A HIGH YIELDING REVERSIONARY INVESTMENT

OPPORTUNITY, LOCATED WITHIN ONE OF

LONDON'S MAJOR REGENERATION AREAS

THE ROYLE BUILDING

INVESTMENT SUMMARY

• Located equidistant from two of London’s most vibrant Tech Belt locations, Shoreditch and Angel, just a 10 minute walk from Tech City

• Attractive canal side setting, within close proximity to one of London’s major mixed use regeneration areas, City Road Basin and the City Road

• The property provides approximately 1,080 sq m (11,579 sq ft) NIA of high quality newly refurbished office accommodation arranged predominantly at ground floor level, across two units

• Long leasehold interest for a term of 125 years expiring 23 June 2123 (105 years unexpired) at a nominal initial ground rent of £1,000 per annum

• Fully let to award winning Catapult Enterprises Ltd (t/a Propercorn), and Somesuch & Co Ltd with weighted income of approximately 6.6 years unexpired

• Current passing rent of £510,473 per annum which equates to a reversionary £44.09 per sq ft overall.

• Offers are sought in excess of £7,950,000 subject to contract and exclusive of VAT

• A purchase at this level reflects a highly attractive net Initial yield of 6.01%, after purchaser’s costs of 6.68%, and a capital value of £687 per sq ft overall

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LOCATION

The property is located on the western side of Wenlock Road, which adjoins City Road to the south, one of the main arterial roads that links the City of London with Shoreditch, Kings Cross and Euston. The surrounding area and in particular City Road has undergone significant regeneration in recent years, with numerous high quality conversions of commercial and industrial buildings to vibrant mixed use schemes comprising offices, residential, hotel, student and retail uses. Schemes such as 250 City Road, The Eagle and Canaletto have benefited from the area’s proximity to the City of London, excellent public transport links and greatly improved local amenities, making this a desirable destination for urban living and working.

The Royle Building is located equidistant from two of London’s most vibrant and rapidly expanding Tech Belt locations, Shoreditch and Angel. The property offers an attractive canal side setting, within close proximity of Islington’s City Road Basin regeneration zone. Old Street Roundabout and Tech City are approximately a 10 minute walk to the south east of the property and the cosmopolitan areas of Angel and Clerkenwell are located a short distance to the west and south-west respectively.

The location is set to improve further upon the delivery of major forthcoming infrastructure projects. Old Street station is to undergo a £50m upgrade, which will convert the existing 1970s roundabout into an attractive new pedestrianised public space, including seating and trees. It will see the north-western 'arm' of the junction by City Road closed and two-way traffic reintroduced to the gateway to Tech City as it becomes a new hub for the thousands of people who live, work and socialise nearby.

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THE SURROUNDING AREA HAS EXPERIENCED SIGNIFICANT

REGENERATION IN RECENT YEARS.

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An unprecedented influx of technology, media, and telecommunication companies (TMT) to Shoreditch and the area surrounding Old Street Roundabout in recent years has secured its position as a major global technology hub. Shoreditch and Tech City have become distinct as London’s new centre of creativity and innovation. The area serves as an incubator for start-ups in fin-tech, media, technology, fashion, music and art industries. Local occupiers include Cancer Research UK, Amazon, Google Campus, Ticketmaster, Headspace, Silicon Valley Bank, Inmarsat, Adobe Systems, Lowe Group (Interpublic), and QuidCo.

Shoreditch and Angel provide rich amenity to the creative occupier base, offering a number of bars, restaurants, and hotels including:

D1 MODELS

HEADSPACE

MOORFIELDS EYE HOSPITAL

CBS INTER ACTIVE

FARFETCH

INMARSAT

EMC2 , AKT & SPARK 44

CAPITAL ONE

GOOGLE

VICE

MIXCLOUD

L .K . BENNETT

CAPCO

TR ANSFERWISE

PIXIPIXEL

K APLAN

TICKETMASTER

CANCER RESEARCH UK

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JAMIE OLIVER’S FIFTEEN

ACE HOTEL

THE BREAKFAST CLUB

THE HOXTON HOTEL

THE TR AMSHED

THE NARROWBOAT PUB

SARDINE

NICHE

JAMIE ’S ITALIAN

OZONE COFFEE

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LOCAL OCCUPIERS

ELIZABETH LINE (CROSSRAIL)

Crossrail is Europe’s largest infrastructure project and is set to transform London’s transport network. It is estimated that the new rail line will bring an extra 1.5 million people to within 45 minutes of Central London. Services are due to commence in 2018 with Farringdon set to become one of the key hubs and is located approximately a mile from The Royle Building.

When Crossrail opens in 2018, Farringdon Station will be the only station in London that is connected to the Crossrail, Underground and Thameslink networks. Approximately one quarter of the population of England will be able to reach Farringdon Station within 45 minutes, which amounts to over 13.25 million people. Farringdon Station will provide a direct link to three of London’s five airports, with travel times to London destinations significantly reduced. It is also one stop to Kings Cross and the Eurostar Terminal. With 140 trains per hour forecasted to pass through the interchange, this location is expected to become an ever increasing business hub for occupiers seeking world class connectivity.

CROSSRAIL 2 AND ANGEL UNDERGROUND STATION

Angel Underground Station is currently included in the plans for a future north-south rail service across Greater London known as Crossrail 2. This will link Surrey and Hertfordshire via central London stations including Victoria and King’s Cross St Pancras. The scheme aims to achieve Government approval in 2020, and be fully operational in the early 2030s.

CONNECTIVITYT

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61 MINS

READING

40 MINS SHENFIELD

34 MINSHEATHROW AIRPORT

27 MINSHAYES&

HARLINGTON

HANWELL 18 MINSEALING

BROADWAY

10 MINSPADDINGTON

5 MINSTOTTENHAMCOURT ROAD

LIVERPOOLSTREET

WHITECHAPELSOUTHALL WESTEALING

ACTONMAIN LINE

7 MINSBOND

STREET

FARRINGDON0.95 MILES FROM

THE ROYLE BUILDING

18 MINSABBEY WOOD

CHESHUNT

NEW SOUTHGATE

TWICKENHAM

KINGSTON

HAMPTON COURT

CHESSINGTON SOUTH

SHEPPERTON

CLAPHAM JUNCTION

EUSTON

KINGS CROSS

ST.PANCRAS

VICTORIA

TOOTINGBROADWAY

KING’S ROADCHELSEA

TOTTENHAMCOURT ROAD

WIMBLEDON

MOTSPUR PARK

EPSOM

STATION STRAIGHT LINE DISTANCE (DIRECTION)

SERVICES

Old Street0.55 miles(South east)

Northern Underground and Mainline Rail services

Angel0.3 miles(West)

Northern Underground services

Farringdon0.95 miles(South west)

Circle, Metropolitan and Hammersmith & City

Underground services

ANGEL0.3 MILES FROM

THE ROYLE BUILDING

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GROUND FLOOR VACANT POSSESSION VALUES WITHIN

THE LOCALITY HAVE ACHIEVED IN EXCESS OF £800 PER SQ FT

THE BOWER, EC1Primary Use: Offices

Developer: Helical

WHITE COLLAR FACTORY, EC1Primary Use: Offices

Developer: Derwent London

THE ANGEL BUILDING, EC1Primary Use: Offices

Developer: Derwent London

44-48 WHARF ROAD, N1Primary Use: Offices

Owner: Urban Lime Ltd

SPECTRUM, 160 OLD STREET, EC1Primary Use: Offices

Developer: Ropemaker

Partnership (50:50 JV between

GPE and the BP Pension Fund)

PROVOST & EAST, EC1Primary Use: Offices

Developer: Rocket Investments

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SHOREDITCH, ANGEL AND THE CITY ROAD HAS BEEN SUBJECT TO UNPRECEDENTED DEVELOPMENT ACTIVITY IN RECENT YEARS.

This is largely being driven by occupational demand from rapidly

growing tenants within the tech and creative sectors, but also

residential occupiers seeking to be part of the exciting transformation

of Shoreditch and the Tech Belt.

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4 5 ATLAS, EC1Primary Use: Residential

Developer: Rocket Investments

Private Units: 301

250 CITY ROAD, EC1Primary Use: Residential

Developer: Berkeley Homes

CANALETTO, EC1Primary Use: Residential

Developer: Groveworld

ST MATTHEWS & ST MARKS HOUSE, SHEPHERDESS WALK, N1Primary Use: Offices

Developer: Schroders

THE LEXICON, EC1Primary Use: Residential

Developer: Mount Anvil

225 CITY ROAD, EC1Primary Use: Residential

Developer: Reuben Brothers

WHARF STUDIOS, N1Primary Use: Offices

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ACCOMMODATION

The refurbished modern specification of both Units can be summarised as follows:

• Attractive canal side working environment

• VRF air conditioning systems • Exceptional floor to ceiling

heights of 3.2 – 3.5 metres • Newly installed suspended

lighting • Outstanding natural light

41 Wenlock Road comprises two self-contained warehouse style office units situated in an attractive canal side setting fronting the Regents Canal and Wenlock Basin. The units form part of the The Royle Building which is an attractive former print works originally constructed in 1937 of traditional brick.

The property underwent a comprehensive refurbishment in 2015 to provide approximately 1,080 sq m (11,579 sq ft) NIA of modern well specified warehouse style office space, arranged predominantly at ground floor level.

Unit 1 provides approximately 732 sq m (7,879 sq ft) and has extensive frontage to the canal at northern and western elevations. Unit 2 provides approximately 344 sq m (3,700 sq ft) and has a separate entrance fronting Wenlock Basin. The regular shaped floor plates benefit from vast floor to ceiling heights (3.2 – 3.5 metres) and large windows, ensuring exceptional levels of natural light.

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DESCRIPTION

UNIT FLOOR NIA (SQ FT) NIA (SQ M)

Unit 1Ground 6,316 586.77

Lower Ground 502 46.63

Basement 1,061 102.74

Unit 2 Ground 3,700 343.7

TOTAL 11,579 1,079.84

TWO SELF-CONTAINED WAREHOUSE STYLE

OFFICE UNITS SITUATED IN AN ATTRACTIVE CANAL

SIDE SETTING.

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UNIT 1GROUND6,316 SQ FT (NIA)

UNIT 2GROUND3,700 SQ FT (NIA)

UNIT 1LOWER GROUND502 SQ FT (NIA)

UNIT 1BASEMENT1 ,061 SQ FT (NIA)

FLOORS

11,579 SQ FT MODERN WELL SPECIFIED WAREHOUSE STYLE OFFICE SPACE

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THE WENLOCK BASIN

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TENANCY SCHEDULE

UNIT TENANT DEMISE NIA(SQ FT)

LEASE START

LEASE EXPIRY

RENTREVIEW

PASSING RENT (P.A.)

PASSING RENT (PSF)

COMMENTS

Unit 1

Catapult Enterprises Limited (trading as Propercorn)

Ground Floor

6,316

03/03/2016 02/03/2026 25/02/2021

£284,220 £45.00

• Rent Deposit £192,043.5

Lower Ground

502 £22,590 £45.00

Basement 1,061 £13,263 £12.50

Unit 1 Total 7,879 £320,073 £40.62

• £160,036.25 from 3 June 2016 to 2 August 2017

• £320,072.50 from 3 August 2017 until the review date

Unit 2Somesuch & Co Limited

Ground Floor

3,700 15/04/2016 4/04/2021 £190,400 £51.46• Rent Deposit of

£76,160

TOTAL GROSS RENT

11,579 £510,473 £44.09

HEAD RENT -£1,000

TOTAL NET RENT £509,473

The property is let to Catapult Enterprises Ltd (t/a Propercorn) and Somesuch & Co Ltd on Full Repairing and Insuring Terms in accordance with the tenancy schedule set out below. The total gross rent is £510,473 per annum (£44.09 per sq ft) overall and the weighted average unexpired lease term is approximately 6.6 years.

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TENURE & SITE

THE PROPERTY IS HELD LONG LEASEHOLD FOR TERM OF 125 YEARS EXPIRING 23 JUNE 2123 PROVIDING APPROXIMATELY 105 YEARS UNEXPIRED.

The headlease is subject to stepped rental increases at the 25th anniversaries of the lease as set out below:

HEADLEASEPAYMENTS

FROM TO HEAD RENT

Period 1 24/06/1998 23/06/2023 £1,000

Period 2 24/06/2023 23/06/2048 £2,000

Period 3 24/06/2048 23/06/2073 £4,000

Period 4 24/06/2073 23/06/2098 £8,000

Period 5 24/06/2098 23/06/2123 £16,000

This official copy is incomplete without the preceding notes page.

Canal

The above plan shows approximate boundaries copied from the title plan and is for indicative purposes only.

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COVENANT INFORMATION

CATAPULT ENTERPRISES LTD (t/ a Propercorn)

Propercorn is a new generation health snack founded in 2011 by CEO Cassandra Stavrou and business partner Ryan Khon. Capitalising on an increasingly health conscious nation which has seen popcorn sales increase by 10% this year; their low calorie flavoured popcorn is currently one of the UK’s fastest growing snack brands. The company now employs over 40 staff at their London headquarters at The Royle Building and sells their popcorn in 11 countries. The rapid success enabled the company to secure a £7m investment from the Innocent Drinks founders JamJar

Investments, and Piper Private Equity in 2016. Innocent Drinks co-founder Adam Balon was appointed Chairman at this time focusing on the continued growth of the business.Propercorn is stocked in all major supermarkets including Tesco and Wholefoods. According to the Piper Private Equity website, sales of Propercorn are forecast to rise from £10m in 2015 to £15m in 2017. Propercorn also ranked fifth place in the Financial Times 1000: Europe’s Fastest Growing Companies (May 2017).

SOMESUCH & CO LTD

Somesuch & Co is an award winning global film production company founded in 2010 by producer Sally Campbell, director Nick Gordon and video commissioner Tim Nash. The company has grown significantly to feature on the 2015 and 2017 ‘Production Company A-List’. It was also awarded the prestigious ‘Production Company of the Year’ award in 2015 following its successful campaigns such as “The Other Side” for Honda and “It Comes from Below” for Under Armour. The company won its first BAFTA in 2017 for Best Short Film for ‘Home’.

www.somesuch.com

PROPERCORN HAS SECURED A £7M INVESTMENT FROM

INNOCENT DRINKS FOUNDERS JAMJAR INVESTMENT AND

PIPER PRIVATE EQUITY

www.propercorn.com

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RENTAL COMPARABLEST

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UNION WHARF, UNIT 5 23WENLOCK ROAD, N1Size: 1,363 per sq ft

(ground & mezzanine)

Rent: £57.50 per sq ft

(available)

HQ SHOREDITCH,BEVENDEN STREET, N1Size: 8,680 sq ft

Rent: £59.50 per sq ft

4-6 NILE STREET, N1Size: 1,959 sq ft

Rent: £57.50 per sq ft

44-48 WHARF ROAD, N1Size: 995 sq ft (ground)

Rent: £54.50 per sq ft

26 UNDERWOOD STREET, N1Size: 6,214 sq ft

Rent: £57.50 per sq ft

UNION WHARF, UNIT 5 23 WENLOCK ROAD, N1(Available, vacant possession)

Size: 1,363 sq ft (ground and

mezzanine)

Tenure: Virtual freehold

Price: £1,350,000

Price/ Sq ft: £990 per sq ft

14 SHEPHERDESS WALK, N1Size: 4,616 sq ft (ground &

lower ground)

Tenure: Virtual freehold

Price: £2,900,000

NIY: 3.11%

Price/ Sq ft: £628 per sq ft

20 UNDERWOOD ROW, N1(Vacant Possession)

Size: 2,195 sq ft (over ground only)

Tenure: Long leasehold

Price: £1,900,000

Price/ sq ft: £866 psf

GILRAY HOUSE, 146-150 CITY ROAD, EC1Size: 11,023 sq ft

Tenure: Freehold

Price: £11,000,000

NIY: 4.55%

Price/ sq ft: £998 per sq ft

21 WORSHIP STREET, EC2Size: 12,864 sq ft

Tenure: Freehold

Price: £14,250,000

NIY: 4.91%

Price/ sq ft: £1,108 per

INVESTMENT COMPARABLES

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EPCThe property has an EPC rating of A (54) for Unit 1 and E (106) for Unit 2. Copies of the certificates are available on the data room.

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

VAT The property is elected for VAT and it is anticipated that the transaction will be treated as a Transfer of a Going Concern (TOGC).

CAPITAL ALLOWANCES The benefit of any unclaimed capital allowances could be made available to the purchaser by separate negotiation.

PLANNING The property is located in The London Borough of Hackney and is situated within the Regent’s Canal Conservation Area.

PROPOSALWe are instructed to seek offers in excess of £7,950,000 (SevenMillion Nine Hundred and Fifty Thousand Pounds) subject tocontract and exclusive of VAT for our client’s long leasehold interest.A purchase at this level reflects a highly attractive net Initial yield of6.01%, after purchaser’s costs of 6.68%, and a capital value of £687per sq ft.

DISCLAIMER: 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. October 2017.

Christopher James 020 7588 4433christopher.james@allsop.co.uk

Matthew Millman 020 7588 4433matthew.millman@allsop.co.uk