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26 THROGMORTON STREET, LONDON EC2

PRIME CITY INVESTMENT

FOR SALE

26 THROGMORTON STREET, EC22

INVESTMENT SUMMARY

LOCATION

A core City of London location within a 150m of the Bank of England.

Close by to excellent communications with Bank Underground Station and Liverpool Street Mainline and Underground Station.

A vibrant City position surrounded by a wide variety of retail, bars, cafés, restaurants and amenities.

DESCRIPTION The building comprises 22,336 sq ft (2,075.1 sq m) of offices, ancillary and public house/restaurant accommodation over lower ground, ground and five upper floors.

The building was reconstructed behind the Grade II listed façade in 2000 to provide highly specified offices including four pipe fan coil air-conditioning, raised floors and metal tiled suspended ceilings.

TENURE

An effective 150 year long leasehold interest from November 1998 i.e. over 133 years unexpired at a ground rent based on 5% of net rents received.

TENANCIES

Multi-let to 6 office tenants with lease expiries and break options between June 2015 and March 2021 at a low average rent of approximately £40 per sq ft (including 12 months rental top up on the 2nd and 5th mezzanine floors at £52.50 per sq ft).

Approximately 19% of the income is secured to Greene King until Sept 2024 (i.e. over 9 years unexpired) at just over £25 per sq overall.

Approximately 41% of the office income is secured until at least March 2020, with an average weighted unexpired term for the building of 4.6 years to expiries and 3.8 years until earliest determination (including the rental top ups).

The net rent is £753,392 per annum (assuming an estimated current ground rent of £36,506 per annum).

PROPOSAL

Offers in excess of £16m, subject to contract, reflecting a net initial yield of 4.46% (after deducting purchaser’s costs of 5.8%) and a capital value of £716 per sq ft.

The property provides an excellent opportunity to drive rents forward in the short to medium term by actively managing the property to take advantage of the improving City of London rental market.

A prime multi-let City of London investment opportunity in a central and vibrant location.

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30 ST MARY AXE

HERONTOWER

TOWER 42 THE LEADENHALL BUILDING

LLOYD’S BUILDING

125 OLD BROAD STREET

LIVERPOOL STREET STATION

20 FENCHURCH STREET

THE ROYAL EXCHANGE

BANK OF ENGLAND

BANK STATION

LOCATION

Throgmorton Street is situated within the heart of the City of London in an established and vibrant location and is well positioned to benefit from the City’s excellent transport communications.

The building is in a prime and prominent City location on the northern side of Throgmorton Street at its junction with Old Broad Street and Austin Friars. Throgmorton Street is a prestigious address within the core of the City’s financial district and close to the Bank of England.

Over recent years there have been a number of high quality developments schemes in the immediate vicinity which have greatly enhanced the public realm and streetscape. These schemes have contributed to the area’s continued importance as a high end office location and include developments such as 125 Old Broad Street, 60 Threadneedle Street, Tower 42 and Lion Plaza.

Also on Throgmorton Street, Stanhope are currently redeveloping Angel Tower, a new 280,000 sq ft office scheme which will further improve the surrounding streetscape and provide additional amenities to the area.

There are a wide variety of amenities within close proximity to the property including, restaurant, bars, pubs, cafés, food outlets, and gyms. Close by is the high end boutique retail location in and around the Royal Exchange which is home to luxury retailers such as Hermes, Louis Vuitton, Tiffany, Mont Blanc, Smythsons and chocolatier Paul Young.

The central location of the property is also home to many of the world’s major financial occupiers including Blackrock, Nationwide, Bank of China, ING and Deutsche Bank. Other local occupiers include White & Case, USS Berenberg, DTZ, Talbot Underwriting and Gatehouse Bank.

26 THROGMORTON STREET, EC26

BANK (300m)

Underground: Central, Circle, District, Northern and Waterloo & City lines and DLR

LIVERPOOL STREET (375m)

British Rail: Main line services and Crossrail (from 2018) Underground: Central, Circle, Hammersmith & City and Metropolitan lines

MOORGATE (500m)

British Rail: Main line services and Crossrail (from 2018) Underground: Circle, Metropolitan, Hammersmith & City and Northern lines

CANNON STREET (550m)

British Rail: Main line services Underground: Circle and District lines

T

HEATHROW AIRPORT

HAYES & HARLINGTON HANWELL

EALING BROADWAY PADDINGTON

TOTTENHAM COURT ROAD

CUSTOMHOUSE

TOWARDSMAIDENHEAD

SOUTHALL WEST EALING ACTON MAIN LINE

BOND STREET

FARRINGDON WHITECHAPEL

MARYLAND MANOR PARKLIVERPOOL

STREET

WOOLWICH

ABBEY WOOD

STRATFORDFOREST

GATE

CANARY WHARF

NORTHERN

CENTRAL

OVERGROUND

JUBILEE

PICCADILLY DISTRICTCENTRAL

METROPOLITAN

DLR

BAKERLOO

CENTRAL

HAMMERSMITH & CITY

The property benefits from excellent underground and rail communications provided by the following:

CROSSRAIL

COMMUNICATIONS

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Financial

1 Commerzbank2 Bank of China3 Bank of Ireland4 Investec5 Nationwide6 Deutsche Bank7 First Rand Bank8 USS Berenberg9 Standard Chartered10 Rothschild

11 Aviva Investors12 JP Morgan13 Daiwa Securities14 Blackrock15 VTB16 KBC Bank17 ING18 Smith & Williamson19 China Construction Bank20 Prudential

Insurance

1 Legal & General2 Aon Benfield3 Royal & Sun Alliance4 Allianz5 Hiscox6 AXA7 Willis8 Catlin9 Aviva10 XL Capital

Legal/Other

1 White & Case2 Latham & Watkins3 DTZ4 Sidley Austin5 Kirkland & Ellis6 Davis Polk & Wardwell7 Baker Botts8 Bingham McCutchen9 Steptoe & Johnson10 Bravura Solutions

LOCAL AMENITIES

LOCAL OCCUPIERS

26 THROGMORTON STREET, EC28

RIVER THAMES

THROGMORTON STREET

NEW BANK ENTRANCE (2015)

8

3

7

19

5

6

1

2

4

5

6

78

9

1

3

7

8 10

96

4

5

102

5 MINUTE WALK

3 MINUTE WALK

26 THROGMORTON STREET, EC210

THE BUILDING

The 22,336 sq ft (2,075.1 sq m) building was redeveloped in 2000 behind three Grade II listed façades to provide approximately 16,416 sq ft (1,525.1 sq m) net of high specification office and ancillary accommodation arranged over basement, ground and five upper floors.

The ground floor provides a well configured reception hall providing access to two passenger lifts.

There is a public house/A3 unit on the ground and basement floors which comprises approximately 5,920 sq ft (550 sq m) of gross internal accommodation.

The office accommodation benefits from a high quality specification including:-

– Four pipe fan coil air conditioning

– Fully accessible raised flooring

– Metal tile suspended ceilings with inset lighting

– Two fully automatic eight person passenger lifts

– Male and female WCs and shower facilities on all floors

– Double glazed windows

– Building Management System

– Floor loading of 3.0kN/m2 plus 1.0kN/m2

Pictures from top:

First Floor: Tenant reception Second Floor: Office space

Reception Public House Office Space

Ground First Floor

Mezzanine

Mezzanine

Not to scale. Indicative only.

ACCOMMODATION SCHEDULE

FLOOR USE AREA (SQ M) AREA (SQ FT)

Fifth Mezzanine

Office 145.7 46.8

1,568 504

Fourth Mezzanine

Office 247.1 53.2

2,660 573

Third Mezzanine

Office 278.8 52.5

3,001 565

Second Office 291 3,132

First Mezzanine

Office 297.9 51.6

3,207 555

Ground Office 17.4 187

Ground Pub/Restaurant/A3 285.0 3,068

Basement Pub/Restaurant/A3 265.0 2,852

Basement Storage 43.1 464

TOTAL 2,075.1 22,336

The building has been measured by Plowman Craven Associates in line with the RICS code of measuring practice 6th edition. NB the office areas are provided as net internal measurements and the pub/restaurant/ A3 areas are gross internal.

First Floor: Meeting Room

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TENURE TENANCY

The property is multi-let to six office tenants on leases with expiries and breaks between June 2015 and March 2021 and a public house with a lease that expires in September 2024.

The upper floor office rents range between approximately £26 per sq ft and £41 per sq ft (excluding the ‘top up’) with the average office rent being approximately £40 per sq ft including the ‘top up’.

The pub accommodation is let to Greene King plc, trading as Phoenix for a term of 25 years from 29th September 1999, to expire 28th September 2024; over 9 years unexpired. The current rent passing is £150,000 per annum which equates to just over £25 per sq ft overall.

The total overall income including the proposed rental ‘top up’ is £789,898 per annum which breaks back to a rent of £35.36 per sq ft.

The net rent (after deducting the current ground rent) is £753,392.

26 THROGMORTON STREET, EC212

The building is held on a long lease from The Drapers’ Company for an effective term of over 133 years unexpired at a ground rent geared to 5% of rents received.

TERM

The term is for 99 years from 3 November 1998 and expiring 3 November 2097 with a tenant’s option to renew for a further 51 years, which may be exercised at any time after the end of the 78th year of the term on not less than six months’ notice.

RENT

The ground rent payable is defined as the ‘minimum rent’ plus the ‘supplemental rent’ for the respective rent period ending 24 December each year.

The ‘supplemental rent’ for each rent period is 5% of the rents received by the tenant from the occupational underleases during the respective rent period, minus the ‘minimum rent’.

The ‘minimum rent’ is calculated as 2.5% of the market rent for the premises; the ‘minimum rent’ is reviewed on an upward only basis every five years. The ‘minimum rent’ is currently £15,000 per annum and the next review is due on 10 May 2015.

We estimate the ground rent to be in the order of £36,506 based on the current rent passing.

A copy of the headlease is available on request.

Austin Friars House

120

13 to 17

12326

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10

4

7

9

3

2

Adams Court

27

THROGMORTON STREET

AU

ST

IN F

RIA

RS

Bank

Bank

60

2

6

4

29

26

Dutch ChurchAugustine

House

Priory(site of)

OLD

BRO

AD

STREET

Not to scale. For identification purposes only. This plan is based upon an Ordnance Survey Map with the sanction of the controller of H.M. Stationery Office. Crown Copyright reserved.

TENANT FLOOR USE AREA (SQ FT)

LEASE START

LEASE EXPIRY (TENANT BREAK OPTION)

RENT REVIEW

PASSING RENT (PA)

PASSING RENT (PSF)

COMMENTS

Clearance Capital Limited

5th Office 1,568 01/04/2011 31/03/2016 £56,664 £36.14 Outside the 1954 Act

GO Investment Partners LLP

5th Mezz Office 504 15/11/2010 23/06/2015 (plus a 12 month rental top up from completion)

£26,4601 £52.50 Outside the 1954 Act The vendor will top up the rent to £52.50 psf for 12 months from completion

Lighthouse Group Plc

4th Office 2,660 14/03/2011 13/03/2021 14/03/2016 £123,000 £37.93 Inside the 1954 Act (Underlet to The Association of Independent Financial Advisors)

3 months rent free if the March 2016 break is not exercised

4th Mezz Office 573 (14/03/2016)

Basement Storage 38 £10.002

ADVFN Plc 3rd Office 3,001 31/03/2010 30/03/2020 31/03/2015 £123,700 £40.80 Inside the 1954 Act

Basement Storage 126 £10.002

ADVFN Plc 3rd Mezz Office 565 18/08/2010 30/03/2020 31/03/2015 £15,000 £26.55 Inside the 1954 Act

GO Investment Partners LLP

2nd Office 3,132 24/06/2010 23/06/2015 (plus a 12 month rental top up from completion)

£164,4301 £52.50 Inside the 1954 Act The vendor will top up the rent to £52.50 psf for 12 months from completion

Loyens & Loeff 1st Office 3,207 24/06/2010 23/06/2020 24/06/2015 £125,000 £33.23 Inside the 1954 Act3

1st Mezz Office 555

Cederberg Ground Office 187 23/06/2010 19/06/2015 £5,644 £30.02 Licence to occupy (the licence fee is £9,294 psf with £3,650 apportioned to service charge and the remainder as rent)

Greene King Neighbourhood Estate Pubs Ltd (trading as Phoenix)

Ground Public House/ A3

3,0684 29/09/1999 28/09/2024 29/09/2019 £150,000 £25.34 Inside the 1954 Act(September 2014 review remains undocumented)

Basement 2,8524 (overall)

Vacant Basement Storage 300 -

TOTAL 22,336 £789,898

1 The rent passing figure stated is the ‘top up’ amount

2 £10 per sq ft assumed on basement accommodation where applicable in order to analyse the office rent on a per sq ft basis

3 The tenant has a 9 month rent free period from 20/06/2015 which the vendor will cover at the current rent passing

4 The public house/A3 unit has been measured as a gross internal area

TENANCY SCHEDULE

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26 THROGMORTON STREET, EC2

ReceptionFifth Floor: General

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TENANT INFORMATION

LOYENS & LOEFF 16% of rental incomeLoyens & Loeff is a leading independent Benelux law firm, offering top-level advice for international businesses, financial institutions and government bodies. Its London office specialises in Benelux tax, corporate, banking and fund matters and who provides Benelux law expertise in these areas to the UK market. Loyens & Loeff has approximately 1,500 employees worldwide.

GO INVESTMENT PARTNERS GROUP LLP16% of rental incomeD&B rating of 2A 1 which represents a minimum risk of business failure. GO Investment Partners (“GO”) is an independent partnership, majority owned by its senior executives who have been managing constructive activist funds since 1998.

ADVFN PLC17.5% of rental incomeD&B rating of 1A 2 which represents a lower than average risk of business failure. ADVFN is a financial market website. It provides online data and services to private investors such as stock quotes, charts, news, FOREX, futures & options and stock screeners.

LIGHTHOUSE GROUP PLC 15.5% of rental incomeD&B rating of N2 which represents a lower than average risk of business failure. Lighthouse Group is an AIM-listed company which provides financial advice to personal and corporate clients through specialist advisers located throughout the UK.

CLEARANCE CAPITAL LTD7% of rental incomeD&B rating of D3 which represents a higher than average risk of business failure. Clearance Capital is an investment management firm which specialises in European real estate capital markets. The firm was established in 2008.

GREENE KING NEIGHBOURHOOD ESTATE PUBS LTD19% of rental incomeD&B rating of 5A1 which represents a minimum risk of business failure. Greene King are one of the leading pub and brewing companies in the UK who run 1,900 managed, tenanted, leased and franchised pubs, restaurants and hotels. Greene King have been brewing award-winning ales for more than 200 years. The lease is guaranteed by Greene King plc.

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Ground Floor: Public House

PLANNING

The property is Grade II listed and is located in the historic Bank Conservation Area as designated by the City of London Corporation planning department.

EPC

The Energy Performance Assessment Rating for the building is E105.

CAPITAL ALLOWANCES

There are no available capital allowances for the property.

VAT

The building has been elected in respect of VAT. The sale may be treated as a Transfer of a Going Concern (TOGC) depending on the purchaser’s VAT status.

DATA ROOM

Further information can be found on a dedicated online data room. Access to the data room is available on request.

PROPOSAL

Offers in excess of £16,000,000, exclusive of VAT, subject to contract, for the leasehold interest.

A purchase price of this level reflects a net initial yield of 4.46% (after deducting purchaser’s costs of 5.8%) and a capital value of £716 per sq ft.

26 THROGMORTON STREET, EC216

FURTHER INFORMATION

For further information or to arrange an inspection please contact the sole selling agent:

Mike PopeD +44 (0)20 3440 9807 M +44 (0)7799 664 945mike.pope@gryphonpropertypartners.com

Jeremy TriceD +44 (0)20 3440 9802 M +44 (0)7798 636 599jeremy.trice@gryphonpropertypartners.com

Misrepresentation Act 1967: Gryphon Property Partners for themselves and for the vendor(s) or lessor(s) of this property whose agents they are, give notice that: 1. These particulars do not constitute, nor constitute any part of, an offer or contract. 2. None of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact. 3. Any intending purchaser or lessee must satisfy himself by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 4. The vendor(s) or lessor(s) do not make or give and neither Gryphon Property Partners nor any person in their employment has any authority to make or give, any representation or warranty whatever in relation to this property. Finance Act 1989: Unless otherwise stated all prices and rents are quoted exclusive of VAT. Property Misdescription Act 1991: These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. May 2015

On behalf of The Church Commissioners for England:

www.cube-design.co.uk (Q3137)