The Estate is situated in heart of the City of London, directly opposite Lloyd's of London, the world's leading specialist insurance market. The buildings occupy a highly prominent position with substantial frontages onto Lime Street and Fenchurch Avenue.
Many of the world's most pre-eminent insurance businesses have entered into long-term lease commitments and freehold acquisitions within the immediate vicinity. Notable examples include Willis, AON, RSA, Amlin, SCOR and WR Berkley. The critical mass of insurance industry expertise within the vicinity of Lloyd's will undoubtedly ensure the success of this district for many decades to come.
In recent years, a number of internationally acclaimed developments including The Scalpel, The Leadenhall Building, 20 Fenchurch Street and Plantation Place have attracted corporates, financial services providers, law firms, accountancy businesses and tech firms into the area. This thriving commercial district, once the preserve of insurance and shipping industries, is now more diversified than at any point in its history.
The properties are held by way of a single headlease from the Carpenter's Company which expires on 29/09/2156, offering circa 137 years unexpired.
The Freeholder is entitled to 15.00% of rents receivable from underletting(s), subject to a minimum rent of £355,000 per annum. The minimum rent increases by £25,000 per annum on 29/09/2031 and twenty-five yearly thereafter.
A summary of the main headlease terms can be found within the marketing particulars.
The Estate is let in accordance with the Tenancy Schedules, which can be found within the marketing particulars.
The gross rent is £6,088,219 per annum exclusive equating to £50.17 per sq ft overall in respect of the tenanted accommodation. Following deduction of the headrent, the net rental income is £5,174,986 per annum exclusive.
We would draw your attention to the following:-
The Estate is not elected for VAT.
Offers in excess of £72 million (Seventy-Two Million Pounds) are invited, subject to contract, for the long leasehold interest.
This reflects a net initial yield of 6.73%, assuming purchaser's costs of 6.80% and an attractive capital value of £592 per sq ft.