Sanctuary Buildings //LONDON SW1

FREEHOLD GOVERNMENT LET OFFiCE inVEsTMEnT

Sanctuary Buildings // LONDON SW1

01 investment summary

05 location

10 communications

13 tHe cHanGinG Face oF victoria

17 description

22 accommodation

27 tenure and tenancy

28 asset manaGement initiatives

31 investment market commentary

32 proposal

34 FurtHer inFormation

The opportunity to acquire a substantial freehold office building with secure government income in one of the most rapidly developing areas of the capital. • Landmark headquarters

development of 227,100 sq ft of Grade A office space in a strategic West End location within close proximity to the Houses of Parliament.

• Freehold.• High quality office floor plates of

up to 26,790 sq ft centred around a spectacular atrium and arranged over two basements, lower ground, ground and eight upper floors.

• The building is entirely let to the undoubted covenant of The Secretary of State for the Environment, on a lease expiring September 2017.

• Total passing rent of £10,300,000 per annum which equates to only £45.35 per sq ft overall.

• Excellent asset management opportunities at lease expiry to increase the office floor area, or convert to residential and capitalise on the rising residential values in Victoria.

• Opportunity to benefit from the continued transformation of Victoria’s cityscape with a number of high profile mixed use, office, retail and residential schemes currently under construction.

• Offers are sought, subject to contract, for the freehold interest in Sanctuary Buildings. The freehold interest is held in a Special Purpose Vehicle (‘SPV’). We are seeking offers in excess of £184,000,000, reflecting a Net Initial Yield of 5.50% (assuming acquisition costs of 1.80%), and a capital value per sq ft of £810.

inveStment Summary

Sanctuary Buildings //A significant freehold investment with long term asset management opportunities.

01

BuckinGHam palace

st James’s park

Green park

Hyde park

Westminster catHedral

cardinal place

Westminster aBBey

Houses oF parliament

mayFair

st James’s

Horse Guards parade

Sanctuary BUILDINGS//

Bordered by St James’s Park and

Buckingham Palace to the north, the

squares of Belgravia to the west and the

River Thames to the south and east,

Victoria combines some of the most historic

sites in London, the busiest transport

interchanges and some of the capital’s

most desirable residences.

Victoria’s strategic location, separating

the iconic West End districts of Mayfair,

St James’s, Westminster and Belgravia,

coupled with the area’s excellent transport

links and ongoing transformation of its office,

retail and residential stock has established

Victoria as a thriving West End address.

Victoria has been historically shaped

by its proximity to Westminster and the

Houses of Parliament leading to the area

being dominated by political occupiers.

However, in recent times, thanks to

transformational developments such as

Cardinal Place, Belgrave House and

The Peak, the area has reinvented itself

attracting major corporate occupiers

including Burberry, Jimmy Choo,

Tom Ford and Microsoft.

Victoria is the epicentre of political and symbolic power in london, from the political village of Westminster to the home of royalty at Buckingham Palace.

location

05

Vincent Square

ST PAUL’S

BANK

CITY THAMESLINKSTATION

CANNON STREETSTATION

CHARING CROSSSTATION

LONDON BRIDGESTATION

WATERLOO (EAST) STATION

WATERLOO STATION

EMBANKMENT

SOUTHWARK

VICTORIA EMBANKMENT

VIC

TOR

IA E

MB

AN

KM

ENT

WH

ITEH

ALL

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AN

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STRAND

ALDWYCH

KIN

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AY

FLEET STREET

NE

W B

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GE

STR

EE

TFA

RR

ING

DO

N S

TRE

ET

QUEEN VICTORIA STREET

CHEAPSIDELUDGATE HILLCORNHILL

SOUTHWARK STREET

BLA

CK

FRIA

RS

RO

AD

BLA

CK

FRIA

RS

BR

IDG

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WATERLO

O BRID

GE

HUNGERFORD BRIDGE

WESTMINSTER BRIDGE

LAMBETH BRIDGE

SOU

THW

AR

K B

RID

GE

LON

DO

N B

RID

GE

TOW

ER B

RID

GE

FENCHURCH STREET

WESTMINSTER

GREEN PARK

PICCADILLY

MANSION HOUSE

LIVERPOOL STREETSTATION

THE MALL

VICTORIA STREET

LEICESTER SQUARE

COVENT GARDEN

TEMPLE MONUMENT

TOWER HILL

BLACKFRIARS

GR

EA

T SMITH

STRE

ET

ST JAMES’S PARK

WILT

ON STREET

UPPER BELGRAVE STREET

VICTORIA

OXFORD CIRCUS

St Paul’sCathedral

LondonAquarium

BoroughMarket

Towerof

London

Trafalgar Square

Somerset House

Lincoln’s Inn Fields

St James’s ParkGreen Park

Buckingham Palace

LeicesterSquare

St James’s Square

PiccadillyCircus

Royal Courts of Justice

Royal Festival Hall

Queen Elizabeth Hall

HaywardGallery

National Theatre

Imax

London Eye

Tate Modern

The Globe

County Hall

Covent Garden Market

Royal Opera House

Parliament Square

Westminster Abbey

Houses ofParliament

Horse GuardsParade

Bank of EnglandCOVENT

GARDEN

SOHO

ST JAMES’S

THE CITY

SOUTH BANK

RI

VE

R

TH

AM

E S

VICTORIA

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101112

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3 SanctuaryBuildings //

OFFicE OccupiERs1. Metropolitan Police2. Boeing3. Global Infrastructure Partners4. John Lewis5. Microsoft6. Development Securities7. 3i8. P&O9. Experian10. Phillips de Pury & Co11. Tom Ford12. Links of London13. Association of the British

Pharmaceutical Industry

14. Rolls Royce15. Channel 4 Television16. Burberry17. The Home Office18. Energy Networks Association19. HM Treasury20. Foreign & Commonwealth Office THEaTREs1. Apollo Victoria Theatre2. Victoria Palace Theatre3. Above The Stag Theatre4. St James Theatre

The appeal of Victoria now extends far

beyond that of office occupiers. The area is a

highly desirable place to live, shop and visit.

Offering a diverse range of local amenities

including luxury hotels, grand theatres,

high-end retail and a selection of fashionable

bars and restaurants, Victoria has established

itself as a vibrant destination well suited to

the needs of 21st century London.

07

New Victoria Station (CGI)

The improvements will include:

• A new underground north ticket hall

at the junction of Bressenden Place

and Victoria Street with an entrance

at street level;

• Enlarging the Victoria line south ticket hall;

• Nine new escalators;

• A new interchange tunnel connecting

the two ticket halls;

• New lifts providing step-free access

between street level, ticket hall and

Victoria line platform levels;

• New lifts providing access between

the Victoria line and District and

Circle line platforms;

• Improved access and new lifts

between the National Rail and

underground platforms.

The construction of the north ticket hall

is due to complete in the summer of 2016,

with the remainder of the improvement

works due for completion in 2018.

Victoria Station, 950 metres to the west

of the property, is one of London’s busiest

transport hubs. In 2010/2011 it transported

73.6 million passengers making it the UK’s

second busiest railway station. Victoria

Station provides quick and direct access

to London’s Gatwick Airport, with trains

departing every 15 minutes. In addition,

the coach terminus is London’s main coach

station and provides access to the majority of

major cities around the UK and Europe.

Westminster, St James’s Park and

Victoria underground stations as well as

Waterloo underground and mainline stations

are all within walking distance providing

access to the Jubilee, Victoria, Northern,

Bakerloo and Circle and District lines.

Westminster underground is the closest

station (approximately 300 metres to the

north) and provides access to the Circle,

District and Jubilee lines.

Victoria is exceptionally well served by public transport and is regarded as one of the most important transport hubs in london

communicationS

Eust

on (1

4 minut

es*)

Liver

pool S

treet

(16

minut

es*)

Canno

n St

reet

(8 m

inut

es*)

Black

friar

s (6

minut

es*)

Waterloo (1 m

inutes*)

Paddington (1

3 m

inutes*)

Green Park(2 minutes*)

WestminsterSt. James’s

Park

King

’s Cro

ss S

t. Pa

ncra

s (16

minu

tes*

)

Victoria (3 minutes*)

Heathrow

airport (35

minutes*

)

Baker S

treet (7 m

inutes*)

via Paddington E

xpress

iMpROViNG cOMMuNicaTiONs

Victoria Station is currently in the

process of being substantially upgraded.

£700 million is being invested into

improving the existing station’s accessibility

and transport infrastructure.

SanctuaryBuildings //

* Travel times from Westminster underground

10 11

DEVELOpMENTs

Victoria’s traditional political heart is being further transformed with a series of place-changing developments bringing extra vitality and variety to the area.

The stylish and sleek nature of the newly

completed developments contrast superbly

with the instantly recognisable period

architecture that Victoria is famous for.

Historic cathedrals, royal parks and famous

theatres are set alongside the award winning

modern architecture of Cardinal Place, The

Peak and the future Land Securities’ schemes

that are emerging from the ground.

Occupiers from all sectors, from finance

and technology to media and fashion, now

prefer Victoria to the more traditional office

locations of Mayfair and St James’s due to

its excellent transport links, unrivalled office

floor plates and more affordable rents.

Over the coming decade much of

Victoria will be further transformed

into something well tuned to the needs

of contemporary London, whilst also

maintaining its unique cultural heritage.

tHe cHanGinG Face oF victoria

E KiNGsGaTE HOusE // 2015

• Demolition started in Spring 2012.

• Lynch Architects designed scheme with full

planning consent to deliver approximately

345,000 sq ft across two buildings. The buildings

will comprise approximately 189,000 sq ft of

Grade ‘A’ offices, 46,000 sq ft of retail, and

100 state of the art residential apartments.

• Practical completion due in 2015.

D caRDiNaL pLacE // 2005

• Landmark trio of buildings designed by

EPR Architects.

• Cardinal Place encompasses 564,300 sq ft

of world class office accommodation

and 96,075 sq ft of retail, leisure and

restaurant space.

• Completed in 2005 and widely recognised

as being the most significant development to

take place in Victoria for decades.

F 62 BucKiNGHaM GaTE // 2013

• Redevelopment commenced in March 2010.

• 12 storey landmark mixed use building offering

approximately 269,000 sq ft of world class

office and retail accommodation.

• Cutting edge and environmentally sensitive

accommodation designed jointly by Pelli Clarke

Pelli Architects and Swanke Hayden Connell.

• Completion anticipated in Q2 2013.

c 123 VicTORia sTREET // 2012

• Comprehensive refurbishment providing a

223,000 sq ft landmark mixed-use office and

retail building.

• Comprising 178,000 sq ft of modern

Grade ‘A’ office space on the upper floors

and 45,000 sq ft of high quality retail space

at street level.

• Jimmy Choo have selected the building as

their global headquarters and have taken

approximately 55,000 sq ft.

B THE pEaK // 2009

• Landmark headquarters office building

completed in Autumn 2009.

• 8 floors of prime office space covering

approximately 77,500 sq ft.

• Joint venture development between Heron

International, Co-operative Insurance Society

and AXA Real Estate Investment Managers.

• Named ‘West End development of the Year’

at the Offices 2010 Awards.

a VicTORia ciRcLE // 2016-2018

• Consented scheme will be home to

approximately 903,000 sq ft of world class

office, retail and residential space across five

buildings, linked by attractive public spaces.

• The masterplan will include over 597,000 sq ft

of Grade A office accommodation,

125,000 sq ft of retail space at ground and first

floors and over 200 new apartments.

i 1-19 VicTORia sTREET //

• This 335,500 sq ft office building let to the

UK Government was purchased by MEC in

December 2012 for £180 million reflecting

a NIY of 4.82%.

• The property was purchased as a long term

redevelopment opportunity.

H NEw scOTLaND YaRD //

• Metropolitan Police are disposing of this 1960s

office building after confirming that they will be

vacating the site.

• Potential to provide a substantial mixed use

development at vacant possession.

G FiVE HOwicK pLacE // 2012

• 227,000 sq ft mixed use scheme.

• Joint Venture between Terrace Hill and

Doughty Hanson and designed by leading

architects Rolfe Judd.

• 144,200 sq ft of high quality Grade ‘A’ office

accommodation over lower ground, ground

and six upper floors.

• 23 luxury private residential apartments in

addition to 10 affordable apartments.

a

i

B

c

D

H

E

F

G

Sanctuary BUILDINGS//

Photograph - kind permission of Land Securities

13

Sanctuary Buildings is an impressive triple-

fronted office building developed to an

exceptional standard in 1991. The property

was partly constructed behind a retained

façade with elements of the original building

‘Park House’ being incorporated into the

current property.

The property provides approximately

227,100 sq ft of office and ancillary

accommodation arranged over 12 floors,

comprising of two basements, lower ground,

ground and eight upper floors.

The main office entrance is located on

Great Smith Street and leads to a double

height reception and a spectacular central

glazed atrium, which provides excellent levels

of natural light throughout the building.

The large open plan floor plates of

up to 26,790 sq ft are arranged around the

central atrium and provide highly desired

flexibility, generally unobtainable in other,

more traditional West End office locations.

Each floor is served by a bank of six

passenger lifts as well as two scenic passenger

lifts and two fireman / goods lifts.

deScription

Sanctuary Buildings //large floorplates arranged around a spectacular glazed atrium.

17

The building has been exceptionally

well maintained and was extensively

refurbished in 2009 by the Secretary

of State. The refurbishment completely

transformed the lower ground floor by

opening up the ground floor slab to increase

natural daylight and to provide a grand

staircase with access to the lower ground

and basement floors.

As part of these works, the tenant

installed new meeting room suites, break-out

areas, a staff canteen and gymnasium.

The property provides 28 car parking

spaces at basement level which are accessed

from St Ann’s Street via two car lifts.

THE pROpERTY pROViDEs GRaDE a OFFicE spacE TO THE FOLLOwiNG spEciFicaTiON:

• Four pipe fan coil air-conditioning.

• Clear floor to ceiling heights of up to

2.6 metres.

• Fully accessible 100 mm raised access floors.

• Suspended ceiling with void of c. 350 mm.

• Full height glazing to the atrium.

• Double glazed external windows.

• Male and female WCs on each floor.

• Substantial lift provision of:

• 6 x 21 person lifts accessing ground and all

upper floors, two of which serve basement 1

and two of which serve basement 2.

• 2 x 24 person scenic lifts overlooking the

atrium serving ground to eighth floors.

• 1 x 40 person fireman /goods lift

serving all floors.

• 1 x 10 person fireman /passenger

lift serving basement 2 to seventh floor.

19

15.5

1m

14.85m

7.6

4m

19.43m

49

.78

m

13.72m

VOID

VOID

SERVICE YARD

RECEPTION

ABBEY ORCHARD STREET

GR

EA

T S

MIT

H S

TR

EE

T

Office (NLA) Reception

VOID

AC

CESS

4.7

9m

66

.83m

19.43m

46.59m

37.42m

13.37m

11.7

5m

16.32m

10.7

0m

66

.88

m

27.02m

VOID VOID

ACCESS

8.0

m

9.10m

25.25m

50.9

9m

14.50m

15.36m

18.56

m

Ground Floor1,746 sq m | 18,799 sq ft

accommodation

The property provides the following net internal floor areas. The areas are stated in the rent review clause of the occupational lease to the First secretary of state, dated 29th september 1991.

Floor office space (sq ft)

storage space (sq ft)

total Floor space (sq ft)

8th 11,920 – 11,920

7th 14,887 – 14,887

6th 16,782 92 16,874

5th 22,264 49 22,313

4th 22,966 19 22,985

3rd 26,341 19 26,360

2nd 26,771 19 26,790

1st 25,549 – 25,549

Ground 18,799 – 18,799

Lower Ground 18,466 – 18,466

Basement 1 18,039 625 18,664

Basement 2 – 3,493 3,493

total 222,784 4,316 227,100

A separate PCA report is available on request and shows less than a 1% variance, totalling 225,485 sq ft.

First Floor2,374 sq m | 25,549 sq ft

Fourth Floor2,135 sq m | 22,985 sq ft

Eighth Floor1,107 sq m | 11,920 sq ft

22

Church House

23-25

Offices

Offices

Retail

Nursery School

Offices

Offices

epartment O

f BusinessInnovation

AndSkills

35

1-19W

estminsterM

ansions

2-4 Edward Alsop Court

Matthews HouseSaint

C hurch

S t Matthews

GreatPeterStreet

GreatPeterStreet

LittleSm

ithStreet

Great Smith Street

Great Smith Street

Saint Anns Street

SaintAnnsStreet

AbbeyO

rchardStreet

42 Offices

Recreation Site

Offices20

21

4

16a

403638

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House30 Trevelyan

12 Morrison Court

23-25

8m8a

1715

28-32

1h-17h

1g-17g

1f-16f

1d-16d

1b-17b

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18

4347

31

TENuRE

The property is held freehold.

TENaNcY

The property is let in its entirety to

The Secretary of State for the Environment

for a term of 26 years from 29th September

1991, expiring 28th September 2017.

The current passing rent of

£10,300,000 per annum was last reviewed

on 25th December 2007 and equates to

£45.35 per sq ft overall.

The lease is drawn on full repairing

and insuring terms and the rent is subject

to an outstanding upward only rent review

from 25th December 2011. There is a further

rent review on 25th December 2015.

tenure and tenancy

Ordnance Survey © Crown Copyright 2013. All rights reserved.

27

Floorpotential office

area (sq m)potential office

area (sq ft)

8th 1,640 17,653

7th 1,891 20,354

6th 1,981 21,323

5th 2,458 26,458

4th 2,492 26,824

3rd 2,778 29,902

2nd 2,743 29,525

1st 2,550 27,448

Ground 1,805 19,429

Lower Ground 2,011 21,646

Basement 1 1,295 13,939

Basement 2 283 3,046

total 23,927 257,547

aSSet manaGement initiativeS

OFFicE

There is the potential to undertake part

atrium infill works to increase the area of

the office floor plates. A scheme has been

drawn up by Rolfe Judd and extends over

the first to eighth floors.

This adds a total of 30,447 sq ft, and

can be achieved without the need to apply

for planning permission as this extension

does not add to the gross external area of

the property. This has been confirmed by

the current owner’s Counsel in a letter, a

copy of which can be provided upon request.

A further scheme has been drawn up

showing the potential to add an additional

storey of 6,501 sq ft, subject to relevant

planning consents.

REsiDENTiaL

Sanctuary Buildings’ position just off the

main shopping thoroughfare of Victoria

Street and minutes from world-renowned

attractions such as Westminster Abbey and

Big Ben, render it perfectly placed for a

future residential scheme. A design has been

drawn up by Rolfe Judd for the conversion

of the existing building to residential use.

The scheme proposes a total of 186,239 sq ft

of net saleable area spread across

191 apartments.

28

VicTORia ciRcLE //

Date February 2012

Purchaser Victoria Circle Partnership (JV between Land Securities and CPPIB)

Purchase Price £163,000,000

Yield Development Site

1-19 VicTORia sTREET //

Date December 2012

Purchaser MEC

Purchase Price £180,500,000 (£538 per sq ft)

Yield 4.80%

ELaND HOusE //

Date January 2012

Purchaser Tishman Speyer

Purchase Price £170,000,000 (£672 per sq ft)

Yield 7.14%

THE pEaK //

Date December 2012

Purchaser Cityhold

Purchase Price £113,000,000 (£1,153 per sq ft)

Yield 5.13%

The Victoria investment market has witnessed a buoyant 12 months with £949 million transacted within the calendar year.

The market has attracted a wide

range of domestic and overseas parties with

investors seeking to capitalise on the future

vision of Victoria.

The investment outlook of Victoria

remains strong as its transformation

continues to attract blue chip tenants and

improve the area aesthetically. Consequently,

well-located, secure income assets will

continue to attract high investment demand.

inveStment market commentary

31

propoSal

Offers are invited for the freehold interest in sanctuary Buildings.

The freehold interest is held in a Special

Purpose Vehicle (“SPV”) which is available

for purchase.

We are seeking offers in excess of

£184,000,000, reflecting a Net Initial Yield of

5.50% (assuming acquisition costs of 1.80%),

and a capital value per sq ft of £810.

32

FurtHer inFormation

DISCLAIMER: Misrepresentation Act 1967 and Declaration. CBRE Limited for itself and for the Vendors as Agent for the Vendors gives notice that: 1. These particulars are set out as a general outline only for guidance to intending Purchasers and do not constitute any part of an offer or contract. 2. Details are given without any responsibility and any intending Purchasers or Third Parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. 3. No person in the employment of CBRE Limited has any authority to make any representation or warranty whatsoever in relation to this property. 4. Unless otherwise stated, all prices and rents are quoted exclusive of VAT. Subject to Contract. February 2013. Designed and produced by Sutton Young 020 7935 0966 (SYO50503)

pLaNNiNG

The Westminster Planning Authority have confirmed that elements of the retained façades of the property are listed.

The property lies within the Westminster Abbey and Parliament Square Conservation Area and also falls within the

Central Activity Zone as defined in the City of Westminster Unitary Development Plan.

VaT

The property has been elected for VAT.

ENERGY pERFORMaNcE cERTiFicaTEENERGY pERFORMaNcE cERTiFicaTE NON DOMEsTic BuiLDiNG

Sanctuary Buildings

Great Smith Street

London SW1P 3BT

Certificate Reference Number:

9894-3043-0694-0900-8901

ENERGY pERFORMaNcE assET RaTiNG

More energy efficient

A 0–25

26–50

51–75

76–100

101–125

126–150

Over–150

A+

BC

EFG

105

Net zero CO2 emissions

This is how energy e�cient the building is.

More energy e�cient

Less energy e�cientLess energy efficient

This certificate shows the energy rating

of this building. It indicates the energy

efficiency of the building fabric and the

heating, ventilation, cooling and lighting

systems. The rating is compared to two

benchmarks for this type of building:

one appropriate for new buildings and

one appropriate for existing buildings.

There is more advice on how to interpret

this information on the Government’s

website www.communities.gov.uk/epbd.

TEcHNicaL iNFORMaTiON BENcHMaRKs

Main heating fuel:

Building environment:

Total useful floor area (sq m):

Building complexity (NOS level):

Building emission rate (kgCO2/sq m):

Natural Gas

Air Conditioning

29146

4

62.09

Buildings similar to this one could have

rating as follows:

54145

if newly built

if typical of the existing

stock

wEBsiTE

An electronic data room www.sanctuarybuildings.com, is available and contains:

• Occupational lease

• Building survey

• Plowman Craven measured survey

• EPC

• Rolfe Judd office and residential proposals

• Photo library

DaViD GREENT: +44 (0)20 7182 2302 E: david.green@cbre.com

JOHN sTaRKiET: +44 (0)20 7182 2582 E: john.starkie@cbre.com

Max sHEpHERD-cROssT: +44 (0)20 7182 3526 E: max.shepherd-cross@cbre.com

cONTacTs

For further information please contact:

34