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PRIME CITY OF LONDON DEVELOPMENT OPPORTUNITY
111CANNON STREET
LO N D O N E C 4
Prime City of London commercial development opportunity.
New 150 year Long Leasehold interest based on 5 yearly upwards only rent reviews increased from a minimum of £100,000 pa in line with RPI.
Planning permission was granted on 15th October 2013 for the demolition of the existing building above first floor level and the erection of a new mixed use building
including two basements, ground and 7 upper floors to provide:
Office (B1) – 1,301.8 sq m (14,012.4 sq ft)
Retail (A1) – 338.3 sq m (3,641.4 sq ft)
Double height café (A3) – 75.4 sq m (811.6 sq ft)
Total – 1,728.25 sq m (18,602.7 sq ft)
Opportunity to deliver a prime Grade A office building into one of the strongest City of London leasing markets of recent times.
The property is currently multi-let to 20 tenants producing £270,943.12 per annum with vacant possession achievable within 6 months.
We have been instructed to seek offers in excess of £7,000,000.
KEY INVESTMENT CHARACTERISTICS
111CANNON STREET
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111 Cannon Street occupies a highly prominent site on the north side of Cannon Street, right in the heart of the City of London. Cannon Street station is almost immediately opposite the property and is one of central London’s major transport hubs, serving over 27 million passengers annually. The Bank of England is approximately 200m to the north and Bloomberg Place, with the new entrance to Bank station, is less than 200m to the west.
Bloomberg’s new European headquarters, together with a new entrance to Bank station on the same site, are currently under construction with completion scheduled for 2016. This landmark development will provide approximately 61,316 sq m (660,000 sq ft) of predominantly Grade A office accommodation across two buildings, and will bring 30,000 sq ft of new retail amenity to this part of the City.
The area appeals to a diverse range of occupiers from the banking, finance, insurance, recruitment and TMT sectors. Major occupiers within the locality include NM Rothschild, Aviva, Gallagher Heath, Nomura, PNB and Aberdeen Asset Management.
LOCATION
111 CANNON STREET
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RIVER THAMES
111 Cannon Street benefits from excellent communications, being approximately 200m from Bank (Central, Northern, Waterloo & City lines and DLR), Monument (Circle and District lines) and Mansion House (Circle and District lines) Underground stations with Cannon Street Underground (Circle and District lines) and Railway station serving southeast London and Kent almost immediately opposite.
111 Cannon Street is a short walk from the new Crossrail Hubs at Moorgate and Liverpool Street stations, which will provide direct rail lines between Stratford in the east and Maidenhead in the west. The service will enhance public transport capacity across Central London by 20%, with more than 250m passengers estimated to use the service which will link Heathrow, the West End, the City and Canary Wharf. Trains are scheduled to be running from 2018.
COMMUNICATIONS
111 CANNON STREET
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Bloomberg Place
Work is underway on the new Bloomberg European HQ, which will provide 61,502 sq m (662,000 sq ft) of office and retail accommodation across two buildings.
A retail arcade of approximately 1,764 sq m (19,000 sq ft) will be developed along with 1,022 sq m (11,000 sq ft) of retail within the smaller southern block. The development of this new amenity space will result in Bloomberg Place becoming a new retail and dining hub for the City of London, with completion scheduled for 2016.
A new entrance to Bank Station will be incorporated into the north eastern corner of the site.
Bloomberg Place
Bank of England Royal Exchange
BANK
The Walbrook Building
The Foster & Partners designed Walbrook Building is almost fully let to tenants including Gallagher Heath, Worldpay and Vanguard. The building comprises approximately 35,303 sq m (380,000 sq ft) of office accommodation, with 3,704 sq m (39,886 sq ft) of retail and leisure accommodation and was completed in 2010.
Cannon Place
Completed in 2011, Cannon Place provides approximately 35,861 sq m (386,000 sq ft) of office accommodation. Tenants include CMS Cameron McKenna and CBI.
15-17 St. Swithin’s Lane
There are plans expected for a Premier Inn Hub directly adjacent to 111 Cannon Street. The proposed scheme will provide a café, bar, restaurant and more than 50 rooms.
LOCAL DEVELOPMENTS
111 CANNON STREET
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CANNON STREET
MONUMENT
Leadenhall Building 20 Fenchurch Street Canary Wharf The Tower of London
The Walbrook Building
Cannon Place
111 CANNON STREET
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111 CANNON STREET
The London Stone is an historic City of London landmark and forms part of the front elevation of 111 Cannon Street at ground floor level. It is an irregular block of oolitic limestone, the remnant of a once much larger object that had stood for many centuries on the south side of the street.
The name “London Stone” was first recorded in circa 1100. The date and the original function of the Stone are unknown, although it is possibly of Roman origin, and there has been speculation about it since at least the 16th century. Modern claims suggest that it was formerly an object of veneration or has occult significance.
London Stone was a well-known landmark in medieval London, and when in 1450 Jack Cade, leader of a rebellion against the corrupt government of Henry VI, entered the city with his men, he struck his sword on London Stone and claimed to be “Lord of this City”. Contemporary accounts give no clue as to Cade’s motivation, or how his followers or the Londoners would have interpreted his action. There is nothing to suggest he was carrying out a traditional ceremony or custom.
During the 17th century the Stone continued be used as an “address”, to identify a locality. Thus, for example, Thomas Heywood’s biography of Queen Elizabeth I, England’s Elizabeth (1631), was, according to its title page, “printed by John Beale, for Phillip Waterhouse; and are to be sold at his shop at St. Paul’s head, near London Stone”; and the English Short Title Catalogue lists over 30 books published between 1629 and the 1670s with similar references to London Stone in the imprint.
Removed in 1742 to the north side of the street, in 1798 it was built into the south wall of the Church of St. Swithin London Stone which stood here until it was demolished in 1962.
LONDON STONE
111 CANNON STREET
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111 CANNON STREET
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The existing office building was completed in 1961 by Biscoe & Stanton Architects.
Existing Schedule of Accommodation:
FLOOR USE GEA SQ M GEA SQ FT GIA SQ M GIA SQ FT
Sixth Office (B1) 192.5 2,072.0 174.9 1,882.6
Fifth Office (B1) 192.5 2,072.0 174.9 1,882.6
Fourth Office (B1) 241.1 2,595.1 218.5 2,351.9
Third Office (B1) 272 2,927.7 249.1 2,681.3
Second Office (B1) 272 2,927.7 249.1 2,681.3
First Office (B1) 182.7 1,966.5 157.7 1,697.5
Ground Retail (A1) 202.8 2,182.9 184.5 1,985.9
Basement Storage (B1) 272.7 2,935.3 272.7 2,935.3
Sub-Basement Storage (B1) 109 1,173.2 109.0 1,173.3
TOTAL 1,937.3 20,852.9 1,790.4 19,271.7
Retail (A1) 202.8 2,182.9 184.5 1,985.9
Office (B1) 1,734.5 18,670.0 1,605.9 17,285.8
EXISTING ACCOMMODATION
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EXISTING FOURTH FLOOR PLAN
EXISTING GROUND FLOOR PLAN
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Not to scale. Indicative only.
Not to scale. Indicative only.
CA
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S T S W I T H I N ’ S L A N E
S T S W I T H I N ’ S L A N E
Following completion, a Development Agreement will be entered into with a minimum ground rent of £100,000 per annum. The Development Agreement will be for a duration of three years subject to an obligation to commence construction within 18 months.
From practical completion a new 150 year head lease will be granted from the freeholder.
The lease will reserve a minimum ground rent payable of £100,000 per annum.
The rent will be reviewed from practical completion and five yearly thereafter to the greater of:
- £100,000
- The rent reserved immediately before the relevant review date increased in line with RPI
TENURE
16.0m
London Stone
The
ClearyCourt
Yard
Abchurc
h
WA
LB
RO
OK
DO
WG
AT
EH
ILL
CANNON STREET
SA
LT
ER
S' H
ALL
SCOTT'S
YARD
BU
SH
LAN
E
GOPHR
L
AB
CH
UR
CH
LA
NE
HIL
L
PO
UN
TN
EY
SH
ER
BO
RN
ELA
NE
COURT
ST
SW
ITH
IN'S
LA
NE
OXFORD COURT
Church Garden
St Swithun's
102
88
8086
30
29
28
8
5
Cannon
Street
Sta (LRT)
St Mary
2
119
Abchurch
Bank
33
90
8.5
Hall PH
Five ArrowsHouse Sherbourne
House
14
11
to13
110
35
9
10
to12
8
1
3
4
100108
1to
2
70to74
5to
7
76
The Walbrook Building
103
105
111
to109
15
13
23 to 2
1
13
19
20
113117
115
121
135 to 141
17
to78
123
127
5
129133
131
143 to 149
20
15
5
Religare House
18
Not to scale. For identification purposes only. This plan is based upon an Ordnance Survey Map with the sanction of the controller of HM Stationery Office. Crown Copyright reserved.
111 CANNON STREET
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The property is multi-let to 20 tenants in accordance with the following tenancy schedule. Vacant possession of the whole is achievable within 6 months.
* Rolling break upon 3 months notice All rents are inclusive of buildings insurance and service charge.
UNIT/FLOOR USE TENANT NIA AREA (SQ FT)
LEASE START BREAK OPTION LEASE END PASSING RENT £
PASSING RENT PSF
Ground, Basement & Sub-Basement
A1 WH Smith Travel Ltd 6,095 23/07/2012 23/01/2013Landlord
22/07/2014 £95,000.00 £15.58
Units 1&2 (1st) B1 KC Investments Ltd 472 09/12/2013 09/02/2014 Mutual
08/12/2015 £10,800.00 £22.88
Unit 3&4 (1st) B1 Minale Tattersfield & Partners
235 09/05/2014 09/08/2014 Mutual
08/05/2015 £6,000.00 £25.53
Unit 5 (1st) B1 Nordic Energy Plc 243 19/07/2013 19/10/2013 Mutual
18/07/2015 £6,075.00 £25.00
1st Floor (Rear) B1 Anfa Capital Ltd 660 19/06/2014 19/09/2014 Mutual
18/12/2014 £14,850.00 £22.50
2nd Floor (Front) B1 Barrymore Cooper SVS Ltd
1,456 29/04/2014 29/07/2014 Mutual
28/04/2015 £19,719.12 £13.54
2nd Floor (Rear) B1 Trinity Europe Ltd 660 26/06/2013 26/09/2013 Mutual
25/06/2015 £16,500.00 £25.00
3rd Floor (Rear) B1 Stoneway Real Estate Ltd
330 19/04/2013 19/04/2013 Mutual
18/04/2016 £6,480.00 £19.64
Unit 6 (3rd) B1 Kingsley Fisher Ltd 110 08/04/2013 08/04/2013 Mutual
07/04/2016 £2,750.00 £25.00
Unit 7 (3rd) B1 GB & Smith Ltd 325 02/09/2014 02/12/2014 Mutual
01/09/2016 £9,100.00 £28.00
Unit 8 (3rd) & Storage
B1 Deltorion (UK) Ltd 130 13/05/2013 13/05/2014 Mutual
12/05/2015 £3,540.00 £27.23
Unit 9 (3rd) B1 London Financial Markets Ltd
130 31/07/2014 31/01/2015 Mutual
30/07/2016 £2,730.00 £21.00
Unit 10 (3rd) B1 Clear Concepts Ltd 130 25/03/2014 25/04/2014 Mutual
24/03/2015 £2,600.00 £20.00
4th Floor B1 Impulsepay Ltd 1,456 01/01/2014 01/04/2014 Mutual
31/12/2014 £21,840.00 £15.00
5th Floor B1 VMU London Ltd 1,456 30/10/2014 Tenancy at Will
30/04/2015 £24,024.00 £16.50
Unit 11 (6th) B1 Malti Trading Ltd 240 18/06/2014 18/09/2014 Mutual
17/06/2016 £5,340.00 £22.25
Unit 12 (6th) B1 Event Live Media Ltd 385 25/06/2013 25/09/2013 Mutual
24/06/2016 £7,700.00 £20.00
Unit 13 (6th) B1 Blakeney Leigh Ltd 183 07/10/2013 * 06/10/2015 £4,575.00 £25.00
Unit 14 (6th) B1 Manners & Murphy Ltd 183 16/08/2013 16/09/2013 Mutual
15/08/2015 £4,000.00 £21.86
Unit 15 (6th) B1 Event Live Media Ltd 183 21/11/2013 - 20/05/2014 £3,660.00 £20.00
One car parking space is included in the sale.
Total 15,062 £270,943.12 £17.99
TENANCY SCHEDULE
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The proposals incorporate the demolition of all floors above first floor level and part change of use to provide a new 10 storey (incl. two basement floors) mixed use building comprising retail, cafe and office use. The structural concrete frame will be retained from first floor level.
The new build element, together with retained framework, will be clad with Portland stone tiles. Typical upper floors will provide approximately 223 sq m (2,400 sq ft) of Grade A office accommodation, with large floor to ceiling windows facilitating excellent levels of natural light. The smaller 7th floor will provide approximately 61.4 sq m (660.9 sq ft) of office space, and also provide access to the plant room.
A pair of glass doors will provide access to the new 143.7 sq m (1,546.7 sq ft) retail unit which will benefit from prominent frontage to Cannon Street.
Next to the retail entrance a new showcase is incorporated as part of the design scheme to complement The London Stone. This will be an illuminated Bronze Anodised Aluminium cabinet with a descriptive text embossed within the bronze metal sheet telling the story and history of the stone.
The main entrance to the office unit is through a double height frame fronting St. Swithin’s Lane. The double height reception spans over the entire width of the building with frameless glass to the western end allowing natural light from both ends. The reception leads to the lift and stair lobby, and disabled WC.
The entrance to the café is next to the office unit, further north of St. Swithin’s Lane. The first floor behind is cut back to create a double height space and a gallery to the front allows views from both levels.
All entrances are designed step free to allow easy access for wheelchair users.
CONSENTED SCHEME
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Proposed Schedule of Accommodation
FLOOR USE GEA SQ M GEA SQ FT NIA SQ M NIA SQ FT
Seventh Office (B1) 124.5 1,340.1 61.4 660.9
Sixth Office (B1) 272.1 2,928.8 205.9 2,216.3
Fifth Office (B1) 284.2 3,059.1 217.6 2,342.2
Fourth Office (B1) 284.2 3,059.1 217.6 2,342.2
Third Office (B1) 297.5 3,202.2 230.5 2,481.1
Second Office (B1) 297.5 3,202.2 230.5 2,481.1
First Office (B1) 196.4 2,114.0 138.3 1,488.6
First Café (A3) 48.3 519.89 36.5 392.9
Ground Reception 76.6 824.51 30.1 323.9
Ground Café (A3) 58.3 627.53 38.9 418.7
Ground Retail (A1) 162.7 1,751.2 143.7 1,546.7
Basement Storage 148.7 1,600.5 12.7 136.7
Basement Retail (A1) 122.3 1,316.4 105.5 1,135.6
Sub-Basement Storage (A1) 97.3 1,047.3 89.1 959.0
TOTAL 2,470.6 26,592.8 1,728.25 18,602.7
Retail (A1) 382.3 4,115.0 338.3 3,641.4
Office (B1) 1,981.7 21,330.8 1,301.8 14,012.4
Café (A3) 106.6 1,147.4 75.4 811.6
111 CANNON STREET
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PROPOSED FOURTH FLOOR PLAN
PROPOSED GROUND FLOOR PLAN
RETAIL
CAFÉ
RECEPTION
OFFICE
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Not to scale. Indicative only.
S T S W I T H I N ’ S L A N E
S T S W I T H I N ’ S L A N E
PROPOSED CROSS SECTION
PROPOSED CANNON STREET ELEVATION
C A N N O N S T R E E T
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EPC
111 Cannon Street has an Energy Performance rating of D (98). Further information is available upon request.
VAT
The property has been elected for VAT.
It is envisaged that a sale will take place by way of a transfer of going concern.
Proposal
We have been instructed to seek offers in excess of £7,000,000 for the new Long Leasehold interest.
Dataroom
For further information please visit www.111cannonstreet.com
Contact
For all enquiries and to arrange inspections, please contact either:
James [email protected]
Matthew [email protected]
James Crawford [email protected]
Important notice
DISCLAIMER: Allsop LLP on its behalf and for the Vendors or Lessors of this property, whose Agents they are, give notice that: These particulars are set out as a general outline only for guidance to intending Purchasers or Lessees, and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Allsop LLP has any authority to make any representation or warranty whatsoever in relation to this property. Unless otherwise stated, all prices and rents are quoted exclusive of VAT. November 2014.
FURTHER INFORMATION
020 7588 4433
111 CANNON STREET
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020 7588 4433
