01 143 New Bond Street, London, W1

MAYFAIR, LONDON W1

INVESTMENT SUMMARY

Exceptionally rare Bond Street investment with asset management opportunities

Prime New Bond Street

Retail, gallery, office and residential accommodation

11,857 sq ft (1,102 sq m)

Long leasehold - c.41 years remaining at a fixed ground rent of £3,350 pa

Multi-let

Ralph Lauren children’s store

Passing rent - £1,125,300 pa

Only £599 ITZA

Asset management opportunities include:

– Extend headlease

– Enfranchising the residential apartment

– Extend retail into the car park and upper floors to the rear

Offers in excess of £30,000,000

Net initial yield - 3.55%

Reversionary yield - 5.88%

Capital value - £2,530 per sq ft

143 New Bond Street, London, W1 02

03 143 New Bond Street, London, W1

143 New Bond Street is located in the heart of Mayfair on the west side of New Bond Street and opposite the world renowned Sotheby’s auction house. The property occupies a mid-terraced position close to the junctions of Bruton Street and Conduit Street to the south and Grosvenor Street and Maddox Street to the north.

MAYFAIR AND BOND STREET

As the most connected retail and leisure location in the World, the West End attracts over 200 million shoppers annually spending in excess of £7.6bn.

Consumer expenditure is predicted to increase to some £9.1bn per annum by 2016 with over 37% of shoppers coming from overseas and the remainder from either outside or across greater London.

Running from Oxford Street through to Piccadilly, Bond Street is known as Europe’s premier retailing destination offering the most exclusive and prestigious brands. Luxury retailers include Prada, Cartier, Chanel, Hermes, Asprey, Tiffany & Co, Giorgio Armani, Burberry, Ralph Lauren, Patek Philippe and Louis Vuitton to name but a few.

The West End, with Mayfair at the very heart, is ranked number one globally for international flagship designer stores with a world class mix of over 600 shops, 40 renowned theatres, 30 museums and galleries, 17 Michelin star restaurants and 7 green spaces.

Mayfair hotels and restaurants include The Ritz, Claridge’s, Brown’s, The Connaught, Cecconis, Scott’s, Harry’s Bar, Nobu, Gordon Ramsey, The Wolseley, Hakkasan, The Art’s Club and La Petite Maison.

LOCATION

143 New Bond Street, London, W105

143 New Bond Street, London, W1 06

CONDUIT STREET

HERMES

MIU MIU

CHANEL

DIOR

LOUIS VUITTON

OLD BOND STREET

07 143 New Bond Street, London, W1

NEW BOND STREET

BRUTON STREET

BERKELEY SQUARE

FENDI

SOTHEBY’S

IWC

BELSTAFF

MOUNT STREET

143 New Bond Street, London, W1 08

The most connected retail and leisure location in the World, the West End attracts over 200 million shoppers annually, spending in excess of £7.6bn

Not to scale. Indicative only.

COMMUNICATIONS

Mayfair benefits from excellent transport links with four key London Underground stations on its boundary.

CROSSRAIL

Bond Street Underground Station is currently undergoing a major transformation to become a key hub of the Crossrail network. At present the station carries 155,000 passengers a day and once completed the capacity and footfall will increase to 225,000 people daily with commuters being able to travel from Heathrow Airport to Bond Street in just 26 minutes.

Due for completion in 2018, Crossrail will provide a new high speed train service providing thousands of commuters quick access into and across London. Linking Maidenhead and Heathrow Airport in the West through central London and across to Shenfield & Abbey Wood in the East, Crossrail will bring 1.5 million additional people within 60 minutes reach of London’s key business districts and will carry more than 200 million passengers a year.

143 New Bond Street, London, W1 010

500

buses pass down Oxford Street every hour further interconnecting Oxford Street and Mayfair with the

whole of the capital

0.3 miles away

0.5 miles away

0.4 miles away

0.5 miles away

Oxford Circus Underground

Station

Piccadilly Circus Underground

Station

Green Park Underground Station

Bond Street Underground Station

011 143 New Bond Street, London, W1

Artist’s impressions of the proposed Eastern Crossrail entrance for Bond Street station at Hanover Square

HEATHROWAIRPORT

HAYES &HARLINGTON

EALINGBROADWAY PADDINGTON

TOTTENHAMCOURT ROAD

CUSTOMHOUSEMAIDENHEAD WEST EALING ACTON

MAIN LINEBOND STREET FARRINGDON WHITECHAPEL

LIVERPOOLSTREET

WOOLWICH

ABBEY WOOD

STRATFORD SHENFIELDROMFORD

LutonGatwick

Heathrow

Stansted

CANARYWHARF

RO

YAL

ACAD

EMY

OF

A RTS

ROYAL ACADEMY OF ARTS

MU

SEU

M&

ART

GAL

LER

Y

MUSEUM & ART GALLERY

ALBEMARLE STREET

BUR

LIN

GT O

NG

ARD

E NS

NEW BOND STREET OLD BOND STREET

STAF

FOR

DST

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ALBEMARLE STREET

PIC

CAD

ILLY

BRU

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STR

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GR

AFTO

NST

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TOXF

ORD

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EET BR

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BOND STREET RETAIL

143 New Bond Street, London, W1 012

RO

YAL

ACAD

EMY

OF

A RTS

ROYAL ACADEMY OF ARTS

MU

SEU

M&

ART

GAL

LER

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MUSEUM & ART GALLERY

ALBEMARLE STREET

BUR

LIN

GT O

NG

ARD

E NS

NEW BOND STREET OLD BOND STREET

STAF

FOR

DST

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ALBEMARLE STREET

PIC

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013 143 New Bond Street, London, W1

143 New Bond Street is located in the heart of Mayfair on the west side of New Bond Street and opposite the world renowned Sotheby’s auction house.

143 New Bond Street, London, W1 014

015 143 New Bond Street, London, W1

DESCRIPTION

Originally built in the mid-18th Century, 143 New Bond Street was rebuilt behind a Grade II listed façade in 1957 and comprises a modern and attractive mixed use building providing retail, gallery, office and residential accommodation. Arranged over lower ground, ground and six upper floors the property provides a total of 11,857 sq ft (1,102 sq m).

The retail unit is arranged over lower ground and ground floors totalling 3,261 sq ft (303 sq m) and benefitting from 9m of prime retail frontage to New Bond Street. The upper floors provide gallery/office accommodation at first floor level, self-contained offices over second to fifth floors and a residential apartment on 6th floor with balcony and stunning views over New Bond Street and the West End. The upper floors are accessed via a separate dedicated entrance also from New Bond Street. A car park affording 7 spaces and totalling 1,903 sq ft (176.8 sq m) is provided at basement level and is accessed from Bruton Place.

143 New Bond Street, London, W1 016

017 143 New Bond Street, London, W1

143 New Bond Street, London, W1 018

019 143 New Bond Street, London, W1

143 New Bond Street, London, W1 020

First floor gallery

021 143 New Bond Street, London, W1

143 New Bond Street, London, W1 022

LOWER GROUND FLOOR

GROUND FLOOR

TYPICAL UPPER FLOOR (2nd)

W/C

W/CLift

Office

New

Bo

nd

Str

eet

Lift

Retail

New

Bo

nd

Str

eet

W/C

W/C

Car Park

Car Park Gate

New

Bo

nd

Str

eet

Not to scale. Indicative only.

ACCOMMODATION

FLOOR USE AREA (SQ FT) AREA (SQ M)

Sixth Residential 882 82.0

Fifth Offices 864 80.2

Fourth Offices 960 89.1

Third Offices 965 89.7

Second Offices 983 91.3

First Offices/Art Gallery 2,039 189.4

Ground Retail 2,691 250

Zone A Retail 642 59.6

Zone B Retail 737 68.5

Zone C Retail 869 80.7

Zone D Retail 443 41.2

(ITZA) (Retail) (1,283) (119.2)

Basement Storage 570 53.0

Ground Floor Bruton Place

Car Space (7) 1,903 176.8

TOTAL 11,857 1,101.6

023 143 New Bond Street, London, W1

143 New Bond Street, London, W1 024

TENANCIES

Multi-let in accordance with the tenancy schedule below producing a total rental income of £1,125,300 p.a.

TENANT FLOORS USE AREA SQ FT

AREA SQ M

LEASE TERM

RENT REVIEW(BREAK)

RENT PA (PSF)

ERV COMMENTS

Molyneux Rose LLP

Sixth Residential 882 82 25/03/2011 - 24/03/2016

N/A £139,000(£51.36)

£216,480 (£80.00)

Lease guaranteed by MJ Gillies, MR Little, JR Lochrane and CM Tippets.

6th floor sublet to Molyneux Investments Ltd.

5th floor sublet to Pelican Partners (Peterborough) LLP.

Rent psf does not include car parking.

Fifth Offices 864 80

Fourth Offices 960 89

Basement Car Spaces (7)

1,903 177

Whitebox Advisors London LLP

Third Offices 965 90 14/07/2011-13/07/2016

£50,000(£51.81)

£77,200 (£80.00)

Outside 1954 Act.

Rent deposit of £36,000 held.

Service charge cap of £10,000 pa subject to RPI linked uplifts.

Pivotal Holdings Ltd

Second Offices 983 91 £50,000(£50.86)

£78,640 (£80.00)

Leaseback of the second floor to the vendor with terms to be agreed.

Olivier Malingue Ltd

First Offices or Art Gallery

2,039 189 26/06/2012-25/06/2022

26/06/2017(26/06/2017)

£111,300(£54.59)

£203,900 (£100.00)

On assignment from Ayyam Gallery London Ltd.

Outside 1954 Act.

Rent deposit of £139,560 held.

Service charge cap of £25,200 pa subject to RPI linked uplifts.

Rent reviewed to higher of A1 or B1.

If break not operated 6 months at 50% of rent from 26/06/2017 to 25/12/2017.

Ralph Lauren London Ltd

Ground Retail 2,691 250 24/06/2001-23/06/2026

24/06/2016 & 24/06/2021

£775,000 (£599 ZA)

£1,289,840 (£1,000 ZA)

Let on effective full repairing and insuring lease.

(ITZA) Retail (1,283) (119)

Basement Storage 570 53

TOTAL 11,857 1,102 £1,125,300 £1,866,060

025 143 New Bond Street, London, W1

BRUTONSTREET

BLOOMFIELDPLA

CE

STGEORGESTREET

NEWBOND

STREET

BOURDO

NSTREET

BRUTONPLACE

MADDOX

STREET

143

TENURE

Long leasehold from The Mayor and Commonality and Citizens of the City of London for a term of 99 years from the 25th March 1958 (c.41 years remaining) at a fixed ground rent of £3,350 per annum.

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.

143 New Bond Street, London, W1 026

027 143 New Bond Street, London, W1

ASSET MANAGEMENT OPPORTUNITY

143 New Bond Street provides numerous asset management opportunities including:

- Extension of existing retail unit into the car park

- Re-gear the head lease

- Extend the upper floors over the first floor gallery

- Dispose of / enfranchise the residential apartment

- Refurbishment of the office floors

- Asset management of the upcoming lease events

143 New Bond Street, London, W1 028

MARKET COMMENTARY

DATE ADDRESS POSTCODE AREA (SQ FT)

TENURE PRINCIPAL RETAIL TENANT

PRICE NIY CAPITAL VALUE (PSF)

Q3, 2015 103 Mount Street W1 31,320 LLH Celine £81,000,000 3.00% £2,586

Q3, 2015 145 Oxford Street W1 8,147 FH Retro London £40,000,000 2.63% £4,910

Q1 2015 386 Oxford Street W1 2,541 FH Accessorize & Dr Martens

£23,100,000 2.25% £9,908

Q1 2015 155-157 Oxford Street W1 5,700 FH EE Limited £20,000,000 2.17% £3,509

Q1 2015 100 Knightsbridge SW1 2,781 VFH Rolex £22,250,000 1.70% £8,000

Q1 2015 105-109 Oxford Street W1 19,076 FH Footlocker & Tiger £42,500,000 2.50% £2,228

Q3 2014 130-134 New Bond Street W1 31,313 FH Breitling, Corneliani & Church’s

£210,000,000 2.26% £6,706

Q3, 2014 97 New Bond Street W1 9,994 FH HSBC £18,750,000 1.97% £1,876

Q3 2014 135-137 New Bond Street W1 19,691 FH Belstaff £110,000,000 2.57% £5,586

INVESTMENT

Demand for prime London property remains extremely strong as the market continues to see historically low interest rates whilst maintaining its appeal as a safe haven. As the most connected retail and leisure location in the World, the West End of London attracts over 200 million shoppers annually spending in excess of £7.6bn, underpinning London’s role as a premier retail destination and offering occupiers strong sales and footfall levels.

Availability of prime quality retail stock continues to be heavily outweighed by burgeoning demand by foreign and domestic investors leading to increased competition and yield compression. UK institutions and overseas investors continue to dominate the market seeking quality assets, wealth preservation coupled with asset management and growth opportunities.

Below we set out details of some recent retail led West End investment transactions:

143 New Bond Street, London, W1

OCCUPATIONAL

Bond Street continues to be highly desired and revered by luxury brands due to its undoubted worldwide reputation as a premier retailing destination. Home to many flagship stores, the street has one of the strongest concentrations of luxury brands with retailers seeing a Bond Street presence as a ‘must have’ for brand growth and identity.

Rental growth remains extremely strong as demand for units on the street severely outstrips supply with large key money often being paid alongside record rents to secure limited opportunities amongst fierce competition.

Above we set out details of some recent retail led Mayfair occupational transactions

*The above information has been provided by 3rd parties and is subject to verification.

143 New Bond Street, London, W1 030

EPC

PROPOSAL

VAT

143 New Bond Street has an EPC rating of E (124).

Offers in excess of £30,000,000 for the benefit of our client’s leasehold interest, reflecting a net initial yield of 3.55% and a reversionary yield of 5.88% after deducting purchaser’s costs of 5.8%. A purchase at this level represents a capital value of only £2,530 per sq ft.

The property is VAT elected.

031 143 New Bond Street, London, W1

143 New Bond Street, London, W1 032

For further information or to arrange an inspection, please contact:

Mark Shipman Direct Line: +44 (0)20 7529 5708Email: markshipman@michaelelliott.co.uk

Scott Lister Direct Line: +44 (0)20 7529 5704Email: scottlister@michaelelliott.co.uk

Peter NgDirect Line: +65 6733 3212Email: peterng@michaelelliott.co.uk

Peter WetherellDirect Line: +44 (0)20 7529 5560Email: parw@wetherell.co.uk

Robert Windsor Direct Line: +44 (0)20 7529 5599Email: rjw@wetherell.co.uk

FURTHER INFORMATION

Misrepresentations Act 1967 & Declaration:Michael Elliott and Wetherell for themselves and for the vendors of this property whose agents they are given notice that: a) the particulars are set out as general outline only for the guidance of intending purchasers and do not constitute, nor constitute part of, an offer or contract; b) all descriptions, dimensions, references to 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 should not rely on them as statements or representations of fact but should satisfy themselves by inspection or otherwise as to the correctness of each of them; c) no person in the employment of Michael Elliott nor Wetherell has any authority to make or give any representations or warranty whatever in relation to this property. September 2015

www.michaelelliott.co.uk

www.wetherell.co.uk

www.cube-design.co.uk (Q3237)