West One & 75 Davies Street

W E S T O N E & 75 D A V I E S S T R E E T L O N D O N

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L A N D M A R K I N V E ST M E N T O P P O RT U N I T Y

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Contents Investment Summary

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Accommodation 26

London - A Global City

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Floor Plans

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Mayfair Overview

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Tenure & Tenancy

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West End Retail

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Tenancy Schedule

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West End Office, Residential, Leisure

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Income Analysis & Scheme Information

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Location & Situation

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Tenants Covenants

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Communications & Crossrail

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Market Overview & Investment Market

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Local Occupiers Map

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Asset Management Initiatives

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Oxford Street Retailers

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Proposal & Contacts

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Description 22

W E S T O N E & 75 D A V I E S S T R E E T LO N D O N W 1

L A N D M A R K I N V E ST M E N T O P P O RT U N I T Y

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W E S T O N E & 75 D A V I E S S T R E E T LO N D O N W 1

Unique Oxford Street Shopping Centre & Prime Mayfair Office Investment, situated directly above Bond Street Underground and Crossrail

Investment Summary • Unique Oxford Street Shopping Centre & Prime Mayfair Office Investment • Situated directly above Bond Street Underground with access to the new Crossrail station • West One and 75 Davies Street will benefit significantly from the opening of Crossrail in 2018 • Total area of 90,065 sq ft, comprising 45,543 sq ft of net lettable retail and 44,522 sq ft office accommodation • Prime retail frontage onto Oxford Street and office entrance onto Davies Street, occupying a large site area of 0.75 acres • Opportunity to refurbish both office and retail space, to realise an uplift in the passing rents • West One is anchored by Toy Store, Marks & Spencer, Boots, Superdrug and McDonalds • 75 Davies Street provides four floors of efficient Grade A Mayfair office accommodation • Leasehold interest for a term of 129.5 years from June 1981 at a gearing of 11% • Total current passing income £9,655,243 per annum • Estimated net rental income £8,793,728 per annum • For the benefit of our client’s valuable 95.50 year leasehold interest we are instructed to seek offers in excess of £240,000,000 (Two Hundred and Forty Million Pounds) subject of contract and exclusive of VAT, to reflect a net initial yield of 3.46% and an equivalent yield of 4.18% assuming standard purchasers costs of 5.80%.

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W E S T O N E & 75 D A V I E S S T R E E T LO N D O N W 1

London - A Global City London covers 610 square miles and is home to 8.5 million residents. It is the largest city in Europe and is the seat of central Government in the UK. As the world’s largest financial centre alongside New York, London has the largest GDP of any city in Europe, generating approximately 22% of the UK’s GDP. London is viewed as the global capital for retail and business, with a higher concentration of international retailers represented than in any other international city. In addition, London is the cornerstone for international investment and commerce, and the gateway to Europe for overseas investment.

London’s five international airports together with its integrated transport network acts as a major draw to the city. London is ranked as a global retail destination above both Paris and New York.

London has unique heritage, which when combined with its unrivalled legal, financial and geographical attributes places it as the number one city globally for business, tourism and shopping.

London is viewed as the global capital for retail and business, with a higher concentration of international retailers represented than in any other international city

Oxford Street

Retail footfall in the capital, in both luxury and mass market retail locations, has increased year on year. The increased retailing offer in London and improved global accessibility has provided a platform for further footfall and consumer spending growth.

As the world’s largest financial centre, London draws on a number of distinct advantages, including its established financial infrastructure, skilled labour pool and global positioning, providing an optimal time zone link between Asia and the Americas for international market trading.

London has a resident labour force of over 4.5 million people. This is expected to increase by 22.1% over the next 16 years.

The diverse mix of hotels, theatres, restaurants and tourist attractions that London offers ensures it consistently attracts a high number of international and domestic tourists. London’s ongoing ability to attract international tourists, which now exceeds 18.7 million visitors annually, has led to an estimated spend of approximately £11.0 billion per annum.

The unique attractions that define the character of the city and distinguish London as a global destination include the Tower of London, Westminster, Buckingham Palace, Madame Tussauds, London Eye and Wembley Stadium as well as internationally renowned shopping locations.

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Buckingham Palace

Bond Street

Green Park

Berkeley Square

Mayfair

Claridges

Davies Street

Grosvenor Square Gardens

Oxford Street

Selfridges

Hyde Park

Park House

Park Lane

T H E P R O P E RT Y

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W E S T O N E & 75 D A V I E S S T R E E T LO N D O N W 1

West End RETAIL Prime Retail Destination

Oxford Street

Bond Street

London is one of the world’s most visited retail destinations. The West End attracts over 390 million visitors a year, many of which make Oxford Street and Bond Street their primary shopping destination. The West End offers shoppers a diverse range of amenities including the world famous shopping streets of Oxford Street, Regent Street and Bond Street.

Oxford Street is the focus of the West End retail market, with a multitude of flagship and department stores driving footfall, attracting the British mass market and tourists. It is by far the largest of London’s key retail shopping destinations with over 4.27 million sq ft of retail floor space and approximately 310 retailers. The street remains the premier location in Central London for department stores; Selfridges, Debenhams, House of Fraser and John Lewis, which are all located west of Oxford Circus.

The street also has numerous large variety stores with two Marks and Spencer stores, Bhs and two Primark stores as well as a growing number of flagship stores for major UK and overseas multiples including GAP, Boots, Hennes, Adidas and Zara.

Bond Street runs north-south through the heart of Mayfair, a location synonymous with exclusivity, luxury and London’s rich heritage. Bond Street has been at the heart of Mayfair retailing for over 150 years, with the major fashion houses of Chanel and Hermes maintaining a continuous presence on the street for over 30 years. It is characterised by internationally renowned high-end fashion boutiques and jewellers, including Asprey, Chopard, De Beers, Gucci, Louis Vuitton, Cartier, Ralph Lauren and Dior. In recent years, as the location’s offering has developed, it has become the main destination for international retailers looking to expand into London.

Notable retailers to recently cement their position on Bond Street include Prada, Salvatore Ferregamo and Piaget.

Mayfair is the prime retail destination for the world’s exclusive fashion houses, with over 65% of the top 100 luxury brands. Its world renowned luxury shopping streets include Bond Street, Dover Street, Mount Street and The Burlington Arcade showcasing the most exclusive retail brands, art galleries and the world famous centre of luxury bespoke tailoring on Savile Row.

In the global high street survey carried out

by Drapers, Oxford Street surpassed its international rivals New York’s Fifth Avenue, Paris’ Champs Elysee, Milan’s Via Torino and Tokyo’s Omotesando, as being the retail destination of choice. Oxford Street was said to have the largest number of significant brands and also provided the widest choice of styles and price points.

Oxford Street is the busiest shopping street in Europe and London’s most popular shopping destination.

The West End attracts over 390 million visitors a year, many of which make Oxford Street and Bond Street their primary shopping destination

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W E S T O N E & 75 D A V I E S S T R E E T LO N D O N W 1

West End OFFICE

RESIDENTIAL

LEISURE

A Business Address

Exclusive Residential

World Class Leisure & Amenity

Mayfair sits in the heart of London and is one of the most prestigious global addresses.

Mayfair is bordered by St James’s to the south, Marylebone to the north, Soho to the east and Hyde Park to the west and is home to some of London’s most affluent residents. Mayfair is undoubtedly one of the world’s most exclusive and prestigious residential addresses.

The West End houses an estimated 686 restaurants,19 theatres,11museums and 90 galleries.

Mayfair has long been established as London’s prime office destination boasting a wide array of the world’s leading corporate headquarters.

Mayfair commands some of the highest rents in the world and its attraction as an office location is unparalleled.

Mayfair benefits from exclusive amenities, excellent communication links and is the epicentre of hedge fund and boutique financial institutions as well as attracting tenants across all sectors. Notable local occupiers include Blackstone, Glencore, Angelo Gordon, Bain Capital, Lazards, Kleinwort Benson, Rathbones, Grosvenor and WPP.

The area has been the main location for the British elite dating back to the 1650s due to its close proximity to the Royal Palaces and the seat of British Government. In more recent years Mayfair has also been the chosen location for international buyers due to its unrivalled amenities, including some of the world’s best restaurants and hotels combined with the historical significance of the area. The location’s attractiveness as a residential address is further increased by its proximity to the Royal Parks including Hyde Park, Green Park and St James’s Park as well as many landmark garden squares including Berkeley Square, Grosvenor Square and Hanover Square.

Mayfair has long been home to some of the world’s most exclusive restaurants and hotels, serving not just the affluent local residents but also the millions of international visitors every year. Many of London’s leading restaurants are located within Mayfair including Nobu, Scott’s, Harry’s Bar, Novikov, C London and Gordon Ramsay’s Maze. These sit alongside renowned hotels including The Ritz, The Connaught, Claridge’s, The Westbury, The Grosvenor House and The Dorchester hotel.

Aside from offering unrivalled leisure provisions, Mayfair is also the home to many of London’s cultural icons. Mayfair is home to one of the largest collections of private art galleries totalling almost 90 altogether. These galleries offer a unique and diverse selection of modern, Oriental and Asian art collections.

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W E S T O N E & 75 D A V I E S S T R E E T LO N D O N W 1

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Location and Situation

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West One and 75 Davies Street are prominently situated on the corner of Oxford Street and Davies Street, close to the junction of South Molton Street.

The property is situated directly above Bond Street Station, which will form part of the Crossrail station entrance in 2018. The new western ticket hall is currently being developed and is situated immediately to the south of West One and 75 Davies Street.

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HOTELS & CLUBS

1 Coca Cola

22 Churchill Hyatt Regency

2 AlixPartners

23 Home House

3 Elliott Advisors

24 The Connaught

4 Boston Consulting Group

25 Claridges

5 Lansdowne Partners

26 Dunhill

6 Bluebay Asset Management

27 The Dorchester

7 The Carlyle Group

28 The Westbury

8 Blackstone Group

29 The Beaumont

9 Bridgepoint Capital

11 Ahli International Bank

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RETAIL 30 Selfridges 31 Marks & Spencer

RESTAURANTS

32 John Lewis

12 Le Gavroche

33 Debenhams

13 Locanda Locatelli

34 House of Fraser

14 Maze

35 Nike Town

15 Scott’s Restaurant

36 Forever 21

16 Cipriani

37 H&M

17 The Square

38 Apple

18 Hibiscus

39 Fortnum & Mason

19 Sketch

40 Burlington Arcade

20 Nobu

41 Fenwicks

21 Roka

42 Savile Row

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West One and 75 Davies Street is effectively an island site bounded by Oxford Street to the north, Davies Street to the east, Weighhouse Street to the south and Gilbert Street to the west.

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The property lies approximately 150 metres from Selfridges and 250 metres from John Lewis and is situated in arguably the best trading location in the West End. Major stores in close proximity also include Marks & Spencer, Boots, Primark, House of Fraser, Debenhams, Zara and Next. More recently new retailing entrants to this section of Oxford Street include Forever 21, Adidas, New Balance and Omega.

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W E S T O N E & 75 D A V I E S S T R E E T LO N D O N W 1

Indicative CGI of 65 Davies Street

Communications West One and 75 Davies Street sit in the heart of the West End of London and benefit from excellent communications into and through the capital. The property is situated above Bond Street London Underground station (Central and Jubilee lines) and has access to numerous London Underground stations within walking distance: Green Park (Jubilee, Piccadilly and Victoria lines), Oxford Circus (Bakerloo, Central and Victoria lines) and Piccadilly Circus (Bakerloo and Piccadilly lines). In addition, there are numerous bus routes along Oxford Street and Regent Street serving the local area.

Crossrail Express train services from Paddington and Victoria provide rapid access to Heathrow and Gatwick airports respectively, with regular services every 15 minutes. London City airport is also within easy reach being approximately 45 minutes travel via the Jubilee line and Docklands Light Railway. Eurostar services to Continental Europe operate from St Pancras International station, just 5 minutes from Oxford Circus station.

As Europe’s largest infrastructure project, Crossrail is a high speed, high capacity and high frequency rail service, which is scheduled to open in 2018. This new rail link across the eastwest axis will facilitate travel from Maidenhead and Heathrow in the west to Shenfield and Abbey Wood in the east, via Farringdon and Moorgate in the City, and will bring an extra 1.5 million people to within 45 minutes of Central London.

In addition to benefitting from excellent transport facilities, high levels of permeability and pedestrian routes link the property to destinational areas within the West End, including South Molton Street, St Christopher’s Place and Davies Street.

The Crossrail network will increase London’s rail based transport capacity by 10% and will provide 24 trains per hour during peak times, transporting up to 200 million passengers a year. Key Crossrail stations in Central London include, Paddington, Bond Street, Tottenham Court Road, Farringdon, Liverpool Street and Canary Wharf.

West One and 75 Davies Street sit in the heart of the West End of London and benefit from excellent communications

Bond Street Station - Key Improvements Bond Street Station is undergoing major redevelopment to increase capacity and improve accessibility by 2017, to create an interchange with Crossrail.

As a result of these initiatives, West One and 75 Davies Street will substantially benefit from improved pedestrian amenity, an increased retail footfall and greater connectivity to the City of London, Canary Wharf and Heathrow.

As one of the key new West End Crossrail Stations, Bond Street is anticipated to increase the number of passengers from 125,000 to 220,000 daily. In order to cater for the increase in passenger numbers at Bond Street Station key improvements will include:

Crossrail Journey Times from Bond Street JOURNEY TIME

• Two new ticket halls - an eastern ticket hall on the corner of Hanover Square and Tenterden Street and a western ticket hall at Davies Street

Paddington

2 minutes

Farringdon

4 minutes

• A new London Underground station entrance on Marylebone Lane, on the north side of Oxford Street

Liverpool Street

7 minutes

Ealing Broadway

10 minutes

• New escalators serving the Jubilee line

Whitechapel

10 minutes

• Lifts to provide step free access from street to platform

Canary Wharf

13 minutes

Heathrow

29 minutes

• Interchange with Crossrail services within the station.

Crossrail Route Map

Twyford Reading

Taplow

Maidenhead

Slough

Burnham Langley

Iver

Hayes & Harlington

West Drayton

Hanwell

Southall

Heathrow Airport

Ealing Broadway

West Ealing

Stratford

Bond Street

Acton Paddington Mainline

Farringdon Tottenham Court Road

Whitechapel

Liverpool Street

Forrest Green

Maryland

Illford

Manor Park

Goodmayes

Seven Kings

Woolwich Canary Custom Wharf House

Romford

Chadwell Heath

Gidea Park

Harold Wood

Shenfield

Brentwood

Surface

Abbey Wood

Underground

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Local Occupiers

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W E S T O N E & 75 D A V I E S S T R E E T LO N D O N W 1

Primark

Next

Marks & Spencer

Selfridges

Gap

H&M

Forever 21

HMV

Disney Store

T H E P R O P E RT Y

Oxford Street Retailers

Zara

House of Debenhams Fraser

River Island

John Lewis

Apple

Bhs

United Colours of Benetton

H&M

Nike Town

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W E S T O N E & 75 D A V I E S S T R E E T LO N D O N W 1

West One and 75 Davies Street comprise a purpose built enclosed shopping centre and prestigious multi-let office building

Description West One and 75 Davies Street comprise a purpose built enclosed shopping centre and prestigious multi-let office building.

The property was constructed in 1979 with a cast in-situ reinforced structural frame and floor decks. The accommodation totals 90,065 sq ft and is arranged over lower ground, ground and four upper floors.

RETAIL ACCOMMODATION The shopping centre element is arranged over concourse, ground and first floor levels, benefitting from a direct link into Bond Street Underground station. The retail accommodation is divided into 21 units, with 7 at concourse and 14 at ground level and an additional 7 kiosks within the scheme. West One is anchored by Toy Store, Marks & Spencer, Boots, Superdrug and McDonalds. The flagship, Toy Store, occupies a prominent corner frontage on both Oxford Street and Davies Street, benefitting from a triple escalator link from ground to the substantial first floor comprising approximately

20,000 sq ft. In addition there are a number of kiosk units at both ground and concourse levels principally arranged around the escalator core.

At ground floor level the shopping centre has three main pedestrian entrances at Oxford Street, Davies Street and Gilbert Street, with an additional thoroughfare via the Boots unit on Oxford Street. There is a further entrance to Bond Street Station on the corner of Oxford Street and South Molton Street, which provides direct access to the retail units at concourse level. The Oxford Street entrance is the most

prominent of them all, with a unique overhanging canopy, a rare feature on the prime retailing street.

Servicing is accessed via a purpose built double height delivery bay accessed from Weighhouse Street, which is located at the rear of West One and 75 Davies Street.

West One’s official trading hours are 7am-10pm daily, albeit passenger footfall from the Underground station starts from as early as 6.30am when the gates into the station open at concourse level.

First floor flagship retail accommodation

Indicative CGI of new Toy Store entrance

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W E S T O N E & 75 D A V I E S S T R E E T LO N D O N W 1

Description OFFICE ACCOMMODATION 75 Davies Street provides 45,522 sq ft of Grade A open plan office accommodation arranged over ground and four upper floors. The offices are accessed via an impressive, architect designed double-height glazed reception area, which leads to a bank of three passenger lifts.

The office floor plates are well configured, providing high quality and efficient office accommodation allowing for single or multiple occupation, ranging from 6,182 sq ft on the fourth floor up to 13,148 sq ft on the second floor.

The first to third floors are arranged in a ‘U-shape’ with a triple aspect, including a substantial 50 metre frontage onto Davies Street, as well as north and south elevations which overlook Oxford Street and Weighhouse Street respectively. The smaller fourth floor is rectangular and runs along the Davies Street elevation. The first to third floors provide two stair cores at the north and south elevations, whilst the fourth floor has a single stair core at the southern elevation.

The corner plot nature of the site and the building’s striking reception complement the offices offering excellent levels of natural light at all levels.

75 Davies Street provides 45,522 sq ft of Grade A open plan office accommodation arranged over ground and four upper levels

75 Davies Street was substantially refurbished in 2007 to provide the following specification: • Architect designed double height entrance • LG7 compliant lighting • Fully accessible raised floors • Four pipe fan coil air conditioning • Metal tile suspended ceilings • Male, female and disabled WCs at 1st, 2nd, 3rd and 4th floors • Showers at 1st, 2nd, 3rd and 4th floors • Three 12-person passenger lifts.

Accommodation The property has been measured in accordance with the RICS Code of Measuring Practice (Sixth Edition).

The net internal areas are as follows: Floor

Use

Sq ft

Sq m

Concourse Level

Retail

9,145

849.6

Ground Floor

Retail

14,686

1,364.4

First Floor

Retail

20,712

1,924.2

44,543

4,138.2

West One

Sub Total 75 Davies Street Fourth Floor

Office

6,182

574.3

Third Floor

Office

13,094

1216.5

Second Floor

Office

13,148

1221.5

First Floor

Office

13,098

1216.8

Sub Total

45,522

4,229.1

Total Net Lettable

90,065

8,367.3

Common Parts Not Included in The Total Net Lettable Areas Offices Mezzanine Level

Management Suite

534

49.6

Ground Floor

Office Reception

558

51.8

Sub Total

1,092

101.4

Total Accommodation

91,157

8,468.7

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W E S T O N E & 75 D A V I E S S T R E E T LO N D O N W 1

Elevation Plan

OFFICE 75 Davies Street Level 4 - Adams Street Partners 75 Davies Street Level 3 - P/S/L Group &

Dangote Global Services 75 Davies Street Level 2 - Instant Managed Offices 75 Davies Street Level 1 - Instant Managed Offices 75 Davis Street - Management Suite

Central Line

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RETAIL West One First Floor - Toy Store

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West One Ground Floor - Simit Sarayi West One Ground Floor - Pret A Manger West One Concourse Level - Retail

West One Floor Plans B O N D S T R E E T S TAT I O N

Thomas Bureau de Change

Encore Tickets

Marks & Spencer

Supercuts McDonalds

CONCOURSE LEVEL PLAN

Signature Blow

Fresh Collection

Superdrug

Holland & Barrett

O X F O R D

S T R E E T

Simit Sarayi

Toy Store

Pret A Manger

Boots Sweet Express S T R E E T

Cavendish Flats

D A V I E S

G I L B E R T

Wasabi Pret A Manger Cinnabon

S T R E E T

Cards Galore

London Times

Simit Sarayi

Starbucks

GNC

McDonalds Cavendish Flats

75 Davies Street Entrance Cavendish Flats

Delivery Bay

GROUND FLOOR PLAN W E I G H H O U S E

S T R E E T

O X F O R D

S T R E E T

S T R E E T

Toy Store

D A V I E S

Cavendish Flats

Toy Store

Cavendish Flats

Delivery Bay Management Suite

FIRST FLOOR PLAN W E I G H H O U S E

S T R E E T

29

W E S T O N E & 75 D A V I E S S T R E E T LO N D O N W 1

O X F O R D

W E I G H H O U S E

D A V I E S

S T R E E T

D A V I E S

S T R E E T

D A V I E S

S T R E E T

D A V I E S

S T R E E T

O X F O R D

S T R E E T

W E I G H H O U S E

S T R E E T

FOURTH FLOOR

S T R E E T

S T R E E T

75 Davies Street Floor Plans

O X F O R D

W E I G H H O U S E

S T R E E T

S T R E E T

THIRD FLOOR

O X F O R D

S T R E E T

W E I G H H O U S E

S T R E E T

SECOND FLOOR

FIRST FLOOR

West One Oxford Street frontage

W E S T O N E & 75 D A V I E S S T R E E T LO N D O N W 1

Tenure The property is held by way of a long leasehold interest from The Grosvenor Estate. The headlease is for a term of 129.5 years from 19 June 1981 and expiring 25 December 2110, providing approximately 95.50 years unexpired. The head rent payable is calculated on the basis of 11% of the rents (rental income, service charge income, insurance and other income) receivable less permissible deductions, subject to a minimum head rent of £120,560 per annum. The lease is drawn on full repairing and insuring terms.

The principal permissible deductions under the headlease include: • Building Maintenance • Security • Professional Fees • Empty Rates • Service Charge Costs.

The table below shows a summary of the last two years of head rent payments. A copy of the head lease is available in the data room.

Year ending September 2012

Year ending September 2013

Year ending September 2014

Year ending September 2015 Forecast

Total Gross Income

£7,570,204

£8,039,936

£7,506,812

£9,115,534

Total Permitted Deductions

£1,024,640

£1,644,670

£1,734,998

£1,575,921

Total Gross Income Less Permitted Deductions

£6,545,564

£6,395,266

£5,771,814

£7,539,613

Head Rent Payable (11% of Total Gross Income Less Permitted Deductions)

£720,012

£703,479

£634,900

£829,357

Actual Head Rent Payable to The Grosvenor Estate (% of total income)

9.51%

8.75%

8.46%

9.10%

The property is multi-let to 26 retail tenants and four office tenants, providing a total gross rent of £9,655,243 per annum

N.B. Not to scale. For indicative purposes only.

Tenancy The property is multi-let to 26 retail tenants and four office tenants, providing a total gross rent of £9,655,243 per annum. The retail element produces £7,619,328 per annum 77% of the total rent and the office element produces £2,035,915 per annum 21% of the total rent, reflecting an average rent of £44.72 per sq ft. The remaining income is generated from miscellaneous sources.

The estimated current net passing income is £8,793,728 per annum, calculated by deducting the latest audited headrent payment and the landlord shortfalls.

The average unexpired term to lease expiry is 6.70 years and 71% of the income is secured against major national and international retailers.

A detailed schedule of tenancies is set out overleaf.

33

W E S T O N E & 75 D A V I E S S T R E E T LO N D O N W 1

Tenancy Schedule Unit

Tenant

Terms

Breaks

Start Date

Expiry Date

Next Review

Areas NIA sq ft

ITZA

RETAIL G1 - 2

Toy Store

21/04/2015

20/04/2025

21/04/2020

-

23,404

1,748

G3

Simit Sarayi UK Limited

30/06/2014

29/06/2024

30/06/2019

-

991

725

G4-G6

Boots The Chemists Ltd

27/06/2009

26/06/2019

-

-

2,584

1,889

G7

Wasabi Co Ltd

12/08/2010

11/08/2020

12/08/2015

-

465

383

Wasabi Storage

Wasabi Co Ltd

12/08/2010

11/08/2020

12/08/2015

-

58

-

G8 - G9 / C5 - C6

McDonalds Restaurants Limited

29/09/1996

28/09/2021

29/09/2016

-

1,951

717

Part of Concourse

McDonalds Restaurants Limited

06/02/2012

28/09/2021

29/09/2016

-

204

-

G7A

Cinnabon Bond Street Limited

13/09/2013

01/06/2016

-

-

51

-

G10

Sweet Ventures (t/a Cards Galore)

25/12/1999

24/12/2014

-

-

688

542

G11

London Time Retail Ltd

24/06/2010

23/06/2020

24/06/2015

-

633

484

G12

Simit Sarayi UK Limited

10/02/2015

09/02/2020

-

-

583

451

G13

Starbucks Coffee Company UK Ltd

30/07/2007

29/07/2017

-

-

637

482

G14

Health & Diet Centres Ltd (t/a GNC)

24/06/2013

23/06/2023

24/06/2018

-

915

626

G15

Pret A Manger (Europe) Ltd

29/09/2013

28/09/2028

29/09/2018

-

1,666

959

Mall CafĂŠ

Pret A Manger (Europe) Ltd

29/09/2013

28/09/2028

29/09/2018

-

613

-

Turnover

Pret A Manger (Europe) Ltd - Turnover

29/09/2013

28/09/2028

23/06/2015

-

-

-

G16

City Kiosks Ltd (t/a Sweet Express)

04/09/2011

03/09/2016

-

-

70

-

ATM Adjacent to G1/G2

International Currency Exchange Plc

18/03/2014

17/03/2019

-

-

-

-

Kiosk 13A

Mobile Presentations Limited (t/a Apples and Berries)

16/03/2011

15/03/2021

16/03/2016

-

89

-

Fire Escape for new Co

T Mobile (UK) Limited

29/08/2008

03/09/2022

29/08/2015

-

-

-

Mini Booth

Photo Me

21/05/2014

20/05/2015

-

-

-

-

C1 - C4

Select Service Partner UK Ltd (t/a M&S Simply Food)

30/07/2004

29/07/2019

30/07/2014

-

2,626

1,856

Storage

Select Service Partner UK Ltd (t/a M&S Simply Food)

08/08/2007

29/07/2019

30/07/2014

-

345

-

C8

Regis UK Limited (t/a Supercuts)

29/09/2007

28/09/2017

-

-

576

405

C9 - C11

Superdrug Stores Plc

25/03/2006

24/03/2021

25/03/2016

-

2,719

1,594

C12

Holland & Barrett Ltd

06/04/2007

05/04/2017

-

-

2,153

1,377

C13

Fresh Collections Ltd

04/09/2011

03/09/2016

-

-

268

268

Rent per annum

Analysis

£3,100,000

ERV

Landlord Shortfall

Comments

Per annum

Analysis

£825.00

£3,100,000

£825.00

-

6 months rent free. In addition Toy Store receives an additional 5 weeks rent free for landlord strip out works and a landlord’s contribution of £268,504 for the cost of these works.

£725,000

£889.00

£725,000

£889.00

£3,288

12.50% benefit for return frontage and dual entrance. The vendor benefits from a guarantee in the form of a Standby Letter of Credit from Commerzbank to the sum of £895,656. Service Charge capped at £21,380 per annum plus RPI.

£537,500

£344.89

£584,500

£375.00

£3,268

17.5% discount for shape and frontage to depth.

Service Charge capped at £59,290 per annum.

£110,000

£312.07

£132,000

£375.00

-

Contracted outside the Landlord & Tenant Act 1954.

5% discount for shape and 3% for Outside the 1954 Act.

£1,392

-

£1,392

-

-

Storage included in lease for G7.

£228,500

£263.50

£254,000

£293.00

-

Combined with concourse unit. 7.5% discount for shape and masking

£25,000

-

£30,000

-

-

-

£19,000

£372.55

£22,000

£431.00

-

Contracted outside the Landlord & Tenant Act 1954.

£187,000

£284.79

£203,000

£375.00

£1,000

Tenant holding over, negotiations ongoing. Landlord has served Calderbank at a rent of £187,000 per annum. Service Charge capped at £18,117.23 per annum.

£138,000

£285.00

£181,500

£375.00

£852

Service Charge capped at £15,428 per annum.

£180,000

£409.17

£180,000

£409.17

-

Contracted outside the Landlord & Tenant Act 1954. 2.5% discount for Outside the 1954 Act. Rent stepped at £90,000 per annum from 10 February 2015 for 1 year then £180,000 for the remainder of the term. Vendor to top up income to £180,000 per annum. The vendor benefits from a guarantee in the form of a Standby Letter of Credit from Qatar National Bank to the sum of £235,549.20.

£153,000

£317.43

£180,750

£375.00

-

-

£202,500

£323.62

£234,750

£375.00

-

-

£330,000

£327.61

£377,500

£375.00

-

5% benefit for return frontage.

£53,665

£87.54

£60,000

£97.87

£4,472

£8,245

-

£8,245

-

-

10% turnover top up payable annually for year ending June.

£60,000

£857.14

£60,000

£857.14

-

-

£12,000

-

£12,000

-

-

Turnover Rent at £0.07p for each transaction in excess of 171,429 transactions.

£65,000

£730.34

£65,000

£730.34

-

-

£11,399

-

£11,399

-

-

-

£2,500

-

£2,500

-

-

Commission payable at 33% of turnover greater than rent of £2,500.

£350,000

£173.70

£366,000

£200.00

-

24% discount for shape and location.

Outstanding rent review assumes settlement at £350,000 up from £260,000 per annum.

£9,000

£26.09

£9,000

£26.09

-

-

£77,850

£240.06

£87,750

£260.00

£1,225

£298,000

£205.24

£418,000

£260.00

-

Additional area of 340 sq ft mezzanine store at £10.26 per sq ft included in devaluation.

£306,750

£240.75

£333,000

£260.00

-

7.5% discount for shape and frontage to depth.

£70,000

£283.91

£70,000

£283.91

-

Contracted outside the Landlord & Tenant Act 1954.

3.0% discount for Outside the 1954 Act and 5.0% discount for lack of storage.

Service Charge capped at £6,135.47 per annum plus RPI.

20% discount for location. Service Charge capped at £14,193 per annum.

35

W E S T O N E & 75 D A V I E S S T R E E T LO N D O N W 1

Tenancy Schedule Unit

Tenant

Terms

Breaks

Start Date

Expiry Date

Next Review

Areas NIA sq ft

ITZA

RETAIL C14

Signature Blow Hairport Limited (t/a Hairport)

22/08/2014

21/08/2019

-

22/08/2015 Mutual rolling break 6 months notice.

254

254

Kiosk 13C

Lenlyn Limited (t/a International Currency Exchange)

24/05/2010

23/05/2020

24/05/2015

23/05/2015 Mutual rolling 6 months notice.

-

-

Ticket Booth

Encore Tickets Ltd

04/09/2014

03/09/2015

-

Rolling tenant 1 month notice.

-

-

Kiosk 13B

Anjum Kamal Malik (t/a Xcess Accessories)

24/12/2005

23/12/2015

-

-

-

-

Kiosk 13D

The Watch Surgery

24/12/2010

23/12/2020

24/12/2015

24/12/2015 Landlord 6 months notice.

-

-

P4

Mei Tak Cho (t/a Perme Jewellery)

14/01/2015

13/01/2017

-

14/01/16 Mutual rolling 1 month notice.

-

-

Digital Box

Vodafone

06/06/2007

05/06/2012

-

-

-

-

Digital Pod 1 and 2

Vision Media Group UK Limited Turnover

12/03/2010

11/03/2015

-

-

-

-

Substation

The London Electricity Board

25/03/1980

24/03/2079

-

-

-

-

Mall

Mall Income (Commercialisation)

-

-

-

-

-

-

Marketing Budget

Landlord Contribution

-

-

-

-

-

-

Sub Total

44,543

Office Office Level 1

Instant Managed Offices Ltd

01/09/2010

30/11/2018

01/09/2015

01/12/2017 Tenant.

13,098

-

Office Level 2 East

Instant Managed Offices Ltd

04/05/2011

07/09/2017

31/12/2015

31/12/2015 Mutual.

31/12/2016 Mutual.

9,837

-

Office Level 2 West

Instant Managed Offices Ltd

10/07/2012

07/09/2017

31/12/2015

31/12/2015 Mutual 31/12/2016 Mutual.

3,311

-

Office Level 3 East

P/S/L Group Europe Ltd

27/04/2010

26/04/2020

27/04/2015

-

9,787

-

Office Level 3 West

Dangote Global Services Ltd

11/07/2008

10/07/2018

-

-

3,307

-

Office Level 4

Adams Street Partners UK LLP

08/04/2011

07/04/2021

08/04/2016

07/04/2016 Tenant.

6,182

-

Sub Total

45,522

GROSS TOTAL

90,065

Rent per annum

Analysis

£37,500

ERV

Landlord Shortfall

Comments

Per annum

Analysis

£334.34

£75,000

£334.34

-

Contracted outside the Landlord & Tenant Act 1954. 12.5% discount for column, configuration and for Outside the 1954 Act. 24 sq ft remote storage included in the lease. Stepped rent at £37,500 per annum until 21/08/2015 and £75,000 thereafter.

Tenant has issued their notice to break, effective 22/08/2015.

£50,000

-

£50,000

-

-

Assigned from Thomas Cook 30th April 2013.

£22,000

-

£22,000

-

£2,452

Rent inclusive of Service Charge and Insurance.

£36,450

-

£36,450

-

-

-

£63,000

-

£63,000

-

-

-

£36,400

-

£36,400

-

£1,601

£3,000

-

£3,000

-

-

£400 charge for electricity in Q2 each year. Renewal in legals.

£9,677

-

£9,677

-

-

Turnover is 30% of Net Revenue. Renewal ongoing.

Tenant holding over on passing terms.

-

-

-

-

-

-

£100,000

-

£100,000

-

-

-

-

-

-

-

£14,000

£7,619,328

£8,104,813

Monthly Payments. Stepped rent as follows January to October £700 per week, November £750 per week, December £800 per week.

Rent inclusive of Service Charge and Insurance.

Landlord currently funds 50% of the marketing budget.

£32,158

Refurbished ERV £491,175

£37.50

£1,211,565

£92.50

-

Sublet to London Underground Limited, rent commencement of 01/12/11 to 31/8/2015 at £491,175 per annum. Service charge Cap of £130,980 per annum.

Upwards only rent review, capped at £785,880 per annum (£60.00 psf). Tenant break requires 6 months notice. Contracted outside the Landlord & Tenant Act 1954.

£442,170

£44.95

£934,515

£95.00

-

Service Charge On Account is 75% of rent as shown under terminated tenancy Ref: 58716. Service Charge is capped £98,260.00 pa until the 30/09/2011 then increased with RPI. Reversionary lease in place from 31/12/2015. Mutual break requires 6 months notice. Contracted outside the Landlord & Tenant Act 1954.

£180,400

£54.49

£314,545

£95.00

-

Service Charge is capped £32,800.00 pa until the 30.09.2011 then increased with RPI. Mutual break requires 6 months notice. Contracted outside the Landlord & Tenant Act 1954.

£440,145

£44.97

£978,700

£100.00

-

Contracted outside the Landlord & Tenant Act 1954.

Outstanding rent review.

£172,725

£52.23

£330,700

£100.00

-

Contracted outside the Landlord & Tenant Act 1954.

£309,300

£50.03

£618,200

£100.00

-

Tenant break requires 6 months notice.

Contracted outside the Landlord & Tenant Act 1954.

£2,035,915

£4,388,225

£9,655,243

£12,493,038

£32,158

37

W E S T O N E & 75 D A V I E S S T R E E T LO N D O N W 1

Income Analysis INCOME BY USE

13.94%

3.74%

21%

Rent (per annum)

% of Total Income

Retail

£7,619,328

79%

Offices

£2,035,915

21% 48.52% 100%

TOTAL

£9,655,243 33.81%

79%

INCOME EXPIRY 3.74%

Rent (per annum)

% of Total Income

6 Years +

£4,684,309

48.52%

3-5 Years

£3,264,737

33.81%

1-3 Years

£1,345,570

13.94%

£360,627

3.74%

£9,655,243

100%

Less the 1 Year Total

13.94%

48.52%

33.81%

TOP 10 TENANTS Tenant

21%

Per annum

% of Total Income

Toy Store

£3,100,000

32.11%

Instant Managed Offices Ltd

£1,113,745

11.54%

Simit Sarayi UK Limited

£905,000

9.37%

Boots The Chemists Ltd

£537,500

5.57%

P/S/L Group Europe Ltd

£440,179% 45

4.56%

Pret A Manger (Europe) Ltd

£391,910

4.06%

Select Service Partner UK Limited (t/a M&S Simply Food)

£359,000

3.72%

Adams Street Partners UK LLP

£309,300

3.20%

Holland & Barrett Ltd

£306,750

3.18%

Superdrug Stores Plc

£298,000

3.09%

Remainder

£1,893,893

19.62%

£9,655,243

100%

Total

19.62% 32.11% 3.09% 3.18% 3.20% 3.72% 4.06% 11.54%

4.56% 5.57%

9.37%

Footfall

Service Charge

As part of the Crossrail works the Central line did not stop at Bond Street Station between April and June 2014 and the Jubilee line did not stop between July and December 2014. As a consequence there was a drop in customer footfall over these periods. The table below shows the footfall over the last three years.

2012

2013

2014

19,478,758

21,749,462

17,755,423

The operating cost of West One Shopping Centre & 75 Davies Street is covered by a comprehensive service charge managed by the centre management team. The current service charge year ends 30th September 2015.

The costs are apportioned on a floor area basis. The total service charge for the year ending 30th September 2015 is £1,290,278 equating to £19.83 per sq ft (retail) and £7.57 per sq ft (offices).

The service charge budget is operated under two schedules: Schedule 1: West One Shopping Centre Schedule 2: 75 Davies Street Offices

Centre Management A dedicated on site management team comprises two full time employees consisting of a Centre Manager and an Operations Manager, each is employed directly by JLL. It is anticipated the onsite team will be transferred under TUPE arrangement.

The current service charge budget together with the service charge for the last three years is set out below.

Year

Total

Schedule 1 (West One Shopping Centre)

Schedule 2 (75 Davies Street Offices)

2015 (budget)

£1,290,278

£945,341

£344,937

2014 (expenditure)

£1,172,652

£837,111

£335,541

2013 (expenditure)

£1,243,513

£906,515

£336,998

2012 (expenditure)

£1,124,507

£828,425

£296,082

The marketing budget for the year ending 30th September 2015 is £28,000 and is payable under Schedule 1. In line with approved property management practice, the Landlord currently funds 50% of the marketing budget. www.west1shopping.co.uk

39

W E S T O N E & 75 D A V I E S S T R E E T LO N D O N W 1

Retail Tenant Covenants Boots The Chemists Ltd Ground Floor – Unit G4 /G6 Passing rent: £537,500 per annum (6% of total income) D&B Credit Rating H2 Boots was first founded in 1849. Boots now has over 2,500 stores ranging from local community pharmacies to large destination health and beauty stores. In December 2014, Walgreens Alliance Boots was created through the combination of Walgreens and Alliance Boots.

Boots UK Ltd has filed the following accounts over the last three years: 31 Mar 2014

31 Mar 2013

31 Mar 2012

£6,340,000,000

£6,204,000,000

£6,354,000,000

Pre-tax Profit

£507,000,000

£452,000,000

£240,000,000

Net Worth

£456,000,000

£430,000,000

£234,000,000

Total Assets Less Current Liabilities

£1,944,000,000

£2,076,000,000

£1,916,000,000

Turnover

Toy Store Ground Floor and First Floor – Unit G1/G2

For more information please visit www.boots-uk.com

Passing rent: £3,100,000 per annum (32% of total income) D&B Credit Rating H2 The vendor benefits from a rent deposit of £6,200,000 (2 years rent) The Toy Store was first established in 2004, the store is completely dedicated to toys and other children’s products. They currently have stores in the top shopping malls in UAE, Bahrain, Oman and Qatar. The Toy Store is currently expanding in the UK, Turkey and Morocco.

For more information please visit www.thetoystore.com

Simit Sarayi UK Limited Ground Floor – Unit G3 and Unit G12 Passing rent: Unit G3 of £725,000 per annum and unit G12 £180,000 per annum and combined total of £905,000 (9% of total income)

Pret A Manger (Europe) Ltd Ground Floor – Unit G15 and Mall Café Passing rent: £391,910 per annum including turnover (4% of total income) D&B Credit Rating 5A1 In 1986, Pret A Manger opened its first store in London. Pret a Manger has since grown over the last 30 years with over 350 units worldwide with locations in the UK, USA, Paris, Hong Kong and Shanghai.

Pret A Manger (Europe) Ltd has filed the following accounts over the last three years:

Turnover

2 Jan 2014

3 Jan 2013

29 Jan 2011

£404,140,000

£360,015,000

£316,926,000

£41,157,000

£40,187,000

£34,643,000

D&B Credit Rating O3

Pre-tax Profit

The vendor benefits from a guarantee in the form of a Standby Letter of Credit from Commerzbank to the sum of £895,656 against the lease on unit G3 and Qatar National Bank to the sum of £235,549.20 against the lease on G12.

Net Worth

£221,869,000

£184,244,000

£151,739,000

Total Assets Less Current Liabilities

£236,433,000

£206,835,000

£175,569,000

Established in Turkey in 2002, they have branches in 14 countries worldwide. With over 6,500 employees Simit Sarayi is looking to expand their business worldwide.

For more information please visit www.simitsarayi.com

For more information please visit: www.pret.co.uk

Select Service Partner UK Ltd (t/a M&S Simply Food) Lower ground – Unit C1/C4 Passing rent: £359,000 per annum (4% of total income) D&B Credit Rating H1 A leading operator of branded food and beverage outlets in travel locations across 29 countries, Select Service Partner has 20 brands which includes M&S Simply Food, Burger King, Starbucks and Millies Cookies.

Select Service Partner specialises in travel spots such as airports and rail stations around the globe.

Select Service Partner UK Ltd has filed the following accounts over the last three years: 25 Sep 2013

26 Sep 2012

28 Sep 2011

£603,120,000

£574,474,000

£548,082,000

£6,803,000

(£1,636,000)

£4,769,000

Net Worth

£145,548,000

£126,700,000

£116,291,000

Total Assets Less Current Liabilities

£293,311,000

£285,211,000

£287,382,000

Turnover Pre-tax Profit

For further information please visit www.foodtravelexperts.com

Holland & Barrett Ltd Lower Ground – Unit C12 Passing rent: £306,750 per annum (3% of total income) D&B Credit Rating 2A1 Holland & Barrett Ltd has been established since 1920 with stores located in almost every major city and town across the United Kingdom and Ireland, where they operate over 620 outlets. Holland & Barrett is considered to be UK’s largest health food retailer.

Holland & Barrett Ltd has filed the following accounts over the last three years: 28 Dec 2013

29 Dec 2012

31 Dec 2011

Turnover

£349,637,000

£335,286,000

£307,766,000

Pre-tax Profit

£84,309,000

£74,421,000

£56,966,000

Net Worth

£251,454,000

£193,650,000

£134,681,000

Total Assets Less Current Liabilities

£258,798,000

£194,924,000

£135,784,000

For more information please visit www.hollandandbarrett.com

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Retail Tenant Covenants Superdrug Stores Plc Lower ground – Unit C9/C11 Passing rent: £298,000 per annum (3% of total income) D&B Credit Rating 5A1 Superdrug was first incorporated in 1964. Superdrug is owned by a Hong Kong based company and is currently the second largest beauty and health retailer, operating over 800 stores in the UK and Republic of Ireland.

Superdrug has filed the following accounts over last three years: 28 Dec 2013

29 Dec 2012

31 Dec 2011

£1,010,212,000

£1,021,021,000

£1,049,128,000

£28,982,000

(£3,977,000)

£5,517,000

Net Worth

£122,235,000

£106,905,000

£124,652,000

Total Assets Less Current Liabilities

£160,983,000

£141,342,000

£151,109,000

Turnover Pre-tax Profit

For more information please visit www.superdrug.com

McDonald’s Restaurants Limited Ground & Lower ground - Unit G8/G9 & C5/C6 Passing rent: £253,500 per annum (3% of total income) D&B Credit Rating 5A1 McDonalds opened its first doors in the UK in 1974 and now they have over 1,200 restaurants operating throughout the UK. McDonald’s is the world’s largest chain of hamburger fast food restaurants having presence in 119 countries.

McDonald’s Restaurant Limited has filed the following accounts over the last three years: 31 Dec 2013

31 Dec 2012

31 Dec 2011

Turnover

£1,497,573,000

£1,317,594,000

£1,248,549,000

Pre-tax Profit

£244,885,000

£202,214,000

£176,563,000

Net Worth

£799,006,000

£643,048,000

£461,298,000

Total Assets Less Current Liabilities

£846,975,000

£690,446,000

£530,087,000

For further information please visit www.mcdonalds.co.uk

Office Tenant Covenants Instant Managed Offices Ltd

Dangote Global Services Ltd

Office levels 1 & 2

Office level 3 West

Passing Rent: £1,113,745 (12% of total income)

Passing Rent: £172,725 (2% of total income)

D&B Credit Rating N3

D&B Credit Rating O3

Instant Managed Offices is an office provider which manage office space for clients, from sourcing the building, to providing space planning and fit out services, on-going facilities management. Instant Managed Offices Ltd’s immediate and global parent company is Instant Offices (BIDCO) Ltd.

The Dangote Group is one of the most diversified business conglomerates and is the largest industrial conglomerate in West Africa, with its operational headquarters in Lagos, Nigeria in West Africa.

Established in May 1981 as a trading business with an initial focus on cement, the Group diversified over time into a conglomerate trading cement, sugar, flour, salt and fish.

For more information please visit www.instantoffices.com

For more information please visit www.dangote.com

P\S\L Group Europe Ltd

Adams Street Partners UK LLP

Office level 3 East

Office level 4

Passing Rent: £440,145 (5% of total income)

Passing Rent: £309,300 (3% of total income)

D&B Credit Rating A2

D&B Credit Rating 1A1

The vendor benefits from a rent deposit of £301,136.64 P\S\L Group is a global organisation dedicated to providing information to the medical industry. P\S\L Group aims to improve medical care and their clients include pharmaceutical companies and other healthcare institutions who seek the advancement of medicine. Their primary business purpose is to increase the effectiveness, as well as lower the cost of activities pertaining to scientific communication, medical education, or product/service marketing.

P\S\L Group has filed the following accounts over the last three years:

31 Dec 2013

31 Dec 2012

31 Dec 2011

Turnover

£4,814,871

£16,774,064

£17,096,537

Pre-tax Profit

£95,522

£3,291,502

-£1,463,068

Net Worth

£457,057

£361,520

-£2,929,982

Total Assets Less Current Liabilities

£457,057

£361,520

-£3,358,112

Adam Street Partners was founded in 1972 with a sole focus on private equity and investment management. Originally based in Chicago, the company has grown to now operate in six locations around the world, with investments across more than 30 nations and assets under management of more than $26 billion.

Adams Street Partners has filed the following accounts over the last three years:

31 Dec 2013

31 Dec 2012

31 Dec 2011

Turnover

£9,188,000

£8,817,000

£8,317,000

Pre-tax Profit

£1,202,000

£1,157,000

£1,092,000

Net Worth

£1,323,000

£1,567,000

£1,332,000

Total Assets Less Current Liabilities

£993,000

£1,148,000

£835,000

For more information please visit www.adamsstreetpartners.com

For more information please visit www.pslgroup.com

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Occupational Market Overview Retail Retailer demand on Oxford Street remains strong. During 2014 there were 19 new lettings on Oxford Street which included Omega, Watches of Switzerland, JD Williams, Lush, Sports Direct and JD Sports.

In 2014 record rents on Oxford Street were achieved at over £825 Zone A and it is anticipated in 2015 top rents will reach and exceed £900 Zone A. The proposed extension of Selfridges coupled with the proposed developments are generating significant occupier interest from both domestic and international retailers.

JLL considers the property to be highly reversionary. The latest letting within West One is the flagship letting to Toy Store. The analysis of this transaction shows a Zone A rate of £825 per sq ft.

The most recent transaction within the scheme at ground floor level is unit G12 which reflects a Zone A rate of £400 per sq ft, and at concourse level, the latest transaction is the open market letting to Signature Blow in unit C14 which reflects £334 per sq ft.

The significant pent up tenant demand for prime retail units within the West End presents strong rental growth prospects for West One. The most recent transactions on Oxford Street in close proximity include: Address

Tenant

Rent

Date

386 Oxford Street

Doc Martens

£865 Zone A

Feb 2015

287-291 Oxford Street

New Balance

£810 Zone A

Jan 2015

388 Oxford Street

TM Lewin

£850 Zone A

Dec 2014

439 Oxford Street

Watches of Switzerland

£950 Zone A

Nov 2014

451 Oxford Street

Omega

£814 Zone A

Sep 2014

Office Strong rental growth has been experienced in all of the West End sub-markets, most notably Mayfair. With an occupational demand of 207,000 sq ft in Mayfair and restricted supply, a trend of pre-letting activity and competitive bidding tension for space has caused a dramatic rise in rents over the past 18 months.

Evidence of this can be seen in the table below, most notably 33 Davies Street (50 yards to the south), which recently achieved £120 per sq ft. As a result, this has driven the prime Mayfair rent to £117.50 per sq ft.

Below is a list of the key transactions which have taken place within Mayfair: Address

Demise

Tenant

Total Area (sq ft)

Achieved rent (per sq ft)

Date

33 Davies Street, W1

1st-2nd

AGC

11,779

£115.00

Dec-14

13 Curzon Street, W1

Basement-5th

Executive Offices Group Ltd (LEO)

10,568

£126.05

Nov-14

33 Davies Street, W1

3rd

Troy Asset Management

6,007

£120.00

Nov-14

50 Berkeley Street, W1

8th

Salamanca Capital

11,060

£110.00

Jul-14

In 2014 the Mayfair submarket witnessed 404,000 sq ft of take up, 21% above the level witnessed during 2013 in line with the 10 year average. With restricted new development coming to the market, the current vacancy rate for Mayfair has been reduced to 3.6%, substantially below 8.00% peak witnessed in 2009.

Further to this, there is only approximately 770,000 sq ft of development planned to be completed in the prime West End market between now and 2019.

Compared to an average take up of 400,000 sq ft per annum, there is a forecasted shortage of supply going forward. With the completion of Crossrail nearing, occupational demand is anticipated to increase. It is expected that this lack of new development will result in higher levels of pre-letting activity and even stronger prospects for rental growth going forward.

Investment Market London is the most globally sought after destination for international real estate capital. In 2014 the West End reached trade volumes of £5.9 billion, the fourth highest on record and 64% of which was fuelled by overseas capital, with investors attracted by low interest rates, high liquidity, transparency and the long term wealth preservation that London offers.

With an improving economic environment, a strengthening occupational market and restricted occupational supply, total investment volumes are predicted to be in line with 2014 levels. Q1 2015 investment volumes totalled £862 million over 19 transactions, close to double the volume recorded in the same period in 2014. Approximately £20 billion of equity is known to be targeting high quality assets within the West End, in particular those located in core growth locations such as West One and 75 Davies Street.

Property

Date

Tenure

Price

Yield

105 - 109 Oxford Street, W1

Q2 2015

Freehold

£43.00

2.48%

95 Wigmore Street, W1

Q2 2015

Freehold

£222.40

3.44%

Mutual House, W1

Q1 2015

Long Leasehold

£85.50

3.29%

175 - 179 Oxford Street, W1

Q1 2015

Freehold

£58.00

2.43%

The Brunswick Centre, WC1

Q4 2014

Freehold

£135.50

3.73%

22 Hanover Square, W1

Q2 2014

Freehold

£155.00

3.35%

110 Park Street, W1

Q2 2014

Long Leasehold

£34.75

3.15%

21 - 22 Grosvenor Street, W1

Q1 2014

Long Leasehold

£20.58

3.65%

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Asset Management Initiatives RETAIL

UPGRADE OF ESCALATORS

Short Term Asset Management Initiatives

The escalators have come to the end of their serviceable life and are in need of refurbishment. A full tendering process and service charge budgeting has been undertaken in order to upgrade the three main mall to concourse escalators in the scheme on a phased basis.

• Mall atrium infill - Opportunity to create additional mall trading floor space, by infilling area surrounding the escalator void.

• Kiosk on Davies Street - Re-open existing kiosk unit fronting Davies Street.

• Davies Street entrance - Opportunity to part infill and provide additional floor space for Pret A Manger who has expressed an interest in upsizing.

• Entrance upgrades for Toy Store Landlord obligation under lease terms with Toy Store, agreed plans and costs contained in the data room.

• Wayfinding & re-branding - To improve the visibility and navigation in the scheme, which will benefit significantly in line with the 2018 Crossrail opening.

• Digital Income - Opportunity to create a digital platform both internally in the escalator void as a wrap around and also on the Oxford Street entrance overhang.

Medium Term Initiatives • Holland & Barrett store expansion Crystallise ongoing discussions with Holland & Barrett who wish to upsize.

Further details included in the data room.

The extent of the works and costing is fully documented and contained within the data room.

In summary the project requires completing an in-truss refurbishment where the existing escalators will be stripped back to the bare steel truss and new equipment installed within the existing confines of the original escalator truss.

The Total Project Cost breakdown is as follows, costs are fully service charge recoverable: Escalator Upgrade Sub Total

£434,468 ex VAT

Project Management Fee Sub Total

£30,000 ex VAT

Contingency Sub Total

£10,000 ex VAT

TOTAL COSTS

£474,468 ex VAT

OFFICE • Work towards achieving vacant possession upon lease expiries and break options in 2015-2021.

• The rent reviews in 2015 provide an immediate opportunity to increase the office passing rents, which JLL views as reversionary.

• Implement a comprehensive refurbishment of the offices, once part or full vacant possession is obtained. The completion of Crossrail in 2018 will enhance the rental reversion.

The contractor ThyssenKrupp will provide a 2 year guarantee.

• McDonalds store expansion - McDonalds require an increased dining area and have expressed strong interest in expanding into the Supercut store in addition to part of the mall.

These works have been competitively tendered, Dunbar & Boardman have been appointed project manager and will oversee the project.

• Buy in Boots Oxford St frontage - To realise the benefit of Marriage Value by combining the two existing retail units.

It is proposed the purchaser who will inherit the contract of works with ThyssenKrupp and the supporting contract in place with project manager with Dunbar & Boardman.

The costs of the works are being phased over 7 years in the service charge budget at a rate of £60,000 per annum commencing in 2014/2015.

Opportunity to refurbish both office and retail space, to realise an uplift in the passing rents

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Planning The property is not listed and is not situated in a Conservation Area.

Immediately to the south of the subject property the Crossrail site is currently under construction with an estimated completion date of 2018. As part of the Crossrail development a number of public realm works are being undertaken to enhance the immediate vicinity.

Capital Allowances Capital allowances are available. Full information is available upon request.

VAT The property is elected for VAT purposes.

EPC

Transaction Structure Our client holds the property in an existing JPUT structure, which is available for purchase. Further details can be provided upon request.

Proposal For the benefit of our client’s valuable 95.50 year leasehold interest we are instructed to seek offers in excess of £240,000,000 (Two Hundred and Forty Million Pounds) subject of contract and exclusive of VAT, to reflect a net initial yield of 3.46% and an equivalent yield of 4.18% assuming standard purchasers costs of 5.80%.

Energy Performance Certificates are available upon request.

Dataroom www.westone-london.co.uk

Contacts OFFICE

RETAIL

Damian Corbett Tel: +44 (0)207 399 5286 Email: damian.corbett@eu.jll.com

Richard Brown Tel: +44 (0)20 7318 7818 Email: richard.brown@eu.jll.com

Tim Graham Tel: +44 (0)207 852 4239 Email: tim.graham@eu.jll.com

James Bramble Tel: +44 (0)20 7399 5411 Email: james.bramble@eu.jll.com

Richard Mass Tel: +44 (0)207 852 4354 Email: richard.mass@eu.jll.com

MISREPRESENTATION ACT 1967 | DISCLAIMER COPYRIGHT © JONES LANG LASALLE IP, INC. 2015. All rights reserved.

Jones Lang LaSalle Limited for themselves and for the vendor of this property whose agents they are give notice that: a) The particulars are set out as general outline only for the guidance of intending purchasers and do not constitute, nor constitute part of, an offer or contract. b) All descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. c) No person in the employment of Jones Lang LaSalle Limited has any authority to make or give any representation or warranty whatever in relation to these properties. d) All plans, maps and photographs provided are for indicative purposes only. May 2015.

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