L O N D O N E 2

P R I M E S H O R E D I T C H R E T A I L I N V E S T M E N T

Investment Summary• East London’s most desired fashion and

restaurant destination

• Part of a newly developed prominent corner building in the prime pitch of Redchurch Street

• New 999 year virtual freehold interest

• Two retail units totalling 2,183 sq ft (202.8 sq m) over ground floor and basement

• Let to two global brands J Crew Clothing and Allpress Espresso until 2025, with open market rent reviews in 2020 and 2021 respectively

• Combined passing rent of £195,000 per annum, reflecting £148 psf Zone A

• With recent lettings on the street reaching in excess of £225 Zone A, the asset is considered reversionary with an ERV of £291,700 per annum

• Soho House occupy the upper floors as a five-star boutique hotel

• Next door development includes Cecconi’s new flagship restaurant

• The property is set to benefit from several major placemaking developments in the immediate vicinity

• Amazon have secured 430,000 sq ft of office space at nearby Principal Place

Offers are invited in excess of £5,500,000, reflecting a net initial yield of 3.33%, with a reversionary yield of 4.98%, assuming purchasers costs of 6.61%.

BOX PARK

GHERKINSHARD

SPITALFIELDS MARKET

LIVERPOOL STREET

SHOREDITCH HIGH STREET

OLD STREET

MOORGATE

B A R B I C A N

O L DS P I T A L F I E L D S

M A R K E T

B R I C K L A N EM A R K E T

T H E R O Y A L L O N D O N

H O S P I T A L

W E A V E R SF I E L D

S H O R E D I T C H

W H I T E C H A P E L

WHITECHAPEL RD

BRICK LAN

E

BETHNAL GREEN RD

HACKNEY ROAD

GREAT EASTERN STREET

B122

BISH

OPG

ATE

COMM

ERCIAL ST

GOSW

ELL ROAD

LONDON WALL

MOO

RGAT

E

OLD STREET

CITY ROAD

KIN

GSLA

ND

RD

CHESHIRE ST

Redchurch StreetRedchurch Street is now considered some of

the most sought-after retail space in East

London; with its swirls of graffiti, unique

quirky buildings and recent influx of high-end

fashion and lifestyle retailers.

The street is a key east to west link from

Shoreditch High Street to the famous Brick

Lane, forming part of a circular route through

some of East London’s trendiest fashion and

leisure destinations such as Old Spitalfields

Market and Bishops Square.

With its proximity to both the City district

and tech rich Old Street, Redchurch Street

benefits from high footfall levels, attracting

one of the most diverse and affluent

demographics in London.

“THE BOND STREET OF EAST LONDON”

CommunicationsRedchurch Street draws on immediate

accessibility to a variety of different cultures

and demographics; the most influential financial

district in the City, the innovative tech hub of

Silicon Roundabout and of course sits within the

fascinating creativity of Shoreditch.

Its closet major transport hub is Liverpool

Street (12 min walk) and with the opening of

the Crossrail (Elizabeth Line) in December 2019,

journey times from Liverpool Street are set to

decrease significantly. Thus, Shoreditch will be

more accessible than ever.

In total, the property benefits from four major

transport hubs within walking distance; London’s

Underground, Overground, Crossrail and National

rail services, making it increasingly easy to

access all corners of the capital and beyond.

LIVERPOOL STREET (12 mins walk)

OLD STREET (12 mins walk)

HOXTON (12 mins walk)

SHOREDITCH HIGH STREET (2 mins walk)

BETHNAL GREEN (16 mins walk)

BETHNAL GREEN

WHITECHAPEL (18 mins walk)

MOORGATE (18 mins walk)

BARBICAN (24 mins walk)

FINANCIAL TIMES

1

2

3

4

ShoreditchShoreditch, located in the London Borough

of Hackney, is one of London’s most vibrant,

exciting and prospering areas, earning its

reputation as the trend setting capital of

the World.

With a strong underlying arts heritage,

Shoreditch has had a long standing affiliation

with a wide range of creative industries. Over

recent years, its appeal has grown to include

leading media and professional firms with its

proximity to the Silicon roundabout, becoming

one of London’s fastest growing districts.

SHOREDITCH VILLAGEA two-phase re-development of Shoreditch village. The

first phase is now completed and the second phase has

been acquired by Brockton Capital. Located just east of

the property, the site is bound by Shoreditch High Street,

Holywell Lane & New Inn Yard. Proposals include a 150,000

sq ft mixed-use and public realm scheme offering retail,

café, restaurant, residential and commercial space.

PRINCIPAL PLACEA substantial development site located immediately north

of Bishopsgate Tower between Worship Street and Hearn

Street. The development will comprise an impressive

15-storey, 600,000 sq ft office building, 430,000 sq ft of

which has been pre-let to Amazon, a brand new public

piazza comprising half an acre of public realm, an events

space and more than 20,000 sq ft of retail space, cafés

and restaurants. The scheme is due for completion 2019.

THE GOODSYARD LONDON Hammerson and Ballymore have submitted plans for the

development of Bishopsgate Goodsyard, the 4.5 hectare

former rail depot which has been vacant for the past

50 years. Proposals include a mixed-use scheme of up to

1,360 new homes, new offices, shops and public space,

including a raised public garden. Goodsyard will cater

for growing Tech City media & technology demands,

independent businesses, start-ups and local people.

Local Developments – a transforming location

1HUNTINGDON ESTATELocated 50 metres from 58 Redchurch Street, London &

Newcastle and UK & European have proposals for a major

high end mixed-use development fronting Redchurch

Street, Ebor Street and Bethnal Green Road. The scheme

consists of retail, café, restaurant, office, leisure and

art gallery/ exhibition space with 80 luxury residential

apartments above.

2

3 4

“AMAZON HAVE TAKEN 430,000 SQ FT AT PRINCIPAL PLACE”

The SituationThe retail units sit within a wider building redevelopment,

which has completely transformed the existing building

into a focal point of Redchurch Street. The four upper

floors now form Soho House’s latest addition to their

exclusive social club estate, providing a five-star

boutique hotel for their members. This is accessed from

11 Club Row.

Next door to the J Crew unit, a final phase of development

is now underway, creating a flagship restaurant unit

which has been pre-let to renowned Italian restaurant

Cecconi’s, with the upper floors providing additional

rooms to the Soho House hotel.

THE EXCLUSIVE SOHO HOUSE ABOVE AND CECCONI’S FLAGSHIP RESTAURANT TO OPEN NEXT DOOR IN AUGUST 2018

THE PROPERTY CONSISTS OF TWO NEWLY DEVELOPED RETAIL UNITS PROVIDING HIGH QUALITY TRADING SPACE AT GROUND FLOOR AND ANCILLARY SPACE AT BASEMENT LEVEL

G R O U N D F L O O R

B A S E M E N T

AccommodationThe property provides a total area of 2,183 sq ft (202.8 sq m) as measured

in accordance with the RICS Code of Measuring Practice (6th Edition).

UNIT FLOOR DESCRIPTION SQ FT SQ M

Unit 1, Allpress Ground Retail Sales 313 29.1

Ground ITZA 293 27.2

Basement Ancillary 200 18.6

Sub-total 513 47.7

Unit 2, J Crew Ground Retail Sales 1,181 109.7

Ground ITZA 982 91.2

Basement Ancillary 489 45.4

Sub-total 1,670 155.1

TOTAL 2,183 202.8

Floorplans for indicative purposes only

Tenancy

The J Crew Group is an internationally recognised omni-

channel fashion retailer of women’s, men’s and children’s

apparel, shoes and accessories.

The company operates from over 570 stores globally and

established e-channel platforms.

For more information on this tenant please visit

www.jcrew.com

Allpress Espresso are coffee roaster and espresso

specialists. Founded in 1989 they were New Zealand’s

first ever coffee cart. Now, working with over 1000

independent cafes around the world and through their

11 roastery locations, they have established themselves

as a leading espresso coffee brand.

For more information on this tenant please visit

www.allpressespresso.com

Redchurch Street

Clu

b R

ow

N

TenureThe property is offered Virtual Freehold on a new 999 year leasehold interest at a peppercorn rent, for ground floor and

basement only.

DEMISE TENANT FLOOR SQ FT SQ MLEASE START

LEASE END

RENT REVIEW

RENT PA (PSF)

ERV PA (PSF)

COMMENTS

Unit 1, 58 Redchurch Street

Allpress Espresso UK Limited

Ground Basement

313 200

29.1 18.6

16/10/15 15/10/25 16/10/21 £45,000 (£148 ZA)

£63,700 (£225 ZA)

- Outside the L&T Act 1954

Sub-Total 513 47.7

Unit 2, 58 Redchurch Street

J Crew UK Limited

Ground Basement

1,818 489

109.7 45.4

24/08/15 23/08/25 24/08/20 £150,000 (£148 ZA)

£228,000 (£225 ZA)

-Outside the L&T Act 1954

Sub-Total 1,670 155.1

TOTAL 2,183 202.8 £195,000 £291,700

SWANFIELD STREET

TURVILLE STREETELEMENTARY

KLAUS

HAPPANIEM

DWELLINGS

MONOLOGUE

RADIO

HAIRDRESSING

FRANZE

& EVANS

EIZENSTEIN

THE

REDCHURCH

SHOREDITCH

FISH & CHIPS

PRET A

MANGER

LUCKIESGIFTS

ENTRANCE

JJ WILLIAM

S

TRACEY NEULS

HOUSE OF

TOO GOOD

BRICK LANE

BETHNAL GREEN ROAD

SCLATER STREET

CYGNET SREET

BACON STREET

BRICK LANE

CLUB ROW

CHANCE STREET

BOUNDARY STREET

BETHNAL GREEN ROAD

NORTHSHOREDITCH HIGH STREETLONDON OVERGROUND

SHOR

EDIT

CH H

IGH

STRE

ET

EBOR STREET

WHITBY STREET

REDCHURCH STREET

REDCHURCH STREET

LABOUR

AND WAIT

THE PAINTED LADY

STUDIO 1.1

DRAGANA PERISIC

DWGS

FOLK

UNDER

ALTERATION

UNDER

ALTERATION

TIMOTH

Y

EVEREST

MODERN

SOCIETY

VERSUS

VERSACE

NUDIE JEANS

KITE

DWELLING

S

AIME

A.P.C.

BOU

NDARYH

OTEL

ALBIONCAFE

SUNSPEL

THE OWL &

PUSSYCAT

PATTY&

BUN

WALLUC

OFFICE

MIISTA

AESOP

MURDOCK

CLUB MONACO

BRANDYMELVILLE

RACHELENTWISTLE

OFFICE

SOHOHOUSE

PSYCLEHEALTH

CLUB

DIRTY BONES

BEACH BLANKET BABYLO

N

GINA’S

REDSOFA

BREWDOG

BARVINTAGE

GUITAR

BOUTIQUE

EST AG

OFFICEBARBER & PARLOU

R

THEELECTRIC

CINEMA

URBAN

INTERIOR

DECORATIONS

SOHO HOUSE

& CECCONI’S

T2

BURRO E SALVA

PASTIFICO

SWEATYBETTY

ANDINA

UPHOLSTERY

DISHOOM

SMOKING GOAT

LYLE’SPIZZA EAST

COWSHED

DIRT

Y BU

RGER

WHISTLESMEN

FORSTERINC

LE LABO

IN HOUSE

THE SHOREDITCH

MASJID TRUST

BY WALSKI

NEW DEVELOPMENT

HUNTINGDON ESTATE

NEW DEVELOPMENT

SHOREDITCH VILLAGE

THE OWL &

PUSSYCAT

SHOREDI TCH

Redchurch Street’s retail offerThe street’s reputation as East London’s

centre for stylish boutiques, independent

store and vintage shops has attracted many

premier fashion and lifestyle brands. French

fashion designer APC, Nudie Jeans, Versace’s

Versus brand, Aesop, Club Monica and

Murdock to name a few, have all established

themselves on the street.

The most recent open marketing letting

evidence on the street is Kite Eyewear’s

occupation of 25–27 Redchurch Street at a

rent reflecting £226 per sq ft Zone A.

Redchurch Street’s restaurant and café offer

is thriving, attracting new types of customers

to the street and increasing dwell time.

Established institutions such as Shoreditch

House, Albion Café and The Boundary mixed

with exciting new dining concepts such as The

Smoking Goat bring together an offering to

rival most. This is added to by Cecconi’s, the

world renowned Italian fine dining restaurant,

committing to take the flagship restaurant

development adjacent to the subject property.

Investment MarketThe central London retail investment market continues to perform well, with total transaction volumes

reaching £1.47 billion in 2017.

London remains the preferred location for overseas investors attracted to the transparent, low interest

rate environment and opportunities around sterling devaluation. Whilst Asian and Middle Eastern buyers

remained very active in the market, it was in fact domestic buyers who thrived in 2017, accounting for

47% of volumes. This shows the depth of buyer profiles active in the Central London retail market.

Pricing remains strong across all central London retail sub-markets with record low yields being

maintained for prime assets with strong investment fundamentals.

CONTACTSFor further information, or to arrange an inspection of the property, please contact:

OLIVER JORDAN

t: 020 7182 2956

m: 07733 226 756

e: oliver.jordan@cbre.com

MARK HOFFMAN

t: 020 7927 0634

m: 07889 456 957

e: mark@rib.co.uk

DISCLAIMER: CBRE Limited and Robert Irving Burns on their behalf and for the Vendors or Lessors of this property whose Agents they are, give notice that: 1. 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. 2. Whilst CBRE Limited uses reasonable

endeavours to ensure that the information in these particulars is materially correct, any intending Purchasers, Lessees or Third Parties should not rely on them as statements or

representations of fact, but must satisfy themselves by inspection, searches, enquiries, surveys or otherwise as to their accuracy. CBRE Limited as such cannot be held responsible

for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss of profits resulting from direct or indirect actions based upon the content

of these particulars. 3. No person in the employment of CBRE Limited has any authority to make any representation or warranty whatsoever in relation to this property. 4. Unless

otherwise stated, all purchase prices and rents are correct at the date of publication and, unless otherwise stated, are quoted exclusive of VAT. Lease details and service ground

rents (where applicable) are given as a guide only and should be checked and confirmed by your solicitor prior to exchange of contracts. February 2018.

VATThe property has been elected for VAT. It is intended

that the transaction will be treated as a Transfer Of a

Going Concern.

PLANNINGThe property is located within the administrative

boundaries of Tower Hamlets City Council. It is not listed.

ENERGY PERFORMANCEBoth units have an EPC rating C. A copy of both Energy

Performance Certificates are available on request.

PROPOSALOffers are invited in excess of £5,500,000, reflecting

a net initial yield of 3.33%, with a reversionary yield

of 4.98%, assuming purchasers costs of 6.61%.

ADAM CHURTON

t: 020 3214 1865

m: 07921 145 868

e: adam.churton@cbre.com