St. John s Lane London EC1M 4BU Farringdon Freehold Investment For Sale
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Summary + Freehold investment opportunity + Attractive building in prime Farringdon location + Excellent 4,450 sq ft self-contained office/showroom + 9 x sold off loft apartments + 320 meters (4 min walk) from Farringdon Station + Genuine scope to improve office / showroom income + Offers are invited in excess of 4,000,000 + A purchase at 4,000,000 reflects a net initial yield of 4.75% and a reversionary yield of 6.23% assuming purchasing costs at 6.8% 3
Location 28 St Johns Lane is located in Clerkenwell, one of Central London s most sought after urban villages which is home to a diverse workforce and a well-established showroom community. The cosmopolitan area has blossomed over the last decade and is served by an excellent selection of coffee shops, bars, restaurants and boutique hotels. The area has long been home to creative, media and fashion occupiers. Occupier profiles have broadened is recent years, including the arrival of tech companies wishing to be within London s tech belt. Clerkenwell Road, St. John Street and immediate surrounds have become world famous for their interior and furniture showrooms. This is celebrated annually with Clerkenwell Design Week. The impending arrival of the Elizabeth Line at Farringdon Station in 2019 is expected to boost the area further and is anticipated to be a catalyst to further popularity and growth. 4
Location THEOBALD S ROAD Exmouth Market GOSWELL ROAD Clerkenwell Kitchen Leather Lane Market Linkedin Publicis Groupe Alexander McQueen Grainger and Co FARRINGDON ROAD Modern Pantry Yotel The Jerusalem Tavern Zetter FARRINGDON ST JOHN STREET BrewDog 28 St. John s Lane The Rookery Polpo J&A Bar and Café Yelp Whitecross Street Market CLERKENWELL RD OLD STREET Luca The Localist St John s Gaucho Malmaison BARBICAN Look Mum No Hands Smiths of Smithfield Innovation Warehouse Smithfield Market St Bart s Brewery CHANCERY LANE Carluccio s HOLBORN Museum of London 5
Showroom 28 St Johns Lane is a classic 1990 s Clerkenwell warehouse conversion, comprising nine sold off loft apartments from fifth to first floors and an excellent self-contained office/showroom arranged over ground and lower ground floors. The building is of brick construction under a flat roof. The self-contained office/showroom has been meticulously fitted out by the current tenant and boasts the following highlights: + Large frontage onto St. John s Lane + Generous cut-away to ground floor slab + Interconnecting staircase + Bar, kitchen and meeting room areas + Modern light fittings throughout + Raised access floors + Comfort cooling + 4 x demised W/C s + Security shutters 6
Showroom 7
Showroom 8
Floor Sq Ft Use Tenant Lease Start Term Rent p.a. ERV Comments Tenancy schedule Fifth to First N/A Residential 9 x Leaseholders 25/03/1998 125 years 2,750 2,750 Ground rents double every 30 years Ground & Lower Ground 1,799 2,651 4,450 Office / Showroom Oneseat Limited 01/06/2017 5 years 200,000 263,215 Tenant break option 31/05/2020 Lease held outside the 1954 Act 60,000 deposit held by freeholder Total 4,450 202,750 265,965 ERV based on 80.00 psf & 45.00 psf respectively Oneseat Limited (07814515) was incorporated in October 2011 and trades as Frövi. Founded in 1976, Frövi is an acclaimed furniture designer and manufacturer that prides itself on Scandinavian influenced design and British craftsmanship. www.frovi.co.uk 9
Market commentary Occupational Market Demand for good quality office space remains strong and take up is aligned with supply of new and refurbished stock trickling into the market. Best in class office accommodation commands rents exceeding 70psf. Demand for well-located showroom stock is strong and fiercely competitive. Showroom availability is sporadic and demand by far outstrips supply. In turn, showroom accommodation commands the highest s per sq ft rents in the City Fringe. This is due to the very well-established showroom community which is celebrated annually with Clerkenwell Design Week, the event matures and grows each year attracting architects, designers and creatives from all the world. www.clerkenwelldesignweek.com Investment Market The impending arrival of Crossrail, good occupational demand and stable rents underpin a positive investment sentiment across the City Fringe. Q3 and Q4 of 2018 have seen good levels of activity in the investment market with buildings being traded both on and off market. 80 Clerkenwell Road, EC1 Date: Q3 2018 Tenure: Freehold Price: 18,500,000 NIY: 4.65% Cap Val: 1,495 50-54 Clerkenwell Road, EC1 Date: Q3 2018 Tenure: Freehold Price: 11,400,000 NIY: 4.66% Cap Val: 1,273 34-35 Great Sutton Street, EC1 Date: Q1 2018 Tenure: Freehold Price: 11,000,00 NIY: 4.00% Cap Val: 1,135 66 Turnmill Street, EC1 Date: August 2018 Floor: Ground of 780 sq ft Lease: 10yrs / 3yr break Rent: 100+ per sq ft 80 Clerkenwell Road, EC1 Date: October 2017 Floor: G & LG of 3,957 sq ft Lease: 15yrs/10yr break Rent: 81+ per sq ft (blended) G 110 per sq ft LG 55 per sq ft 61-67 Old Street, EC1 Date: August 2018 Floor: G & LG of 3,116 sq ft Lease: 10 yrs / 5yr break Rent: 64+ per sq ft (blended) G 75 per sq ft LG 53 per sq ft 10
Proposal & contact Proposal The freehold interest in freehold title number AGL297100 is offered for sale with the benefit of the tenancies outlined within the tenancy schedule. Price Offers are invited in excess of 4,000,000. A purchase at 4,000,000 reflects a net initial yield of 4.75% and a reversionary yield of 6.23% assuming purchasing costs at 6.8%. VAT The property is elected for VAT Contact For further information or to arrange a viewing please contact the sole selling agents, Anton Page. Chris Antoniou cantoniou@antonpage.com Finn Ledwidge fledwidge@antonpage.com MISREPRESENTATION ACT. ANTON PAGE LLP FOR THEMSELVES AND FOR THE VENDORS OF THIS PROPERTY WHOSE AGENTS THEY ARE, GIVE NOTICE THAT: THESE PARTICULARS DO NOT FORM ANY PART OF ANY OFFER OR CONTRACT: THE STATEMENTS CONTAINED THEREIN ARE ISSUED WITHOUT RESPONSIBILITY ON PART OF THE FIRM OR THEIR CLIENTS AND THEREFORE ARE NOT TO BE RELIED UPON AS STATEMENTS OR REPRESENTATIONS OF FACT, ANY INTENDING PURCHASER MUST SATISFY HIMSELF AS TO THE CORRECTNESS OF EACH STATEMENT MADE HEREIN: AND THE VENDOR DOES NOT MAKE OR GIVE, AND NEITHER THE FIRM NOR ANY OF THEIR EMPLOYEES HAVE THE AUTHORITY TO MAKE OR GIVE, ANY REPRESENTATION OR WARRANTY WHATEVER IN RELATION TO THIS PROPERTY. ALL PRICES EXCLUDE VAT. November 2018 11 Design: Simplify Branding