ARTS BUILDING 2-10 MORRIS PLACE FINSBURY PARK LONDON N4 - LoopNet
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ARTS BUILDING 1
ARTS
BUILDING
2 - 1 0 M O R R I S P L AC E
F I N S B U RY PA R K
LO N D O N N 4
P R I M E N O RT H LO N D O N O F F I C E
A N D S U P E R M A R K E T I N V E ST M E N T W I T H
F U T U R E D E V E LO P M E N T P OT E N T I A L
2 ARTS BUILDING ARTS BUILDING 3
ARTS
BUILDING
F I N S B U RY PA R K
LO N D O N N 4
4 ARTS BUILDING ARTS BUILDING 5
INVESTMENT
SUMMARY
Freehold
Located opposite Finsbury Park Interchange station
providing quick and direct access to Central London
Occupies a prominent corner position with substantial
dual frontage onto Morris Place and Stroud Green Road
Developed in 2014 Arts Building provides 43,695 sq ft
(4,059.4 sq m) of office and retail accommodation
arranged over ground and 1st to 5th floors
Multi let to 9 tenants with a passing rent of
£1,409,197 per annum reflecting
a low £33.68 per sq ft overall
The ground floor is let in its entirety to Lidl on a new
25 year lease with a break at the end of year 20
Significant value enhancement opportunity through
asset management and a two storey roof top extension
totalling 8,998 sq ft (835.94 sq m), subject to
necessary consents
Energy Performance Rating of A (25)
Seeking offers in excess of £25,500,000 reflecting
an attractive NIY of 5.17% and a low capital value of
£584 per sq ft
6 EMIRATES
ARTS STADIUM
BUILDING iQ STUDENT FINSBURY PARK UNIVERSITY
ARTS BUILDING 7
CITY NORTH PARK THEATRE
(ARSENAL FC) ACCOMMODATION TRANSPORT OF THE ARTS
INTERCHANGE LONDON
COALFACE
← THE CITY
8 ARTS BUILDING 11 ARTS BUILDING 9
2 6
a d 1
Ro
n ox
L en
e
20 ac
5 Pl
10 ris FINSBURY
or
AD
9
M
3 PARK
RO
ST
19
RO
S
8
ER
22
U
D
ST
7
G
SI
RE
N
e
ac
VE
EN
rr
SE
Te
RO
ls
el 17
AD
W 13
18 21
14 12
4 FINSBURY PARK 21
INTERCHANGE BL
AC
KR
Fo
D O
C
nt
OA K
hil
R RO
lR
S
ER A
oa
T D
IS
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S
V EN
SE
15
16
Not to scale.
Indicative only.
LOCATION
RETAIL CAFES & RESTAURANTS LEISURE TRANSPORT
AD
1 Sainsbury’s 6 Costa 15 PureGym 21 Finsbury Park
RO
2 Crisis 7 Starbucks 16 Premier Inn Underground &
ON
The thriving North London Borough of Islington Situated on a prominent corner of Stroud Green Road National Rail Station
3 Superdrug 8 Pasta Remoli 17 Rowan Tenpins
entrance
ED
extends from Farringdon, the UKs Creative and Tech and Morris Place, The Arts Building is at the centre of 4 M&S Foodhall 9 My Cottage Café Bowling
22 Finsbury Park
ISL
Hub in the south, up to Highgate in the north, Finsbury Park within sight of Finsbury Park Rail 5 Godfreys & Co 10 Tenmaru 18 CineWorld
Interchange Bus
incorporating the ever expanding office district of Interchange and Underground Station. 19 More Yoga
11 The World’s End Station
Kings Cross. It is an established borough that is home 20 Park Theatre
In proximity is Telford Homes’s mixed use 12 Mento
to prosperous residential and commercial centres with
development, City North, which incorporates 13 Pret A Manger
a diverse population of 236,000 people.
residential, offices, a Cinema, M&S Foodhall and the 14 Klatsch
The Arts Building is located in Finsbury Park, fashionable Gymbox gym. Furthermore, cutting edge
approximately 2.6 miles to the north of Kings Cross at co working brands in the immediate vicinity include
the heart of the Borough of Islington. Finsbury Park is Dorrington Real Estate’s Coalface and Carlyle’s
an emerging part of North London; superb transport Uncommon.
links and a growing culture of cafés, theatres and
restaurants make it the ideal working environment.
STANSTED
←
10 ARTS BUILDING ARTS BUILDING 11
Central Line
Circle Line CROUCH
COMMUNICATIONS
HILL MANOR
Hammersmith HOUSE
& City Line
Metropolitan Line
Northern Line
Piccadilly Line
Victoria Line
Elizabeth Line FINSBURY
PARK
Mainline
FANTASTIC CONNECTIVITY TO CENTRAL LONDON London Overground
UPPER
HOLLOWAY
AND ITS INTERNATIONAL TRANSPORT HUBS
The Arts Building is situated opposite the Finsbury
Park bus, underground and rail interchange. It is a ARSENAL
200 metre walk to the new Finsbury Park underground
and National Rail station entrance accessed via the
impressive City North development. HOLLOWAY
ROAD
Finsbury Park offers direct access to London’s West
End, The City, King’s Cross, Farringdon, London Bridge, KENTISH
DRAYTON
TOWN
PARK
most of London’s major rail hubs and many commuter
towns such as Peterborough and Cambridge.
Journey times in minutes from
Finsbury Park Interchange: HIGHBURY &
ISLINGTON
3
King’s Cross
4
Euston
9
Oxford Circus
9
Farringdon
CAMDEN
ROAD
St Pancras
10 10 12 15
MORNINGTON ANGEL
CRESCENT
KING’S CROSS /
ST. PANCRAS
Old Street Green Park Victoria Moorgate
OLD STREET
EUSTON
17
Liverpool Street
18
Waterloo
19
London Bridge
45
Stansted Airport
FARRINGDON
MOORGATE
LIVERPOOL
TOTTENHAM STREET
COURT ROAD
HOLBORN
OXFORD LONDON BRIDGE
WATERLOO BANK
←
←
←
CIRCUS & GATWICK
12 ARTS BUILDING ARTS BUILDING 13
THE THE ARTS BUILDING
MEETS THE NEEDS OF THE
BUILDING MODERN WORKPLACE
Occupying a prominent position on the corner of The Arts Building meets the needs of the modern
Morris Place and Stroud Green Road, the building workplace. Located on the second floor is a large
comprises of 43,695 sq ft (4,059.4 sq m) of office and communal kichen with access to a large terrace
ground floor retail accommodation. overlooking a well maintained courtyard.
Developed in 2014 and designed by the award The prime ground floor retail unit has an extensive
winning practice DGA Architects, The Arts Building return frontage onto Morris Place and Stroud Green
provides 27,418 sq ft (2,553 sq m) of office Road.
accommodation arranged over the first to fifth floor.
The retail accommodation is accessed via a seperate
The Arts Building benefits from flexible floor plates entrance on Morris Place. The ground floor unit
ranging from 4,737 - 6,140 sq ft. Such flexibility sets comprises 15,231 sq ft (1,415 sq m). Offering impressive
the building apart, providing highly versatile office floor to ceiling heights measuring over 5m in sections,
space able to meet the diverse occupier requirements. the retail unit provides maximum efficiency and space
The office floors benefit from floor to ceiling windows for occupier needs.
allowing for an abundance of natural light to freely
flow throughout the building.
14 ARTS BUILDING ARTS BUILDING 15
ACCOMMODATION
The Arts Building has been independently measured by CDM
Surveyors in accordance with the RICS Code of Measuring Practice
(6th Edition) and comprises the following Net Internal Areas:
Floor Use NIA Terraces
sq ft sq m sq ft sq m
1,372 127.5
5th Office 4,737 440.08
553 51.4
Office 5,878 546.08 - -
4th
Kitchen 262 24.34 - -
3rd Office 5,815 540.23 - -
Office 4,919 456.99 - -
2nd*
Kitchen 606 56.30 - -
1st Office 5,264 489.04 - -
Retail 15,231 1,415.01 - -
Ground
Reception 983 91.32 - -
Total 43,695 4,059.40 1,925 178.90
* benefits from a large communal courtyard accessed from the kitchen.
16 ARTS BUILDING ARTS BUILDING 17
FLOOR PLANS SECOND FLOOR COMMUNAL
KITCHEN
SERVER
ROOM
GROUND FLOOR
RETAIL
OFFICE RECEPTION
OFFICE
THIRD FLOOR
COMMUNAL KITCHEN
LOADING/
DELIVERY
BAY
FOURTH FLOOR
COMMUNAL
LOADING
KITCHEN
BAY
OFFICE
RECEPTION
FIRST FLOOR FIFTH FLOOR
TERRACE
TERRACE
Not to scale.
Indicative only.
18 ARTS BUILDING ARTS BUILDING 19
TENANCIES
The Arts Building is multi-let at a passing rent £1,409,197 per annum reflecting a low passing rent of £33.68 per sq ft.
Tenant Floor Use Area Lease Lease Tenant Passing Rent Passing Rent Rent 1954 Comments
(sq ft) Start Expiry Break (per annum) (per sq ft) Review Act
The tenant’s repairing and decorating obligations are limited by reference to a
schedule of condition.
Confidential Tenant 5th Office 4,737 2-Jun-17 1-Jun-22 N/A £188,336.00 £39.76 N/A Outside
Service charge cap of £12.78 psf (cap increased annually by RPI).
Rent deposit of £113,001.60 plus VAT
Schedule 2 Limited 4th (part) Office 882 30-May-17 29-May-22 N/A £32,917.50 £37.32 N/A Outside Rent deposit of £8,229.37 plus VAT
Vendor guarentee 4th (part) Office 396 None None N/A £14,850.00 £37.50 N/A N/A 18 month rent, rates and service charge guarentee
Lease guaranteed by Learning Technologies Group plc.
Service charge cap of £11.17 psf (cap increased annually by RPI) up until 9-Jul-2021.
Preloaded Limited 4th (part) Office 2,207 10-Jul-15 9-Jul-25 10-Jul-21 £94,222.50 £42.69 10-July-21 Outside
Thereafter, the cap will increase to £12.50 psf (cap increased annually by RPI).
Tenant break option to be served with 9 months notice
Stepped rent: 27-Feb-2020 to 26-Feb-2022 £44,000 per annum, 27-Feb-2022 to
£88,000 per annum
The vendor is topping up to £88,000 per annum
Push PR Limited 4th (part) Office 2,393 7-Oct-19 26-Feb-25 N/A £88,000.00 £36.77 10-Feb-22 Outside
The tenant is to exercise their option to extend by 5 years no later than 26-Nov-2024
Service charge cap of £7.76 psf (cap increased annually by RPI).
Rent deposit of £30,812 plus VAT
Irving and Co Studios Service charge is capped at £5,016 pa (increased annually by RPI).
3rd (part) Office 412 27-Feb-20 26-Feb-21 N/A £17,765.00 £43.12 N/A Outside
Limited Rent deposit of £3,918.75 plus VAT
Service charge cap of £10.93 psf (to be increased annually by RPI).
RFK Architects
3rd (part) Office 942 18-Mar-16 17-Mar-21 N/A £34,237.50 £36.35 N/A Outside Rent deposit of £8,559.37 plus VAT
Limited
Licence to occupy part granted to Miura Limited
Service charge cap of £11.21 psf (to be increased by annually in line with RPI).
Further to a deed of variation, the tenant benefits from an eight month rent free
period from and including 24-Jun-2020 to and including 23-Oct-21 at half rent (in
exchange for the removal of the tenant break clause)
Film London 3rd (part) Office 4,461 4-Dec-15 3-Dec-25 N/A £169,053.50 £37.90 12-April-20 Outside
Vendor is topping the rent free period up
Licenses to occupy part granted to Pick Media Limited and to Teacher Development
Trust
Rent deposit of £42,263.38 plus VAT
Open market, upwards only rent review on 04-Oct-2022
Part of the area has a fixed rent
Brooks Murray
2nd (part) Office 2,222 4-Oct-17 3-Oct-27 4-Oct-22 £71,277.50 £32.08 10-April-22 Outside Service charge cap £10.58 psf (cap increased annually by RPI)
Architects Ltd.
Rent deposit £17,819 plus VAT
Underlease of part to David Warren in place from 16-Oct-2018 ending on 15-Sep-2021
Vendor guarentee 2nd (part) Office 2,697 N/A N/A N/A £101,137.50 £37.50 N/A N/A 18 month rent, rates and service charge guarentee
Vendor guarentee 1st Floor Office 5,264 N/A N/A N/A £197,400.00 £37.50 N/A N/A 18 month rent, rates and service charge guarentee
Agreement for lease dated 27-Apr-2020.
Subject to 25 years from 20 years less one
Lidl Great Britain Ground Service charge cap of £0.50 psf.
Retail 15,231 Agreement for actual day from term £400,000.00 £26.31 5 yearly Inside
Limited Floor Lidl can grant concessions up to 40% of the floor area.
Lease. completion. commencement.
5 yearly upward only to CPI annually compounded capped and collared at 3% and 1%
Recreational/
Legal & General Courtyard 3 month rolling The landlord is under an obligation to repair the part of the building beneath the
amenity N/A 03-Sep-15 999 yrs N/A N/A N/A Inside
Pensions Ltd Deck break demised property.
purposes
Total 41,844 £1,409,197 £33.6820 ARTS BUILDING ARTS BUILDING 21
COVENANTS TENURE
98.7% OF THE CONTRACTED INCOME IS TO TENANTS WITH The Arts Building is held freehold under title number
NGL431657.
CREDIT SCORE RATINGS OF EITHER LOW OR VERY LOW RISK.
Lidl (36.5% of the contracted income) Confidential Tenant
(17.19% of the contracted income)
PLANNING
Lidl was established in Germany with its first store
opening in 1973 and has grown to become one of The fifth floor is occupied by a successful technology
Europe’s leading food retailers. The first Lidl UK opened business. The company has a Creditsafe rating of very
in 1994 and today they operate from over 740 stores and low risk (82).
13 distribution centres across Great Britain employing
Further details on request.
over 20,000 people. Lidl is one of the UK’s fastest
growing grocery chains with a market share of 5.4%. This
growth is set to continue with four more warehouses in
the UK set to be opened by 2025. Lidl have outlined Film London (15.43% of the contracted income) The Arts Building is located in the Borough of
plans to open a further 50 stores a year. Islington. It is not listed and does not sit within a
Film London works to sustain, promote and develop London
Lidl UK GmbH (company number FC017929) have a as a global centre for content production. Investing in some conservation area.
Creditsafe Rating of Very Low Risk (100) and have of London’s most exciting and up and coming projects, Film
reported the following financial results for the last three London also helps to connect filmmakers with financers,
years: offer solutions to production issues and work with over 500 Not to scale. For identification purposes only. This plan is based
organisations and venues across London. Since 2018, Film upon the Ordnance Survey Map with the sanction of the controller
2019 2018 2017 of H.M. Stationery Office. Crown Copyright reserved
London has supported over 443 filmmakers with projects
Revenue £43,583,304,765 £39,497,771,683 £36,833,422,033 achieving a variety of success from International film festival
entries, to award wins and community and environmental
Profit £1,084,161,810 £1,103,016,798 £1,191,236,473
impact projects.
ASSET
Net Worth £9,864,586,904 £9,073,534,453 £8,819,407,486
Film London have a Creditsafe Rating of Low Risk (70).
www.lidl.co.uk www.filmlondon.org.uk
MANAGEMENT
The Arts Building offers a number of Asset Management opportunities the high level of which are:
– Let the vacant accommodation
– Remove the break options and extend the leases of the existing tenants
– Reconfigure the 2nd, 3rd and 4th floors to increasing the NIA significantly and creating attractive
floor plates for single tenants
– Undertake a full review of the service charge, reducing the overall occupational costs of the building
– Seek to move rents to £40 plus per sq ft
Indicative CGI of Lidl store front22 ARTS BUILDING ARTS BUILDING 23
FINAL IMAGES
DEVELOPMENT
OVERVIEW
PROPOSED SIXTH FLOOR
PLANS
PROPOSED 6TH FLOOR PLAN
POTENTIAL
Gibson Thornley architects have undertaken an initial
massing study which incorporates extending the 5th
floor onto the existing front terrace and the addition WC
of two new Garde A office floors. The illustrative STAIR
drawings take into consideration planning guidelines
LIFT
TERRACE
STAIR
and the impact of the surrounding area. OFFICE
The floor areas are as follows:
FLOOR NIA SQ FT NIA SQ M
7th 4,994 463.96 PROPOSED SEVENTH FLOOR
6th 5,285 490.99
5th 5,307 493.40
4th 5,878 546.08
3rd 5,815 540.23
2nd 4,919 456.99
1st 5,264 489.04
G 15,231 1,415.01
Total 52,693 4,895.23
WC
FINAL IMAGES STAIR
FRONT ELEVATION LIFT
STAIR
OFFICE TERRACE
Not to scale.
Indicative only.24 ARTS BUILDING ARTS BUILDING 25
MARKET
NORTH LONDON PRIME OFFICE RENTS
WOODFERRY
AND SALE VALUE PER SQ FT DOWN
CROUCH FINSBURY
COMMENTARY
HILL PARK
ST MANOR
RO
UD HOUSE
HIGHGATE GR
EE
CEMETARY
N
RO
O AD
AD
DR
HO
O
S WO
WN
GR
RN
ARCHWAY FINSBURY PARK BRO
SE
EEN
FINSBURY
Y
RENT: CAP VAL: PARK
RO
L AN
£33.68 £584
UPPER RENT: CAP VAL:
AD
HAMPSTED HOLLOWAY
INVESTMENT MARKET £40.00 £750
ES
HEATH A D CLISSOLD
PER SQ FT PER SQ FT RO PARK
S
ER
STPER SQ FT PER SQ FT
SI
H
E N
O
EV
LL
S
O
A significant weight of capital from both Overseas and UK based investors continues to view London
W
AY
ARSENAL
favourably. Furthermore, assets with strong underlying income from high quality covenants are trading at a HIGHBURY
RO
AD
premium. 36.5% of the contracted income at the Arts Building is on a 25 year lease to undoubted covenant Lidl. TUFNELL
H I G H B U RY PA R K
PARK
Prime yields for this level of income security are 3.75%. GOSPEL HOLLOWAY
PARK ROAD
Recent supermarket transactions: KENTISH
LOWER DRAYTON
TOWN
HOLLOWAY PARK
H
O
LL
HIGHBURY
O
W
PROPERTY DATE AREA PRICE NIY LEASE TERM RENT RENT KENTISH TOWN FIELDS
AY
(SQ FT) (YEARS) MECHANISM (£PSF)
RO
ISLINGTON
AD
CALEDONIAN CANONBURY
5 yearly ROAD
M&S, Harrogate U/O 33,086 £20,890,000 4.10% 18.5 £28.03
AD
RPI 1-4% RENT: CAP VAL:
RO
KENTISH TOWN
LIV
WEST
£47.50 £900
N
ERP O
HIGHBURY &
CHALK FARM
DE
Waitrose, Clapham 04/2020 28,983 £25,000,000 3.85% 10 OMV £28.00 ISLINGTON
M
YO R K
CA
PER SQ FT PER SQ FT
OL R
CH
ALK
Annual FA R
Tesco, Enfield 04/2020 94,420 £67,500,000 4.10% 16 £31.45 M CALEDONIAN ROAD
UP PE R ST RE
WAY
OA
RPI 0-5% & BARNSBURY
RO
D
AD
5 yearly CAMDEN
Aldi, Trafford 12/2019 18,568 £9,575,000 4.00% 20
RPI 1-3%
£23.16 CAMDEN ROAD BARNSBURY
ESSEX ROAD
ET
CA
5 yearly RENT: CAP VAL:
Aldi, Romford 09/2018 20,732 £11,000,000 3.45% 24.5 £19.54
MD
RPI 1-3%
£67.50 £1,200
AD
EN
HI
NIA N RO
PER SQ FT PER SQ FT
GH
ANGEL
ST
DO
KING’S CROSS
LE
MORNINGTON RENT:
ANGEL CAP VAL:
CA
CRESCENT
RENT: CAP VAL: £65.00 £1,300
I L L E R O AD
REGENT’S PARK
£85.00 £1,600 KING’S CROSS /
ST. PANCRAS
PE N TO N V PER SQ FT PER SQ FT
CIT
PER SQ FT PER SQ FT A D YR
O O AD
R
T ON
S
EU
EUSTON
CLERKENWELL
OFFICE OCCUPATIONAL MARKET
The Finsbury Park office market is robust with tight Finsbury Park offers cost effective accommodation
supply of Grade A accommodation and strong and is attracting a number of tenants moving from
demand from a mix of businesses including those surrounding office locations such as Angel, Kings
from the creative, media, tech and charity sectors. Cross, Camden and Farringdon, where occupational
costs have risen sharply in recent years making them
uneconomical. Most notably the prime rent in Kings
Cross is £85 per sq ft.26 ARTS BUILDING
FURTHER
INFORMATION
VAT ENVIRONMENT CREDENTIALS
The property has been elected for VAT and it is Energy Performance Rating of A (25).
anticipated that the transaction will be treated as a
Energy Performance Certificate and Recommendation
Transfer of a Going Concern.
Report available in the data room.
CAPITAL ALLOWANCES DATA ROOM
Capital Allowances are available by way of separate Access to the data room is available upon request.
negotiation.
PROPOSAL
OFFERS ARE INVITED IN EXCESS OF £25,500,000 SUBJECT TO CONTRACT
AND EXCLUSIVE OF VAT. THIS REFLECTS A LOW CAPITAL VALUE OF £584* PER
SQ FT AND A NIY OF 5.17%, ASSUMING PURCHASER COSTS 6.80%.
*inclusive of reception and communal kitchens
CONTACT
To arrange a viewing please contact:
Kyle Joss Shaun Simons Julian Meir
T: 020 7487 1958 T: 020 7871 7422 T: 020 7344 6647
M: 07712 241 851 M: 07788 423 131 M: 07928 654 929
kyle.joss@colliers.com shaun.simons@colliers.com julian.meir@colliers.com
Tom Butt Paul Rowntree Sam Stevens
T: 020 7858 6868 T: 020 7858 6863 T: 020 7858 6862
M: 07703 343 546 M: 07825 507 523 M: 07825 507 519
tb@kinglypartners.com pr@kinglypartners.com ss@kinglypartners.com
Colliers International and Kingly Partners give notice that these particulars are set out as a general outline only for the guidance of intending
Purchasers or Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending
Purchasers, Lessees or Third Party should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or
otherwise as to the correctness of each of them. No person in the employment of Colliers International nor Kingly Partners has any authority to
make any representation or warranty whatsoever in relation to this property. October 2020. www.cube-design.co.uk (Q4641)You can also read
