8 fenchurch place - allsop
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The Amundi Collection
8 F E N C H U R C H
P L A C E L O N D O N E C 3
8 Fenchurch Place is located in a prime EC3 City of London location, in the heart of the world’s largest insurance district.
Comprehensively refurbished in 2012.
98,647 sq ft of highly specified office and ancillary accommodation arranged over lower ground, ground, mezzanines and five upper floors.
Fully let on effective full repairing and insuring terms to a diverse mix of five tenants from the insurance, professional services and charitable sectors.
Secure income with a WAULT of just under 9 years to lease expiries and 7 years to tenant break options.
Current passing rent of £4,399,900 per annum, equating to an attractive low rent of only £44.60 per sq ft overall, compared to prime City rents which are currently
in excess of £65.00 per sq ft.
Reversionary income profile with five upcoming rent reviews occurring in 2019 and 2020.
Held on a long leasehold interest from Network Rail Infrastructure Limited (originally British Railways Board) for a remaining term of circa 169 years at a peppercorn rent.
Potential asset management opportunities in the short to medium term to add value and enhance the running yield.
Offers are invited in excess of £78,600,000, subject to contract and exclusive of VAT, for our client’s Long Leasehold interest in 8 Fenchurch Place. This represents an attractive net initial yield of 5.50% and a capital value of £797 per sq ft, assuming acquisition costs of 1.80%
through the purchase of the Luxembourg SARL.
INVESTMENT SUMMARY
8 Fenchurch Place – London
2 | 38 Fenchurch Place – London
LOCATION
Although in the heart of the insurance district, 8 Fenchurch Place is also in a prominent location for occupiers from a variety of sectors, with several major transport hubs being situated in the vicinity.
The immediate location has also been enhanced through the provision of a growing and diverse range of retail, leisure and hotel amenities. This includes the historic Leadenhall Market with a unique boutique retail offering, iconic London landmarks such as the Tower of London and Tower Bridge and a range of high end hotels such as the Four Seasons Hotel, Grange City Hotel and the Hilton Hotel Tower of London.
The building itself is located directly above Fenchurch Street station and fronts a landscaped square which hosts a bustling street food market. 70 Mark Lane, occupied by Zurich Insurance and Miller Insurance, and AIG’s owner occupied headquarters at 58 Fenchurch Street, also border the square.
8 Fenchurch Place is situated in London’s premier business district in the heart of the City of London and in a core EC3 location being only a 3 minute walk from Lloyd’s, the world’s leading insurance market.
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8 Fenchurch Place – London
Lombard Street Fenchurch Street
Aldgate High Street
Bevis Marks
Houndsditch
Throgmorton Street
Old
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treet
King William
Street
Moo
rgat
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Gresham StreetLothbury
Queen Victoria Street
Poultry
Wal
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Threadneedle Street
CornhillLeadenhall Street
Lim
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Mar
k La
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Great Tower Street
Eastcheap
Mansell Street
Minories
Upper Thames Street
Lower Thames StreetByward Street
Tower Hill
Gra
cech
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Stre
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Cannon Street
Crutched Friars
Lond
on B
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CannonStreet
Tower Hill
TowerGateway
LiverpoolStreet
LLOYD’SBUILDING
LondonBridge
Monument
Aldgate
Bank
FenchurchStreet
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The connectivity of 8 Fenchurch Place will be further enhanced when Crossrail (The Elizabeth Line) becomes operational in late 2018. This east-west rail link will span across Central London, significantly reducing journey times from Reading and Heathrow in the west to Abbey Wood and Shenfield in the east. The Crossrail station at Liverpool Street will provide the City with direct access to Heathrow within 35 minutes, the West End within seven minutes and Canary Wharf within six minutes.
8 Fenchurch Place has unrivalled connectivity being situated above Fenchurch Street station and within a short walk of multiple underground and national rail stations.
CONNECTIVITY
8 Fenchurch Place – London
STATION WALKING DISTANCE
CONNECTIVITY
FENCHURCH STREET 1 min National Rail Services
TOWER HILL 3 mins District Line
Circle Line
MONUMENT 5 mins District Line
Circle Line
TOWER GATEWAY 5 mins DLR
ALDGATE 6 mins District Line
Circle Line
BANK 8 mins Central Line
Northern Line
Waterloo & City Line
DLR
LIVERPOOL STREET 9 mins Central Line
Hammersmith & City Line
Circle Line
Metropolitan Line
National Rail Services
Elizabeth Line
London Overground / TfL Rail
CANNON STREET 10 mins District Line
Circle Line
National Rail Services
LONDON BRIDGE 15 mins Northern Line
Jubilee Line
National Rail Services
PADDINGTON
SHENFIELDSTRATFORD
WHITECHAPELFARRINGDONBONDSTREET
ACTONMAIN LINE
WESTEALING
TOTTENHAMCOURT ROAD
LIVERPOOLSTREET
EALINGBROADWAY
HANWELL
SOUTHALL
CANARYWHARF
MAIDENHEAD
READING
CUSTOMHOUSE
ABBEYWOOD
WOOLWICH
LONDON CITY AIRPORT
HEATHROW33 MINS
7 MINS
10 MINS4 MINS
8 MINS
10 MINS
2 MINS
CGI of proposed Liverpool Street Crossrail station
8 F E N C H U R C H
P L A C E L O N D O N E C 3
8 | 98 Fenchurch Place – London
In the surrounding area there are an abundance of renowned global insurance, professional and financial companies who are attracted to the area through the quality of the office accommodation, extensive local amenities and unrivalled transport connections.
LOCAL OCCUPIERS
I N S U R A N C E
1 Lloyd’s Register
2 Lancashire Holdings, Tokio Marine Kiln, Markel International, Ascot Underwriting, Allied World Assurance, RSA Insurance Group, Liberty Specialty Markets
3 Cunningham Lindsey
4 AIG
5 M&G
6 Gen Re
7 Marsh Inc
8 Chaucer Insurance, Munich Re, QBE Insurance, Aspen Re
9 Axis Insurance, Beazley Group
10 Howden Group
11 Allianz SE
12 AEGIS, Barbican Insurance Group
13 RFIB and XL Catlin
14 XL Catlin and Vitality Health
15 RKH Specialty
16 Willis Towers Watson
17 Aon, Amlin, Brit Insurance
18 Aviva
19 Mitsui Sumitomo Insurance
20 Asta
21 Swiss Re
22 Arthur J Gallagher & Co
23 Lockton, JLT Group
24 Tysers
25 Towergate Insurance
26 Hiscox
27 W.R. Berkley
28 AXA
29 Groupama Insurance Ltd, Chubb, BMS Group
30 Besso Insurance Group Ltd
31 Zurich Insurance, Miller Insurance
32 Hyperion, Enstar, Travelers
F I N A N C I A L
1 Sucden Financial
2 Standard Life, ION Trading
3 Westpac Banking Corporation
4 CMC Markets
5 Tradition, FSCS
6 LCH.Clearnet, Thomson Reuters
7 Société Générale
8 ICBC
9 Deutsche Bank
10 Tower Research
P R O F E S S I O N A L
1 DAC Beachcroft
2 Accenture
3 Kennedys
4 McDermott Will & Emery
5 Clyde & Co
6 Holman Fenwick Willan
7 Hunton & Williams LLP, Kirkland & Ellis LLP
8 Latham & Watkins LLP
9 White & Case LLP
10 Charles Taylor
Lombard Street Fenchurch Street
Aldgate High Street
Bevis Marks
Houndsditch
Throgmorton Street
Old
Bro
ad S
treet
King William
Street
Moo
rgat
e
Gresham StreetLothbury
Queen Victoria Street
Poultry
Wal
broo
k
Threadneedle Street
CornhillLeadenhall Street
Lim
e St
reet
Mar
k La
ne
Great Tower Street
Eastcheap
Mansell Street
Minories
Upper Thames Street
Lower Thames StreetByward Street
Tower Hill
Gra
cech
urch
Stre
et
Cannon Street
Crutched Friars
Lond
on B
ridge
CannonStreet
Tower Hill
TowerGateway
LiverpoolStreet
LLOYD’SBUILDING
LondonBridge
Monument
Aldgate
Bank
FenchurchStreet
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8 F E N C H U R C H
P L A C E L O N D O N E C 3
In the immediate vicinity of 8 Fenchurch Place, there has been a substantial amount of development activity, which further underlines the significance of the location within EC3. The completion of these developments will further enhance this area as one of the premier business districts within London.
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C O M P L E T E D D E V E L O P M E N T S
1 20 FENCHURCH STREET
Developer: Landsec /Canary Wharf GroupSize: 713,000 sq ftCompletion Date: 2014Major Tenants: Tokio Marine, RSA and Markel
2 THE LEADENHALL BUILDING
Developer: British Land /Oxford PropertiesSize: 607,224 sq ftCompletion Date: 2014Major Tenants: Aon, Amlin and Brit.
3 THE LLOYD’S BUILDING
Developer: Lloyd’sSize: 350,000 sq ftCompletion Date: 1986Major Tenants: Lloyd’s.
4 30 ST MARY AXE
Developer: Swiss ReSize: 520,000 sq ftCompletion Date: 2004Major Tenants: Swiss Re and Kirkland & Ellis.
5 TEN TRINITY SQUARE
Developer: ReignwoodSize: 461,372 sq ftCompletion Date: 2017Major Tenants: Four Seasonshotel, spa and restaurants as well as 41 private residences.
6 CREECHURCH PLACE
Developer: Helical Bar / HOOPPSize: 271,569 sq ftCompletion Date: 2016Major Tenants: Hyperion, Enstar, Travelers and Dell.
7 PLANTATION PLACE
Developer: British LandSize: 525,000 sq ftCompletion Date: 2004Major Tenants: Accenture, QBE and Aspen.
8 THE WILLIS BUILDING
Developer: British LandSize: 490,000 sq ftCompletion Date: 2007Major Tenants: Willis Towers Watson.
9 THE MINSTER BUILDING
Developer: IvanhoeCambridge / GreycoatSize: 287,849 sq ftCompletion Date: 2017Major Tenants: Charles Taylor, Spaces, Make It Cheaper and Tower Research.
10 ONE FENCHURCH COURT
Developer: Generali Real Estate /Core / GreycoatSize: 389,000 sq ftCompletion Date: Q1 2018Major Tenants: M&G.
11 70 MARK LANE
Developer: Mitsui Fudosan / StanhopeSize: 181,223 sq ft Completion Date: 2014Major Tenants: Zurich Insurance, Miller Insurance.
P O T E N T I A L
20 40 LEADENHALL STREET
Developer: TH Real EstateSize: 905,000 sq ftCurrent Position: Planningpermission granted.
21 1 UNDERSHAFT
Developer: Aroland HoldingsSize: 957,500 sq ftCurrent Position: Planningpermission granted.
22 51 EASTCHEAP
Developer: WeWorkSize: 91,000 sq ftCurrent Position: Weworkhave purchased the site fortheir own occupation.
23 130 FENCHURCH STREET
Developer: Aviva and PSPSize: 320,000 sq ftCurrent Position: Planningpermission granted.
LOCAL DEVELOPMENT ACTIVITY
U N D E R C O N S T R U C T I O N
12 THE SCALPEL
Developer: WRBC Development (W.R.Berkley)Size: 386,300 sq ftCurrent Position: Under construction, estimatedcompletion in Q2 2018Letting Position: W.R. Berkley will occupy part of the building on completion.
13 100 BISHOPSGATE
Developer: BrookfieldSize: 948,000 sq ftCompletion Date: Due forcompletion in Q2 2019Letting Position: 90% pre-let to tenants Royal Bank of Canada, Freshfields and Jefferies.
14 22 BISHOPSGATE
Developer: AXA led consortiumSize: 1,367,817 sq ftCompletion Date: Under constructionwith estimated completion in Q4 2019Letting Position: Available.
15 70 ST MARY AXE
Developer: TH Real EstateSize: 340,600 sq ftCompletion Date: Under constructionwith estimated completion in Q4 2018Letting Position: 30% pre-let to Sidley Austin.
16 WALSINGHAM HOUSE,
35 SEETHING LANE
Developer: London OrientalSize: 80,000 sq ftCompletion Date: Q3 2018Letting Position: Available.
17 ONE LEADENHALL
Developer: BrookfieldSize: 403,000 sq ftCompletion Date: 2022+Letting Position: Available.
18 6–8 BISHOPSGATE, 150
LEADENHALL STREET
Developer: Stanhope / MitsubishiSize: 560,000 sq ftCompletion Date: 2023+Letting Position: Available.
19 80 FENCHURCH STREET
Developer: Partners Groupand ExemplarSize: 247,000 sq ftCompletion Date: 2020+Letting Position: Available.
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8 Fenchurch Place – London
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8 F E N C H U R C H
P L A C E L O N D O N E C 3
The principal office entrance is from Fenchurch Place which leads into an impressive triple height reception and the main core of the building with three passenger lifts serving all floors. A second reception is accessible from Crutched Friars on the southern elevation, which provides access to a further two passenger lifts which also serve all floors. The ground floor reception areas comprise 1,866 sq ft in total.
The building was originally constructed in 1986 and is of steel frame construction on an acoustic raft. The refurbishment works in 2012 were undertaken by PMB Holdings and Ares Management and designed by ORMS Designers & Architects. The 2012 refurbishment included extensive works to the air conditioning system, a comprehensively remodelled reception area including a prominent white limestone facade around the Fenchurch Place entrance, and the renewal of all internal office finishes including new metal tile suspended ceilings, fully accessible raised floors and new lighting fittings throughout.
DESCRIPTION
8 Fenchurch Place was comprehensively refurbished in 2012 providing a high quality office building in the heart of the City of London. The building provides 98,647 sq ft of Grade A office and ancillary accommodation arranged over lower ground, ground, three floors of mezzanine and five upper floors with flexible floorplates ranging between 11,556 sq ft and 23,707 sq ft and excellent levels of natural light.
8 Fenchurch Place – London 12 | 13
PR
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• Two impressive ground floor office reception areas, comprising 1,866 sq ft in total
• Ceiling mounted 4 pipe fan coil air conditioning system
• Ceilings are finished with white accessible perforated ceiling tiles comprising 1,200mm x 300mm planks with fully integrated lighting and an exposed grid system
• Fully accessible medium duty 600m x 600m tile raised floor system
• 3 x 13-person passenger lifts which serve the Fenchurch Place reception
• 2 x 13-person passenger lifts which serve the Crutched Friars reception
• Typical slab to slab ceiling heights of 3.70 metres with 3.85 metres on the first floor
• Typical floor to ceiling height of 2.70 metres
• 13 showers, of which 7 have recently been completed and include integrated changing cubicles
• 42 bicycle spaces
• 8 car parking spaces
8 Fenchurch Place benefits from a Grade A specification which includes the following:
SPECIFICATION
8 Fenchurch Place – London
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The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following net internal floors areas:
ACCOMMODATION
FLOOR USE NIA NIA
(SQ FT) (SQ M)
Level 5 Office 11,556 1,073.6
Level 4 Office 15,043 1,397.5
Level 3 Office 18,718 1,739.0
Level 2 Office 21,865 2,031.3
Level 1 Office 23,707 2,202.4
Mezzanine 3 Office 1,068 99.2
Mezzanine 2 Office 1,130 105.0
Mezzanine 1 Office 1,060 98.5
SUB TOTAL 94,147 8,743.0
8 Fenchurch Place Reception 1,083 100.6
Crutched Friars Reception 783 72.7
Building Management Offices 1,502 139.5
Tenant Storage 1,132 105.2
SUB TOTAL – ANCILLARY 4,500 418.0
TOTAL 98,647 9,161.0
8 Fenchurch Place – London
The property has also been measured in accordance with IPMS. A copy of the report is held on the data room.
K E Y
OFFICES
CORE
K E Y
OFFICES
CORE
F I R S T F L O O R 23,707 sq ft
T H I R D F L O O R 18,718 sq ft
FLOOR PLANS
FEN
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PLA
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FEN
CH
UR
CH
PLA
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FEN
CH
UR
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PLA
CE
FEN
CH
UR
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PLA
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S E C O N D F L O O R 21,865 sq ft
F O U RT H F L O O R 15,043 sq ft
CRUTCHED FRIARS
CRUTCHED FRIARS
CRUTCHED FRIARS
CRUTCHED FRIARS
Floor plans are not to scale and are for indicative purposes only. Additional floor plans available upon request.
Floor plans are not to scale and are for indicative purposes only. Additional floor plans available upon request.
18 | 198 Fenchurch Place – London
K E Y
OFFICES
CORE
RECEPTION
STORAGE
STATION CONCOURSE
BUILDING MANAGEMENT OFFICES
BICYCLE SPACES
F I F T H F L O O R 11,556 sq ft
G RO U N D F L O O R
FLOOR PLANS
FEN
CH
UR
CH
PLA
CE
06
08 07
05
04
03
02
01
PARKING
CRUTCHED FRIARSRECEPTION
CHILLER ROOM
SHOWERS
ELECTRICALINTAKE SWITCHROOM
MECHANICALSERVICES/BOILER ROOM
GA
S METER
ROO
M
GEN. FUELSTORE
FRENCHORDINARYCOURT
COLD WATERSTORAGE/SPRINKLERTANK ROOM
FEN
CH
UR
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PLA
CE
FEN
CH
UR
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PLA
CE
L O W E R G RO U N D F L O O R CRUTCHED FRIARS
CRUTCHED FRIARS
STATIONENTRANCE
STATION CONCOURSE
FENCHURCH PLACE RECEPTION
MEZZANINE 2
MEZZANINE 1
Floor plans are not to scale and are for indicative purposes only. Additional floor plans available upon request.
Floor plans are not to scale and are for indicative purposes only. Additional floor plans available upon request.
20 | 218 Fenchurch Place – London
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TENURE
8 Fenchurch Place is held on a long leasehold interest from Network Rail Infrastructure Limited (originally British Railways Board) for a term of 200 years from 24 June 1987 expiring on 23 June 2187, providing an unexpired term of approximately 169 years. The headlease is subject to an annual rent of a peppercorn.
A summary of the headlease can be found in this brochure and in the data room.
8 Fenchurch Place – London
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The Navy Office
The House of Crutched Friars
London Tavern(site of)
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(site of)
Ward Bdy
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13.0m
14.2m
LBs
Savage
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P E P Y S S TR E E T
HAR T S TR E E T
St K
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C R UTC HE D F R IAR S
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St Olave's
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Hotel
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Hotel
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Lloyd's Registry
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St Katherine s
Marlow
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WalsinghamHouse
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SutherlandHouse
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New London House
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CAR L IS L E
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AL LE Y
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L LOYD
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Friary Court
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Row
0m 10m 20m 30m
Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250
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.
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TENANCY S E C U R E A N D D I V E R S E I N C O M E P RO F I L E
T E N A N C Y S C H E D U L ERENT
TENANT FLOOR USE AREA (SQ FT) LEASE START BREAK LEASE EXPIRY REVIEW £ PER ANNUM £ PER SQ FT COMMENTS
Gemserve Ltd 5 Office 11,556
24/05/2014 23/05/2024 24/05/2019£543,132 £47.00 Outside of the 1954 Act
Lease provides for a total rent of £569,381.50 per annum.5
Mezzanine 3 Office 1,068 £26,249.50 £24.58
Resolute Management Ltd
4 Office 15,043
01/12/2015 01/12/2022 30/11/2025 01/12/2020
£767,193 £51.00 Outside of the 1954 Act Lease provides for a total rent of £770,193 per annum.
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6 months’ additional rent free if break is not exercised. The tenant is required to give a minimum of 6 months’ notice to exercise the break. Lease Guaranteed by NGR Victory Reinsurance Limited.
Car Parking Space Car Parking £3,000
Pembroke Managing Agency Ltd 3 Office 18,718
29/09/2015 28/09/202730/09/2020 30/09/2025
£889,105 £47.50 Outside of the 1954 Act Lease provides for a total rent of £892,605 per annum.
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Lease Guaranteed by Ironshore Inc.Car Parking Space Car Parking £3,500
Alzheimer’s Society
2 Office 21,86501/12/2015 30/11/2025 01/12/2020
£1,038,588 £47.50Lease provides for a total rent of £1,044,588 per annum.
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Lower Ground Storage 893 £6,000 £6.72
Mezzanine 1 Office 1,060 01/12/2015 30/11/2025 01/12/2020 £50,350 £47.50
etc.venues Ltd 1 Office 23,707
12/08/2015 11/08/2025 11/08/203012/08/2020
3, 4
12/08/2025
£1,007,632.50 £42.50 Lease provides for a total rent of £1,048,197.50 per annum.5
6 months’ additional rent free if break is not exercised. The Tenant is required to give a minimum of 6 months’ notice to exercise the break.Mezzanine 2
1 Office 1,130 £40,565 £35.90
8 Fenchurch Place Reception2
1,083
Crutched Friars Reception 783
Building management offices 1,502
Vacant Lower Ground Floor Storage 239 £3,585 £15.00 18 month rental top up.
Vacant 6 Car Spaces Car Park - £21,000 18 month rental top up at £3,500 per space per annum.
TOTAL 98,647 £4,399,900 £44.60
1 etc.venues Ltd has sublet Mezzanine 2 to Resolute Management until 30 November 2018 at a rent of £47,700 per annum.2 Executive Channel Europe Limited enjoys advertising rights on digital screens at the Building, for which a licence fee is reserved.3 Cap and collar at first rent review for the 1st floor of £46.50 per sq ft and £43.50 per sq ft. 4 Cap and collar at first rent review for Mezzanine 2 of £36.00 per sq ft and £38.00 per sq ft.5 Split rents for separate office, ancillary and car parking areas have been estimated where only a total rent is provided in the lease.
K E Y
Gemserve Ltd
Resolute Management Ltd
Pembroke Managing Agency Ltd
Alzheimer’s Society
etc.venues Ltd
Vacant
8 Fenchurch Place – London
8 Fenchurch Place is multi-let on effective full repairing and insuring leases to five tenants from the insurance, professional and charitable sectors.
The total passing rent is £4,399,900 per annum which equates to an overall rent of £44.60 per sq ft, an attractive level compared to prime City headline rents which are currently in excess of £65.00 per sq ft.
The property provides secure income secured against a diverse tenant mix with a weighted average unexpired lease term (WAULT) of approximately 8.7 years to expiries and 7 years to tenant breaks.
A small storage unit at lower ground level and 6 car parking spaces are currently vacant. The vendor will provide a rental guarantee in respect of these elements.
23.8%
0.6%
24.9%
12.9%
17.5%
20.3%
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TENANT COVENANTS ASSET MANAGEMENT INITIATIVES
G E M S E RV L T D
12.9% OF TOTAL CONTRACTED RENTAL INCOME
Gemserv is a specialist market design, governance and assurance service provider in the energy sector.
The Dun & Bradstreet rating of Gemserv is 3A 1, based on a net worth of £7.4 million and a minimum risk of business failure.
A L Z H E I M E R ’ S S O C I E T Y
24.9% OF TOTAL CONTRACTED RENTAL INCOME
Alzheimer’s Society is a charitable organisation that supports those affected by Alzheimer’s disease and funds the research of it.
The Dun & Bradstreet rating of the Alzheimer’s Society is 5A 1, based on a net worth of £47.1 million and a minimum risk of business failure.
E T C . V E N U E S L T D
23.8% OF TOTAL CONTRACTED RENTAL INCOME
etc.venues Limited provides and operates conference, training, meeting, exhibition and event venues in London, Birmingham and Manchester. During 2017 the organisation hosted 770,000 delegates and recorded a sales turnover of £46.0 million, up 8% from 2016 levels.
The Dun & Bradstreet rating of etc.venues Limited is 5A 1, based on a net worth of £42.5 million and a minimum risk of business failure.
P E M B RO K E M A N A G I N G A G E N C Y L T D
20.3% OF TOTAL CONTRACTED RENTAL INCOME
Pembroke Managing Agency Limited is a Lloyd’s Managing Agent that underwrites specialty insurance products and operates in six distinct markets: Financial Institutions, Professional Liability, Marine, Global Property, Select Specialist Lines and Accident and Health.
The Dun & Bradstreet rating of Pembroke Managing Agency is 3A 1, based on a net worth of £8.6 million and a minimum risk of business failure.
A guarantee is in place from Ironshore Inc. Ironshore Inc. were acquired by Liberty Mutual Insurance in 2017. Liberty Mutual Insurance is ranked at 68th on the Fortune 500 list of largest corporations in the United States based on 2017 revenues.
R E S O L U T E M A N A G E M E N T L T D
17.5% OF TOTAL CONTRACTED RENTAL INCOME
Resolute Management Limited is a member of the Berkshire Hathaway Group and has responsibility for the run off of the non-life liabilities of names, or Underwriters, at Lloyd’s.
The Dun & Bradstreet rating of Resolute Management Limited is 2A 1, based on a net worth of £5.2 million and a minimum risk of business failure.
A guarantee is in place from NRG Victory Reinsurance Ltd. NRG Victory Reinsurance Ltd has a Dun & Bradstreet rating of 5A 1, based on a net worth of £192.3 million and a minimum risk of business failure.
8 Fenchurch Place provides secure income with a number of potential asset management initiatives including the following:
All tenants are rated by Dun & Bradstreet as having a minimum risk of business failure.
TENANT FLOOR PASSING RENT (£ PER SQ FT)
RENT REVIEW DATE
Gemserve Ltd 5 £47.00 24/05/2019
Resolute Management Ltd 4 £51.00 01/12/2020
Pembroke Managing Agency Ltd 3 £47.50 30/09/2020
Alzheimer’s Society 2 £47.50 01/12/2020
etc.venues Ltd 1 £42.50 12/08/2020
I M P ROV I N G R E N TA L L E V E L S T H RO U G H T H E F I V E U P C O M I N G R E N T R E V I E W S I N 2 0 1 9 A N D 2 0 2 0 .
There are rent reviews for every tenant between May 2019 and December 2020, therefore providing an opportunity to seek to increase the rents within the building. The passing rental levels range from £42.50 per sq ft to £51.00 per sq ft,
compared to prime City headline rental levels which are currently in excess of £65.00 per sq ft.
O P P O RT U N I T Y TO R E - G E A R A N D E X T E N D T H E L E A S E S A N D R E M OV E B R E A K O P T I O N S TO I M P ROV E T H E I N C O M E D U R AT I O N
Subject to negotiation in due course, there may be the potential to remove the break options within the leases to Resolute Management Ltd (break 1 December 2022) and etc.venues Ltd (break 11 August 2025) and regear other
leases in the building, increasing the duration of the income.
8 Fenchurch Place – London
P L A N N I N G
8 Fenchurch Place is within the jurisdiction of the City of London. The property is located within the Fenchurch Street station Conservation Area and the period frontage to Crutched Friars is Grade II listed.
VA T
The property is elected for VAT.
S U S TA I N A B I L I T Y
8 Fenchurch Place has an Energy Performance Certificate of C (63) and has been certified as BREEAM ‘Very Good’.
C A P I TA L A L L O W A N C E S
It is anticipated that capital allowances may be available to qualifying parties. Further details of these, if applicable, are available in the online data room.
D A TA RO O M
Access to an online data room containing further information is available on request.
ADDITONAL INFORMATION
8 Fenchurch Place – London 28 | 29
D A T E
18 May 1992 (as varied by a deed of variation dated 13 August 1998) and Supplemental Lease dated 8 December 2012
F R E E H O L D E R
Network Rail Infrastructure Limited (originally British Railways Board)
L O N G L E A S E H O L D E R
Fenchurch Place Propco SARL
T E R M
200 years from 24 June 1987 to 23 June 2187
P R E M I S E S
The building above Fenchurch Street station known as 8 Fenchurch Place, including Part Lower Ground, Part Ground Floor (reception), Part Concourse, Part Mezzanine, the concrete raft the building is constructed over and all areas above the concourse at 1st, 2nd, 3rd, 4th, 5th and 6th (plant room) floors and roof, but excluding in part the airspace above the current building envelope.
U S E R
Offices, car parking and other ancillary uses. A license dated 12 August 2015 provides consent to etc.venues Limited with a permitted change of use of the 1st floor to the hire of meeting and conference space, ancillary storage and catering of offices.
R E N T
A peppercorn rent is payable annually.
A L I E N A T I O N
Not to assign part of the premises.
Not to assign the whole of the premises without the prior written consent of the Landlord, not to be unreasonably withheld or delayed.
Not to underlet the whole or any part of the demised premises unless the underlease shall comply with the provisions of the terms of the underlease within the deed of variation.
R E PA I R
The tenant shall repair and keep in good and substantial repair the premises demised to the Landlord’s reasonable satisfaction.
The tenant shall not repair the underside of the concrete raft or deck without the Landlord’s prior approval
A L T E R A T I O N S
The tenant shall not make any structural alteration or addition to the concrete raft or deck or any structural part thereof, or the foundations columns, piers, girders and supports beneath the raft.
The tenant shall not make any alteration or addition which will or may create any restriction, impact adversely on the operation and safety of the station or create additional or more onerous rights over the station or railway.
I N S U R A N C E
The tenant is responsible for keeping the premises insured at their sole expense in the joint names of the landlord and the tenant.
HEADLEASE SUMMARY
8 Fenchurch Place – London
Important Notice
Cushman & Wakefield gives notice to anyone who may read these particulars as follows:
1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract.
2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact.
3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order.
4. The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it
should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs.
5. Any areas, measurements or distances referred to herein are approximate only.
6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning,
building regulations or other consents have been obtained and these matters must be verified by any intending purchaser.
7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact.
8. All photographs are for indicative purposes only.
June 2018
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PROPOSAL
Offers are invited in excess of £78,600,000, subject to contract and exclusive of VAT, for our client’s long leasehold interest in 8 Fenchurch Place.
This represents an attractive net initial yield of 5.50% and a capital value of £797 per sq ft, assuming acquisition costs of 1.80% through the purchase of the Luxembourg SARL.
8 Fenchurch Place is part of the Amundi Collection of eight UK properties located in London, Glasgow and Cardiff. These assets are available individually or as a portfolio.
Full details can be found at www.amundicollection.com
CONTACTS
For further information or to arrange a viewing, please contact:
B E N C O O K
T: +44 (0)20 3296 3632
T H O M A S M I L L E R
T: +44 (0)20 3296 4598
A RG I E TAY L O R
M: +44 (0)7711 917 830
8 Fenchurch Place – London