MINORIES, LONDON EC3

LANDMARK ALDGATE REFURBISHMENT &

INVESTMENT OPPORTUNITY FOR SALE

TABLE OF CONTENTS

INVESTMENT SUMMARY 02

CENTRAL LONDON 04

AERIAL VIEW 06

LOCATION 08

HISTORY 10

THE BUILDING 12

SITUATION 20

LOCAL DEVELOPMENTS 22

ACCOMMODATION 26

FLOOR PLANS 28

TENANCY SCHEDULE 30

INCOME 32

COVENANT 34

TENURE AND ASSET MANAGEMENT 36

MARKET COMMENTARY 38

01

HIGHLY REVERSIONARY CITY OF LONDON FREEHOLD INVESTMENT AND REFURBISHMENT OPPORTUNITY

Freehold.

Ibex House occupies a prominent position to the east of the core of the City of London, in close proximity to Aldgate and Whitechapel.

Iconic Grade II listed 1930s office and leisure building comprising 17,728.59 sq m (190,829 sq ft) of office, restaurant, retail, public house and gym accommodation arranged over basement, lower ground, ground and eight upper floors.

The building is accessed from its Minories entrance, with ‘L’ shaped floorplates and lift cores at either end.

Located on a virtual island site of 0.75 acres on the east side of Minories, bounded by Portsoken Street to the south and Haydon Street to the north.

Multi-let to 33 tenants including the London Headquarters of PLP Architecture, Capita Business Services, BBC Media Action, Breast Cancer Now, Lark (Group) Ltd and Virgin Active Health Clubs Ltd.

The weighted average unexpired term is 6.05 years to expiry and 1.04 years to breaks (excluding the Public House and the Fairtrade Foundation).

The property is highly reversionary and provides a gross income of approximately £5,248,770.69 per annum, reflecting just £28.36 psf overall (excluding the pubic house and Fairtrade Foundation).

Rental evidence in neighbouring comparable buildings is in the region of £50.00 per sq ft.

Immediate active management opportunities to increase rental income through new lettings and numerous well timed rent reviews and lease events.

Medium and long-term potential to reposition the building via major refurbishment (subject to necessary consents).

Offers are sought in excess of £120,000,000 for the Freehold interest in Ibex House, subject to contract and exclusive of VAT, reflecting a net initial yield of 4.10% and a capital value of £629 psf, assuming full purchaser’s costs of 6.79%.

The property is held in a Single Purpose Vehicle, Jersey Property Unit Trust, which may also be available.

INVESTMENT SUMMARY

HIGHLY REVERSIONARY LANDMARK FREEHOLD INVESTMENT AND REFURBISHMENT OPPORTUNITY

Freehold.

Ibex House occupies a prominent position to the east of the core of the City of London, close to Aldgate and Whitechapel, in the heart of London’s Tech Belt.

Iconic Grade II listed Art Deco 1930s building comprising 17,757.86 sq m (191,144 sq ft) of office, restaurant, retail, public house and gym accommodation arranged over basement, lower ground, ground and eight upper floors.

The building is accessed from its Minories entrance, with ‘I’ shaped floorplates and lift cores at either end.

Located on a substantial island site of 0.75 acres on the east side of Minories, bounded by Portsoken Street to the south and Haydon Street to the north.

Multi-let to 28 tenants including the London Headquarters of PLP Architecture, Capita Business Services, BBC Media Action, Breast Cancer Now, Lark (Group) Ltd and Virgin Active Health Clubs Ltd.

The weighted average unexpired term is 5.25 years to expiry and 2.98 years to breaks (excluding the Public House).

The property is highly reversionary and provides a gross income of approximately £6,428,989 per annum, reflecting just £34.68 per sq ft overall (inclusive of vendor top ups and excluding the Public House).

The vendor will provide 12 month rental top ups on all vacant units (approximately 19,625 sq ft).

Rental evidence in neighbouring comparable buildings is in the region of £52.50 psf - £57.50 psf.

Immediate active management opportunities to increase rental income through refurbishment and re-letting of vacant accommodation and numerous well timed rent reviews and lease events.

Potential to reposition the building via major refurbishment, and appeal to the creative industries.

Offers are sought in excess of £120,000,000 for the Freehold interest in Ibex House, subject to contract, reflecting a net initial yield of 5.02% and a capital value of £647 per sq ft, assuming full purchaser’s costs of 6.79%.

The property is held in a Limited Company based in Jersey, the shares of which may be available.

0302

INVESTMENT SUMMARY

DOMINANT GLOBAL TECH & FINANCIAL HUB

COMMERCE

London has a long history of being the dominant global financial hub and a critical artery for the flow of money around the world.

The financial services sector accounts for around 12% of Britain’s economic output, employing around 1.1 million people and paying more taxes than any other industry.

Around a third of Fortune 500 companies are head-quartered in London, which has the fifth largest urban economy in the world with 4.3 million people employed.

London is represented by over 250 global banks and is the world’s leading insurance and re-insurance market, being the only City in the world where all the top 20 insurance firms are active.

TECHNOLOGY

The creative and tech sectors have been one of the main contributors to London and the UK’s economy over the past five years.

London is regarded as one of the most important tech hubs in Europe and is the capital of digital media, with digital job growth anticipated to outperform all other sectors by 2020.

Although the Financial and Insurance sectors remain key drivers for the City of London, the Telecoms, Media and Telecommunications (TMT) sector continues to experience exponential growth. Aldgate and London’s Tech Belt around the City Fringe continues to attract these occupiers with its large floorplates in character buildings, surrounded and complimented by excellent amenities.

THE CAPITAL OF DIGITAL MEDIA

1. City of London

2. Canary Wharf

3. Whitechapel Building

4. Ace Hotel

5. Old Spitalfields Market

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CENTRAL LONDON

PROMINENT CENTRAL LONDON LOCATION

20 Fenchurch Street

Shoreditch High Street Station

Barbican Centre

Liverpool Street Station

Tower Hill

Fenchurch Street Station

The Leadenhall Building

Old Spitalfields Market

Aldgate Station

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AERIAL VIEW

A CULTURALLY VIBRANT QUARTER

Ibex House is situated close to both the main business district of the City of London and moments from Aldgate which has established itself as one of London’s most vibrant and diverse sub-markets.

The area appeals to a broad range of global occupiers from the insurance, financial, professional, as well as creative and tech industries. The redevelopment of the area is bringing new bars, restaurants and cafés to an already culturally vibrant quarter.

1. Tower of London

2. St Katharine Docks

3. Old Spitalfields Market

4. Galvin Hop

5. YMC

6. Curzon Cinema

7. Wrights Oyster & Chop House

8. The Culpeper

9. Truman Brewery

10. Dirty Martini

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LOCATION

Ibex House was completed in 1937 and designed by architects Fuller, Foulsham and Hall in a streamlined ‘Moderne’ style of Modernist architecture.

The building was later restored by Rolfe Judd between 1994 and 1995.

This iconic building is characterised by its distinctive faience cladding and perpetual bands of glazing and was awarded Grade II Listed status in 1982.

1. Newspaper advertisement from the Morning Post in 1937 to announce the launch of Ibex House

2. Ibex House in 1949A PIECE OF HISTORY

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1110

HISTORY

HIGH QUALITY, CONTEMPORARY SPACE BEHIND A PERIOD FAçADE

Ibex House comprises approximately 17,757.86 sq m (191,144 sq ft) and is an iconic 1930s Art Deco building providing office, restaurant, retail, public house and gym accommodation arranged over basement, lower ground, ground and eight upper floors.

The property has had the benefit of floor by floor refurbishment with a recently completed upgrade to the air conditioning and chillers. Throughout the building are a variety of specifications with PLP Architects most recently adapting their accommodation to provide contemporary space with part exposed ceilings and a full length light box to highlight the flexibility of the floorplate from conventional suspended ceilings with recessed lighting, to ultra-trendy and creative space.

SPECIFICATION

Ibex House provides the following overall specification:

— Two pipe fan-coil air conditioning

— Raised floors with a typical void of 80mm

— Metal tiled ceilings with LG7 lighting

— Remodelled reception

— Floor to ceiling heights typically 2.6 metres

— Slab to slab heights typically 3.29 metres

— 6 passenger lifts

— 24 hour access and security

— Bicycle storage

1312

THE BUILDING

1. PLP Architecture

2. PLP Architecture

3. PLP Architecture

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THE BUILDING

GPAD Architects were asked to imagine how an enlarged ground floor reception could look in the future.

A CONTEMPORARY NEW ENTRANCE CONCEPT

Computer generated image.

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THE BUILDING

A CHARACTERFUL ART DECO FAÇADE

Computer generated image.

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THE BUILDING

The property occupies a substantial island site on the east side of Minories and is uniquely situated to appeal to both the insurance market and the burgeoning tech sector of Aldgate and Whitechapel.

Ibex House is prominently situated on the eastern side of Minories and is bounded by Portsoken Street and Haydon Street to the south east of the ‘Leadenhall triangle’ core EC3 insurance and re-insurance centre. To the west and north of Ibex House is the burgeoning tech sector of Whitechapel and Aldgate, with its tech based cluster of buildings including The Relay Building, Aldgate Tower, The Whitechapel Building and 9 Prescot Street.

Significant development is in planning in the vicinity around Ibex House with the Minories Estate being repositioned to provide a 342 bed Hilton Canopy, c.147,000 sq ft of new offices, restaurants and retail. To the south, Lloyds Chambers is being repositioned as a tech based centre and Royal Mint Court has recently been purchased by the Chinese Government to develop a 600,000 sq ft new embassy, educational and cultural hub.

Ibex House is ideally located to benefit from the growth of Aldgate and Whitechapel into one of London’s most vibrant and diverse sub-markets.

The availability of large floorplates and excellent transport connections, especially from east London, has attracted a wide variety of tenants to the area including Government Digital Services, Uber, General Assembly, Tag Communications, Aecom, P&O Nedlloyd, Ince & Co and Reddie & Grose LLP, all of whom highlight the increasingly cosmopolitan nature of the occupier base.

Proximity to amenities such as those located at Goodman’s Fields, Aldgate Place and Spitalfields make the area an ever increasingly attractive place to work.

THE PROPERTY OCCUPIES AN ISLAND SITE ON THE EAST SIDE OF MINORIES

Station Connections Walking Time

Tower Gateway 2 minutes

Fenchurch Street 3 minutes

Tower Hill 4 minutes

Aldgate 4 minutes

Aldgate East 8 minutes

Liverpool Street 10 minutes

BENEFITING FROM LONDON’S RAPIDLY EXPANDING TRANSPORT LINKS

Dock St

Commercial Rd

Fenchurch St

East Smithfield

Prescot St

Vallance Rd

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LOCAL AMENITIES

Restaurants01 The Culpeper02 Chicago Rib Shack03 Aldgate Coffee House 04 Black Sheep Coffee05 Coppa Club06 Sushi Samba07 Exmouth Coffee Co08 Lemon Street Tavern09 Brasserie Blanc10 Chuck Burgers11 LMNH Kitchen12 The Oliver Conquest13 The Pastry Parlour14 Ottolengi15 Department of Coffee and

Social Affairs

Professional01 Clyde & Co02 Maersk Line03 Kennedys04 Thomson Reuters 05 Royal College of

Psychiatrists06 Association of British Insurers07 Browne Jacobson LLP08 Perkins+Will09 The Shipowners’ Club10 Reddie & Grose11 AECOM Ltd12 Ince & Co13 Maersk14 AW Shipping

Creative/Tech01 Sky02 Huddle03 SportsPro Media04 Wavex Technology05 Stockwool06 Uber07 WeWork08 8x8 Solutions09 General Assembly10 SmartFocus11 Essensys12 Techspace13 Currencycloud14 Forward3D15 Puppet Labs

Finance/Insurers01 Santander02 Lloyd’s of London03 CMC Markets04 Société Générale05 AON06 JLT07 Swiss Re08 Lockton09 Willis10 UBS11 AXA12 Chubb Insurance13 Lloyd’s Register14 M&G15 Hiscox

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SITUATION

LOCAL DEVELOPMENTSThe immediate area has experienced unprecedented development activity in recent years with further high profile activity set to continue to transform the micro location.

Royal Mint Court, EC3

Owner Embassy of the People’s Republic of China

Detail 5.4 acre site on the former Royal Mint. Planning consent dated February 2017 for a comprehensive redevelopment to provide new retail and leisure, 1.8 acres of landscaped public realm and 600,000 sq ft of office space.

Status Purchased to house the Embassy of China with associated office and educational facilities.

40 Leadenhall Street, EC3

Owner TH Real Estate

Detail Planning consent granted for a 34 storey office and retail development designed by MAKE Architects and extending to 909,558 sq ft.

Status Demolition has started with completion due 2022.

The Minories Estate, EC3

Owner 4C Hotel Group

Detail This site has planning consent for a new 147,000 sq ft NIA B1 HQ development, a 342-bedroom Canopy by Hilton hotel and 87 residential units in a 15 storey tower.

Status Completion of the hotel and residential is Q2 2020 with the completion of B1 in 2022.

Cityside & Challenger House, E1

Owner Great Portland Estates

Detail 85,000 sq ft of office and retail accommodation.

Status Planning consent granted with likely completion due in mid-late 2019.

Royal Mint Gardens, E1

Owner IJM Land

Detail The site has planning consent for a mixed use scheme of three towers with a new public open space that will deliver 354 residential units, a 236 bedroom hotel and 33 serviced apartments. In addition there will be restaurants, bars, gallery space with sports and training facilities.

Status This ground works are nearly completed with delivery expected towards Q4 2019.

One Braham, E1

Owner Aldgate Developments

Detail Planning consent has been granted for a new development of 324,126 sq ft arranged over 18 storeys.

Status Construction is well advanced with completion due 2021.

The Guinness Estate, E1

Owner The Guinness Partnership

Detail 506 residential units + retail, community and health club accommodation.

Status A planning application has been submitted and approval is pending.

The Butterfly, 1 Portsoken St, E1

Owner Alfred Equities

Detail Planning consent has been granted for a redevelopment of Lloyds Chambers into a new 400,000 sq ft office and retail building.

Status Pursuing a refurbishment on vacant possession to position the building into a new tech hub.

Emperor House, 35 Vine St, EC3

Owner Urbanest

Detail The site is being redeveloped to provide a 643 student bed development over 14 storeys alongside 75,000 sq ft GIA of offices and 10,000 sq ft of incubator spaces.

Status Demolition currently underway.

80 Fenchurch Street, EC3

Owner Partners Group/Yard Nine

Detail The site is being redeveloped to provide 253,000 sq ft of grade A office accommodation with associated retail arranged over 16 storeys.

Status Demolished with ground works completed. Construction has begun with completion Q3 2019.

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EMBASSY OF CHINA

Dock St

Commercial Rd

Fenchurch St

East Smith�eld

Prescot St

Vallance Rd

Bric

k Ln

Alie St

Mansell St

Bevis Marks

Bish

opsg

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Shor

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St

Leadenhall St

Threadneedle St

Houndsditch

Lower Thames St

Tower Hill

EastcheapRoyal Mint St

Cable St

City Rd

Minories

London Wall

Bish

opsg

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Brick Ln

Comm

ercial St

Comm

ercial St

Leman St

Aldgate High St

W

hitechapel H

igh St New

Rd

Cannon St Rd

TOWERGATEWAY

ALDGATEEAST

FENCHURCHSTREET

LIVERPOOLSTREET

SHOREDITCHHIGH ST.

ALDGATE

MONUMENT

TOWERHILL

WHITECHAPEL

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2322

LOCAL DEVELOPMENTS

HOTELSALDGATE PUBLIC REALM

There are a number of leading hotels within the immediate vicinity with more under construction to satisfy increasing demand from both the tourist and corporate market.

The Aldgate Public Realm Strategy lays out a single and inclusive integrated public realm vision for the Aldgate area.

The overall aims of the Aldgate Highway Changes and Public Realm Improvements Project are to:

— enhance safety for road users;

— improve cycling routes;

— improve pedestrian routes and connections;

— introduce more greenery;

— create new public space for events, leisure and play;

— improve lighting in the area

Changes to the traffic layout of the Aldgate gyratory were completed in April 2016. The finished project provides new

10 TRINITY SQUARE

Four Seasons

Developed by Reignwood and recently opened, this luxury hotel provides 100 guest rooms and suites, three restaurants (including 1 Michelin Star) and spa accommodations with 41 private apartments and a private members club.

DORSETT CITY LONDON

Dorsett Hospitality

Developed by a Far East consortium, this 270 bedroom hotel was opened in 2017 arranged over 13 storeys and occupies a prominent position adjacent to Aldgate Station at the top end of Minories.

100 MINORIES

Grange

Grange Hotel has been newly developed overlooking The Tower of London and Tower Bridge to provide a 250 bedroom 4 star hotel.

DOUBLE TREE CITY OF LONDON

Hilton Double Tree

Developed by Mint, now owned by the Bhatia family, the hotel provides 582 rooms and a sky lounge located adjacent to Fenchurch Street Station.

TOWER HILL ONE

Motel One

Developed by Endurance Land and Aberdeen Asset Management in 2015. This new build hotel comprises 291 bedrooms over 16 storeys designed by Mackay and Partners. The hotel occupies a prominent position on the east side of Minories.

THE GRANGE TOWER HILL

Grange

This five star hotel provides 370 ensuite bedrooms opened in June 2011 arranged over 14 floors providing conference facilities, a luxury spa and events centre.

Situated on the eastern boundary of the old City walls, Aldgate connects the City of London Financial District and the western edge of Tower Hamlets. Now a designated GLA opportunity area, Aldgate is set to see significant new development over the coming years.

pedestrian crossing points, allows easier navigation of bus services and introduces two new public spaces on the eastern edge of the City of London.

The project has introduced two-way traffic on Aldgate High Street, St Botolph Street, a section of Middlesex Street and Minories. A section of Middlesex Street has also been closed to traffic at the junction with St Botolph Street.

The highway changes will create new public spaces at Aldgate Square, the centrepiece of this transformational scheme and Eastern public space situated at the junction of Middlesex Street and St Botolph Street.

2524

LOCAL DEVELOPMENTS

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SCHEDULE OF AREAS

The property has been independently measured by Lane and Frankham in accordance with the RICS Code of Measuring Practice (6th Edition) and the International Measuring Standards IPMS.

The survey is assignable to a purchaser and a Duty of Care letter can be provided.

Floor NIA Sq M NIA Sq Ft

8th 623.0 6,706

7th 1,258.1 13,541

6th 1,831.0 19,708

5th 1,985.7 21,374

4th 2,005.9 21,592

3rd 1,849.3 19,905

2nd 1,862.3 20,045

1st 1,834.8 19,750

Ground 1,383.3 14,889

Lower Ground 1,605.0 17,276

Basement 982.3 10,574

TOTAL 17,220.7 185,360

The measured survey does not include the Public House. The total floor area including the Public House is 17,757.86 sq m (191,144 sq ft).

Floor Unit Occupier Sq M Sq Ft

8th 8A Lark (Group) Ltd 623.0 6,706

7th 7A May & Stephens Limited 166.3 1,790

7B PLP Architecture Ltd 135.7 1 ,461

7C Citic Telecom (UK) Limited 56.5 608

7D - (Vacant) 56.4 607

7E UNUM Limited 7.1 76

7F Chios Navigation Company Ltd 1 78.0 1,916

7G UNUM Limited 116.9 1,258

7H Oakeshott Insurance Consultants Limited 59.5 640

7I Lothbury UK Limited 58.0 624

7J - (Vacant) 247.2 2,661

7K Nestor Advisors Ltd 176.5 1,900

6th 6A PLP Architecture Ltd 1,831.0 19,708

5th 5A & 5B Breast Cancer Now 1,985.7 21,374

4th 4A HCP Management Services Ltd 478.8 5,154

4B London Offshore Consultants Limited 1,527.1 16,438

3rd 3A Millbank Management Limited 30.5 328

3B Reprieve 310.4 3,341

3C The Fairtrade Foundation 1,508.4 16,236

2nd 2A & 2B Capita Business Services Limited 1,862.3 20,045

1st 1A BBC Media Action 790.7 8,511

1B Thomas Cooper LLP 1,013.1 10,905

1C BBC Media Action 31.0 334

Ground GA Kane Consulting Limited 31.1 335

GB MYI Ltd 155.5 1,674

GC T.L Dallas (City) Limited 158.8 1,709

GD Phoenix Business Solutions (UK) Ltd 449.5 4,838

GE I Artsybushev (Consulting Rooms) 60.3 649

GF Third Sector Consortia Management LLP 117.2 1,262

GG Sumitomo Warehouse (Europe) GmbH 49.9 537

GH Netherlands CIS Ltd 80.8 870

GI Phoenix Business Solutions (UK) Ltd 96.1 1,034

GRA Mr S Vasu (t/a Superfirm Ltd) 30.2 325

GRB Campos Goncalves (t/a Lazio) 85.7 922

GRC Virgin Active Health Clubs Ltd 68.2 734

Lower Ground LGRA Mr S Vasu (t/a Superfirm Ltd) 57.0 614

LGRB Campos & Goncalves (t/a Lazio) 139.9 1,506

LGRC Virgin Active Health Clubs Ltd 1,378.8 14,841

BMS IBEX London Ltd 29.3 315

Basement BSA Link Market Services 28.2 304

BSB Thomas Cooper LLP 17.6 189

BSC Thomas Cooper LLP 20.2 217

BSD National Dental Plan Ltd (t/a UNUM Dental) 21.0 226

BSE Phoenix Business Solutions (UK) Ltd 22.5 242

BSF Chios Navigation Company Limited 7.7 83

BSG Netherlands CIS Ltd 8.8 95

BSH Cleaners 3.7 40

BSI Cleaners 4.8 52

BSJ - (Vacant) 11.2 121

BSK Link Market Services 36.6 394

BRA Virgin Active Health Clubs Ltd 800.0 8,611

Office

Retail

Storage

Core

Terrace

Public House

2726

ACCOMMODATION

For indicative purposes only. Not to scale.

7TH FLOOR

13,541 sq ft (1,258.1 sq m)

Portsoken Street

Mino

ries

Haydon Street

8TH FLOOR

6,706 sq ft (623.0 sq m)

Portsoken Street

Mino

ries

Haydon Street

TYPICAL FLOOR

20,045 sq ft (1,862.3 sq m)

Portsoken Street

Mino

ries

Haydon Street

BASEMENT FLOOR

10,574 sq ft (982.3 sq m)

Portsoken Street

Mino

ries

Haydon Street

LOWER GROUND FLOOR

17,276 sq ft (1,605.0 sq m)

Portsoken Street

Mino

ries

Haydon Street

GROUND FLOOR

14,889 sq ft (1,383.3 sq m)

Portsoken Street

Mino

ries

Haydon Street

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Office

Retail

Storage

Core

Terrace

Building Managers Office

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FLOOR PLANS

TENANCY SCHEDULETenant Demise Area

Sq FtArea Sq M

Lease From Lease Expiry Next Break Break Clauses Next Rent Review

Annual Rent Rent £psf

Inside/ Outside Act

Comments

8th Floor Lark (Group) Ltd 6,706 623.01 16/05/2015 15/05/2025 - 16/05/2020 £313,596 £46.76 Inside -

7th Floor - Rooms 701-711 May & Stephens Limited 1,790 166.30 25/03/2017 24/03/2020 - Mutual - 6 months' notice - Rolling - £54,060 £30.20 Outside Mutual rolling break with 6 months notice on or after 25/12/2018.

7th Floor - Rooms 712-720 PLP Architecture Ltd 1,461 135.73 01/03/2016 28/02/2019 - Mutual - 6 months' notice - Rolling - £50,785 £34.76 Outside -

7th Floor - Rooms 721-726 Vendor Rental Top Up 607 56.39 - - - - - £33,385 £55.00 - JP Reis Vacated 27/10/2017. SPIE project team occupying space during chiller replacement project. Vendor to provide 12 month rental top up at £55.00 psf.

7th Floor - Rooms 727-733 & 758-764 Chios Navigation Company Limited 1,916 178.00 06/01/2014 05/01/2019 - Mutual - 6 months' notice - Rolling - £44,026 £22.98 Inside Mutual rolling break subject to 6 months notice on or after the 31/12/2015.

7th Floor - Rooms 734-739 Oakeshott Insurance Consultants Limited 640 59.46 24/06/2017 23/06/2020 - Mutual - 6 months' notice - Rolling - £19,200 £30.00 Outside New lease completed 26 May 2017. Mutual rolling break with 6 months notice on or after 31/12/2018.

7th Floor - Rooms 740-745 Lothbury UK Limited 624 57.97 20/06/2017 19/06/2020 - Mutual - 6 months' notice - Rolling - £18,600 £29.81 Outside Mutual rolling break with 6 months notice on or after 31/12/2018. Rent deposit £3,875.

7th Floor - Rooms 746-757 UNUM Limited 1,334 123.93 01/10/2017 31/12/2018 £40,500 £30.36 Outside Requested to extend lease for 1 year, to 31/12/2019.

7th Floor - Rooms 765-770 Citic Telecom (UK) Limited 608 56.49 30/04/2018 29/04/2021 - Mutual - 4 months' notice - Rolling - £18,300 £30.10 Outside 29/05/2018 - 29/04/2019 rent £18,300, 30/04/2019 - 29/05/2019 peppercorn rent, 30/05/2019 - 29/04/2021 rent £18,300.

7th Floor - Rooms 771-785 Vendor Rental Top Up 2,661 247.21 - - - - - £146,355 £55.00 - Vendor to provide 12 month rental top up at £55.00 psf.

7th Floor - Rooms 786-799 Nestor Advisors Limited 1,900 176.52 15/02/2016 14/02/2019 25/03/2019 Mutual - 6 months' notice - Rolling - £66,675 £35.09 Outside Mutual Break on or after 29/09/2017 with 6 months notice. Rent deposit £19,493.63.

6th Floor PLP Architecture Ltd 19,708 1,830.93 02/01/2015 01/01/2025 - - 02/01/2020 £710,100 £36.03 Inside Additional rent of £15,000 as per Deed of Variation (included in the total rent), raised annually from 25.03. This additional rent is payable to cover the cost of reinstatement of the ceiling. Rent deposit £173,755.

5th Floor Breast Cancer Now 21,374 1,985.71 15/01/2015 14/01/2025 15/01/2020 Tenant - 9 months' notice 15/01/2020 £854,760 £39.99 Outside Name change from Project Beacon. Tenant break option upon 9 months notice. Guarantors released in accordance with lease. Rent deposit £427,380.

4th Floor - West Wing HCP Management Services Ltd 5,154 478.82 06/02/2015 30/04/2022 06/02/2018 Tenant - £222,482 £43.17 Outside Tenant has served notice to vacate on 06/11/2018.

4th Floor - East Wing & Central London Offshore Consultants Limited 16,438 1,527.14 14/11/2014 30/04/2022 - - 01/11/2019 £553,320 £33.66 Outside -

3rd Floor - Room 301 Millbank Management Limited 328 30.47 12/11/2016 11/11/2019 - Mutual - Rolling 6 months' notice - £5,000 £15.24 Outside Mutual break option on or after 12/11/2017 with 6 months notice.

3rd Floor - Part Vendor Rental Top Up 16,236 1,508.37 - - - - - £852,390 £52.50 - Current tenant The Fairtrade Foundation vacating in 10/07/2018. They have agreed to reinstate in accordance with dilapidations schedule. Vendor to provide 12 month rental top up at £52.50 psf.

3rd Floor - West Wing Reprieve 3,341 310.39 08/10/2012 07/10/2022 - - 08/10/2017 £100,108 £29.96 Outside Outstanding rent review from 08/10/2017.

2nd Floor Capita Business Services Limited 20,045 1,862.24 09/09/2014 24/12/2025 24/12/2019 Tenant - 9 months' notice 09/09/2019 £601,860 £30.03 Outside If break not served tenant entitled to 1 year rent free 25/12/2019 - 24/12/2020.

1st Floor - Part Centre, West, Front & Room 101 BBC Media Action 8,845 821.73 16/02/2015 24/03/2024 16/02/2020 Tenant - 6 months' notice 16/02/2020 £293,365 £33.17 Outside Part 1st @ £289,278 pa. Room 101 @ 4,087.50 pa. 10 months rent free if break not served.

1st Floor - Rear & Part Centre Thomas Cooper LLP 10,905 1,013.11 25/03/2014 24/03/2024 - - 25/03/2019 £327,060 £29.99 Inside Rent deposit released

Ground Floor - Room 20 Kane Consulting Limited 335 31.12 14/11/2016 13/11/2021 - - - £10,000 £29.85 Outside Rent deposit £8,957.96

Ground Floor - Rooms 21-30 Third Sector Consortia Management LLP (Sublet to Corsearch UK Ltd)

1,262 117.24 15/05/2014 14/05/2019 - - - £37,680 £29.86 Outside 3SC sublet to Corsearch UK Limited for period 22/10/18 - 8/5/19. Undertenant rent deposit of £16,746.66. The rent under the sublease is £50,240.

Ground Floor - Rooms 36-39 Sumitomo Warehouse (Europe) GmbH 537 49.89 09/08/2009 08/08/2019 - - 09/08/2014 £13,425 £25.00 Outside Outstanding rent review from 09/08/2014.

Ground Floor - Rooms 40-45 Netherlands CIS Ltd 870 80.83 02/09/2008 16/01/2019 - - - £24,200 £27.82 Outside Agreed 3-month extension of lease from 02/09/18, at a total rent of £34,840 per annum, with a 2-week rent-free period. Rent deposit £12,100.

Ground Floor - Rooms 47-55 T.L Dallas (City) Limited 1,709 158.77 09/05/2017 08/05/2022 - - - £85,400 £49.97 Outside -

Ground Floor - Rooms 61-70 MYI Ltd 1,674 155.52 16/07/2010 15/07/2020 - - - £67,797 £40.50 Outside -

Ground Floor - Part East - Rooms 71-74, 76-94, 95-99

Phoenix Business Solutions (UK) Ltd 5,872 545.53 31/05/2018 30/05/2023 31/05/2021 Tenant - £239,555 £40.80 Outside Rent free period from lease commencement until 1/12/2018 followed by half rent of £119,777 pa from 1/12/18 during year 1. Both incentive periods are to be topped-up by the vendor. Underlease to Intelliteach agreed 31/05/18-30/05/23.

Ground Floor - Consulting Rooms I Artsybushev 649 60.29 02/02/2012 01/02/2022 - 02/02/2017 £16,400 £25.27 Inside -

Ground & Lower Ground - Retail Mr S Vasu 939 87.24 04/10/2007 03/10/2017 - - - £25,500 £27.16 Inside The Tenant is currently holding over. Terms agreed for a new 5 year term at £25,000 per annum, outside the security provisions of the L&T 1954 Act with a rolling 3-month tenant break. Landlord has a rolling 6-month break after the expiry of 12 months. Rent deposit of £12,763.17 to be retained.

Ground & Part Lower Ground - Restaurant Constantino Lopes Goncalves & Teresa Lourdes Campos Goncalves

2,428 225.57 18/11/2009 28/09/2018 - - 24/06/2017 £85,000 £35.01 Inside Rent inclusive of service charge. Outstanding rent review from 24/06/2017.

Basement, Lower Ground & Ground - Gym Virgin Active Health Clubs Ltd 24,186 2,246.95 29/09/2008 28/09/2033 23/06/2023 Landlord 29/09/2018 £472,087 £19.52 Inside There is an additional rent of £15,619.11 payable for extra usuage of pumps and equipment (included in total rent figure). Name change from Holmes Place Health Clubs.

Lower Ground, Ground, 1st-3rd Floors - Public House Searchgrade Limited 5,784 537.35 29/09/1937 28/09/2936 - - - - - Inside Area excluded from measured survey.

Basement Store A & L Link Market Services Ltd 698 64.85 16/11/2008 15/11/2018 - - 16/11/2013 £8,812 £12.62 Inside (Name Change from Capita Registrars). Outstanding rent review from 16/11/2013. Basement store L denoted as K on floor plans.

Basement Store B Thomas Cooper LLP 189 17.56 25/03/2014 24/03/2024 - - 25/03/2019 £2,363 £12.50 Outside LL break can be served with 6 weeks notice for shower installation, subject to provision of alternative space.

Basement Store C Thomas Cooper LLP 217 20.16 25/03/2014 24/03/2024 - - 25/03/2019 £2,725 £12.56 Outside LL break can be served with 6 weeks notice for shower installation, subject to provision of alternative space.

Basement Store D National Dental Plan Ltd (T/A Unum Dental) 226 21.00 01/10/1998 30/09/2007 - - - £1,105 £4.89 Inside Tenant holding over.

Basement Store E Phoenix Business Solutions (UK) Ltd 242 22.48 - - - - - - - - See lease of Part Ground Floor above.

Basement Store F Chios Navigation Company Limited 83 7.71 - - - - - - - - See lease of Part 7th Floor above.

Basement Store G Netherlands CIS Ltd 95 8.83 16/03/2009 15/03/2019 - - 02/09/2013 £1,500 £15.79 Outside Outstanding rent review from 02/09/2013.

Basement Store H & I Regular Cleaning Services 92 8.55 - - - - - £1,250 £13.59 - Currently billed through Service Charge.

Basement Store J Vendor Rental Top Up 121 11.24 - - - - - £1,512 £12.50 - Vendor to provide 12 month rental top up at £12.50 psf.

Building Management Suite IBEX London Ltd 315 29.26 - - - - - £6,750 £12.78 - Currently billed through Service Charge.

Total 191,144 17,757.86 £6,428,989 £34.68 *

*Rent per sq ft is inclusive of vendor top ups and excludes the Public House.

30 31

TENANCY SCHEDULE

GROSS INCOME

INCOME PROFILE

Ibex House provides a significantly reversionary and varied income stream with outstanding rental growth potential.

The property is multi-let to 25 tenants, one restaurant, a newsagent and a gym. The weighted average unexpired term is 5.25 years to expiry and 2.98 years to breaks, (excluding the Public House).

The key tenants are as follows:

Tenant (Guarantor) Area (Sq Ft)

Expiry Total Rent (£psf)

% of Total Income

Breast Cancer Now 21,374 14/01/2025 £39.99 13.30%

PLP Architecture Ltd 21,169 01/01/2025 (6th Floor)

28/02/2019 (7th Floor)

£36.03 (6th Floor)

£34.76 (7th Floor)

11.84%

Capita Business Services Ltd

20,743 24/12/2025 (2nd Floor)

15/11/18 (Storage)

£30.03

£12.62

9.50%

London Offshore Consultants (LOC) Ltd

16,438 30/04/2022 £33.66 8.61%

Virgin Active Health Clubs Ltd (Virgin Active Holdings Ltd)

24,186 28/09/2033 £19.52 7.34%

Thomas Cooper LLP 11,311 24/03/2024 £29.99 (1st floor)

£12.50 (storage)

5.17%

Lark (Group) Ltd 6,706 15/05/2025 £46.76 4.88%

BBC Media Action 8,845 24/03/2024 £33.17 4.56%

The passing rent can be analysed as follows:

Use Rent (pa)

% of Total Income

Office £5,846,402 90.94%

Retail £25,500 0.40%

A3 £85,000 1.32%

Gym £472,087 7.34%

Total £6,428,989 100%

1. Virgin Active

2. Building Exterior

3. BBC Media Action

3.

2.1.

3332

INCOME

COVENANTSThe covenant information for the eight tenants which account for the highest percentage of income at Ibex House is set out below.

CAPITA BUSINESS SERVICES LTD 9.50% of Rent Passing

Capita Business Services Ltd is a subsidiary of Capita Plc, an international business process outsourcing and professional services company headquartered in London.

Founded in 1984, it is the largest company of its type in the UK with a market share of c.30%. Capita also has operations across Europe, Africa and Asia.

The company reported a turnover of c. £4.167 million in 2017, and has a D&B rating of 5A1.

Further information is available at www.capita.com

THOMAS COOPER LLP5.17% of Rent Passing

Thomas Cooper is an international law firm specialising in maritime, commodities, trade and finance law.

The Group has offices in London, Madrid, Paris, Piraeus, Singapore and San Paulo.

The company reported a turnover of c. £12 million for the year ending 30 April-17.

Further information is available at www.thomascooperlaw.com

LARK (GROUP) LIMITED 4.88% of Rent Passing

Roger Lark & Sons was established as a Lloyd’s broker in 1948. From its humble beginnings as a small family business it has grown over the decades to become of the UK’s most respected independent brokers.

The company employees over 300 staff and reported an increase of 11.5% in turnover of £25.957 million for the year ending December 2016.

The company has a D&B rating of 2A1.

Further information is available at www.larkinsurance.co.uk

BBC MEDIA ACTION4.56% of Rent Passing

BBC Media Action was founded in 1999 by the BBC as its international development charity.

The company has offices in 15 countries across the world, including Africa, Asia and the Middle East, with many of its projects reaching beyond these countries. In 2011, the UK’s Department for International Development (DFID) awarded the charity a £90 million grant to support its media development, governance, health, resilience and humanitarian response work in 14 countries.

BBC Media Action is supported by a range of funders including national governments, the United Nations, foundation, corporate partners and private individuals.

The lease is guaranteed by the British Broadcasting Corporation and the company has a D&B rating of 5A1.

Further information is available at www.bbc.co.uk/mediaaction

VIRGIN ACTIVE HEALTH CLUBS LTD7.34% of Rent Passing

Virgin Active is a subsidiary of Virgin Group Limited, a British multi-national corporation venture capital conglomerate founded by entrepreneurs Sir Richard Branson and Nik Powell. Virgin Group Limited has a global revenue of £16.6 billion.

In 2015, it was announced that Virgin Group and their private equity backers had sold down a controlling stake (80%) to the South African investment firm, Brait. The acquisition by Brait put an enterprise value on the business of c. £1.3 billion.

Virgin Active is the leading international global health club operator with over 1.3 million members and 267 clubs spanning nine countries and four continents.

The lease is guaranteed by Virgin Active Holdings and the company has a D&B rating of 5A1.

Further information is available at www.virginactive.com

BREAST CANCER NOW 13.30% of Rent Passing

Breast Cancer Now is the largest breast cancer research charity in the UK dedicated to funding research.

The charity is currently funding over £26 million worth of ground-breaking research projects, supporting nearly 450 of the world’s brightest researchers at 29 institutions across the UK and Ireland.

For the 2016/17 financial year reported income for the charity was c. £28.3 million with the main sources of income continuing to come from individual benefactors and corporate partnerships.

The charity has a D&B rating of 4A1.

Further information is available at www.breastcancernow.org

PLP ARCHITECTURE LIMITED 11.84% of Rent Passing

PLP Architecture is a multi-award winning London-based architecture practice incorporated in 2009.

The practice is led by a group of Partners including Lee Polisano, David Leventhal, Karen Cook and Ron Bakker, who were formerly in charge of KPF’s London office for over 20 years.

The company continues to enjoy a period of great success and is involved in a range of iconic projects worldwide but particularly in London.

The company reported a turnover of c. £20.657 million for the year ending December 2016 and has a D&B rating of 2A2.

Further information is available at www.plparchitecture.com

LONDON OFFSHORE CONSULTANTS LTD (LOC) 8.61% of Rent Passing

LOC is an independent marine and engineering consultancy and survey organisation, providing services to the shipping and off-shore energy industries.

LOC was established in London in 1979 and now employees over 400 personnel in 27 offices across the world.

The company reported a record revenue of £20.5 million for the year ending December-16 and has a D&B rating of 5A1.

Further information is available at www.loc-group.com

34 35

COVENANT

ASSET MANAGEMENT

HERITAGE APPRAISAL

Ibex House is a rare surviving example of a streamlined “Moderne” style 1930s office building in Central London. It was designed by a firm of little known architects, Fuller, Foulsham and Hall in 1937 and restored by Rolfe Judd between 1994 and 1995. The building is notable for its faience exterior and unbroken fenestration. The interior of the building has been updated to suit modern office requirements and has few visible traces of its original appearance. Although Ibex House is a Grade II Listed building, it is considered that its heritage significance lies mainly in its striking external appearance. There is scope for further reworking of its modernised interior and reconfiguration of the lobby and retail fronting Minories, subject to obtaining all the necessary consents.

A heritage report has been commissioned by Heritage Collective, exploring the parameters for refurbishment of the property, a full copy of which can be found on the data room.

ASSET MANAGEMENT POTENTIAL

Ibex House provides numerous asset management opportunities in the short to medium term.

Short term

The property benefits from well-timed lease events providing the opportunity to drive rental income through capitalising on the highly reversionary passing rent of £34.68 per sq ft.

19,625 sq ft will be vacant on completion offering an immediate opportunity to refurbish and re-let, setting a new rental tone within the building.

Rental evidence in neighbouring comparable buildings is in the region of £52.50 psf - £57.50 psf.

Medium term

Timely lease expiries and tenant breaks allow for a favourable rolling program to reposition and refurbish the building to appeal to the TMT occupier base that is increasingly active in the area.

Potential to explore opportunities for change of use (subject to achieving the necessary consents).

TENURE AND SITE

Ibex House is held Freehold.

The building occupies an island site of c.0.75 acres Goodman’s Yard

Vine Street

Portsoken Street

Minories

Mansell Street

Haydon Street

The Writers' House

St Clare House

OxfordHouse

AmericaHouse

Iveagh Court

Lloyd’s Chambers

King George’s Field

IBEX HOUSE

Tower of London

Embassy of the People’s Republic

of China

3736

TENURE AND ASSET MANAGEMENT

ALDGATE MARKET COMMENTARY

Following a dip in activity in the wake of Brexit, it is the consensus view that London’s long term growth story remains unchanged following the referendum.

The strong fundamentals of the London office market has seen occupiers, TMT firms in particular, showing no signs of slowing down. Overseas capital continues to flow into London attracted by the transparency of an established legal system, low interest rates (further buoyed by favourable sterling-US Dollar currency rates) and the City’s ability to attract and sustain a skilled talent pool. These characteristics have maintained the London market’s strong position in terms of the national and international real estate markets.

Central London’s office market has continued to attract international investment, 2017 saw investment volumes totalling £12.64bn in the City which was 56% higher than turnover in 2016, 57% up on the 10-year average and the highest figure on record.

Take up for 2017 reached over 6.5 million sq ft representing a 10% increase on the 10-year average. Vacancy rates are currently at c.5.6%, sitting well below the long term average of 6.6%.

The development pipeline for the City and City Fringe market remains tight, with approximately 3.8 million sq ft of stock due to be delivered per annum between 2019 and 2020, a large percentage of which has already been pre-let.

Prime rents remain at £68.50 per sq ft with premium rents in excess of £70.00 per sq ft still being achieved for ‘Trophy Space’, although there was downward pressure on rents for second-hand stock. Rent free periods on a 10 year term remain at 24 months for the City Core.

INVESTMENT COMPARABLES

Property Tenure Area (Sq Ft)

Tenant WAULT to Lease Expiry (breaks)

Rent (£/Sq Ft)

Price (£)

Capital Value

(£/Sq Ft)

IY (%) Purchaser Completion Date

1-5 London Wall Buildings, EC2

LLH – 10% geared

209,307 Multi-let 6.5 years (1.8 years)

£29.58 £90M (Quote)

£430 2.11% TBC Under Offer

55 Mark Lane, EC3 FH 161,689 Multi-let 6.6 years £41.73 £127M £785 5.22% Hao Tin (Hong Kong)

Jan 18

Lloyds Chambers, Portsoken Street, E1

FH 193,450 Single-let 2018 £36.70 £97M £501 7.00% Alfred Equities Jan 18

200 Aldersgate, EC1 LLH – 9% geared

445,265 Multi-let 8.2 years £36.78 £320M £719 4.55% Samsung Dec 17

110-114 Middlesex Street, E1

FH 48,825 Multi-let 4.5 years £36.25 £35.7M £732 4.64% Seaforth Land Jun 17

133-137 Whitechapel High Street, E1

LLH – 5% geared

32,385 Office Group 20 years £38.76 £26M £843 4.30% City of London Corporation

May 16

OFFICE OCCUPATIONAL COMPARABLES

Property Tenant Floor Size (Sq Ft) Reported Rent (£/psf)

Term Break Completion Date

One Creechurch Place, EC3 Coverys 6th 15,994 £64.00 10 years - Q2 2018

One Creechurch Place, EC3 Enstar EU Limited 7th & 8th 31,958 £64.00 10 years - Q2 2018

Relay Building, E1 Blockchain 6th 15,815 £56.00 10 years 5th year Q2 2018

Aldgate Tower, E1 Groupon 11th & 12th 40,000 £55.00 Assignment (TBC) Q1 2018

45 Folgate Street, E1 Selligent 2nd 3,396 £65.00 5 years 3rd year Q3 2017

Relay Building, E1 Mindspace 4th & 5th 31,744 £53.00 20 years 15th year Q3 2017

Whitechapel Building, E1 ComeOn London Ltd 2nd 12,716 £55.00 10 years 5th year Q3 2017

30 Minories, EC3 Compliance Online Ltd 7th 3,520 £50.00 5 years - Q2 2017

As investors become increasingly nervous about the effects of Brexit on the financial services industries associated with the core City market, the popularity of sub-markets associated with the expanding TMT sector such as Aldgate has soared in recent years. Aldgate has demonstrated its appeal to international investors in recent years following the purchase of Aldgate Tower by China Life and Brookfield, reinforcing the location as a major Central London sub-market with international appeal.

Character buildings located within the Tech Belt, such as Ibex House, have experienced particularly strong demand from occupiers.

39

MARKET COMMENTARY

38

PLANNING

The property is located in the City of London. It is Grade II Listed and lies within the Queen’s Walk Protected Vista designed to guard views of the Tower of London World Heritage Site.

CAPITAL ALLOWANCES

Information regarding capital allowances is available on request.

VAT

The property is not elected for VAT purposes.

PROPOSAL

Offers are sought in excess of £120,000,000 for the Freehold interest in Ibex House, subject to contract, reflecting a net initial yield of 5.02% and a capital value of £647 per sq ft, assuming full purchaser’s costs of 6.79%.

The property is held in a Limited Company based in Jersey, the shares of which may be available.

DATA ROOM

Further information can be found on the online data room. Please contact the vendor’s agents to request access.

CONTACTS

For further information, access to the data room or to arrange a viewing please contact:

JONATHAN RUBACK

020 7588 4433

jonathan.ruback@allsop.co.uk

JAMES ABRAHAMS

020 7588 4433

james.abrahams@allsop.co.uk

MATTHEW MILLMAN

020 7588 4433

matthew.millman@allsop.co.uk

MARSHA RABINOVICH

020 7588 4433

marsha.rabinovich@allsop.co.uk

Allsop LLP on its 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. June 2018.

Designed and produced by Cre8te - 020 3468 5760 – cre8te.london

FURTHER INFORMATION

4140

FURTHER INFORMATION