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Brewhouse Yard, St John Street,London EC1

Single Let Office Investment

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Long leasehold with a share of the Freehold.

Prime Clerkenwell location situated approximately five minutes’ walk from Farringdon station.

At lease commencement the property provided 3,254 sq m (35,025 sq ft) of office and ancillary accommodation arranged over basement, ground and four upper floors.

The property is fully let to The Brand Union Ltd for a term of 15 years expiring on the 8th October 2028 with a tenant only break option in year 10. The lease is guaranteed by WPP Group (UK) Ltd.

The current passing rent is £880,000 per annum (equating to £25 psf overall). The rent is reviewed on a 5 yearly basis subject to annually compounded RPI uplifts with a cap and collar of 1% and 4%.

Offers sought in excess of £15,800,000 reflecting a net initial yield of 5.26% after purchasers costs of 5.8% and a low capital value of £451 psf.

Investment Summary

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Location

The Brand Union Building is located in the heart of Clerkenwell, approximately 500m from Farringdon Station and in close proximity to Old Street and the “tech hub”. The area is the favoured destination for creative, fashion, telecoms, media and technology industries attracted by the eclectic mix of cafes, bars and restaurants. Historic landmarks such as Smithfield Market and Exmouth Market provide the back drop for restaurants such as St John, Moro, Bistrot Bruno Loubet and Café du Marché.

The area has attracted a range of occupiers including Grey Advertising, Alexander McQueen, Agent Provocateur and Ben Sherman.

The Property benefits from its proximity to Farringdon Station which is less than a 5 minute walk away and provides access to The Circle, Metropolitan and Hammersmith and City lines as well as Thameslink offering direct access to Gatwick and Luton airports.

Farringdon is also set to significantly benefit from Crossrail with trains scheduled to be running from 2018. Crossrail is Europe’s largest infrastructure project providing direct rail links between Stratford in the East and Maidenhead in the West. The service will enhance capacity across Central London by 20% with over 250 million passengers a year using the service which will link Heathrow, the West End, the City and Canary Wharf. This project will transform Central London especially in locations close to new or updated stations.

Not to scale. For identification purposes only.

The Brand Union Building

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SmithfieldMarket

FarringdonStation

ClerkenwellRoad

St John Street

Old Street

BarbicanStation

The Brand Union Building

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The Property

The Brand Union Building forms part of Brewhouse Yard, a mixed use development of approximately 110,000 sq ft comprising residential, supermarket, office and retail accommodation. At lease commencement the Brand Union Building provided self-contained office accommodation arranged over basement, ground and four upper floors providing a total of 35,025 sq ft (3,254 sq m).

The office accommodation is arranged over regular floor plates, with the upper floors benefitting from excellent levels of natural light. The tenant is undertaking significant works to the building to bring the ground and basement floors to a Category A standard as well as creating a mezzanine level, new internal stair cases, light wells and a bespoke fit out. A detailed schedule of the works that are to be carried out by the tenant will be provided to prospective purchasers along with information on the reinstatement provisions in the lease.

Following the tenant works the property will provide the following specification: Fully accessible raised floors Combination of metal tile, plaster board and

exposed ceilngs LG7 compliant lighting 6 person passenger lift Four pipe fan coil VRF air conditioning WC’s on each floor Shower facilities Car parking spaces available

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AccommodationAt lease commencement the property provided the following approximate net internal floor areas as measured in accordance with the RICS Code of Measuring Practice (6th Edition).

Not to Scale. For indicative purposes only.

Floor Use NIA

Sq M Sq Ft

4th Office 239 2,576

3rd Office 320 3,446

2rd Office 320 3,446

1st Office 300 3,227

Ground Office 937 10,089

Ground Reception 28 298

Lower Ground Office 1,110 11,943

Total 3,254 35,025

Proposed side elevation

Not to Scale. For indicative purposes only.

Proposed second floor plan

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Tenancy Tenant CovenantThe property is let in its entirety to The Brand Union Ltd for a 15 year term from the 9th October 2013 expiring on the 8th October 2028 with a tenant only break option in year 10 (9 months prior written notice required). The lease is guaranteed by WPP Group (UK) Ltd.

The Initial passing rent is £880,000 per annum (equating to £25 psf overall). The rent is reviewed on a 5 yearly basis subject to annually compounded RPI uplifts with a cap and collar of 1% and 4%.

The rent commencement date is the 9th January 2019 and this period of rent free will be topped up by the vendor. The rent will be topped up at the current passing rent of £880,000 per annum until the 1st review and post review until rent commencement at the minimum fixed uplift level of 1%.

A copy of the lease and reinstatement provision is contained in the dataroom.

The Brand Union Ltd

The Brand Union is a leading global brand consultancy comprising world class consultants, researchers and designers. With 35 years brand building heritage, The Brand Union’s international footprint covers 18 major markets and offers brand expertise in research, strategy, design, engagement and communication services.

www.thebrandunion.com

WPP Group (UK) Ltd

WPP is the world’s largest communications services group, employing 170,000 people* working in 3,000 offices in 110 countries.

www.wpp.com

2010 2011 2012

Turnover - - -

Pre Tax Profit 29,553,000 31,952,000 41,476,000

Net Worth 3,746,411,000 3,778,363,000 3,101,586,0002010 2011 2012

Turnover 17,592,754 17,134,515 17,918,652

Pre Tax Profit 1,930,758 2,119,258 2,183,692

Net Worth 12,350,918 7,312,541 7,922,925

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A new 999 year long leasehold interest (internal demise) at a peppercorn rent (subject to and with the benefit of the occupational lease) is to be sold together with a share in the management vehicle that owns the Freehold of the entire development.

Further details available upon request.

Tenure

Chy

Compton Passage

ST JOHN STREET

Town

COMPTON

STREET

AGDO

N STREET

Brewery Square

Houses

Playground

1

192 to 196

aywards

1 to

128

PH

1 to 22

144

to

77

School

63

House

150

181

68a

St P

178

1 to

40

Place

26

20

69

182 to 186

180

20a

68

Primary Sc

4 9

61

117

2

128

3

185

2 to 36

146

175 t

o 179

10

1 to 15

to 1

57

159

to 1

73

1

5

CannonCourt

GardnerCourt

Court

11

Horse Shoe

Saint Paul's

Domecq House

Church House

Buildings

57 to 61

Dickinson Court

15

16

12

11

10

152-154

2

12

House

House

LindburghHouse

AvedonHouse

Klein

Arbus

BreweryCannon

17

1 to 29

Superstore

174

176

1 to 482

54 to 56

9

176

2

3

73

BREWHOUSE YARD

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.

Planning

EPC

The property is located within the London Borough of Islington.

An Energy Performance Certificate (EPC) is available on request.

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For further information please contact:

James Abrahams020 7588 4433james.abrahams@allsop.co.uk

Jonathan Ruback020 7588 4433jonathan.ruback@allsop.co.uk

Marsha Rabinovich020 7588 4433marsha.rabinovich@allsop.co.uk

VAT

Proposal

Further Information

The property has been elected for VAT.

Offers sought in excess of £15,800,000 reflecting a net initial yield of 5.26 % after purchasers costs of 5.8% and a low capital value of £451 psf.

Misrepresentation Act 1967Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. January 2014 (Q2745)

www.brewhouseyard.com