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C O R E C I T Y F R E E H O L D I N V E S T M E N T

LONDON EC3GRACECHURCH STREET55

A reversionary freehold building at the very heart of the City

• Freehold.

• Core City of London location in close proximity to the Bank of England, Leadenhall Market and the Lloyd’s Building.

• 74,622 sq ft (6,932.6 sq m) of office, leisure and ancillary accommodation arranged over basement, lower ground, ground and six upper floors.

• Securely let to four tenants generating a current passing rent inclusive of vendor top-ups of £3,035,449 per annum, reflecting a below market rent of only £40.68 per sq ft overall.

• The Royal London Mutual Insurance Society Limited is the principal tenant, occupying the building as its headquarters and accounting for circa 61% of total income.

• Immediate opportunities to add value and improve the running yield.

• Offers in excess of £60 million are sought for our client’s freehold interest, subject to contract. A purchase at this level reflects a net initial yield of 4.73% and a low capital value of c.£805 per sq ft assuming full purchaser’s costs of 6.80%.

Investment Summary55 Gracechurch Street is locatedin the core of the City of London

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The Leadenhall Building

TheGherkin

22Bishopsgate

The RoyalExchange

Bank ofEngland

LeadenhallMarket

Lloyd’sBuilding

New Bank Station Entrance

Bank Station

Cannon StreetStation

55

6 &

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20 FenchurchStreet 33 Central

Tower ofLondon

PlantationPlace

Monument Station

Over 300 languages are spoken in the city, more than any other in the world

LONDON - THE GLOBAL GATEWAY CITYLondon is a dominant global financial centre which also boasts a rich cultural offering with a variety of internationally recognised museums and top class restaurants. London is the world’s mostvisited global city.

75%of the FTSE 100 call London home

A third of the world’s largest companies are

headquartered in London

£2.45bntech sector investment - over three times

more than the whole German market

UNESCO world heritage sites4

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Over 300 languages are spoken in the city, more than any other in the world

75%

75%of Fortune 500 Companies

have an office in the Capital

C R O S S R A I L , E U R O P E ’ S L A R G E S T I N F R A S T R U C T U R E P R O J E C T , I S O V E R 8 5 % C O M P L E T E

No.1 European city for start-ups

No.14 3 U N I V E R S I T I E S A N D 4 3 5 , 0 0 0 S T U D E N T S

72Michelin-starred restaurants

3 of the top 10 museums and galleries in the world

CONSISTENTLY DOMINATING GLOBAL CAPITAL FLOWS, ATTRACTING MORE CROSS-BORDER CAPITAL INTO REAL

ESTATE THAN ANY OTHER CITY

position ahead of New York in the most recent Global Financial Centres Index (GFCI by Z/Yen Group)

London’s time zone position allows trading with Asia, the Middle East and the Americas

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55 Gracechurch Street is situated in the heart of the City of London, the historic epicentre for trade and commerce in the capital. The property is within 400 metres of both the Bank of England and Leadenhall Market, traversing the border of London’s globally recognised financial district and its renowned insurance quarter.

The 0.38 acre freehold site occupies a prominent position on the east side of Gracechurch Street, a key thoroughfare from outside the City through EC3 to London Bridge. The property is located close to the intersection of Gracechurch Street, Fenchurch Street and Lombard Street, and is within 40 metres of 20 Fenchurch Street (the ‘Walkie Talkie’).

In addition to attracting some of the world’s leading organisations, the micro-location offers an unrivalled retail position within close reach of international retailers such as Gap and Marks & Spencer. High end restaurants, bars and boutiques are also located nearby in Leadenhall Market and the Royal Exchange.

Significant developments have been completed nearby in recent years. Local landmark towers include The Leadenhall Building, 20 Fenchurch Street and W.R. Berkley’s 52 Lime Street which is due to be completed in 2019. These schemes have attracted some of the world’s leading occupiers such as AON, RSA Group, Markel and Clydesdale Bank Plc.

SNOW HILL

BOU

VERIE STREET

FINSBURY

CHEAPSIDE

LUDGATE HILL

OLD

BROA

D ST

REETM

OO

RGAT

E

ALDERSGATE STREET

GRA

CECH

URC

H S

TREE

T

FENCHURCH STREET

CANNON STREET

UPPER THAMES STREET

GRESHAM STREET

QUEEN VICTORIA STREET


FARRING

DO

N STREET

FARRING

DO

N RO

AD

TURNMILL STREET

SHO

E LANE

NEW

FETT

ER L

ANE

FLEET STREET

STRAND

STRAND

ALDWYCHDRURY LANE

KINGSW

AY

HIGH HOLBORNHOLBORN

CHAN

CERY LANE

GRAY’S INN

ROAD

HATTO

N G

ARDEN

THEOBALD’S ROAD

RED LION

STREET

VICTORIA EMBANKMENT

LANCASTER PLACE

TEMPLE PLACE

ARUNDEL STREET

STRAND

LINCOLN’S INN FIELDS


NEW

MAN

’S ROW

PORTUGAL STREET

CAREY STREET

WHETSTONE PARK

SOU

THAM

PTON

ROW

LONDON SCHOOLOF ECONOMICS

INNER TEMPLE GARDENS

GRAY’S INN GARDENS

RED LION SQUARE GARDENS

OLD

BAI

LEY

ST PAUL’S CATHEDRAL

ONE NEW CHANGE

CHARTERHOUSE STREET

GUILDHALL

BANK OF ENGLAND

ROYAL EXCHANGE

LOTHBURY

BARBICAN

MO

OR

LAN

E

STR

EET

BLAC

KFRI

ARS

BRID

GE

CIRCUS

HOUNDSDITCHBEVIS MARKS

ST M

ARY

AXE

MIN

ORIES

ALDGATE HIGH STREET

WHITECHAPEL

ROAD

COMM

ERCIAL STREET

EASTCHEAP

LOWER THAMES STREET

CABLE STREET

THE HIGHWAY

DOCK STREET

ROYAL MINT STREET

TOWER HILL

TOWER OF LONDON

SPITALFIELDS MARKET

ST KATHARINE’SDOCKS

BRICK LANE

LLOYD’S OF LONDON

ROYAL MINT COURT

THOMAS MORE SQUARE

ORNAMENTAL CANAL

THE ROYAL LONDONHOSPITAL

CANN

ON

STREET ROAD

NEW

ROAD

ALIE STREET

COMMERCIAL ROAD

MAN

SELL STREET

30 ST MARY AXE

THE LEADENHALLBUILDING

LOMBARD STREET

THREADNEEDLE STREET

CORNHILLPOULTRY

WATLING STREETST PAUL’S CHURCHYARD

NEW

CH

ANG

E

PRINCE’S ST

LONDON WALL

LIVERPOOL STREET

ST M

ARTI

NS

LE-G

RAN

D

KIN

G E

DW

ARD

ST

GIL

TSPU

R ST

REET

TUDOR STREET

LEMAN STREET

LEADENHALLMARKET

BASING

HALL STREET

QU

EEN

TEMPLE

CHANCERY LANE

FARRINGDON

HOLBORN

VICTORIA

LUTON AIRPORT

SHADWELL

WHITECHAPEL

ALDGATE EASTLIVERPOOL STREET

MOORGATE LIVERPOOL STREET

BARBICAN

BANK

ST PAUL’S

MANSION HOUSE

CANNON STREET

MONUMENT

TOWER HILL

FENCHURCH STREET

CITY THAMESLINK

ALDGATE

ALDGATE EAST

TOWER GATEWAYNEW BANK STATION ENTRANCE

RIVER THAMES

CENTRAL CRIMINAL

COURT

20 FENCHURCH

STREET

A prime City core location in London’s financial & insurance district

Location

SNOW HILL

BOU

VERIE STREET

FINSBURY

CHEAPSIDE

LUDGATE HILL

OLD

BROA

D ST

REETM

OO

RGAT

E

ALDERSGATE STREET

GRA

CECH

URC

H S

TREE

T

FENCHURCH STREET

CANNON STREET

UPPER THAMES STREET

GRESHAM STREET



FARRING

DO

N STREET

FARRING

DO

N RO

AD

TURNMILL STREET

SHO

E LANE

NEW

FETT

ER L

ANE

FLEET STREET

STRAND

STRAND

ALDWYCHDRURY LANE

KINGSW

AY

HIGH HOLBORNHOLBORN

CHAN

CERY LANE

GRAY’S INN

ROAD

HATTO

N G

ARDEN

THEOBALD’S ROAD

RED LION

STREET

VICTORIA EMBANKMENT

LANCASTER PLACE

TEMPLE PLACE

ARUNDEL STREET

STRAND



NEW

MAN

’S ROW

PORTUGAL STREET

CAREY STREET

WHETSTONE PARK

SOU

THAM

PTON

ROW

LONDON SCHOOLOF ECONOMICS

INNER TEMPLE GARDENS

GRAY’S INN GARDENS

RED LION SQUARE GARDENS

OLD

BAI

LEY

ST PAUL’S CATHEDRAL

ONE NEW CHANGE

CHARTERHOUSE STREET

GUILDHALL

BANK OF ENGLAND

ROYAL EXCHANGE

LOTHBURY

BARBICAN

MO

OR

LAN

E

STR

EET

BLAC

KFRI

ARS

BRID

GE

CIRCUS

HOUNDSDITCHBEVIS MARKS

ST M

ARY

AXE

MIN

ORIES

ALDGATE HIGH STREET

WHITECHAPEL

ROAD

COMM

ERCIAL STREET

EASTCHEAP

LOWER THAMES STREET

CABLE STREET

THE HIGHWAY

DOCK STREET

ROYAL MINT STREET

TOWER HILL

TOWER OF LONDON

SPITALFIELDS MARKET

ST KATHARINE’SDOCKS

BRICK LANE

LLOYD’S OF LONDON

ROYAL MINT COURT

THOMAS MORE SQUARE

ORNAMENTAL CANAL

THE ROYAL LONDONHOSPITAL

CANN

ON

STREET ROAD

NEW

ROAD

ALIE STREET

COMMERCIAL ROAD

MAN

SELL STREET

30 ST MARY AXE

THE LEADENHALLBUILDING

LOMBARD STREET

THREADNEEDLE STREET

CORNHILLPOULTRY

WATLING STREETST PAUL’S CHURCHYARD

NEW

CH

ANG

E

PRINCE’S ST

LONDON WALL

LIVERPOOL STREET

ST M

ARTI

NS

LE-G

RAN

D

KIN

G E

DW

ARD

ST

GIL

TSPU

R ST

REET

TUDOR STREET

LEMAN STREET

LEADENHALLMARKET

BASING

HALL STREET

QU

EEN

TEMPLE

CHANCERY LANE

FARRINGDON

HOLBORN

VICTORIA

LUTON AIRPORT

SHADWELL

WHITECHAPEL

ALDGATE EASTLIVERPOOL STREET

MOORGATE LIVERPOOL STREET

BARBICAN

BANK

ST PAUL’S

MANSION HOUSE

CANNON STREET

MONUMENT

TOWER HILL

FENCHURCH STREET

CITY THAMESLINK

ALDGATE

ALDGATE EAST

TOWER GATEWAYNEW BANK STATION ENTRANCE

RIVER THAMES

CENTRAL CRIMINAL

COURT

20 FENCHURCH

STREET

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For decades the City of London has been the focus for global real estate investors. The limited supply of freehold assets keeps both institutional and high net worth investors eager to acquire the best opportunities.Many assets in the vicinity of 55 Gracechurch Street are owned by some of the most discerning and demanding investors from around the world.

A key destination for global real estate investors

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554

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1117

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KGAL (2010)

60 Gracechurch Street

Chuang’s China (2016)

10 Fenchurch Street

Tenacity International (2017)


Credit Suisse (2017)

The Monument Building

Al Ain (2016)

Regis House

Shin Kong Life (2015)


U City (2016)


Al Ain (2017)

One George Yard

Ho Bee Land (2017)

67 Lombard Street

KanAm Grund (2016)

68 Lombard Street

Nan Fung (2016)

108 Cannon Street

Renhe (2017)

110 Cannon Street

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TENACITY 23

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CIT (2016)

12 Arthur Street

Lion Group (2018)

24 Martin Lane

Wells Fargo (2018)

33 Central

Ella Valley Capital (2018)

24 King William Street

TfL - New Bank Station Entrance


ICBC (2010)


Ivanhoé Cambridge (2015)

21 Lombard Street

Alpha Asset Management /

Keppel Land (2015)


Aviva / Northwood (2013)


LKKHPG (2017)

20 Fenchurch Street

Moise Safra (2012)

Plantation Place

Brookfield (2012)

Leadenhall Court

ELLA VALLEY CAPITAL

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554

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Bank and Monument Underground stations are used by more than 52 million passengers a year. The two stations form the third busiest interchange on the London Underground network, with demand doubling over the last ten years.

Transport for London has started work to substantially upgrade the capacity of Bank station by 40%. The £600 million modernisation will include a new station entrance on the 10 King William Steet site in the block which is bounded by Cannon Street, Abchurch Lane, King William Street and Nicholas Lane. The new entrance will be on Cannon Street, approximately 175 metres from 55 Gracechurch Street.

Superb connectivity will be further improved with the completion of the Bank station upgrades in 2022

175m

52m40%

passengers a year

from new Cannon StreetBank station entrance

CGI of the new Bank station entrance on Cannon Street

CGI of the new Bank station entrance on Cannon Street

Transport

increase of Bankstation capacity

With excellent transport links, including six stations within a 10 minute walk, the property has easy access to the rest of Central London and the commuter suburbs beyond

DLR

Pier

Underground

National Rail

Crossrail

BankCurrently: 320m

New entrance: 175m

Moorgate Liverpool Street

Cannon Street 320m

Waterloo

London City Airport

London Bridge

Oxford Circus

Bond Street

Mansion House620m

King’s Cross St Pancras

Monument75m

LutonAirport

Heathrow Airport

StanstedAirport

Gatwick Airport

Canary Wharf

Stratford

Paddington

BakerlooCentralCircleDistrictHammersmith & CityJubileeMetropolitanNorthernPiccadillyVictoria

Tower Hill

Waterloo & City

Fenchurch Street550m

820m

DLR

Pier

Underground

National Rail

Crossrail

BankCurrently: 320m

New entrance: 175m


Cannon Street 320m

Waterloo

London City Airport

London Bridge

Oxford Circus

Bond Street

Mansion House620m


Monument75m

LutonAirport

Heathrow Airport

StanstedAirport

Gatwick Airport

Canary Wharf

Stratford

Paddington


Tower Hill

Waterloo & City


820m

DLR

Pier

Underground

National Rail

Crossrail

BankCurrently: 320m

New entrance: 175m


Cannon Street 320m

Waterloo

London City Airport

London Bridge

Oxford Circus

Bond Street

Mansion House620m


Monument75m

LutonAirport

Heathrow Airport

StanstedAirport

Gatwick Airport

Canary Wharf

Stratford

Paddington


Tower Hill

Waterloo & City


820m

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Crossrail will, for the first time, deliver a direct connection between all of London’s main employment centres, linking Heathrow with Paddington, the West End, the City and Canary Wharf. In peak times a train will run every two and a half minutes in each direction. Two new ticket halls are being constructed at Liverpool Street and Moorgate and will be connected by underground platforms.

The railway will have an estimated 200 million travellers each year and is expected to reduce London journey times by up to 70% as a result. The new Crossrail network will support major regeneration across London and add an estimated £42bn to the UK economy.

The most significant addition to London’s transport capacity since World War II

Crossrail

Heathrow

Paddingto

n

CGI of new Liverpool Street Station

CGI of new Liverpool Street Station

CGI of new Liverpool Street Station entrance

10minsto Liverpool Street

Crossrail station

increase in number of commuters within 45 mins of Central London

30%

Bond Stre

et

Totten

ham C

ourt

Road

Farringd

on

Liverp

ool S

treet

White

chap

el

Canary

Wharf

Stratfo

rd

35 mins 10 mins 7 mins 4 mins 2 mins 2 mins 6 mins 8 mins

Stratfo

rd

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55 Gracechurch Street was developed by Land Securities to an institutional standard and provides 74,622 sq ft of well specified office, leisure and ancillary accommodation arranged over basement, lower ground, ground and six upper floors. The property provides open plan floorplates which range in size from circa 5,000 sq ft to 11,000 sq ft. The floors are regularly configured and benefit from excellent levels of natural light.

The elevation fronting Gracechurch Street is finished with Portland stone and granite. The side elevations are finished with metal and glass curtain walling. Access to the property is via a large contemporary reception area which leads to four thirteen-person passenger lifts. A rear entrance also provides separate access onto Brabant Court and Philpot Lane. There is a gym and a car park in the basement. These are accessed via St. Benet’s Place and Talbot Court respectively.

The Building

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> VAV/ VRF air conditioning systems;

> Metal tiled suspended ceilings;

> Integrated LG7 compliant lighting;

> 150mm raised floors;

> Minimum 2.60 metre finished floor to ceiling height across all floors;

> Male, female and disabled WCs on all floors;

> Refurbished reception;

> Four x 13 person passenger lifts;

> Goods lift serving all floors;

> Vehicle lift serving ground and basement levels;

> Secure car parking and bicycle storage;

> Tenant shower and changing facilities;

> Roof terrace on the 6th floor.

55 Gracechurch Street has recently undergone a significant programme of refurbishment to upgrade the building’s plant and machinery. This includes works to the air conditioning systems and replacement of all lifts within the building.

Specification

5th floor - recently let to Royal London

A measured survey of the property has been undertaken by Plowman Craven in accordance with the guidelines as described in the Sixth Edition of the Code of Measuring Practice, published by the Royal Institution of Chartered Surveyors.

Floor Use Area Area (sq ft) (sq m)

6th Office 5,063 470.4

5th Office 7,855 729.8

4th Office 8,830 820.3

3rd Office 11,202 1,040.7

2nd Office 11,034 1,025.1

1st Office 11,048 1,026.4

Ground Office 6,783 630.2

Ground Reception 1,262 117.2

Ground Storage 167 15.5

Lower Ground Gymnasium 10,656 990.0

Basement Storage 519 48.2

Basement BMO 203 18.9

Total 74,622 6,932.6

Floor Areas

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1 car parking space is located in Talbot Court together with 4 car spaces and dedicated storage for bikes at basement level.

LIFT

LIFT

LIFT

LIFT LIFT

WCWC

GRA

CECH

URC

H S

TREE

T

TALBOT COURT

ST BENET’S PLABRABANT COURT

CE

CARLIFT

STORAGE

Ground Floor8,317 sq ft

First Floor11,048 sq ft

Floor Plans

LIFT

WC

WC

WC

LIFT

LIFT

LIFT LIFT

Office

Core

Storage

Reception

Terrace

OFFICES

LIFT

WC

WC

WC

LIFT

LIFT

LIFT LIFT

Ground Floor8,317 sq ft

First Floor11,048 sq ft

Fifth Floor7,855 sq ft

Sixth Floor5,063 sq ft

Not to scale. For indicative purposes only.

N

LIFT

LIFT

LIFT

LIFT LIFT

WC WC

WC

TERRACE24

& 2

5

Office

Core

Storage

Reception

Terrace

10

4

552b

1

2a

11

33

3937

3

38

32

31

9

6

48

1a

1

2a

55

5-7

Gra

cech

urch

Stre

et

Lombard Street

East Cheap

Saint Georges Lane

Fish

Stre

etHi

ll

Boto

lph

Lane

LeadenH

all Mar ket

55

24

6

10

1

15

812625

5453

57

Lovat Lane

Asia

8

13

7

7

941

31

10

9

60

61

77

5248

81

56

Fenchurch Street

The property is held freehold under title number NGL 435622.

Large Freehold Site

Tenure

55 Gracechurch Street is situated within the jurisdiction of the Corporation of London, which is the local authority for the City of London.

The property is not listed. However, a set of attractive iron gates to the rear of the property fronting Brabant Court are Grade II listed.

The property is located on the border of the Eastcheap Conservation Area with part of the freehold title falling within it.

55 Gracechurch Street sits in close proximity to the Eastern Tower Cluster of the City.

PlanningThe property occupies a large freehold site extending to approximately 0.38 acres (0.15 ha).

Site Area

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Plan 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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55 Gracechurch Street is let to an enviable list of tenants from the insurance, leisure and professional industries including Royal London, Shepherd Compello and Fitness First.

The property is multi-let to three office tenants and one leisure tenant (by way of eight leases). The newly refurbished 5th floor has recently been let to Royal London at a rent of £59.00 per sq ft.

The weighted average unexpired lease term is circa 4.3 years to expiries.

Total income, assuming a vendor top-up in respect of the vacant car parking and storage, is £3,035,448.50 per annum equating to a low overall rent of only £40.68 per sq ft. This compares favourably to prime City of London rental levels currently in excess of £65 per sq ft.

Income Low overall passing rent of £40.68 per sq ft

Royal London occupy the building as their Headquarters

6th Floor

5th Floor

4th Floor

3rd Floor

2nd Floor

1st Floor

Ground Floor

Lower Ground

61%Royal London

25%Lee Hecht

Harrison Penna

9%Shepherd Compello

5%Fitness First

Income by Tenant

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& 29

The property provides an attractive combination of secure income together with more immediate opportunities to add value and improve the running yield.

• 55 Gracechurch Street is approximately 15% reversionary on a headline basis.

• 46% of the income is subject to review offering the opportunity to improve the running yield in the near term.

• The sixth floor lease expires in 2021 providing an opportunity for an uplift to a new headline rent.

Rental Performance

Tenancy ScheduleTenant Floor Use Area Area Lease Rent Lease Passing Passing 1954 Comments (sq ft) (sq m) Start Review Expiry Rent (psf) Rent (pa) Act

Shepherd Compello Limited 6th Office 5,063 470.4 14/09/2011 - 13/09/2021 £51.80 £262,288 Outside Rent settled at September 2016 review. Part sublet to Seer Group Ltd. Service charge cap increases each year by RPI. Cap excludes Landlord’s Fuel Expenses.

The Royal London Mutual 5th Office 7,855 729.8 15/05/2018 - 30/04/2023 £59.00 £463,445 Outside Initial rent free period of 10 months to be topped up by vendor. Insurance Society Limited

The Royal London Mutual 4th Office 8,830 820.3 20/05/2013 01/05/2018 30/04/2023 £43.46 £383,757 Inside Outstanding rent review. Service charge cap increases each year Insurance Society Limited by RPI. Cap excludes Landlord’s Fuel Expenses.

The Royal London Mutual 3rd Office 11,202 1,040.7 24/06/2016 25/12/2017 30/04/2023 £43.57 £488,026.50 Inside Outstanding rent review. Service charge cap increases each yearInsurance Society Limited by RPI. Cap excludes Landlord’s Fuel Expenses.

Basement Parking 1 space 1 space - - - - - - -

The Royal London Mutual 2nd Office 11,034 1,025.1 24/06/2016 25/12/2017 30/04/2023 £45.37 £516,432 Inside Outstanding rent review. Service charge cap increases each year Insurance Society Limited by RPI. Cap excludes Landlord’s Fuel Expenses.

Basement Storage 348 32.3 - - - - - - -

Penna Consulting Limited 1st Office 11,048 1,026.4 25/12/2013 - 23/06/2021 £41.57 £459,300 Outside Lease currently being assigned to Lee Hecht Harrison Penna Limited (guaranteed by Olsten (UK) Holdings Ltd). Service charge cap increases each year by CPI. Cap includes Landlord’s Fuel Expenses.

Penna Consulting Limited Ground Office 6,783 630.2 23/02/2015 23/02/2020 23/06/2021 £44.26 £307,635 Outside Lease currently being assigned to Lee Hecht Harrison Penna Limited (guaranteed by Olsten (UK) Holdings Ltd). Service charge cap increases each year by RPI. Cap excludes Landlord’s Fuel Expenses.

Ground Storage 167 15.5 - - - - - - - Ground Reception 1,262 117.2 - - - - - - -

Vacant Ground Parking 1 space 1 space - - - - £3,000 - Vendor to provide an 18 month rent, rates and service charge (Talbot Court) guarantee.

Fitness First (Curzons) Lower Ground Gymnasium 10,656 990.0 25/03/2017 - 24/03/2022 £13.14 £140,000 Inside -Limited & Part Ground

Vacant Basement Parking 3 spaces 3 spaces - - - - £9,000 - Vendor to provide an 18 month rent, rates and service charge guarantee.

Vacant Basement Storage 171 15.9 - - - £15.00 £2,565 - Vendor to provide an 18 month rent, rates and service charge guarantee. Building Management Office Basement BMA 203 18.9 - - - - - - -

London Electricity PLC Part Basement Sub-station - - - - - - - - License Agreement.

Total 74,622 6,932.7 £40.68 £3,035,448.50

Tenant Floor Use Area Area Lease Rent Lease Passing Passing 1954 Comments (sq ft) (sq m) Start Review Expiry Rent (psf) Rent (pa) Act

Shepherd Compello Limited 6th Office 5,063 470.4 14/09/2011 - 13/09/2021 £51.80 £262,288 Outside Rent settled at September 2016 review. Part sublet to Seer Group Ltd. Service charge cap increases each year by RPI. Cap excludes Landlord’s Fuel Expenses.

The Royal London Mutual 5th Office 7,855 729.8 15/05/2018 - 30/04/2023 £59.00 £463,445 Outside Initial rent free period of 10 months to be topped up by vendor. Insurance Society Limited

The Royal London Mutual 4th Office 8,830 820.3 20/05/2013 01/05/2018 30/04/2023 £43.46 £383,757 Inside Outstanding rent review. Service charge cap increases each year Insurance Society Limited by RPI. Cap excludes Landlord’s Fuel Expenses.

The Royal London Mutual 3rd Office 11,202 1,040.7 24/06/2016 25/12/2017 30/04/2023 £43.57 £488,026.50 Inside Outstanding rent review. Service charge cap increases each yearInsurance Society Limited by RPI. Cap excludes Landlord’s Fuel Expenses.

Basement Parking 1 space 1 space - - - - - - -

The Royal London Mutual 2nd Office 11,034 1,025.1 24/06/2016 25/12/2017 30/04/2023 £45.37 £516,432 Inside Outstanding rent review. Service charge cap increases each year Insurance Society Limited by RPI. Cap excludes Landlord’s Fuel Expenses.

Basement Storage 348 32.3 - - - - - - -

Penna Consulting Limited 1st Office 11,048 1,026.4 25/12/2013 - 23/06/2021 £41.57 £459,300 Outside Lease currently being assigned to Lee Hecht Harrison Penna Limited (guaranteed by Olsten (UK) Holdings Ltd). Service charge cap increases each year by CPI. Cap includes Landlord’s Fuel Expenses.

Penna Consulting Limited Ground Office 6,783 630.2 23/02/2015 23/02/2020 23/06/2021 £44.26 £307,635 Outside Lease currently being assigned to Lee Hecht Harrison Penna Limited (guaranteed by Olsten (UK) Holdings Ltd). Service charge cap increases each year by RPI. Cap excludes Landlord’s Fuel Expenses.

Ground Storage 167 15.5 - - - - - - - Ground Reception 1,262 117.2 - - - - - - -

Vacant Ground Parking 1 space 1 space - - - - £3,000 - Vendor to provide an 18 month rent, rates and service charge (Talbot Court) guarantee.

Fitness First (Curzons) Lower Ground Gymnasium 10,656 990.0 25/03/2017 - 24/03/2022 £13.14 £140,000 Inside -Limited & Part Ground

Vacant Basement Parking 3 spaces 3 spaces - - - - £9,000 - Vendor to provide an 18 month rent, rates and service charge guarantee.

Vacant Basement Storage 171 15.9 - - - £15.00 £2,565 - Vendor to provide an 18 month rent, rates and service charge guarantee. Building Management Office Basement BMA 203 18.9 - - - - - - -

London Electricity PLC Part Basement Sub-station - - - - - - - - License Agreement.

Total 74,622 6,932.7 £40.68 £3,035,448.50

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61% of total income

Royal London Mutual Insurance Society Limited forms part of the Royal London Group, the UK’s largest mutual life and pensions company with £106 billion of total assets under management.

The organisation, headquartered at 55 Gracechurch Street, was founded during 1861 in a London coffee shop. Since then, Royal London has grown to become one of the country’s most trusted providers of life insurance and investment products.

Record sales levels and increased profits were generated during 2016. Pre-tax profits rose 16% from 2015 to reach £282 million and the Present Value of New Business Premiums increased by 28% to £8,686 million. Total sales of personal pensions and drawdown rose 17% from 2015 levels to £3.8 billion.

Royal London won the Outstanding Achievement award at the 27th Financial Adviser Service Awards in 2017 and ‘company of the year’ in 2016. The organisation’s Pension and Investment services were recognised and deemed to have delivered five-star service throughout the previous 12 months.

The Royal London Mutual Insurance Society Limited

Mutual organisations such as Royal London are owned by their members so have no shareholders to pay. This safeguards the distribution of profits which are shared to members or reinvested to provide greater returns and service. The 2016 profit share distributed to the one million members of Royal London totalled £114 million, an increase of 63% from the previous year.

Other subsidiaries within the group include Royal Liver Assurance, Scottish Life, Royal London Asset Management and Caledonian Life.

Further information can be obtained from the company website: www.royallondon.com

A

A2

5A1

Covenants Royal London is the largest mutual insurer in the United Kingdom, with funds under management of over £100 billion

9% of total income

Shepherd Compello Limited specialise in automobile, machinery and heavy equipment insurance. Shepherd Compello increased turnover during 2016/17 by 58% to reach almost £10 million. Profits before taxes have doubled from 2015 levels.

Dun & Bradstreet - A1

Further information can be obtained from the company website: www.shepherdcompello.com

Shepherd Compello Limited

5% of total income

Fitness First is the largest privately owned health club group in the world, consisting of more than 360 clubs capturing over 900,000 members in 16 countries. The company recorded a turnover in 2017 of £101 million, an increase of 35% from the previous year.

Dun & Bradstreet - N2

Further information can be obtained from the company website: www.dwfitnessfirst.com

Fitness First (Curzons) Limited

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25% of total income

Lee Hecht Harrison Penna Limited is a global firm specialising in career transition, leadership development and workplace transformation. The organisation recorded a turnover of £23 million in 2016, up 132% from 2015 levels. The volume of total assets also rose during 2016 by 127% to reach £35 million.

Olsten (UK) Holdings Limited is a wholly owned indirect subsidiary of Adecco Group AG and reported a pre-tax profit of £17.8 million in 2016.

Dun & Bradstreet - 5A1 (Olsten (UK) Holdings Limited)

Further information can be obtained from the company website: www.lhh.com

Lee Hecht Harrison Penna Limited, guaranteed by Olsten (UK) Holdings Limited*

* After completion of lease assignment from Penna Consulting Limited

Opportunities to Add Value

> Settle outstanding rent reviews on the second, third and fourth floor leases. Royal London are currently paying a low passing rent of £45.37, £43.57 and £43.46 per sq ft respectively. The rent review on the sixth floor was recently settled at £51.80 per sq ft.

> Potential restructuring of the occupational leases with Penna and Royal London who are long term occupiers of the building.

> Longer term opportunity to redevelop the site which currently sits in close proximity to the Eastern Tower Cluster of the City.

55 Gracechurch Street benefits from numerous asset management opportunities in the short, medium and long term, allowing prospective purchasers the potential to enhance returns. These include:

Important NoticeSubject to Contract. May 2018.Cushman & Wakefield gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact.Designed and produced by The Looking Glass Design www.tlgd.co.uk

The property is elected for VAT.

VAT

Capital Allowances may be available.

Capital Allowances

An Energy Performance Certificate (EPC) is available on request. The building has a D rating of 98.

EPC

Please contact the vendor’s agent, Cushman & Wakefield, for a user name and password to access the data room.

Data Room

Our client is seeking offers in excess of £60,000,000, subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 4.73% (assuming full purchaser’s costs) and a low capital value of c.£805 per sq ft.

Proposal

If you would like the opportunity to inspect the property, or if you require any further information, then please contact:

Contacts

Martin Lay

T: 020 3296 2021E: [email protected]

David Hookey


James Ball


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