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Three Birchin Lane L O N D O N E C 3

PRIME CITY OF LONDON INVESTMENT OPPORTUNITY

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Investment Summary3 BIRCHIN LANE IS LOCATED IN THE CORE OF THE CITY OF LONDON

Core City of London location in close proximity to the Royal Exchange and the Bank of England.

The property occupies a prominent location on the western side of Birchin Lane.

The Property is held on a 125 year Long Leasehold from The Master, Wardens and Society of the Art or Mystery of Innholders of the City of London from 26th September 2013. The Headlease is geared to 10% of the Open Market Rent, with a current head rent payable of £18,000 per annum.

Attractive mid-terrace Grade II Listed building providing 4,150 sq ft (385.60 sq m) of office and ancillary accommodation arranged over basement, ground and four upper floors.

The property was extensively refurbished in 2014/2015.

The subject property is single-let to Brand Finance Plc for a term of 10 years from 26 September 2013 expiring, September 2023 at a gross passing rent of £215,000 per annum equating to £51.81 per sq ft. The net rent is £197,000 per annum.

Offers are sought in excess of £3,700,000, subject to contract for the Long Leasehold interest reflecting a net initial yield of 5.00% and a capital value of £892 per sq ft assuming purchaser’s costs of 6.52%.

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Location3 BIRCHIN LANE IS LOCATED IN A PRIME POSITION IN THE CORE OF THE CITY OF LONDON, THE WORLD’S LEADING FINANCIAL AND INTERNATIONAL BUSINESS CENTRE SYNONYMOUS WITH THE GLOBAL LEADERS IN THE BANKING, INSURANCE AND LEGAL SECTORS.

Birchin Lane has been a thoroughfare running off Cornhill since the medieval era and was known for its men’s ready-made clothing stores in the 16th and 17th centuries. Today the lane remains an attractive linkage between two of the City Core’s key arterial routes in a prime location within the heart of the traditional City financial core.

Centrally positioned on the western side of Birchin Lane, close to its junction with Cornhill, the building is within 200 metres of the City’s premier landmarks and institutions including the Bank of England, Mansion House and Lloyd’s of London.

The immediate area is home to the headquarters of the world’s most influential corporations including NM Rothschild and Sons and Bloomberg News Agency, which, combined with a number of nationally significant cultural and historic landmarks, creates one of the most characteristic and notable environments in the capital.

Other major local occupiers include Deustche Bank, Investec, RBS, Allianz, Axa XL, Fidessa and Arthur J Gallagher.

As well as being a prime office location, 3 Birchin Lane also substantially benefits from the vibrant and cosmopolitan retail, leisure and restaurant amenities located in close proximity including the exclusive luxury retail and restaurant provisions at the Royal Exchange. The historic Leadenhall Market which dates back to the 14th Century, is also located nearby, attracting tourists and City workers alike with its vibrant and contemporary assembly of restaurants, cafes and shopping amenities.

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LIVERPOOL STREET

BANK

MONUMENT

CANARY WHARF

20 FENCHURCH STREET

‘WALKIE TALKIE BUILDING’

20 GRACECHURCH STREET

ROTHSCHILD & CO

THE LEADENHALLBUILDING

THE BANKOF ENGLAND

SPITALFIELDSMARKET

BROADGATE

22 BISHOPSGATE 10 FENCHURCH

AVENUE

TOWER 42

THE ROYALEXHANGE

TH

RE

AD

NE

ED

LE S

TR

EE

T

CO

RN

HI L

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Connectivity

The property benefits from excellent transport infrastructure, being situated in close proximity to a number of Mainline National Rail and London Underground Stations. The property will also benefit from being only a 10 minute walk to the Crossrail hub at Moorgate and Liverpool Street in late 2020.

BANK AND MONUMENT UNDERGROUND STATION UPGRADE

ELIZABETH LINE (CROSSRAIL)

Proposals include:

– New southbound tunnel and platform for the Northern line

– New station entrance on Cannon Street

– Step-free access between the Northern line, DLR and the street

– A moving walkway for quicker and easier access

– More lifts and escalators to ease congestion and improve accessibility

Bank Station is currently undergoing an extensive

upgrade due to be completed by 2021. The

interlinked stations will feature several new

escalators, a new station entrance and more room

for Northern line passengers.

Due for completion in late 2020, the Elizabeth Line (Crossrail) will 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 network will support major regeneration across London and add an estimated £42bn to the UK economy.

Stra�ord

CanaryWharf

LiverpoolStreet

Stansted

Paddington

10

BondStreet

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Farringdon

LutonGatwick

To�enhamCourt Road

4

Whitechapel

2

6Heathrow Airport

33

8

Bank

(0.1 miles)

2 mins walking

Cannon Street

(0.3 miles)

5 mins walking

Fenchurch Street

(0.4 miles)

9 mins walking

Monument

(0.2 miles)

4 mins walking

London Bridge

(0.8 miles)

12 mins walking

Mansion House

(0.4 miles)

9 mins walking

Moorgate

(0.6 miles)

10 mins walking

Liverpool Street

(0.5 miles)

10 mins walking

3 BIRCHIN LANE IS IDEALLY LOCATED TO BENEFIT FROM LONDON’S EFFICIENT AND RAPIDLY EXPANDING PUBLIC TRANSPORT NETWORK.

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LONDON WALL

LON

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RID

GE

GRA

CEC

HU

RCH

ST

BISH

OPS

GAT

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CANNON STREET

UPPER THAMES ST

LOWER THAMES ST

QUEEN VICTORIA STREET

THREADNEEDLE STREET

MO

OR

GA

TE

PRINC

E’S STREET KIN

G W

ILLIAM STREET

SOU

THW

AR

K B

RID

GE

CHEAPSIDE

POULTRY

CO RNHILL LEADENHALL STREET

LOMBARD STREET

FENCHURCH STREET

ST M

AR

TIN

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E G

RA

ND

EASTCHEAP

GUILDHALL

THE BANKOF ENGLAND

THE ROYALEXCHANGE

LLOYD’SOF LONDON

MANSIONHOUSE

BROADGATEESTATE

FINSBURYCIRCUS

Liverpool Street

Moorgate

St Paul’s

Mansion House

Cannon Street Monument

Bank

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341

11 41

1036

9

26

35

42

25

12

39

40

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6

32

21

4

4

4

4

4

5

7

3

22

17

20

18

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44 14

38

19

29

2830

27

31

8

43

37

2427

13

32

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Local OccupiersCreative/Tech

1 CGI Group

2 The Office Group

3 Salesforce

4 WeWork

5 Insightful Technology

6 Splash Creative

7 Caplin Systems

8 Epiq Systems

9 Worldpay

10 Ventiv Technology

Professional

11 Accenture

12 Kennedys

13 White and Case

14 British Council for Offices

15 Hunton & Williams/Kirkland Ellis

16 Holman Fenwick Willan

17 IPS Group Ltd

18 Sidley Austin

19 Latham & Watkins

20 Meet Recruitment

21 Coventry University

Finance

22 Royal Bank of Canada

23 Standard Life

24 Financial Reporting Council

25 Lloyds Banking Group

26 Rothschild & Co

27 Schroders

28 China Construction Bank

29 Deutsche Bank

30 Blackrock

31 ING

32 Royal Bank of Scotland

Insurance

33 AXA XL

34 Allianz

35 WR Berkeley

36 Prudential

37 Investec

38 Hiscox

39 AIG

40 Lloyd’s Register

41 Towergate Insurance

42 Willis Towers Watson

43 Liverpool Victoria

44 Aon

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The Building3 BIRCHIN LANE WAS BUILT IN 1911 AS THE LONDON HEAD OFFICE OF THE EDINBURGH LIFE ASSURANCE CO. AND DESIGNED BY ARCHITECTS DUNN & WATSON. THE BUILDING HAS A CONCRETE ENCASED STEEL FRAME AND IS CLAD WITH A COMBINATION OF ASHLAR STONE AND BRICK.

Extensively refurbished in 2014/2015, the property provides 4,150 sq ft (385.60 sq m) of office and ancillary accommodation over basement, ground and four upper floors.

The property is accessed via a self-contained entrance hall which gives access to the upper floors via either the main staircase or via a passenger lift. The lift serves the basement to fourth floor inclusive. Male and female WCs are provided in the basement with further WCs on the 1st and 4th floors. The basement benefits from some pavement lighting.

The lower ground and ground floors have housed the Brand Exchange headquarters since 2015, a contemporary and exclusive members’ club and events space nestled in the heart of the City of London. It was launched in 2015 to provide members with a private space to network and socialise. The club holds several prestigious events annually with key speakers in the marketing and financial sectors. It membership is mainly focused on senior brand, finance and marketing professionals from the world’s strongest and most valuable brands.

SPECIFICATION

3 Birchin Lane underwent a significant programme of refurbishment in 2014/2015 to upgrade the building’s plant and machinery. This included works to the air conditioning systems and replacement of the lift.

– VRF air conditioning system;

– LED lighting;

– Mixture of raised floors and perimeter trunking;

– Male and female WCs in the basement with further unisex WCs on each floor;

– Refurbished reception;

– 5 person passenger lift.

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Accommodation

The property has been independently measured by Plowman Craven in accordance with the RICS Code of Measuring Practice 6th Edition and the International Measurement Standards IPMS. The survey is assignable to a purchaser and a Duty of Care Letter can be provided.

A copy of the full measured survey and associated floor plans can be downloaded from the data room.

FLOOR USE NIA (SQ FT)

NIA (SQ M)

Fourth Office 537 49.9

Third Office 739 68.7

Second Office 736 68.4

First Office 737 68.5

Ground Office 855 79.4

Ground Reception - -

Basement Ancillary 546 50.7

TOTAL 4,150 385.6

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Floor Plans

Office

Office

Kitchen

Lobby

Stairs

Toilet

Office

Stairs

Toilet

Corridor

Toilet

Toilet

Stairs

Store Room

Store Room

Toilet

Plant Room

Toilet

Store Room

Kitchen

Corridor

Meeting Room

Entrance

Stairs

Stairs Lift Reception

Basement 546 sq ft 50.7 sq m

Ground855 sq ft 79.4 sq m

Second Floor736 sq ft 68.4 sq m

Fourth Floor537 sq ft 49.9 sq m

B I R C H I N L A N E

C O W P E R ’ S C O U R TNot to scale. Indicative only.

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Tenure Headlease Summary

Tenancy Covenant

The Property is held on a 125 year Long Leasehold

from The Master, Wardens and Society of the Art or

Mystery of Innholders of the City of London from

26 September 2013.

The Headlease is geared to 10% of the Open Market Rent, with a current rent payable of £18,000 per annum.

The Rent is reviewed every 5 years to the greater of the Yearly Rent paid immediately preceding the Rent Review Date and 10% of the Open Market Rent. The next Review Date is the 26 September 2023.

The Property is registered under title no: AGL293818.

A summary of the Headlease is provided below.

A full copy of the document is available in the data room.

Term 125 years from 26 September 2013, expiring 25 September 2138.

Landlord The Master, Wardens and Society of the Art or Mystery of Innholders of the City of London.

Premises All those premises known as 2, 3 and 4 Birchin Lane and 7 Cowpers Court London EC3.

User To use the Premises only as offices within Class B1 of the Town and Country Planning (Use Classes) Order 1987 and subject to Landlord’s consent, which is not to be unreasonably refused or delayed, those parts of the Premises on the ground floor and basement level may also be used for any uses within Class A1, A2, and A3 of the Town and Country Planning (Use Classes) Order 1987.

Not to use the Premises for residential purposes, illegal or immoral purposes, in a way which causes nuisance or damage to the Premises or neighboring property, for auction, public exhibition, political meetings or gaming.

Rent Calculation The Yearly Rent in each Rental Period will be an amount equal to the greater of:

(a) the Yearly Rent paid immediately before the Relevant Review Date; and

(b) 10.00% of the Open Market Rent (as defined).

The Yearly Rent is reviewed each fifth anniversary of the date on which the Term commenced.

Current Ground Rent Payable £18,000 per annum until the next Review Date (26 September 2023).

Alienation a) Not to assign the lease without the consent of the Landlord, not to be unreasonably refused or delayed.

b) Not to underlet the whole of any Permitted Part of the Premises other than in compliance with Clause 4.15 of the Headlease.

c) Not to underlet at anything other than the best terms reasonably obtainable in the open market.

Repair To keep the Premises clean and in good and substantial repair and condition.

Alterations 1. Not to carry out any alterations or additions or do anything at the Premises that amalgamates the Premises with any adjoining building, premises or land and/or that increases or decreases the NIA of the Premises (calculated at the date of this lease) by more than 5%.

2. Subject to 1 above, not without the consent of the Landlord (such consent not to be unreasonably withheld or delayed) to make any internal or external structural or other alteration or addition.

3. The Landlord’s consent is not required for internal non-structural alterations or additions or internal layout changes to the Premises.

Insurance The Tenant is obliged to keep the Premises insured in the joint names of the Landlord and the Tenant.

The entire property is single-let to Brand Finance

Plc for a term of 10 years from 26 September 2013,

expiring 25 September 2023 on a lease outside the

security of tenure provisions of the Landlord and

Tenant Act 1954.

The total gross passing rent payable is £215,000 per annum equating to £51.81 per sq ft. The net rent is £197,000 per annum.

Founded in 1996, Brand Finance is the world’s leading independent brand valuation and strategy consultancy with representation in over 20 locations worldwide.

3 Birchin Lane is the firm’s headquarters and is also home to the company’s Brand Exchange concept.

In the year ended 31 March 2019, Brand Finance Plc reported a statutory accounts profit after tax of £249,000.

The company has a D&B rating of 1A1.

Further information can be found at www.brandfinance.com

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Royal Exchange

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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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Further InformationPLANNING

The Property is situated in the City of London.

The Property is Grade II listed under list entry number 1359147 and lies within the Bank Conservation Area.

VAT

The Property is not elected for the purposes of VAT.

EPC

The Property has an EPC rating of D - 82. A copy of the certificate can be downloaded from the data room.

DATA ROOM

Further information can be downloaded on the data room at https://datarooms.allsop.co.uk/register/3BirchinLane

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ProposalOFFERS ARE SOUGHT IN EXCESS OF £3,700,000, SUBJECT TO CONTRACT FOR THE LONG LEASEHOLD INTEREST REFLECTING A NET INITIAL YIELD OF 5.00% AND A CAPITAL VALUE OF £892 PER SQ FT ASSUMING PURCHASER’S COSTS OF 6.52%.

ContactsFor further information or to arrange an inspection please contact:

Chris Room

Christopher.room@allsop.co.uk 020 7588 4433

Marsha Rabinovich

Marsha.rabinovich@allsop.co.uk020 7588 4433

Antonia Beech

Antonia.Beech@allsop.co.uk020 7588 4433

DISCLAIMER

Allsop LLP on their 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. The market statistics, rental and investments comparables have been supplied by third parties and their accuracy cannot be guaranteed. September 2019 www.cube-design.co.uk (Q4386)

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