928-1 30 CANNON STREET INVESTMENT_v6 by sdfgsg234


									30 Cannon Street
                LONDON EC4

30 Cannon Street
                            LONDON EC4

EXECUTIVE SUMMARY                   03


SURROUNDING AREA                    07

THE BUILDING                        13

FLOOR SCHEDULE                      18

TENURE & PLANNING                   21

TENANCIES & REVERSIONS              22

TENANTS’ COVENANTS                  24

MARKET COMMENTARY                   26

INVESTMENT PROPOSAL                 27

FURTHER INFORMATION                 28

                                 EXECUTIVE SUMMARY

“An attractive combination       THE OPPORTUNITY
 of well secured income
 at reversionary rents, in a     • Highly prominent landmark office building in the core of the City of London
 multi-let landmark building.”
                                 • Freehold investment
                                 • Multi-let property providing a combination of secure income and future
                                   asset management opportunities
                                 • Highly reversionary rents - current passing rent of only £2.7m compared
                                   with an estimated rental value of £3.35m
                                 • Low capital value
                                 • Attractive initial and reversionary yields

                                 LOCATION                                              TENURE
                                 30 Cannon Street is located in the heart of the       Freehold.
                                 City of London occupying a prominent corner site
                                 at the junction of Queen Victoria Street and Cannon   TENANCIES
                                 Street, in close proximity to St Paul’s Cathedral.    The building is multi-let to six tenants with
                                                                                       a number of the leases expiring in 2017/2018.
                                 Transport links are excellent with Mansion House      The current income totals £2,706,550 p.a.x.,
                                 underground station situated immediately opposite     equating to £36.19 per sq ft p.a.x. overall,
                                 the property and Bank underground and Cannon          compared with an estimated rental value
                                 Street main line stations within easy walking         of £50 per sq ft and prime City rents of more
                                 distance.                                             than £65 per sq ft.

                                 DESCRIPTION                                           PRICE
                                 A landmark and prominently located property           Offers are invited for the freehold interest,
                                 providing approximately 75,979 sq ft (7,060 sq m)     subject to contract and exclusive of VAT.
                                 of high quality office and ancillary accommodation    Price upon application.
                                 arranged over basement, lower ground, ground
                                 and five upper floors.

                                                  LOCATION & COMMUNICATIONS

“A prime location in the shadow                   LOCATION                                                                     COMMUNICATIONS
 of St Paul’s Cathedral, yet only                 30 Cannon Street is located in the heart of the                              30 Cannon Street benefits from excellent transport
 a few minutes walk from the                      City of London between St Paul’s Cathedral and                               links with the following stations within easy
 Bank of England.”                                the Bank of England.                                                         walking distance:

                                                  The building is prominently located at the junction                          • Mansion House (50 metres) –
                                                  of Queen Victoria Street and Cannon Street.                                    Circle and District Lines
                                                                                                                               • Bank (350 metres) – Central, Northern,
                                                  The area is favoured by a wide range of domestic
                                                                                                                                 Waterloo & City lines and Docklands Light Railway
                                                  and international occupiers including Goldman
                                                  Sachs, Sumitomo Mitsui Banking Corporation,                                  • Cannon Street (300 metres) –
                                                  Eversheds LLP, Fidelity and Royal Bank of Canada.                              Circle and District lines and main line services

                                                  The area is well served by local wine bars,
                                                  restaurants and other retailers.

 1. Aberdeen Asset Management                                                  ST PAUL’S

 2. Bank of India                                                                                               21
 3. Bank of Ireland
 4. Fidelity Investments                                                                   22                                                                                   BANK OF
 5. Goldman Sachs                                         ST. PAUL’S                                                 3
 6. Helaba Landesbank Hessen-Thuringen                    CATHEDRAL
 7. Intesa San Paolo                                                                                                                                   7                      BANK

 8. Jefferies International Ltd                                                                                           1                                11
 9. LandesBank Berlin AG                                                                                                                           18
10. Mizuho Corporate Bank                                                                             4
11. Morley Fund Management                            5                          16                                       24
12. Old Mutual plc
13. Rabobank                                                                     19        10        25   30                                 HOUSE
14. Royal Bank of Canada                                                                                                  2
15. Skandia
16. Skandinaviska Enskilda Banken AB
17. Sumitomo Mitsui Banking Corporation                              17               6                              14
PROFESSIONAL SERVICES                                                                                                                                           CANNON
18. Accenture                                                   12        15                                                                                    STREET

19. Bates Wells & Braithwaite
20. SJ Berwin LLP                                                                                               14
21. Eversheds LLP                                                                                                                           20
22. Kirkpatrick & Lockhart Nicholson Graham LLP                                                                13              17

23. Euroclear UK & Ireland Ltd
24. Mastercard
25. Miki Travel Ltd

                                                                                                                          SURROUNDING AREA


                                                                                    “Located within moments of the        30 Cannon Street is situated in an established        Walbrook Square, London EC4
                                 107 CHEAPSIDE                                       City’s prime retail thoroughfares    office location and is set to benefit from            A proposed landmark redevelopment by
                                                                                     of Cheapside and Bow Lane, shortly   a number of substantial new office developments       Metrovacesa. The scheme will comprise
                ST PAUL’S
                                                                                     to be substantially expanded by      close by, including:                                  970,000 sq ft (90,116 sq m) of office and retail
                                                                                     developments at One New Change                                                             accommodation and is due for completion in 2011.
                                                                          BANK OF    and Walbrook Square.”
                                                                                                                          One New Change, London EC2
                                                                          ENGLAND                                         An office and retail scheme by Land Securities        107 Cheapside, London EC2
                                                                                                                          directly opposite St Paul’s Cathedral. The Jean       A scheme by Menolly Developments comprising
                                                                                                                          Nouvel designed building will provide approximately   approximately 175,000 sq ft (16,258 sq m)
ST. PAUL’S                                                                                                                220,000 sq ft (20,439 sq m) of shops over three       of office and retail accommodation, due to be
CATHEDRAL                                                                                                                 floors, creating the City’s first major retail        completed in May 2008.
                                                                                                                          destination. The office accommodation will total
                                                                                                                          approximately 340,000 sq ft (31,587 sq m)             Bow Bells House, Cheapside, London EC2
                                                                                                                          and provide floor plates of circa 70,000 sq ft        An HOK designed development, completed by
                                                                                                                          (6,503 sq m). The scheme is due for completion        Mitsubishi Corporation and Mitsubishi Real Estate
                                                                                                                          by December 2010. 135,000 sq ft (12,542 sq m)         comprising approximately 200,000 sq ft
                                                                                                                          of offices is pre-let to US law firm K & L Gates.     (18,580 sq m) of office and retail accommodation
       BOW BELLS HOUSE                                                                                                                                                          substantially pre-let to the Bank of Ireland.

                            30    HOUSE

                                        WALBROOK SQUARE


                                     THE BUILDING

“An iconic building located in the   30 Cannon Street is an iconic office development      The property underwent major refurbishment in the
 City core providing high quality    designed by The Whinney Mackay-Lewis                  late 1990s and has been further upgraded within
 office accommodation.”              Partnership and built by Wates Construction Ltd.      the last three years. Full details can be provided
                                     The property was completed in 1978 and provides       upon request.
                                     high quality office accommodation arranged over
                                     basement, lower ground, ground and five upper         SPECIFICATION INCLUDES:
                                     floors. The property also provides five car parking
                                                                                           • Suspended ceilings with integrated lighting
                                     spaces, three at basement level and two at ground
                                     floor level.                                          • Variable air volume and four pipe fan coil
                                                                                             air conditioning
                                     The property provides entrances from both Cannon
                                                                                           • Fully accessible raised floors
                                     Street and Queen Victoria Street as well as a
                                     service entrance at the rear of the building on       • Male and female WCs on each floor
                                     Bread Street. The property also benefits from         • Three 12-person passenger lifts and
                                     an attractive double height reception which was         a 630 kg goods lift
                                     refurbished in 2006.


The property provides the following net internal                                                N
floor areas:

 FLOOR                            USE                SQ FT    SQ M
 Fifth                            Offices            5,786      538
 Fourth                           Offices           12,790    1,188
 Third                            Offices           12,381    1,150
 Second                           Offices           11,973    1,112
 First                            Offices           11,588    1,077        GROUND FLOOR
 Ground                           Offices            8,683      807        Offices             8,683 sq ft (807 sq m)
                                                                           Reception           1,668 sq ft (155 sq m)
 Ground                           Reception          1,668      155
 Lower Ground                     Offices            7,058      656
 Lower Ground                     Storage              795       74
 Basement                         Storage            3,257      303
 Total                                             75,979    7,060

In addition there are five car parking spaces.

A measured survey of the property was carried
out in 2004 by Plowman Craven Associates
in accordance with the Fifth Edition of the Code
of Measuring Practice published by the Royal
Institution of Chartered Surveyors.

                                                                           TYPICAL UPPER FLOOR (2ND)
                                                                           Offices            11,973 sq ft (1,112 sq m)

                                   TENURE & PLANNING

“A freehold building in the core   The property is registered at HM Land Registry
 of the City of London.”           with freehold title under title number NGL607093.

                                   30 Cannon Street is located just outside the Bow Lane Conservation
                                   Area and falls within St Paul’s Heights Strategic Viewing Corridor.

                                   The permitted use of the property is business commercial or
                                   professional offices within paragraph (a) of Class B1 (Business)
                                   of the Town and Country Planning (Use Classes) Order 1987
                                   and purposes ancillary to use.


INCOME ANALYSIS                                        The building is let to six tenants on effective full repairing and insuring terms
Approximately 47% of the income is secure for          with a number of the leases expiring in 2017/2018. The property is let in accordance
between 9.75 yrs and 10.75 yrs. Approximately 32%      with the tenancy schedule below.
of the income is secure for 6.75 yrs. Approximately
7% of the income is secure for 4.25 years.
                                                       TENANT                                         FLOOR                 USE      (sq ft)   LEASE START   LEASE EXPIRY   BREAK DATE     RENT p.a.x.   RENT per sq ft*   ERV per sq ft   RENT REVIEWS   COMMENTS
Approximately 14% of the income will expire
within 6 months.                                       First State Investment Services (UK) Ltd       Fifth                Office     5,786    28/09/2007    27/09/2017     29/09/2014     £274,835.00            £46.29          £50.00   28/09/2012     Rent commencement 29/03/2008. Break
                                                                                                                                                                                                                                                          option subject to not less than 6 months prior
                                                                                                                                                                                                                                                          written notice. Additional three months rent free
                                                                                                                                                                                                                                                          if break option not exercised. Two car parking
                                                                                                                                                                                                                                                          spaces included within the rent. Exclusive right
                                                                                                                                                                                                                                                          to use the roof terrace.
             6 months
                                                       Bonelli Erede Pappalardo LLP (Hengeler         Fourth               Office    12,790    30/10/2006    29/10/2017                    £450,625.00            £34.96          £50.00   30/04/2012     Rent commencement 30/07/2008. One car
                                                       Mueller Partnerschaft von Rechtsanwalten)                                                                                                                                           30/10/2016     parking space included within the rent.
   4.25 years
                                                       First State Investment Services (UK) Ltd       Third                Office    12,381    28/09/2007    27/09/2017     29/09/2014     £588,097.50            £47.22          £50.00   28/09/2012     Rent commencement 29/03/2008. Break
                             9.75 – 10.75 years                                                                                                                                                                                                           option subject to not less than 6 months prior
                                                                                                                                                                                                                                                          written notice. Additional three months rent free
                                                                                                                                                                                                                                                          if break option not exercised. One car parking
                                                                                                                                                                                                                                                          space included within the rent.
        6.75 years
                                                       Newsquest Financial Media Ltd (Newsquest       Second               Office    11,973    25/03/2004    02/09/2008                    £372,775.00            £30.84          £50.00                  Sections 24 to 28 of L&T 1954 Act excluded.
                                                       Media (Southern) Ltd)                                                                                                                                                                              One car parking space included within the rent.

                                                       International Accounting Standards Committee   First                Office    11,588    01/03/2001    28/09/2008                    £664,955.00            £44.66          £50.00                  Two separate leases. Part Ground (East) on
                                                       Foundation                                     Part Ground (East)   Office     2,915    13/12/2000                                                                         £45.00                  assignment from Norddeutsche Girozentrale.
                                                                                                      Part Lower Ground    Storage      385                                                                                       £10.00                  Sections 24 to 28 of L&T Act 1954 excluded
                                                                                                                                                                                                                                                          in both leases. Reversionary lease signed -
                                                                                                                                                                                                                                                          see below for details.**
The current passing rent is £2,706,550 per annum,                                                                                                                                                                                                                                                †
which equates to an average rent of £36.19 per sq ft   International Accounting Standards Committee   Part Ground (West)   Office     5,768    28/12/2006    28/09/2018                    £173,040.00            £30.00          £45.00   28/12/2011     Rent commencement 28/12/2008.
overall.                                               Foundation                                                                                                                                                                          28/12/2016

                                                       Irevolution Ltd (Cantono Plc)                  Part Lower Ground    Office     4,116    04/05/2007    03/05/2017     04/05/2012      £97,222.50            £22.50          £25.00   04/05/2012     Rent free during the final quarter of the first
Based upon a best office rent of £50 per sq ft we                                                                          Storage      205                                                                                       £10.00                  year of the term. Sections 24 to 28 of L&T Act
estimate the current ERV to be approximately £3.35m                                                                                                                                                                                                       1954 excluded. Break option subject to six
p.a.x, (£44.90 per sq ft) underlining the highly                                                                                                                                                                                                          months prior written notice.
reversionary nature of the current income.
                                                       The Bank of New York                           Part Lower Ground    Office    2,942     19/03/2007    18/03/2012                     £85,000.00            £13.27          £25.00
                                                                                                                           Storage     205                                                                                        £10.00
                                                                                                      Basement             Storage   3,257                                                                                        £10.00

                                                       SUB TOTAL                                                                     74,311                                              £2,706,550.00            £36.19

                                                       **International Accounting Standards           First                Office    11,588    29/09/2008    28/09/2018                    £605,100.00            £40.64          £50.00   28/12/2013     Rent commencement date 14/08/2009.
                                                         Committee Foundation (reversionary lease)    Part Ground (East)   Office     2,915                                                                                       £45.00                  Sections 24 to 28 of L&T Act 1954 excluded.
                                                                                                      Part Lower Ground    Storage      385                                                                                       £10.00

                                                                                                                                                                                                                                                          * Rent per sq ft assumes £3,500 per
                                                                                                                                                                                                                                                              car parking space
                                                                                                                                                                                                                                                              The vendor is proposing to top-up the
                                                                                                                                                                                                                                                              rent during the initial rent free period


FIRST STATE INVESTMENTS                               revenue of over £13m for the year ending 31st          NEWSQUEST FINANCIAL MEDIA LIMITED                      30th September 2007 reported revenue of $7.5bn.
(32% OF TOTAL INCOME)                                 December 2006 and maintained cash and financial        (14% OF TOTAL INCOME)                                  The bank is the leading provider of financial
First State Investments (registered number            assets (Sterling denominated AAA bonds) of             Formed in 1996, Newsquest (registered number           services for institutions, corporations and high net
3904320) was formed in 1988 and is the                £12.5m.                                                02231405) is the UK’s second largest regional          worth individuals with $20.8 trillion in assets under
international operation of Colonial First State                                                              newspaper company with 300 titles and a weekly         management. The Bank of New York Mellon
Global Asset Management, the asset management         The Part Ground (East) Floor lease is on               readership of 13 million. Newsquest employs            Corporation also ranks amongst the top 10 global
business of Commonwealth Bank of Australia.           assignment from Norddeutsche Landesbank                approximately 8,500 people across the UK and is        asset managers with $1.1 trillion in assets under
Colonial First State Global Asset Management          Girozentrale. Norddeutsche Landesbank Girozentrale     also a leading publisher of business-to-business       management as at 30th June 2007. In December
is Australia’s largest fund manager with              was founded in 1970 and is a leading German            magazines and specialist consumer titles.              2007, the company announced that it had
approximately £57.6bn of assets under                 bank with offices in Hannover, New York, London,                                                              completed its acquisition of ABN AMRO Mellon
management (as at 31st May 2007). Colonial First      Singapore, Stockholm, Vilnius and Helsinki. The        Newsquest is a subsidiary of Gannett Co. Inc.,         Global Securities Services B.V.
State Global Asset Management operates in the         bank has total assets in excess of US $200bn and       a leading international news and information
UK as First State Investments and provides a range    is ranked 10th in Germany, 35th in Europe and          company that publishes 90 daily newspapers             Further information can be found at
of specialist investment management services          55th globally.                                         in the USA, including USA TODAY, the nation’s          www.bnymellon.com
focusing on Asia Pacific and global emerging                                                                 largest selling daily newspaper.
equities markets as well as property securities.      Further information can be found at www.iasb.org                                                              IREVOLUTION LIMITED (3% OF TOTAL INCOME)
                                                      and www.nordlb.com                                     Newsquest reported sales turnover of over £10m         Irevolution Ltd (registered number 02693027) was
First State Investments reported sales turnover of                                                           for the year ending 31st December 2006 and has         founded in 1992 and forms part of Cantono Plc.
over £36m for the year ended 30th June 2007 and       BONELLI EREDE PAPPALARDO LLP                           a D&B rating of 2A1 reflecting a minimal risk of       Irevolution Ltd is one of the leading providers of
has a D&B rating of 2A1 indicating a minimal risk     (17% OF TOTAL INCOME)                                  business failure.                                      managed IT and hosting solutions for small to
of business failure.                                  Formed in 1999 from the merger of three                                                                       medium sized organisations in the UK. The
                                                      independent law firms, Bonelli Erede Pappalardo        The lease is guaranteed by Newsquest Media             company offers outsourced services and products
Further information can be found at                   LLP (registered number OC302016) is one of the         (Southern) Limited (registered number 00001350).       to a broad range of markets.
www.firststate.co.uk                                  largest law firms in Italy with over 300 lawyers
                                                      and offices in Milan, Genoa, Rome, Brussels and        Newsquest Media (Southern) Limited reported            The lease is guaranteed by Cantono Plc
INTERNATIONAL ACCOUNTING                              London. Bonelli Erede Pappalardo LLP offers            sales turnover of over £129m for the year ending       (registration number 05354873). Cantono Plc,
STANDARDS COMMITTEE FOUNDATION                        comprehensive legal advice in all sectors of           31st December 2006 and has a D&B rating of 5A1         formerly Hamsard Group Plc, is the holding
(31% OF TOTAL INCOME)                                 business law and is regulated by the Solicitor         reflecting a tangible net worth of £142.7m and         company for a group of software solutions and
The International Accounting Standards Committee      Regulation Authority.                                  a minimal risk of business failure.                    services companies that provide specialist
Foundation (IASCF) (registered number FC023235)                                                                                                                     applications in network security, business
was founded on 1st April 2001. IASCF is the           In 2006 Bonnelli Erede Pappalardo LLP reported a       Further information can be found at                    intelligence and managed services. The company’s
successor of the International Accounting Standards   record turnover of €101m, becoming the first Italian   www.newsquest.co.uk                                    products are provided through licence grants,
Committee (IASC), which was founded in June 1973      law firm to break through the €100m mark.                                                                     allowing the purchaser the right to use software,
as a result of an agreement between accountancy                                                              THE BANK OF NEW YORK                                   primarily on a rental basis.
bodies in Australia, Canada, France, Germany,         The lease is guaranteed by Hengeler Mueller            (3% OF TOTAL INCOME)
Japan, Mexico, Netherlands, UK, Ireland and US.       Partnerschaft von Rechtsanwalten, a German             Founded in 1784, the Bank of New York is the           Further information can be found at
                                                      professional partnership registered in the             oldest bank in the US. The bank merged with the        www.cantono.com
IASCF is the parent entity that oversees the          partnership register of the local court of             Mellon Financial Corporation in July 2007 to form
International Accounting Standards Board (IASB).      Berlin-Charlottenburg under registration PR291.        The Bank of New York Mellon Corporation. The
IASB is an independent, privately funded accounting   The company has offices in Berlin, Düsseldorf,         bank employs approximately 40,600 people in 34
standard setter committed to developing a single      Frankfurt, Munich, Brussels and London and             countries and 54 cities and provides an array of
set of high quality, enforceable global accounting    employs 233 lawyers and 81 partners specialising       services that enable institutions and individuals to
standards known as the International Financial        in legal advice in complex business transactions.      move and manage their financial assets in more
Reporting Standards (IFRS). Today, more than 100      The company’s position as a leading German law         than 100 markets worldwide. The Bank of New
countries require the use of IFRS.                    firm has been recognised through several awards        York Mellon Corporation has a market capitalisation
                                                      including Who’s Who Legal “German Law Firm of          of over $50bn and for the nine months ended
The IASCF is a charitable organisation which sells    the Year 2005, 2006 and 2007”.
the standards and other IFRS products to private
companies, accounting firms, international            Further information can be found at
organisations and central banks. IASCF reported       www.beplex.co.uk and www.hengeler.com

MARKET COMMENTARY                                                                                                                                                                                                                                                                 INVESTMENT PROPOSAL

CURRENT MARKET OVERVIEW                                                                                                                AVAILABILITY IN THE CITY                                                                                                                   VALUE ADDED TAX (VAT)                                  PROPOSAL
The City of London office market has performed strongly over the                                                                                                                                                                                                                  The property has been elected for VAT, and             We are instructed to seek offers for the Jersey
                                                                                                            1,500,000                                                            Availability in the City                                               18%
past 12 months, driven by a sustained period of strong rental                                                                                                                                                                                                                     therefore VAT is payable on the rents and the          Property Unit Trust, subject to contract and
growth. Despite the recent uncertainties in the credit markets,                                                                                                                                                                                         16%                       purchase price. It is anticipated that the sale        exclusive of VAT.
investor demand remains strong for City offices and this is          Available floorspace (square metres)   1,250,000
                                                                                                                                                                                                                                                                                  will be treated as a Transfer Of Going Concern
expected to continue into 2008. In addition, London’s increasing                                                                                                                                                                                                                  (TOGC).
                                                                                                            1,000,000                                                                                                                                   12%
importance as a global financial capital continues to attract both

                                                                                                                                                                                                                                                              Availability Rate
international and domestic occupiers and investors.                                                                                                                                                                                                     10%
                                                                                                                                                                                                                                                        8%                        OPPORTUNITY
TAKE UP                                                                                                                                                                                                                                                                           The City of London continues to grow in stature
                                                                                                                    500,000                                                                                                                             6%
Strong take-up continues                                                                                                                                                                                                                                                          as one of the world’s leading financial centres.
2006 and 2007 both saw robust take up in the City of 6.5m sq ft                                                                                                                                                                                         4%
                                                                                                                                                                                                                                                                                  30 Cannon Street offers a rare opportunity to invest
(604,000 sq m) and 6.1m sq ft (566,700 sq m) respectively,                                                                                                                                                                                              2%                        in a landmark office building located in the heart
demonstrating the strength of the occupational market. A number                                                                    0                                                                                                                    0%
                                                                                                                                                                                                                                                                                  of the City of London. The property is multi-let to
of City redevelopments have already been pre-let and strong                                                                            Q1 98       Q1 99       Q1 00   Q1 01       Q1 02      Q1 03         Q1 04     Q1 05      Q1 06      Q1 07                                 six tenants with a large proportion of the income
take-up levels look set to continue in the foreseeable future.                                                                                 Available floorspace      Availability rate
                                                                                                                                                                                                                                                                                  secured until 2017/2018. The average passing
There are currently a number of significant active requirements                                                                                                                                                                                                                   rent is considered to be highly reversionary
from occupiers within a range of sectors including the Financial                                                                       PRIME CITY RENTS                                                                                                                           equating to only £36.19 per sq ft and the building
and Professional Services sectors.                                                                                                                                                     Prime City Rents                                                                           is well positioned to benefit from further rental
                                                                                                                                                                                                                                                                                  growth in the City over the coming months.
SUPPLY                                                                                                                            60
Limited supply of quality office accommodation
During 2007, the City vacancy rate decreased to 4.1% overall                                                                      50

and 2.3% for Grade A space. The vacancy rate is at the lowest
                                                                                                            Prime Rents (£ psf)

level since 2001 and the second lowest on record since 1993.
The fall in the vacancy rate has been driven by a surge in                                                                        30

occupier demand over the past two years combined with a
limited supply pipeline. With strong occupational demand
showing no sign of letting up, there remains a tight supply                                                                       10
of good quality space in the City.
                                                                                                                                       Q1 98       Q1 99       Q1 00   Q1 01         Q1 02      Q1 03         Q1 04      Q1 05      Q1 06       Q1 07
Demand in the occupational market remains strong
Occupational demand has been strong for the last 12 months
with current demand exceeding 10m sq ft. The outlook for the                                                                           CITY TAKE-UP 2007 BY SECTOR
London economy remains healthy and London’s position as an
increasingly important financial capital continues to attract
international occupiers. Further strong demand will maintain
upward pressure on rents.

Positive prospects for further rental growth
and sustainable rents                                                                                                                                                                                                               30.5% – Banking and Finance
The City office market has seen strong rental growth over the
past 24 months, driven by improving occupier demand and a lack                                                                                                                                                                      42.5% – Professional Services
of supply. Prime rents in the City are now at £65.00 per sq ft                                                                                                                                                                      6.5% – Public Admin & Institutional
although values in excess of £70 per sq ft have been achieved in
tower buildings. With demand at its highest level since 2000 and                                                                                                                                                                    14.5% – Service Industries
the vacancy rate standing at only 4.1%, further increases appear
                                                                                                                                                                                                                                    4% – Other
likely with many forecasters anticipating healthy rental growth
throughout 2008 and sustained rents in the medium term.                                                                                                                                                                             2% – Manufacturing


For further information or to arrange a viewing, please contact:

Stephen Bennett                                                            Matthew Condren
T 020 7911 2864                                                            T 020 7911 2853
F 020 7911 2846                                                            F 020 7911 2846
stephen.bennett@gvagrimley.co.uk                                           matthew.condren@gvagrimley.co.uk

An electronic data room has been established for
30 Cannon Street.

For website access and password, please contact
GVA Grimley Ltd.

These particulars are set out as a general outline only, for the guidance of intending
purchasers or lessees and do not constitute, nor constitute part of, an offer or contract;
all descriptions, dimensions, references to condition and necessary permission for use
in occupation and other details are given without responsibility, and any intending
purchasers or tenants 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. February 2008. Designed by Wordsearch.
30 Cannon Street
        LONDON EC4

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