44/46Sekforde Street, LondonEC1R 0HA
Newly refurbished multi-let Clerkenwell office investment
Executive Summary
• Newly refurbished office in the heart of Clerkenwell only a moments’ walk from Farringdon Station, soon to be the UK’s busiest station in 2020
• Multi-let freehold office building
• Total net internal area of 8,378 sq ft (778 sq m) with the typical floor plate being approximately 1,500 sq ft (139 sq m)
• The investment provides an average weighted unexpired lease term of approximately 7.56 years to expiry and 3.64 years to break
• Total passing rent of £512,158 per annum equating to approximately £61.13 per sq ft overall
• Offers in excess of £10,105,000 (Ten Million One Hundred and Five Thousand pounds) which reflects a net initial yield of 4.75%
44/46 Sekforde StreetLondon, EC1R 0HA
Newly refurbished multi-let Clerkenwell office investment
Lower Ground Floor Fourth Floor
Canary Wharf
Smith�eld Market
St Paul’s
Barbican
Old Street
THE CITY OF LONDON
Farringdon
Location
Clerkenwell is one of the most sought-after locations in the City Fringe, situated within easy reach of major transport links and amenities. It has blossomed in recent years attracting a diverse range of businesses as well as becoming the centre of London’s world-renowned Tech Belt and the hub for creative industry in Europe. Its appeal
will be further enhanced by the opening of Crossrail in October 2020, which is expected to be a major catalyst for further growth to this exciting office market. Complementing the office market are the excellent retail, showroom and leisure amenities, which have helped transform the immediate area in recent years. Clerkenwell Road and St John Street have become synonymous with
interior and furniture showrooms, drawing customers from across the UK seeking cutting edge designs for both commercial and residential properties. In addition, new trend setting restaurants including Granger & Co, Modern Pantry, Albion and Luca have opened in Clerkenwell to satisfy the diverse workforce and increase the cosmopolitan feel to the area.
44/46 Sekforde StreetLondon, EC1R 0HA
Newly refurbished multi-let Clerkenwell office investment
44/46 Sekforde StreetLondon, EC1R 0HA
Newly refurbished multi-let Clerkenwell office investment
Situation
Sekforde Street is situated in a prime location just off Clerkenwell Green. The property sits opposite Derwent’s Buckley Building and benefits from the retail and amenities of Hatton Garden, Smithfield Market and Holborn. Leather Lane, situated to the west, provides a multitude of independent cafés and a daily food market.
The following high-profile office occupiers are located in the surrounding area: ITV Media, Royal Mail, LinkedIn, Webber Shandwick, Grey Advertising, Lastminute.com, WPP, Zaha Hadid Architects, Starcom Mediavest, Kurt Geiger, Grimshaw Architects, Jaggaer UK, Deloitte Digital, Alexander McQueen, Hawkins Brown LLP, Splash Worldwide HQ, Knoll and Amazon.
Well known restaurant and leisure operators situated near by include St John, The Modern Pantry, The Zetter, Cafe Du Marche, Malmaison, Bleeding Heart, Hix Oyster & Chop House, Giant Robot, Burger & Lobster and Smiths of Smithfield.
The property is five minutes walk from Farringdon Station, the only interchange for Underground, Crossrail, Thameslink and National Rail in London.
CHARTERHOUSE ST
ST JOH
N ST
ST JOH
N ST
ST JOH
N ST
ST JOH
N ST
AYLESBURY ST
SEK
FORD
E ST
LEATHER LA
NE
HATTO
N G
ARD
EN
CALTHO
RPE
ST
GUILFORD ST
A40
1 RO
SEBE
RY A
VE
A40
1 RO
SEBE
RY A
VE
PERCIVAL ST
BUN
HILL RO
W
A501 C
ITY ROA
D
CHISWELL STBEECH ST
KING’S CROSS RD
GRAY’S IN
N RO
AD
GRAY’S IN
N RO
AD
A501 CITY RD
A501 CITY RD
THEOBALDS RD
C
LERKENWELL RDCLERKENWELL RD
OLD ST
OLD ST
A40 HIGH HOLBORNA40 HIGH HOLBORN
KIN
G’S CROSS RD
FARRINGDON RD
FARRIN
GD
ON
RD
A1 GO
SWELL RD
A1 GO
SWELL RD
SHEPH
ERDESS W
ALK
EAST
RD
LONDON WALL
A501 PENTONVILLE RD
CHANCERY LANE
BARBICAN
OLD STREET
FARRINGDON
HOLBORN
MOORGATE
1
2
3
4
5
8
9 11
10
12
1314
15
1617
18
6
7 F A R R I N G D O NF A R R I N G D O N
C L E R K E N W E L LC L E R K E N W E L L
S T . L U K E ’ SS T . L U K E ’ S
F I N S B U R YF I N S B U R Y
H O X T O NH O X T O N
B A R B I C A NB A R B I C A N
H O L B O R NH O L B O R N
P E N T O N V I L L EP E N T O N V I L L E
Smith�eld Market
Barbican Centre
Occupiers Key1. ITV Media2. Royal Mail3. LinkedIn4. Webber Shandwick5. Lastminute.com6. Grey Advertising7. WPP8. Zaha Hadid Architects9. Starcom Mediavest10. Kurt Geiger
11. Grimshaw Architects12. Jaggaer UK13. Deloitte Digital14. Alexander McQueen15. Hawkins Brown LLP16. Splash Worldwide HQ17. Knoll18. Amazon Development
Centre
Connectivity
44-46 Sekforde Street benefits from exceptional transport connectivity. The closest station to 44-46 Sekforde Street is Farringdon and will be the only interchange station for Underground, Crossrail, Thameslink and National Rail services in London. Crossrail
Crossrail is the largest infrastructure project in Central London since the opening of the Underground over 150 years ago. It is Europe’s largest infrastructure project, costing £15 billion. Once opened it will comprise a new 100km east to west underground line connecting all of London’s main employment hubs from Heathrow and Reading in the west; the West End, Farringdon, the City and Canary
Wharf in central; through to Shenfield and Abbey Wood in the east. When complete, Farringdon will become the UK’s busiest station and its planned that over 140 trains per hour will flow through the interchange. It will be the only station that provides a 3-way connection between the London Underground as well as the north/south Thameslink and mainline network. It is expected that over 200 million passengers will travel on Crossrail each year.
Crossrail will give Central London a direct rail service to Heathrow in approximately 30 minutes and provide City to West End access in less than 10 minutes. Sekforde Street is situated within 500m of the new Crossrail station at Farringdon, due to open in October 2020.
UndergroundThe Circle, Metropolitan and Hammersmith & City Underground lines run through Farringdon station, making it one of the best connected underground stations in London.
Also within close proximity to Sekforde Street are a number of alternative London Underground Stations including Chancery Lane, Barbican, Old Street and King’s Cross which provides underground, national and international rail links.
Thameslink & National RailThameslink is a 24-hour, 115-station main-line railway route. Farringdon currently provides national rail services to such destinations as Peterborough, Bedford, Luton and Luton Airport to the north and Sutton, Orpington, Sevenoaks, Rainham, Horsham, Gatwick Airport and Brighton to the south.
44/46 Sekforde StreetLondon, EC1R 0HA
Newly refurbished multi-let Clerkenwell office investment
Moorgate3 mins
Amersham61 mins
FARRINGDON
Metropolitan Line
Wembley Park23 mins
Baker St10 mins
Barbican1 min
Liverpool St5 mins
Harrow on the Hill29 mins
Finchley Rd16 mins
Aldgate8 mins
Hammersmith28 mins
Hammersmith & City Line
Paddington17 mins
Kings Cross5 mins
Liverpool St5 mins
Barking30 mins
Mile End15 mins
West Ham20 mins
Aldgate East10 mins
Edgware Rd11 mins FARRINGDON
Shepherd’s Bush32 mins
Paddington17 mins
Circle Line
Kings Cross5 mins
Barbican1 mins
Liverpool St4 mins
Embankment21 mins
Monument14 mins
Blackfriars18 mins
Tower Hill12 mins
Moorgate3 mins FARRINGDON
Euston Square6 mins
Source: Google / Crossrail.co.uk
Stratford10 mins
Abbey Wood21 mins
Reading59 mins
FARRINGDON
Crossrail
Ealing Broadway16 mins
Bond St4 mins
Canary Wharf8 mins
Heathrow T2 & T332 mins
Acton15 mins
Romford30 mins
Haywards Heath53 mins
Three Bridges44 mins
Bedford50 mins
Thameslink
St Pancras Intl.5 mins
East Croydon24 mins
Luton34 mins
Brighton65 mins FARRINGDON
London Bridge11 mins
Blackfriars5 mins
Description
44-46 Sekforde Street is the former premises of Blick Time Recorders, who first occupied the existing development in 1963. Blick became the largest marketing and service time recorder company in the UK and sold all makes of UK made clocks. The building itself, was designed by Robert Cromie, who made his name in the 1930’s designing theatres and cinema’s like the Hammersmith Apollo.The building is of concrete framed construction with solid floors, brick elevations and was constructed in the 1930’s probably as a multi storey factory or warehouse. It enjoys lovely views from its north west side over St James’s Church and its gardens which are open to the public and provide a tranquil local amenity. The church was rebuilt in 1792 to plans by a local architect James Carr whose design was influenced by Wren and Gibbs.The property is spread over lower ground, ground and four upper floors and provides 8,378 sq ft NIA of flexible accommodation. It benefits from modern open plan office space which has been refurbished throughout. Each unit also benefits from both male and female WC’s and either bike storage or bike hanging spaces.There is also a small electricity substation located in the basement which is accessed externally from Sekforde Street.
Amenities
Newly refurbished office space with the following specifications:
• Modern open plan office floor plates
• Brand new exposed air conditioning system
• Modern suspended LED strip lighting
• New wooden flooring throughout
• Excellent natural daylight
• Perimeter trunking
• Self-contained WCs / showers
• Passenger lift
• Bike storage/bike hanging spaces located within each unit
44/46 Sekforde StreetLondon, EC1R 0HA
Newly refurbished multi-let Clerkenwell office investment
Ground Floor First Floor
44/46 Sekforde StreetLondon, EC1R 0HA
Newly refurbished multi-let Clerkenwell office investment
Lift
WC
Entrance
Void ElecOpen O�ce
WC &Shower
Tenancy Schedule
Floor Area sq ft
(sq m)
Tenant Rent Rent PSF
Lease Start Lease End Break Clause Rent Review In/Out 1954 Act
Notes
Third & Fourth Floor
2,802 (260)
Narbutas Limited
£175,125 £62.50 11/07/2019 10/07/2029 11/07/2024 11/07/2024 OUT Break Option (Tenant only) – 11 July 2024 with 6 months’ prior written notice. Rent commences 05 July 2020. Guarantor – Narbutas International UAB. Rent deposit - £87,563 plus interest accrued.
Second Floor
1,512 (140)
Studio 2BR Limited
£94,500 £62.50 22/10/2018 21/10/2023 22/10/2021 - OUT Break Option (Tenant only) – 22 October 2021 with 6 months’ prior written notice. The tenant has paid the rent in full up to 22 Oct 2021 and an appropriate apportionment of this rent will be passed onto the purchaser. If the tenant does not serve their break notice, they shall then pay the rent in full to the end of lease as a single payment of £157,500 on 22 Oct 2021. This lump sum payment includes a deduction equivalent to 4 months’ rent free.
First Floor 1,507 (140)
Kindred Capital LLP
£88,913 £59.00 02/10/2018 01/10/2023 02/10/2021 - OUT Break Option (Tenant only) – 02 October 2021 with 6 months’ prior written notice. Tenant to receive an additional 4 months’ rent free, if the break is not exercised. Rent deposit - £26,673.90 plus interest accrued. There is a personal concession documented by way of side-letter that permits the tenant to pay rent monthly. That arrangement is not expressed to be binding on any successor in title to the reversionary interest.
Ground & Lower Ground floor
2,557 (238)
Topps Tiles (UK) Limited
*£153,420 £60.00 03/04/2018 02/04/2028 02/04/2023 03/04/2023 OUT Break Option (Tenant only) – 02 April 2023 with 6 months’ prior written notice. *Current rent of £115,065 until 02 April 2020 at which point it will revert to the headline rent of £153,420. There is a personal concession documented by way of side-letter that permits the tenant to pay rent monthly. That arrangement is expressed to bind any successor in title to the reversionary interest.
Substation - UK Power Network
£200 - 01/09/2019 31/08/2079 - - IN Terms have been agreed subject to formal documentation. Completion likely to be 01 September 2019. Lease will include a “Lift & Shift” Clause subject to 12 months’ notice and will be at the Landlord’s cost.
8,378 (778)
£512,158
Floor Plans
Indicative floor plans; full floor plans are available upon request.
You can also view the building via the virtual walkthrough at:https://realla.co/m/24033-44-46-sekforde-street-clerkenwell-44-46-sekforde-street#gallery
Second Floor Plan
Lift Elec
Entrance
MainEntrance
Elec
Open O�ce
Ground Floor Plan
44/46 Sekforde StreetLondon, EC1R 0HA
Newly refurbished multi-let Clerkenwell office investment
Covenants – Sekforde Street
Topps Tiles T/A Parkside Design
Topps Tiles plc is a British national retailer based in Enderby, Leicestershire. It is listed on the London Stock Exchange. Topps Tiles is the leading tile retailer in the United Kingdom, they advise consumers and traders on suitable products relating to floor and wall tiles, natural stone and related products. They sell other accessories such as underfloor heating, tools, adhesives, grouts, wet room products and aftercare/protection/cleaning solutions.
Topps Tiles has a market share of 30+% in the United Kingdom. Current investor information can be found at www.toppstilesplc.com.
Parkside Design is a subsidiary brand of Topps Tiles with Design Studios in Clerkenwell, Chelsea, Leicester and a Design Studio coming soon in the Cotswolds. It is a contemporary porcelain, ceramic and natural stone tile specification company with over 500 designs on offer, from some of the world’s most dynamic manufacturers.
Topps Tiles UK Limited T/A Parkside Designs Company Number: 04781209
29 Sept 2018 £000
30 Sept 2017 £000
01 Oct 2016 £000
Turnover 217,776 211,724 214,994
Pre-tax Profit 17,528 20,411 23,479
Net Worth 26,806 31,947 35,204
Kindred Capital LLP
Kindred Capital LLP is a venture capital fund that practises equitable venture.
Based in London and incorporated in 2015, Kindred Capital has closed its first seed fund of £80 million. It has since deployed this capital into 20 tech start-ups throughout Europe.
Kindred Capital LLP Company Number: OC401508
31 Dec 2018 £
31 Dec 2017 £
31 Dec 2016 £
Turnover 1,146,255 1,564,282 577,818
Pre-tax Profit 728,802 1,279,553 338,588
Net Worth 320,837 577,359 169,737
Studio 2BR Limited
Studio 2BR Limited is an independent, global design consultancy business working with clients in the UK, Europe and the United States. Studio 2BR Limited creates brands, campaigns and communications for business through a variety of media outlets.
The company has taken advantage of exemptions available to small companies not to publish turnover and profit information. Figures for net worth are shown below.
Studio 2BR Limited Company Number: 03517743
30 Apr 2018 £
30 Apr 2017 £
30 Apr 2016 £
Turnover - - -
Pre-tax Profit - - -
Net Worth £2,837,609 £1,925,780 1,523,472
Narbutas Limited
Incorporated in 2015, Narbutas Limited is a London based subsidiary of Narbutas International UAB. The business creates furniture for the modern workspace, with the needs of the 21st-century employee in mind, manufacturing modern, durable and functional furniture.
Narbutas LimitedCompany Number: 09583145
31 May 2018 £
31 May 2017 £
31 May 2016 £
Turnover 512,887 438,694 308,331
Pre-tax Profit 4,379 8,251 23,104
Net Worth 28,355 26,767 20,705
Narbutas Limited is guaranteed by their parent company Narbutas International UAB.
Narbutas International UAB Company Number: 300591314
31 Dec 2018 €
31 Dec 2017 €
31 Dec 2016 €
Turnover 70,524,106 48,137,501 33,328,359
Pre-tax Profit 11,719,719 8,870,303 5,364,944
Net Worth 22,970,328 14,057,164 6,871,629
Proposal
We are seeking offers in excess of £10,105,000 (Ten Million One Hundred and Five Thousand pounds) for the freehold interest, subject to contract.
This reflects a net initial yield of 4.75% (assuming purchasers’ costs of 6.70%) and a capital value of £1,206 per sq ft.
Additional Information
PlanningThe property is located within the London Borough of Islington and has Office (Class B1) use.
Service ChargeThe service charge for the year ending 24/03/2020 equates to £5.57 per sq ft.
VATThe property has been elected for VAT. It is anticipated that the sale will be treated as a Transfer of Going Concern (TOGC).
EPCAvailable upon request.
Data RoomAccess can be provided to a data room on request.
44/46 Sekforde StreetLondon, EC1R 0HA
Newly refurbished multi-let Clerkenwell office investment
Contacts
For further information please contact:
William PreeceT 020 7458 0663M 07850 099606E [email protected]
Paul MorrisT 020 7458 0645M 07771 816 347E [email protected]
Richard GoodeT 020 7458 0633M 07889 180981E [email protected]
Giles GodboldT 020 3713 1953M 07899 977451E [email protected]
Ollie KirkeT 020 3713 1954M 07880 242 178E [email protected]
MISREPRESENTATION ACT: Fletcher King for themselves and for the vendors or lessors of this property whose agents they are, give notice that (i) these particulars are produced in good faith, are set out as a general guide only and do not constitute any part of an offer or contract. They are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves as to the correctness of each of them. (ii) no person in the employment of the joint agents has any authority to make or give any representation or warranty in relation to this property. July 2019. Designed and produced by Creativeworld. Tel: 01282 858200.
Ground Floor Third FloorLower Ground Floor