Derwent London Plc · LSE:DLN
Derwent London — Investor Presentation (October 2014)
54 slides from Derwent London's investor presentation, Oct 14, 2014
Slide 1: Derwent London Property Tour 14 October 2014
DERWENT LONDON PROPERTY TOUR 14 O C TO B E R 2 014
Slide 2: Timetable
T I M E TA B L E 1 12.00 Arrival at 1 Oliver’s Yard EC2 (White Collar Factory Marketing Suite) 12.15 Introduction: John Burns, Chief Executive, Derwent London Derwent’s developments: Simon Silver, Head of Regeneration, Derwent London White Collar Factory: Stephen Taylor, AHMM Monmouth House: Joe Mor
Slide 3: Itinerary
Wharfdale Rd Kings Cross Angel itinerary 2 Alba ny St St Pancras Hoxton International Th Euston am es lin k Euston Up Old Street Old Street pe rW ob Clerkenwell 7% 4% ur nP l Warren Street 2 Great 9% 3 1 Shoreditch Regent’s 10 Bloomsbury 4 Wo Portland Street b Park ur 5 nP Russell Square Clerkenwell
Slide 4: 3
3
Slide 5: Derwent London - background
D E R W E N T L O N D O N - background 4 • The largest London-focused Real Estate Investment Trust P ortfolio composition ( by area ) • £3.7 billion commercial real estate portfolio as at 30 June 2014 (97% central London) • 5.7 million sq ft – 69% West End and 28% City Borders with the latter princi
Slide 6: Crossrail
crossrail 5 • Transformation of entire areas • 70% (£2.6bn) of portfolio within 800m of a Crossrail station (64 properties, 3.6m sq ft) and 22% within 400m • The first Crossrail services through central London will start in late 2018 55-65 North Wharf Road W2 1-2 Stephen Street W1 1 Oxford Street W1
Slide 7: The Tech Belt
nb ur yR den Road d Essex Road T H E T E C H B E LT London 6 Fields Islington Carnegie St 10-4 Pentonville Road N1 Angel Building EC1 Tech Belt 26 properties Wharfdale Rd 2.0m sq ft Haggerston Kings Cross 55,000 sq ft Angel 262,000 sq ft Rental income of c.£42m pa Park Capital value of c.£1.2bn Hoxt
Slide 8: Slide 8
Slide 9: 1 Oliver's Yard, Old Street
1 O L I V E R ’ S y A R D ec 2 8 O ld S treet 1.0m sq ft 1 8 6 , 0 0 0 s q ft - core income 45% Core income Capital value band: £75-£150m Office ERV: £50-52.50 psf 1994 Companies House and Leonard Street site acquired for £7.4m (£38 psf). 1995 Lease extended from break in 1997 to 1999. Rent increase
Slide 10: a S
a S
Slide 11: White Collar Factory, Old Street Yard EC1
W hite C ollar F actory , old street yard E C 1 10 O ld S treet 11% 2 9 3 , 0 0 0 s q ft - on - site 1.0m sq ft On-site Capital value band: £50-£75m Average office ERV: c.£50 psf 2007 City Road Estate is located on Old Street roundabout. Six multi-let properties totalling 124,000 sq ft with an incom
Slide 12: 1 Oliver's Yard and Monmouth House sites
Existing holdings Acquisition 1 Oliver’s Monmouth Yard House 19-23 Featherstone Street Old Street roundabout White Collar Factory
Slide 13: Monmouth House & 19-23 Featherstone Street EC1
monmouth house & 1 9 - 2 3 featherstone street E C 1 12 O ld S treet 6 9, 0 0 0 s q ft - under appraisal 1.0m sq ft Under 12% Appraisal Capital value band: £25-50m Office ERV: £25-32 psf Two properties immediately south of the White Collar Factory and opposite 1 Oliver’s Yard. Monmouth House 2007 Mo
Slide 14: 13
13
Slide 15: Morelands, 5-27 Old Street EC1
M orelands , 5 - 2 7 old street E C 1 14 clerkenwell 1.0m sq ft 9 0 , 0 0 0 s q ft - core income 45% Core income Capital value band: £25-50m Office ERV: £40-50 psf 1996 Acquisition of Morelands (80,000 sq ft - 31% vacant). 60-year leasehold for £1.6m (£20 psf). 1997 Planning received for loft-like o
Slide 16: S — ae
S — ae > ~ a
Slide 17: The Buckley Building, 49 Clerkenwell Green EC1
T he B uckley B uilding , 4 9 clerkenwell green e C 1 16 clerkenwell 1.0m sq ft 8 5 , 1 0 0 s q ft - core income 45% Core income Capital value band: £75-100m Office ERV: £42.50-57.50 psf 2007 Acquisition of Woodbridge House (75,400 sq ft) for £49.1m after costs (£651 psf). 2010 Lease surrender agree
Slide 18: Slide 18
Slide 19: Turnmill, 63 Clerkenwell Road EC1
T urnmill , 6 3 clerkenwell road E C 1 18 clerkenwell 11% 7 0 , 5 0 0 s q ft - on - site 1.0m sq ft On-site Capital value band: £50-75m Office ERV: £55 psf 2004 Acquired “gateway to Clerkenwell” (44,000 sq ft) for £9.1m after costs (£207 psf). 2006–12 Short-term lettings prior to redevelopment. 2007
Slide 20: Slide 20
Slide 21: 19 Charterhouse Street EC1
1 9 charterhouse street ec 1 20 clerkenwell 6 3 , 7 0 0 s q ft - earmarked for appraisal 1.0m sq ft Earmarked for Appraisal Capital value band: £25-50m Office ERV: £26.50 psf 25% 2013 Six-storey freehold office building acquired in November for £41.3m after costs (£648 psf) at a net initial yield of
Slide 22: Slide 22
Slide 23: Bush House, South West Wing, Strand WC2
bush house , south west wing , strand wc 2 22 covent garden 1 0 8 , 0 0 0 s q ft - earmarked for A PPR A ISA L 1.0m sq ft Earmarked Capital value band: £0-25m for Appraisal ERV: £0.23 psf 25% 2007 A freehold office fully let to Mapeley until 2028, with HMRC in occupation, at £25k pa (£0.23 psf). Inc
Slide 24: as = = = — I = = = x fac! i jadanidii
as = = = — I = = = x fac! i jadanidii
Slide 25: 22 Kingsway WC2
2 2 kingsway wc 2 24 holborn /midtown 9 1 , 4 0 0 s q ft - earmarked for A P P R A I S A L 1.0m sq ft Earmarked for Appraisal Capital value band: £50-75m Office ERV: £35 psf 25% 2013 Acquired this eight-storey 91,400 sq ft office building in November for £59.3m after costs (£649 psf) at a net initia
Slide 26: 25
25
Slide 27: Fitzrovia
F I T Z R O V I A1 26 38 properties totalling 1.8m sq ft with a rental income of c.£41m pa. Capital value of c.£1.4bn accounting for 37% of the portfolio. Grafton Hotel 120-134 Tottenham Court Road 8 Fitzroy Street Qube 90 Whitfield Street 80 Charlotte Street2 Network Building 95-100 Tottenham Court
Slide 28: fea
ne fea =/5 nf ae .
Slide 29: Grafton Hotel, 120-134 Tottenham Court Road W1
grafton hotel , 1 2 0 - 1 3 4 tottenham court road w 1 28 fitzrovia 1.0m sq ft 3 3 0 - room hotel - core income 45% Core income Capital value band: £25-50m Hotel ERV: £32 psf 2007 This freehold property incorporates the 330-room Grafton Hotel (Radisson Blu Edwardian). 28,400 sq ft of ground and lowe
Slide 30: Slide 30
Slide 31: Qube, 90 Whitfield Street W1
q ube , 9 0 whitfield street w 1 30 fitzrovia 1.0m sq ft 1 0 9, 9 0 0 s q ft - core income 45% Core income Capital value band: £75-150m Office ERV: £60-62.50 psf 2007 This freehold mixed-use new-build property was completed in 2007. It comprises 96,000 sq ft of spacious offices positioned around a c
Slide 32: Slide 32
Slide 33: Network Building, 95-100 Tottenham Court Road W1
network building , 9 5 - 1 0 0 tottenham court road w 1 3 2 fitzrovia 6 4 , 1 0 0 s q ft - under appraisal 1.0m sq ft Under 12% Appraisal Capital value band: £25-50m Office ERV: £40-47.50 psf 2007 A freehold mixed-use building of 64,100 sq ft, fronting Tottenham Court Road. 2011 Acquired headlease f
Slide 34: Slide 34
Slide 35: 8 Fitzroy Street W1
8 fitzro y street w 1 34 fitzrovia 1.0m sq ft 1 4 7, 9 0 0 s q ft - core income 45% Core income Capital value band: £150m+ Office ERV: £51 psf 2007 Construction commenced for a two-phased new-build office (freehold) development - pre-let to Arup. Architects: Sheppard Robson. 2008 62,000 sq ft first
Slide 36: Pl ne
Pl ne LT UL Lb pertestee WWUCLUDULELLL EEE ECEELE LL EELELDECECEEL KELECEECLELEL | RECGLOECDEGE (iil
Slide 37: 80 Charlotte Street W1
8 0 charlotte street w 1 36 fitzrovia 3 8 0 , 0 0 0 s q ft - consented 1.0m sq ft 7% Consented Capital value band: £150m+ Office ERV: c.£65 psf 2007 Existing holdings total 234,000 sq ft, principally let to Saatchi & Saatchi (part of the Publicis Groupe). 1.4 acre island site in a core West End loca
Slide 38: Slide 38
Slide 39: 73 Charlotte Street W1
7 3 charlotte street w 1 38 fitzrovia 11% 1 5 , 5 0 0 s q ft - on - site 1.0m sq ft On-site Capital value band: £0-25m Office ERV: £45 psf 2007 13,000 sq ft freehold office building. 2012 Planning permission granted in November for 13,600 sq ft of residential (9 private, 2 affordable) and 1,900 sq f
Slide 40: Slide 40
Slide 41: Charlotte Building, 17 Gresse Street W1
charlotte building , 17 gresse street w 1 40 fitzrovia 1.0m sq ft 4 7, 2 0 0 s q ft - core income 45% Core income Capital value band: £50-75m Office ERV: £60-65 psf 1999 Acquired 31,200 sq ft building for £10.2m after costs (£327 psf). Outdated offices with large car park. Significant redevelopment
Slide 42: Slide 42
Slide 43: 1-2 Stephen Street W1
1 - 2 stephen street w 1 42 fitzrovia 1.0m sq ft 2 6 7, 4 0 0 s q ft - core income 45% Core income Capital value: £248m (June 2014) Office ERV: £45-75 psf 2010 Acquired this 251,000 sq ft freehold property for £146m before costs (£582 psf) in July - 216,000 sq ft offices, 24,000 sq ft retail and 11,
Slide 44: 43
43
Slide 45: Tottenham Court Walk W1 (part of 1-2 Stephen St)
tottenham court walk w 1 ( part of 1 - 2 stephen st ) 44 fitzrovia 11% 4 0 , 0 0 0 s q ft - on site 1.0m sq ft On-site Retail Zone A ERV: £270 psf 2010 Existing retail of 24,000 sq ft that produced £0.7m pa. Tottenham Court Road frontage of 109m. 2014 Commenced 40,000 sq ft retail extension in March
Slide 46: \ : | | |
\ : | | |
Slide 47: Holden House, 54-68 Oxford Street W1
holden house , 5 4 - 6 8 O x ford S treet W 1 46 fitzrovia 9 0 , 8 0 0 s q ft - under appraisal 1.0m sq ft Under 12% Appraisal Capital value band: £75-150m Office ERV: £42.50-50 psf 1996 Acquired freehold interest at this multi-let office and retail building for £20m before costs. 2003 Underwent a c
Slide 48: a aN =¥
a aN =¥ oe <- SEE = were eee en ES ane ee
Slide 49: 25-29 Berners Street W1
2 5 - 2 9 berners street w 1 48 fitzrovia 7 9, 5 0 0 S Q F T - under appraisal 1.0m sq ft Under 12% Appraisal Capital value band: £25-50m Office ERV: £45 psf 2012 Acquired the long leasehold interests in 25 & 29 Berners Street from the owner occupier, PRS for Music, for £35.0m before costs (£440 psf
Slide 50: yo ie |
1 (1 = | | yc 1 = = - — | — tt : = yo ie | is " Load) eas I
Slide 51: 1 Oxford Street W1
1 o x ford street w 1 50 soho 2 7 5 , 0 0 0 s q ft - consented 1.0m sq ft 7% Consented 1986 Acquired a 25% leasehold interest in 135-155 Charing Cross Road (62,000 sq ft). 1998 Acquired remaining 75% leasehold interest and freehold in 135-155 Charing Cross Road. 2006 Acquired 17 Oxford Street (3,300
Slide 52: Derwent London attendees
D erwent L ondon attendees 51 J ohn Burns * Chief Executive Officer Simon Silver * Property Director Damian W isniewski * Finance Director N igel George * Property Director Paul W illiams * Property Director David S ilverman* Property Director R ichard Baldwin * Head of Development S imon Taylor * H
Slide 53: Disclaimer
disclaimer This presentation has been prepared by Derwent London plc (the “Company”). No representation or warranty (express or implied) of any nature is given nor is any responsibility or liability of any kind accepted by the Company or any of its directors, officers, employees, advisers, represent
Slide 54: Derwent London
DERWENT LONDON
Derwent London — Investor Presentation (October 2014) on 6ix