CHANCERY EXCHANGE

CHANCERY EXCHANGE
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P R I M E M I D T O W N M U LT I L E T F R E E H O L D I N V E S T M E N T
CHANCERY EXCHANGE
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INVESTMENT SUMMARY
CHANCERY EXCHANGE
• Prime office investment situated in the heart of Midtown just off Holborn.
• Freehold.
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• High specification, modern office building redeveloped behind a retained listed
façade in 2003.
• Net internal area of 7,572.7 sq m (81,513 sq ft).
• Multi-let to 7 office tenants including Arcadis AYH plc, Aerion Fund Management
Limited and Gardiner & Theobald Fairway Limited.
• Lease expiries/breaks ranging between 2011-2019
• Total income £2,749,112 pa equating to an average passing rent of £33.72 per sq ft
overall.
• Substantial unclaimed capital allowances are available
• Offers in excess of £35 million reflecting a net initial yield of 7.43% assuming
purchaser’s costs of 5.75%.
• Low capital value of only £429 per sq ft.
CHANCERY EXCHANGE
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Not to scale. Indicative only
LO C AT I O N
Chancery Exchange is situated in a prime Midtown
location in one of Central London’s most rapidly
expanding commercial districts. The property lies
on the west side of Furnival Street, approximately
50 metres south of High Holborn.
Midtown lies equidistant between the City and
the West End at the core of London’s commercial
district. The easy accessibility to public transport
provides tenants with excellent connectivity through
Central London. This together with the high
quality accommodation in the immediate area
has established Midtown as a first class Central
London office destination.
Communications are excellent with Chancery
Lane Underground Station (Central line) situated
approximately 50 metres north of the property
whilst Farringdon (Mainline, Circle, Metropolitan
and Hammersmith & City lines) and City Thameslink
(Mainline) are all within a short walking distance.
Farringdon station will become one of the new
Crossrail stations as part of the overall £16 billion
Crossrail scheme. Completion is expected in 2017
and is set to provide a fast, high capacity east-west
link through Central London between Maidenhead
in the west to Shenfield in the east, connecting
Heathrow Airport directly to Central London.
The area boasts an impressive occupier base popular
with UK and international organisations including
financial, accounting, legal and professional industries.
Major corporate occupiers include Goldman Sachs,
J Sainsbury Plc, Deloitte, BBC, EDF Energy and
Lovells. Government bodies, regulatory authorities
and educational institutions are also strongly
represented.
CHANCERY EXCHANGE
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The completion of a number of major developments
close by has further enhanced the Midtown occupier
base. Land Securities have completed and fully let
New Street Square providing approximately
700,000 sq ft of office and 30,000 sq ft of retail
accommodation. In addition Delancey and Invista
have pre-let 185,000 sq ft at Rolls Buildings, Fetter
Lane to Her Majesty’s Court Service as the new
Supreme Court which will be completed later
this year.
NEW
STREET
SQUARE
J SAINSBURY HQ
HOLBORN
CIRCUS
ROYAL
COURTS OF
JUSTICE
ROLLS
BUILDING
CHANCERY EXCHANGE
5
CHANCERY
LANE
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LINCOLN’S
INN FIELDS
CHANCERY EXCHANGE
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DESCRIPTION
Chancery Exchange was redeveloped behind
a retained period façade in 2003. The property
comprises approximately 7,572.7 sq m
(81,513 sq ft) of high specification Grade A office
and ancillary storage arranged over basement,
lower ground, ground and four upper floors.
The office specification includes:
Internally the offices provide regular shaped floor
plates principally arranged either side of the main
service core with a feature glass atrium to the
southern section. Fenestration to the front and
rear elevations provide excellent levels of natural
light throughout.
• Four pipe fan coil air-conditioning system.
• Three x 13 person passenger lifts.
• Fully accessible raised floors (ground floor and
above) with minimum 110mm void.
• Impressive façade leading to modern reception
area of steel, glass and polished limestone.
• Typical floor to ceiling height of approximately
2.6m.
• Male and female WC’s on all floors.
• Metal tiled suspended ceiling system with inset
fluorescent Category II lighting.
CHANCERY EXCHANGE
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• 12 basement car parking spaces with car lift
accessed from Furnival Street
CHANCERY EXCHANGE
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CHANCERY EXCHANGE
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A C C O M M O D AT I O N
The accommodation has been measured by Plowman Craven Associates and provides the following
net internal areas:
FLOOR
USE
Fourth
Offices
1,045.9
11,258
Third
Offices
1,249.9
13,454
Second
Offices
1,248.7
13,441
First
Offices
1,247.3
13,426
Offices
1,091.8
11,752
135.0
1,453
Ground
Reception
NET INTERNAL AREA
SQ M
SQ FT
Lower Ground
Offices
1,042.9
11,226
Basement
Storage
511.2
5,503
7,572.7
81,513
TOTAL
C H A N C E R Y E X C H A N G E 10 1 0 F U R N I VA L S T R E E T, LO N D O N E C 4
F LO O R P L A N S
GROUND FLOOR
TYPICAL UPPER FLOOR
Courtyard
WC
WC
Atrium
Atrium
Not to scale. Indicative only
TOOK’S COURT
C H A N C E R Y E X C H A N G E 11 1 0 F U R N I VA L S T R E E T, LO N D O N E C 4
TENURE
The property is held freehold.
Not to scale. For identification purposes only. This plan is based upon the Ordnance Survey Map with the sanction of the controller
of H.M. Stationery Office. Crown Copyright reserved.
C H A N C E R Y E X C H A N G E 12 1 0 F U R N I VA L S T R E E T, LO N D O N E C 4
TENANCY SCHEDULE
TENANT
FLOOR
AREA
SQ M
AREA
SQ FT
Aerion Fund Management Ltd
Part 4th North
581.4
6,258
Gardiner & Theobald Fairway Ltd
Part 4th South
452.9
Ibex Interiors Ltd
Part 3rd North
Burges Salmon LLP
LEASE TERM
RENT PA
(RENT £PSF)
NEXT RENT
REVIEW
BREAK
OPTION
16.06.200515.06.2015
£233,417
(£37.34)
16.06.2010
4,875
07.12.200506.12.2015
£183,556
(£36.66)
07.12.2010
07.12.2010
735.3
7,915
18.05.200717.05.2017
£356,175
(£45.00)
18.05.2012
18.05.2012
Part 3rd South
514.6
5,539
27.02.200726.02.2017
£235,638
(£42.54)
27.02.2012
27.02.2012
Macfarlanes LLP
Part 2nd North
734.6
7,907
21.03.200610.01.2018
£319,280
(£40.37)
Macfarlanes LLP
Part 2nd South
514.1
5,534
19.02.200710.01.2018
Arcadis AYH Plc
Part 1st North
734.1
7,902
28.11.200327.11.2033
£235,195
(£42.50)
£276,570
(£35.00)
Arcadis AYH Plc
Part 1st South
513.2
5,524
28.11.200327.11.2033
Arcadis AYH Plc
Part Ground North
656.2
7,063
Morgan Sindall Investments Ltd
Part Ground South
435.6
4,689
Reception
Ground
135.0
1,453
Arcadis AYH Plc
Part Lower Ground North
613.5
Arcadis AYH Plc
Part Lower Ground South
Management Suite
COMMENTS
Includes 2 car spaces.
21.03.2010
Break exercised. Break penalty of £212,853 (8 months rent) payable
to the Landlord upon expiry. Vendor to provide 12 month rental guarantee
beyond the break date. Includes 1 car space.
21.03.2010
Break exercised. Vendor to provide 12 month rental guarantee beyond the
break date. Includes 1 car space.
01.09.2009
01.09.2014
01.09.2019
Break exercised effective 01.09.2019.
Includes 2 car spaces.
£198,340
(£35.91)
01.09.2009
01.09.2014
01.09.2019
28.11.200327.11.2033
£240,142
(£34.00)
01.09.2009
01.09.2014
01.09.2019
20.09.200619.09.2016
£175,838
(£37.50)
20.09.2011
24.12.2012
Includes 1 car space.
6,604
28.11.200327.11.2033
£148,590
(£22.50)
01.09.2009
01.09.2014
01.09.2019
Break exercised effective 01.09.2019.
404.2
4,351
28.11.200327.11.2033
£97,898
(£22.50)
01.09.2009
01.09.2014
01.09.2019
Part Lower Ground
25.2
271
15.08.200614.08.2031
£7,500
(£27.68)
15.08.2011
Arcadis AYH Plc
Part Basement
180.8
1,947
04.08.200603.08.2009
£14,603
(£7.50)
Burgess Salmon LLP
Part Basement
32.8
353
27.02.200726.02.2017
£1,820
(£5.16)
Macfarlanes LLP
Part Basement
12.3
132
24.11.200810.01.2018
£1,452
(£7.48)
Arcadis AYH Plc
Part Basement
279.9
3,013
17.11.200401.09.2019
£22,598
(£7.50)
Morgan Sindall Investments Ltd
Part Basement
5.4
58
31.07.200719.09.2016
£500
(£8.62)
-
-
01.03.200428.02.2013
Peppercorn
7,572.7
81,513*
EDF Energy Networks (LPN) Plc
TOTAL
Lease expired. Tenant currently re-negotiating new lease.
Storeroom.
Storeroom.
Includes 1 car space.
27.02.2012
21.03.2010
Storeroom.
17.11.2009
01.09.2014
01.09.2019
Storeroom. Break exercised effective 01.09.2019.
20.09.2011
24.12.2012
Storeroom.
Electricity Transformer Chamber.
£2,749,112
(£33.72)
* Includes 125 sq ft loss of area from the division of the 4th floor
C H A N C E R Y E X C H A N G E 13 1 0 F U R N I VA L S T R E E T, LO N D O N E C 4
T E N A N T F I N A N C I A L I N F O R M AT I O N
AERION FUND MANAGEMENT LIMITED
IBEX INTERIORS LTD
MACFARLANES LLP
MORGAN SINDALL INVESTMENTS LTD
Aerion Fund Management Limited acts exclusively
as the principal Investment Manager to the National
Grid UK Pension Scheme, an occupational pension
scheme sponsored by National Grid Gas Plc, a
wholly - owned subsidiary of National Grid Plc.
Ibex Interiors Ltd was founded in 1996 as a division
of the highly successful Doyle Plc and today is one of
the leading contractors in high quality refurbishment
and fitting out market. The company operates from
two offices in the UK and specialises in a wide range
of projects in London and the South of England.
Macfarlanes is one of the major independent law
firms in the City of London. The firm has
approximately 290 lawyers. The Lawyer’s UK 200
Annual Report 2009 ranked Macfarlanes in the top
30 UK firms with a reported turnover of £99m, with
profits per equity partner of £846,000. Further
information is available at www.macfarlanes.com
Morgan Sindall provides project development
and funding solutions to the public sector through
PFI and PPP initiatives. The company is part of the
Morgan Sindall Plc group which is a leading UK
construction and regeneration business with a
turnover of £2.5 billion, pre-tax profits of
£62 million and 8,000 employees.
Aerion has 35 employees who manage diversified
portfolios of investments in UK and international
equities, government bonds and credit. As at 31
March 2009 total funds under management were
£12.7 billion whilst the company reported a turnover
of £8,341,917. Further information is available at
www.aerionfm.com
For the year ending 31 December 2008 the
company reported a turnover of £95,107,151,
a pre-tax profit of £1,484,189 and net assets of
£3,718,888. Further information is available at
www.ibex-interiors.co.uk
Morgan Sindall investments was set up to
specialise in the growth of infrastructure investments
and despite making a loss for the year ending 31
December 2008 the company continues to operate
within the Morgan Sindall Group. Further
information is available at www.morgansindall.com
and www.msinvestments.co.uk
GARDINER & THEOBALD FAIRWAY LIMITED
BURGES SALMON LLP
ARCADIS AYH PLC
Gardiner & Theobald Fairway Limited is part
of Gardiner & Theobald and provides expert
analysis in the management, resolution and
avoidance of disputes in the construction,
engineering and manufacturing industries. Its parent
company operates from a global network of 60
offices spanning over 160 years and is a market
leader in construction and property consultancy.
Burges Salmon are a leading international City law
firm dating back to the 18th Century. The firm has
approximately 282 lawyers. The lawyer’s UK 200
Annual Report 2009 ranked Burges Salmon in the
top 50 UK firms with a reported turnover of £64m
net profits of £20.7m and profits per equity partner
of £409,000. Further information is available at
www.burges-salmon.com
In 2005 through the merger of AYH into the Arcadis
Group, Arcadis AYH Plc became the third largest
consultancy group in Europe, ranking them within
the top ten in the world. Employing over 500 people
throughout the UK the company is established as
one of the premier construction consultants in the
UK and is a leading provider of infrastructure,
environment and building consultancy services for
real estate, property development and infrastructure
projects.
For the year ending 30 April 2009 the Gardiner
& Theobald Fairway Ltd reported a turnover of
£9,122,971, a pre-tax profit of £41,465 and net
assets of £293,109. Further information is available
at www.gtfairway.com
The company is a wholly owned subsidiary of
Arcadis NV who for the year ending 31 December
reported a turnover of €1,739,900,000 and a
pre-tax profit of €95,900,000. For the year ending
31 December 2008 Arcadis AYH Plc reported a
turnover of £52,277,000, a net profit of £452,000
and net assets of £8,509,000. Further information
is available at www.ayh.com
C H A N C E R Y E X C H A N G E 14 1 0 F U R N I VA L S T R E E T, LO N D O N E C 4
PLANNING
VAT
INVESTMENT RATIONALE
PROPOSAL
Chancery Exchange lies within the City of
London and is situated within the Chancery Lane
Conservation Area. The property is Grade II listed.
The vendor has elected to waive exemption
from VAT and therefore VAT will be payable on
the purchase price. It is envisaged that the sale
will be treated as a Transfer of a Going Concern.
Offers in excess of £35 million reflecting a net
initial yield of 7.43% assuming purchaser’s costs
of 5.75%. This equates to a low capital value
of only £429 per sq ft.
C A P I TA L A L LO WA N C E S
SERVICE CHARGE
Substantial capital allowances can be made available
to qualifying purchasers. Further information is
available upon request.
The 2009 – 2010 service charge budget equates
to approximately £8.00 per sq ft.
• Excellent Midtown location
• High specification office building completed
in 2003
• Freehold
• Active management potential with lease
events from 2011 – 2019
• Substantial capital allowances available
• Low capital value of £429 per sq ft
C H A N C E R Y E X C H A N G E 15 1 0 F U R N I VA L S T R E E T, LO N D O N E C 4
F U R T H E R I N F O R M AT I O N
For further information or to arrange an inspection, please contact:
James Abrahams
+44 (0) 20 7417 1601
[email protected]
Toby Larman
+44 (0) 20 7529 5715
[email protected]
Graham Browning
+44 (0) 20 7417 1611
[email protected]
Dominic Rowe
+44 (0) 20 7529 5706
[email protected]
Misrepresentation Act 1967
Conditions under which particulars are issued: Michael Elliott LLP and Allsop LLP for themselves and for the vendor of this property, whose agents they
are give notice that:
1. These particulars do not constitute, nor constitute any part of, an offer or contract.
2. None of the statements contained in these particulars as to this property is to be relied on as a statement or representation of fact.
3. Any intending purchaser must satisfy himself by inspection or otherwise as to the correctness of each of the statements contained in these particulars.
4. The vendor does not make or give, and neither Michael Elliott LLP nor Allsop LLP nor any person in their employment has any authority to make or
give, any representation or warranty whatever in relation to this property.
Property Misdescription Act 1991:
These details are believed to be correct at the time of compilation but may be subject to subsequent amendment.
www.cube-design.co.uk (Q1298)
October 2009

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