same lette Prime mixed use, freehold investment located in one of central London s most popular shopping locations

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Barbra Ashlynn Fleming
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1 K E N S I N G T O N H I G H S T R E E T, L O N D O N W 8 7 R G

I N V E S T M E N T S U M M A R Y same lette Prime mixed use, freehold investment located in one of central London s most popular shopping locations Attractive period building comprising 21,402 sq ft

2 I N V E S T M E N T S U M M A R Y same lette Prime mixed use, freehold investment located in one of central London s most popular shopping locations Attractive period building comprising 21,402 sq ft of quality retail and office accommodation with residential above 74% of the income is secured from 5A1 covenants, Metro Bank Plc and Argos Ltd Total income 1,254,000 per annum, reflecting Zone A for the retail and 44 per sq ft for the office income Adjoining retail units achieving headline 237 Zone A, which supports strong rental growth off the passing rents Offers in excess of 27,640,000 subject to contract and exclusive of VAT Net initial yield of 4.25%, assuming purchaser s costs of 6.76% and a capital value rate of 1,291 per sq ft overall 2

L O C AT I O N The property is located within the prime central London area of Kensington in the Royal Borough of Kensington and Chelsea.

national retailers and restaurant chains such as Marks & Spencer, H&M, Whole Foods and The Ivy Brasserie.

area a very popular tourist destination. Local Attractions 1. 1 Natural History Museum 2. 2 V&A Museum 3. 3 The Royal Albert Hall 4. 4 Brompton Oratory 5.

HIGH STREET KENSINGTON KENSINGTON HIGH ST QUEENSWAY INVERNESS TERRACE QUEENWAY 5 WESTBOURNE GROVE PADDINGTON BAYSWATER RD CROMWELL ROAD KENSINGTON GARDENS

HYDE PARK 4 BROMPTON ROAD BAKER STREET SLOANE STREET BAKER ST MARBLE ARCH PARK LANE KNIGHTSBRIDGE 7 MADAME TUSSAUDS SELFRIDGES HYDE PARK CORNER EATON

3 L O C AT I O N The property is located within the prime central London area of Kensington in the Royal Borough of Kensington and Chelsea. The High Street is a well-established retail and leisure destination which boasts a number of local boutiques and cafes as well as a wide variety of national retailers and restaurant chains such as Marks & Spencer, H&M, Whole Foods and The Ivy Brasserie. It is also located near to Hyde Park, Kensington Palace, The Royal Albert Hall, The Natural History Museum and the Victoria & Albert Museum making the area a very popular tourist destination. Local Attractions 1. 1 Natural History Museum 2. 2 V&A Museum 3. 3 The Royal Albert Hall 4. 4 Brompton Oratory 5. 5 Kensington Palace 6. 6 The Design Museum 7. 7 Harrods 8. 8 Science Museum W ESTWAY BAYSWATER NOTTING HILL GATE T H E P R O P E R T Y 6 ARGYLL RD. HIGH STREET KENSINGTON KENSINGTON HIGH ST QUEENSWAY INVERNESS TERRACE QUEENWAY 5 WESTBOURNE GROVE PADDINGTON BAYSWATER RD CROMWELL ROAD KENSINGTON GARDENS GLOUCESTER ROAD E DG W A R E R D E DG W A R E R D PADDINGTON LANCASTER GATE W EST WAY KENSINGTON GORE SOUTH KENSINGTON MARYLEBONE RD EDGWARE ROAD HYDE PARK 4 BROMPTON ROAD BAKER STREET SLOANE STREET BAKER ST MARBLE ARCH PARK LANE KNIGHTSBRIDGE 7 MADAME TUSSAUDS SELFRIDGES HYDE PARK CORNER EATON SQUARE SLOANE SQUARE BOND STREET REGENT'S PARK PORTLAN D PL PICCADILLY GREEN PARK GREEN PARK CONSTITUTION HILL REGENT MORTIMER ST ST BIRDCAGE WALK VICTORIA OXFORD STREET VICTORIA PICCADILLY CIRCUS BUCKINGHAM PALACE THE MA VICTORIA STREET 3

L O C AT I O N c o n t d High Street Kensington Underground Station is served by the Circle and District lines, directly linking Kensington to central London s West End and City, as well as the

Notting Hill Gate (Central, Circle & District lines), Holland Park (Central line), Kensington Olympia (Overground) and Earl s Court (Piccadilly & District lines) stations are also nearby.

Knightsbridge and Mayfair. Kensington and Chelsea is considered to be London s most exclusive wealthy borough in which to reside.

The area has long since been established as a hub for national and international wealth, undoubtedly encouraged by a combination of prestigious traditional housing stock, very central location and a

4 L O C AT I O N c o n t d High Street Kensington Underground Station is served by the Circle and District lines, directly linking Kensington to central London s West End and City, as well as the affluent areas of Chiswick in the west and Fulham, Putney and Wimbledon in south west London. Notting Hill Gate (Central, Circle & District lines), Holland Park (Central line), Kensington Olympia (Overground) and Earl s Court (Piccadilly & District lines) stations are also nearby. The High Street is also a key thoroughfare, providing access to the A4, M4 and M25 motorways and is accessible by bus, with ten bus routes linking the High Street with Notting Hill, Hammersmith, Knightsbridge and Mayfair. Kensington and Chelsea is considered to be London s most exclusive wealthy borough in which to reside. It is the home of Kensington Palace, one of the Royal residences, as well as some of the highest earning households in the UK. The area has long since been established as a hub for national and international wealth, undoubtedly encouraged by a combination of prestigious traditional housing stock, very central location and a wide variety of retail, leisure and cultural amenities. The Design Museum Located approximately 300m to the north west of the property is the site of the new Design Museum, which opened in November The museum is a showcase for leading contemporary design and architecture, attracting an estimated 500,000+ visitors per year. It extends across 100,000 sq ft, providing approximately 4,000 sq ft of learning space and also provides a restaurant, shops, library, events space and a 202 seat auditorium. It is expected that the arrival of the museum will increase footfall and promote the area as a creative hub in London. 4

5 MIA NOMA T H E P R O P E R T Y VACANT VACANT TO LET OREE CAFE ELEVATIONE MILANO MESSORY 5

T H E P R O P E R T Y S I T U AT I O N The property is situated in a prominent corner position on the northern side of Kensington High Street with Holland Park being just a short walk away.

6 T H E P R O P E R T Y S I T U AT I O N The property is situated in a prominent corner position on the northern side of Kensington High Street with Holland Park being just a short walk away. Argyll Road runs adjacent to the property leading towards a desirable residential area. Phillimore Walk runs behind the property providing rear servicing for the Argos retail unit and comprises some residential mews properties. Kensington High Street Underground Station and fashionable Notting Hill are both located within walking distance from the property and Mayfair is approximately 2 miles to the east. D E S C R I P T I O N The property comprises a substantial period block of retail, office and residential space arranged over lower ground, ground and four upper floors. 6

7 T H E P R O P E R T Y KENSINGTON PALACE KENSINGTON GARDENS OXFORD STREET HYDE PARK ROYAL ALBERT HALL BATTERSEA POWER STATION THE CITY HARRODS RIVER THAMES THE DESIGN MUSEUM KENSINGTON HIGH STREET HIGH STREET KENSINGTON STATION KENSINGTON ROOF GARDEN 7

The tenant has fitted out the unit to a high-quality specification in accordance with the Metro Bank corporate design.

8 R E TA I L 160 Kensington High Street. The Metro Bank unit has a net frontage of 10.68m (35.03 feet) and a return frontage of 18.03m (59.14 feet). It has a rectangular configuration at ground floor level. The unit benefits from a prominent corner pitch and return frontage along Argyll Road. The tenant has fitted out the unit to a high-quality specification in accordance with the Metro Bank corporate design. The majority of the unit is used for customer sales with the rear being used as a staff area, WCs and storage vault Kensington High Street. The Argos unit has a net frontage of 10.89m (35.72 feet), a clear wide sales area and ancillary accommodation at ground floor level. The ancillary area to the rear is used for loading of stock from Phillimore Walk. The property has a sizeable basement which is accessed via a staircase to the rear of the unit and benefits from a goods lift. The basement is rectangular in shape and has a good floor to ceiling height of over 3m. 8

9 O F F I C E S The first floor office accommodation comprises self-contained grade A, air conditioned offices which were refurbished in The refurbishment included: Ground Floor Phillimore Walk First Floor Phillimore Walk new double glazed windows RISER air conditioning raised floors ENTRANCE TO FLATS suspended ceilings and new lighting new passenger lift new WCs OFFICE ENTRANCE The office space is accessed via a modern selfcontained entrance along Argyll Road. The first floor office space has access via stairs and a new passenger lift. The tenant has completed a high quality fit out with open plan office space, conference rooms, kitchen and staff break-out area. The demise includes a bicycle storage room at ground floor accessed from Phillimore Walk. Argyll Road Argyll Road R E S I D E N T I A L The second to fourth floors comprise 16 residential units which are accessed from a separate entrance at ground floor on Argyll Road with stairs and lift from the first floor upwards and some of the flats include outside balcony areas. The flats are sold off under a long overriding lease expiring , below which the individual flat owners have long leasehold interests. T E N U R E Kensington High Street KEY Retail - Argos Retail - Metro Bank Office - Mind Gym Core Kensington High Street Freehold. 9

A C C O M M O D AT I O N A N D T E N A N C Y S C H E D U L E Address Tenant Floor / Use Areas Lease Rent pa Review Comments.

.. (Ground ITZA) (180.87) (1,947) To: 09.01.2036 ( 213 ZA) 10.01.2026 10 year reversionary lease from 10.01.2026... 10.01.2031 Total 296.

.. Basement Sales 476.02 5,124... Basement Stores 185.42 1,996 ZA assumes A/12 on basement sales, A/20 on basement store.

80 10,773 160 Mind Gym 1st Floor (Office) 657.84 7,081 From: 09.11.2012 330,000 09.11.2017 Kensington High Street Limited Ground (Reception) 29.08 313 To: 08.11.2022 ( 44.

10 A C C O M M O D AT I O N A N D T E N A N C Y S C H E D U L E Address Tenant Floor / Use Areas Lease Rent pa Review Comments... sq m sq ft Terms (psf ) Date 160 Metro Bank Plc Ground total ,189 From: , ZA assumes 5% addition for return frontage Kensington High Street... (Ground ITZA) (180.87) (1,947) To: ( 213 ZA) year reversionary lease from Total , Argos Limited Ground ,653 From: ,000 Kensington High Street (Ground ITZA) (171.67) (1,848) To: ( 207 ZA)... Basement Sales , Basement Stores ,996 ZA assumes A/12 on basement sales, A/20 on basement store. For review purposes, assumed staircase between the two levels to assume sales in basement (rental analysis available on request) Total 1, , Mind Gym 1st Floor (Office) ,081 From: , Kensington High Street Limited Ground (Reception) To: ( 44.35)... Ground (Storage) The tenant did not exercise its break option dated and receives 4 months rent free to be topped up by the vendor Total , Davis Court 2nd 4th Floors From: Peppercorn Kensington High Street Management (16 Flats) To: Company Limited TOTALS 1, ,402 1,254,000 10

T E N A N T C O V E N A N T S Argos was established in 1972. Trading...... from over 800 stores nationwide and.

The company was a significant part of Home Retail Group plc, which together with its subsidiaries, was sold on 2 September 2016 to J Sainsbury plc.

.... Argos Limited 27 Feb 2016 28 Feb 2015 01 Mar 2014.

(Liabilities) 383,784 621,399 529,624... Metro Bank is a deposit bank... running a model that requires.

11 T E N A N T C O V E N A N T S Argos was established in Trading from over 800 stores nationwide and specialising in the sale of general household goods, the company is one of the largest general goods retailer in the UK, generating over 3.9bn sales last financial year. The company was a significant part of Home Retail Group plc, which together with its subsidiaries, was sold on 2 September 2016 to J Sainsbury plc. Argos Limited is rated 5A1 by Dun & Bradstreet, indicating a minimum risk of business failure. The company has reported the following recent financial performances: Year to Year to Year to..... Argos Limited 27 Feb Feb Mar ( 000s) ( 000s) ( 000s) Sales Turnover 3,930,104 3,919,176 3,872,446 Profit / (Loss) Before Taxes (180,769) 97,146 43,992 Tangible Net Worth 648,286 1,202,554 1,172,054 Net Current Assets (Liabilities) 383, , , Metro Bank is a deposit bank... running a model that requires... a build-up of cash reserves through current accounts and savings before lending out to borrowers. Since arriving in the UK in 2010, it has opened 48 branches and is reputedly the first new bank to open in the UK in over 100 years. Metro Bank Plc is rated 5A1 by Dun & Bradstreet, indicating a minimum risk of business failure. The company has reported the following recent financial performances: Year to Year to Year to Metro.. Bank Plc 31 Dec Dec Sep ( 000s) ( 000s) ( 000s) Sales Turnover 254, ,526 96,068 Profit / (Loss) Before Taxes (17,198) (56,797) (48,601) Tangible Net Worth 712, , ,426 Net Current Assets (Liabilities) 1,224, , , Mind Gym is a performance management consultancy... providing specialist consultancy services to its clients. The skills provided include performance management, customer service, restructuring, employee engagement and personal effectiveness. Mind Gym deliver these goals by changing employees' attitude, belief and capability through workshops and individual training. The company was established in 1999, has expanded and now has offices in USA, Singapore and Dubai. Growth of the company has resulted in a client base across 30 different countries and the company reports that its clients include 61% of the FTSE 100 and 53% of the S&P 100. Kensington High Street is their sole premises in the UK with about 70 people working from the office. Mind Gym Ltd is rated 2A1 by Dun & Bradstreet, indicating a minimum risk of business failure. The company has reported the following recent financial performances: Year to Year to Year to... Mind.. Gym Ltd 31 Mar Mar Mar Turnover 25,033,117 19,834,373 16,464,648 Profit / (Loss) Before Taxes 1,847,559 1,509, ,864 Tangible Net Worth 2,938,372 2,431,738 1,603,572 Net Current Assets (Liabilities) 2,840,207 2,390,901 1,525,843 11

P L A N N I N G The property is located in The Royal Borough of Kensington and Chelsea.

The property is not listed and lies within the Edward Square / Scarsdale and Abingdon Conservation Area.

comprising Oxford Street, Knightsbridge, Regent Street, Covent Garden, Bond Street, the City of London and the King s Road.

including Gap, Urban Outfitters, Zara, H & M, Jigsaw, Massimo Dutti, Cos and Uniqlo.

discount to both Oxford Street ( 1,100 Zone A) and Bond Street ( 2,000 Zone A).

The most recent letting activity has been at the former Tesco Store, 146-158 Kensington High Street, which is next to the property.

Clydesdale Bank (t/a Studio B) acquired a unit (3,874 sq ft on ground only) in December 2016 at an average rent equating to 237 Zone

12 P L A N N I N G The property is located in The Royal Borough of Kensington and Chelsea. Its Core Strategy was adopted on 8 December The property is located in an area designated as a "Major Shopping Centre". The property is not listed and lies within the Edward Square / Scarsdale and Abingdon Conservation Area. R E TA I L I N G K E N S I N G T O N H I G H S T R E E T Kensington High Street forms one of London s eight key retail sub-markets, comprising Oxford Street, Knightsbridge, Regent Street, Covent Garden, Bond Street, the City of London and the King s Road. Kensington High Street has a critical mass of large and flagship branches of key middle and upper middle quality fashion stores including Gap, Urban Outfitters, Zara, H & M, Jigsaw, Massimo Dutti, Cos and Uniqlo. Whole Foods opened their 80,000 sq ft flagship store in 2007 and other large stores include Waitrose and Marks and Spencer (125,000 sq ft). Rents on Kensington High Street are calculated using 30 foot Zones, with prime rents currently at around 255 Zone A, a substantial discount to both Oxford Street ( 1,100 Zone A) and Bond Street ( 2,000 Zone A). Prime rental levels on Kensington High Street reached 325 Zone A therefore allowing substantial room for growth. The most recent letting activity has been at the former Tesco Store, Kensington High Street, which is next to the property. The store has been divided into four units with two units available to let. Clydesdale Bank (t/a Studio B) acquired a unit (3,874 sq ft on ground only) in December 2016 at an average rent equating to 237 Zone A, subject to 12 months rent free for a new 15 year lease with a tenant break in the 10th year. In June 2017, unit 3 (580 sq ft on ground with 10,415 sq ft in basement) was acquired by Decathlon at a rent of 397,500 per annum, for a new 15 year lease with a tenant break in 10th year. Also at 139/141 Kensington High Street, in September 2016, Trotters acquired a double unit at a rent reflecting 253 Zone A for a 10 year lease. On this basis there are strong prospects for further rental growth off the current passing rents of Zone A. 12

O F F I C E M A R K E T K E N S I N G T O N H I G H S T

vibrant retail and leisure offer being well positioned

It offers a healthy rental discount to competing central

companies such as Sony, Mulberry and EMI.

period stock resulting in limited supply of Grade A

With this limited supply and restricted development we

The rent for the offices at the subject property equates

35 per sq ft overall which compares favourably to the

Paddington 65 per sq ft Hammersmith 60 per sq ft

13 O F F I C E M A R K E T K E N S I N G T O N H I G H S T R E E T Kensington is a popular office location, with a vibrant retail and leisure offer being well positioned for the West End. It offers a healthy rental discount to competing central London locations attracting major international companies such as Sony, Mulberry and EMI. The office supply in Kensington is dominated by older/ period stock resulting in limited supply of Grade A office accommodation. With this limited supply and restricted development we believe there are good growth prospects in the area. The rent for the offices at the subject property equates to per sq ft overall which compares favourably to the following locations: Knightsbridge 85 per sq ft Paddington 65 per sq ft Hammersmith 60 per sq ft Shepherds Bush 55 per sq ft Notting Hill 55 per sq ft In January 2017, Endeavour Mining acquired 10,064 sq ft on the second floor of 5 Young Street (off Kensington High Street), for a 10 year lease (break in 5th) at a rent of 63 per sq ft. 13

K E N S I N G T O N I N V E S T M E N T M A R K E T The central London investment market

in the best pitches continually achieving yields of between 2% and 3%.

Given this reputation, capital values on the High Street are considered much lower in

As a result, investors are attracted to the area with potential for greater returns, therefore

201-207 Kensington High Street Robert Dyas, Octavia, Travelbag Short term, 16.48m 2.

... VP possible 12 months Value add opportunity 197 Kensington High Street Starbucks 9 years 7m 3.

1 years, 67.5m 4.19% Sep 15 Uppers sold off.

14 K E N S I N G T O N I N V E S T M E N T M A R K E T The central London investment market remains one of the most robust in the world, benefiting from a concentration of wealth and consistently high occupier demand. This has led to strong investment yields, which combined with a dearth of stock has resulted in the best pitches continually achieving yields of between 2% and 3%. Kensington High Street is a notable central London retail sub-market. Given this reputation, capital values on the High Street are considered much lower in comparison to Oxford Street and Bond Street. As a result, investors are attracted to the area with potential for greater returns, therefore the investment market has been active in recent years with a number of transactions taking place on the street. Investment transactions include: Address Tenant Lease Expiries Price Net Yield Date Comments Kensington High Street Robert Dyas, Octavia, Travelbag Short term, 16.48m 2.85% March 17 Freehold. 1st/2nd vacant.... VP possible 12 months Value add opportunity 197 Kensington High Street Starbucks 9 years 7m 3.35% Nov Kensington High Street Yo Sushi, Trailfinders, Kuoni, Snow & Rock + AWULT 7.1 years, 67.5m 4.19% Sep 15 Uppers sold off retail tenants Wellington House, Buckingham Gate SW1 Royal Quarter Café 13 years 3.43m 4.02% Aug 16 Uppers sold off 143 Kensington High Street Thomas Exchange Global Ltd 15 years (break 10th) 4m 3.75% July 15 Uppers sold off Kensington High Street Wilko, Columbia Sportswear, Kathmandu AWULT 7.7 Years 67.5m 4.19% June 15 Uppers sold off Kensington High Street UniQlo, Zara, Topshop, Miss Sixty Various 50m 3.60% Feb 15 Uppers sold off 14

It is intended that the sale will be treated as a Transfer of a Going Concern.

15 KENSINGTON HIGH STREET ARGYLL ROAD E P C R AT I N G The various elements of the property have each been given an EPC rating of D. F U R T H E R I N F O R M AT I O N Should you have any queries or wish to inspect, please contact: VAT The property is elected for VAT. It is intended that the sale will be treated as a Transfer of a Going Concern. P R O P O S A L Offers are invited in excess of 27,640,000 for the freehold interest, subject to contract and exclusive of VAT, reflecting a net initial yield of 4.25%, after deducting purchaser s costs of 6.76%. Darryl Stevenson DDI: darryl.stevenson@bidwells.co.uk Saul Western DDI: saul.western@bidwells.co.uk Bidwells 25 Old Burlington Street London W1S 3AN Tel: October

16 Bidwells 25 Old Burlington Street London W1S 3AN Tel: bidwells.co.uk IMPORTANT NOTICE RELATING TO THE MISREPRESENTATION ACT 1967 Bidwells LLP act for themselves and for the vendors of this property, whose agents they are, give notice that: These particulars do not form part of any offer or contract and should not be relied upon as statements or representatives of fact. Bidwells LLP have no authority to make or give in writing or verbally any representation or warranties in relation to the property. Any areas of measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. No assumptions should be made that the property has all necessary planning, building regulation or other consents. Bidwells LLP have not carried out a survey, nor tested the services, appliances or facilities. Purchasers must satisfy themselves by inspection or otherwise. In the interest of Health & Safety, please ensure that you take due care when inspecting the property. Bidwells LLP is a limited liability partnership registered in England & Wales (registered number OC344553). Registered head office is Bidwell House, Trumpington Road, Cambridge CB2 9LD, where a list of members is available for inspection.

RICHMOND 53 GEORGE ST TW9 1HJ. Prime High Street Freehold INVESTMENT FOR SALE

RICHMOND 53 GEORGE ST TW9 1HJ. Prime High Street Freehold INVESTMENT FOR SALE Prime High Street Freehold INVESTMENT FOR SALE Investment summary Highly affluent London Borough of Richmond; 100% prime George Street location; Freehold; Arguably most prominent unit on George Street;