mutual house - savillspdf.savills.com/documents/mutual_house_london_w1... · · 2014-10-07......

3MUTUAL HOUSE | 193 - 201 | REGENT STREET | LONDON W1 MUTUAL HOUSE | 193 - 201 | REGENT STREET | LONDON W12 3 MUTUAL HOUSE | 193 - 201 | REGENT STREET | LONDON W1

INvESTMENT SUMMARy• AtrophyassetsituatedonLondon’sRegentStreet.

• Attractiveflagshipretailunitswithselfcontainedofficestotheupperfloors,accessedfromConduitStreet.

• SituatedintheheartofRegentStreet,directlyoppositethefamousHamleystoystoreandsurroundedbymanyoftheworld’shighendretailbrands.

• TheRetailelementislettorenownedBritishluxuryretailersHackett,Church’sShoesandThePenShop.

• Lowretailrentsofferingexcellentrentalgrowthprospects;retailrentsonRegentStreetcurrentlyofferac.50%discounttoprimerentsonNewBondStreetandac.20%discounttoprimerentsonOxfordStreet.

• Opportunitytoimprovetheretailofferingthroughtheimplementationofaplanneddevelopmentschemetocreatealargerflagshipunitandestablishoptimumrents.

• Theofficeaccommodationismulti-lettofivetenantswithanaveragerentofonly£45.49persqft.

• LongleaseholdinterestfromTheCrownEstatewithapproximately103yearsunexpiredandnolandlord’sredevelopmentbreakoptionorpre-emptionrighttopurchase.

• Offersinexcessof£85,000,000,subjecttocontract,areinvitedfortheLongLeaseholdinterest.Thisreflectsaninitialyieldof2.95%andareversionaryyieldof3.83%,basedonouropinionofERV.

A Unique Opportunity to acquire a landmark property on London’s Regent Street”


REGENT STREET

Extendingtojustunderonemileandboastingtwomillionsquarefeetofcommercialspace,RegentStreetisoneofthemostprestigiousshoppingdistrictsintheWestEnd.ItformsanimportantlinkbetweenupmarketMayfairtotheWest,thecreativequarterofSohototheEastandconnectingthemajortransporthubsofOxfordCircusandPiccadillyCircus.

Crown Estate

RegentStreethassubstantiallybenefitedfromanongoing£1billioninvestmentprogrammeinitiatedoverthepastdecadebytheCrownEstate,whichownsthemajorityofRegentStreet.ThisongoingprogrammehashelpeddefineRegentStreetasamajorshoppingdestination,characterisedbyrenownedglobalretailers.TheCrownEstatehascompletedtenmajorschemestodatewithanumberofupcomingcompletions,includingBlockW5(adjacenttoMutualHouse)inQ42015.

ThisinvestmenthasresultedinRegentStreetbecomingLondon’smostimpressiveandarchitecturallygrandretaillocations.

Regent Street has substantially benefited from a £1 billion investment programme initiated by the Crown Estate. This ongoing programme has helped define Regent Street as a major shopping destination.”

H Y D E P A R K

S T J A M E S ’ SP A R K

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International Retailer Presence

Londonistheworld’smostpopulardestinationforforeigntouristswithover18millionvisitorsannuallyspending£11.44billion,whichisforecasttoincreaseto£18.82billionby2020.

RegentStreethasseenthegreatestexpansionininternationalretailerpresenceintheWestEnd,proportionallyupby33percentagepoints.IncomparisontootherkeypitchesinCentralLondon,RegentStreetisthefirstchoiceforinternationalretailersalongsideCoventGarden.TheinternationalappealofRegentStreethashelpedtodrivefootfallandsignificantlyincreasetotalsales.

London is the most visited city by international tourists in the World Total visitor spend in London

16

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Source: Mastercard Global Destination Cities Index Q2 2013*London data is based on year end 2013 data

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Source: Savills; ONS; Deloitte

BRIC (Brazil, Russia, India, China)

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Source:Savills;ONS;Deloitte

Flagship Stores1.Hamleys

2.Liberty

3.Burberry

4.Abercrombie&Fitch

5.LouisVuitton

6.Apple

7.Selfridges

8.JohnLewis

9.Topshop20,000Rest of the World Europe North America

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02007 2008 2009 201

Source: Savills; ONS; Deloitte

BRIC (Brazil, Russia, India, China)

10 2011 2012 2013 2020

Averageweeklyfootfallhasincreasedby15%overthelastyearwhereasOxfordStreetandBondStreetlevelshaveremainedflat.TheworldfamousHamleystoystore,amajortouristattraction,islocateddirectlyoppositethesubjectpropertyandattractsfivemilliontouristsperyear.

InadditiontoincreasedtouristsflowstoLondon,TheUKGovernmentisactivelyimprovingtheChineseVisasystem.Thisincludes:anew24hourvisaservice;exploringthedevelopmentofasinglevisaapplicationcentreforbothUKandSchengenvisas;andanewjointBritish/Irishvisascheme.ForsomeGulfStatescitizenscannowobtainafreeelectronicvisawaivertotraveltotheUKinsteadofneedingtoapplyforavisitvisa.Thesechangesarelikelytoresultinincreasedvisitornumbers.

Source:Savills


HISTORy

OriginallydesignedbyJohnNash,RegentStreetwastheworld’sfirstmodernpurposebuiltshoppingstreet,pre-datingtheChampsElyseeandFifthAvenue.Intheearly20thCentury,thestreetwasredevelopedbyleadingBritisharchitectsinordertoreconfiguretheshopstomakethemsuitableformodernretailtrading.

TodayeachbuildingisprotectedwithlistedbuildingstatusconservingthefamousgrandPortlandstonefaçades.RegentStreet’suniqueandhistoricenvironmentattractsanincreasingamountofshopperswhilstlargestoresmeettherequirementsoftoday’soccupiers.

Regent Street was the world’s first modern purpose built shopping street, pre-dating the Champs Elysee and Fifth Avenue”


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VIVIENNE WESTWOOD CROMBIE

DONNA KARANLALIQUE

JIMMY CHOO

MutualHouseissituatedintheheartofRegentStreetatitsjunctionwithConduitStreet.

ThepropertyissituateddirectlyoppositetheworldfamousHamleystoystorewhichattractsover5millionvisitorsonanannualbasis.OthernotablelocaloccupiersincludeBurberry,MichaelKors,JCrew,Longchamp,Jaegar,Apple,HugoBossLacosteandWatchesofSwitzerland.

ConduitStreetisoneofMayfair’smostdesirablestreetsandlinksRegentStreetdirectlywithBondStreetandtherestofMayfair.

SITUATION

The property is anchored by many local occupiers including the world famous Hamleys Toy Store, Burberry, Michael Kors, Jaegar, Apple, Hugo Boss, Lacoste and Longchamp.”


DESCRIPTION

Originallydatingbacktotheearly20thCentury,MutualHousewasredevelopedin1992behinditsoriginalGradeIIlistedfaçadecreatingaprimetrophyMayfairassetcomprisingthreeretailunitsfrontingRegentStreetandfiveupperfloorsofofficeaccommodation.ThepropertywasconstructedaroundareinforcedconcreteandsteelframewithstrikingPortlandstonefaçades.

TheretailaccommodationcomprisesthreefullyglazedunitswithprominentfrontagestoRegentStreetandConduitStreet.Hackett’sLondonflagshipstoreisarrangedoverground,lowergroundandtheproperty’sentirefirstfloorwithreturnfrontagetoConduitStreet.Atalmost9,000sqft,itrepresentsHackett’sglobalflagshipstorebenefittingfromopentradingspace,abespoketailoringservice,arefinedBeefeaterBarandfeaturinganimposingwroughtironstaircase.

Theofficeaccommodationhasself-containedaccessfromConduitStreetandisarrangedover2ndto6thfloorsprovidinghighspecificationL-shapedfloorplatesaroundacentralcore.

Officespecificationincludes:

- Acombinationoffourpipefan-coilandperimeterVRVairconditioning;

- Fullyaccessibleraisedfloorswithperimetertrunkingtosomeareas;

- Male,femaleanddisabledWCsdemisedtoeachfloor;

- Twox8-personpassengerliftsservingallfloors;

- Contemporaryrecentlyrefurbisheddoubleheightreceptionarea;

- Excellentnaturallightfromitstwoelevationscomprisingamixtureoffullheightandsashdoubleglazedwindows.

Mutual House is rare in that it offers a prime retail Regent Street address together with a prime Mayfair office address on Conduit Street.”


ACCOMMODATION

Address Use Description Net Internal Area

Sq m Sq ft

201RegentStreet(Church’s)

Retail

GroundFloorSales

96.06 1,034

BasementAncillary

128.39 1,382

(ITZA) (1,003)

199RegentStreet(ThePenShop)

Retail

GroundFloorSales

32.05 345

BasementAncillary

15.98 172

(ITZA) (352)

193-197RegentStreet(Hackett)

Retail

GroundFloorSales

227.33 2,447

BasementSales 132.39 1,425

BasementAncillary

116.04 1,249

Store 45.06 485

1stFloorSales 289.85 3,120

(ITZA) (2,547)

Retail Sub-Total 1,083.15 11,659

70ConduitStreet Office

2ndFloor 313.46 3,374

3rdFloor 312.05 3,359

4thFloor 308.99 3,326

5thFloor 262.35 2,824

6thFloor 222.12 2,391

Office Sub-Total 1,418.97 15,274

TOTAL 2,502.12 26,933

1.InteriorofHackettFirstFloor

2.OfficeReception

3.InteriorofThePenShop

4.InteriorofChurch’sShoes

Attractive flagship retail units with self contained offices to the upper floors, accessed from Conduit Street.”

1

2

4

3


FLOOR PLANS

GROUND FLOOR TYPICAL UPPER FLOOR

Floorplansarenottoscaleandareforindicativepurposesonly


CO

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OFFICE RECEPTION


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TENURE

ThepropertyisheldlongleaseholdfromTheCrownEstateforatermof125yearsfrom5April1992(approximately103yearsunexpired).

Theheadrentiscalculatedasthegreaterof:

(a)12.5%ofallmoniesreceivedintheprevious12monthslessdeductions;and

(b)theBaseRent

BaseRentmeans10%ofeither:

(x)theopenmarketrent–theassumptionsareflexibleenablingthelandlordtomaximisethelikelyopenmarketrent;or

(y) theaverageannualamountofNetRentsreceivedduringtheprevious5yearperiodsuchsumbeingsetevery10thanniversaryof5April1992,andisupwardsonly.

ThetotalheadrentpayableuptoyearendingApril2014was£232,154.1

NEW BURLINGTON PLACE

TREET

NEW BURLINGTON STREET

REET COND

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T

60

50

70

198

11

204

21

177

1

206

25

25

51

14 to

15

PH

170

172

17

181

16

2201

169

175

177

184

12

52

18

4

202

19

10

11

16

53

13

203

56 to 60

55

200

53 to

58

193

to 1

99

179

5152

186

188 to 196

2

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28 27

26

2

13 to 17

21

23

27

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3

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176

178 to 182

174

185

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Heathcoat House

7 to

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PlaceLITTLE MARLBOROUGH ST

Little Marlborough St

3 to 5

28 2

7

31

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47

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227

221

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210 to 222

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9

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19

33

2

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209

207

211

to 213

0m 10m 20m 30m

Ordnance Survey © Crown Copyright 2014. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250

REGENT STREET

NOTE:-ReproducedfromtheOrdnanceSurveyMapwiththepermissionoftheControllerofH.M.StationeryOffice.©Crowncopyrightlicencenumber100024244Savills(UK)Ltd.NOTE:-Publishedforthepurposesofidentificationonlyandalthoughbelievedtobecorrectaccuracyisnotguaranteed.1.Subjecttofinalsignofffromfreeholder.


TENANCy SCHEDULE

Thepropertyisletoneightcommercialleases(insidetheAct)producingacurrentgrossincomeof£2,883,715perannumwithaweightedaverageunexpiredtermof9.04years.1

Tenant Floor Lease Term Next Rent Review

Net Internal Area sq ft (ITZA)

Rent psf Annual Rent

ERV psf ZA

ERV Rent

Comments

Retail

ChurchUKRetailLtd(t/aChurch’s)

Ground&Basement

01/02/2004-31/01/2014

-2,416(1,003)

£349ZA £350,000 £750 £827,475

Tenantholdingover.Negotiationsongoingfornewleaseatmarketlevel.Additional10%premiumforreturnfrontage.

T&GAllanLimited(t/aThePenShop)

Ground&Basement

12/09/2014-11/09/20158

-517(352)

£750ZA £263,910 £750 £263,910NewleaseisoutsidetheLandlordandTenantAct1954.

HackettLimitedGround,Basement&1st

04/07/2013-03/07/2028

04/07/20188,726(2,547)

£645ZA £1,575,000 £750 £1,819,286Less5%discountonGroundFloorITZAforshape.

Retail Sub-Total 11,659 £2,188,910 £2,910,671

Office

AALTOInvestLLP 2nd09/01/2014-08/01/2019

- 3,374 £51.00 £172,074 £60.00 £202,440

PFMGroupServiceLtd 3rd29/07/2011-28/07/20212

29/07/2016 3,359 £40.00 £134,360 £60.00 £201,540

AppliedPredictiveTechnologies(UK)Ltd

4th10/07/2014-24/03/20193

- 3,326 £53.00 £176,278 £60.00 £199,560

KikoUKLtd 5th24/02/2012-23/02/20224

24/02/2017 2,824 £47.59 £134,385 £60.00 £169,440

HongKongTourismBoard

6th04/05/2010-03/05/20205

04/05/2015 2,391 £32.50 £77,708 £60.00 £143,460

Office Sub-Total 15,274 £694,805 £916,440

Total 26,933 £2,883,715 £3,827,111

Headrent -£232,154 6 -£382,7117

Net Total £2,651,561 £3,444,400

1.AsatSeptember2014.2TenantBreakOption29/07/2016.3.TenantBreakOption10/07/2017.4.TenantBreakOption24/02/2015&24/02/2017.

5.TenantBreakOption03/05/2015.6.Subjecttofinalsignofffromfreeholder.7.Assumeheadrentof10%8.Anticipateddates,subjecttocontract


vALUE ENHANCEMENT

MutualHouseformspartofanarchitecturallyimportantsectionofRegentStreet.ThepropertyisGradeIIlistedandsitswithintheRegentStreetConservationArea.Thevendorhasrecentlyappliedforpre-applicationplanningadvicetocombineThePenShopandChurch’sunitstoprovideasingle,largeretailunitwithsalesovergroundandbasementlevels.

Thecombinationofthetwoshopswouldnotonlysimplifytheretailfrontage,makingitanevenmoreprominentfeatureofRegentStreetwithdualfrontages,butitwillalsocapturethegreaterdemandandhigherrentsassociatedwithlargerretailunitsinthislocation.

A real opportunity to combine The Pen Shop and Church’s units to provide a single large retail unit with sales over ground and basement levels”

Intheirresponsetopre-applicationplanningadviceWestminsterCouncilwaswhollypositivetothischangeonthebasisthatthedesignwassympathetictohistoricalnatureofthebuildingandplannersguidance.

Furtherinformationavailableonthemarketingwebsite:

www.mutual-house.com


RETAIL OCCUPATIONAL MARKET COMMENTARy

London’sWestEndisoneoftheworld’spremierretaildestinations,attractingmillionsofdomesticandinternationalshoppersannually.Itistheworld’smostvisitedcitybyinternationaltouristswithover18millionforeignvisitorsperyear.Thesetouristscontributeanestimated£11.44billionofrevenue,whichisforecasttogrowtocloseto£18.82billionby2020withgrowthinretailspendoverthisperiodforecasttoaverage10%perannum.

TheWestEndischaracterisedbythreemainshoppingdestinations;BondStreetisrenownedasbeingthecapital’shighendluxuryquarter,OxfordStreetasthemid-marketfashionandaccessoriesretaillocationandRegentStreet,whichhasevolvedtobecomethehomeofflagshipstoresformanyluxuryretailers.

TheCrownEstate’shighlysuccessfultenantengineeringstrategy,coupledwithacommitmenttoprovideaccommodationofthehighestqualityandthecreationoffewerbutlargerandimposingstores,hasattractedarangeoflargeinternationalbrandstoRegentStreet.Thisinturnhascontinuedtodriverentalgrowthasoccupierscompeteforthefewunitsthatbecomeavailable.

BothestablishedUKretailersandnewmarketentrantsaspiretohaveanaddressonRegentStreetasalocationfortheirconceptandflagshipstores.Itisnowthetoprankingstreetfornewinternationalentrants.RetailerswhohaveopenedstoresinrecentyearsincludeApple,Burberry,Hollister,Superdry,BananaRepublic,MichaelKors,JCrew,Omega,Anthropologie,WatchesofSwitzerlandandHackett.

Occupier Profile

Over50%oftheoccupierprofileisdedicatedtofashionwhichhasincreaseddramaticallyoverthepastdecade.BrandpositioningonRegentStreethasalsomovedup-market.Anumberofhighprofilelettingshaveoccurredoverthepast18monthsincluding;&OtherStorieswhichisthefirststoreofH&M’sluxurybrandtoopenintheUK,KarlLagerfeldwhoopenedtheirEuropeanflagshiponRegentStreetinMarch2014,securingtheunitbypayingapremiumof£2.2millionandWatchesofSwitzerlandwhoopenedtheirthreestoreyflagshipstoreinJuly2014.Inaddition,BritishfashionbrandHunteristoopenitsfirstglobalflagshipstoreonRegentStreetinAutumn2014andMichaelKorswillopenanew15,000sqftflagshipin2015.

West End Retail Occupational Deals

Address Tenant Zone A Rent (£ per sq ft)

Premium Lease Event

Date

383OxfordStreet

Simit £872.50 NewLease Q22014

16NewBondStreet

PatekPhilippe Subjecttoreview

£10.0m Leaseassignment

Q12014

11NewBondStreet

SwatchGroup Subjecttoreview

£7.5m Leaseassignment

Q42013

163NewBondStreet

ChristianDior £1,300 Newlease Q12013

12NewBondStreet

Chopard £1,300 Newlease Q22013

361OxfordStreet

EE £872.50 Newlease Q22014

451OxfordStreet

Omega £800 Newlease Q22014

291OxfordStreet

McDonalds £775 RentReview Q42013

Source:Savills

Source: New West End Company

0 500,000 1,000,000 1,500,000 2,000,000 2,500,000

Bond Street

Regent Street

Oxford Street

3,000,000 3,500,000 4,000,000

Average weekly footfall (Jun 13-May 14)

15%

fall year-on-yearas of May 20142%

increase year-on-yearas of May 2014

fall year-on-yearas of May 20140.4%

Regent Street footfall

Source:NewWestEndCompany

SomeofRegentStreet’smoreestablishedoccupiers,suchasAustinReed,JaegerandHamleys,havebeenoccupiersforoveracenturyandhelpcreateanenvironmentandshoppingexperiencethatisuniquetoRegentStreet.

Historically,RegentStreetrentshavebeenlowerthanotherkeypitchesacrossCentralLondon.Howeveroverthelastthreeyearsrentallevelshavegrownatagreaterratethancompetingdestinationswithgrowthof10.9%perannumcomparedto7.2%perannumonOxfordStreet.RentalforecastsforPrimeWestEndindicaterentalupliftof9.7%perannumthroughto2018.

DuetothedramaticchangeinRegentStreet’slandscapeandtenantmix,thereisagrowingrequirementfrommanywellknowninternationalretailerstosecureapresenceonthestreet.TheCrownEstate’sselectivestrategytocontrolthestreet’stenantmixhasresultedinalonglistofretailerswillingtosetnewrecordrentstocompeteforthefewstoresthatbecomeavailable.

ThecurrenthighestrentsachievedonRegentStreetareapproaching£750persqftZoneA.AsaresultRegentStreetisextremelyaffordablewhencomparedtothemoremid-marketOxfordStreet(£900persqftZoneA)andthesuperprimeBondStreet(£1,300persqftZoneA).EvencomparedtootherglobalretaildestinationssuchasHongKong,NewYorkandParis,WestEndretailpropertyismoreaffordable.

WiththecompletionofRegentStreet’sremainingschemesduewithinthenextfiveyears,rentsareanticipatedtogrowsubstantially.

70%

80%

60%

40%

50%

30%

10%

20%

0%

Inte

rnat

iona

l ret

aile

rs a

s %

of

all r

etai

lers

Source: Savills

Old Bond Street Oxford Street WestNew Bond Street Regent Street Oxford Street East

33%percentage points

since 2000


since 2000


since 2000


since 2000 14%percentage points

since 2000

Source:Savills

Covent Garden

Regent Street

South Molton Street

Bond Street

Carnaby Street

Kings Road

Bond Street Fringe

Oxford Street

Source: Savills

10 2 3 4 5 6 7 8 9 10 11 12New international retailer entrants (since 2012)

Source:Savills

Regent Street top with Covent Garden for new international entrants

Regent Street has seen the greatest expansion in international retailer presence in the West End

Prime Zone A Rents

Address Established Zone A (£ per sq ft)

% growth over last 5 years

BondStreet £1,300 80.6%

OxfordStreet £900 56.5%

RegentStreet £750 57.9%

CoventGarden £700 27.3%

BromptonRoad £700 32.1%

Source:Savills

Origin of international entrants

Europe

61%

Asia Pacific

8%

Middle East

2%

North America

27%

South America

1%

Asia

1%

Source:Savills


OFFICE OCCUPATIONAL MARKET COMMENTARy

Inadditiontoitspopularityasaretaildestination,RegentStreetisaleadingbusinessdistrictwithapproximatelytwomillionsquarefeetdedicatedtoofficeaccommodationservingadiversemixoftenants.

TheofficesatMutualHouseareaccessedfromaself-containedentranceonConduitStreet,oneofMayfair’smostdesirableofficeaddresses.DemandforhighqualityofficeaccommodationinMayfairhasbeenexceptionallystronginrecentyearswithhightake-upandlowvacancyratescharacterisingtheWestEndoccupationalmarket.

INvESTMENT MARKET COMMENTARy

TheCapital’sroleasanimportantretaildestinationforinternationalhighspendingshoppersandtouristshasbeenamajorfactorinunderpinningstrongretailsalesandfootfalllevels.ThesefundamentalshavereinforcedCentralLondonretailstatusasasafehavenandhaveledtoCentralLondonretailbeingthebestperformingsectorintheUKinvestmentpropertymarket.OverseasinvestorshavebeenparticularlyactivewithbuyersoverrecentyearsregardingprimeCentralLondonretailasalongtermgrowthplaywithlittledownside.

2014hasseenacontinuationoftheinvestmenttrendsevidentinprecedingyearswithafurthertighteningofprimeretailyieldsintheWestEnd.Investordemandhasremainedstrongparticularlyforsecurelyletinvestmentswithincorelocationswhichhascontinuedtoplacedownwardpressureonyields.

Themajorityofmarketactivitycomprisestransactionsofsub10,000sqftandthelowlevelofsupplyhasledtorentsinMayfairreturningtopre-downturnlevels.RentsforthebestofficefloorsinMayfairarenowconsistentlyachievingover£100persqft,forexampleGrosvenorhasrecentlypre-let20GrosvenorStreettoKPMGatarentreflecting£125persqftonthebestfloors.

TheaverageofficerentaltoneinMutualHouseis£45.49persqftrepresentingexcellentprospectsforrentalgrowth.

Wehaveadoptedaconservativerentalvaluefortheofficeaccommodationof£60.00persqft.

Thefollowingprovidesatableofrecentcomparableofficelettingsinthevicinity:

Address Tenant Size (sq ft)

Rent (£ per sq ft)

Term Date

49-51ConduitStreet DSquared 4,510 £110.00 15years Jun-2014

5HanoverSquare HeritageOil

7,983 £107.50 10years Jun-2014

33DaviesStreet CainHoyCapital

5,063 £115.00 10years May-2014

8-10HanoverStreet NOMUK 3,550 £112.50 10years Jan-2014

8-10HanoverStreet Muzinich&Co

3,857 £103.80 10years Jan-2014

31-33MaddoxStreet BrummerPartners

11,070 £65.00 10years Apr-2014

25ArgyllStreet H&M 10,761 £69.50 15years Mar-2014

RegentGate,56-58ConduitStreet

SFMUK 4,568 £82.50 10years Jul-2013

RegentGate,56-58ConduitStreet

PineRiverCapitalPartners

4,600 £85.00 10years Feb-2013

Ascarcityofinvestmentstockcontinuestofrustratethemountingdemandfromoverseasinvestors.Combinedwithastrongoccupationalmarket,historicallylowinterestratesandsomeGlobalpoliticalinstability,thishascontributedtotheallureofprimeLondoninvestmentsasabastionforwealthpreservationandcapitalgrowth.

TheCrownEstate’sdominanceofownershiponRegentStreetmeansinvestmentopportunitiesareextremelyrareandhighlysoughtafter.InvestmenttransactionsonthestreethavebeenverylimitedinrecentyearswiththebulkofprimeretailinvestmentsconcentratedonOxfordStreetandBondStreetinparticular.Furthermore,theeverpresentdemandfromretailerstoacquiretheirownbuildingsintheWestEndhasreinforcedinvestorconfidenceofthelongtermattractivenessofthelocation.

BelowweprovideexamplesofkeyWestEndinvestmentactivity:

Date Property Tenure Tenant PriceNet Initial Yield

July-1497NewBondStreet

FH RBS £18.80m 2.30%

May-1416NewBondStreet

LHPatekPhilippe&variousofficetenants

£112.00m 2.12%

Apr-14321OxfordStreet

FHSwarovski&Next

£38.00m 2.49%

Feb-14103NewBondStreet

vFH Christies £30.00m 1.87%

Jan-14141-142NewBondStreet

vFH Fendi £75.20m 2.64%

Nov-1316OldBondStreet

FH Prada £50.00m 2.45%

Sept-13126-127NewBondStreet

vFH Canali £44.00m 2.10%

Aug-13178NewBondSreet

FH Boodles £33.00m 2.14%

Jun-139OldBondStreet

FH GinaShoes £19.25m 1.41%

May-13171NewBondStreet

vFH HarryWinston £31.30m 2.26%

Feb-1317-18OldBondStreet

FH Prada £87.50m 2.75%

The office accommodation at Mutual House has an average rental tone of only £45.00 per sq ft which represents excellent value for Mayfair offices”

Prime West End retail yields continue to remain between 2% and 3%.”


COvENANTS

Church UK Retail Ltd (t/a Church’s)

Church’swasfoundedin1873bytheChurchfamilywhopioneeredluxuryfootweardesignthroughoutthelastcentury.Today,Church’sisoneoftheworld’sleadingluxuryshoemakerssynonymouswithawiderangeofleatherproducts.

In1999,Church’swastakenoverbyPrada,oneoftheworld’sleadersinluxurydesign.Thebrandcontinuestoexpandandnowtradesfromover40countriesworldwidewith11unitsintheUKandtheRegentStreetbranchactingasitsflagshipstore.

Fortheyearending31January2014ChurchUKRetailLimitedreportedaturnoverof£17,909,911andanetworthof£7,256,460.

Furtherinformationcanbefoundat:

www.church-footwear.com

Hackett Limited

HackettLimitedisadesignerofmen’sluxuryclothingandaccessorieswithaprestigiousBritishhistory.Foundedin1979byJeremyHackettandAshleyLloyd-JenningsfromastallonLondon’sPortobelloRoad,todayHackettisaninternationallyrecognisedluxurybrandoperatingfrom77storesin16countries.TheRegentStreetstoreisitslargestgloballyandisthecompany’sflagshipretailunit.

Fortheyearending31March2013thecompanyreportedaturnoverof£97,672,000,apre-taxprofitof£35,135,000andanetworthof£56,355,000.


www.hackett.com

T&G Allan Limited (t/a The Pen Shop)

ThePenShopwasestablishedin1858andtodayisEurope’slargestwritinginstrumentspecialistandoneofonlytwopenshopchainsintheworld.With21branchesnationwide,ThePenShopstocksawiderangeofluxurypensandleatheraccessories.

Fortheyearending28September2013thetenantcompanyreportedaturnoverof£8,327,011,apre-taxprofitof£19,560andanetworthof£1,655,717.


www.penshop.co.uk

AALTO Invest LLP

AALTOInvestLLPareaindependentassetmanagercoveringrealestate,creditandspecialsituationstrategies.FoundedbytwoformerMorgan&Stanleybankersin2011,thecompanyhasraised£700mofcapitalfromagroupofEuropeanPensionFunds.Thecompanyemploys23professionalsbasedoutoftheirLondon,Pfaffikon(Switzerland)andMadridoffices.


www.altoinvest.com

Kiko UK Limited

KikoUKLimitedispartofKikoMilanowhichwasestablishedin1997bythePercassiGroup.ThecompanyisanItalianprofessionalcosmeticsbrandthatfeaturesarangeofcutting-edgemakeup,faceandbodytreatmentsfromover500pointsofsaleinEurope.KikohasthreeLondonstoresoneofwhichisat262RegentStreet.


www.kikocosmetics.com

PFM Group Services Ltd

ThePFMGroupofcompaniesisaUSbasedleaderintheprovisionofindependentfinancialandinvestmentadviceaswellasmanagementandconsultingservicestolocal,stateandregionalgovernmentandnon-for-profitinstitutions.

PFMwasestablishedinPhiladelphiain1975.TheGrouphas47officesacrossNorthAmericaandemploysmorethan500professionalsandservesclientsineveryregionoftheUS.


www.pfm.com

Applied Predictive Technologies (UK) Limited

AppliedPredictiveTechnologies(APT)isasoftwarecompanythatprovidesnative,cloud-basedsoftwaretoolsthatenablelarge,consumer-focusedbusinessestoseizetheBigDataanalyticsopportunity.APTsclientsincludeanumberofbluechipandFortune500companies.

Thecompany,foundedin1999,employsapproximately200peopleandisheadquarteredinArlington,VirginiawithadditionalofficesinSanFrancisco,LondonandTaipei.


www.predictivetechnologies.com

Hong Kong Tourism Board

TheHongKongTourismBoard(HKTB)isaGovernment-subventedbodyfoundedin2001andreplacedtheHongKongTouristAssociation(HKTA)whichwasestablishedin1957.Thebody’sroleistomarketandpromoteHongKongasatraveldestinationworldwide.UnliketheHKTA,theHKTBisnotaffiliatedtoaspecificsectorororganisation,allowingittowhollysupporttheinterestsofHongKong’stourism.

TheHKTBhas15branchofficesand5representativeofficesworldwideandemploysapproximately325people.


www.discoverhongkong.com


ImportantNotice

Savills,MichaelElliott(thejointsalesagents)andtheirclientsgivenoticethat:

1. Theyarenotauthorisedtomakeorgiveanyrepresentationsorwarrantiesinrelationtothepropertyeitherhereorelsewhere,eitherontheirownbehalforonbehalfoftheirclientorotherwise.Theyassumenoresponsibilityforanystatementthatmaybemadeintheseparticulars.Theseparticularsdonotformpartofanyofferorcontractandmustnotberelieduponasstatementsorrepresentationsoffact.

2. Anyareas,measurementsordistancesareapproximate.Thetext,photographsandplansareforguidanceonlyandarenotnecessarilycomprehensive.Itshouldnotbeassumedthatthepropertyhasallnecessaryplanning,buildingregulationorotherconsentsandthejointsalesagentshavenottestedanyservices,equipmentorfacilities.Purchasersmustsatisfythemselvesbyinspectionorotherwise.

DesignedandProducedbySavillsMarketing:02074998644|September2014

WEBSITE

Furtherinformationcanbefoundonthemarketingwebsite:

www.mutual-house.com

vAT

EPC

PROPOSAL

CONTACTS

ThepropertyiselectedforVATanditisenvisagedthesalewillbetreatedasaTransferofaGoingConcern.

ThepropertyhasanEPCratingofD(98).

Offersinexcessof£85,000,000areinvitedfortheLongLeaseholdinterest.

Thisreflectsaninitialyieldof2.95%andareversionaryyieldof3.83%assumingouropinionofERV.

Forfurtherinformationpleasecontact:

Jonathan O’Regan Dominic RoweSavills MichaelElliott+44(0)2074098179 +44(0)[email protected] [email protected]

Anthony Selwyn David HarrisonSavills MichaelElliott+44(0)2077583880 +44(0)[email protected] [email protected]

George Gawthrop Savills +44(0)[email protected]

CAPITAL ALLOWANCES

Anyunclaimedcapitalallowanceswillbemadeavailable.

40MUTUAL HOUSE | 193 - 201 | REGENT STREET | LONDON W1

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