HEADER BOROUGH HIGH STREET

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1 HEADER COPYAPIDI OVIT QUATATUS IMIN RE, VOLUPTAM ALIQUAT URIBUSTEM IUMENIATEM SECTE CUSAM ET EL MAXIMETUR AUT PREM VELLUPTATE LATUR? QUIBUS, OFFICAE VOLUPTA NATIUSAM QUI SED MO CULLENTUR? BOROUGH HIGH STREET LONDON SE1 1

2 INVESTMENT HIGHLIGHTS 160 Borough High Street represents a prime, newly refurbished investment opportunity with a secure income profile located in the Southbank one of London s most vibrant submarkets benefiting from exceptional occupational dynamics Core Southbank location; Excellent transport links, located a one minute walk from Borough Underground Station (Northern Line services) and under a 10 minute walk from London Bridge Station (National Rail, Northern and Jubilee Line services); 16,384 sq ft of newly refurbished and highly specified office accommodation arranged over lower ground, ground and four upper floors; Flexible, open plan floor plates with upper floors ranging from 2,207 sq ft to 2,438 sq ft benefiting from exceptional levels of natural light and external terraces on the first and fourth floors; Multi-let to a diverse range of tenants, with all leases excluded from the Landlord and Tenant Act (1954); Gross passing rent of 873,389 per annum equating to per sq ft overall; Weighted average unexpired lease term (WAULT) of 8.7 years to expiries and 4.5 years to tenant break options; Provides long term asset management opportunities, with planning consent for a roof extension and three storey extension to the rear of the property; Long leasehold; Offers sought in excess of 13,000,000 (Thirteen Million Pounds), subject to contract and exclusive of VAT; A purchase at this level would reflect an attractive net initial yield of 6.00% and a low capital value of 793 per sq ft, based on acquisition costs of 6.80%. 3

3 BOROUGH BLACKFRIARS FLAT IRON SQUARE TATE MODERN ETT EE RE TTR S S H H G HIIG HH GH U UG O O R R O B BO ST PAUL S BOROUGH MARKET CANNON STREET LONDON BRIDGE THE SHARD

4 THE SOUTHBANK AMENITIES 160 Borough High Street is located within the vibrant Southbank. The area has a deep history in both London s industrial and entertainment sectors and is now a hub of iconic London culture and commercial activity. The property is well located on the western side of Borough High Street, approximately 1 minute to the north of the intersection of Marshalsea Road, Borough High Street and Great Dover Street. The Southbank has seen a significant amount of investment and regeneration, with a key focus on infrastructure improvements. The capacity and improvement works to London Bridge Station have become a catalyst for development, most notably the construction of Europe and the UK s tallest tower, The Shard, which resides within the same plaza as London Bridge Station. Given the Southbank s existing cultural and leisure attractions, the improvements in infrastructure have helped to attract multinational corporates and companies from a diverse cross-section of industries including media & technology, professional services, banking, the public sector and serviced offices. The image of the Southbank is now not only of a cultural and leisure destination, but also as a true centre for business. Its situation on Borough High Street ideally places the property along a key arterial transport route, within close proximity to multiple transport nodes and is a key link into the City of London to the north. The excellent connectivity places the property within close reach of the City, West End and Canary Wharf, along with excellent access to London s airports including Heathrow, Gatwick and Luton. Furthermore, with Grade A office vacancy rates in the Southbank currently running at below 1% and with constrained supply, the market dynamics are highly competitive compared to other Central London sub-markets. S T R O N G M A R K E T DY N A M I C S 2018 TA K E U P ( Y T D ) PRIME RENT VA C A N C Y 136,809 SQ FT 4% above 5 Year YTD Average PSF 7.6% increase over the last 5 years 2.67% of which 0.62% Grade A Culture & Tourism Food & Dining The Southbank is home to some of London s most iconic cultural attractions, including the world-famous London Eye, the Tate Modern museum, the National Theatre, the Royal Festival Hall and Shakespeare s Globe. The well-known Borough Market is located within a short walk of the property. Borough Market is London s oldest food market and is a key part of the Southbank s cultural history. The market today comprises independent shops, fresh food market stalls and restaurants offering a variety of produce from across the world, reflecting London s position as a gateway global city. Education CONSTRAINED PIPELINE 717,000 sq ft currently under construction, with c.94% already pre-let INVESTMENT VOLUMES PRIME YIELD 5.6bn over the last 5 years 4.25% stable over the last 12 months 6 The area is well-established for its educational heritage, with the nearby Guy s and St Thomas Hospital providing worldclass medical training as well as King s College London basing its School of Medicine to the north east of the property. The Southbank is also the location of the Southwark Campus for the London South Bank University, which accommodates circa 17,500 students. As well as Borough Market, the location has seen a growth in new restaurant offerings, including Gordon Ramsay s Union Street cafe and Mark Hix s Hixter. A further new addition is Flat Iron Square, located 5 minutes to the north west of the property. Launched in 2016, the destination is situated beneath the railways arches and the Grade II listed building of Devonshire House, and offers a wide variety of bars, restaurants, pop-up food vendors, live music and a vintage market. 7

5 LOCAL OCCUPIERS AND AMENITIES The Southbank boasts an exceptional occupier base from a diverse range of industries. Office Occupiers 1 News UK 2 Time Inc 3 Telstra 4 Totaljobs 5 FT 6 EY 7 PwC 8 TfL 9 Omnicom 10 Ogilvy & Mather 11 WeWork 12 ITV 13 tp bennett 14 UBM 15 Boodle Hatfield 16 IBM 17 HSBC 18 Cheil 19 atg media 20 photobox 21 mozilla 22 Brandnation 23 reform architects 24 Parkopedia 25 Kraft Heinz 26 WPP 27 OFCOM 28 Norton Rose Fulbright Culture and Leisure 1 Tate Modern 2 Royal Festival Hall 3 National Theatre 4 Shakespeare s Globe 5 Shangri-La hotel 6 Mondrian London 7 CitizenM 8 Union Theatre 9 Jerwood Space 10 The Hop Exchange 11 Borough Market 12 Hixter 13 Caravan 14 Union Street Cafe 15 The Refinery 16 Flat Iron Square V I C TO R I A E M B A N K M E N T WATERLOO 12 WATERLOO EAST SOUTHWARK B L AC K F R I A R S B R I D G E B L AC K F R I A R S R OA D BLACKFRIARS S O U T H WA R K S T R E E T U N I O N S T R E E T S O U T H WA R K B R I D G E CANNON STREET U P P E R T H A M E S S T R E E T 11 B O R O U G H 10 H I G H S T R E E T SOUTHWARK CATHEDRAL MONUMENT L O N D O N B R I D G E 1 LONDON BRIDGE GUY S AND ST THOMAS HOSPITAL 5 25 S T T H O M A S S T R E E T 7 RIVER THAMES 6 MORE LONDON TO O L E Y S T R E E T FENCHURCH STREET L OW E R TH A M E S S T R E E T 28 GLA BUILDING TOWER HILL THE TOWER OF LONDON TO W E R B R I D G E BOROUGH LO N G L A N E

6 CONNECTIVITY 160 Borough High Street benefits from being within a 15-minute walking distance of four different stations. These provide access to four London Underground lines along with National Rail Services and City Thameslink from London Bridge and Blackfriars respectively, the former currently undergoing major enhancement works. Luton 58 Mins Bond Street 17 Mins Key Central Line Jubilee Northern Line Thameslink Tottenham Court Road 16 Mins Farringdon 16 Mins Blackfriars 12 Mins Kings Cross/St Pancras Int 12 Mins Bank 3 Mins London Bridge Waterloo Southwark 1 Min 8 Mins 10 Mins 9 Mins Borough 1 Min Elephant & Castle 2 Mins Stockwell 8 Mins Clapham Common 11 Mins Liverpool Street 11 Mins Stratford 20 Mins Canary Wharf 12 Mins BOROUGH 1 MIN LONDON BRIDGE 9 MINS SOUTHWARK 14 MINS London Bridge Station Redevelopment London Bridge Station is currently the fourth busiest station in the UK, serving over 50 million passengers a year. The station has undergone substantial improvement works as part of the wider government-sponsored Thameslink Programme. The redevelopment includes a new concourse connecting all fifteen platforms, five new platforms allowing services from Cannon Street to stop at the station, completely remodelled tracks to improve train capacity and two new entrances onto Tooley Street. The station also features new retail and leisure offerings, aiming to improve the user travel experience. As of January 2018, the new concourse was open to the public and departures from Cannon Street are now stopping at London Bridge Station. Thameslink Programme London Bridge Station Redevelopment The London Bridge redevelopment is situated within a broader infrastructure investment programme for the capital in the Thameslink Programme. This aims to improve north-south connectivity in the capital by introducing improved connections beyond Central London, upgrading stations and their platforms, as well as providing a fleet of longer trains. The Thameslink network will link London Bridge and Blackfriars stations with Farringdon, where a new connection will give access to Elizabeth Line (Crossrail) services at the station. Thameslink will therefore be able to offer passengers connections to London s Gatwick and Luton airports, as well as King s Cross St Pancras International Station. The works are due to complete in the Spring of Gatwick 60 Mins BLACKFRIARS 15 MINS 10 11

7 THE BUILDING 160 Borough High Street is of concrete framed construction and was originally developed in the mid-1960 s and in 2016 underwent a comprehensive refurbishment, behind a new facade, with new plant and services throughout. The property comprises 16,384 sq ft of highly specified, open plan office accommodation over lower ground, ground and four upper floors, with the flexible upper floor plates ranging from 2,207 sq ft to 2,438 sq ft. The first and fourth floors also have the benefit of external terraces. S P E C I F I C AT I O N The 2016 refurbishment provides the following high specification: Air conditioning throughout with brand new fan coil system for comfort cooling and heating; Suspended LG7 compliant LED lighting; Flexible floor plates with excellent levels of natural light; Newly installed 10 person passenger lift; DDA compliant; Two new WCs on each office floor; Newly modelled, striking reception; Shower facilities and bicycle storage at lower ground level.

8 ACCOMMODATION FLOOR PLANS 160 Borough High Street provides the following approximate net internal floor areas: Ground Floor Floor Use NIA (Sq Ft) NIA (Sq M) 4th Office 2, rd Office 2, nd Office 2, st Office 2, Ground Reception Ground Office 3, OFFICE RECEPTION BOROUGH HIGH STREET Lower Ground Office 3, Total 16, 384 1,522.1 The property has also been measured in accordance with IPMS. A copy of the survey is on the dataroom. Second Floor Fourth Floor TERRACE OFFICE OFFICE Not to scale. For identification purposes only

9 TENANCY The property is fully let to four tenants in accordance with the below tenancy schedule. The gross passing rent of 873,389 per annum reflects an average rent of per sq ft overall. All of the leases are excluded from the security of tenure and compensation provisions of the Landlord and Tenant Act (1954). The weighted average unexpired lease term (WAULT) is 8.7 years to expiries and 4.5 years to tenant break options. Tenant Floor Use Area (sq ft) Lease Start Tenant Break Option Lease Expiry Rent Review Rent ( PA) Rent ( PSF) Comments Axis Mason Limited 4th Office 2,207 14/09/ /09/ /09/ /09/ , St John Ambulance 3rd Office 2,437 26/03/ /03/ /03/ /03/ , St John Ambulance 2nd Office 2,438 26/03/ /03/ /03/ /03/ , London Real Estate Development Limited 1st Office 2,436 14/09/ /09/ , Reception Ground Reception Schedule of Condition. Rent deposit of 76,804. Additional 5 months rent free from 14/09/2022 if the tenant does not terminate the lease on the break date. Rent commencement 26/02/2019. Vendor to top-up any outstanding rent free. Schedule of Condition. Rent commencement 26/02/2019. Vendor to top-up any outstanding rent free. Schedule of Condition. Rent commencement 14/06/2018. Vendor to top-up any outstanding rent free. Guaranteed by Anthology Group Limited. Schedule of Condition. Rent deposit of 84,042. Rainmaker Consulting Limited Ground Lower Ground Office 3,575 3,003 31/05/ /05/ /05/ /05/ , Rent deposit of 97,500. Total 16, , Headrent 40,000 Net rent 833,

10 TENURE FURTHER INFORMATION 160 Borough High Street is held long leasehold from The Mayor and Commonalty and Citizens of the City of London (as Trustees of the Bridge House Estates) from 10 February 1984 for a term of 125 years, expiring 9 February 2109 (c. 91 years unexpired). The head rent payable is geared to 12% of full rack rental value, reviewed five yearly. The September 2017 rent review remains outstanding. The passing head rent is 40,000 per annum. Full rack rental value is defined as the rent at which the premises might reasonably be expected to let in the open market with vacant possession of the whole premises for a term of 25 years. L I T T L E D O R R I T C T VAT The property is elected for VAT and it is anticipated that the transaction will be treated as a Transfer of a Going Concern (TOGC). EPC The property has an EPC rating of B (42). Dataroom Access to an online dataroom is available on request. The approximate extent of the site is shown outlined in red on the illustrated plan. The total site area extends to approximately 0.13 acres (0.05 hectares) B O R O U G H H I G H S T R E E T 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. PLANNING AND REDEVELOPMENT POTENTIAL The property offers significant long term asset management opportunities, with planning consent granted in January 2016 for a roof extension to the main building and a three storey rear extension to provide an additional NIA of c. 5,305 sq ft (c.30% increase). With all of the leases being held outside of the Landlord and Tenant Act (1954), there is the clear opportunity to increase the net lettable area of the building

11 PROPOSAL Offers are invited in excess of 13,000,000, subject to contract and exclusive of VAT, for the leasehold interest. A purchase at this level reflects a net initial yield of 6.00% and a capital value of 793 per sq ft, assuming purchaser s costs of 6.80%. CONTACT For further information or to arrange an inspection of 160 Borough High Street please contact the vendor s agent: Sean Howes +44 (0) sean.howes@cushwake.com James Willson +44 (0) james.willson@cushwake.com Adam Stephens +44 (0) adam.stephens@cushwake.com Cushman & Wakefield LLP ( Cushman & Wakefield ) is not authorised or regulated by the UK Financial Conduct Authority. Cushman & Wakefield does not provide recommendations or advice on financial investments, such units in Jersey Property Unit Trusts, and are not authorised under the Financial Services and Markets Act 2000 to circulate offering documents or arrange transactions in financial investments, such as units in Jersey Property Unit Trusts. Cushman & Wakefield s role in connection with the sale of the Property is strictly limited to providing recommendations or advice and/or making arrangements in respect of the Property. Any investment in units in Jersey Property Unit Trusts should only be made after seeking the advice of an appropriately authorised or regulated financial advisor. Misrepresentations Act 1967: (i) Although maximum care has been taken to ensure the accuracy of the information contained within these particulars, such information is subject to change and confirmation. (ii) No liability will be accepted by C&W LLP for any loss arising from information contained within these particulars as it may have been provided by a third party source and will require verification. (iii) This report provides a general outline only for the guidance of prospective purchasers and does not constitute the whole or any part of an offer or contract. (iv) No employee of C&W LLP has the authority to make or give any representation or warranty or enter into any contract whatsoever in relation to the property. (v) Rents and prices stated within this report may be subject to VAT. May (Q4040)