FREEHOLD PRIME RETAIL / LEISURE INVESTMENT 501A OLD YORK ROAD, WANDSWORTH, LONDON SW18 1TF

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1 FREEHOLD PRIME RETAIL / LEISURE INVESTMENT 501A OLD YORK ROAD, WANDSWORTH, LONDON SW18 1TF

2 INVESTMENT SUMMARY Prominently located on Old York Road, opposite Wandsworth Town Station. Let to Barrecore Ltd on 10 year lease from May 2017 at a rent of 45,000 p.a. excl. Development potential, subject to usual consents. Guide price of 850,000 subject to contract. Net Initial Yield of 5.00% reflecting purchasers costs of 5.56%. WANDSWORTH Wandsworth is a suburb of South West London, approximately 5 miles from the Centre of London. It is located just south of the river between the suburbs of Battersea and Putney, benefitting from a high residential density and an affluent population of approximately 315,000 people of which some 46% of the population are between the ages of 25-44, the highest proportion nationally. Wandsworth is well connected to the city of London via rail services from Wandsworth Town Station that provides access to Waterloo in approximately 20 minutes. Wandsworth is also well connected via road with the A3 providing access to the West and the A214 providing access to the South. Heathrow airport is approximately 13 miles to the West and Gatwick Airport is approximately 25 miles to the South. PROPERTY LOCATION The property is located in a highly prominent position on Old York Road, directly opposite Wandsworth Town Station. It is close to the extremely popular Alma Public House. Old York Road contains a mix of national multiple retail, service and restaurant occupiers including Costa, Sainsbury s Local, James Pendleton Estate Agents, Jacksons Estate Agents, Mary s Living & Giving, Brew and Pizza Express. The area is currently experiencing significant investment with major developments currently taking place or in the pipeline including the development of The Ram Quarter on the former Young s Brewery Site, the proposed development of the Homebase site that has recently gained planning permission and the proposed redevelopment of the B&Q site. 2

3 BRIEF DESCRIPTION The property is arranged on ground, first and second floors and provides a ground floor lock up retail / leisure unit with a self-contained maisonette on the first and second floors. The ground floor accommodation offers the following approximate floor areas:- Gross Frontage m Internal Width (max) m Shop Depth m PLANNING The tenants successfully obtained a change of use from a B1 Photographic Studio to a D2 use with effect from 14 th March Further information is available upon request. TENURE The property is freehold. Ground Floor Sales m² 1,597 sq.ft. The ground floor has been fitted out to a high standard with showers and toilets being installed together with the fitness studio. Floor plans are available on request. EPC The property has an Energy Performance Asset Rating of 101, category D. The upper parts have been sold off on a 999 year long leasehold from 1 st February

4 SURROUNDING DEVELOPMENTS A number of large scale schemes are either ongoing or are proposed in the immediate vicinity of the subject property which will have an undoubted beneficial impact. These are as follows:- 1) The Ram Quarter Former Young s Brewery providing circa 650 new homes, circa 100,000 sq.ft. of retail and leisure space. 2) Homebase site Planning permission has just been granted for the redevelopment to incorporate 385 new homes, circa. 6,000 sq.ft. of retail and circa.1,800 sq.ft. of leisure space. 3) B&Q site proposals to provide 517 new homes and circa 84,500 sq.ft. of commercial space. 4) Hurlingham Retail Park proposals to provide 242 new homes and circa 33,000 sq.ft. of commercial space. NB: These schemes are illustrated on the enclosed map. ASSET MANAGEMENT POTENTIAL In terms of possible redevelopment, there is the long term potential to take back possession of the rear of the ground floor retail unit and either infill this space at both ground and first floors, or alternatively retain the ground floor as currently arranged and seek to build an additional flat or maisonette on the flat roof to the rear of the existing. There is a fire escape door to the rear that provides access to Lovett s Place. This development would be subject to planning and usual consents, and a permanent Right of Way to the rear of the property. CGI of proposed development of Homebase site 4

5 GROUND FLOOR TENANCY The ground floor retail unit is let to Barrecore Ltd on 10 year lease from May 2017 at a rent of 45,000 per annum exclusive. There is a tenant only break clause at the expiry of the 5 th year of the term, subject to 6 months prior written notice. The lease is contracted outside of the Security of Tenure provisions of the Landlord and Tenant Act There is a rent deposit of 11,250 plus VAT which is held by the landlord and is to be returned at the end of the lease term. COMMENT ON RENT We calculate that the rent on this unit devalues to circa 106 psf Zone A when allowing for a 7.5% adjustment for the configuration. On an overall basis, this equates to broadly psf GIA which compares favourably with other commercial rents in the area. TENANT COVENANT Barrecore Limited (Co no ) was established in 2011 and was the first specialist fitness studio to open in the UK. They currently operate from 12 sites with 8 in London and have plans in place for aggressive growth with an estimated 27 sites by the end of They reported a turnover of approximately 2.5 million at the end of 2016 and have an Experian credit rating of Below Average Risk. Further financial information is available on request. 5

6 A3 501A Old York Road Wandsworth Hurlingham Retail Park Redevelopment Circa 242 High Quality Residential units Circa 33,000 sq.ft. of commercial space RIVER THAMES WANDSWORTH BIRDGE ROAD YORK ROAD Proposed development Circa 517 Residential units Circa 84,500 sq.ft. of commercial space CLAPHAM JUNCTION SMUGGLERS WAY NANTES CLOSE PUTNEY BIRDGE ROAD WANDSWORTH TOWN HARTBUT ROAD Subject Property Proposed development The Ram Quarter Former Youngs Brewery Circa 650 new residential apartments Circa 100,000 sq.ft. of new retail and leisure space A217 TONSLEY HILL OLD YORK ROAD ALMA ROAD New luxury retirement home development BIRDHURST ROAD TRINITY ROAD A214 SPANISH ROAD ST JOHN S HILL GROVE Circa 385 residential units Circa 8,000 sq.ft. of commercial space Northern access to the station A3036 ST JOHN S HILL ELSYNGE ROAD Battersea Rise A3 WANDSWORTH HIGH STREET SOUTH CIRCULAR Southside Shopping Centre Circa 530,000 sq.ft. of retail & leisure space Anchored by Waitrose, Debenhams, Primark and TKMaxx along with Cineworld and a number of restaurants.

7 LONDON, SW18 1TF 501A OLD YORK ROAD, WANDSWORTH PROPOSAL For the freehold interest, we are seeking offers in the order of 850,000 to show a net initial yield of 5% after allowing for purchasers costs of 5.56%. This is an excellent opportunity to purchase a highly prominent retail / leisure investment of modest lot size occupying an attractive and dynamic location much in demand from retail, restaurant and leisure occupiers, which will provide good potential for future rental growth and for reconfiguration. The property is registered for VAT and it is expected that a sale will be by way of a TOGC. FURTHER INFORMATION For further information please contact: John Mortimer johnmortimer@smithprice.co.uk Sam Russell samrussell@smithprice.co.uk MISREPRESENTATION ACT These particulars are intended only as a guide to prospective purchasers to enable them to decide whether to make further inquiries with a view to taking up negotiations but they are otherwise not intended to be relied upon in any way or for any purpose whatever and accordingly neither their accuracy nor the continued availability of the property is in any way guaranteed and they are furnished on the express understanding that neither the agent nor the vendor is to be, or come, under any liability or claim in respect of their contents. The vendor does not hereby make or give nor does any Partner or employee of Smith Price LLP have any authority to make or give any representation or warranty whatsoever as regards the property or otherwise. Any prospective purchaser or lessee or other person in any way interested in the property should satisfy himself by inspection or otherwise as to the correctness of each statement contained in these particulars. In the event of the agents supplying any further information or expressing any opinions to a prospective purchaser, whether oral or in writing, such information or expression of opinion must be treated as given on the same basis as these particulars. These particulars do not form part of any contract and, except where expressly otherwise stated, offers will be considered only subject to contract. Smith Price LLP, 5/7 John Princes Street, London, W1G 0JN Smith Price LLP is a limited liability partnership registered in England and Wales. Registered number: OC Registered office: 5/7 John Princes Street, London W1G 0JN SUBJECT TO CONTRACT