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					Kleinwort benson
  house
    St Helier, Jersey




FREEHOLD OFFICE HEADQUARTERS WITH LONG TERM SECURE INCOME AND FIXED
                          ANNUAL UPLIFTS
Investment summary

Office investment with long term secure income and fixed annual uplifts

    Freehold office headquarters building located in St Helier, Jersey, one of the world’s leading offshore
    Banking and Finance Centres, and the largest of the Channel Islands.
    The property provides a total Net Internal Area of approximately 35,647 sq ft (3,312 sq m).
    Let in its entirety to Kleinwort Benson (Jersey) Services Limited, with a surety from Kleinwort Benson
    Channel Islands Holdings Ltd on a Full Repairing and Insuring lease expiring 13 July 2036, subject to a
    tenant’s break option on 13 July 2021. The unexpired term certain is therefore approximately 11 years.
    The current total passing rent is £892,315 per annum.
    Fixed annual rental uplifts of 2.5% per annum.
    The tenant is undertaking significant works within the building amounting to circa £1,000,000.
    We are instructed to seek offers in excess of £11,650,000 (Eleven Million Six Hundred and Fifty
    Thousand Pounds), subject to contract and exclusive of VAT.
    A purchase at this level reflects a Net Initial Yield of 7.33% assuming standard Channel Islands’
    purchaser’s costs of 4.5%.
    The property is currently held within an SPV.




The table below hightlights the net running yield profile at a number of selected dates. Please note
of course that uplifts are received annually.


                        2010                                                   7.33%
                         2011                                                  7.51%
                        2015                                                   8.29%
                        2020                                                   9.38%
location

Jersey is the largest of the Channel Islands and is located in the English Channel some
145 kilometres (90 miles) south of England and 22 kilometres (14 miles) west of France.
The Island has a land area of approximately 45 square miles and is divided into twelve
parishes. The capital town is St Helier.
                                                      Jersey is one of the world’s leading
                                                      offshore Banking and Finance Centres
                                                      with a constitutional relationship with the
                                                      UK dating back over 900 years. The
                                                      arrangement provides a full fiscal
                                                      independence and allows the Island to set
                                                      its own tax rates and enact its own laws.


                                                      Jersey’s legal framework, tax system and
                                                      infrastructure provides 47 international
                                                      banks employing more than 3,000
                                                      professionals; access to all major
                                                      accountancy firms and seven first tier
                                                      legal practices.


                                                      The Island is serviced by regular sea and
                                                      air links with both the UK and the
                                                      continent. Regular air services are
Map of Jersey location of St Helier
                                                      provided to London Gatwick, London City
                                                      Airport, Southampton, Manchester and
                                                      Birmingham, as well as the Isle of Man,
                                                      Northern Ireland and Eire. Sea travel is
                                                      provided by regular ‘fast cat’ passenger
                                                      ferries to both the UK and France.


                                                      The property is located within St Helier,
                                                      the provincial capital town of the Island of
                                                      Jersey and the main area of commercial
                                                      activity.




Map of St Helier location of Kleinwort Benson House
Property overview

Situation

Kleinwort Benson House occupies a prominent corner location at the junction of Peter Street to the north and Hilary
Street to the east, and lies adjacent to West Centre, which forms part of the town centre’s retailing provision. The
main entrance is accessed via Peter Street and West Centre.

Liberation Bus Station, which offers a comprehensive network of routes around the Island is located approximately
10 minutes away on the Esplanade.

The location is popular with a number of financial institutions including, Merrill Lynch and HSBC.



Description

The property is a late 1970’s early 1980’s office development arranged over ground and three upper floors. The combined
properties form a U shape and provide a Net Internal Area of approximately 35,647 sq ft (3,312 sq m).


The unit has been constructed in accordance with the following specification:

  Suspended ceiling with 600 mm grid;
  Recessed lighting;
  Perimeter trunking;
  Air conditioning;
  2 passenger lifts;
  Kitchenette facilities;
  Separate male and female WCs’;
  Tenant’s refurbishment works incorporate the replacement of the roof covering, and a phased full
 refurbishment of the office floors, including new air-conditioning units and chillers.




Reception                                                      Typical office floor
Property overview

Accommodation

The property provides a total Net Internal Area of approximately 35,647 sq ft (3,312 sq m).


Ground Floor                                      8,082 sq ft                           751 sq m
First Floor                                       9,207 sq ft                           855 sq m
Second Floor                                      9,352 sq ft                          869 sq m
Third Floor                                       8,804 sq ft                          818 sq m
Fourth Floor (Storage)                             202 sq ft                            19 sq m
TOTAL                                             35,647 sq ft                         3,312 sq m


Tenure

The property is held Freehold.

Tenancy

The building is let in its entirety to Kleinwort Benson (Jersey) Services Limited until 13 July 2036, with a
tenant break option on 13 July 2021 offering a Unexpired Term Certain of approximately 11 years. The lease
is drawn on full repairing and insuring terms, and is subject to fixed annual rental uplifts of 2.5% per
annum.

The current passing rent is £870,552 per annum.




                Typical floorplan
Covenant
  information
Kleinwort Benson is one of the most historic names in banking and investment
management, with roots dating back to the 1850’s. They are a renowned and respected
private bank and wealth manager with managed assets of over £21 billion, operating
from a network of offices throughout the UK and the Channel Islands. The tenant is
Kleinwort Benson (Jersey) Services Limited.

In July 2010, RHJ International acquired Kleinwort Benson Channel Islands Holdings Limited, the immediate
parent company of Kleinwort Benson (Jersey) Services Limited, from Commerzbank AG for circa £225
million. RHJ International is a holding company based in Belgium with a number of investments in both
public and private companies.

RHJ International has a Dun & Bradstreet rating of 5A1, reflecting ‘Minimum Risk of Business Failure’ and a
Tangible Net Worth of €961,443,000.

Please see below the last two years of accounts for the surety Kleinwort Benson Channel Islands Holdings
Ltd;


                                   To the year end 31 December 2009       To the year end 31 December 2008

  Retained Profit / (Loss)         £4,663,892                             £11,209,054
  Net Tangible Assets (Liab.)      £216,559,471                           £216,828,792

Source: Directors’ Report and Audited Financial Statements 31st December 2009.


VAT

We understand that the property is registered for VAT and will be chargeable on the sale price unless the
transaction can be treated as a Transfer of a Going Concern (TOGC).
The proposal

We are instructed to seek offers in excess of £11,650,000 (Eleven Million Six Hundred and Fifty Thousand
Pounds) exclusive of VAT.

A purchase at this level reflects a net initial yield of 7.33% assuming standard Channel Island purchaser’s
costs of 4.5%.

The table below hightlights the net running yield profile at a number of selected dates. Please note
of course that uplifts are received annually.


                             2010                                             7.33%
                             2011                                             7.51%
                             2015                                             8.29%
                             2020                                             9.38%




        External elevation
contact

For further information and to arrange inspections, please contact:



Knight Frank LLP
55 Baker Street
London
W1U 8AN


Andrew Sim
Tel: +44 (0) 20 7861 1193
Mob: +44 (0) 776 727 2730
andrew.sim@knightfrank.com


Mike Bowden
Tel: +44 (0) 20 7861 1546
Mob: +44 (0) 777 194 5872
mike.bowden@knightfrank.com



Nick Cripps
Tel: +44 (0) 20 7861 1532
Mob: +44 (0) 777 194 872
nick.cripps@knightfrank.com




                                                                                                                                                SUBJECT TO CONTRACT
Important notice

Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing ("information") as being factually
accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, and accordingly any information given is entirely
without responsibility on the part of the agents, seller(s) or lessor(s). Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and
distances given are approximate only. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been
obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. VAT: The VAT position relating to the property may change
without notice.

Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members' names.
August 2010

				
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