Wandsworth. London, SW6 2UL A PROMINENT FREEHOLD RETAIL, LEISURE AND RESIDENTIAL INVESTMENT OPPORTUNITY IN FULHAM

Transcription

1 andsworth Road 132Bridge London, S6 2UL A PROMINENT FREEHOLD RETAIL, LEISURE AND RESIDENTIAL INVESTMENT OPPORTUNITY IN FULHAM

2 Page 2 Investment onsiderations / Prominent, freehold property situated in Fulham, one of London s most affluent boroughs / Substantial 16,088 sq ft mixed use building comprising retail accommodation over ground floor, with gym accommodation at basement level and residential accommodation on the first, second and third floors / Total current income of 402,625 per annum / 35% of the income is derived from the convenience foodstore, let to Sainsbury s Supermarkets Ltd until November 2029 / The gym trades as UN1T Fulham and the lease benefits from RPI linked rent reviews collared at 2% pa and capped at 4% pa Offers sought in excess of 9,750,000 (subject to contract and exclusive of VAT) reflecting a net initial yield of 4.83% on the commercial element and an average capital value of 917 psf for the residential element. Yields are net of purchaser s costs of 6.69%. / eighted average unexpired term on the commercial income of 12.2 years to expiry and 9.2 years to break / Upper floors provide nine residential units; seven let on ASTs and two sold off on long leases / Strategic position in affluent residential area with extensive frontage onto andsworth Bridge Road.

3 Page 3 Location Euston Station Kings ross Kings ross St Pancras Fulham forms part of the London Borough of Hammersmith and Fulham in south west London, 4.5 miles (7.25 km) from central London. The borough lies to the north of the River Thames, between Hammersmith and Kensington and helsea, across the river from Barnes and Putney. The upmarket location, known as one of London s most affluent boroughs, is especially popular with young professionals and families and is home to excellent schools and a variety of restaurants, boutiques, cafés and bars. The area is well served by public transport with Fulham Broadway and Parsons Green Underground Stations (Zone 2) providing direct access to London Victoria (via the District Line) with a fastest journey time of 16 minutes. Imperial harf is situated to the east, providing services (via London Overground and Southern rail) to lapham Junction, Shepherd s Bush and Euston. The A4 is situated approximately 2 miles (3.2 km) to the north of Fulham, providing access to the M4 (Junction 1) to the west and central London to the east. The A3 is accessible via andsworth Bridge Road over andsworth Bridge, which provides direct access to the South ircular, M4 and in turn the M25 motorway (Junction 4B). Heathrow Airport, the busiest airport in Europe having served 75.7 million passengers in 2016, is situated 17 miles (27.4 km) to the west. Barnes Shepherd s Bush estfield London Hammersmith Hammersmith Apollo Putney Shepherd s Bush Putney Kensington Portobello Market Putney Bridge Kensignton Earl s ourt Fulham Parsons Green Notting Hill Gate Kensington High Street Earl s ourt Fulham Broadway Kensington Palace South Kensington Knightsbridge V&A National History Museum Museum Imperial harf London Paddington South Kensington Battersea helsea lapham Junction Marylebone Marble Arch Belgravia Mayfair Hyde Park orner Sloane Square Regents Park Oxford ircus LAPHAM Fitzrovia Soho Leicester Square Buckingham Palace Victoria Battersea Power Station Piccadilly ircus andsworth Road haring ross Houses of Parliament lapham High Street London Eye Southbank Lambeth Vauxhall Oval Brixton Brixton hancery Lane aterloo St Paul s atherdral Tate Modern Elephant and astle amberwell Monument London Bridge Liverpool Street Southwark The Shard Tower of London Known as one of London s most affluent boroughs Southfields

4 Page 4 N Imperial harf National Rail helsea Football lub andsworth Roundabout Eel Brook ommon Fulham Broadway Underground Station Hurlingham Park Parsons Green Underground Station Putney Bridge Underground Station

5 Page 5 A315 Situation Lyric Hammersmith HAMMERSMITH A4 Earl's ourt EARLS OURT A3218 Peter Jones Saatchi Gallery Royal Brompton Hospital est Brompton A308 haring ross Hospital Fulham Palace Rd Fulham Palace Rd A3219 Munster Rd Dawes Rd Lillie Rd Dawes Rd North End Road A3218 EST BROMPTON Fulham Broadway Rd Finborough A3220 Stamford Bridge Fulham Rd Fulham Rd Redcliffe Gardens A308 A3217 helsea & estminster Hospital helsea Embankment heyne alk Albert Bridge Rd A3212 HODENS JOINERY N raven ottage Munster Rd FULHAM A304 Parsons Green Harwood Harwood Rd Rd Eel Brook ommon New Kings Rd helsea Harbour Imperial harf Battersea Reach erd estbridg Battersea Bridge Rd A308 Lower Richmond Rd S ircular Rd A219 Putney PUTNEY Putney Bridge Approachs Putney Bridge Approach Putney Bridge East Putney A3 S ircular Rd 13 min Rd Bridge Putney 2 min Parsons Green Fulham Broadway Hurlingham Park A3 Southside Shopping entre 2 min A217 Ln Garratt Rd Bridge andsworth ay Swandon Putney Bridge 3 min est Brompton Hill East York Rd Trinity Rd A3220 A3205 St John s Hill South ircular Rd East Putney 5 min A214 A3036 Falcon Rd BATTERSEA andsworth ommon 13 min Northcote Rd 5 min 16 min Earls ourt Victoria Latchmere Rd A3 imbledon The property enjoys a prominent position on andsworth Bridge Road, directly opposite its junction with Hazlebury Road, within a highly sought after and densely populated residential area. The pitch is central to the local convenience offer. Fulham Broadway and Parsons Green Underground Stations (District Line Zone 2) are both 0.6 miles (1 km) to the north and north east respectively. There is a bus stop directly outside the property providing access to Kensington to the north and Battersea and Putney to the south. Surrounding retailers include affe Nero, Randalls Butchers, Starbucks, Joe s Brasserie and James Pendleton Estate Agents, as well a number of independent bars, beauty salons and boutique stores. The Kings Road and Fulham Road, providing a further retail and restaurant offer, are within close proximity as well as the open spaces of Eel Brook ommon and Hurlingham Park.

6 Page 6 Demographics The property benefits from an affluent local catchment population, with a significantly high proportion of AB category households (42.6% compared to the national average of 22.2%). The area is categorised by working aged professionals, with 54% aged and 45.9% of employed residents working within higher managerial/director professional roles. 83% of the catchment population fall into the ity Prosperity Experian Mosaic Group, defined as those who work in high status positions, command substantial salaries and who are able to afford expensive urban homes. ell-educated, confident and ambitious, this elite group is able to enjoy their wealth and the advantages of living in a world-class capital to the full. The foodstore and gym benefit from a densely populated catchment area with 79,285 people living within a 1.5 km radius where residents benefit from a high disposable income. Lyric Hammersmith HAMMERSMITH haring ross Hospital raven ottage M&S FOOD SAINSBURY S AITROSE EARLS OURT EST BROMPTON FULHAM Stamford Bridge The Hurlingham lub SAINSBURY S Peter Jones Saatchi Gallery SAINSBURY S helsea & estminster Hospital Battersea Reach Royal Brompton Hospital THE O-OPERATIVE FOOD BATTERSEA Radius 1.5 km Population 79,285 Households 36,036 PUTNEY Radius 1.0 km Population 31,602 Households 14,110 Southside Shopping entre Radius 0.5 km Population 11,109 Households 4,719 Foodstore competition andsworth ommon Experian Social Grade AB 1 2 DE There are 4 food stores within the primary 1.5 km catchment: 1) Sainsbury s (34,128 sq ft) 27 Townmead Road, Fulham, London S6 2GD 2) aitrose (15,368 sq ft) 402 North End Road, Fulham, London, S6 1LX 3) Sainsbury s (10,092 sq ft) Fulham Broadway Shopping entre, London, S6 1B 4) The o-operative (10,508 sq ft) Omega House, King s Road, helsea, S10 0LU Fulham UK

7 Page 7 Description The property comprises a prominent, mixed use building arranged over basement, ground and three upper floors, with extensive frontage onto andsworth Bridge Road. The purpose built property was completed in 2014 and accommodates a convenience foodstore (lass A1) over the ground floor, a personal training gym (lass D2) across the basement level and residential apartments (lass 3) on the three upper floors. Sainsbury s Supermarkets Ltd occupies 4,185 sq ft across the well-configured ground floor which has been fitted out in Sainsbury s usual corporate branding. UN1T Fulham occupies the 4,230 sq ft basement, benefitting from direct access from andsworth Bridge Road with a selfcontained lift and staircase. The gym provides a training and conditioning studio, spinning room, as well as luxury changing and therapy rooms. 35% of income is derived from Sainsbury s Supermarkets Ltd

8 Page 8 Residential Penthouse Stylish kitchen with stone worktops Riverton Apartments on the upper floors comprise nine residential units, with six 2 bedroom and two 1 bedroom apartments on the first and second floors and a 3 bedroom penthouse apartment with outdoor terrace situated on the third floor. The residential units are accessed directly from andsworth Bridge Road via a private entrance and benefit from internal lift access. Each apartment has been fitted out to a high specification throughout including fully fitted Stormer kitchens with Siemens appliances and fitted luxury bathrooms. Seven of the flats are let on Assured Shorthold Tenancies and two of the flats (flat 1 and flat 4) have been sold off on 125 year long leases with ground rents. To the rear of the property there are two marked car parking spaces which accompany flat 2 and flat 9, as well as space for bike storage. For the purposes of pricing we have apportioned a capital value of 850 psf to the larger penthouse apartment and 950 psf to the flats on the first and second floors. Luxurious master bedroom with ensuite ENSUITE BEDROOM 3 ENSUITE BEDROOM BEDROOM 2 ENSUITE A/ 9 LIFT First floor Second floor BEDROOM BEDROOM BEDROOM 2 BEDROOM BEDROOM BEDROOM 2 ENSUITE A/ LIFT ENSUITE A/ LIFT A/ ENSUITE ENSUITE A/ A/ ENSUITE ENSUITE A/ itchen with ne worktops Stylish kitchen with stone worktops BEDROOM 2 BEDROOM 2 BEDROOM BEDROOM BEDROOM 2 BEDROOM 2 BEDROOM BEDROOM Luxurious master bedroom with ensuite Luxurious master bedroom with ensuite

9 Page 9 Tenancy schedule Unit Tenant Floor Area (sq ft) Lease Start Lease Expiry (Break Date) Rent Passing (per annum) omments Foodstore Sainsbury s Supermarkets Ltd Ground 4,185 01/12/ /11/ ,000 ( psf) FRI lease subject to 5 yearly open market rent reviews. Next review due in Gym Ropa Fitness Ltd Basement 4,230 28/10/ /10/2028 (28/10/2022) 70,000 ( psf) Use lass D2. 7 months rent free agreed (rent commencing 28/05/2017) which will be topped up by the vendor. 4 yearly RPI linked rent reviews, collared at 2% pa and capped at 4% pa. Total ommercial 8, ,000 Flat 1 (2 bed) First /01/ /12/ Sold off on 125-year long leasehold. Ground rent of 250 pa for the first 25 years, 500 pa from 01/01/2040, 1,000 pa from 01/01/2065, 2,000 from 01/01/2090, and from 01/01/2115 for the remainder of the term 4,000 pa. Flat 2 (2 bed) AST First /07/ /07/ ,520 1 parking space allocation. Flat 3 (1 bed) AST First /07/ /07/ ,200 Flat 4 (2 bed) First /01/ /12/ Sold off on 125-year long leasehold. Ground rent of 250 pa for the first 25 years, 500 pa from 01/01/2040, 1,000 pa from 01/01/2065, 2,000 from 01/01/2090, and from 01/01/2115 for the remainder of the term 4,000 pa. Flat 5 (2 bed) AST Second /07/ /07/ ,432 Flat 6 (2 bed) AST Second /08/ /08/ ,200 Flat 7 (1 bed) AST Second /07/ /07/ ,773 Flat 8 (2 bed) AST Second /10/ /10/ ,700 Flat 9 (3 bed penthouse with terrace) AST Penthouse 2,043 31/07/ /07/ ,300 1 parking space allocation. Tenants have served notice to vacate on 07/04/17. Apartment is currently being marketed to let. Total Residential 7, ,625 16,088 Gross Income: 402,625

10 Page 10 Tenure The property is held freehold under title numbers BGL69174 and LN Investment evidence Popular convenience-led pitch with surrounding occupiers including independent bars, restaurants and boutique stores Date Address Tenant Price ( m) Net Initial Yield (%) omment Feb-17 Dec-16 Heritage Lane, est Hampstead, London N6 294 Old Brompton Road, London S5 M&S 7.40m 4.12% Virtual freehold interest. New 15-year lease with 5 yearly RPI linked reviews (1-4%) and 3 local tenants on new 10-year leases. Tesco 4.30m 3.90% Ground floor retail unit with residential above. Sep-16 60&70 Parsons Green Lane, London S6 o-op, Le Pain Quotidien 6.37m 3.76% 8,428 sq ft. urrent passing rent of 255,001 per annum. AULT of 12.9 years. Residential uppers sold off on long leaseholds. Service charge The total service charge budget (including insurance) for the year ending 31st December 2017 is 17, The service charge is split across two schedules; schedule A includes the residential and commercial elements and schedule B relates to residential only. Under the current apportionment schedule, 36% of the service charge is recoverable from the commercial tenants and long leaseholders with the freeholder liable for service charges relating to the AST apartments amounting to 11, The service charge liability for Sainsbury s equates to just 0.39 psf and 0.43 psf for Ropa Fitness.

11 Page 11 ovenant information Sainsbury s Supermarkets Limited (company number ) is one of the leading food store operators within the UK and is one of the Big Four supermarket chains dominating the UK grocery market. Sainsbury s is the second largest chain of supermarkets in the UK, with a 16.5% market share of the supermarket sector (as at 29/01/2017). The company occupies c million sq ft of retail space in the UK across 1,374 stores (560 supermarkets and 814 convenience stores) and employs over 161,100 employees. The covenant is one of the strongest in the supermarket sector with a Dun & Bradsheet rating of 5A1 representing a minimum risk of business failure. A summary of the last three years accounts is set out below: Y/E Sales Turnover Y/E 12/03/ Y/E 14/03/ Y/E 15/03/ ,168,000 23,443,000 23,919,000 Pre-Tax Profit 406,000 (206,000) 810,000 Net orth 4,458,000 4,224,000 4,706,000 Ropa Fitness Limited (ompany Number: ) trades as UN1T Fulham which is a high-end athletic conditioning studio offering a trio of cardio, strength and mobility focused classes using state of the art equipment. UN1T focuses on team-oriented, competitive sessions which are coach led. UN1T will open its second gym under the same brand in London Bridge in the next few months. VAT 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 oncern (TOG) subject to the purchaser s VAT status. EPs The Energy performance ratings for the property are highlighted below: Property Address 132 andsworth Bridge Road Ground & Basement EP Rating B (43) Flat 1 B (84) Flat 2 B (86) Flat 3 B (85) Flat 4 B (85) Flat 5 B (86) Flat 6 B (85) Flat 7 B (83) Flat 8 B (84) Flat 9 B (87)

12 Proposal Offers sought in excess of 9,750,000 (subject to contract and exclusive of VAT) reflecting a net initial yield of 4.83% on the commercial element and an average capital value of 917 psf for the residential element. Yields are net of purchaser s costs of 6.69%. Becky Hance becky.hance@colliers.com olliers International 50 George Street London 1U 7GA Georgie Griffiths georgie.griffiths@colliers.com Disclaimer: olliers 2017 olliers International gives 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 olliers International has any authority to make any representation or warranty whatsoever in relation to this property. (March 2017) olliers International is the licensed trading name of olliers International Retail UK LLP which is a limited liability partnership registered in England and ales with registered number O Our registered office is at 50 George Street, London 1U 7GA. March 2017 Ref: January