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ARTS BUILDING 1
ARTSBUILDING
2-10 MORRIS PLACE F INSBURY PARK
LONDON N4
PRIME NORTH LONDON OFFICE AND SUPERMARKET INVESTMENT WITH
FUTURE DEVELOPMENT POTENTIAL
ARTS BUILDING ARTS BUILDING2 3
ARTSBUILDING
FINSBURY PARK LONDON N4
ARTS BUILDING4 ARTS BUILDING 5
INVESTMENTSUMMARY
Freehold
Located opposite Finsbury Park Interchange station providing quick and direct access to Central London
Occupies a prominent corner position with substantial dual frontage onto Morris Place and Stroud Green Road
Developed in 2014 Arts Building provides 43,695 sq ft (4,059.4 sq m) of office and retail accommodation
arranged over ground and 1st to 5th floors
Multi let to 9 tenants with a passing rent of £1,409,197 per annum reflecting
a low £33.68 per sq ft overall
The ground floor is let in its entirety to Lidl on a new 25 year lease with a break at the end of year 20
Significant value enhancement opportunity through asset management and a two storey roof top extension
totalling 8,998 sq ft (835.94 sq m), subject to necessary consents
Energy Performance Rating of A (25)
Seeking offers in excess of £25,500,000 reflecting an attractive NIY of 5.17% and a low capital value of
£584 per sq ft
ARTS BUILDING ARTS BUILDING6 7EMIRATES STADIUM (ARSENAL FC)
iQ STUDENT ACCOMMODATION
FINSBURY PARK TRANSPORT
INTERCHANGE
CITY NORTH PARK THEATRE
COALFACE
UNIVERSITY OF THE ARTS
LONDON
← THE CITY
ARTS BUILDING ARTS BUILDING8 9
LOCATIONThe thriving North London Borough of Islington extends from Farringdon, the UKs Creative and Tech Hub in the south, up to Highgate in the north, incorporating the ever expanding office district of Kings Cross. It is an established borough that is home to prosperous residential and commercial centres with a diverse population of 236,000 people.
The Arts Building is located in Finsbury Park, approximately 2.6 miles to the north of Kings Cross at the heart of the Borough of Islington. Finsbury Park is an emerging part of North London; superb transport links and a growing culture of cafés, theatres and restaurants make it the ideal working environment.
Situated on a prominent corner of Stroud Green Road and Morris Place, The Arts Building is at the centre of Finsbury Park within sight of Finsbury Park Rail Interchange and Underground Station.
In proximity is Telford Homes’s mixed use development, City North, which incorporates residential, offices, a Cinema, M&S Foodhall and the fashionable Gymbox gym. Furthermore, cutting edge co working brands in the immediate vicinity include Dorrington Real Estate’s Coalface and Carlyle’s Uncommon.
1 Sainsbury’s
2 Crisis
3 Superdrug
4 M&S Foodhall
5 Godfreys & Co
RETAIL
6 Costa
7 Starbucks
8 Pasta Remoli
9 My Cottage Café
10 Tenmaru
11 The World’s End
12 Mento
13 Pret A Manger
14 Klatsch
CAFES & RESTAURANTS
15 PureGym
16 Premier Inn
17 Rowan Tenpins Bowling
18 CineWorld
19 More Yoga
20 Park Theatre
21 Finsbury Park Underground & National Rail Station entrance
22 Finsbury Park Interchange Bus Station
LEISURE TRANSPORT
FINSBURYPARKSTROUD GREEN ROAD
BLACKROCK ROAD
SEVEN SISTERS ROAD
SEVEN SISTERS R
OAD
ISLE
DO
N R
OAD
Wells Te
rrace
Morris P
lace
Fonthill Road
Lennox Road
FINSBURY PARKINTERCHANGE
1
2
5
3
4
116
7
1213
14
89
10
15
16
18 21
21
22
17
19
20
Not to scale. Indicative only.
ARTS BUILDING 11
ARSENAL
DRAYTONPARK
HOLLOWAYROAD
HIGHBURY &ISLINGTON
ANGEL
OXFORDCIRCUS
HOLBORN
KING’S CROSS /ST. PANCRAS
MOORGATE
OLD STREET
FARRINGDON
EUSTON
MORNINGTONCRESCENT
CAMDENROAD
KENTISHTOWN
UPPERHOLLOWAY
CROUCHHILL
FINSBURYPARK
MANORHOUSE
LIVERPOOLSTREETTOTTENHAM
COURT ROAD
London Overground
Northern Line
Mainline
Victoria Line
Elizabeth Line
Piccadilly Line
Metropolitan Line
Central Line
STANSTED
←
Circle Line
Hammersmith & City Line
LONDON BRIDGE& GATWICK←WATERLOO← BANK←
ARTS BUILDING10
COMMUNICATIONS
FANTASTIC CONNECTIVITY TO CENTRAL LONDON AND ITS INTERNATIONAL TRANSPORT HUBS
Journey times in minutes from Finsbury Park Interchange:
The Arts Building is situated opposite the Finsbury Park bus, underground and rail interchange. It is a 200 metre walk to the new Finsbury Park underground and National Rail station entrance accessed via the impressive City North development.
Finsbury Park offers direct access to London’s West End, The City, King’s Cross, Farringdon, London Bridge, most of London’s major rail hubs and many commuter towns such as Peterborough and Cambridge.
10
17 18
9
19
15
45
Old Street
Liverpool Street Waterloo
Oxford Circus
London Bridge
Moorgate
Stansted Airport
3King’s Cross St Pancras
12Victoria
9Farringdon
4Euston
10Green Park
ARTS BUILDING 13ARTS BUILDING12
THE BUILDING
Occupying a prominent position on the corner of Morris Place and Stroud Green Road, the building comprises of 43,695 sq ft (4,059.4 sq m) of office and ground floor retail accommodation.
Developed in 2014 and designed by the award winning practice DGA Architects, The Arts Building provides 27,418 sq ft (2,553 sq m) of office accommodation arranged over the first to fifth floor.
The Arts Building benefits from flexible floor plates ranging from 4,737 - 6,140 sq ft. Such flexibility sets the building apart, providing highly versatile office space able to meet the diverse occupier requirements. The office floors benefit from floor to ceiling windows allowing for an abundance of natural light to freely flow throughout the building.
The Arts Building meets the needs of the modern workplace. Located on the second floor is a large communal kichen with access to a large terrace overlooking a well maintained courtyard.
The prime ground floor retail unit has an extensive return frontage onto Morris Place and Stroud Green Road.
The retail accommodation is accessed via a seperate entrance on Morris Place. The ground floor unit comprises 15,231 sq ft (1,415 sq m). Offering impressive floor to ceiling heights measuring over 5m in sections, the retail unit provides maximum efficiency and space for occupier needs.
THE ARTS BUILDING MEETS THE NEEDS OF THE
MODERN WORKPLACE
ARTS BUILDING ARTS BUILDING14 15
ACCOMMODATION
The Arts Building has been independently measured by CDM Surveyors in accordance with the RICS Code of Measuring Practice (6th Edition) and comprises the following Net Internal Areas:
Floor Use NIA Terraces
sq ft sq m sq ft sq m
5th Office 4,737 440.081,372 127.5
553 51.4
4thOffice 5,878 546.08 - -
Kitchen 262 24.34 - -
3rd Office 5,815 540.23 - -
2nd*Office 4,919 456.99 - -
Kitchen 606 56.30 - -
1st Office 5,264 489.04 - -
GroundRetail 15,231 1,415.01 - -
Reception 983 91.32 - -
Total 43,695 4,059.40 1,925 178.90
* benefits from a large communal courtyard accessed from the kitchen.
ARTS BUILDING 17ARTS BUILDING16
FLOOR PLANS
LOADING
BAY
GROUND FLOOR
FIRST FLOOR
SECOND FLOOR
THIRD FLOOR
FOURTH FLOOR
FIFTH FLOOR
Not to scale. Indicative only.
COMMUNAL KITCHEN
COMMUNAL KITCHEN
SERVER ROOM
TERRACE
TERRACE
LOADING/DELIVERY
BAY
OFFICE RECEPTION
RETAIL
OFFICE RECEPTION
OFFICE
COMMUNAL KITCHEN
ARTS BUILDING ARTS BUILDING18 19
TENANCIES
The Arts Building is multi-let at a passing rent £1,409,197 per annum reflecting a low passing rent of £33.68 per sq ft.
Tenant Floor Use Area (sq ft)
Lease Start
Lease Expiry
Tenant Break
Passing Rent (per annum)
Passing Rent (per sq ft)
Rent Review
1954 Act
Comments
Confidential Tenant 5th Office 4,737 2-Jun-17 1-Jun-22 N/A £188,336.00 £39.76 N/A Outside
The tenant’s repairing and decorating obligations are limited by reference to a schedule of condition.Service charge cap of £12.78 psf (cap increased annually by RPI). Rent deposit of £113,001.60 plus VAT
Schedule 2 Limited 4th (part) Office 882 30-May-17 29-May-22 N/A £32,917.50 £37.32 N/A Outside Rent deposit of £8,229.37 plus VAT
Vendor guarentee 4th (part) Office 396 None None N/A £14,850.00 £37.50 N/A N/A 18 month rent, rates and service charge guarentee
Preloaded Limited 4th (part) Office 2,207 10-Jul-15 9-Jul-25 10-Jul-21 £94,222.50 £42.69 10-July-21 Outside
Lease guaranteed by Learning Technologies Group plc.Service charge cap of £11.17 psf (cap increased annually by RPI) up until 9-Jul-2021. Thereafter, the cap will increase to £12.50 psf (cap increased annually by RPI).Tenant break option to be served with 9 months notice
Push PR Limited 4th (part) Office 2,393 7-Oct-19 26-Feb-25 N/A £88,000.00 £36.77 10-Feb-22 Outside
Stepped rent: 27-Feb-2020 to 26-Feb-2022 £44,000 per annum, 27-Feb-2022 to £88,000 per annum The vendor is topping up to £88,000 per annumThe tenant is to exercise their option to extend by 5 years no later than 26-Nov-2024Service charge cap of £7.76 psf (cap increased annually by RPI). Rent deposit of £30,812 plus VAT
Irving and Co Studios Limited
3rd (part) Office 412 27-Feb-20 26-Feb-21 N/A £17,765.00 £43.12 N/A OutsideService charge is capped at £5,016 pa (increased annually by RPI). Rent deposit of £3,918.75 plus VAT
RFK Architects Limited
3rd (part) Office 942 18-Mar-16 17-Mar-21 N/A £34,237.50 £36.35 N/A OutsideService charge cap of £10.93 psf (to be increased annually by RPI). Rent deposit of £8,559.37 plus VATLicence to occupy part granted to Miura Limited
Film London 3rd (part) Office 4,461 4-Dec-15 3-Dec-25 N/A £169,053.50 £37.90 12-April-20 Outside
Service charge cap of £11.21 psf (to be increased by annually in line with RPI).Further to a deed of variation, the tenant benefits from an eight month rent free period from and including 24-Jun-2020 to and including 23-Oct-21 at half rent (in exchange for the removal of the tenant break clause) Vendor is topping the rent free period upLicenses to occupy part granted to Pick Media Limited and to Teacher Development Trust Rent deposit of £42,263.38 plus VAT
Brooks Murray Architects Ltd.
2nd (part) Office 2,222 4-Oct-17 3-Oct-27 4-Oct-22 £71,277.50 £32.08 10-April-22 Outside
Open market, upwards only rent review on 04-Oct-2022 Part of the area has a fixed rent Service charge cap £10.58 psf (cap increased annually by RPI)Rent deposit £17,819 plus VAT Underlease of part to David Warren in place from 16-Oct-2018 ending on 15-Sep-2021
Vendor guarentee 2nd (part) Office 2,697 N/A N/A N/A £101,137.50 £37.50 N/A N/A 18 month rent, rates and service charge guarentee
Vendor guarentee 1st Floor Office 5,264 N/A N/A N/A £197,400.00 £37.50 N/A N/A 18 month rent, rates and service charge guarentee
Lidl Great Britain Limited
Ground Floor
Retail 15,231Subject to
Agreement for Lease.
25 years from actual
completion.
20 years less one day from term
commencement.£400,000.00 £26.31 5 yearly Inside
Agreement for lease dated 27-Apr-2020.Service charge cap of £0.50 psf.Lidl can grant concessions up to 40% of the floor area.5 yearly upward only to CPI annually compounded capped and collared at 3% and 1%
Legal & General Pensions Ltd
Courtyard Deck
Recreational/amenity purposes
N/A 03-Sep-15 999 yrs3 month rolling
break N/A N/A N/A Inside
The landlord is under an obligation to repair the part of the building beneath the demised property.
Total 41,844 £1,409,197 £33.68
ARTS BUILDING ARTS BUILDING20 21
TENURE
PLANNING
The Arts Building is held freehold under title number NGL431657.
The Arts Building is located in the Borough of Islington. It is not listed and does not sit within a conservation area.
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
Indicative CGI of Lidl store front
ASSET MANAGEMENTThe Arts Building offers a number of Asset Management opportunities the high level of which are:
– Let the vacant accommodation
– Remove the break options and extend the leases of the existing tenants
– Reconfigure the 2nd, 3rd and 4th floors to increasing the NIA significantly and creating attractive floor plates for single tenants
– Undertake a full review of the service charge, reducing the overall occupational costs of the building
– Seek to move rents to £40 plus per sq ft
COVENANTS
98.7% OF THE CONTRACTED INCOME IS TO TENANTS WITH CREDIT SCORE RATINGS OF EITHER LOW OR VERY LOW RISK.
Lidl (36.5% of the contracted income)
Lidl was established in Germany with its first store opening in 1973 and has grown to become one of Europe’s leading food retailers. The first Lidl UK opened in 1994 and today they operate from over 740 stores and 13 distribution centres across Great Britain employing over 20,000 people. Lidl is one of the UK’s fastest growing grocery chains with a market share of 5.4%. This growth is set to continue with four more warehouses in the UK set to be opened by 2025. Lidl have outlined plans to open a further 50 stores a year.
Lidl UK GmbH (company number FC017929) have a Creditsafe Rating of Very Low Risk (100) and have reported the following financial results for the last three years:
www.lidl.co.uk
2019 2018 2017
Revenue £43,583,304,765 £39,497,771,683 £36,833,422,033
Profit £1,084,161,810 £1,103,016,798 £1,191,236,473
Net Worth £9,864,586,904 £9,073,534,453 £8,819,407,486
Confidential Tenant (17.19% of the contracted income)
The fifth floor is occupied by a successful technology business. The company has a Creditsafe rating of very low risk (82).
Further details on request.
Film London (15.43% of the contracted income)
Film London works to sustain, promote and develop London as a global centre for content production. Investing in some of London’s most exciting and up and coming projects, Film London also helps to connect filmmakers with financers, offer solutions to production issues and work with over 500 organisations and venues across London. Since 2018, Film London has supported over 443 filmmakers with projects achieving a variety of success from International film festival entries, to award wins and community and environmental impact projects.
Film London have a Creditsafe Rating of Low Risk (70).
www.filmlondon.org.uk
ARTS BUILDING 23ARTS BUILDING22
DEVELOPMENT POTENTIAL
Gibson Thornley architects have undertaken an initial massing study which incorporates extending the 5th floor onto the existing front terrace and the addition of two new Garde A office floors. The illustrative drawings take into consideration planning guidelines and the impact of the surrounding area.
The floor areas are as follows:
FINAL IMAGESSTREET VIEW (DARC STUDIO)
OVERVIEWFINAL IMAGES
OFFICE
WC
STAIR
LIFT
PLANSPROPOSED 6TH FLOOR PLAN
STAIR
TE
RR
AC
E
OFFICE
WC
STAIR
STAIRLIFT
TERRACE
FRONT ELEVATIONFINAL IMAGES
FLOOR NIA SQ FT NIA SQ M
7th 4,994 463.96
6th 5,285 490.99
5th 5,307 493.40
4th 5,878 546.08
3rd 5,815 540.23
2nd 4,919 456.99
1st 5,264 489.04
G 15,231 1,415.01
Total 52,693 4,895.23
PROPOSED SEVENTH FLOOR
PROPOSED SIXTH FLOOR
Not to scale. Indicative only.
ARTS BUILDING24 ARTS BUILDING 25
MARKET COMMENTARY
Recent supermarket transactions:
PROPERTY DATE AREA (SQ FT)
PRICE NIY LEASE TERM (YEARS)
RENT MECHANISM
RENT (£PSF)
M&S, Harrogate U/O 33,086 £20,890,000 4.10% 18.5 5 yearly RPI 1-4% £28.03
Waitrose, Clapham 04/2020 28,983 £25,000,000 3.85% 10 OMV £28.00
Tesco, Enfield 04/2020 94,420 £67,500,000 4.10% 16 Annual RPI 0-5% £31.45
Aldi, Trafford 12/2019 18,568 £9,575,000 4.00% 20 5 yearly RPI 1-3% £23.16
Aldi, Romford 09/2018 20,732 £11,000,000 3.45% 24.5 5 yearly RPI 1-3% £19.54
HOLLOWAY ROAD
HOLLOWAY ROAD
U
PPER STREET
EUSTON ROAD
PENTONVILLE ROAD
CITY ROAD
SEVEN SISTERS ROAD
CAMDEN
ROAD
CALEDO
NIA
N R
OA
D
CH ALK FARM ROAD CAM
DEN
HIG
H ST
YORK W
AY
LIVERPOO
L ROA
D
HO
RNSEY RO
AD
STROUD GREEN ROAD
HIG
HBU
RY PA
RK
B
ROWNSWOOD ROAD
GREEN
LAN
ES
ARSENAL
DRAYTONPARK
CALEDONIANROAD
HOLLOWAYROAD
HIGHBURY &ISLINGTON
CANONBURY
CALEDONIAN ROAD& BARNSBURY
ESSEX ROAD
ANGEL
KING’S CROSS /ST. PANCRAS
EUSTON
MORNINGTONCRESCENT
CAMDENROAD
KENTISH TOWNWEST
KENTISHTOWN
GOSPELPARK
TUFNELLPARK
ARCHWAY
UPPERHOLLOWAY
CROUCHHILL
FINSBURYPARK
MANORHOUSE
HIGHBURY
WOODFERRYDOWN
KENTISH TOWN
CHALK FARM
CLERKENWELL
BARNSBURY
LOWERHOLLOWAY
REGENT’S PARK
HAMPSTEDHEATH
FINSBURYPARK
HIGHBURYFIELDS
HIGHGATECEMETARY
CLISSOLDPARK
OFFICE OCCUPATIONAL MARKET
ISLINGTON
CAMDEN
KING’S CROSSANGEL
FINSBURY PARK
INVESTMENT MARKET
NORTH LONDON PRIME OFFICE RENTS AND SALE VALUE PER SQ FT
RENT:
£40.00 PER SQ FT
RENT:
£33.68 PER SQ FT
RENT:
£67.50 PER SQ FT
RENT:
£85.00 PER SQ FT
RENT:
£65.00 PER SQ FT
RENT:
£47.50 PER SQ FT
CAP VAL:
£750 PER SQ FT
CAP VAL:
£584 PER SQ FT
CAP VAL:
£1,200 PER SQ FT
CAP VAL:
£1,600 PER SQ FT
CAP VAL:
£1,300 PER SQ FT
CAP VAL:
£900 PER SQ FT
The Finsbury Park office market is robust with tight supply of Grade A accommodation and strong demand from a mix of businesses including those from the creative, media, tech and charity sectors.
Finsbury Park offers cost effective accommodation and is attracting a number of tenants moving from surrounding office locations such as Angel, Kings Cross, Camden and Farringdon, where occupational costs have risen sharply in recent years making them uneconomical. Most notably the prime rent in Kings Cross is £85 per sq ft.
A significant weight of capital from both Overseas and UK based investors continues to view London favourably. Furthermore, assets with strong underlying income from high quality covenants are trading at a premium. 36.5% of the contracted income at the Arts Building is on a 25 year lease to undoubted covenant Lidl. Prime yields for this level of income security are 3.75%.
ARTS BUILDING26
FURTHER INFORMATION
PROPOSAL
VAT
The property has been elected for VAT and it is anticipated that the transaction will be treated as a Transfer of a Going Concern.
CAPITAL ALLOWANCES
Capital Allowances are available by way of separate negotiation.
ENVIRONMENT CREDENTIALS
Energy Performance Rating of A (25).
Energy Performance Certificate and Recommendation Report available in the data room.
DATA ROOM
Access to the data room is available upon request.
*inclusive of reception and communal kitchens
CONTACT
To arrange a viewing please contact:
OFFERS ARE INVITED IN EXCESS OF £25,500,000 SUBJECT TO CONTRACT AND EXCLUSIVE OF VAT. THIS REFLECTS A LOW CAPITAL VALUE OF £584* PER SQ FT AND A NIY OF 5.17%, ASSUMING PURCHASER COSTS 6.80%.
Kyle JossT: 020 7487 1958
M: 07712 241 851
Shaun SimonsT: 020 7871 7422
M: 07788 423 131
Julian MeirT: 020 7344 6647
M: 07928 654 929
Tom Butt T: 020 7858 6868
M: 07703 343 546
Paul Rowntree T: 020 7858 6863
M: 07825 507 523
Sam Stevens T: 020 7858 6862
M: 07825 507 519
Colliers International and Kingly Partners give notice that these particulars are set out as a general outline only for the guidance of 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 Party 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 Colliers International nor Kingly Partners has any authority to make any representation or warranty whatsoever in relation to this property. October 2020. www.cube-design.co.uk (Q4641)
