FREEHOLD REVERSIONARY OFFICE INVESTMENTWITH A RESIDENTIAL PLANNING CONSENT

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E X EC U T I V E S U M M A R Y

A prime opportunity in a prestigious

address116 - 118 Chancery Lane is an attractive Grade II listed office property with significant reversionary potential and further

benefiting from an implemented residential consent.

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Freehold

Located in the heart of Central London, Chancery Lane is a premier address within the Midtown market

The property comprises 12,954 sq ft NIA of office and retail accommodation arranged over lower ground, ground and

four upper floors

The property is multi-let to eight tenants and produces an annual rental income of £326,585 reflecting a highly

reversionary overall rent of £25.21 per sq ft

The Vendor will provide a 12-month rental top up on the two vacant floors at current asking rents of £35.00 per sq ft. The total annual rent for the building will therefore be £399,840

Vacant possession of the office accommodation achievable in March 2021

The property offers significant asset management opportunities including office refurbishment or change of use

A residential planning permission has been implemented, to provide 14 private residential flats totalling 11,845 sq ft NSA

We are instructed to seek offers for the freehold interest in excess of £12,250,000, subject to contract and exclusive of VAT

A purchase at this level reflects a low capital value of £946 per sq ft and a net initial yield of 3.06% on a topped-up basis and

assuming purchaser’s costs of 6.80%

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F L E E T S T R E E T

H I G H H O L B O R N

N E W F E T T E R L A N E

T H E R O YA L C O U R T S O F

J U S T I C E L O N D O N S C H O O L O F E C O N O M I C S

L I N C O L N ’ S I N N F I E L D S

C O V E N T G A R D E N

S T J A M E S ’ S PA R K

H O U S E S O F PA R L I A M E N T

L O N D O N E Y E

R O YA L F E S T I VA L H A L L

WAT E R L O O S TAT I O N

M I D D L E T E M P L E G A R D E N S

I N N E R T E M P L E G A R D E N S

S AV O Y H O T E L

C H A R I N G C R O S S S TAT I O N

S T R A N D

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T H E L O C AT I O N

An iconic and historic London location

From the heritage and architecture of the immediate local area to the bright lights, culture and entertainment of the nearby West End, all of the elements that make London an iconic global city are within easy reach. It is just a short

walk to Lincoln’s Inn Fields – the largest public square in London – whilst Covent Garden is around half a mile west, home to the renowned Royal Opera

House and an eclectic offering of shops, theatres, restaurants and bars.

London's most famous legal establishments, such as the Royal Courts of Justice, on your doorstop. As are outstanding education facilities including

King’s College London and London School of Economics. The business hub of the City is easily reached from nearby Temple tube, with Holborn

and Chancery Lane stations are also just a short walk away. The imminent arrival of Crossrail at Farringdon will provide links to Stratford, Canary Wharf,

Paddington and Heathrow.

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SITUATED IN THE HEART OF LONDON’S LEGAL DISTRICT, BETWEEN THE BUSTLING CITY AND VIBRANT WEST END

Reading

ShenfieldStratford

Canary Wharf

Abbey Wood

Hayes & Harlington

Heathrow

Acton Mine Line

Ealing Broadway

Bond Street

West Ealing

Tottenham Court Road

Hanwell

Farringdon

Southhall

Liverpool Street

Whitechapel Paddington

11 minutes Thameslink

13 minutes Farringdon

7 minutes 4 minutesTemple Victoria

8 minutes 6 minutesChancery Ln Bond St

LINCOLN’S INN

HOLBORN

NEWGATE STREET

Barbican

Chancery Lane

Temple

St Paul’s

Holborn

Farringdon

Blackfriars

FLEET STREET

Chancery Lane

KING

SWAY

FARRINGD

ON

STREET

EMBANKMENT

GRAYS IN

N RO

AD

QUEEN VICTORIA ST

W Smith

field

Middle Tem

ple Lane

Charterh

ouse Stre

et

RIVER THAMES

6

13

9

STRAND

10

VICTORIA

CityThameslink

1

1

1

2

2

3

456

7

8

9

11

12

13

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15

16

17

18

19

2021

10

1

2

13

76

5

4

3

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UNIVERSITY OF THE ARTS LONDON

ROYAL COURTSOF JUSTICE

SOMERSETHOUSE

ST PAUL’SCATHEDRAL

COVENT GARDENPIAZZA

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L O C A L D E V E L O P M E N T S

1 Africa House, 64-78 Kingsway, WC2 130,000 sq ft scheme developed by Freshwater let to Mischon de Reya

2 Weston House, 242-246 High Holborn, WC1 89,000 sq ft scheme developed by Freshwater and forming part of the Mischon de Reya campus

3 38 Chancery Lane, EC4 74,000 sq ft scheme predominantly let to Wework and owned by Deka Immobilien

4 40 Chancery Lane, EC4 104,000 sq ft scheme let to Publicis Groupe and owned by Deka Immobilien

5 262 High Holborn, WC1 41,000 sq ft office/ retail scheme by Lazari Investments

6 Templar House, 81 High Holborn, WC1 100,545 sq ft due to be refurbished and occupied by Uncommon

7 The Post Building, Museum Street, WC1 300,000 sq ft development by Brockton and Oxford Properties. Fully pre-let with tenants including McKinsey & Co

8 Goldman Sachs, EC4 1,000,000 sq ft Goldman Sachs HQ

9 12-14 New Fetter Lane, EC4 142,500 sq ft scheme developedby Great Portland Estates and let to Bird and Bird

10 1 New Street Square, EC4 275,000 sq ft Land Securities scheme that forms part of the Deloitte HQ and campus

11 150 Holborn, EC1 75,000 sq ft scheme being developed for owner occupation by Dar Group

12 Aldwych Quarter, WC2 450,000 sq ft scheme pre-let to WeWork and Kings College

13 Lacon House, 84 Theobalds Road, WC1 192,000 sq ft scheme by Blackstone, let to Disney, Argus, Kilburn & Strode, Arriva and Exterion Media

O C C U P I E R S

1 Kings’ College London

2 The Courtauld Institute of Art

3 Freshfields Bruckhaus Deringer

4 Bird & Bird

5 MacFarlanes

6 HM Courts Service

7 Legalease

8 Deloitte

9 Lewis Silkin

10 Saatchi & Saatchi

11 Essex Chambers

12 Goldman Sachs

13 Sainsbury’s

14 Child & Co

15 Jones Day

16 C Hoare & Co

17 LSE

18 WSP Group

19 Mischon De Reya

20 Mediacom UK

21 Warner Bros UK

C O M P L E T E D R E S I D E N T I A L S A L E S

1 9-12 Bell Yard Sold to a single investor, 8,556 sq ft, £14.7m, September 2019

2 19 and 4-5 Bell Yard 7,304 sq ft, £12m to a single family office in December 2019

N O R T H

V I E W F R O M T H I R D F L O O R L O O K I N G W E S T

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V I E W F R O M T H I R D F L O O R L O O K I N G N O R T H

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T H E E X I S T I N G B U I L D I N G

Heritage character with modern comforts

116-118 Chancery Lane is a Grade II Listed building constructed in the early 19th century as two townhouses, comprising lower ground, ground and four upper floors. Subsequent redevelopment maintained the attractive façade and period features, which will form part of any

refurbishment programme.

The existing building provides retail on part ground and lower ground floors and office accommodation on the upper floors, with a substantial external rear courtyard. The ground

floor entrance from Chancery Lane provides access to a central core serving all floors. The floors are split between

front and rear sections, and are laid out as two self-contained offices suites per floor, separated by a communal area,

with with WCs serving each floor. There is comfort cooling and gas central heating throughout the building, and a lift

serving all floors.

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AN IMPRESSIVE BRICK FAÇADE, CLASSICAL SASH WINDOWS AND ATTRACTIVE GRADE II LISTED BRICK FAÇADE WITH

CLASSICAL PERIOD FEATURES

Office / Storage Offices Offices

Offices

Offices

Offices

Offices

Vaults

Plant

B A S E M E N T* * *

G R O U N D F L O O R* * *

F I R S T F L O O R* * *

Net internal demised area Retail accomodation

N O R T H

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Existing floor plans

Offices

Offices Offices Offices

OfficesOffices

S E C O N D F L O O R

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T H I R D F L O O R

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F O U R T H F L O O R

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Tenancy schedule

TENUREThe property is held freehold. The approximate extent of the freehold ownership is shown in the title plan. (LN134412).

TENANCYThe property is multi-let to eight tenants and produces an annual rental income of £326,585 reflecting a highly reversionary overall rent of £25.21 per sq ft.

The Vendor will provide a 12-month rental top up on the two vacant floors at current asking rents of £35.00 per sq ft. The total annual rent for the building will therefore be £399,840.

All the occupational leases are outside Part II of the Landlord & Tenant Act 1954.

Unless otherwise stated, all leases are mutual and subject to 3 month's notice.

TENANT DEMISE SQ FT LEASE START LEASE EXPIRY LEASE BREAK RENT (P.A.) RENT (PSF)

Kinsella Legal Limited 4th floor rear 612 07/11/2018 06/11/202016/09/2019 or any date thereafter

£12,960 £21.18

White Cat Consulting Limited

4th floor front 1,152 23/11/2018 22/11/202016/09/2019 or any date thereafter

£29,536 £25.64

Cambridge Professional Academy Limited

3rd floor rear 1,047 18/10/2019 17/10/202402/03/21 or any date thereafter

£19,817 £18.93

Woodrow Mercer Group LLP

3rd floor front 1,262 02/09/2019 01/09/202402/03/2021, 02/09/22 or any date thereafter

£46,152 £36.57

Vacant 2nd floor rear 1,040 - - - £36,400 £35.00

Cavendish Group International Limited

2nd floor front 1,284 10/12/2019 -"Immediate written notice"

£38,360 £29.88

Sue Hill Recruitment & Services Limited

First Floor Rear 1,015 22/07/2019 21/07/2024 02/03/2021 £39,200 £38.62

Pace Interiors Limited First floor front 1,535 02/09/2019 01/09/202422/03/2021, 02/09/22 or any date after 22/09/2022

£52,560 £34.24

Vacant Ground Floor - Rear 1,053 - - - £36,855 £35.00

Sue Hill Recruitment & Services Limited

Ground Floor - Suite 2

227 22/07/2019 21/07/2024 02/03/2021 Inclusive -

White Cat Consulting Limited

Ground Floor - Suite 1

110 23/11/2018 22/11/202016/09/2019 or any date thereafter

Inclusive -

Doculand LimitedGround Floor & Basement Retail Unit

1,724 13/03/2017 12/03/2027 - £85,000 £49.30

SUB TOTAL 12,061 £396,840Vacant Basement 6 149 - - -

Doculand Basement 5 149 22/08/2019 21/08/202222/08/2020 or any date thereafter

£1,000

Doculand Basement 4 149 22/08/2019 21/08/202222/08/2020 or any date thereafter

£1,000

Vacant Basement 3 149 - - -

Doculand Basement 2 149 22/08/2019 21/08/202222/08/2020 or any date thereafter

£1,000

Vacant Basement 1 149 - - -

SUB TOTAL 893 £3,000TOTAL 12,954 £399,840 £30.87

C G I O F A N D R E W S C R O S S E C O U R T YA R D

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C O N S E N T E D R E S I D E N T I A LA C C O M M O D AT I O N S C H E D U L E

P L A N N I N G P E R M I S S I O N

116-118 Chancery Lane is located within the City of Westminster. The building is Grade II listed and is situated in the Strand Conservation Area. Full Planning and

Listed Building Consent has been granted (Ref 15/01170/FULL and 15/01171/LBC). The permission, which has been implemented, permits the following:

Use of part basement, part ground floor level and first to fourth floor levels and the erection of a mansard roof extension at fifth floor level to provide 14 residential flats

(Class C3). Provision of external terraces at rear second, third, fourth floor and fifth floor level. Installation of mechanical plant at fourth and fifth floor level. Lowering

of the existing basement vault floor below Andrews Crosse by 0.5m and installation of new lightwells and railings at basement and ground floor level on the Andrews

Crosse elevation.

Associated alterations to windows on the front and rear elevation and associated internal alterations at 116 to 118 Chancery Lane and removal of part of the external

staircase adjacent to 115 Chancery Lane.

A variation of Condition 1 (Ref 16/10409/FULL and LBC 16/10371LBC) was granted in October 2016 for:

Alterations to the roof profile at rear fifth floor level and relocation of plant.

The revision has been made in order that the consented scheme can be developed without giving rise to any RtL issues.

APARTMENT FLOOR TYPE M2 FT2 EXTERNAL TERRACE M2 FT2

4.2 Fourth floor 3 bed 101 1,087 Terrace 57 614

4.1 Fourth floor 3 bed 127 1,372 Terrace 48 516

3.3 Third floor 2 bed 67 721 - - -

3.2 Third floor 1 bed 39 420 Terrace 2 22

3.1 Third floor 3 bed 96 1,033 Terrace 3 32

2.3 Second floor 2 bed 67 721 - - -

2.2 Second floor 1 bed 45 484 Terrace 10 108

2.1 Second floor 3 bed 94 1,012 Terrace 14 151

1.3 First floor 2 bed 67 721 - - -

1.2 First floor 2 bed 77 829 - - -

1.1 First floor 3 bed 92 990 - - -

G.3 Ground floor 1 bed 74 797 Terrace 6 65

G.2 Ground floor 2 bed 77 829 - - -

G.1 Ground floor 2 bed 77 829 - - -

TOTAL 1,100 11,845 140 1,508

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Consented floor plans

B A S E M E N T* * *

G R O U N D F L O O R* * *

F I R S T F L O O R* * *

S E C O N D F L O O R

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T H I R D F L O O R

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F O U R T H F L O O R

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F I F T H F L O O R

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F L AT 1 . 1

F L AT 1 . 2

F L AT 1 . 3

F L AT 2 . 1

F L AT 2 . 2

F L AT 2 . 3

F L AT G 1

F L AT G 3F L AT G 2

F L AT G 1

F L AT G 2

F L AT 4 . 1

F L AT 4 . 2

F L AT 3 . 1

F L AT 3 . 3

F L AT 3 . 2

F L AT 5 . 1

F L AT G 3

PROPOSALProposal submitted for erection of a roof extension to provide a studio flat. Equating to 39 sqm Net Saleable Area. (Planning Portal Reference: PP-08466097).

1 1 6 - 1 1 8 C H A N C E R Y L A N E

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EPCAvailable upon request.

VATThe property is elected for VAT. It is anticipated thatthe transaction will be treated as a transfer of goingconcern (TOGC).

DATA ROOMData room access details are available upon request.

PROPOSALWe are instructed to seek offers for the freehold interest in excess of £12,250,000, subject to contract and exclusive of VAT.

A purchase at this level reflects a low capital value of £946 per sq ft and a net initial yield of 3.06% on a topped-up basis and assuming purchaser’s costs of 6.80%.

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Further information

Sq. One and Farebrother for themselves and for the vendors of this property whose agents they are, give notice that: A These details are set out as a general outline only for guidance and do not constitute, nor constitute part of, an offer or contract; B All descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are believed to be correct, but any intending purchasers, tenants or third parties should not rely on them as statements or representa-tions of fact but satisfy themselves that they are correct by inspection or otherwise; C No person in the employment of Sq. One and Farebrother has any authority to make or give any representation or warranty whatever in relation to the property; D The photographs and videos show only certain parts of the property as they appeared at the time they were taken, and cannot be relied upon; E Unless otherwise stated, all prices are quoted exclusive of VAT, if applicable; F Reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function; G Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. February 2020.

Made by GQ Design - gqdesign.com

C O N TA C T

Jamie Gunning+44 (0)7967 751 394

jg@sqonerealestate.com

Charlie Philip+44 (0)7766 222 647

cp@sqonerealestate.com

Anton McGarvey+44 (0)7725 260 619

amcgarvey@farebrother.com

Jack Mactaggart+44 (0)7766 476 884

jmactaggart@farebrother.com