31 Old Burlington Street, Mayfair, London W1S 3AS 020 7292 7404 www.burlingtonpartners.com

130 City Road, London EC1V 2NW Central London Multi-Let Investment Opportunity with Considerable Active Management Potential

Investment Highlights

¨ Freehold office building totaling 13,008 sq ft (1,208.44 sq m) arranged over lower ground, ground and five upper floors.

¨ Situated immediately north of Old Street Roundabout and Underground Station.

¨ Multi-let to two tenants and providing a total income of £205,597 pa reflecting a very low average passing rent of only £15.81 psf overall.

¨ Weighted Average Unexpired Lease Term (WAULT) of 3.9 years to expiry and 1.5 years to breaks.

¨ Fixed rental uplift in March 2013. ¨ Exceptional asset management opportunities to enhance value. ¨ Highly reversionary. ¨ Potential change of use to retail (A1/A2/A3) on lower ground & ground

floors, and residential on upper floors, subject to planning. ¨ We are instructed to seek offers in excess of £3,240,000 subject to

contract and exclusive of VAT, reflecting a Net Initial Yield of 6.0% (assuming the deduction of purchasing costs of 5.80%), a guaranteed reversionary yield of 6.11% in March 2013, and a low capital value of £249 psf.

       

 

Location 130 City Road is prominently situated on the west side of City Road immediately north of Old Street Roundabout and Underground Station. The immediate surrounding area in and around Old Street Roundabout is experiencing a constant transformation, and is located within the heart of Tech City - a core focus area for IT related businesses. Various major technology companies have been attracted to the area including the likes of Google, Amazon and Mind Candy. Transport links are excellent with Old Street, Angel, Farringdon, Barbican, Moorgate, Liverpool Street and Shoreditch High Street all situated within a 1.5 mile radius of the subject property, providing access to the Northern, Central, Metropolitan, Circle and Hammersmith & City Lines, along with London Overground and Thameslink services. There are a number of major redevelopment sites within the immediate & surrounding vicinity, which is a clear indication of the high level of investment being committed to this location: ❶ White Collar Factory: Planning consent granted for a 289,000 sq ft predominantly office scheme at the south west corner of Old Street roundabout. Developer: Derwent London ❷ City Forum: Planning consent granted for a 27 storey residential scheme to include 720 dwellings, 116,500 sq ft of offices, 35,000 sq ft of retail/restaurants and a 125 bed hotel. Developer: Berkeley Group ❸ Eagle House: 27 storey mixed use scheme comprising 276 dwellings and 68,000 sq ft of commercial space. Developer: Mount Anvil ❹ 207 Old Street: Currently under offer for major mixed-use redevelopment within a c.3.12 acre site.

 

     

Description 130 City Road is an attractive period office building arranged over lower ground, ground and five upper floors totaling 13,008 sq ft (1,208.44 sq m). The building benefits from highly efficient open plan air-conditioned floor plates, with excellent natural light coming from both the front and rear of the building. Furthermore, a passenger lift provides direct access to all floors. The ground floor benefits from a generously sized reception area, which in our opinion has strong potential for alternative uses including A1/A2/A3 Retail and D1 Use, whilst creating a self-contained entrance to the ground floor office and upper floors. The office accommodation benefits from the following specification:

¨ Air conditioning ¨ Suspended ceilings ¨ Raised floors ¨ 5 person passenger lift ¨ WC’s on each floor ¨ Excellent natural light

Accommodation We have been advised of the following Net Internal Areas for the premises*: Floor Use Area (Sq Ft) Area (Sq M) Fifth Office 1,938 180.04 Fourth Office 1,960 182.08 Third Office 1,960 182.08 Second Office 1,964 182.46 First Office 1,921 178.46 Ground Office 1,585 147.25 Lower Ground Office 1,680 156.07 13,008 1,208.44 *Subject to verification

     

 

Tenancy

Floor Tenant Area (Sq Ft)

Lease Start Lease Expiry

Break (T) Rent Review

Rent (PA)

Rent (PSF)

1954 Act

Comments

Fifth Newsdesk Communications Ltd.

1,938 26/04/2009 25/03/2014 £105,597 £13.50 Outside Fixed uplift on 26/03/2013 to £109,508 pa Service charge cap at £42,000 pa (£8.10 psf) + RPI

Fourth 1,960 Third 1,960 Second 1,964

First Invomo Ltd. 1,921 26/03/2012 25/04/2019 25/04/2014 (6 months notice)

26/04/2014 £100,000 £19.28 Outside Rent deposit of £35,000 Ground 1,585

Lower Ground

1,680

13,008 £205,597 £15.81

Covenants Invomo Limited Invomo is a public electronic communications network (regulated by Ofcom) providing an extensive range of hosting services to improve its customers' communication with their customers. Further information is available at there website: www.invomo.com Their latest published accounts as at 31st December 2011, show a turnover of approximately £14.081m, an operating profit of £1.092m and shareholders funds of £987,000. The ultimate holding company – GCI Telecom Group Limited, is one of the largest managed telecommunication providers in the UK and has a turnover of over £45 million and over 130 staff across 6 offices within the UK. Further information is available at there website: www.gcicom.net Newsdesk Communications Limited Newsdesk Communications Ltd, part of Newsdesk Media, is a global media services organisation specialising in the production of high-calibre publications on behalf of prestigious public and private sector organisations worldwide.

   

 

 

Based in London and Washington, Newsdesk Communications Ltd. combines compelling editorial and design with closely targeted distribution to deliver maximum impact.

Newsdesk Communications Ltd. also offers a fully integrated event management service, creating and delivering high-concept international conferences and seminars, award ceremonies, gala dinners and media engagement. Their latest published accounts as at 31st March 2012, show a turnover of approximately £4.83m, and an operating profit of £824,000. Further information is available at there website: www.newsdeskmedia.com

Tenure The property is held Freehold under Title Number LN22694.

Planning 130 City Road is located within The London Borough of Islington. The building is not listed but is situated within the Moorfields Conservation Area. Asset Management Opportunities The building offers a number of asset management opportunities to enhance value, including:

¨ A comprehensive refurbishment of the offices. We are of the opinion that ERV’s for newly refurbished Grade A offices will be £17.50 psf on the lower ground, and £30 psf on the ground and upper floors;

¨ Potential to reconfigure the entrance lobby to provide a self-contained retail unit (A1/A2/A3) or D1 use, subject to obtaining the necessary consents;

¨ Potential for a change of use on the upper floors to residential, subject to obtaining the necessary consents.

VAT The property is elected for VAT and as such VAT will be payable on the purchase price. It is envisaged that the sale will be treated as a Transfer Of a Going Concern (TOGC).

 

 

   

EPC

 

 

   

Proposal We are instructed to seek offers in excess of £3,240,000 subject to contract and exclusive of VAT, reflecting a Net Initial Yield of 6.0% (assuming the deduction of purchasing costs of 5.80%), a guaranteed reversionary yield of 6.11% in March 2013, and a low capital value of £249 psf.

Further Information For further information, please contact:

31 Old Burlington Street, Mayfair, London W1S 3AS 020 7292 7404 www.burlingtonpartners.com

Adam Velleman David Silver Burlington Partners Burlington Partners E: adam@burlingtonpartners.com E: david@burlingtonpartners.com T: 020 7292 7406 T: 020 7292 7407 M: 07879 477 710 M: 07881 631 674

David Berko Pilcher Hershman E: davidberko@pilcherhershman.co.uk T: 020 7399 8600 M: 07715 008 946    

   

Misrepresentation Clause: Burlington Partners LLP and Pilcher Hershman for themselves, their Associated Companies, their employees and for the vendors or lessors of the properties whose agents they are give notice that:- 1. All particulars or properties provided are given as a general outline only for the guidance of intending purchaser, lessee or tenant, and do not constitute, nor constitute part of, an offer or contract. 2. Whilst all particulars of properties given including but not limited to descriptions, dimensions, references to condition and necessary permissions for use and occupation and maps are believed to be correct and are given in good faith, they are however given without responsibility on the part of Burlington Partners LLP and Pilcher Hershman, their Associated Companies, their employees and or the vendors or lessors as the case may be. 3. None of the statements contained in any particulars is to be relied upon as a statement or representation of fact. 4. Any intending purchaser or lessee or tenant should not rely on any particulars provided by us and must satisfy themselves by inspection or otherwise as to the correctness of each statement made in such particulars. 5. The vendor or lessor (as the case may be) do not make or give and neither Burlington Partners LLP and Pilcher Hershman, their Associated Companies or any person in their employment have any authority to make or give any representation or warranty whatever in relation to any properties. October 2012