LONDON WC2 - images1.loopnet.com

1 0 1 S T M A R T I N ' S L A N E L O N D O N W C 2

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Investment Summary

• Prominent, modern office building arranged over lower ground, ground and five upper floors, comprising 47,643 sq ft of accommodation

• Located in the heart of Covent Garden directly opposite the 5 star St Martins Lane hotel

• Multi-let to seven office tenants and one retail tenant providing good diversity of income and a WAULT to expiry of 5.4 years (2.6 years to break)

• Gross passing rent of £3,310,898 per annum, which breaks back to a net passing rent of £3,026,998 per annum (including a top up of any outstanding rent free periods and a rental guarantee on the basement storage)

• Newly regeared long leasehold interest expiring on 22 June 2144 (c.123 years unexpired) at a current head rent of £283,900 per annum, which is reviewed five yearly to 8.5% of the ERV assessed every five years

• Potential to add massing by infilling the atrium, subject to the usual consents

• Offers sought in excess of £53,500,000 exclusive of VAT and subject to contract

• Allowing for purchaser’s costs at 6.8%, this reflects a net initial yield of 5.30% and a low capital value of £1,123 per sq ft

101 St Martin's Lane 3

The CityCovent Garden Piazza Canary Wharf The Shard

Piccadilly Circus

Charing CrossEmbankment The London Eye

Shaftesbury Avenue The National Gallery Trafalgar Square Pall Mall The MallLeicester SquareLeicester Square

1 0 1 S T M A R T I N ' S L A N E

7101 St Martin's Lane

Description Developed in 1991 behind a retained Portland stone and red brick façade, 101 St Martin's Lane provides 47,643 sq ft of Grade A office accommodation and a self-contained retail unit.

The office accommodation occupies lower ground, ground and five upper floors and is arranged around a large, central atrium, providing open floorplates benefiting from natural light on three sides.

The property was comprehensively refurbished on a rolling basis from 2017 (with the exception of the first floor).


Specification • Contemporary reception

• Spectacular atrium

• 3 x 9 person passenger lifts (675 kg)

• New cycle storage with 54 spaces

• 7 showers and 65 lockers

• Open floorplates, capable of sub-division

• Raised floors (140mm – 175mm void) and suspended ceilings

• Clear ceiling heights of 2.6m on a typical floor and 3.8m on ground floor

• Four-pipe fan coil air-conditioning

• New LG7 compliant lighting providing 400 lux in the office accommodation

• Terraces on 3rd, 4th and 5th floors


5th Office 5,194 sq ft 482.54 sq m

4th Office 6,338 sq ft 588.82 sq m

3rd Office 7,916 sq ft 735.42 sq m

2nd Office 8,173 sq ft 759.30 sq m

1st Office 8,569 sq ft 796.09 sq m

Ground Office 4,956 sq ft 460.43 sq m

Ground Retail 851 sq ft 79.06 sq m

Ground BMA 48 sq ft 4.46 sq m

Lower Ground Office 4,519 sq ft 419.83 sq m

Basement Stores 1,079 sq ft 100.24 sq m

Total 47,643 sq ft 4,426.18 sq m

Ground Floor Plan Office: 4,956 sq ft / 460.43 sq m Retail: 851 sq ft / 79.06 sq m

AtriumRetail

Reception

Accommodation

Atrium

Atrium

Terrace

Terrace

4th Floor Plan 6,338 sq ft / 588.82 sq m

1st Floor Plan 8,569 sq ft / 796.09 sq m

NThe property has been measured by Plowman Craven Associates in accordance with the 6th Edition of the RICS Code of Measuring Practice. The report is available in the dataroom and assignable.



Tenancy Schedule

Note: All leases are outside the provisions of the Landlord and Tenant Act 1954. *On completion of the 2nd floor (rear) letting, the NIA will increase by 206 sq ft to 47,849 sq ft

Unit Name Tenant Name Area (sq ft) Event Dates Income Comments

Start Date Expiry Date Break Date Next Rent Review Date

Passing Rent (pa)

Passing Rent (psf)

5th Floor Harry's Grooming Limited

5,194 11/09/2020 05/06/2022 £428,505 £82.50 Cat A+ Landlord fit-out

4th Floor Urbanest UK Limited

6,338 12/12/2017 11/12/2027 12/12/2022 12/12/2022 £491,195 £77.50 11 months' rent free if break option not exercised.

3rd Floor Abercrombie & Kent Limited

7,916 08/01/2018 07/01/2028 07/01/2024 08/01/2023 £593,700 £75.00 10 months' rent free if break option not exercised.

2nd Floor (front) Lincoln International Holdings Ltd

2,906 24/01/2020 24/03/2024 £239,745 £82.50 Cat A+ Landlord fit-out

2nd Floor (rear) Under Offer 5,267 £408,193 £77.50 Cat A+ Landlord fit-out. Under offer on a term expiring 24/03/2024 benefitting from 6 months’ rent free (to be topped up by the vendor), outside the Act. On completion, the lift lobby totalling 206 sq ft will be demised to the tenant and rentalised at £77.50 per sq ft. The contracted rent will increase by £15,965 per annum.

1st Floor (front) Travel Leaders Group UK, Limited

3,120 14/03/2019 12/11/2026 13/11/2023 £210,600 £67.48 A reversionary lease is in place for an additional 3 years from 13/11/2023.

1st Floor (rear) Travel Leaders Group UK, Limited

5,449 13/11/2013 12/11/2026 13/11/2023 £346,012 £64.18 A reversionary lease is in place for an additional 3 years from 13/11/2023.

Ground Floor Whispering Smith Limited

4,956 30/01/2018 29/01/2033 30/01/202330/01/2028

30/01/2023 £335,000 £67.59 Tenant break options at years 5 and 10 each with rent free if not exercised (6 months & 3 months respectively).

Ground Floor Building Management Accommodation

48

Ground Floor Retail Unit

BNW Food Ltd 851 30/09/2020 14/04/2027 01/10/2022 15/04/2022 £36,250 £42.60 From 01/04/2021 to and including 15/04/2022 the tenant will pay the greater of £36,250 PA or 8% of gross turnover. Mutual break option on 01/10/2022. Landlord rental top-up to £36,250 pa to 01/04/2021.

Lower Ground Office

Potter Raper Partnership

4,519 24/07/2017 23/07/2027 24/07/2022 24/07/2022 £203,355 £45.00 Tenant break option in year 5 with 5 months' rent free if not exercised.

Basement Storage Vacant 1,079 £18,343 £17.00 12 months' vendor top up of rent, rates and service charge.

Total 47,643* Gross Rent £3,310,898

Head Rent £283,900

Net Rent £3,026,998


© Ordnance Survey 2018

Tenure The property is held long leasehold upon the following terms:

Freeholder Morion 1 Limited and Morion 2 Limited

Term Newly regeared headlease expiring 22 June 2144 (c.123 years unexpired).

Current Rent £283,900 per annum

Rent Review The headrent will be based on 8.5% of the ERV assessed every five years.

The rent is to be reviewed on an upwards only basis, based on either single letting of the entire building or separate lettings of each floor or half floor, whichever yields the higher rent.

The building will be assumed to benefit from Cat A fit-out for the purposes of each rent review, and disregarding any Cat B works.

The revised headlease incorporates an option for the freeholder to call for a surrender of a parcel of land, in connection with the possible redevelopment of its neighbouring property to facilitate the provision of an additional fire escape exit, subject to and conditional on receiving all necessary consents.

Further details are provided in the data room.

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VAT

We understand the property is elected for VAT. It is therefore anticipated that the transaction will be treated as a TOGC.

Planning

The property is not Listed and is not located in the Covent Garden Conservation Area.

EPC

The property has an EPC rating of C. A copy is available on request.

Proposal

Offers sought in excess of £53,500,000 for the long leasehold interest, subject to contract and exclusive of VAT.

This reflects a low capital value of £1,123 per sq ft and a net initial yield of 5.30%, assuming full purchaser’s costs at 6.8%.

Tim Pierce T: +44 207 861 1676 M: +44 7773 258 844 E: [email protected]

Debt Advisory

Lisa Attenborough T: +44 203 909 6846 M: +44 7773 258 673 E: [email protected]

Tim Hugill T: +44 207 861 1748 M: +44 7939 078 069 E: [email protected]

Disclaimer: Knight Frank LLP for themselves and for the vendors or lessor of this property for whom they act, give notice that: i) these particulars are a general outline only, for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract; ii) Knight Frank LLP cannot guarantee the accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy; iii) rents quoted in these particulars maybe subject to VAT in addition; iv) Knight Frank LLP will not be liable, in negligence or otherwise, for any loss arising from the use of these particulars; and v) the reference to any plant, machinery, equipment, services, fixtures or fittings at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective purchasers/tenants should satisfy themselves as to the fitness of such items for their requirements. vi) no employee of Knight Frank LLP (and its subsidiaries) has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. May 2021. SYO52519. Photography by joas.co.uk

Contacts

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