leeds Sheffield Derby York WEST YORKSHIRE Rotherham Sheffield Meadowhall SOUTH YORKSHIRE Nottingham East Midlands Hub EAST MIDLANDS Leicester Birmingham Interchange HOURS.MINUTES HS2 JOURNEY TIMES CURRENT TIMES London Marylebone station entrance 7 Cardiff Bristol Old Oak Common Heathrow Airport London (Euston) HS1

8 DESCRIPTION Great Portland Street & Bolsover Street comprise two attractive red brick office buildings both benefitting from prominent frontages. The buildings are interlinked at lower ground, ground and first floor levels creating a flat roof with large skylight between the premises. Both properties are vacant and stripped out GREAT PORTLAND STREET Situated on the east side of Great Portland Street close to its junction with New Cavendish Street, the building is arranged over lower ground, ground and four upper floors benefitting from an 11m frontage to the street. The property is of typical masonry construction with an attractive red brick and stone façade at first to fourth floor levels, large double glazed windows providing excellent natural light and a selfcontained ground floor with impressive floor to ceiling glazed frontage. 8

9 EXISTING ACCOMMODATION Floor Use Area (NIA) Sq m Sq ft Fourth Office 167 1,798 Third Office 153 1,647 Second Office 160 1,722 First Office 221 2,379 Ground Office 232 2,497 Ground Retail 115 1,237* Lower Ground Office 255 2,745 TOTAL 1,303 14,025 * (GIA) 9

10 BOLSOVER STREET Situated on the west side of Bolsover Street close to its junction with New Cavendish Street, the building is arranged over lower ground, ground and four upper floors benefitting from a 10m frontage to the street. The property is of typical masonry construction with an attractive red brick façade at first to fourth floor levels above a stone faced façade at ground floor level. Part ground floor of 91 New Cavendish Street is also included and will be interlinked to the building in the proposed development providing a total retail frontage of c.23m to Bolsover Street with c.9m return frontage on New Cavendish Street. CGI of the proposed new reception 10

11 CLIPSTONE STREET TENURE GREAT PORTLA BOLSOVER STREET Great Portland Street & Bolsover Street are held freehold. Part ground floor (blue) of 91 New Cavendish Street is held on a 999 year lease from 3rd December 2013 at a peppercorn. ND STREET HALLAM STREET TENANCY NEW CAVENDISH STREET Vacant possession. GOSFIELD STREET Not to scale. For identification purposes only. This plan is based upon the Ordnance Survey Map with the sanction of the controller of H.M. Stationery Office. Crown Copyright reserved. 11

12 DEVELOPMENT OPPORTUNITY Great Portland Street & Bolsover Street offer a purchaser multiple redevelopment and refurbishment options including:» Undertake a complete refurbishment to provide Grade A offices to capture strong demand and rental growth» Create a commercial led mixed use scheme comprising offices above retail (STPP)» Implement existing planning consent to extend the envelope, increase massing and create a residential led mixed use scheme» Increase massing for an office led mixed use scheme on basis of consented residential areas (STPP)» Potential to increase massing by c.934 sq ft with addition of new 5th floor on Great Portland Street (STPP) Planning consent was granted on the 7th July 2014 to convert the existing offices into a mixed use building comprising retail (A1) over basement and ground floors with 8 private self-contained residential apartments above including a one storey mansard roof extension on the Bolsover Street elevation. The scheme will deliver a total of 8,709 sq ft of luxury residential apartments across first to fifth floors above 5,692 sq ft of retail accommodation. (ref:13/11372/full & ref:14/11080/full). A total cost of 252,000 has been paid to Westminster City Council in relation to the agreed S106. If the properties are developed as offices this sum will be returned to the owner. Consented Residential Areas: UNIT FLOOR MIX AREA (SQ FT) AREA (SQ M) Unit 01 First 2 Bed 1, Unit 02 First 3 Bed 1, Unit 03 Second 2 Bed Unit 04 Second 2 Bed Unit 05 Third 2 Bed Unit 06 Third 2 Bed Unit 07 Fourth and Fifth 2 Bed Unit 08 Fourth and Fifth 3 Bed 1, TOTAL 8, Consented Retail Areas: Option 1 AREA (SQ FT) - GIA Option 2 AREA (SQ FT) - GIA Option 3 AREA (SQ FT) - GIA FLOOR SINGLE UNIT UNIT 01 UNIT 02 UNIT 01 UNIT 02 Ground 3,626 1,851 1,710 1,442 2,163 Lower Ground 2,066 1, ,022 1,001 Sub Total N/A 3,196 2,388 2,464 3,164 TOTAL 5,692 5,584 5,628 12

13 13 CGI of proposed living room

14 CGI of proposed Great Portland Street façade CGI of proposed Bolsover Street façade

15 CGI of proposed bathroom CGI of proposed kitchen and living room 15

16 FIRST FLOOR SECOND FLOOR GREAT PORTLAND STREET GREAT PORTLAND STREET BOLSOVER STREET GREAT PORTLAND STREET BOLSOVER STREET GREAT PORTLAND STREET BOLSOVER STREET BOLSOVER STREET GREAT PORTLAND STREET BOLSOVER STREET THIRD FLOOR FOURTH FLOOR FIFTH FLOOR Not to scale indicative only

17 . LOCAL DEVELOPMENTS Fitzroy Place Developer: Exemplar & Aviva Scheme: New build scheme with part façade retention to deliver 235 private residential apartments and approximately 100,000 sq ft of commercial and retail floorspace. The Chilterns Developer: Galliard Homes Scheme: New build scheme comprising 60 residential units (10 affordable) with a restaurant and other retail led uses at ground floor and a health and fitness suite. 91 New Cavendish Street Developer: Oakmayne Scheme: Redevelopment behind a retained façade to provide a mixed use scheme comprising 8 residential flats above A1 retail and the addition of a fifth floor mansard roof extension. 80 Charlotte Street Developer: Derwent London Scheme: Redevelopment of Saatchi & Saatchi s headquarters to provide new build office and residential scheme totalling c.380,000 sq ft with completion scheduled for second half of Rathbone Square Developer: Great Portland Estates Scheme: New build scheme of approximately 412,000 sq ft which will deliver 162 private apartments with commercial and retail floorspace. 66 CHILTERN PLACE Developer: Ronson Capital Partners Scheme: New build scheme set over 15 storeys comprising 56 private residential units with restaurant use at ground/first floor. Moxon Street Car Park Developer: Private Developer Scheme: Redevelopment of existing car park to provide c.40,000 sq ft of retail accommodation and 60,000 sq ft of private luxury residential accommodation. 1-2 Stephen Street Developer: Derwent London Scheme: Refurbishment and redevelopment to provide 267,300 sq ft of office and retail (40,000 sq ft) accommodation with the retail units extended to create a double-height frontage to Tottenham Court Road. The office element is already pre-let to tenants including Freud Communications and BrandOpus. Completion is due in

18 REGENT S PARK LONDON EUSTON EUSTON SQUARE BAKER STREET A5O1 REGENT S PARK GREAT PORTLAND STREET CLEVELAND STREET FITZROY PLACE Cleveland Street Developer: Dukelease & Starwood Scheme: Proposal for demolition and redevelopment to create c.38,500 sq ft of mixed use commercial space providing offices, retail, restaurant and leisure uses with 105 residential apartments above. THE CHILTERNS 66 CHILTERN PLACE THE W1 MOXON STREET CAR PARK Great Portland Street & Bolsover Street 91 NEW CAVENDISH ST GREAT PORTLAND STREET 80 CHARLOTTE STREET GOODGE STREET RATHBONE SQUARE TOTTENHAM COURT ROAD 1-2 STEPHEN STREET Centrepoint, Oxford Street Developer: Almacantar Scheme: Redevelopment and conversion of the existing office building to provide 82 apartments with completion due in BOND STREET The w1 london, marylebone high Street Developer: Royalton Scheme: Redevelopment to provide 19 apartments and 5 townhouses with completion due in OXFORD STREET BOND STREET OXFORD CIRCUS TOTTENHAM COURT ROAD TOTTENHAM COURT ROAD CENTREPOINT 18

19 MARKET COMMENTARY INVESTMENT / DEVELOPMENT Central London office investment activity totalled 6.1bn in Q2 2015, a 44% increase on the 4.2bn invested in Q Demand for office accommodation remains at unprecedented levels characterised by limited supply, particularly in prime Central London areas which are forecast to benefit from strong rental and capital growth. Q2 activity saw UK investors dominate the market accounting for 38% of all investment with the largest foreign investment from North American buyers who accounted for 25% (c. 2bn) of transactions. From 1st September 2015 Westminster City Council s planning policy changes will effectively halt the conversion of offices to residential. Availability of offices with the benefit of planning permission will naturally decrease and likely apply upward pressure on capital values as developers remain keen to supply apartments to a global waiting list for the most sought after locations in London. Against a backdrop of severely low stock levels and yield compression further price sharpening is widely expected to continue in 2015 as investors seek exposure to the most sought after investment market in the world. To benefit from rental growth purchasers are increasingly keen on adding value via refurbishment, change of use, redevelopment and repositioning assets. Below we set out details of some recent local investment transactions: OCCUPATIONAL Central London office take up reached c.4.0m sq ft in Q2 2015, a 28% increase on Q1 taking the mid-year total to 7.1m sq ft and showing the strongest start to a year since Availability continued to decline with a decrease of c.4% to 9.9m sq ft marking this the first time it has fallen below 10m sq ft since 2001 and leaving occupiers with very limited relocation options. A continued loss of offices to residential and general scarcity in supply has put increased upward rental pressure in the prime areas as the West End continues to attract high profile tenants from all business sectors with take up in Q2 reaching c.1.1m sq ft, c.8% above the 10 year average. Average West End prime rents are currently c. 120 psf although shadowed by the lettings in St James s Square where 185 & 150 psf have been achieved. Marylebone and Fitzrovia are currently observing historically low vacancy rates as a limited office development pipeline in the area that has witnessed a large loss of offices to residential continues to see supply comfortably outstripped by demand. The area remains 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 P/C Tenure Area Sq ft Price Capital Value ( psf) Date Comments 1-3 Charlotte Street W1 FH 4, m 1,884 Q3, 2015 Vacant possession of upper floors. Planning consent for residential above retail. 33 Foley Street W1 FH 34, m 1,603 Q3, 2015 Vacant possession. Planning consent for 33 apartments. 37/38 Golden Square 120 New Cavendish Street Cambridge House, Euston Road Oracle House, 8-12 Welbeck Way Jacob Well Mews W1 FH 28, m 1,534 Q3, 2015 Vacant possession of upper floors.planning consent for 22 residential apartments. W1 VFH 32, m 1,355 Q2, 2015 Majority vacant possession with short income W1 FH 12, m 1,255 Q2, 2015 Vacant possession. Planning permission to provide 16 apartments above commercial. W1 VFH 6, m 1,653 Q1, 2015 Head lease restricts residential conversion. Sale and leaseback for 3.5 yrs. W1 FH 9,803 (GIA) 12.6m 1,647 Q4, 2014 Income until April Capital value based off consented areas. 19 Address P/C Area (sq ft) Tenant Lease Term (Yrs) Rent (psf) 55 Blandford Street W1 2,180 TBC TBC U/O Charlotte Building, Gresse Street 4-7 Manchester Street W1 5,958 Confidential Q3, 2015 W1 2,915 Confidential Q3, Stephen Street W1 16,000 Anacap Q2, Fitzroy Place W1 17,080 Allfunds Bank Q2, 2015 UK House, 2 Great Titchfield Street W1 3,200 Countrywide Q4, Fitzroy Place W1 144,000 Estée Lauder 15 c Q2, 2014 *The above information has been provided by 3rd parties and is subject to verification. Date

20 . FURTHER INFORMATION VAT These premises are elected for VAT and therefore VAT will be payable on the purchase price. EPC The property has an EPC rating of D (80). 20

21 PROPOSAL Offers in excess of 17,500,000 for the benefit of our clients freehold interest reflecting a low capital value of 1,248psf on the existing NIA and 1,215psf on the consented areas. CONTACT For further information or to arrange an inspection, please contact: Scott Lister Direct Line: scottlister@michaelelliott.co.uk Richard Goldstein Direct Line: 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. September 2015