2 Copthall Avenue

London EC2R 7DA

Overview

  • Core City of London location, within 150 metres of the Bank of England.
  • Occupying a highly prominent corner position on Copthall Avenue.
  • Well located within 250 metres of the entrance to the Elizabeth Line at Moorgate Station.
  • Held on a long lease expiring on 25th June 2128. The gearing is 10% of rents received.
  • Multi-let to seven tenants, from diverse sectors including professional, fintech, banking, legal, healthcare and restaurant uses.
  • Total net internal area of 30,833 sq ft.
  • Weighted average unexpired lease term of 4.3 years until lease expiries and 3.4 years until breaks.
  • Topped up gross passing rent of £1,480,430 per annum, which reflects an average office rent of £53.06 per sq ft. The current net rent is £1,376,197 per annum.
  • 88% of the current gross income is from the offices, with the balance of 12% received from the retail/medical uses. (A3/D1).
  • Offers are invited in excess of £25,000,000 (Twenty-Five Million Pounds), subject to contract and exclusive of VAT, for our client's long leasehold interest.
  • This represents an attractive net initial yield of 5.41% and a capital value of £811 per sq ft, assuming acquisition costs of 1.80% through the purchase of the Luxembourg SARL.

Location

2 Copthall Avenue is located in the core of the City of London, the world's leading financial and insurance centre.

The property is situated on a highly prominent corner site where Copthall Avenue turns east to join Throgmorton Avenue. This is a key thoroughfare providing direct access south into the traditional core of the City around the Bank of England, or north to the larger developments around Broadgate and London Wall.

The building is situated adjacent to Drapers Gardens, the HQ of BlackRock, and within 200 metres of the European HQ of China Construction Bank Corporation. Other global occupiers nearby include ING, Prudential Regulation Authority, Deutsche Bank and Legal & General.

The immediate vicinity has seen continued investment in landmark developments such as the redevelopment of 60 London Wall (346,000 sq ft including 18,000 sq ft of retail). The redevelopment of Angel Court (311,600 sq ft including 16,000 sq ft of retail) to the immediate south has improved the public realm and enlivened the ground floor streetscape with high profile restaurants including Coya and Temper.

London Wall to the north and Moorgate to the west are key routes through the City, and the retail activity along these streets contributes to the vibrancy of the area. Operators include Pizza Express, Wasabi, Coco di Mama, Leon, Pod and Caffè Nero.

Situation

2 Copthall Avenue is located in the core of the City of London, the world's leading financial and insurance centre.

Description

2 Copthall Avenue is a highly prominent corner building, which provides 30,833 sq ft of office, retail, D1 and ancillary accommodation arranged over basement, ground and six upper floors.

The property is constructed of a reinforced concrete frame with concrete floor slabs. It was comprehensively redeveloped and extended in 2008-9 at which time the internal area was increased from circa 15,000 sq ft to 30,000 sq ft. At that time all fixtures, fittings and mechanical and electrical services installations were renewed.

Office floor plates are between 3,000 sq ft and 4,300 sq ft, arranged with the core located at the north eastern corner. The corner site and curved façade provide a long frontage of 135 ft (41 metres) with aspects to both the south and the west, providing an excellent level of natural daylight to all office areas.

The retail unit comprises a total of 3,156 sq ft mainly over the ground floor with a small basement kitchen, and the D1 unit comprises 3,162 sq ft mainly over the basement (with an entrance lobby at ground floor).

2 Copthall Avenue benefits from the following high specification:

  • Fully accessible raised access floors throughout the offices
  • Metal tiled suspended ceilings with LG7 compliant light fittings
  • Finished office floor to ceiling heights of between 2.62 m - 2.77 m
  • Sixth and fifth floors benefit from outside terraces
  • VRF air conditioning system
  • Male, female and disabled access WCs on each floor
  • One 10 person and one 13 person lift, both serving ground to sixth floors
  • Bicycle stands, 20 lockers and two showers at basement level

Accommodation

The property has been measured by PCA in accordance with the RICS Code of Measuring Practice (6th edition) and comprises the following net internal floor areas. The property has also been measured in accordance with IPMS. A copy of the survey is available on the data room.


Tenure

The property is held by way of a long leasehold from the Master Wardens and Commonalty of Freemen of the Art of Mystery of Clothworkers of the City of London, on a lease expiring on 25th June 2128 (approximately 110 years unexpired).

The current head rent payable is £104,233 per annum, which is based on a gearing of 10% of rents received.

Tenancy

2 Copthall Avenue is multi-let to five office tenants, one retail tenant and one D1 tenant, producing a gross annual topped up rental income of £1,480,430 per annum, equating to a low overall average rent of £48.01 per sq ft.

The income from the office tenants equates to 88% of the total passing rent, at an average of £53.06 per sq ft. There is one vacant office floor totalling 4,364 sq ft. The Vendor will provide an 18 month rental top up.

The retail and D1 units are both let on leases until July 2026 and make up the remaining 12% of the rent passing.

Assuming completion of the Allsop LLP reversionary lease, the overall weighted average unexpired lease term is 4.3 years until lease expiries and 3.4 years until breaks (there is one lease break on the fourth floor).

The service charge for the year ending 2018/2019 is estimated to be £9.50 per sq ft.



Headlease Summary

Date
18th July 2002.

Landlord
The Master Wardens and Commonalty of Freemen of the Art or Mystery of Clothworkers of the City of London.

Term
Commencing on 18th July 2002 and expiring on 25th June 2128.

Demise
The property, land and buildings known as 2 Copthall Avenue.

Rent
10% of rents which are paid to or received or deemed to be received by the Tenant and also any Notional Annual Rent (the Open Market Rental Value of any parts of the Demised Premises occupied and used by the Tenant).

A Completed Rental Statement has to be given for each period of 12 months ending on the 28th September each year.

Insurance
The Tenant covenants to insure the Demised Premises.

Repair
The Tenant covenants at all times during the term to keep in good and substantial repair and condition and if necessary in whole or in part rebuild replace or renew as necessary the Demised Premises and the fixtures and fittings of the Tenant.

To pay on demand a fair proportion of the sums payable by the Landlord of keeping in good and substantial repair and condition all ways, roads, pavements, conduits used by the owner or occupier of the Demised Premises.

User
Use of the demised premises as offices (and uses ancillary thereto to include management and service accommodation).

Not to use as a betting shop.

Assignment
Assignment of the whole with the previous consent of the Landlord (such consent not to be unreasonably withheld), and the Tenant shall enter into an authorised guarantee agreement.

Alterations
Consent shall not be required for non structural alterations and additions to accommodate services.

No demolition, alterations and additions to the exterior or main structure without the prior consent of the Landlord (such consent not to be unreasonably withheld).

There is a prohibition of any alteration or addition which would: (i) have the effect of reducing the Gross External Area of the building by more than 10%, or (ii) result in the building forming part of any development, alteration or addition of any land not demised under the headlease.

The headlease can be found in the data room.

Planning

The local Planning Authority is the City of London. The property is not listed, but it does lie within the Bank conservation area.

VAT

The property is elected for VAT.

Environmental Performance

The property has an EPC rating of D (80).

Capital Allowances

It is anticipated that any capital allowances may be available to qualifying parties. Further details of these, if applicable, are available in the online data room.

Data Room

Access to an online data room containing further information is available on request.

Proposal

Offers are invited in excess of £25,000,000 (Twenty-Five Million Pounds), subject to contract and exclusive of VAT, for our client's long leasehold interest in 2 Copthall Avenue.

This represents an attractive net initial yield of 5.41% and a capital value of £811 per sq ft, assuming acquisition costs of 1.80% through the purchase of the Luxembourg SARL.

2 Copthall Avenue 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

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NET INITIAL YIELD:
5.41%
PRICE:
£25,000,000
REGISTER INTEREST
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