383 KING S ROAD LONDON SW10 PRIME CHELSEA FREEHOLD INVESTMENT OPPORTUNITY

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1 PRIME CHELSEA FREEHOLD INVESTMENT OPPORTUNITY

2 Investment Considerations Freehold property in the prestigious Borough of Kensington and Chelsea Attractive corner building which has been comprehensively refurbished in 2016 to provide a restaurant and two apartments Restaurant arranged over ground and basement floors totalling 2,090 sq ft plus external seating area New 20 year lease to CRG London (sister restaurant to Pachamama in Marylebone) at a passing rent of 130,000 pa Residential upper parts to be sold off on two new 250 year leases with ground rents of 350 pa each Offers are invited in excess 3,000,000 subject to contract and exclusive of VAT A purchase at this level provides a Net Initial Yield of 4.09% allowing for purchaser s costs of 6.45% The two newly refurbished flats are also currently available to purchase. Further information can be provided upon request.

3 Location The Royal Borough of Kensington and Chelsea is one of London s most desirable and exclusive areas to live and work. Within the borough, the world renowned King s is one of London s premier retail destinations, which benefits from one of the most affluent residential catchments in the UK. This is further supported by a high number of national and international tourists who visit King s for its superb retail and cultural provision. Key attractions on the King s include the iconic Peter Jones department store, the famous Saatchi Gallery and Duke of York Square, which houses luxury global brands, restaurants and a weekly farmers market. The King s is home to a wide range of renowned international fashion brands, including Cos, French Connection, Michael Kors and Whistles. In particular, the King s features several French fashion retailers such as Catimini, Jacadi, Comptoir des Cotonniers, Petit Bateau, and Sandro. High demand from key international retailers on the street, such as Lulu Lemon and & Other Stories, which have opened stores in the last 24 months, has resulted in high occupancy rates on the street and a rise in rents. Due to its affluent residential catchment, elegant streets and fashionable heritage Chelsea has always been a magnet for some of London s finest restaurateurs. Demand has consistently remained relatively high and prime rents have risen by about 30% in the past five years alone. Key openings have included the first Ivy Market outside Covent Garden and the Café Colbert in Sloane Square (sister restaurant to The Wolseley and The Delaunay).

4 KEO SPA CHELSEA CONSERVATION CLUB ANTIC BAR POSTERS Situation The property is located in a prominent position on the south side of the King s at the junction with Milman s Street. The River Thames is located 100m to the south and Sloane Square and Fulham Broadway tube stations are located approximately a 15 to 20 minute walk east and west respectively. RESTAURANT This section of King s houses local and national retailers as well as a variety of restaurants, cafes and salons. Other A3 occupiers in the area include Marco Pierre White, Eight Over Eight, The Ivy Chelsea Garden, Polpo and the Bluebird Cafe. The proposed route of Crossrail 2, which is planned to be operational in 2030, includes a station on King s which would be located 500 metres east of the subject property and would provide direct links to 50 rail and underground stations.

5 t t. PARK CHISWICK ORTLAKE Ellsmere Rd. Great Chertsey Rd. TURNHAM GREEN Chiswick High Rd. BARNES BRIDGE Station Rd. Askew STAMFORD BROOKK Church King Great Roehampton Uxbridge River Lonsdale Lane Mill BARNES Street West Castelnau Hill Rocks Lane SHEPHERD S BUSH MARKET SHEPHERD S Demographics BUSH The Royal Borough of Kensington and Chelsea is one of the most affluent and densely populated urban areas in the UK. The borough accommodates many of the most expensive KENSINGTON and exclusive residential dwellings OLYMPIA in Europe. It is home to approximately 18,000 businesses that benefit from being in the midst of the most highly qualified population HAMMERSMITH in the country. Paddenswick Rd. tein RAVENSCOURT PARK The key employment sectors within the borough include Business Services (16.6% BARONS COURT of total employment) and Wholesale & Retail (16.5% of total employment), as well as Real Estate and Personal Service. Employment within the hotels and restaurants sector is also strong in comparison with other London areas. Thames Visitors are a significant driver of the local economy, with over 3 billion coming into the borough from non-resident expenditure. The potential for 53.4m of tourist comparison goods spend places Kensington Royal Borough ninth highest for tourist spend potential amongst all 449 CACI London centres. Almost half of non-resident spend in the Royal Borough is on retail, not surprising given the locality of some of the world s most exclusive shopping districts: Kings, Kensington High Street, the iconic Portobello and Knightsbridge. Queen s Ride Dover Upper Goldhawk Dalling Rd. South Africa Richmond Glenthorne Rd. King WOOD LANE St. Beadon Rd. Great West Rd. Lane Lower Shepherd s Bush Fulham Cross Palace Route Talgarth Bram Hammersmith HAMMERSMITH Fulham Stann s Holland Park Rdbt. Richmond Hill Holland Palace Rd. Putney High Street New Putney Upper Richmond e Gr. Dawes Fulham North Lillie King s End Bridge Holland Park Avenue Notting Hill Gate Talgarth PUTNEY Clarendon Noth End Munster HOLLAND PARK Addison Rd. Warwick Gdns. Warwick West Cromwell Rd. Bishops Campden WEST KENSINGTON Kelvedon Rd. PARSONS GREEN PUTNEY BRIDGE Kensington High Pemb Pembroke Rd. Parsons Green Lane Hill West Cromwell Rd. Kensington Earl s Church EARL S COURT West Cromwell Rd. Bayswater Street Street Court Rd. WEST BROMPTON FULHAM BWAY QUEENSWAY Fulham Broadway Harwood Rd. HIGH STREET KENSINGTON Cromwell y Way Old Finborough New Wandsworth Bridge Redcliffe Fairfie Brompton King s Gdns. Swandon Way Kensington Gunter Gr. Gloucester GLOUCESTER Imperial Old York Rd. Fulham Edith Gr. Bayswa Queen s Gate Cromwell Gdns. Harrington Drayton Gdns. IMPERIAL WHARF Townmead Chemorne York WANDSWORTH TOWN Marcilly Rd Rd. King s Lombard Rd. Exhibition e Wandsworth C Onslow Sq. Beaufort St. Plough Battersea Bridge Vicarage Cres. Pelham St. York St. John s Hill rk SOUTH KENSINGTON Sidney Fulham Rd. Westbrige Rd. Falcon Str et Oakley Battersea St. Cheyne Wlk CLAPHAM JUNCTION KNIGHTSBRIDGE Brompton 10 MINS Albert Bridge Rise Northcot King s Cambridge Rd. Battersea Knightbridge Latchmere Royal Pont Street Chelsea Emb. Sloane Street 20 MINS Hospital Park Elspeth Rd. ark Lane Lavender Hill C.Commom West Side King s Pimlico Belgrave Pl. Clapham Common North Side The South Audley St. HYDE PARK CORNER SLOANE SQUARE Grosvenor Pl. Rd. Chelsea Bridge Rd. Prince of Wales Drive 30 MINS Curzon Street Eccleston St. Ebury Bridge Rd. Queenstown Queenstown Cedars Berkeley Square Piccadilly Grosvenor Gdns VICTORIA Buckingham Palace Silverthorne Warw Wandswo

6 Description The property has been comprehensively refurbished in 2016 to provide a self-contained restaurant on the ground and basement floors with outside seating onto Milman s Street. On the first and second floors there are two apartments with separate access from King s. These are newly refurbished to a high specification and provide two bedrooms each with the benefit of terraces overlooking a garden square to the rear. Accommodation FLOOR AREAS SQ FT SQ M Ground Floor Restaurant 1, Basement Restaurant Total Restaurant 2, First Floor Two Bed Residential First Floor Terrace Second Floor Two Bed Residential Second Floor Terrace 88 8 Communal Entrance and Stairs 86 8 Total Residential 2, TOTAL 4,

7 Tenancies The ground and basement floors are let on a new fully repairing and insuring lease to CRG London Ltd for a term of 20 years from 1 March The initial rent of 130,000 pa is subject to 5 yearly upward only open market rent reviews. A six month rental deposit is held by the freeholder which can be reduced if conditions are met (more information available upon request). The two residential apartments will be sold off on new 250 year FRI leases with a ground rent of 350 pa for each apartment rising every 25 years by a fixed uplift of 350 pa. Covenant Chicama is a modern Peruvian Nikkei dining concept and is the second restaurant from CRG, following Pachamama, their Peruvian bar & kitchen in Marylebone, London W1. Tenure Freehold. The total rental income is 130,700 pa.

8 Investment Comparables ADDRESS TENANT(S) DATE PRICE NIY PURCHASER COMMENTS 50 Dean St, London W Parsons Green Lane, London SW6 200 Fulham, London SW Kings, London SW6 4 Great Marlborough St, London W Kings, London SW3 VAT L Entrecôte Apr m 3.53% Private New 20 year lease Côte Restaurants Mar m 3.34% Cambridge College Savills (UK) Ltd Dec m 4.22% Private Various, incl. Leather Chairs of Bath, Deidre Dyson, Orchid Furniture Aug m 3.48% Private Starbucks Coffee Company Jun m 2.97% Various, incl. Benihana and Michael Aukett Architects The property has been elected for VAT purposes and it is expected that the investment sale will be treated as a Transfer of a Going Concern (TOGC). Jun m 3.93% EPC Oxygen Asset Management Cadogan Estate 19 years unexpired. A2 Planning use. 6 years unexpired. Residential upper floors included. 8 years unexpired Offices above. An Energy Performance Certificate will be available upon request. Proposal Offers are invited in excess of 3,000,000 (Three Million pounds subject to contract and exclusive of VAT). A purchase at this level will provide a Net Initial Yield of 4.09% allowing for normal purchaser s costs of 6.45%. The two newly refurbished flats are also currently available to purchase. Further information can be provided upon request.

9 BECKY HANCE T: E: JONATHAN EVANS T: E: PAUL MORRIS T: E: DAVID MAYES T: E: MISREPRESENTATION ACT Colliers International and Fletcher King give notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Party 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. No person in the employment of Colliers International or Fletcher King has any authority to make any representation or warranty whatsoever in relation to this property. (September 2016) Colliers International is the licensed trading name of Colliers International Retail UK LLP which is a limited liability partnership registered in England and Wales with registered number OC Our registered office is at 50 George Street, London W1U 7GA.