BONHILL BUILDING LONDON EC2
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BONHILL BUILDING
LONDON EC2
BONHILL BUILDING
15 BONHILL STREET
LONDON EC2
LONDON 10
L O C AT I O N / S I T U AT I O N 12
LOCAL OCCUPIERS 14
LOCAL DEVELOPMENTS 16
CONNECTIVITY 18
DESCRIPTION 22
S P E C I F I C AT I O N 24
A C C O M M O D AT I O N 30
TENURE 34
TENANCY 36
TENANCY SCHEDULE 38
TENANT COVENANTS 40
ASSET MANAGEMENT 42
M A R K E T C O M M E N TA R Y 44
F U R T H E R I N F O R M AT I O N 46
C O N TA C T S 48
INVESTMENT
SUMMARY
• Freehold
• Extremely well located approximately 500 metres from Liverpool
Street and Moorgate Stations, providing excellent mainline and
underground connectivity across Central London, additionally set
to benefit from the opening of Crossrail in 2019
• This location attracts both traditional City occupiers and also the
creative and tech industries more associated with the Shoreditch
market, thus providing a wealth and depth of potential tenants
• Comprises 114,543 sq ft (10,641 sq m) of Grade A offices, data
centre, retail and ancillary accommodation arranged over lower
ground, ground and six upper floors
• Highly flexible and efficient floorplates ranging from 6,600 sq ft
to 16,500 sq ft, with attractive terracing on the 4th, 5th,
2 and 6th floors 3
• Wired Certified Gold, demonstrating its superb digital
infrastructure and connectivity
• All office floors, reception and common parts have benefited
from high quality rolling refurbishments, finalised in 2017
• 100% let to seven tenants including Nexmo Limited, Iomart
Group Plc and Crabtree & Evelyn
• The property provides a rental income of £6,147,708 per annum
equating to an overall reversionary rent of £54.47 per sq ft
• Weighted average unexpired lease term of approximately 8 years
• There are numerous asset management opportunities to increase
the rental income and a longer term potential to add additional
massing, subject to planning
• Further information available at bonhillbuilding.com
Offers are invited in excess of £110,000,000 (One Hundred and
Ten Million Pounds) for the freehold interest, subject to contract and
exclusive of VAT. An asset purchase at this level reflects an attractive
net initial yield of 5.23%, net of full standard purchaser’s costs of
6.79%, and a low capital value of only £960 per sq ft.
L I V E R P O O L ST R E E T
4 M O OR GAT E 5
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CONNECTIVITY
B R O A D G AT E E S TAT E
LEADING GLOBAL OCCUPIERS WHO ARE
COMMITTING LONG TERM TO LONDON INCLUDE:
LONDON
LONDON IS ONE OF EUROPE’S MAJOR GATEWAY CITIES, AND IS ONE OF THE
WORLD’S MOST RECOGNISABLE CULTURAL AND FINANCIAL CENTRES.
70% OF FTSE 100
GFCI 23 GFCI 22
CENTRE RANK RATING RANK RATING
and 100 of Europe’s largest companies
London 1 794 1 780 are headquartered in London London’s Stock Exchange is the world’s
New York 2 793 2 756 3rd largest exchange with a market
Hong Kong 3 781 3 744
Singapore 4 765 4 742
capitalisation of £6.2 trillion
Tokyo 5 749 5 725
10 Shanghai 6 741 6 711 11
Toronto 7 728 7 710
London is also Europe’s
San Francisco 8 726 17 693 leading media and
Sydney 9 724 8 707
technology hub, with over
Boston 10 722 19 690
Beijing 11 721 10 703 300,000 people employed
Melbourne 12 720 13 696 in the sector London is the only Global LONDON OFFICE HOURS
City with two of the top 10
London is consistently at the centre of global capital OVERLAP WITH
globally ranked universities.
flows with The Global Financial Centres Index in 2018
(QS World University 99% OF GLOBAL GDP
ranking London and New York as the world’s two leading
Rankings 2019)
financial centres with 750,000 people in financial and
related professional services
OLD STREET / SHOREDITCH
L O C AT I O N
FINSBURY SQUARE
THE BONHILL BUILDING IS LOCATED IN LONDON’S
EC2 POSTCODE, ONE OF THE CITY’S MOST DIVERSE AND ATTRACTIVE
LOCATIONS, SPREADING FROM THE CITY CORE AT THE BANK OF S I T U AT I O N
ENGLAND TO OLD STREET’S ‘SILICONE ROUNDABOUT’ IN THE NORTH.
The Bonhill Building is situated on the north side of Bonhill Street
and benefits from frontages onto both Bonhill Street and Epworth
Already one of London’s most dynamic markets, The property benefits from being close to Street. The property is within close proximity to both Finsbury
the area is set to be further enhanced by the The Broadgate Estate, a 32-acre estate which is Square and the Broadgate Estate and is also situated within a short
opening of The Elizabeth Line (Crossrail) during one of the largest pedestrianised master planned walking distance of Old Street’s “Silicon” roundabout, the heart of
2019 at Liverpool Street and Moorgate Stations, office led schemes in central London. The Estate London’s thriving tech scene.
both of which are situated approximately 500m totals approximately 4.85 million sq ft, and is a
Upon completion in 2020, the adjacent building 20 Bonhill Street
from the property. This location is therefore vibrant mix of offices, retail, restaurants, bars,
will be the latest high profile office scheme within the immediate
expected to be one of the principle areas for future gyms and other leisure uses.
location following the likes of Principal Place, 70 Wilson Street and
rental growth in Central London.
12 The Bonhill Building is located within close proximity C-Space. This development is set to further enhance Bonhill Street
Being located close to the border of the Core City to Old Street Roundabout which, in 2019, will and the micro location.
with Shoreditch, the area attracts companies from undergo a major public realm overhaul set to
the traditional financial, legal and professional dramatically transform the area. This will create
sectors including RBS, Deutsche Bank and Mayer a new public space with better pedestrian access
B R O A D G AT E E S TAT E
Brown. However, the occupier base is wide and to Old Street station via a new main entrance.
diverse due to the “Tech Belt” and “Crossrail”
effect with major tech tenants such as Google,
Amazon and Microsoft within close proximity
to The Bonhill Building.
BANK OF ENGLAND 100 LIVERPOOL STREET
11/01
14 Winter/Spring 2014
15
The Connected INsIde
Why We Launched the
Future is Now
R/GA Connected devices
Accelerator
designing For Google
Glass: six Things To
Consider
Retail Goes Hyperlocal
Mindful datapoints and
The Lost Art of Restraint
Features:
Quantified Self,
Qualified Life
Design Considerations
for Wearable Tech
Building Connected
Ecosystems
The Value Of Big Data
LOCAL OCCUPIERS
Hoxton
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LOCAL DEVELOPMENTS
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2 3 OLD STREET
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C I T Y
S T
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SHOREDITCH
12 10 4 HIGH STREET
R O A D
B ROA D G AT E ES TAT E, EC 2 P R IN C IPAL TO WE R , PRI NCI PAL PLACE,
2 P R IN C IPAL P LAC E , E C 2 111- 113 W ORS HI P 11
R K E
N W E L L R O A D Bunhill Fields BONHI LL
S T
Developer: British Land & GIC C L E S TREET, EC2 Burial Grounds
Size: 32 Acre Commercial Estate 2
Developer: Brookfield
DOffices, retail, bars, restaurants Developer: BrookfieldFortune Street
C L
E R K E
N W E L L R O A Size: 250 New Residential Unit Scheme
Size: 600,000 sq ft office Park
scheme
3
(250,000 sq ft)
Completion: Q2 2019 Completed: Q3 2017 9 8
Amazon Headquarters
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Developer: McLaren Property Developer: Workspace Size: 700,000 sq ft office scheme Circus
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ONE NEW 73- 75 EPW ORTH HOU S E, ONE CROW N PLACE, EC2 W HI TE C OL L A R T H E BOW ER ,
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Developer: Threadneedle Developer:
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Size: 70,000 sq ft office scheme Developer: Max Barney Estate
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Developer:
RE London & Regional Size: 246 resident units, LLOYDS Developer: Helical
H ST OF LONDON
Completed: 2017 Developer: Resolution Size: 80,000 sq ft office schemeY A R D Size: 220,000 sq ft of commercial OR
IA Size: 62,789 sq ft office scheme
MANSION 160,000 sq ft of offices Developer: Derwent London Size: 175,000 sq ft office scheme
CT
VI HOUSE Q2 2018 Completion: Q1 2021
E L L
Size: 245,000 sq ft Office Scheme Completion: 2020 space and 412 residential units N Completed: Size: 237,000 sq ft office scheme Refurbished: Q3 2018
T
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Completion:
N N Q4 2021 QU
Completed: 2015 Completed: Q3 2017
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MCANARY WHARF
CONNECTIVITY
LIVERPOOL STREET
MOORGATE
TOTTENHAM HEATHROW
COURT ROAD BOND STREET PADDINGTON AIRPORT
THE BONHILL BUILDING IS SITUATED IN ONE OF
THE ELIZABETH LINE (CROSSRAIL)
LONDON’S MOST WELL CONNECTED LOCATIONS.
OLD STREET The location is set to be greatly enhanced by the opening of the
The property benefits from exceptional connectivity, being within close 4 minutes Elizabeth Line in Q4 2019. This new high speed train line can be accessed
proximity to Liverpool Street, Moorgate and Old Street underground and
at both Moorgate and Liverpool Street Stations which are both within
mainline stations. Liverpool Street Station is already one of London’s major
close proximity. This will provide direct links to the West End (7 mins),
transport hub’s servicing over 67 million travellers a year, which is set to
Canary Wharf (6 mins) and London Heathrow (33 mins).
increase further following the completion of Crossrail.
The Elizabeth Line is Europe’s largest infrastructure project and is set to
PUBLIC TRANSPORT ACCESSIBILITY transform Central London’s transport network with a high speed rail link
LEVEL (PTAL) running beneath Central London, connecting Reading and Heathrow in
the West to Canary Wharf and Shenfield in the east. Moorgate Station
The Bonhill Building benefits from the highest possible
MOORGATE and Liverpool Street Station will be a major interchange between
5 minutes
PTAL rating of 6b, indicating the building’s excellent Crossrail, London Underground and National Rail services.
access to local public transport connections.
STRATFORD
LIVERPOOL 8 minutes
STREET
6 minutes
HEATHROW PADDINGTON BOND STREET TOTTENHAM FARRINGDON WHITECHAPEL
(AIRPORT) 10 minutes 7 minutes COURT ROAD 2 minutes 2 minutes
33 minutes 4 minutes
CANARY WHARF
6 minutesTHE
BUILDING
21
DESCRIPTION
S P E C I F I C AT I O N
A C C O M M O D AT I O NDESCRIPTION
THE BONHILL BUILDING PROVIDES
APPROXIMATELY 114,543 SQ FT OF
REFURBISHED OPEN PLAN MODERN
OFFICE ACCOMMODATION ARRANGED
OVER LOWER GROUND, GROUND AND
SIX UPPER FLOORS.
The office floors have all been fully refurbished and fitted
22 out to a modern Grade A standard. All floors benefit from 23
excellent levels of natural light from all sides with typical
upper floorplates ranging from 6,600 sq ft to 16,500 sq ft.
The fourth, fifth, and sixth floors benefit from large terraces
and offer impressive views across the City of London and
Shoreditch. The fifth floor office is further enhanced by an
attractive winter garden.
The property benefits from an impressive newly refurbished
reception area which looks out over a landscaped central
courtyard that houses Dolcezza, a boutique coffee shop
with an outside seating area.S P E C I F I C AT I O N
Following the completion of the rolling refurbishment programme finalised
in 2017, a specialist mechanical and electrical survey suggests lifespans
of between 10 to 20 years remaining across the major components.
The specification includes the following:
• Grade A office floors of between 6,600 to 16,500 sq ft
• 2.70 metre floor to ceiling heights, 4.4 metres on the 6th floor
• Modern VRF air conditioning
• 150mm fully accessible raised flooring
• 5 x 13-person passenger lifts, 1x goods lift
• Wired score certified “Gold”
• Bike storage and shower facilities
• 12 secure gated parking spaces
24 25
• Excellent levels of natural light
• Roof terraces on 4th, 5th and 6th floors
WIRED CERTIFICATION PROVIDES THE GLOBAL BENCHMARK
FOR DIGITAL CONNECTIVITY IN COMMERCIAL OFFICE BUILDINGS.
Highlights include:
The Bonhill Building has five independent Fibre providers
• Why this matters - this provides substantial choice for occupiers around their own (existing
or potential) service and options for backup provision. It also creates a competitive pricing
environment providing occupiers with access to the best available rates.
Two diverse points of entry
• Why this matters - this reduces the risk of single points of network failure and provides
occupiers with resiliency. This will allow sophisticated occupiers to occupy the building.
Telecommunications equipment kept in a secure location
• Why this matters - this mitigates the risk of physical damage or unauthorised access
to equipment and tenant data. Physical security of a building’s telecoms equipment
is a key consideration for occupiers.26 27
THE FOURTH, FIFTH AND SIXTH FLOORS BENEFIT FROM EXTENSIVE TERRACES
OFFERING IMPRESSIVE VIEWS ACROSS THE CITY OF LONDON AND SHOREDITCH.
THE FIFTH FLOOR BENEFITS FROM A
VERY ATTRACTIVE WINTER GARDEN.A C C O M M O D AT I O N
2ND FLOOR
The building has been independently measured by Plowman Craven in accordance with the RICS Code of
Measuring Practice 6th edition and comprises the following net internal areas. The property has also been
measured in accordance with the International Property Measurement Standards IPMS3, details of which
are available in the data room.
THE NET INTERNAL AREAS ARE AS FOLLOWS:
F L OOR US E ARE A (SQ M) A RE A ( S Q F T ) N IA
Sixth Office 613.3 6,601
Fifth Office 1,200.8 12,925
Fourth Office 1,254.1 13,499
Third Office 1,508.6 16,238
Second Office 1,510.3 16,257
First Office 1,537.0 16,544
Ground Reception 99.8 1,074
Ground Retail 41.9 451
Ground Data Centre 1,339.8 *14,422
Lower Ground Data Centre 1,504.2 *16,191
Lower Ground B.M.A 31.7 341
30 TOTAL 10,641 114,543
31
*Areas subject to further verification by Plowman Craven
Note: There is an additional 1,927 sq ft of exclusive tenant plant room located in the courtyard on which there may be a longer term
opportunity for alternative use. (Area subject to final verification by Plowman Craven).
6TH FLOOR
TERRACE
TERRACE
Plowman Craven survey available on bonhillbuilding.comTENURE
TENANCY
TENANT COVENANTS 33
M A R K E T C O M M E N TA R Y
F U R T H E R I N F O R M AT I O N
C O N TA C T STENURE
The Bonhill Building is held freehold under title number LN191763 and
occupies a substantial site of approximately 0.66 acres (0.27 hectares).
62 to
54 to 60
72
Victoria
3 to 29
Chambers
2 to 11
1
47
CR
17 18 20
41
ET
41
BP
TRE
CLERE STREET
60
52
ES
50
AC L
52 to
BON
1 to 15
44 to 48
ent
Monum
58
ERN
HILL
STRE
39
T AB
PLA
TINA ET
37 to 45
STR
46 to
EET
34
50
El Sub Sta
32
29
to
37
FB
LB
36 to
28
PH
44
13 to 17
30
3
Training
Centre
EET
24
EPWORTH STR
35
26
16 to 22 2 to 8
18.5m
to 16
10
24
8
34
PH
22
32
27 to 33
30
12
25
21 to
20
19a
PAUL STREET
11 to 21
18
14
28
to
16
17 16 15 14 EPW
ORT
BONHILL STREET
H ST
1 to 3
4 to 8
9
REET
Govt
11
Hotel
9
Offices
7
4 to 1
4
3
Chy
CR
6
LB Bdy
Boro Const &
4
Henry Thomas House
1 to 3 5 to 11 13 to 17 31 to 41 Ciena House
21 25
2
43
59 to 65 65a 67 t
WORSHIP STREET
20 to 26 28 30 34
44
50
72
* For indicative purposes only.
69TENANCY
The property is multi-let to five office tenants, one retail tenant and one data centre operator at a total rent of £6,147,708
per annum equating to an average passing rent of only £54.47 per sq ft overall. The building provides an average weighted
unexpired lease term of approximately 8 years to expiries and 5.65 years to breaks.
LEVEL 6 ITRS GROUP LIMITED
LEVEL 5 C R A B T R E E & E V E LY N
LEVEL 4 M I N D C A N D Y LT D
LEVEL 3 N E X M O LT D
LEVEL 2 N E X M O LT D
36 LEVEL 1 M E R R I L L C O R P O R AT I O N LT D 37
G R O U ND C A R PA R K I N G I O M A RT G R O U P P L C C AFÉ
BASEMENT I O M A RT G R O U P P L C
ITR S GR OUP LTD
(6.4% of rental income)
M I ND C A NDY LI M I T ED
(13.0% of rental Income) NEXMO LTD
(31.6% of the rental income)
CR A BT REE & EVELYN
(OVERS EA S ) LT D
(14.1% of rental income)
IOMART GR OUP P LC
MERRI LL C ORPORAT I ON LI M I T ED (19.5% of the rental income)
(15.3% of the rental income)TENANCY SCHEDULE
FLO O R SIZE TE N A N T L E A S E S TA RT RENT REVI EW B REAK L EAS E EXP I RY RENT PA P ER S Q FT COMMENTS
6th + 2 CPS 6,601 ITRS Group Limited 20/02/2015 20/02/2020 - 19/02/2025 £395,400 £59.90
5th + 2 CPS 12,925 Crabtree and Evelyn (Overseas) Ltd 04/04/2018 04/04/2023 - 03/04/2028 £863,119 £66.78 Guarantee from Nan Hai Corporation.
Rent deposit - £1,035,743
Initially 12 months’ rent free, then 15 months’ half rent (£431,559 pa).
9 months’ half rent after the rent review.
Vendor to top up initial rent free
4th 13,499 Mind Candy Limited 15/09/2012 - - 14/09/2022 £777,572 £57.60 Rent deposit - £669,815
Mind Candy have sub let part of the 4th floor to Lantum, a medical recruitment
and networking company.
3rd 16,238 Nexmo Limited 04/01/2017 04/01/2022 04/01/2022 03/01/2027 £966,637 £59.53 Guarantee from Vonage Holdings Corp.
Rent deposit - £289,991
The tenant benefits from an additional 7 months’ rent free if the break option
is not operated.
Part 2nd + 1 CPS 10,039 Nexmo Limited 02/07/2018 04/01/2022 04/01/2022 03/01/2027 £625,642 £62.32 Guarantee from Vonage Holdings Corp.
Rent deposit - £187,693
38 39
The tenant benefits from an additional 11 months’ rent free if the break option
is not operated.
Part 2nd 5,959 Nexmo Limited 19/05/2017 04/01/2022 04/01/2022 03/01/2027 £350,812 £58.87 Guarantee from Vonage Holdings Corp.
Rent deposit - £105,244
The tenant benefits from an additional 8 months’ rent free if the break option
is not operated.
1st + 2 CPS 16,544 Merrill Corporation Ltd 24/03/2016 24/03/2021 24/03/2021 23/03/2026 £942,827 £56.99 Guarantee from Merrill Communications LLC.
Rent Deposit - £565,696
Tenant Break Option subject to a tenant’s 7 month rent penalty.
Ground & Basement + 3 CPS 30,613 Iomart Group plc 04/04/2007 24/06/2025 - 23/06/2030 £1,200,000 £39.20 Rent deposit - £783,870.
Reinstatement deposit - £2,000,000
The current passing rent is £940,000. The tenant has signed a reversionary
10 year lease from 24/06/2020 at £1,200,000 per annum, subject to an RPI linked
rent review in 2025, collared and cap at 2% - 4%.
Vendor to top up rent to 2020 rental level
Ground courtyard – café 451 Dolcezza Bonhill Limited 10/02/2014 10/02/2019 25/12/2020 31/12/2025 £20,000 £44.35 Mutual Break Option at 25/12/2020 on 3 months’ notice for the tenant
and 6 months’ notice for the Landlord. Landlord must pay tenant an amount equal
to twice the yearly rent if exercised. The February 2019 rent review is outstanding.
1 car space 1 Mind Candy Limited 21/12/2012 21/12/2018 - 14/09/2022 £2,807.41 £2,807.41 The initial licence fee of £2,500 is subject to annual RPI increases on 21 December
each year. The December 2018 rent review is outstanding.
1 car space 1 Mind Candy Limited 04/10/2012 10/10/2019 - 14/09/2022 £2,891.90 £2,891.90 The initial licence fee of £2,500 is subject to annual RPI increases on
10 October each year.
Electricity Sub-Station - London Power Networks Plc 25/12/1962 - - 24/12/2022 £0 £0.00
Total 112,869 £6,147,708.31 £54.47
* All leases are granted outside of the provisions of the 1954 Landlord & Tenant Act.TENANT
COVENANTS
NEXMO LIMITED IOMART GROUP PLC MERRILL CORPORATION CRABTREE & EVELYN MIND CANDY LIMITED ITRS GROUP LIMITED
(31.6% of the rental income) (19.5% of the rental income) LIMITED (OVERSEAS) LTD (13.0% of rental Income) (6.4% of rental income)
(15.3% of the rental income) (14.1% of rental income)
Nexmo Limited is a subsidiary of Vonage Iomart Group Plc was established in Mind Candy is a British entertainment ITRS Group Limited was founded in 1997
Holdings Corp and was established in 1998 and was one of the first companies Merrill Corporation was established in Crabtree & Evelyn was established in company established in 2004. Mind Candy and provides real-time insight into the
2010. Nexmo develops and markets to deliver cloud computing in the UK. 1967 and is a leading global Software as Massachusetts, USA in 1972 and are an creates cartoon brands with online gaming end-to-end health, performance, and
communication application programming Named the Megabuyte 2018 ‘Best a Service (SaaS) provider for participants internationally recognised beauty brand at their heart. Moshi Monsters is their capacity of business transaction workflow
08
40 41
interfaces (APIs) to enable developers and Performance Company – Data Centre & in the M&A lifecycle, with over 13,000 that specialises in fragrances for the flagship brand which has over 100 million for investment banks such as Citi and JP
businesses to rapidly innovate the way Hosting Services’, they are accredited at clients in over 170 countries. home and personal beauty products. The registered users across digital products and Morgan, wealth managers, exchanges and
they communicate with their customers. Tier 1 partner level by all the major cloud company have a reported 4,000 retail services; whilst the product has expanded trading venues, hedge funds, brokers, and
vendors including Microsoft, VMware, EMC With offices in New York, London and outlets in addition to running an online into best-selling books, magazines, toys, data vendors worldwide.
and AWS. Hong Kong, the company has over 500 website shipping worldwide. trading cards, music albums and a movie.
employees. ITRS is headquartered at The Bonhill
Iomart employs over 200 technical Crabtree & Evelyn was recently acquired Mind Candy is headquartered at The Bonhill Building and has five additional offices
consultants and engineers and has For year-end January 2018, Merrill for $175m by Nan Hai Corporation, a Building, with approximately 50 employees. worldwide employing approximately 500
Vonage Holdings Corp is the guarantor on Corporation Limited reported revenues
4 locations across the UK including Hong Kong conglomerate which are listed people.
the Nexmo lease and is listed on the NYSE of £64 million and net profits of £10.2 For year-end December 2017, Mind Candy
Manchester, London, Glasgow and an on the Hong Kong Stock exchange.
with a market capitalisation of $2.3 billion. million. reported revenues of £3.5 million and In 2018 ITRS Group Limited reported
office in Florida.
gross profits of £1.9 million. revenues of £22.8m and net profits
Headquartered in New Jersey, Vonage Merrill Communications LLC, based in
For year-end March 2018, Iomart reported of £8.7 million.
Holdings Corp has 9 offices worldwide, Saint Paul, Minnesota, are a subsidiary Further information:
revenues of £97.8 million and net profits
including San Francisco, New York, London, of Merrill Corporation Ltd and provide www.mindcandy.com Further information:
of £12.4 million.
and Tel Aviv with over 1,000 employees a guarantee on the lease. The company www.itrsgroup.com
worldwide. Further information: was established in 1999 and employ over
www.Iomart.com 5,200 people.
Further information:
www.nexmo.com Nan Hai Corporation is the guarantor on
Further information:
the lease and has a market capitalisation
www.merrillcorp.com (Sublease of Mind Candy)
of $HK 11.67 billion.
Further information: Lantum, formally known as Network
www.crabtree-evelyn.com Locum, was established in 2012 and
provides an online platform for healthcare
professionals and providers to connect,
while allowing clinicians to book and
organise their own shifts.
Lantum is headquartered on the fourth
floor of the Bonhill Building with over 40
employees and is currently used by 1 in 3
of the UK’s primary care practices.
Further information: www.lantum.comASSET
MANAGEMENT
ASSET MANAGEMENT INITIATIVES
The Bonhill Building offers strong future rental growth potential, based on a moderate average passing rent
of only £54.47 per sq ft.
The various opportunities include:
• From June 2020, Iomart Group’s rent will be subject to 5 yearly rental increases linked to RPI
(cap 4%, collar 2%)
• Increase rental income via forthcoming rent reviews on 6th, 3rd, 2nd and 1st floors in the next 1-3 years
• Re-gearing leases / removal of breaks to increase and improve rental income streams
• Longer term opportunity to increase on site massing by around 36% subject to planning
42
Increased Massing
FUTURE REDEVELOPMENT OPPORTUNITY
The Bonhill building is a high quality, Grade A office building, highly suited to long-term continued use in its
current configuration. Recent mechanical and electrical surveys suggest a 10-20 year lifespan for most of the
major components. However, the building provides a long-term redevelopment opportunity.
Specialist advice has been sought from a rights of light consultant who has recommended that the additional
floor area would be feasible from both a daylight & sunlight and rights of light perspective. The suggested
massing carefully considers both the residential and commercial receptors located in the immediate context
of the site and has been set back to respect the neighbouring amenity, particularly at 10-14 Epworth Street.
The study suggests a potential uplift of approximately 36% additional massing (subject to planning and
necessary consents).
Watch our massing study film at bonhillbuilding.comCITY OF LONDON
M A R K E T C O M M E N TA R Y
OCCUPATIONAL MARKET YEAR R E N TA L G ROWTH FORECAS T INVESTMENT MARKET
2019 2.50%
• Over 2 million sq ft of office space was pre-let in 2018 with City investment volumes in 2018 were robust reaching £11.6 billion, the highest annual total since 2015.
2020 4.00%
transaction levels more than double the ten year average. Overseas purchasers ended the year accounting for 78% of investment volumes with 67% deriving from Asia Pacific.
2021 3.50%
• This has led to over 80% of space under construction and due
for completion in 2019 to be pre-let and approximately 50% 2022 3.00%
of space due for completion in 2020.
• In terms of tenant take up, Media and Tech (25%) continue
to lead the way with the financial sector a close second RECENT INVESTMENT TRANSACTIONS:
at around 20%.
• There are currently c.9.2m sq ft of active City and Central London CITY OF LONDON DATE P ROP ERTY TENU RE WAULT PRICE PURCHA SER N IY CV (PSF )
( EXP I RY)
office requirements. GRADE A AVERAGE RENT
Epworth House,
IS PROJECTED TO REACH Available FH 13 £78.0m - 4.85% £1,242
• The City of London vacancy rate currently stands at 5.4%, 25 City Road, EC1
however the Grade A rate is substantially lower at around 4.5%. £79.50 PER SQ FT The Steward Building,
Dec-18 FH 9.8 £95.0m Private Middle Eastern 4.23% £1,641
44 • The high levels of demand combined with the low vacancy rate BY 2022 20-28 Brushfield Street, E1
45
will result in further substantial rental growth within the City. Cannon Green,
Dec-18 FH 12.1 £120.0m Kiwoom (Korean) 5.01% £1,089
27 Bush Lane, EC4
CITY OFFICE TAKE-UP BY GRADE 2015-2018 Dec-18 1 Bartholomew Lane, EC2 FH 5 £107.0m Private South African 3.92% £1,340
Private Client of
2.5 Dec-18 21 Wilson Street, EC2 FH 5.5 £40.2m 4.08% £1,056
BNP Paribas
2.0 Jul-18 30-34 Moorgate, EC2 FH 15 £46.2m KanAm 4.19% £1,502
1.5 C Space,
Dec-17 FH 12 £74.0m Meadow Partners 4.60% £1,164
37-45 City Road, EC1
1.0
0.5
0.0
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018
Pre-let Grade A Grade B Grade C
DAT E PR O PERT Y TE NA NT RENT ( P S F)
Dec-18 The Bower, EC1 Travelex £83.00
Nov-18 The Bower, EC1 Infosys £72.00
Oct-18 Broadgate Tower, EC2 Trade Tech Alpha £69.50
Sep-18 160 Old Street, EC1 Robert Bosch Limited £66.00
Jun-18 70 Wilson Street, EC2 The Bio Agency £72.00
Jun-18 70 Wilson Street, EC2 WeWork £70.00
May-18 Epworth House, EC1 NTT £71.00FURTHER
I N F O R M AT I O N
PLANNING EPC
The property is located in the London The building has an overall EPC rating
Borough of Islington. It is not listed nor of D81. However the individual office
is it situated in a conservation area. floors have significantly higher ratings
as follows:
46 47
VAT FLOOR RATING
6th B40
The property has been elected for 5th B27
Value Added Tax (VAT). It is anticipated 4th C74
that the sale will be structured as a 3rd C67
Transfer of Going Concern (TOGC).
2nd A19
1st A22
CAPITAL ALLOWANCES The Energy Performance Certificate
is available in the data room.
Capital allowances may be available
subject to separate negotiation.
DATA ROOM
Further information is available
upon request.
Further information is available in the
online data room. Please contact the
Vendor’s agents to request access.
Website including massing film
available at bonhillbuilding.comPROPOSAL
Offers are invited in excess of £110,000,000 (One Hundred and Ten Million Pounds) for the freehold interest, subject
to contract and exclusive of VAT. An asset purchase at this level reflects an attractive net initial yield of 5.23%, net of
standard purchaser’s costs of 6.79%, and a low capital value of only £960 per sq ft.
C O N TA C T S
48 DOMINIC AMEY JAMES NICHOLLS TOM SWANSON JACK HARRISON
Tel: +44 20 7344 6604 Tel: +44 20 7487 1930 Tel: +44 20 7487 1877 Tel: +44 20 7344 6724
Mob: +44 7811 944024 Mob: +44 7566 289790 Mob: +44 7889 706580 Mob: +44 7720 073231
dominic.amey@colliers.com james.nicholls@colliers.com tom.swanson@colliers.com jack.harrison@colliers.com
COLLIE RS DE BT ADV ISO RY
LAUREN C E RIC H ARDSO N
Tel: +44 15 3476 7600
Mob: +44 7829 880140
laurence.richardson@colliers.com
MISREPRESENTATION ACT
Colliers International gives notice to anyone who may read these particulars as follows:
1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part
of an offer or contract;
2. Any information contained herein (whether in text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact;
3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise not that any services or facilities are in good working order;
4. The photographs appearing in these particulars show only certain parts of the property at the time when the photographs were taken. Certain aspects may have changed since the
photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs;
5. Any areas, measurements or distances referred to herein are approximate only;
6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be
a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by an intending purchaser;
7. Descriptions of a property are inevitably subjective and the descriptions contained herein are in good faith as an opinion and not by way of a statement of fact;
8. Any intending purchaser should satisfy themselves as to the presence of any deleterious materials that may exist, or have been used in the construction of the property;
9. The seller provides no warranty as to the precise location of the boundary of the property;
March 2019
Brochure designed and produced by SAENTYS +44 (0)20 7407 8717 | info@saentys.com | www.saentys.comBONHILLBUILDING.COM
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