55 Gracechurch Street is situated in the heart of the City of London, the historic epicentre for trade and commerce in the capital. The property is within 400 metres of both the Bank of England and Leadenhall Market, traversing the border of London's globally recognised financial district and its renowned insurance quarter.
The 0.38 acre freehold site occupies a prominent position on the east side of Gracechurch Street, a key thoroughfare from outside the City through EC3 to London Bridge. The property is located close to the intersection of Gracechurch Street, Fenchurch Street and Lombard Street, and is within 40 metres of 20 Fenchurch Street (the Walkie Talkie).
In addition to attracting some of the world's leading organisations, the micro-location offers an unrivalled retail position within close reach of international retailers such as Gap and Marks & Spencer. High end restaurants, bars and boutiques are also located nearby in Leadenhall Market and the Royal Exchange.
Significant developments have been completed nearby in recent years. Local landmark towers include The Leadenhall Building, 20 Fenchurch Street and W.R. Berkley's 52 Lime Street which is due to be completed in 2019. These schemes have attracted some of the world's leading occupiers such as AON, RSA Group, Markel and Clydesdale Bank plc.
55 Gracechurch Street was developed by Land Securities to an institutional standard and provides 74,622 sq ft of well specified office, leisure and ancillary accommodation arranged over basement, lower ground, ground and six upper floors.
The property provides open plan floorplates which range in size from circa 5,000 sq ft to 11,000 sq ft. The floors are regularly configured and benefit from excellent levels of natural light.
The elevation fronting Gracechurch Street is finished with Portland stone and granite. The side elevations are finished with metal and glass curtain walling. Access to the property is via a large contemporary reception area which leads to four thirteen-person passenger lifts. A rear entrance also provides separate access onto Brabant Court and Philpot Lane. There is a gym and a car park in the basement. These are accessed via St. Benet's Place and Talbot Court respectively.
Large Freehold Site.
The property is held freehold under title number NGL 435622.
The property occupies a large freehold site extending to approximately 0.38 acres (0.15 ha).
Low overall passing rent of £40.68 per sq ft
55 Gracechurch Street is let to an enviable list of tenants from the insurance, leisure and professional industries, including Royal London, Shepherd Compello and Fitness First.
The property is multi-let to three office tenants and one leisure tenant (by way of eight leases). The newly refurbished 5th floor has recently been let to Royal London at a rent of £59.00 per sq ft.
The weighted average unexpired lease term is circa 4.3 years to expiries. Total income, assuming a vendor top-up in respect of the vacant car parking and storage, is £3,035,448.50 per annum equating to a low overall rent of only £40.68 per sq ft. This compares favourably to prime City of London rental levels currently in excess of £65 per sq ft.
Our client is seeking offers in excess of £60,000,000 (Sixty Million Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 4.73% (assuming full purchaser's costs) and a low capital value of c.£805 per sq ft.