• An opportunity acquire a London Mayfair Prime Office Investment

• The property is located within close proximity to internationally renowned landmarks

• The property has recently been refurbished to a high standard

• The property has recently been let for 13 years

• The new letting provides secure income

• The rental income will increase in line with increases in the Consumer Price Index (CPI), subject to a cap and floor of between 1% and 4%

• Offers in the region of £20.75 million reflecting a net initial yield of 3.5% (costs assumed at 6.75%)

• The property is available by way of fast and secure online execution using the clicktopurchase® platform, with the added security of Blockchain anchoring.

The subject property benefits from being immediately to the south of Oxford Street, the world’s biggest high street offering 2.4 km (1.5 miles) of shopping with more than 90 flagship stores. High Street brands such as Primark, Marks & Spencer, River Island, John Lewis and Topshop are all in close proximity. In addition, the world-renowned Selfridges department store is a mere two minute walk from the subject property.

Park Lane is immediately to the west, home to renowned hotels such as Grosvenor House, the Dorchester, London Hilton, Four Seasons and InterContinental. The property also benefits from being adjacent to Hyde Park, the largest Royal Park in London.

The property comprises a recently comprehensively refurbished Mayfair office property, double-fronted and arranged over lower ground, ground and four upper floors.

The property provides high quality, “CAT A”, Central London attractive office accommodation. The refurbishment was completed during 2017 with the development specification including the installation of VRF air conditioning, a new 12 person passenger lift, metal raised tile floors, floor to ceiling heights up to 3.0 metres and a new rear terrace/courtyard. The WCs, which are located on each floor, and lower ground floor showers have been finished to a high standard with finishes including limestone tiling.

A full set of drawings and plans in relation to the property are held within the data room. In addition, the marketing presentation provides high quality video and photography, as well as a “Virtual Tour” to enable an investor to fully appreciate the quality of the property easily.

Full details of the professional team and contractor used for the refurbishment are held within the data room, along with warranty and associated information. Professional warranties, along with associated construction documentation, will be assigned to the purchaser of the investment.

In addition, a Building Survey Report, including sub-consultant reports, is available to review. A purchaser will be able to formally rely upon the Report

A complete Operations and Maintenance Manual is available for review on request.

The interest for sale is a long leasehold interest held from Grosvenor West End Properties for a term of 125 years from 25th March 1998, expiring 24th March 2123. Hence, approximately 103 years unexpired remains on the lease term. The lease is held on effectively full repairing and insuring terms.

The ground rent payable is equivalent to 10% of the “Income for that Rent Period”, namely the yearly period from 25^th March.  “Income” is defined as “…the rental received by the Tenant…”  Hence, head rent will not be payable to the head landlord during the rent-free and half-rent periods granted to the occupational tenant.

Consent to the assignment of the head lease will be required from the head landlord.  If the buyer is offshore the head landlord is likely to require either a guarantee from an appropriate UK based entity, or a rent deposit of three times the annual outgoing, in respect of the long leaseholder’s obligations to reimburse the costs of insuring the premises.  The current rent deposit would be £39,102.

The property has been let to Landmark Space Limited for a term of 13 years from 14th June 2019 on effectively full repairing and insuring terms, at an initial rent of £860,000 per annum (£824.62 per sq m / £76.63 per sq ft overall)

The lease provides for five yearly upwards only rent reviews based upon increases in the Consumer Price Index (CPI) subject to an annual cap and floor of between 1% and 4%.

The letting provides the tenant with an incentive package equivalent to 29 months’ rent free by providing a 14 month rent free period, plus a further 30 months at half-rent. The vendor will “top-up” the income by an appropriate adjustment on the completion sum in order that the purchaser does not suffer an income shortfall.

The lease is guaranteed by O.C.S Group Limited. The guarantor will be released from their obligations on receipt of three consecutive year’s audited accounts from the Lessee showing net profits of at least three times the annual rent.

“In 2017 alone, the total amount of flexible space in the top 20 largest flex markets globally grew by 30% - equivalent to around 1 million square metres. Since 2014, the market has more than doubled, and in leading cities such as London, it now accounts for one-fifth of take up.” - JLL Flex space EMEA Research, November 2018

“Leasing activity across the West End continued to remain resilient over the first quarter of this year, amidst the continued uncertainty, with occupiers remaining undeterred and pushing forward to complete on 98 transactions. Overall 1.2m sq ft completed making it the highest amount of take-up we have seen over the first quarter in 6 years, and up 30% on the long-term average.” - Savills West End Office Market Watch – UK Commercial April 2019

“Prime yields were stable in Q1 2019 at..3.50% in the West End” - Avison Young Research, Central London office analysis Q1 2019, May 2019.

“..certain key submarkets are beginning to see downward movement in incentive packages in the face of record shortages of new/refurbished accommodation…..the minimal supply of new product over the next 12 months will provide continued support for potential prime rental growth in Q3-Q4 2019.” - Collier’s International, London Offices Snapshot Q1 2-19

The Seller has opted to tax in respect of the property.  It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

We are instructed to seek offers in the region of £20,750,000 (Twenty Million Seven Hundred and Fifty Thousand Pounds), subject to contract, reflecting a net initial yield of 3.5% assuming purchaser’s costs of 6.75%.

1. An opportunity to acquire a prime, London Mayfair office investment

2. The property is located in a prominent and prime office location

3. The office has recently been extensively refurbished to a high standard

4. The property has recently been let to a secure covenant

5. The recent letting provides income for a term of 13 years

6. An opportunity for an investor to easily acquire a prime investment where the rent will rise in line with increases in the Consumer Price Index (CPI)

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