N o 1 ROYAL EXCHANGE AVENUE LONDON EC3 RARE PRESTIGIOUS FREEHOLD INVESTMENT WITHIN 100 METRES OF THE BANK OF ENGLAND
N o 1 R o ya l E x c h a N g E av E N u Elo N d o N E c 3
RARE PRESTIGIOUS FREEHOLD INVESTMENT WITHIN 100 METRES OF THE BANK OF ENGLAND
NO.1 ROyAL ExcHANGE AVENUE
N o 1 R o ya l E x c h a N g E av E N u E
ovERviEw
Rare prestigious freehold investment within 100 metres of the Bank of England
Prime city of London location
Attractive refurbished period building providing 13,077 sq.ft. of office and ancillary
accommodation
New 15 year lease subject to a tenant’s option to determine at the 10th anniversary
Five yearly upward only reviews
Securely let with a parent company guarantee from the ultimate holding company,
Business Environment Holding Ltd
Business Environment (BE) has traded for in excess of 20 years providing serviced offices
Proposed rent of £751,928 per annum exclusive (£57.50 per sq.ft. overall)
Excellent opportunity for rental growth and capital appreciation
BE has successfully operated a business centre from the property for 10 years
Highly liquid asset let to an occupier who is heavily incentivised to maintain the premises and
extend the lease upon expiry
2
PRoPosal
Offers are invited, subject to contract, for the
freehold interest.
NO.1 ROyAL ExcHANGE AVENUE
N o 1 R o ya l E x c h a N g E av E N u E
__________________________ $2.7 TRillioN oF
FoREigN ExchaNgE TuRNEd ovER Each day -
41% oF gloBal FoREigN ExchaNgE__________________________
MONUMENT
BANKDLR
n
NM ROTHScHILD & SONS
ARTHUR J GALLAGHER
NATIONWIDE
VTB BANK
FIDESSA
DAVIS POLK & WARDWELL
PUNJAB NATIONAL BANK
BANK OF cHINA
ING
BLAcKROcK
DEUTScHE BANK
HBOS
GATEHOUSE BANK BRITISH STEEL PENSION FUND
KING & SPALDING INTERNATIONAL
AGRIcULTURAL BANK OF cHINA RK cAPITAL MANAGEMENT
BAKER BOTTSBINGHAM MccUTcHEN
ROyAL ExcHANGE
TOWER 42 122 LEADENHALL STREET
30 ST MARy AxE
20 FENcHURcH STREETTHE LLOyD’S BUILDING
WILLIS
BANK OF ENGLAND
BLOOMBERG PLAcE
MANSION HOUSE
LEADENHALL MARKET
BROADGATE
cANNON STREET
LIVERPOOL STREET
M&GDAIWA cAPITAL MARKETS
cANADA LIFE
ROyAL LONDON GROUP
SOHO HOUSE GROUP
SALES FORcE TOWER
LATHAM & WATKINS LLP
AIG ZURIcH
UBS
cATLIN
MMc
cOLUMBIA THREADNEEDLE cBI
cMS cAMERON McKENNA
WELLS FARGO
N o 1 R o ya l E x c h a N g E av E N u E
N o 1 R o ya l E x c h a N g E av E N u E
__________________________ $2.7 TRillioN oF
FoREigN ExchaNgE TuRNEd ovER Each day -
41% oF gloBal FoREigN ExchaNgE__________________________
__________________________400,000 PEoPlE
aRE EMPloyEd iN ThE
ciTy oF loNdoN __________________________
__________________________loNdoN METal ExchaNgE:
75% oF all NoN-FERRous METal FuTuRE BusiNEss. iN 2015 This EQuaTEd To
$12 TRillioN NaTioNal •
4 BillioN ToNNEs •
170 MillioN loTs__________________________
__________________________ lloyd’s oF loNdoN:
ThE woRlds sPEcialisT iNsuRaNcE aNd
RE-iNsuRaNcE MaRKET oPERaTiNg acRoss 200 TERRiToRiEs ________________________
__________________________
ThE ciTy oF loNdoNEsTaBlishEd ad50 __________________________
__________________________loNdoN sTocK ExchaNgE:
300 yEaRs old aNd RaNKEd FiRsT gloBally iN TERMs oF iNTERNaTioNaliTy wiTh 300 coMPaNiEs FRoM
70 NaTioNs lisTEd __________________________
__________________________ gRoss wRiTTEN
iNsuRaNcE PREMiuMs iNcREasEd 6%
iN 2015 To £26.7 BillioN_________________________
__________________________ 251 FoREigN BaNKs
iN loNdoN _________________________
__________________________530 FoREigN coMPaNiEs
lisTEd iN loNdoN__________________________
SEMAHT REVIR
SEMAHTREVIR
WA
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STOCKEXCHANGE
ST PAUL’SCATHEDRAL
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ROYAL
BANK
20FENCHURCH
STREET
BLOOMBERG PLACE
CANNON STREETNot to scale.n
ROyAL ExcHANGE
TOWER 42
THE LLOyD’S BUILDING
BANK OF ENGLAND
MANSION HOUSE
N o 1 R o ya l E x c h a N g E a v E N u E
20 FENcHURcH STREET
NO.1 ROyAL ExcHANGE AVENUE
N o 1 R o ya l E x c h a N g E av E N u E
SEMAHT REVIR
SEMAHTREVIR
WA
LB
RO
OK
OL
D J
EW
RY
STOCKEXCHANGE
ST PAUL’SCATHEDRAL
TATE MODERN
CANNONSTREET
CO
LEM
AN
ST
RE
ET
BA
SING
HA
LL STREET
LIVERPOOLSTREET
MOORGATE
MONUMENT
ST PAUL’S
BARBICAN
MANSION HOUSE
GUILDHALL
MIL
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T
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LOMBARD STREET
CO
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LONDON WALL
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LA
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QUEEN VICTORIA STREET
G R E S H A M S T R E E T
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T H R E A D N E E D L E S T R E E T
THROGMORTON STREET
C O R N H I L L
GR
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QU
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CH
AN
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ROYAL
BANK
20FENCHURCH
STREET
BLOOMBERG PLACE
CANNON STREET
NO.1 ROyAL ExcHANGE AVENUE
N o 1 R o ya l E x c h a N g E av E N u E
locaTioN
1 Royal Exchange Avenue lies at the heart of the financial
centre of the city of London, within 100 metres of the Bank
of England and within a five minute walk of Lloyd’s of London
and the city’s thriving insurance district.
This highly energised commercial environment is steeped in
history and is home to numerous occupiers of international
repute. The Lord Mayors’ Mansion House and Guildhall are
both nearby.
The property is situated in a hidden enclave bordered by
two of the city’s most famous thoroughfares, Threadneedle
Street and cornhill. Access is via an attractive landscaped
piazza which sits adjacent to eastern entrance of The Royal
Exchange.
Royal Exchange is the city’s premier luxury retail
destination. Boutiques include; Hermes, Bulgari,
Tiffany & co, Penhaligon’s, Lulu Guinness and Jo Malone.
The central atrium houses a range of premier restaurants
and bars. These are soon to be complemented by a much
awaited development of 27 Poultry where Soho House and
Sydell Group have teamed up to deliver a flagship 5 star
hotel, restaurants, rooftop bar, health spa and gym.
8
NO.1 ROyAL ExcHANGE AVENUE
N o 1 R o ya l E x c h a N g E av E N u E N o 1 R o ya l E x c h a N g E av E N u E
coNNEcTiviTy
The property is within 200 metres of Bank underground station. This interchange provides access to the central and Northern lines, District and
circle and Waterloo and city lines and Docklands Light Railway (connections to canary Wharf).
Mainline rail and underground services are provided at cannon Street (Mainline, circle and District lines), Moorgate (Mainline, circle, Northern,
Metropolitan and Hammersmith & city lines), Fenchurch Street (Mainline) and Liverpool Street (Mainline, circle, central, Metropolitan and
Hammersmith & city lines) stations, all of which are within a short walk.
communications will be further enhanced in 2018 when crossrail (The Elizabeth Line) is scheduled to become operational. Approximate journey
times and key stations are shown in the diagram below.
Travel Times From Bank (minutes)
* Airports not on the crossrail route - to travel to these airports passengers will need to travel on other connecting rail servicesSource:tfl.gov.uk and rac.co.uk
TOTTENHAM cOURT ROAD
PADDINGTON
HEATHROW A
IRPORT
BOND STREET
FARRINGDON
STRATFORD
cANARy WHARF
LIVERPOOL STREET
Circle
Hammersmith & City
Bakerloo
District
Northern
Central
Piccadilly
Heathrow Metropolitan
Hammersmith & City
Stansted
Northern
Central
Central
Jubilee
DLR
Overground
Jubilee
DLR
Metropolitan
Circle
Hammersmith & City
Luton
Gatwick
Central
Jubilee
**
*
Circle
crossrail connections
LIVERPOOL STREET
WATERLOO
KINGS cROSS/ST PANcRAS
BOND STREET
cANARy WHARF
VIcTORIA
LONDON cITy AIRPORT
PADDINGTON
27
63
1112
14
17
22
N
MONUMENT
STATION
BA
NK STATION
CANNON
STREET
STATION
FENCHURCH
STREET
STATIO
N
MOORGATE
STATION
LIVERPOOL
STREET
STATION
1 MIN4 MINS
5 MINS
DLR
DLR
N o 1 R o ya l E x c h a N g E a v E N u E
9
NO.1 ROyAL ExcHANGE AVENUE
N o 1 R o ya l E x c h a N g E av E N u E
dEscRiPTioN
1 Royal Exchange Avenue is an attractive period building benefitting from a return
frontage onto Finch Lane.
BE acquired the property in 2006 at which time a comprehensive refurbishment
was undertaken to provide 13,077 sq.ft. (1,215 sq.m.) of office and ancillary
accommodation.
continual improvement work has maintained the property to a very high standard
and additional refurbishment works were undertaken recently in 2015.
Arranged over lower ground, ground and four upper floors. The floorplates
have excellent levels of natural daylight from two elevations and from a shared
courtyard. They are typically circa 2,300 sq.ft.
BE has successfully operated a high quality business centre from the building for
the last decade. A desire to provide clients with a premium service is such that the
building is continually upgraded and refreshed.
Amenities include:-
A large reception.
Passenger lift serving all floors.
VRV air conditioning / comfort cooling throughout.
Perimeter trunking.
Wc facilities on all floors.
LG compliant light fittings (these are being upgraded to LED as and
when suites revert).
Large decked roof terrace.
Gym, shower and changing facilities.
Fourth Offices 1,535 142.60
Third Offices 2,372 220.36
Second Offices 2,323 215.81
First Offices 2,308 214.41
Ground Offices & Reception 2,470 229.46
Lower Ground Meeting Room & Ancillary 2,069 192.21
FLOOR USE AREA (SQ.FT.) AREA (SQ.M.)
TOTAL 13,077 1,215
accoMModaTioN
The property has been independently referenced in accordance with the latest RIcS code of
Measuring Practice and provides the following net internal floor areas:-
1 0
NO.1 ROyAL ExcHANGE AVENUE
N o 1 R o ya l E x c h a N g E av E N u E N o 1 R o ya l E x c h a N g E av E N u E
NO.1 ROyAL ExcHANGE AVENUE
N o 1 R o ya l E x c h a N g E av E N u E N o 1 R o ya l E x c h a N g E av E N u E
Bank of England
For indicative purposes only. This plan is based upon the Ordnance Survey map with the sanction of the controller of H.M. Stationary Office. crown copyright reserved.
TENuRE
Freehold.
The area shaded blue denotes basement vaults.
Finch Lane
NO.1 ROyAL ExcHANGE AVENUE
N o 1 R o ya l E x c h a N g E av E N u E
TENANT FLOOR USE AREA AREA TERM NEXT RENT RENT (£PA) RENT COMMENTS (SQ.FT.) (SQ.M.) REVIEW DATE (£ P.S.F)
Fourth Offices 1,535 142.60 5 yearly £751,928 £57.50
Third Offices 2,372 220.36
Second Offices 2,323 215.81
First Offices 2,308 214.41
Ground Offices & Reception 2,470 229.46
Lower Ground Meeting Room 2,069 192.21
& Ancillary
TOTAL 13,077 1,215 £751,928
Inside 1954 Act.
Business Environment Holding
Ltd will act as surety for the first
five years of the term.
15 years from
completion, subject
to a tenant’s option
to determine at the
10th anniversary
Business Environment RE Ltd
TENaNcy
A leaseback on effective full repairing and insuring terms in accordance with the tenancy schedule set out below.
The lease will be subject to five yearly upwards only rent reviews.
1 5
No.1 royal exchaNge aveNue
N o 1 R o ya l E x c h a N g E av E N u E
ThE TENaNT
Be is a private group of companies providing serviced offices throughout the uK with a focus
on central london. The group has successfully traded for 21 years making it one of the most
established in the sector, achieving an operating profit every year.
Be is the second largest independent provider of serviced offices in london with a portfolio of
circa 857,000 sq.ft.. There are seventeen centres, operating 14,000 workstations.
approximately 73.50% of Be’s revenue is generated from london and the South east.
This will rise significantly to in excess of 86% when four new centres are fully integrated.
Further acquisitions are anticipated.
Be places great emphasis on client and employee satisfaction and has won numerous awards
including (on multiple occasions), ‘Business centre of the year’. The group has won this award more
than any other operator. The group has appeared in the ‘Sunday Times Best Small companies To
Work For top 100’ for 7 years. The group has also achieved ‘Investors In People’ status.
The future prospects for Be are well placed in the serviced office sector with rising revenues being
recorded across all of the group’s centres with record turnover and profitability. Moreover, there
is a growing trend towards occupational flexibility and service delivery across virtually all business
sectors.
The following summary has been set out below:-
* reduction in profit on account of new centre openings.
Further information is available online at www.beoffices.com
1 6
Turnover £24,522,825 £32,385,513 £45,148,493
Operating Profit £10,555,742 £8,158,965* £12,476,586
Total Assets less Liabilities £71,550,935 £77,039,701 £85,280,970
31/12/2015 2016 Forecast 2017 Forecast Audited (With New Centres) (With New Centres)
No.1 royal exchaNge aveNue
N o 1 R o ya l E x c h a N g E av E N u E N o 1 R o ya l E x c h a N g E av E N u E
Investment
london remains the world’s number one destination for real estate investment and is perceived to be
a safe haven for overseas investors given its transparent and competitive market and established legal
system. commercial real estate continues to offer strong returns relative to other asset classes.
capital transactions reached £18 billion in 2015 making it one of the most active years on record
and significantly higher than the 10 year annual average. volumes were lower in the run up to the
european referendum as investors sought clarity. Sentiment has improved during august and
September and a number of transactions have taken place during this period.
Wells Fargo, the world’s biggest bank by capitalisation, has undertaken a circa £300m deal to buy a
new european headquarters in the heart of london’s financial district. The majority of acquisitions
have been undertaken by overseas groups taking advantage of favourable exchange rates.
Leasing
The city of london has a highly diversified occupational market. It is home to numerous global
organisations from the Finance, Insurance, TMT, legal, Professional, accounting, Mining,
commodities and Shipping sectors.
Prime grade a rents during Q2 remained unchanged at £70.00 per sq.ft. The largest share of market
activity (circa 41%) in Q2 was located in the city core. lettings of < 5,000 sq.ft. are currently the most
active sub-sector, representing 20% of take up during Q2 2016 (63% of the number of transactions
recorded).
47% of floor space currently under construction in the city of london is already pre-let, moreover,
supply is 22% below the long term-average of 9.4 million sq.ft..
a number of speculative developments have been put on hold following the Brexit result.
The development pipeline is unlikely to keep pace with tenant demand. as and when full confidence
returns to the market, a supply squeeze is likely to give rise to strong rental performance.
Businesses typically seek greater occupational flexibility during periods of market turbulence.
The serviced office sector is very well placed to take advantage of this.
recent leasing transactions:
62-64 cornhill, ec3 Q3 2016 Fh 32,292 £32.00m 4.60% £1,000
10-12 eastcheap, ec3 Q3 2016 Fh 25,576 £25.70m 4.5% £1,005
50 cannon Street, ec4 Q2 2016 Fh 26,115 £29.90m 4.45% £1,144
32 cornhill, ec3 Q2 2016 Fh 14,792 £21.00m 4.25% £1,420
Watergate house, Wc2 Q2 2016 Fh 11,187 £19.90m 3.77% £1,779
1 Bishopsgate, ec2 Q1 2016 Fh 26,406 £32.75m 3.33% £1,240
39 cornhill, ec3 Q1 2016 Fh 20,295 £24.00m 2.90% £1,183
33/35 cornhill, ec3 Q4 2015 Fh 14,087 £14.80m 2.96% £1,050
Address Date Tenure Area (Sq. Ft.) Price NIY Capital Value
1 carey lane, ec2 Q3 2016 opus ltd 2,283 £79.50
32 cornhill, ec3 Q3 2016 Mattos Filho 1,562 £75.00
augustine house, ec2 Q3 2016 MrI Software 3,463 £67.50
6 Dowgate hill, ec4 Q2 2016 Minter ellison 2,404 £70.00
3 copthall avenue, ec2 Q2 2016 Mulvaney capital 3,334 £67.50
26 Throgmorton St, ec2 Q2 2016 Monex europe ltd 3,132 £65.00
37/39 lime Street, ec3 Q2 2016 Norwegian hull club 1,418 £65.00
32 cornhill, ec3 Q1 2016 eQS 600 £80.00
21 great Winchester St, ec2 Q1 2016 The PFa charity 3,721 £70.00
6 Dowgate hill, ec4 Q1 2016 arrow ecS 6,318 £70.00
Address Date Tenant Area (Sq.Ft.) Reported Headline Rent (£ PSF)
MaRkET coMMENTaRy
Britain’s economy is the 5th largest globally and the 2nd largest in europe. unemployment is at its
lowest level for a decade. consumer sentiment and retail sales appear strong and inflation is low.
The governor of the Bank of england has observed that the uK’s financial system has consistently
strengthened over the last 8 years and that the capital allocations of our largest banks is 10 times
higher than pre the collapse of lehman Brothers in 2008.
1 7
recent capital transactions:
NO.1 ROyAL ExcHANGE AVENUE
N o 1 R o ya l E x c h a N g E av E N u E
CORNHILL
RO
YA
L E
XC
HA
NG
E B
UIL
DIN
GS
FINC
H LA
NE
ROYAL EXCHANGE AVENUE
OFFICE
OFFICE
RECEPTION
OFFICE
OFFICEOFFICE
OFFICEOFFICE
LIFTWC
ENTRANCE
GROUND FLOOR
For indicative purposes only. Not to scale.
TyPIcAL UPPER FLOOR (SEcOND)
CORNHILL
RO
YA
L E
XC
HA
NG
E B
UIL
DIN
GS
FINC
H LA
NE
ROYAL EXCHANGE AVENUE
OFFICE
OFFICEOFFICEOFFICE
OFFICE
OFFICE
OFFICE
OFFICE
OFFICE
OFFICE
LIFTWC
FlooR PlaNs
n
RO
yA
L Ex
cH
AN
GE
AVENUE
FIN
cH
LAN
E
1 8
NO.1 ROyAL ExcHANGE AVENUE
N o 1 R o ya l E x c h a N g E av E N u E N o 1 R o ya l E x c h a N g E av E N u E
No.1 royal exchaNge aveNue
N o 1 R o ya l E x c h a N g E av E N u E
PlaNNiNg
grade II listed and situated within the Bank conservation area.
caPital allowaNcEs
No capital allowances are available.
EPc
The property has an energy
Performance certificate (ePc)
rating of D.
vat
The property is elected for vaT.
hall KeMP
37-39 lime Street
london ec3M 7ay
Tel: 020 7100 5555
Douglas hall
Tel: 020 7100 5555
MIchael ellIoTT
3 hanover Square
london W1S 1hD
Tel: 020 7493 8184
Mark Shipman
Tel: 020 7529 5708
Nathan Sugar
Tel: 020 7529 5716
PRoPosal
offers are invited, subject to contract, for the freehold interest.
FuRthER iNFoRmatioN
For further information please contact the vendor’s joint sole agents:-
2 0
NO.1 ROyAL ExcHANGE AVENUE
N o 1 R o ya l E x c h a N g E av E N u E N o 1 R o ya l E x c h a N g E av E N u E
MISREPRESENTATION ACT 1967 AND DECLARATION
Hall Kemp (trading name of HK Property Services Ltd) and Michael Elliott LLP for themselves and for the vendors of this property who agents they are give notice that:
a) the particulars are set out as general outline only for the guidance of intending purchaser’s and do not constitute, not constitute part of, or an offer or contract b) all descriptions, dimensions, references or condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct, but any intending purchaser’s should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of them c) no person in employment of Hall Kemp (trading name of HK Property Services Ltd) or Michael Elliott LLP has any authority to make or give any representation or warranty whatever in relation to this property.
PROPERTY MISDESCRIPTION ACT 1991
These details are believed to be correct at the time of compilation but may be subject to subsequent amendment.
November 2016.
PRoPosal
Offers are invited, subject to contract, for the freehold interest.
FuRThER iNFoRMaTioN
For further information please contact the Vendor’s joint sole agents:-