ANGEL HOUSE 338 GOSWELL ROAD LONDON EC1 - HIGHLY REVERSIONARY MULTI-LET OFFICE INVESTMENT FOR SALE - Fastly
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ANGEL HOUSE
ANGEL HOUSE 1
338 GOSWELL ROAD LONDON EC1
HIGHLY REVERSIONARY MULTI-LET OFFICE INVESTMENT FOR SALE
2 ANGEL HOUSE
ANGEL HOUSE 3
EXECUTIVE SUMMARY
Located 300m to the south of Angel
Underground Station (Northern Line)
within the heart of London’s ‘Tech Belt’.
Freehold and Head Leasehold interests
for sale.
The Head Lease is dated 24th June 1935
for a term expiring 23rd June 2034 at a
fixed rent of £1,500 per annum.
Attractive Art-Deco building providing
approximately 4,256 sq m (45,808 sq ft)
of high quality warehouse style office
accommodation arranged over lower
ground, ground and four upper floors.
Multi-let to five tenants with an average
weighted unexpired lease term of
approximately 5.4 years, or 3 years to
the earliest determination.
Highly reversionary passing rent of
£1,329,942 per annum, equating to only
£29.03 per sq ft overall.
Numerous asset management
opportunities to improve income and
significantly enhance value.
Offers are sought in excess of
£28,000,000, for the Freehold and Head
Leasehold interests in the property, subject
to contract and exclusive of VAT. This
reflects a net initial yield of 4.49% and a
low capital value of £611 per sq ft
assuming purchaser’s costs of 5.8%.
THE CITY OF
LONDON THE SHARD
‘SILICON
ROUNDABOUT CLERKENWELL ROAD
TECH CITY’ OLD STREET
250 CITY ROAD
ANGEL HOUSE
CITY
ROA
D
CAMDEN PASSAGE
FARRINGDON
ST PAUL’S SMITHFIELD STATION EXMOUTH
CATHEDRAL MARKET MARKET
ST
JO
HN
ST
GO R
SW
EE
ELL THE ANGEL
T
RO
AD BUILDING
KINGS CROSS /
ST PANCRAS
INTERNATIONAL
ANGEL SQUARE
10-4 PENTONVILLE ROAD
ANGEL
PENTONVILLE RO
AD
E ET
S TR
R
PE
UP
6 ANGEL HOUSE LOCATION Angel House is situated on the east side of Goswell Road, approximately 200 metres to the south of the junction with The Angel, at the heart of one of London’s most vibrant sub-markets. Angel House is located approximately 300 metres to the south of Angel Underground Station, at the heart of the ‘Tech Belt’. The property benefits from being strategically located between the three major ‘Tech Belt’ sub-markets: Clerkenwell to the south, Shoreditch to the south east and Kings Cross to the west. Angel is an established office location and has an array of restaurants, shops, bars and cultural attractions. Camden Passage is famous for its boutique shops, whilst both the Sadlers Wells and Almeida theatres host internationally renowned productions. Angel has attracted a wide variety of occupiers including Kaplan, Expedia, Cancer Research UK, Ticketmaster and The Royal Bank of Scotland.
ANGEL HOUSE 7
COMMUNICATIONS
Angel Underground Station is Angel House is well located to benefit from Underground and
National Rail services from the following transport hubs:
included in the plans for a north-
south rail service across Greater Angel – Northern Line.
London, known as Crossrail 2. This Farringdon – National Rail Services (Thameslink),
Circle, Metropolitan and Hammersmith & City Lines.
will link Surrey and Hertfordshire via
Farringdon is set to become London’s busiest train station
central London stations including upon completion of Crossrail in 2018.
Victoria and King’s Cross St Pancras. Old Street – National Rail Services and Northern Line.
King’s Cross St Pancras – Northern, Piccadilly, Victoria,
Circle, Metropolitan, Hammersmith & City, Eurostar
International Terminal, and National Rail Services.
ANGEL
300m 4 mins
SHE
ROAD
NVILLE
P E N TO
ANGEL HOUSE PHE
KING’S CROSS RDE
338 GOSWELL ROAD LONDON EC1
ST PANCRAS
SS
CI
TY
RO
WA
AD
1,400m 18 mins
E
LK
AS
RA T
ST J
OD
GO
OH
SW
OLD STREET
N ST
ELL
1,400m 18 mins
R
EET
RO
GR
AD
AY
’S
SK EET
STR
IN
FA IN AL
NE CIV
PER
N
R R S
R TREET
RO
IN
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D S
O
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ST
AV
BUNH
CITY RO
ERY
JO
ILL ROW
S EB
HN
AD
RO
AD
LL
RO
NWE
FARRINGDON CLERKE BARBICAN
STRE
1,400m 18 mins 1,250m 16 mins
ET
AD
GR
RO
D ’S
AY
FA R
AL MOORGATE
MOO
B
ALDERSGA
EO
’S
ET
TH
RIN
RE NE
2,000m 26 mins
IN
G R AY’ S ST LA
RGA
SE NG
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OU
INN
GDO
LO
RH
TE
RO
BR OAD
R LD
TE
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FIE T
Not to scale. C
AD
ITH KE I E L D
N R
TE ST
S MM A R F
For identification IT
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purposes only. ES
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L O N D O N WA L L
HO
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OR LO
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VI O
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NE G U I L DHAL L
8 ANGEL HOUSE
THE ‘TECH BELT’
In 2014 Central London office The areas which have proved to be most popular with the
creative industries are Shoreditch, Clerkenwell, Farringdon,
take-up was dominated by creative Angel and Kings Cross – collectively now known as the ‘Tech
industries such as media, TV, Belt’. These markets are now experiencing unprecedented
telecommunications, publishing levels of demand from occupiers attracted by the tenant
and computer programming. The mix, amenities, excellent transport links and variety of
accommodation.
creative industries have contributed
Angel House provides characterful space, strongly in
TO THE VAST MAJORITY OF employment demand from the creative industries, who are willing to
growth in Central London over the pay a premium for this type of accommodation.
past five years. There are several examples of highly successful office
schemes within the locality such as The Angel Building
and 10-4 Pentonville Road, which now have an ERV in excess
of £60.00 per sq ft.
Angel House benefits from similar characteristics to these
schemes and is therefore well placed to capture this strong
occupier demand and growth.
ANGEL HOUSE 9 View from roof looking south
10 ANGEL HOUSE
LOCAL DEVELOPMENTS
Angel House is located
amongst some of
the most exciting
developments in the
‘Tech Belt’, enjoying
increasing popularity
among tenants,
developers and
investors.
Angel Square - This prominent corner Pivotal, 123 Pentonville Road - Monteagle
building was acquired by Derwent London Barlow Trust Ltd are carrying out a
for £75m in Q4 2014 and consists of three refurbishment of the existing building with
multi-let connected buildings around a a roof extension to provide 26,000 sq ft of
central courtyard totalling 128,700 sq ft. Grade A office accommodation. Completion
is scheduled Q2 2015.
250 City Road - The 5.5 acre site is currently King’s Cross Central - The King’s Cross
being developed by Berkeley Homes and will Central Ltd Partnership is developing the
provide a 1.2 million sq ft residential lead largest mixed use scheme in Central London
scheme. The landmark scheme is one of the under single ownership for over 150 years.
largest developments in London and will The 67 acre site will provide 3.4 million sq ft
provide 930 residential apartments, 75,000 of offices, 500,000 sq ft of retail, cafés,
sq ft offices, 40,000 sq ft retail and a 190 restaurants and bars, approximately 2,000
bedroom Foster + Partners designed hotel. homes, a new university and a range of
leisure, hotel and cultural uses. The scheme
has already attracted Google who will
occupy 920,000 sq ft, BNP Paribas,
Macmillan, Camden Council and the
University of Arts London.ANGEL HOUSE 11
Crown House, 145 City Road - Rocket White Collar Factory - Construction is The Angel Building - Derwent London
Investments are currently seeking pre-lets underway at Derwent London’s White Collar launched their flagship 262,000 sq ft office
for the office element of their residential lead Factory where 237,000 sq ft of tower office and retail scheme in late 2010, achieving full
scheme where a 40 storey residential tower accommodation is being developed. To the occupancy within 13 months. The six-storey
of 302 private apartments and 80,000 south of the site clustered around a new office building has been attributed with
sq ft of offices has planning consent. The public courtyard, an additional 39,200 sq ft playing an important role in regenerating the
development includes approximately 5,000 of workspace across 5 low rise buildings, area attracting tenants such as Experian,
sq ft of ground floor retail accommodation. with 3 restaurants is being developed. Jamie’s Italian and The Design Council.
Construction is yet to commence. Completion is scheduled for summer 2016.
Eagle House, 161 City Road - Mount Anvil The Bower Building - Crosstree & Helical 10-4 Pentonville Road - A Derwent London
developed 26 floors of Art Deco-inspired Bar are carrying out a part refurbishment scheme which was designed by architects
apartments above approximately 60,000 and part new-build scheme at the 3.12 Stiff + Trevillion and completed in late 2012.
sq ft of Grade A office, retail, restaurant, acre site immediately adjacent to Old The development involved a refurbishment
affordable workspace and ancillary Street Roundabout. The site comprises and remodelling of the existing structure
accommodation arranged over basement, approximately 350,000 sq ft of office and to provide 53,400 sq ft of Grade A office
ground and first floor. The commercial retail/restaurant accommodation across accommodation, which represents more
element of the scheme was sold to DTZ four buildings; The Tower, The Warehouse, than 20% uplift in floor area. Ticketmaster
Investment Management in Q4 2014. The Studio and Empire House on City are the major tenant and signed a 12 year
Road. Planning consent for the scheme lease with no breaks in October 2012 at an
was granted in Q4 2013 and work on site initial rent of £1.9 million per annum with
commenced in January 2014 with Phase 1 minimum uplifts at review.
being delivered in Spring 2015.12 ANGEL HOUSE
DESCRIPTION
Angel House is an art-deco office
building ORIGINALLY constructed
as a warehouse in the 1930s.
The property provides approximately 4,256 sq m
(45,808 sq ft) of office and ancillary accommodation
arranged over lower ground, ground and four upper floors.
Floor plates are typically 697 sq m (7,500 sq ft) and benefit
from vast floor to ceiling heights, complimented by large
windows on all elevations providing excellent natural light.
In 2014, the second, third and fourth floors were subject
to a ‘light touch’ refurbishment designed to appeal to ‘tech’
occupiers, providing excellent, open plan, flexible office
accommodation highlighting the building’s original features.
The lower ground, ground and first floors have not been
refurbished for a number of years and comprise a more
traditional specification which includes suspended ceilings.
There is an opportunity to increase the rent by improving
the arrival experience through refurbishing the reception
and modernising the traditional specification office
accommodation to target the creative industries. The unrefurbished ground floor
The specification of the refurbished 2nd - 4th floors
includes:
– 100mm raised floors
– Air-conditioning
– Category 5 cabling
– Category II lighting
– Exposed services
– Typical finished floor to ceiling heights of
approximately 3.4 metres
– 2 x 13 person passenger lifts
– 1 Goods lift
The unrefurbished first floorANGEL HOUSE 13
14 ANGEL HOUSE ACCOMMODATION Plowman & Craven have undertaken a measured survey of the building in accordance with the RICS Code of Measuring Practice 6th Edition and provides the following net internal areas. An assignable Duty of Care letter will be made available to the purchaser. Floor Use NIA (sq m) NIA (sq ft) 4th Office 679.0 7,309 3rd Office 701.6 7,552 2nd Office 699.9 7,534 1st Office 698.6 7,520 Ground Office 710.9 7,652 Lower Ground Office 765.6 8,241 Total Office 4,255.6 45,808
ANGEL HOUSE 15
16 ANGEL HOUSE
FLOOR PLANS GROUND FLOOR
710.9 sq m (7,652 sq ft)
Goods Lift
Office
Lift
Lobby
Reception
Not to scale.
For identification
purposes only.
TYPICAL UPPER FLOOR FOURTH FLOOR
(1st - 3rd floors) 679.0 sq m (7,309 sq ft)
697 sq m (7,500 sq ft)
WC
WC
Office Office
GOSWELL ROAD
GOSWELL ROADANGEL HOUSE 17
18 ANGEL HOUSE
361
to 3
73
1
359
TENURE 398 349
39 2
339
CIT
382 YR
OA 329
D
BOTH The Freehold and 372
the HEAD leasehold TCB
interestS are being
362
36
4
Shelter
offered for sale. 350
Su
rg
er
y
35 338
4
8t
o1
The Head Lease is for a term of 99 G
O
0
35
SW
0
7 3 36
years from 24th June 1935, expiring EL 0 to 23
1 to
L 5
R
24th June 2034. The ground rent is
O
AD S ID
26 NE 338
33
YG
fixed at £1,500 per annum.
8
27 RO
to
28 VE
34
6
9 30
30
33 6
4
to
1
33
31
3
28
4
21
33
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1
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4
2b
33
25
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10 9
17 to
2a W
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O
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IC
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12 Offices
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18
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Is
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an
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ty
33
31
29 to
Ci
25
2
5
9
Not to scale. For identification purposes only. This plan is based upon an Ordnance Survey
26
10 to
Map with the sanction ofothe controller of HM Stationary Office. Crown Copyright reserved.
9
23 25
t
13
1
15
TENANT INFORMATION
Wayfair (UK) Ltd (21.22% of income) Gocardless Ltd (20.16% of income) Schawk UK Limited (23.04% of income)
Wayfair is an e-commerce company that GoCardless is the UK’s leading online The global Schawk Group provides
sells household goods. The ultimate parent Direct Debit provider, collecting in excess strategic, creative and graphic services.
company Wayfair Inc. was founded in the of £0.5bn annually for over 30,000 clients It operates in the United States, Canada,
USA in 2002 and its annual revenue in 2013 including Greater Anglia Trains, Crowdcube Mexico, Brazil and Europe. In July 2014,
exceeded $0.9 bn. Wayfair (UK) Ltd and Funding Circle, with current year-on- Matthews International Corp (Market cap
lists Angel House as its UK Headquarters. year growth of 600%. c.$1.6bn) acquired Schawk, Inc and are a
www.wayfair.co.uk They are authorised by the Financial guarantor to the second floor lease.
Conduct Authority and backed by major www.schawk.com
private equity groups. The parent company
is Groupay Inc.
www.gocardless.com
Whittington Hospital NHS Trust Islington Primary Care Trust
(13.78% of income) (21.81% of income)
Whittington Health provides general Islington was one of the first Clinical
hospital and community services to Commissioning Groups to be authorised
500,000 people living in Islington and in England for commissioning health
Haringey as well as other London boroughs services for the community. It is made up
including Barnet, Enfield and Camden. of 36 GP practices and is responsible for
The organisation was established in commissioning around £300 million of
April 2011 following the merger of The healthcare services.
Whittington Hospital NHS Trust with NHS www.islingtonccg.nhs.uk
Islington and NHS Haringey community
health services.
www.whittington.nhs.ukANGEL HOUSE 19
TENANCY SCHEDULE
Multi-let to five tenants with an average weighted unexpired lease term of
approximately 5.4 years, or 3 years to the earliest DETERMINATION. The current
passing rent is £1,329,942 per annum, which reflects a highly reversionary rent
of £29.03 per sq ft overall.
All leases at the property are held outside the main provisions of the Landlord and Tenant Act 1954.
Demise Area Tenant Lease Lease Rent Review Annual Rent Comments
(sq ft) Start End (Break Option) Rent (per sq ft)
Fourth 7,309 Wayfair (UK) 25/09/2014 24/09/2019 - £282,226 £38.61 • Tenant only break option
Floor Limited determinable upon 6 months
(25/09/2017) notice
CRN: 6776852
• 6 months half rent if break not
exercised
• Initial service charge capped at
£70,556.50 (£9.65 per sq ft) and
to increase in line with RPI
• 6 month rent deposit held
Third 7,552 Gocardless Ltd 14/07/2014 13/07/2019 - £268,100 £35.50 • Tenant only break option
Floor determinable upon 6 months
CRN: 07495895 (14/07/2017) notice
• 7 months half rent if break not
exercised
• Initial service charge capped at
£68,940 (£9.13 per sq ft) and
to increase in line with RPI
• 3 month rent deposit held
Second 7,534 Schawk UK 23/01/2015 22/01/2025 23/01/2020 £306,400 £40.67 • Mutual break option:
Floor Limited - Tenant option to determine
(23/01/2020) upon 6 months notice
CRN: 03462552 - Landlord’s redevelopment
(Guaranteed option to determine upon 18
by Matthews months notice*
International • 8 months half rent if break
Corporation) not exercised by tenant
• Initial service charge capped at
£68,940 (£9.15 per sq ft) and
to increase in line with RPI
First 7,520 Whittington 25/09/2012 31/03/2021 25/09/2017 £183,216 £24.36 • Tenant only break option
Floor Hospital NHS determinable upon 6 months
Trust (01/04/2018) notice
• Initial service charge capped at
£83,402 (£11.09 per sq ft) and to
increase in line with RPI
Ground 15,893 Islington 25/09/2012 26/05/2017 - £290,000 £18.25 • Tenant only rolling break option
& Lower Primary Care upon 12 months notice
Ground Trust (Rolling)
• Initial service charge capped at
£169,556 (£10.66 per sq ft) and
to increase in line with RPI
Total 45,808 £1,329,942 £29.03
* Landlord’s option to determine is subject to demonstrating intention to redevelop through a formal planning application.
Rent reduced to £76,600 for notice period.20 ANGEL HOUSE
PLANNING ASSET MANAGEMENT
POTENTIAL
The property is located Angel House offers numerous asset management opportunities to improve income
and significantly enhance value including:
within the London
Borough of Islington. – Improving the arrival experience through the remodelling of the reception area.
The property is not – Undertake internal refurbishment and upgrade to ‘Tech’ standard of lower
ground, ground and first floors upon break or lease expiry.
listed, but is located
within the Duncan – Improving the current specification of the second, third and fourth floors upon
break or lease expiry.
Terrace / Colebrook Row
Conservation area. – The creation of an additional floor, subject to obtaining the necessary consents.
– Potential to infill the light wells to the north west and south east elevations,
creating additional accommodation.
Infill of north west Potential 5th floor
elevation
Infill of south east
elevation
Existing building
This sketch is for indicative purposes only. The proposals are subject to obtaining the necessary consents.ANGEL HOUSE 21 VAT Both the Freehold and the Head Leasehold interests have been elected for VAT. It is envisaged that the transaction will be structured as a transfer of a going concern (TOGC). EPC The building has an Energy Performance rating of E - 106. A copy of the certificate is available on the dataroom. DATAROOM Further information can be found on the property data site at: www.angelhouseec1.com
22 ANGEL HOUSE PROPOSAL Offers are sought in excess of £28,000,000, for the Freehold and Head Leasehold interests in the property, subject to contract and exclusive of VAT. This reflects a net initial yield of 4.49% and a low capital value of £611 per sq ft assuming purchaser’s costs of 5.8%. FURTHER INFORMATION For further information, or to arrange an inspection of the property please contact: Richard Susskind Jonathan Ruback 020 7831 8311 Tel: 020 7588 4433 richard@richardsusskind.com jonathan.ruback@allsop.co.uk Jonathan Franks Matthew Millman 020 7831 8311 Tel: 020 7588 4433 jonathan@richardsusskind.com matthew.millman@allsop.co.uk Ashley Goodman James Crawford 020 7831 8311 Tel: 020 7588 4433 ashley@richardsusskind.com james.crawford@allsop.co.uk www.angelhouseec1.com Misrepresentation Act 1967 Richard Susskind & Company and Allsop LLP on their own behalf and on behalf of the vendor/lessor of this property whose agents Richard Susskind & Company and Allsop LLP are, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contact for sale or lease: (b) none of the statements contained in these particulars as to the property are relied on as statements or representations of fact: and (c) the vendor/lessor does not make or give and neither Richard Susskind & Company nor Allsop LLP nor any of its members or any person in it employment has any authority to make or give any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars: (b) inspect the property and the neighbouring area: (c) ensure that any items expressed to be included are available and in working order: (d) arrange a full structural (and where appropriate environmental) survey of the property: and (e) carry our all necessary searches and enquires. Allsop is the trading name of Allsop LLP. April 2015. www.cube-design.co.uk (Q3096)
ANGEL HOUSE 23
ANGEL HOUSE 338 GOSWELL ROAD LONDON EC1
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