FETTER LANE, LONDON EC4 - Allsop · 2019. 10. 31. · ONE FETTER L ANE 3 ONE FETTER L ANE 2...

O N E F E T T E R L A N E

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P R I M E M I D T O W N F R E E H O L D M I X E D U S E R E F U R B I S H M E N T O P P O R T U N I T Y

F E T T E R L A N E , L O N D O N E C 4

ON E


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E X E C U T I V ES U M M A R Y

Freehold.

Prominent corner building in a prime Midtown location on the junction of Fetter Lane and Fleet Street, within close proximity of City Thameslink, Farringdon and Chancery Lane stations.

24,056 sq ft (2,234.9 sq m) of office, retail and ancillary accommodation arranged over lower ground, ground and six upper floors.

Multi-let to one office tenant and four retail tenants producing a total rent of £1,199,000 per annum (£49.84 per sq ft overall).

Low passing office rent of only £46.98 per sq ft compared to prime Midtown rents in excess of £75.00 per sq ft.

Highly reversionary retail income accounting for c.23% of the overall income, with average rents of £152 Zone A, with rents on Fleet Street in excess of £200 Zone A.

Opportunity to increase the net lettable area of the building by 3,306 sq ft (307.1 sq m) subject to obtaining the necessary consents.

Weighted Average Unexpired Lease Term to earliest determination of approximately 0.5 years on the office space and 9.35 years on the retail accommodation.

Offers are sought in excess of £21,000,000 for the freehold interest subject to contract and exclusive of VAT. This reflects a net initial yield of 5.35% and a capital value of £873 per sq ft on the existing area and £767 per sq ft on the proposed area, assuming 6.75% purchaser’s costs.

Applying a yield of 4.50% to the existing retail income this pricing equates to £776 per sq ft on the existing office area and £664 per sq ft on the proposed office area.


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L O C A T I O N

THE PROPERTY IS PROMINENTLY SITUATED ON THE CORNER OF FETTER LANE AND FLEET STREET. THE CITY CORE IS LOCATED LESS THAN A 10 MINUTE WALK TO THE EAST, WITH CLERKENWELL AND COVENT GARDEN EQUIDISTANT TO THE NORTH EAST AND WEST RESPECTIVELY.

Fleet Street is one of the key arterial routes linking the City and the West End. It forms part of the ceremonial route through Central London from St Paul’s and is synonymous with both the press and legal sector. The property, on the corner of Fetter Lane, is ideally situated for access to the Royal Courts of Justice, the Law Society, Middle and Inner Temples and Lincoln’s Inn.

The adjacent street of Chancery Lane has seen large scale redevelopment projects including Derwent London’s 40 Chancery Lane (HQ of Saatchi and Saatchi), Aberdeen’s The Cursitor Building and Viridis’ 28 Chancery Lane. Traditionally associated with the legal sector, Midtown now attracts a hugely diverse occupier base, including those from the technology, media and telecommunication (TMT) sector.

Framestore, Skype, Amazon, Saatchi & Saatchi, WeWork and Deloitte Digital are some of the occupiers who have taken occupation of nearby schemes in recent years.

The property benefits from excellent surrounding transport infrastructure situated a short walk from City Thameslink National Rail and Chancery Lane (Central Line) Underground Stations. Farringdon National Rail and Underground station is approximately a 10 minute walk to the north- west and will benefit from The Elizabeth Line by mid-2020. It is estimated that the new rail line will bring an extra 1.5 million people to within 45 minutes of Central London.

GOODGESTREET

OXFORDCIRCUS

GREEN PARK

MARBLE ARCH

HYDE PARKCORNER

KNIGHTSBRIDGE

EUSTON

MONUMENT

SHOREDITCHHIGH STREET

LEICESTERSQUARE

CHARINGCROSS

WATERLOO

LONDONBRIDGE

WATERLOOEAST

EMBANKMENT

SOUTHWARK

BOROUGH

OLD STREET

CIT YTHAMESLINK

PICCADILLYCIRCUS

TOTTENHAMCOURT ROAD

BOND STREET

LIVERPOOLSTREET

RUSSELLSQUARE

MANSIONHOUSE

BANK

BARBICAN

CANNONSTREET

MOORGATE

COVENTGARDEN

CHANCERYL ANE

HOLBORN

ST PAUL’S

BL ACKFRIARS

FARRINGDONFARRINGDON

EASTERN TICKET HALL

TEMPLE

450M

800M

700M

350M

500M 500M

C O N N E C T I V I T Y

1 Fetter Lane benefits from the following excellent transport connectivity

Central Line

Hamm

ersmith & City Line

Circle Line

Metropolitan Line

London Underground

Elizabeth Line

District Line

Piccaddily Line

National Rail


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7

WA

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LO

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BR

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HW

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HIGH HOLBORN HOLBORN

FETTERL

AN

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WA

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BU

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PLAC

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SOU

THA

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OXFORD STREET

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BLOOMSBURY WAY

HIGHHOLBORN

GR

AY

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FARRIN

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THEOBALD’S ROAD

CLERKENWELL ROAD

STRAND

STRAND

RE

GE

NT STR

EE

T

FLEET STREET

LINCOLN’S INNFIELDS

MIDDLE TEMPLEGARDENS

VICTORIA EMBANKMENTUPPER THAMES STREET

QUEEN VICTORIA STREET

LONDON WALL

HOLBORN VIADUCT

LOWER THAMES STREET

CANNON STREET

THREADNEEDLE STREET

GRESHAM STREET

MO

OR

GA

TE

GR

AC

EC

HU

RC

H S

TR

EE

T

BIS

HO

PSG

ATE

COM

MERCIA

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GREAT EASTERN STREET

CIT

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OLD STREET

AL

DE

RS

GA

TE

ST

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ET

KIN

G W

ILLIAM

STR

EE

T

ALDWYCH

CH

AN

CE

RY

LA

NE

HA

TT

ON

GA

RD

EN

CHARTERHOUSE STREET

WEST SMITHFIELD

RUSSELLSQUARE

GOODGESTREET

OXFORDCIRCUS

GREEN PARK

MARBLE ARCH

HYDE PARKCORNER

KNIGHTSBRIDGE

HOLBORN

EUSTON

ST PAUL’S

MANSIONHOUSE

MONUMENT

BANK

BARBICAN

CHANCERYLANE

SHOREDITCHHIGH STREET

LEICESTERSQUARE

CHARINGCROSS

WATERLOO

LONDONBRIDGE

WATERLOOEAST

EMBANKMENT

TEMPLE

SOUTHWARK

BOROUGH

BLACKFRIARSCANNONSTREET

OLD STREET

CITYTHAMESLINK

PICCADILLYCIRCUS

TOTTENHAMCOURT ROAD

BOND STREET

FARRINGDON

MOORGATE

LIVERPOOLSTREET

COVENTGARDEN

1

23

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2

2

7

6

11

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9

10 13

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25

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L O C A L O C C U P I E R S

1 London School of Economics

2 WeWork

3 Covington & Burling LLP

4 Saatchi & Saatchi

5 Framestore

6 Skype

7 Lastminute.com

8 Sainsbury’s

9 Lego

10 Bird & Bird

11 De Beers

12 Amazon

13 Deloitte

14 Goldman Sachs

15 Hachette

16 Unilever

17 Metro Bank

18 Merrill Lynch

19 AXA

20 London Stock Exchange

21 Ropes and Gray LLP

22 Lewis Silkin LLP

23 Nesta

24 Jones Day LLP

25 Gartner UK Limited


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O N E F E T T E R L A N E O N E F E T T E R L A N E

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L O C A L D E V E L O P M E N T S

MIDTOWN IS ONE OF LONDON’S MAJOR SUB-MARKETS AND HAS BEEN SUBJECT TO SIGNIFICANT DEVELOPMENT ACTIVITY IN RECENT YEARS, WITH A PIPELINE TO SUGGEST THIS WILL CONTINUE.

MIDTOWN HAS RECENTLY WITNESSED AN UNPRECEDENTED TREND OF TECHNOLOGY, MEDIA AND TELECOMMUNICATIONS (TMT) OCCUPIERS MOVING IN FROM LONDON’S TECHNOLOGY HUB SHOREDITCH AND CHOOSING TO OCCUPY HIGH QUALITY SPACE WITHIN THE AREA.

Farringdon WestHB Reavis

138,000 sq ft office development, with ground floor retail and amenity

accommodation2020

20 Farringdon StreetHB Reavis

86,000 sq ft multi-let office developmentCompleted

Fleet Street EstateCity of London Corporation

World class fraud and cybercrime court and new headquarters for the City of

London Police2025 (estimate)

28 Chancery LaneViridis

100,000 sq ft office and retail development. Framestore have let the

entire office accommodationCompleted

Charterhouse PlaceHelical Bar and Ashby Capital (2019)

165,000 sq ft office development, with 30,000 sq ft of ground floor retail

accommodation2021

Plumtree CourtNational Pension Service

827,000 sq ft development let to Goldman Sachs

Completed

Fleet House, New Bridge StreetCity of London Corporation

51,000 sq ft of new development comprising office and retail

accommodation 2022 (estimate)

Morley House HotelShiva Hotels / ICG Longbow120,000 sq ft 191-room hotel

development2021

Smithfield QuarterCity of London Corporation

270,000 sq ft redevelopment for the new site of the Museum of London

2022

Stonecutter CourtGreycoat/Ivanhoe Cambridge

240,000 sq ft of office and retail accommodation2022 (estimate)

Ludgate LondonGreycoat/Goldmans

105,000 sq ft refurbishment comprising office and retail accommodation

2020

17 Charterhouse StreetM&G Investments

145,000 sq ft office development, 27 residential apartments and 6,690 sq ft of warehouse office accommodation

let to De Beers2020

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4 10

2 8

5 11

3 9

6 12

12 118 94 5 ONE67 2 1 103


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D E S C R I P T I O N

S P E C I F I C A T I O N

1 FETTER LANE WAS COMPLETED IN 1988 AND PROVIDES APPROXIMATELY 24,056 SQ FT (2,234.9 SQ M) OF OFFICE, RETAIL AND ANCILLARY ACCOMMODATION ARRANGED OVER LOWER GROUND, GROUND AND SIX UPPER FLOORS.

The office space, totalling 19,584 sq ft (1,819.4 sq m) including reception and BMA, offers an institutional specification which includes; raised floors, recessed fluorescent lighting, double glazing, suspended ceilings and VAV air conditioning.

The office floor plates range from 3,100 - 3,929 sq ft with the exception of the 6th floor which comprises 663 sq ft. The floors benefit from good natural light from all sides and generous floor to ceiling heights ranging from 2.4 - 2.65m throughout with slab to slab heights of 3.25m. The double height office reception fronts onto Fetter Lane and provides two lifts linking the ground to fifth floors.

The ground and lower ground floors benefit from prominent frontage to Fleet Street and Fetter Lane, experiencing high levels of footfall at the junction of these two major thoroughfares.

The current specification of the office space can be summarised as follows:

Substantial double height entrance hall

Generous finished floor to ceiling heights ranging from 2.4 - 2.65m throughout with slab to slab heights of 3.25m

Male and female WCs

VAV Air conditioning

Suspended Ceilings

Raised Floors

Two 10 person lifts providing access to the office space


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A C C O M M O D A T I O N F L O O R P L A N S

The property has been independently measured by Plowman Craven in accordance with the RICS Code of Measuring Practice and provides the following Net Internal Areas:

FLOOR USE NIA SQ FT NIA SQ M

6th Office 663 61.6

5th Office 3,114 289.3

4th Office 3,592 333.7

3rd Office 3,919 364.1

2nd Office 3,929 365.0

1st Office 3,525 327.5

Ground Retail 2,065 270.0

Ground Reception 473 43.9

Ground Office 356 33.1

Ground Storage 13 1.2

Lower Ground Retail 1,276 118.5

Lower Ground Ancillary 1,131 105.1

TOTAL 24,056 2,234.9

G R O U N D F L O O R

F I F T H F L O O R

S E C O N D F L O O R

S I X T H F L O O R

IPMS3 areas are available in the online dataroom.


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T E N U R E

T E N A N C Y

FREEHOLDThe Freehold boundary is shown edged red, for identification only, on the Ordnance Survey plan.

The Property is multi-let to one office tenant and four retail tenants producing a total rent of £1,199,000 per annum reflecting £49.84 per sq ft overall.

Locke Lord LLP took a lease over the whole of the office accommodation expiring 14 November 2019; they have sublet the entire space to Avanta Fetter Lane with a co-terminus lease expiry.

The total passing rent on the office accommodation is £920,000 per annum (£46.98 per sq ft).

The retail units are multi-let to four tenants; Tossed, Cards Galore, Smilepod and an independent sandwich shop producing a total passing rent of £279,000 per annum and a WAULT of 9.35 years to expiry.

TENANT ADDRESS FLOOR AREA (SQ FT)

ITZA (SQ FT)

LEASE START

LEASE EXPIRY

RENT REVIEW

RENT (£PA)

RENT (£PSF)

COMMENTS

Locke Lord (UK) LLP (sub-let to Avanta Fetter Lane)

1 Fetter Lane 1st-6th 18,742

29-Sep-13 14-Nov-19 - 920,000 46.98 The Avanta underlease is drawn outside the security provisions of the Landlord and Tenant Act 1954. The Locke Lord lease has been drawn inside the security provisions of 1954 Act.

Reception Ground 356

BMA Ground 473

Storage Ground 13

Smilepod Limited 176 Fleet Street Unit 1 1,332 56 1-Aug-16 31-Jul-26 1-Aug-21 47,500 35.66 The lease has been drawn inside the security provisions of the Landlord and Tenant Act 1954. The tenant is not in occupation.

Zest Food Limited (t/a Tossed) 176 Fleet Street Unit 2 2,065 730 26-Nov-13 25-Nov-28 26-Nov-2326-Nov-28 110,000 53.27

Parent company guarantee from Tossed Limited. The first 12 months following completion of the assignment dated 28 September 2018 to be at half rent. Reversionary lease signed from 26 November 2028 expiring 25 November 2033. The leases have been drawn outside the security of tenure provisions of the Landlord and Tenant Act 1954.

Maria Del Soccoro Rubiera Iglesias, Alfonso Rubiera Iglesias and Alberto Rubiera Iglesias

175 Fleet Street Unit 3 304 277 13-Feb-15 12-Feb-25 13-Feb-20 44,000 144.74 The lease has been drawn inside the security of tenure provisions of the Landlord and Tenant Act 1954.

Sweet Ventures Limited(t/a Cards Galore) 173 Fleet Street Unit 4 771 528 25-Dec-14 24-Dec-24 25-Dec-19 77,500 100.52 The lease has been drawn inside the security provisions of the Landlord and

Tenant Act 1954.

London Electricity Board 1 Fetter Lane Lower Ground 04-Nov-88 03-Nov-48 Transformer Chamber. Rent of 0.5p payable if demanded.

Accommodation Totals 24,056 1,199,000 49.84

FW

FWFW

FW

Def

FW

CW

Ward Bdy

W

TCB

Cycle H

ire Station

TCB

St D

unst

an's

Cou

rt

Falcon

Court

Pleydell C

t

BOU

VE

RIE

STR

EET

ARDING STREET

PLEYDELL STREET

FLEET STREET

LOM

BAR

D LAN

E

Johnsons Court

Red Lion C

ourt

Crane C

ou rt

OLD

MITR

E CO

UR

T

GOUGH SQ

ROWPEMBERTON

(St Mary's)

160

5 to 11

4 to 7

3

5

62

Building

10

mple Church

55

2021

3

Master's House

1

154

50

3

1

186

22 to

24

17

53

457

165

58

33

Museum

3

15

176

167 to 169

37

Clifford's Inn

180

1

6 to

8

186a

29

30 to 32

46

Francis Taylor

4

184

1

10

40 to 43

49

4

1

12

171

3

61

14 to 236

1 to 12

17

12

Mitre

19

Court

17

140

144

to 1

46

Hen and Chicken Ct

Chambers

4

1

73

5

8

60

PH

4

4 to

7

160a

2

2

2

Buildings

170

185

16

5657

138

Fetter Lane Apartments

QuantumHouse

44

47

Hare Place

1

1 to 2

Hotel

St Dunstan's

133

to 1

37House18

56

to

4

Embassyof the

Republicof Poland

Serjeants Inn

12

11

3

9

173

175

Mitre Court

The freehold title number is NGL757843.

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.


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A S S E T M A N A G E M E N T R E F U R B I S H M E N T A N D E X T E N S I O N

TREHEARNE ARCHITECTS HAVE UNDERTAKEN A FEASIBILITY STUDY TO ASSESS THE REFURBISHMENT POTENTIAL OF 1 FETTER LANE, WHICH IS AVAILABLE IN THE ONLINE DATA ROOM.

The key proposed works for a refurbishment and extension of the existing building include the following;

Consolidation of the plant on the 6th floor;

Building out the existing 6th floor and creation of a communal roof terrace totalling 2,815 sq ft (261.5 sq m) on top of the existing building;

In-filling of terracing on the upper floors overlooking Crane Court to the rear of the property;

Creation of an additional 3,306 sq ft (307.1 sq m) of net lettable office area;

Conversion of the existing Building Manager’s Accommodation and Storage on the ground floor to bicycle storage and shower facilities, with access off Crane Court;

Removal of toilet cubicles on the upper office floors to extract additional net lettable area.

The table below shows the area gains proposed under Option 2 in the Feasibility Study which is available in the online dataroom.

FLOOR EXISTING NIA (SQ FT) PROPOSED NIA (SQ FT)

Office Retail Office Retail

Roof Terrace (2815)

6 663 3,367

5 3,114 3,515

4 3,592 3,913

3 3,919 3,913

2 3,929 3,913

1 3,525 3,913

Ground (Reception) 356 356

Ground (BMA) 473

Ground (Storage) 13

Ground (Retail) 2,065 2,065

Lower Ground 2,407 2,407

Total 19,584 4,472 22,890 4,472

Grand Total 24,056 27,362

CGI of proposed redevelopment

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M A R K E T C O M M E N T A R Y

OCCUPATIONAL

F U R T H E R I N F O R M A T I O N

P R O P O S A L

C O N T A C T S

P L A N N I N GThe property is located in the City of London. It is not listed, but is situated within the Fleet Street Conservation Area.

OFFERS ARE SOUGHT IN EXCESS OF £21,000,000 FOR THE FREEHOLD INTEREST IN THE PROPERTY, SUBJECT TO CONTRACT AND EXCLUSIVE OF VAT.

THIS REFLECTS A NET INITIAL YIELD OF 5.35% AND A CAPITAL VALUE OF £873 PER SQ FT ON THE EXISTING AREA AND £767 PER SQ FT ON THE PROPOSED AREA, ASSUMING 6.75% PURCHASER’S COSTS.

APPLYING A YIELD OF 4.50% TO THE EXISTING RETAIL INCOME THIS PRICING EQUATES TO £776 PER SQ FT ON THE EXISTING OFFICE AREA AND £664 PER SQ FT ON THE PROPOSED OFFICE AREA.

Chris Room+44 (0)20 7588 4433

[email protected]

Marsha Rabinovich+44 (0) 20 7588 4433

[email protected]

Matt Millman+44 (0)20 7588 4433

[email protected]

Andrew Lister+44 (0)20 7588 4433

[email protected]

E P CThe property has an EPC rating of C. A copy of the certificate is available upon request.

V A TThe property is elected for VAT and VAT will therefore be payable on the purchase price. It is anticipated that the transaction will be treated as a Transfer of a Going Concern.

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. June 2019

D A T A R O O MFurther information can be found on the online data room. Please contact the vendor’s agents to request access.

The Midtown office leasing market remains one of Central London’s strongest performing sub-markets.

With a vacancy rate of less than 2.5% and availability of only 1.0m sqft at the start of 2019, prime rents in Midtown have remained relatively stable since mid-2017 at historic highs of around £75.00 per sq ft.

Some recent leasing transactions of note include the following:

INVESTMENTInvestor demand for Midtown assets remains strong, particularly from international investors, as exemplified by Korea’s National Pension Service’s £1.2bn acquisition of Goldman Sachs’ HQ at Plumtree Court in Q3 2018 which demonstrates the strong appetite for Midtown from both occupiers and investors.

Prime Midtown yields remain broadly in line with that of the City at 4.00% - 4.25% for best in class product.

Some recent vacant possession comparables in the Midtown and City markets include the following:

PROPERTY SIZE (SQ FT)

TENURE TENANCY PROFILE

ACHIEVED PRICE

(CAP VAL (£PSF)

PURCHASER

Paxton House, 30 Artillery Lane, E1 12,487 Freehold 0.5 years £11,100,000 £889 GMS Estates

12 Roger Street, WC1 17,798 Freehold 0.5 years £12,850,000 £722 Clearbell

1 Frying Pan Alley, E1 25,172 Freehold Vacant Possession £20,800,000 £826

Usbourne Publishing (Owner Occupier)

222 Bishopsgate, EC2 23,065 Freehold 1.1 years £21,100,000 £915 Private Hong Kong Investor

314-320 Grays Inn Road, WC1 20,410 Freehold Short term income £17,000,000 £833 Precis Holdings

PROPERTY SIZE (SQ FT)

TENANT TERM (BREAK)

RENT (£PSF)

DATE OF TRANSACTION

COMMENTS

20 Red Lion Court, WC1 3,067 Confidential 10 years £70.00 Q2 2019

The Bureau, 90 Fetter Lane, EC4 23,778 AB InBev 15 years £77.00 Q4 2018

Break-down as follows; 8th - £90 psf; 7th - £85 psf; 6th - £75 psf; 5th - £75 psf

20 Farringdon Street, EC4 7,110Berkeley

Partnership LLP

10 years £75.00 Q4 2018

Imperial House, 15-19 Kingsway, WC2 6,622 Playbuzz 5 years £74.00 Q2 2018

St Andrews House, 18-20 St Andrews Street, EC4 5,640 Thrings LLP 10 years £67.50 Q2 2018

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FETTER LANE, LONDON EC4 - Allsop · 2019. 10. 31. · ONE FETTER L ANE 3 ONE FETTER L ANE 2...

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