6–14UNDERWOOD

STREETLONDON N1

P R I M E T E C H C I T Y R E F U R B I S H M E N T O P P O R T U N I T Y

THE TOWER CLUSTER

CITY OF LONDON

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Old Street Roundabout

CLERKENWELL

FARRINGDON

WEST END

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City Road

6–14 UNDERWOOD STREET

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EXECUTIVE SUMMARY

• P R I M E N O R T H E R N C I T Y F R I N G E L O C A T I O N I N T H E H E A R T O F T E C H C I T Y

• A T T R A C T I V E P E R I O D S T Y L E W A R E H O U S E B U I L D I N G

• U N I Q U E R E F U R B I S H M E N T O P P O R T U N I T Y I N L O N D O N ’ S F A S T E S T G R O W I N G S U B - M A R K E T

• E X C E P T I O N A L C O N N E C T I V I T Y W I T H O L D S T R E E T S T A T I O N W I T H I N A 5 M I N U T E W A L K

• T H E P R O P E R T Y C U R R E N T L Y C O M P R I S E S A P P R O X I M A T E L Y 2 9 , 3 9 6 S Q F T ( 2 , 7 3 1 . 0 S Q M ) I P M S 3 A R R A N G E D O V E R L O W E R G R O U N D , G R O U N D A N D T H R E E U P P E R F L O O R S

• V A C A N T P O S S E S S I O N

• L O N G L E A S E H O L D E X P I R I N G O N 2 5 D E C E M B E R 2 0 5 5

• O F F E R S A R E I N V I T E D I N E X C E S S O F £ 9 , 5 0 0 , 0 0 0 F O R T H E L O N G L E A S E H O L D I N T E R E S T , S U B J E C T T O C O N T R A C T A N D E X C L U S I V E O F V A T

• A T T R A C T I V E L O W C A P I T A L V A L U E O F £ 3 2 3 P E R S Q F T ( I P M S 3 )

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L OCATION

S I T U A T E D I N T H E H E A R T O F T E C H C I T Y A N D I N C L O S E P R O X I M I T Y T O O L D S T R E E T R O U N D A B O U T

The property is located on the east side of Underwood Street which leads onto Shepherdess Walk to the west and Nile Street to the south. 6-14 Underwood Street is positioned at the heart of Europe’s digital capital in the Tech City area of London and is less than 650 metres from Old Street Roundabout, known as ‘Silicon Roundabout’ due to the increasing number of technology, media and telecommunications (TMT) companies choosing to relocate to the area.

Old Street Roundabout itself is due to undergo a £25 million investment programme to transform the area into a thriving destination in the middle of Tech City.

T E C H C I T YIn recent years the Northern City Fringe has seen a wide range of changes in both social and economic terms, which has been reflected in the local property market. The epicentre of the UK’s technology industry is London’s Tech City, located within the Northern City Fringe market, which has been the focus of a much publicised Government drive to attract investment and provide an environment in which the fledgling digital, creative and high technology sectors can thrive, in hope of establishing the location as a world-class technology powerhouse comparable with Silicon Valley in the US.

As a result of this growth, Tech City and Silicon Roundabout have established themselves as the pre-eminent location for tech occupiers within the London market and as one of the City’s strongest sub markets. The areas notoriety and reputation as a tech hub has resulted in its own individual character, with young creative brands working alongside traditional corporate occupiers. There are now more than 250,000 employees among 1,500 companies either located or due to locate to the area. Major tenants include Amazon, Google, Facebook, Sillicon Valley Bank, Soundcloud, Yammer, Airbnb and Uber.

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TRANSPORT

The property benefits from excellent transport links, being well served by a number of London Underground, rail and bus services.

Old Street >>> 640 metres

• Northern Line / National Rail Services to Kings Cross and the North of London

Hoxton >>> 960 metres

• London Overground

Angel >>> 1,200 metres

• Northern Line

Barbican >>> 1,400 metres

• Circle, Hammersmith & City and Metropolitan Lines

Moorgate >>> 1,400 metres

• Circle, Hammersmith & City, Metropolitan and Northern Lines

• National Rail Services to Kings Cross and the North of London

• Crossrail from 2018

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Computer generated image of proposed Transport for London Old Street station upgrade works

LOCAL DEVELOPMENTS

The Tech City area has seen a boom in development activity in recent years and a number of landmark office schemes have begun to appear on the skyline of the Northern City Fringe. This trend has, for the large part, come as a result of the changing demand from occupiers within the TMT sectors, for whom it is necessary to be located close to other firms within their sector, and also benefit from the location’s proximity to both the City core – London’s financial hub, and to the traditionally more creative and fashionable areas of North East London.

In residential terms the area has seen interest from developers hoping to benefit from the ever increasing popularity of North East London, with areas such as Shoreditch and Dalston having seen a meteoric rise in popularity with young professionals in recent years. Subsequently, the area has become a focal point for mixed-use development in London, and is likely to continue to establish itself over the next decade.

A summary of completed, current and proposed developments is set out below:

1 C Space, 37-45 City Road, EC1

• Developed by Helical Bar

• Extensive refurbishment to provide 62,000 sq ft of modern work space

• Completed in June 2015 with a 46,000 sq ft pre-let to DLKW Lowe

2 Angel Square, EC1

• Developed by Derwent London

• The scheme will provide 25,000 sq ft of commercial space alongside residential accommodation

• Completed in Q1 2016

3 The Bower, EC1

• Developed by Helical Bar

• The scheme comprises three phases and will provide approximately 320,000 sq ft of office and retail accommodation

• Due to complete in Q2 2016

4 White Collar Factory, EC1

• Developed by Derwent London

• The scheme will provide a 16-storey 237,000 sq ft office tower and 5 low rise campus buildings offering 39,200 sq ft of flexible workspace

• 55% pre-let and due to complete in 2016 Q3 2016

5 Principal Place, EC2

• Developed by Brookfield

• Mixed use scheme comprising a 50-storey luxury residential tower, 600,000 sq ft of office accommodation and 20,000 sq ft of retail space

• Commercial element to complete in 2016 with 430,000 sq ft pre-let to Amazon

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6 Royal Mail House, 148 Old Street, EC1

• Development by Great Ropemaker Partnership (50:50 JV between GPE and the BP Pension Fund)

• Planning permission obtained for a major refurbishment and extension to provide approximately 151,700 sq ft of office space

• Completion is targeted for early 2017

7 Provost & East, N1

• Developed by Rocket Investments

• The scheme includes an 83,000 sq ft office and retail building

• Due to complete in 2017

8 The Stage, Plough Yard Scheme, EC2

• Developed by Cain Hoy, MG Properties and Galliard Homes

• A 2.5 acre mixed use scheme providing 412 residential units and office buildings totalling 170,000 sq ft

• Due to complete in 2019

9 250 City Road, EC1

• Development by Berkeley Homes

• A residential led mixed use scheme providing 995 residential units plus 75,000 sq ft of office space and 40,000 sq ft of retail space, a 190 room hotel and 23,000 sq ft of data centre

• The scheme will be delivered in stages with completions due between Q4 2017 and Q3 2020

10 The Goodsyard, E1

• Development by Hammerson and Ballymore Group

• Planning application submitted for a 4.7 hectare site to provide 1,356 residential units and 65,000 sq ft of office, retail and leisure facilities in 12 new buildings and 1.8 hectares of public open space

11 Blossom Street, E1

• Development by British Land

• Planning permission granted for 3 sites covering 2 acres with potential for around 355,000 sq ft of office, retail and residential accommodation

12 The Eagle, City Road, EC1

• Developed by Mount Anvil

• The scheme comprises a 36 floor residential led scheme with 37,000 sq ft of offices

• Completed in December 2015

13 Canaletto, 257 City Road, EC1

• Developed by Groveworld

• 31 storey residential building including 84,000 sq ft of office accommodation and private club on the 24th floor

• Due to complete in Q4 2016

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DESCRIPTION

A N A T T R A C T I V E V I C T O R I A N W A R E H O U S E B U I L D I N G T H A T P R O V I D E S A U N I Q U E O P P O R T U N I T Y T O U N D E R T A K E A F U L L R E F U R B I S H M E N T T O P R O V I D E M O D E R N I N D U S T R I A L O F F I C E S P A C E .

6-14 Underwood Street comprises three attractive Victorian warehouse buildings that have been linked internally to provide 29,396 sq ft (2,731.0 sq m) IPMS 3 of office accommodation. The property is arranged over basement, ground and three upper floors.

The 1st – 3rd floor levels consist of bright open plan office space with excellent natural light. The main reception area is at ground floor level with the majority of the basement space used as ancillary storage space with the addition of a small gym with adjoining changing rooms.

Internally the property has a basic specification which provides the perfect opportunity to undertake a full refurbishment.

V A L U E A D D / A S S E T M A N A G E M E N T O P P O R T U N I T I E S• Purchase freehold

• Full refurbishment

• Alternative retail uses at ground floor (subject to obtaining necessary consents)

• Potential vertical extension (subject to obtaining planning permission)

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ACCOMMODATION

The property has been independently measured by Marshall Survey Associates in accordance with the new International Property Measuring Standard IPMS 3. The property has also been measured in accordance with the RICS Code of Measuring Practice 6th Edition and these areas can be provided upon request.

Floor Use Sq m Sq ft

3rd Offices 564.2 6,073.10

2nd Offices 514.5 5,538.00

1st Offices 515.8 5,552.00

Ground Offices 579.7 6,239.80

Lower Ground Offices 556.8 5,993.30

Total 2,731.0 29,396.20

T H I R D F L O O R

G R O U N D F L O O R

FemaleToilet

LiftLift

Lift

MaleToilet

Lift

Toilet

Toilet

Reception

Toilet

Lift

Lift

12 Floor plans not to scale, indicative only

Idol Lane

TENURE

The property is held Long Leasehold under title number NGL175211.

The approximate extent of the Long Leasehold ownership is shown outline red on the OS extract plan opposite.

TENANCY

The property will be sold with vacant possession.

PLANNING

6-14 Underwood Street is located in the London Borough of Hackney. The property is not listed but lies within the Underwood Conservation Area.

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6

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3

2820

24-38

Cairo Studios

Offices

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8

14

16

45

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22

40

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Shored itch

8 Paulton House

Police Station

Underwood Row

Underwood Street

Underwood Street

Shepherdess Walk

Nile Street

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30

119

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49-96 Catherwood C

ourt

32

117

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House

Underwood Street

Britannia Walk

Britannia Walk

Shepherdess Place

Offices

Offices

College Of Further Education

Offices

6-14

16-24

21192

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Westland Plac

Taewr igh t

Tagwright House

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26

47

515250 49 48

25-36 Alford Court

55 54 53

60

Murray Grove

Murray Grove

113-136 Catherw

ood Cour t

97-112 Catherwood Court

Area : 0.086 ha (0.212 acres)

Not to scale, indicative only

The plan is based upon an Ordnance Survey with sanction of the controller of H.M. Stationary Office. Crown Copyright reserved.

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NORTHERN CITY FRINGE MARKET COMMENTARY

• Take-up totalled 282,135 sq ft in Q1 of 2016, approximately 15% above the final quarter in 2015

• Total take-up for 2015 totalled 1,133,464 sq ft, 18% above the long term annual average

• Supply in the City Northern Fringe Market remains at a historic low, with a vacancy rate of 4.4%

• The prime headline rent for the Northern City Fringe is £65.00 per sq ft. However tightening supply and continued healthy demand will continue to drive rents, with growth of 10% and 4.9% expected during 2016 and 2017 respectively

• City investment turnover totalled £1.2b in Q1 2016, with current availability at £3b

• Q1 2016 prime yields for the city remained at 4.0% for the fifth consecutive quarter

N O R T H E R N C I T Y F R I N G E P R I M E R E N T A L G R O W T H F O R E C A S T

K E Y N O R T H E R N C I T Y F R I N G E I N V E S T M E N T T R A N S A C T I O N S

Address TenureWeighted Average

Unexpired Lease Term (Years)

Price (Millions)

Cap Val (Psf)

Date

17-18 Haywards Place, EC1 FH 0.9 £10.0 £994 Apr 2016

43/44 Hoxton Square, N1 FH 1.0 £8.5 £1,677 Jan 2016

45 Clerkenwell Green, EC1 FH 1.5 £11 £1,021 Sep 2015

20-25 Glasshouse Yard, EC1 FH 0.2 £5.475 £803 Oct 2015

10-11 Clerkenwell Green, EC1 FH 1.6 £7.975 £753 Sep 2015

28-30 Hoxton Square, N1 FH 0.9 £16 £1,214 Jun 2015

I N S U R A N C E The tenant is to insure in joint names for the sum representing the current value of the cost of rebuilt and associated costs.

R E P A I RThe tenant is to maintain and keep premises in good and substantial repair order and to pay and contribute a fair proportion of the expense of making repairing and securing all party and other walls, gutters, sewers and drains belonging to the demised premises in common with any adjacent premises.

U S E Not without the previous consent in writing to use the premises or any part other than a factory / and or office premises.

A L I E N A T I O N The tenant can assign or underlet the property.

A L T E R A T I O N S No alterations, additions or erections without previous written consent.

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HEADLEASE SUMMARY

L A N D L O R D The Governors of the Bishopsgate Foundation of Bishopsgate Institute.

P R E M I S E S All that leasehold property known as 6-14 Underwood Street, London N1 as is registered at H M Land Registry with title absolute under Title Number NGL175211.

T E R M 85 year lease with an expiry date of 25 December 2055 (Approximately 39.5 years unexpired).

R E N T £111,250 per annum

R E N T R E V I E W Every 14th anniversary of the date of commencement of the said term, the next being 24th June 2026, reviewed to one quarter of the open market rental value.

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C O N T A C TFor further information or to arrange an inspection of the property, which must be undertaken strictly by appointment only, please do not hesitate to contact:

Andrew Tyler

T +44 (0) 20 7861 1319M +44 (0) 78 7614 5904E andrew.tyler@knightfrank.com

Mark Lock

T +44 (0) 20 7861 5126M +44 (0) 74 6791 5361E mark.lock@knightfrank.com

Daniel Dixon

T +44 (0) 20 7861 5036M +44 (0) 74 6966 7109E daniel.dixon@knightfrank.com

Important notice1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice. May 2016

E P CThe Energy Performance Rating for 6-14 Underwood Street is E103 (Certificate Reference Number: 9269-3032-0257-0390-9791). Further information is available on request.

V A TWe understand that the property has been elected for Value Added Tax (VAT), therefore VAT will be payable on the purchase price.

P R O P O S A LWe are instructed to seek offers in excess of £9,500,000 subject to contract and exclusive of VAT for the leasehold interest. An acquisition at this level would reflect a capital value of £323 per sq ft (IPMS 3).

FURTHER INFORMATION