City Road London EC1 Reversionary Multi-let Freehold Office Investment in the Heart of Tech City
2 186 City Road London EC1 Executive Summary 186 City Road offers a unique reversionary asset management opportunity in the tech belt between Clerkenwell and Shoreditch. Freehold Prominent corner office building comprising 39,106 sq ft (3,632.7 sq m) arranged over lower ground, ground and five upper floors Located approximately 150 metres to the north of Old Street Silicon Roundabout in the heart of Tech City and surrounded by a number of large scale mixed use developments The reception area and second floor have undergone a comprehensive refurbishment designed by Ben Adams Architects Multi-let to five tenants on eight leases with an average weighted term of 3.74 years to expiry and a term certain of 2.31 years Total current rent of 1,005,032 per annum, representing a low passing rent of 25.70 per sq ft overall Numerous asset management opportunities with well timed lease events providing the opportunity to take advantage of recent and ongoing rental growth Offers in excess of 19,800,000 are invited for the Freehold interest, subject to contract, reflecting a net initial yield of 4.8% (assuming purchaser s costs of 5.8%), and a low capital value of 506 per sq ft
186 City Road London EC1 3
4 186 City Road London EC1 Location 186 City Road occupies a prominent corner position on the key thoroughfare of City Road, at its junction with Cayton Street, approximately 150 metres to the north west of Old Street Roundabout. Old Street Roundabout is the principal northern gateway into the City of London with City Road and Old Street the primary arterial roads connecting it with Angel and Kings Cross, Holborn and the West End. In November 2010 the government set out its ambition to establish the area around Old Street as one of the world s great technology centres and a tech firm hub, by supporting the existing cluster of organisations. A number of large multi-national companies including Cisco and Facebook have moved into the area, with Google opening an innovation centre, Vodafone bringing its Ventures Investment Fund and Amazon creating a digital media development centre. Other major occupiers around Silicon Roundabout include AMEC Group Ltd, Inmarsat Plc, First Group Plc, Thomson Reuters, Sporting Bet Plc and National Rail.
C I T Y R O A D 186 City Road London EC1 5 Local Occupiers S H E P H E R D E S S WA L K B AT H S T R E E T B U N H I L L R O W City Road London EC1 E A S T R A O D 2 9 30 CAYTON ST C I T Y R O A D 29 16 22 28 3 24 O L D S T R E E T 26 17 21 OLD STREET 10 O L D S T R E E T 14 13 8 19 4 11 12 20 25 G R E AT E A S T E R N S T R E E T 6 7 23 18 27 1 15 5 F O L G Not to scale. Indicative only. 1. Google 2. Sainsburys 3. Plan International 4. Yougov Plc 5. Cass Business School 6. ORMS 7. Interactive Data 8. Royal Mail 9. Pret a Manger 10. Inmarsat Plc 11. IDT Global Ltd 12. Thomson Reuters 13. Cross Border Ltd 14. Durrants Ltd BROADGATE 15. Bank of Baroda M O O 16. GBST Wealth 17. Avanti Communications MOORGATE 18. MindCandy 19. Simply Media 20. Morningstar 21. Media and Marketing with Impact 22. Digital Gurus 23. i-d 24. Somethin Else 25. Circus Creative 26. Moving Brands 27. Moo Print 28. Griffin Marine Travel Ltd LIVERPOOL STREET 29. Moorfields Eye Hospital 30. Jamie Oliver s Fifteen
6 186 City Road London EC1 LIVERPOOL STREET OLD STREET MOORGATE
Vauxhall Elephant & Castle Cutty Sark for Maritime Greenwic 186 City Road London EC1 7 Communications 186 City Road benefits from excellent communications given its proximity to a number of key transport hubs. E Old Street High Barnet Liverpool Street Totteridge & Whetstone Farringdon Cockfosters Oakwood Woodside Park Southgate Mill Hill East West Finchley Arnos Grove Approximately 1.25km to the Approximately 1.5km to the Numerous bus stops are Bounds Green south east Finchley Central south west located along City Road and Wood Green Old Street providing services East Finchley Circle, Central, Metropolitan Circle, Metropolitan and to the West End, City and Harringay and Hammersmith & City Hammersmith Turnpike & Lane Highgate City Green Lanes other areas of London Underground lines Crouch Underground Hill lines South Tottenham Edgware Approximately 150m to the south of 186 City Road Burnt Oak Colindale Northern line services south to London Bridge Station Hendon Central and north to King s Cross St Pancras Brent Cross Archway Manor House Seven Blackhorse Mainline services to the Mainline services providing Sisters Road Golders Green Gospel Mainline services to the north, north Oak including Stansted Tufnell Park the Upper only Holloway north south mainline Hampstead Tottenham including Peterborough, Hampstead Heath Airport rail route that crosses Hale ll Cambridge and Kings Lynn London, Arsenal Finsbury Kentish Town linking Gatwick Park Finchley Road esden Green A station for Crossrail Airport and Luton Airport Walthamstow & Frognal Holloway Road Kentish Queen s Road Belsize Park anticipated Town West to be completed Kilburn Caledonian Road Highbury & in 2018 A station for Crossrail Islington Dalston A Tfl bicycle docking station West Hampstead Chalk Farm anticipated to be completed Kingsland Camden is located immediately to the Road in 2018 front Hackney of the site Finchley Road Camden Town Caledonian Central Road & Canonbury Swiss Cottage Barnsbury uth Dalston Junction pstead are d dgware Road ter reet ton ter Lancaster Gate South nsington Bond Street Victoria Baker Street Regent s Park Oxford Circus Green Park St. James s Park Great Portland Street Warren Street Piccadilly Circus Westminster Euston Goodge Street Tottenham Court Road Waterloo Charing Cross Euston Square Russell Square Holborn Covent Garden Leicester Square Temple Embankment King s Cross St. Pancras Farringdon Chancery Lane Mansion House Blackfriars Angel Barbican St. Paul s Cannon Street Bank Old Street Moorgate Monument London Bridge Liverpool Street Aldgate Tower Hill Fenchurch Street Bermondsey Haggerston Hoxton Shoreditch High Street Aldgate East Tower Gateway Rotherhithe Canada Water BUSES Bethnal Green Shadwell Wapping Bow Church Stepney Green Whitechapel Limehouse Mile End Westferry West India Quay Canary Wharf Heron Quays South Quay Walthamstow Central Theydon De Loug Buckhur Wood South Woo Snares Leytons Leyton Midland Road Stratford International Poplar Le Puddin Mill Lan Bromley by-bow East India al Pimlico Southwark Crossharbour Mudchute Lambeth North Borough Island Gardens
8 186 City Road London EC1 Local Developments The area boasts a vibrant mixture of commercial, hotel, retail and residential uses and is set to benefit from further commercial developments as shown below:- 1. White Collar Factory, Old Street Yard A Derwent London 278,000 sq ft office and retail scheme, together with 10,000 sq ft of residential. Scheduled for completion in 2016. Further information is available at whitecollarfactory.com 2. Crown House, 145 City Road Rocket Investments has recently been granted planning permission for a 30 storey residential tower and an 80,000 sq ft office HQ building. 3. The Bower Building, 207 Old Street A Helical Bar and Crosstree Real Estate scheme comprising 320,000 sq ft of office accommodation together with restaurant and retail. 4. Eagle House, 161 City Road A Mount Anvil scheme comprising a 30 storey tower providing 206 apartments, 40,000 sq ft of offices, a 12,000 sq ft Sainsbury s and a Pret.
186 City Road London EC1 186 CITY ROAD CROWN HOUSE, 145 CITY ROAD WHITE COLLAR FACTORY THE BOWER BUILDING, 207 OLD STREET EAGLE HOUSE, 161 CITY ROAD 9
10 186 City Road London EC1 Description 186 City Road is an attractive period building comprising 39,106 sq ft (3,632.7 sq m) of flexible office accommodation arranged over lower ground, ground and 5 upper floors. The property benefits from a good specification having been comprehensively refurbished in 2006. The reception and second floor have recently undergone a subsequent refurbishment, designed by Ben Adams Architects. The specification includes: 2nd floor Refurbishment Exposed ceilings 3.1 m floor to ceiling height VRF heating and cooling system Suspended LG7 lighting Exposed duct work 150 mm raised floor 3 superloos and 1 disabled WC 1 shower 2006 Refurbishment VRV air conditioning Metal tiled suspended ceilings Recessed LG3 compliant lighting 2 X 8 person passenger lifts Male and female WCs on office floors Showers on the lower ground floor Newly refurbished 2nd floor
186 City Road London EC1 11 Newly refurbished ground floor reception
12 186 City Road London EC1 Accommodation The building has been measured by Plowman Craven in accordance with the RICS Code of Measuring Practice (6th Edition) and comprises the following net internal areas:- Floor Use Net Internal Area Sq M Sq Ft 5th Office 476.3 5,127 4th Office 546.3 5,880 3rd Office 553.3 5,958 2nd Office 542.7 5,842 1st Office 541.9 5,833 Ground Office 416.4 4,483 Reception Reception 80.7 869 Lower Ground Office 475.1 5,114 Total 3,632.7 39,106 Floor Plans Ground Floor Second Floor Not to scale. For identification purposes only.
186 City Road London EC1 13 1st floor 4th floor
8 to 26 197 to 207 179 to 189 14 186 City Road London EC1 Tenure Freehold. 193 161 195 TCBs 190 to 196 BATH STREET 1 to 5 Works 186 188 CITY ROAD CAYTON STREET 17 to 25 29 27 e Instit Opht Cayton Place Moorfields Eye Hospital Not to scale. For identification purposes only. This plan is based upon an Ordnance Survey Map with the sanction of the controller of HM Stationary Office. Crown Copyright reserved. Tenancy The property is multi-let in accordance with the tenancy schedule below. All of the below tenancies have been excluded from the security of tenure and compensation provisions of sections 24-28 of the Landlord and Tenant Act 1954 (as amended). Floor Area (Sq Ft) Area (Sq M) Tenant Lease Start Lease Expiry Break Rent Review 5th 5,127 476.3 Emprise Services Plc 22/06/07 21/06/17 - - 29.00 148,683 Rent (psf) Rent (pa) 4th 5,880 546.3 ORC International Ltd 25/03/11 24/03/21 24/03/16* 25/03/16 22.50 132,300 3rd 5,958 553.3 Pitney Bowes Ltd 12/07/07 11/07/17 11/07/15* - 28.00 166,824 2nd 5,842 542.7 TransferWise Ltd 12/03/14 11/03/19 - - 37.50 219,075 1st 5,833 541.9 Blyth & Blyth 13/08/07 12/08/14 - - 30.00 174,990 Consulting Engineers Ltd G West 2,488 231.1 ORC International Ltd 25/03/11 24/03/21 24/03/16* 25/03/16 20.00 49,760 G East 1,995 185.3 ORC International Ltd 25/03/11 24/03/21 24/03/16* 25/03/16 20.00 39,900 Reception 869 80.7 - - - - - - - LG 5,114 475.1 Emprise Services PLC 05/07/10 21/06/17 - - 14.37 73,500 TOTAL 39,106 3,632.7 25.70 1,005,032 * Break option on 6 months notice.
186 City Road London EC1 15 Tenant Covenants Emprise Services PLC Turnover: 93,838,086 Net Profit: 2,339,385 Emprise is a support services company specializing in cleaning and security with a track record of delivering facilities solutions to retail premises, leisure facilities, theatres, hotels, corporate offices and managing agents. ORC International Turnover: 11,583,550 Net Profit: 694,506 ORC International is a global market research firm, which integrates people, methods, technology and insights to address their clients strategic issues, challenges and opportunities. TransferWise Limited Net Worth: 2,725,028 Net Assets: 2,722,943 TransferWise is a peer-to-peer money transfer service launched in January 2011. Blyth & Blyth Consulting Engineers Turnover: 7,324,979 Net Profit: 462,164 Blyth & Blyth are active across all sectors of the construction industry, their teams of civil, structural, mechanical and electrical engineers deliver projects for a broad range of both public and private sector Clients throughout the UK. Pitney Bowes Limited Turnover: 206,858,000 Net Profit: - 9,126,000 Pitney Bowes provides technology solutions for small, mid-size and large firms that help them connect with customers. Pitney Bowes Software Limited have provided an authorised guarantee agreement following assigning their lease. Tenant income % Emprise Services PLC 21.2% ORC 21.1% Transfer Wise Ltd 20.9% Blyth & Blyth Consulting Engineers 20.8% Pitney Bowes 16%
16 186 City Road London EC1 Market Commentary Shoreditch and the area immediately surrounding Old Street roundabout has witnessed significant rental growth over the past 12 months, driven mainly by occupier demand in the creative sectors and the emergence of Old Street as a credible alternative to Soho and Clerkenwell. Address Tenant Floor Size (sq ft) Headline Rent (psf) Term (Break) The Buckley Building, 49 Clerkenwell Green EC1 Deloitte Digital 1st 26,388 57.50 15 (12) Olivers Yard, 55-71 City Road EC1 ORMS Architects 4th 6,500 50.00 10 (5) Morelands, 5-7 Old Street EC1 Spark 44 Gnd & 1st 8,637 49.50 10 (5) The Bryant Building, 77-79 Great Eastern Street EC2 Capco Holdings Limited Whole Building 23,250 45.00 15 (12) Northburgh House, 10 Northburgh Street EC1 ACSN Part 2nd 1,987 42.50 5 (3) 18-30 Leonard Street EC2 Ostmodern Gnd & 1st Gnd - 366 1st - 4,960 42.50 10 (5) 18-19 Kirby Street EC1 Fold 7 Gnd & L Gnd 6,800 38.50 10 (5)
186 City Road London EC1 17 Planning EPC VAT The property is located within the London Borough of Islington and is not listed. The EPC report is available in the dataroom. The property has been elected for VAT. It is envisaged that the sale will take place by way of a Transfer of a Going Concern. Proposal The Vendor is seeking offers in excess of 19,800,000 for the Freehold interest, subject to contract, reflecting a net initial yield of 4.8% following purchaser s costs of 5.8%, and a low capital value of 506 per sq ft. Further Information For further information, to gain access to the dataroom or to arrange an inspection of the property please contact: Daniel Hesketh +44 (0) 20 7409 8008 +44 (0) 7787 562 061 dhesketh@savills.com Henry Timmis +44 (0) 20 7409 8915 +44 (0) 7972 000 248 htimmis@savills.com Emma Steele +44 (0) 20 7409 8892 +44 (0) 7752 406 698 esteele@savills.com James Abrahams +44 (0) 20 7330 1979 +44 (0) 7968 056 536 james.abrahams@allsop.co.uk James Crawford +44 (0) 20 7330 1977 +44 (0) 7901 552 717 james.crawford@allsop.co.uk Marsha Rabinovich +44 (0) 20 7330 1972 +44 (0) 7876 140 457 marsha.rabinovich@allsop.co.uk Important Notice Savills, Allsop LLP and their clients 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 neither Savills nor Allsop LLP have tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. June 2014 (Q2859)