1 5 Poland Street Soho - Michael Elliott
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1 – 5 Poland Street Soho London W1
1 – 5 Poland Street
3
Investment
Summary
Striking freehold single-let office
investment located in the heart of
Central London’s most desirable &
sought after sub-market
– London’s coolest address and home to – Average passing rent of only £70.33 psf -
some of the boldest, brightest, and most a 36% discount to prime Soho office rents
prestigious names in global business of £110.00 psf
– Less than 350 metres from the new – Well timed rent review in July 2022
Elizabeth Line at Tottenham Court Road
– £2.25 million tenant refurbishment
station (Dean Street)
programme in progress underlining their
– 27,016 sq ft (2,510.0 sq m) NIA of media- commitment to the building
style offices arranged over lower ground,
– No immediate CAPEX required
ground and four upper floors
– Freehold
– Single let to Williams Lea Limited
trading as Tag Worldwide on a 15-year Price: £43,500,000
lease expiring 17 July 2027 (6.25 years
unexpired) Net Initial Yield: 4.09%*
Capital Value: £1,610 psf
* (assuming purchasers’ costs of 6.80%)
FITZROVIA BLOOMSBURY HOLBORN SOHO COVENT GOLDEN LEICESTER MAYFAIR
SQUARE GARDEN SQUARE SQUARE
1–5
Poland
Street
GREAT
OXFORD OXFORD TOTTENHAM MARLBOROUGH REGENT PICCADILLY CHARING
CIRCUS STREET COURT ROAD STREET STREET CIRCUS CROSS
Soho - reigning supreme
as the Capital’s epicentre
of cool
1 – 5 Poland Street 1 – 5 Poland Street
8 9
Kingly Court
First-class local amenities -
home to some of London’s
best entertainment &
nightlife
1 – 5 Poland Street 1 – 5 Poland Street 10 11 Carnaby Street The densest concentration of theatres, restaurants, cafés, private clubs, hotels & bars anywhere across the Capital
NEW
1 – 5 Poland Street
12
T
D STREE
OX F O R
TOTTENHAM
COURT ROAD
T TOTTENHAM 7
STREE COURT ROAD 4 MINS
O X FO R D
Local Occupiers
(DEAN STREET)
6
SOHO
SQUARE
OXFORD CIRCUS 1
E ET
10 MINS STR 2
Home to some of the boldest, H
CHA
G
DE
OU 7 4
2 OR
AN
B
PO
RL
brightest and most exciting
RING
FRI
10 MA 18 1
LAN
STR
5 E AT 8
TH
G R 19
DS
10
EET
5
C RO
9
names in global business, film, 17
ST
TRE
2
1-5 1 10 1
SS R
T E
12 7 20
television & music 6 Poland Street 17 18 2
8
OA D
15
19 9 9 4
WA
6 14 2
20 3 RE
E T
RD
ST 16
WI
CK 2
6
OU
AD 3
BR
O 15 5 8
RS
3
TR
13 16
EET
5 14
8
RE
21 1
6 23 UE
GE
21 22 13 EN
8
NT
4
15 AV
7 14 11 4 RY
ST
U
SB
RE
11 TE
3 F
ET
12 11 HA
4 5 S
GOLDEN 13 10 5
SQUARE 9 7
4
3 6 LE
1 12
3
8 9
7
10
LEICESTER
11 SQUARE
12 PICCADILLY
R EG E N
T STREET CIRCUS
6 MINS
LY
RE
HA
L
Members clubs Hotels Restaurants Theatres DI
Office Occupiers Retailers
GE
A
YM
C
PIC
NT
1 The Union 1 Ham Yard Hotel 1 Quo Vadis 13 Dishoom 1 Soho Theatre 1 Framestore 10 Telefonica 1 Paul Smith 12 Maharishi
AR
ST
2 The House of St Barnabas 2 Soho Hotel 2 L’Escargot Club Privé 14 Burger & Lobster 2 Prince Edward Theatre 2 Sony Pictures 11 Twitter 2 Axel Arigato 13 Alex Eagle
KE
RE
3 Blacks Club 3 Kettners Townhouse 3 HIX Soho 15 The Ivy Brasserie 3 Queen’s Theatre 3 M&C Saatchi 12 Clear Channel 3 Nigel Hall 14 Rag & Bone
T
ET
4 The Century Club 4 Z Soho 4 Nopi 16 Duck & Rice 4 Apollo Theatre 4 20th Century Fox 13 Diageo 4 Pretty Green 15 A.P.C.
ST
5 The Groucho Club 5 Courthouse Hotel 5 Bocca Di Lupo 17 Social Eating House 5 Gielgud Theatre 5 Apple 14 Bauer Media 5 Ben Sherman 16 Le Labo
Oliver Spencer L L
. JA
6 Soho House 40 Greek Street 6 Dean Street Townhouse 6 Polpo 18 Princi 6 Lyric Theatre 6 Dolby Europe Ltd 15 United Agents 6 Liberty London 17
A
7 Soho House 76 Dean Street 7 The Nadler 7 Flat Iron 19 Zelman Meats 7 Piccadilly Theatre 7 Palantir 7 Rapha 18 Nudie JeansL M
ME
A L
8 Disrepute 8 Hazlitt’s Hotel 8 Temper 20 Chotto Matte 8 Palace Theatre 8 BBH 8 Woolrich 19 Filson / P
Shinola
’S
9 Milk & Honey 9 W Hotel 9 Yauatcha 21 Shoryu 9 Windmill Theatre 9 Och-Ziff 9 Champion 20 Fred Perry
10 Mimi’s 10 Barrafina 22 Bob Ricard 10 London Palladium 10 Fiorucci 21 Albam Clothing
11 Karma Sanctum Soho 11 Spuntino 23 Stick ‘n’ Sushi 11 Folk
12 Hotel Café Royal 12 The Palomar
1 – 5 Poland Street
14 ET
X FO R D STRE
NEW O
D STRE
E T 7
OX F O R
6 TOTTENHAM
Local Developments OX F O R
D STRE
ET 10
TOTTENHAM
COURT ROAD
COURT ROAD
9
(DEAN STREET)
Major development activity OXFORD CIRCUS
SOHO
SQUARE
EET
by numerous high-profile HS
TR
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G
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OR
E
AN
NU
LB
developers
PO
RING
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FRI
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E
LAN
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Y
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C RO
UR
ST
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1-5
SB
SS R
30 Broadwick Street, W1
ET
1
TE
Poland Street 2
AF
Developer: Great Portland Estates Estates Plc
OA D
SH
Scheme: 94,297 sq ft of Grade A offices, 1
WA
ET
retail & restaurant RE
RD
ST
accommodation CK
WI
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D
OA
Status: Completed 2017 BR
RS
TR
EET
RE
UE
GE
4 EN
NT
AV
Y
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ST
3 ES
B
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AF
ET
GOLDEN SH
SQUARE
LEICESTER SQUARE
2 20-24 Broadwick Street, W1 3 37-38 Golden Square 4 40 Beak Street
Developer: Broadwick Street Holdings Developer: Halamar Developer: Enstar Capital & LandCap LEICESTER
SQUARE
Scheme: 69-bed boutique hotel with Scheme: 22 luxury apartments with ground Scheme: 13,655 sq ft of Grade A offices let
restaurant & bar floor retail & restaurant to Damien Hirst & a 5,000 sq ft PICCADILLY
Status: Under construction accommodation restaurant let to Sticks ’n’ Sushi R EG E N
T STREET CIRCUS
Status: Completed 2019 Status: Completed 2018
Y
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PIC
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M AL TRAFALGAR 1
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SQUARE
PA
’S
5 54-57 Great Marlborough Street 6 73-89 Oxford Street & 1 Dean Street 7 1 Soho Place 8 Ilona Rose House, 9 St Giles Circus 10 127-143 Oxford Street
& 47-50 Poland Street Developer: Great Portland Estates Developer: Derwent London 111-119 Charing Cross Road Developer: Consolidated Developments Developer: Daejan Investments Limited
Developer: Motcomb Estates Scheme: 42,500 sq ft of Grade A office let Scheme: 209,000 sq ft of Grade A offices & Developer: Soho Estates Scheme: 150,000 sq ft mixed-use Scheme: 40,00 sq ft of Grade A offices,
Scheme: 200-bed luxury hotel to Moneysupermarket.com & 36,000 sq ft of prime retail 40,000 Scheme: 158,453 sq ft of Grade A offices, commercial scheme comprising 26,000 sq ft of prime retail & a
Status: Planning granted 47,100 sq ft of prime flagship retail sq ft 350-seat Nimax theatre 65,778 sq ft of prime retail & retail, hotel & residential 5,000 sq ft nightclub.
pre-let to Benetton & New Look Status: Due Q4 2021 restaurant accommodation & accommodation & an Status: Due 2022
Status: Completed 2018 9,750 sq ft NSA of private 800-capacity music venue
residential Status: Due 2022
Status: Due 2022
1 – 5 Poland Street 1 – 5 Poland Street
16 17
Connectivity
OXFORD
CIRCUS
6 minutes
TOTTENHAM
BOND STREET
COURT ROAD
9 minutes 5 minutes
GREEN PARK
11 minutes
1 -5
Poland Street
COVENT
GARDEN
10 minutes
Proposed Tottenham Court Road station
entrance at Dean Street
Elizabeth Line
PICCADILLY LEICESTER
SQUARE
(Crossrail)
CIRCUS
7 minutes 8 minutes
CHARING
CROSS
9 minutes
ELIZABETH LINE (CROSSRAIL)
1-5
Unrivalled connectivity with 8 key London 28 5 2 Poland
Street
3 5 12 14
Underground Stations within a mile & less than HEATHROW PADDINGTON BOND TOTTENHAM FARRINGDON LIVERPOOL CANARY STRATFORD
350 metres from the new Elizabeth Line at STREET COURT ROAD STREET WHARF
Tottenham Court Road Station
Bakerloo Central Circle District Hammersmith & City Jubilee Metropolitan Northern Piccadilly DLR
Striking art-nouveau building comprehensively redeveloped behind a retained facade in 2012 to provide 27,016 sq ft of modern, highly specified offices
Media-style offices ideally suited to occupier demand
Single-let an average of £70.33 psf - 36% discount to prime Soho rents of £110.00 psf
Single-let for a further 6.25 years with a well timed rent review in July 2022
Original industrial features including exposed brickwork, structural columns and large steel fire doors
Industrial-style reception & coffee bar
Striking 4th floor roof terrace
£2.25 million tenant refurbishment in progress - no immediate CAPEX required
1 – 5 Poland Street 34 Office Specification: – Industrial-style reception area – Outdoor roof terraces at 1st & 4th floors – Fully accessible raised metal flooring – Underfloor 3-pipe VRV air conditioning system* – Modern suspended LG7 compliant feature lighting* – Floor to ceiling heights between 2.65 metres and 3.1 metres – Retained original features including exposed brickwork and structural steel columns – 2 x 13-person (1,000 kg) ThyssenKrupp LED-lit passenger lifts opening directly on to each floor – Secure cycle storage with separate access from Livonia Street – 3 x showers and changing facilities *Except ground and fourth floors
1 – 5 Poland Street
37
Lower Ground
Floor
Accommodation Ground
Floor
1-5 Poland Street provides the following net internal floor areas:
FLOOR USE NIA
SQ M SQ FT
4th Office 150.1 1,616
3rd Office 416.6 4,484
2nd Office 501.0 5,393
1st Office 494.1 5,318 OFFICE
Office 447.3 4,815 RECEPTION
Ground
STORAGE
Reception 67.1 722
ANCILLARY
Lower Ground Office 433.8 4,668
TOTAL: 2,510.0 27,016
P O L A N D S TR
Not to scale.
Indicative only.
EET1 – 5 Poland Street 1 – 5 Poland Street
38 39
First Third
Floor Floor
TERRACE
Second Fourth
Floor Floor
OFFICE
TERRACE
RECEPTION
TERRACE
Not to scale.
Indicative only.1 – 5 Poland Street
40
Remodelled experiential
client reception complete
with digital marketing
Tenant Refurbishment
screens to showcase
Tag’s work
Programme
A comprehensive £2.25 million tenant
refurbishment programme in progress set
to transform 1-5 Poland Street into a modern,
experiential and creative work-hub
– Flexible workspace for up to 492 people
– State of the art editing and recording suites
– 11 collaborative meeting rooms ideally suited
to face-to-face meetings and client entertainment
New limed oak engineered Flexible workspace
floor & excellent natural light
Striking curved partitioning
to create design-led space
The Client Suite
4 2 meeting rooms, 1 pitch room
3 TAG EMEA
Global HQ and TAG EMEA
254 DESKS
2 86 desks, 4 personal offices
2 meeting rooms, 2 quiet rooms
TAG EMEA
1 168 desks, 4 meeting rooms,
5 quiet rooms, 1 personal office
The Hub
G 43 Flexible work spaces
5 office suites
-1 Suites and BOH
As existing
(with additional headless room)
Stack Plan
Modern contemporary
4th floor complete with
roof terrace1 – 5 Poland Street
43
Tenancy
Single-let to Williams Lea Limited trading as
Tag Worldwide on a full repairing and insuring
lease for a term of 15 years from 18 July 2012
expiring 17 July 2027.
The lease is subject to five yearly upward only
open market rent reviews with the next review
due 18 July 2022.
The rent review assumes that the building is to
be let as a whole with vacant possession for a
term of 10 years (with a rent review at the expiry
of the 5th year of that term) on an agreed floor
area of 27,016 sq ft NIA.
Current passing rent of £1,900,000 per annum
equating to £70.33 psf overall.
A tenant only break option dated 18 July 2022
has been removed in return for an 8-month rent
free period commencing 25 December 2020
expiring 24 August 2021 which will be topped-up
by the Vendor on sale.
A transformer chamber is let to London
Electricity Plc on a 60-year lease from
25 March 1970.Covenant Information Williams Lea Limited Founded in London in 1820 by John Wertheimer, Williams Lea was originally established to provide printing solutions to the financial services industry. Williams Lea purchased the design and production agency Tag Worldwide in 2011, adopting the company’s name into its own brand to become Williams Lea Tag a global provider of integrated marketing and communication services as well as business process outsourcing services to some of the largest and most recognised brands across the world including PWC, Net A Porter and BP. Headquartered in London, Williams Lea Tag has a presence in 195 cities across 40 countries and employs over 10,000 people. In 2017, the company was sold to global private equity firm Advent International for an undisclosed sum and in 2019 announced it would be splitting itself into Williams Lea which handles outsourced business processes for big companies and Tag Worldwide a global advertising production agency. Based at 1-5 Poland Street, Tag Worldwide is a leading end-to-end global creative production agency and sourcing partner for brands and agencies. Tag works with 40 of the top 100 global brands to make their marketing more effective and efficient. As production and sourcing specialists, Tag offers a complimentary skillset to in-house teams and advertising agencies to bring to life, extend and deploy creative ideas. Further information can be found at: www.williamslea.com and www.tagww.com Tenant financials available on request.
1 – 5 Poland Street 1 – 5 Poland Street
46 47
Tenure Planning
Freehold. Located in the City of Westminster.
1-5 Poland Street is not Listed but lies within
the Soho Conservation Area.
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 reserved1 – 5 Poland Street 1 – 5 Poland Street
48 49
Investment Market Occupational Market
– Low interest rate environment, diminished – Unprecedented levels of demand from – Soho – Central London’s most desirable – Significant investment and development from
returns on UK Government bonds and the both domestic and international capital. and sought-after sub-market. numerous high-profile developers successfully
devaluation of Sterling continues to make a – Soho - robust occupational and investment – Strategic West End location. attracting a broad occupier base.
compelling case for Central London real estate credentials, underpinned by a severe lack of – Mass occupier appeal – destination of choice
– Severe supply constraints.
versus other major European capital cities. supply. for the boldest, brightest, and most exciting
– Low vacancy rate of 3.1% vs a wider Central
– Strong demand and an acute lack of supply – Prime yields of 3.75% - 4.00% names in global business, film, television &
London rate of 5.7%.
maintaining downward pressure on yields. music.
– Prime Soho capital values of c. £2,000 per sq ft. – Exceptional connectivity - 8 London
– Prime rents in excess of £100.00 psf.
Underground Stations within a mile.
– Less than 350m from the new Elizabeth Line at
Tottenham Court Road station (Dean Street).
DATE ADDRESS TENURE PRICE NIY CAPITAL VALUE BUYER DATE ADDRESS FLOOR AREA TENANT RENT
(£ PSF) (SQ FT) (£ PSF)
Williams Lea Limited
Mar-21 1-5 Poland Street, W1 FH £43,500,000 4.09% £1,610 Available Mar-21 1-5 Poland Street, W1 Bst-4th 27,016 £70.33
t/a Tag Worldwide
20 Golden Square & Mar-21 47 Great Marlborough Street, W1 Bst-4th 12,614 Mediaforce Ltd £90.00
Mar-21 FH £47,500,000 3.72% £1,923 Available
5-8 Lower John Street, W1
Oct-20 Bally House, 27-29 Beak St, W1 2nd 1,488 Green & Partners LLP £75.00
Mar-21 10 Great Pulteney Street, W1 FH £75,000,000 - £1,703 Under offer
Aug-20 Bally House, 27-29 Beak St, W1 1st 655 Ashwell Rogers £78.50
Mar-21 4-7 Great Pulteney Street, W1 FH £16,000,000 - £1,022 Westbrook Partners
Jun-20 51-53 Great Marlborough Street, W1 1st-2nd 9,364 Sony £76.00
Nov-20 4-6 Soho Square, W1 FH £25,000,000 - £1,316 Al Duwaliya May-20 29-35 Great Portland Street, W1 4th 2,559 DBV £86.00
Nov-20 36-38 Dean Street, W1 FH £22,100,000 4.03% £1,498 Acai Group Mar-20 44-45 Great Marlborough St, W1 6th 1,556 Zadig Asset Management £92.50
Feb-20 40-41 Great Marlborough St, W1 Bst-Grd 7,564 Levi Strauss UK £86.00
Sep-20 7 Soho Square, W1 FH £78,000,000 3.82% £1,265 Hines
Private European
Sep-20 44 Whitfield Street, W1 FH £19,500,000 4.50% £1,621
Investor
Jul-20 2 & 4 Soho Place, W1 LLH £40,500,000 - £2,201 Sir Lloyd Dorfman
Maple & Midford,
Apr-20 FH £32,250,000 4.27% £1,580 Zima Capital
4-8 Maple Street, W1
Private Asian
Aug-19 21-22 Poland Street, W1 FH £14,380,000 4.17% £1,662
Investor
Royal London Asset
May-19 25 Soho Square, W1 FH £75,350,000 3.98% £1,713
Management1 – 5 Poland Street 50 Further Information VAT EPC 1-5 Poland Street is elected for VAT. C74 (part ground floor) and C60 (remainder). It is anticipated that the transaction with be Certificates and Recommendation Reports treated as a Transfer of Going Concern (TOGC). are available on request. CAPITAL ALLOWANCES MATTERPORT VIRTUAL TOUR None. Available on request. PROPOSAL Offers in excess of £43,500,000 (subject to contract) reflecting a net initial yield of 4.09% (assuming purchasers’ costs of 6.80%) and a capital value of £1,610 psf. CONTACT For further information or to arrange an inspection, please contact: Dominic Rowe Nick Steele dominicrowe@michaelelliott.co.uk nicksteele@michaelelliott.co.uk +44 (0) 207 529 5706 +44 (0) 207 529 5709 +44 (0) 7771 766 094 +44 (0) 7771 357 714 Harry Cox Peter Ng harrycox@michaelelliott.co.uk peterng@michaelelliott.co.uk +44 (0) 207 529 5703 +65 6733 3212 +44 (0) 7584 686 394 www.michaelelliott.co.uk Declaration: Michael Elliott LLP for themselves and for the vendors 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 purchaser should not rely on them as statements or representations of fact but should satisfy themselves by inspection or otherwise as to the correctness of each of them; c) no person in the employment of Michael Elliott LLP has any authority to make or give any representations or warranty whatever in relation to this property. March 2021 www.cube-design.co.uk (Q4724)
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