1 King's Arms Yard occupies a prime corner site on King's Arms Yard and Tokenhouse Yard of approximately 0.24 acres.
This highly desirable location is at the very heart of the City of London, just off the junction of Gresham Street, Moorgate and Lothbury. The Bank of England, in full view of the property, is only 50m to the south and Guildhall is approximately 150m to the west.
The immediate area is the favoured location for many of the City's global occupiers, including Commerzbank, Lloyds Bank, BNP Paribas, Legal & General, Standard Chartered Bank, Bank of China, Bloomberg and Investec. All of these major companies are headquartered within 500m of the property.
The immediate surrounding area and wider City core have seen a significant increase in leisure and dining provision recently, particularly with the opening of The Ned in 2017. The Ned offers a 250 bed hotel plus ten restaurants and a members club, all within the restored Grade I listed Midland Bank building on the Bank interchange, a short walk from 1 King's Arms Yard.
Newly developed in 2009 by Ardstone Capital and designed by renowned architect Rolfe Judd.
1 King's Arms Yard provides approximately 56,000 sq ft of high quality Grade A office and ancillary accommodation arranged over basement, lower ground, ground and six upper floors.
Floor plates are regular and range from approximately 3,500 sq ft 7,500 sq ft with only a single line of columns making them suitable for both open plan and cellular use. The floors benefit from excellent natural light with windows on three elevations, providing stunning views over the Bank of England. The 6th floor benefits from a large rooftop terrace. Secure bicycle storage and shower facilities are located in the basement.
The Property is held on a long leasehold basis from The Wardens and Commonalty of The Mystery of Mercers of the City of London. The lease is for a term of 140 years expiring in April 2141. The head rent payable is fixed at £5,000 per annum, with a fixed uplift of a further £5,000 every 25 years (next uplift due in 2026).
1 King's Arms Yard is multi-let to eight tenants from the financial and professional services sector. The offices are fully let, with only two small units at basement level currently unoccupied (accounting for less than 1% of the income for the asset).
The total gross passing rent is £2,763,197 per annum, including top-ups, which equates to an overall rent of £49.28 per sq ft, an attractive level in a market where prime rental levels are currently in excess of £65.00 per sq ft.
The property provides medium term income with a weighted average unexpired lease term (WAULT) of approximately 3.1 years to expiries.
There is a rent review on the fifth floor (31 May 2018) which is currently passing off a low rent of £47.08 per sq ft. Recent reviews in the building have settled at net effective rents from c.£57.00 to £58.00 per sq ft suggesting an uplift on this floor which will enhance the level of rental income and improve the running yield.
It is proposed the vacant storage and office units at basement level will be guaranteed by the vendor at a rent of £15.00 and £20.00 per sq ft respectively for a duration of 18 months.
The property has been elected for VAT.
Offers are invited in excess of £58,300,000 (Fifty-Eight Million, Three Hundred Thousand Pounds), subject to contract and exclusive of VAT, for our client's long leasehold interest in 1 King's Arms Yard.
This represents an attractive net initial yield of 4.65% and a capital value of £1,040 per sq ft, assuming acquisition costs of 1.80% through the purchase of the Luxembourg SARL.
1 King's Arms Yard is part of the Amundi Collection of eight UK properties located in London, Glasgow and Cardiff. These assets are available individually or as a portfolio.
Full details can be found at www.amundicollection.com