London is one of the leading financial centres in the world and the City of London is its historic epicentre.
Traditionally the home of the financial and insurance industries, the City of London has recently undergone a marked transformation attracting an increasingly diverse pool of occupiers from the technology, media and telecommunications (TMT) industries, in particular the FinTech sector.
These occupiers have been attracted by the exceptional transport connections, high quality of the built environment, continuously improving retail and leisure provision and the relative occupational value proposition.
45 Cannon Street is a new landmark headquarters office building. Completed in 2017, the building provides exceptional, state-of-the-art accommodation.
A best-in-class team lead by Morgan Capital delivered the scheme based on the principles of design, quality and sustainability, ensuring the asset is pioneering for the market and future-proofed against occupiers' requirements. The building comprises 92,362 sq ft (8,580.7 sq m) arranged over basement, ground and seven upper floors, including 81,363 sq ft (7,558.9 sq m) of exceptional office accommodation and 7,000 sq ft (650.4 sq m) of complementary retail at ground and basement floor level.
Designed to a BREEAM Excellent standard, the development consists of a brand-new structure on a virtual island site with over 50 metres of frontage to Cannon Street.
Virtually column-free floor plates ranging from 3,509 sq ft (326 sq m) to 14,469 sq ft (1,344.2 sq m), providing excellent levels of occupational flexibility as well as exceptional levels of natural light through floor-to-ceiling glazing.
Accessed via the main entrance off Cannon Street, the office accommodation benefits from an impressive arrival experience through a generous 2,785 sq ft (258.7 sq m) reception.
The 3rd, 5th, 6th and 7th floors benefit from stunning roof terraces totalling 6,624 sq ft (615.4 sq m), with unobstructed views of St Paul's Cathedral. Terraces of this size with unrivalled views are extremely rare and highly sought after by occupiers in Central London.
Further information on the building's development team can be found in the Marketing Brochure.
45 Cannon Street comprises a circa 0.5 acre site and is held freehold under title number NGL33319. An indicative red line outline of the freehold ownership can be seen on the plan in the Marketing Brochure. The section highlighted blue indicates dedicated public highway.
45 Cannon Street is securely let to three office tenants and four retail tenants on effective full repairing and insuring terms, offering an exceptional income duration of 12.0 years to expiries (11.3 years to breaks).
Approximately 90% of income is secured against three office tenants, with the remaining 10% attributed to the four retail tenants occupying the ground and part basement floors.
The total passing rent on the building is £6,310,150 per annum (inclusive of rent free top-ups), being split £5,688,150 per annum on the office accommodation and £622,000 per annum on the retail accommodation. This reflects an average rent of approximately £66.50 per sq ft on the offices and £89.00 per sq ft on the retail.
83% of the income from the offices benefits from full parent company guarantees, and all four retail units benefit from rental deposits, providing an additional layer of income security to an already strong tenant roster.
The building provides approximately £71 million of contracted in place rental income to earliest determinations.
44.8% of contracted rent
Global Relay is a privately-held company that provides compliance message archiving, e-discovery, surveillance and data management in the cloud for highly regulated financial services companies. The firm was founded in 1999 and now has over 450 employees and in excess of $100 million revenue, working from offices in Vancouver, Chicago, New York and London.
29.9% of contracted rent
OpenText is a global leader in Enterprise Information Management (EIM) and offers worldwide services from their global headquarters in Canada. OpenText's EIM disciplines include Content Services, Business Process Management, Customer Experience Management, Discovery, Business Network, and Analytics.
4.5% of contracted rent
Shake Shack began as a hot dog cart in Madison Square Park and progressed to a permanent kiosk in 2004. The business now has over 180 branches worldwide and 9 in the UK including Covent Garden, Stratford, Tottenham Court Road, Canary Wharf, Victoria and Leicester Square.
2.0% of contracted rent
Blacksheep Coffee is a privately-owned food & beverage company founded in 2013 in Camden Town. The organisation now has 23 locations throughout London and Manchester.
1.7% of contracted rent
Pali Kitchen is a new format Indian restaurant aiming to become the leading "fast-casual" lunch provider in the UK. The business is run by an experienced team with food retailing, franchising and innovation experience.
1.7% of contracted rent
Freshii is a health-casual restaurant brand and one of the fastest growing global health and wellness food and beverage brands in the world. Since it was founded in 2005, Freshii has opened hundreds of restaurants in cities and countries around the world.
Further information on the building's exceptional tenant roster can be found in the Marketing Brochure.
We are instructed to seek offers in excess of £145,800,000 (One Hundred and Forty-Five Million, Eight Hundred Thousand Pounds), subject to contract and exclusive of VAT, for the Dutch B.V. which owns the freehold interest in 45 Cannon Street. This reflects a net initial yield of 4.25% and a capital value of £1,579 per sq ft, assuming purchaser's costs of 1.80%.