118-120 Wigmore Street LONDON W1 FREEHOLD WEST END RETAIL INVESTMENT OPPORTUNITY 118-120 Wigmore Street, London W1U 3RT 1
Investment Summary Exceptional West End location, in close proximity to Oxford Street. Less than 300m from Bond Street Station which is set to benefit from the opening of Crossrail in December 2018. Two highly prominent retail units located on Wigmore Street, a core West End pitch. The property provides 5,917 sq ft (549.7 sq m) of high quality retail showroom space, 29 flats and 2 mews garages. Fully let with a total rental income of 375,000 per annum of which 98% is secured against the two retail tenants. Average weighted unexpired lease term of approximately 7.40 years to lease expiry on the retail element. Excellent potential for substantial additional value from 11 residential flats with unextended leases. Proposal Offers are invited in excess of 8,750,000 subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 4.26%, on the retail income, and 500,000 for the benefit of the residential interest. Yields are net of purchaser s costs of 6.68%. Consideration will also be given to the sale of the SPV. 118-120 Wigmore Street, London W1U 3RT 2
Location 118-120 Wigmore Street is located in the heart of London s West End, which continues to thrive as one of the World s most popular shopping and tourist destinations. Wigmore Street provides the main retail thoroughfare linking Portman Square in the west to Cavendish Square in the east. Wigmore Street is situated at the centre of London s prime retail district with Bond Street and Oxford Street to the south and Marylebone High Street to the north. The world famous Selfridges department store is located immediately to the south of the property. Bond Street boasts the capital s most luxurious and exclusive retail brands such as Cartier, Hermes and Louis Vuitton, whilst Oxford Street and Marylebone High Street are two of the world s most sought after retail destinations for global brands and boutiques respectively. Wigmore Street itself has become an increasingly popular retail destination in its own right. The street has attracted interior design showroom style retailers which are suited to the larger units available as well as restaurant operators catering to the surrounding office workers and tourists. St Christopher s Place, the popular retail and leisure destination, is located just 50m from the property. Occupiers here include Whistles, Kurt Geiger, Patty & Bun, Carluccio s, Ole & Steen and Côte. Oxford Circus Portman Square Regent Street Manchester Square Marylebone Lane 118-120 Wigmore Street Bond Street Station Oxford Street Selfridges Berkeley Square Grosvenor Square 118-120 Wigmore Street, London W1U 3RT 3
118-120 Wigmore Street, London W1U 3RT 4
Communications Wigmore Street benefits from an excellent transport network with a number of London Underground stations easily accessible. The property is situated approximately 300 metres from Bond Street station which is served by the Central and Jubilee lines currently, with the Elizabeth line (Crossrail) soon to open. Oxford Circus station lies 800 metres to the south east of the property and is served by the Victoria, Bakerloo and Central lines. The property is in close proximity to several significant mainline railway stations, including Marylebone and Paddington, providing access beyond London. Crossrail As Europe s largest infrastructure project, Crossrail will revolutionise connectivity across the capital s business district and beyond. With completion scheduled for December 2018, Crossrail will provide a high speed, high frequency and high capacity train service offering passengers faster and more direct journeys across London s eastwest axis. Located only 300 metres from the property, Bond Street s Crossrail station will be at the epicentre of the West End of London. With the arrival of Crossrail, passenger volumes are expected to grow to over 220,000 daily with 24 trains per hour running at peak times in each direction. Two new ticket halls, a western ticket hall at Davies Street and an eastern ticket hall on the corner of Hanover Square and Tenterden Street, are being constructed to cater for the increase in passenger numbers. The property is well located to benefit from the increase in footfall from the opening of Crossrail and the new entrance to the station on Marylebone Lane. The new railway will provide access to 200 million passengers annually, increasing London s railbased transport network capacity by 10%. Key Crossrail stations along the central route include Paddington, Bond Street, Tottenham Court Road, Farringdon, Liverpool Street and Canary Wharf. Travel times from Bond Street upon opening of Crossrail: BOND STREET 52 40 34 1 4 7 MINS MINS MINS 3MINS MINS MINS MINS MINS READING MAIDENHEAD HEATHROW AIRPORT PADDINGTON Jubilee Central Crossrail 118-120 WIGMORE STREET TOTTENHAM COURT ROAD FARRINGDON LIVERPOOL STREET 13 CANARY WHARF 118-120 Wigmore Street, London W1U 3RT 5
Situation The property occupies a highly prominent position on the north side of Wigmore Street, close to the junctions with Portman Square and Duke Street. Marylebone High Street is located to the north east of Wigmore Street, Oxford Street is to the south and Baker Street to the north west. The building sits between the two highly affluent areas of Mayfair and Marylebone. Other retailers in close proximity to the subject property include Wagamama, Joe & the Juice, Fendi Casa, KitchenAid and Zizzi. HALCYON WIGMORE KITCHENS 118-120 Wigmore Street, London W1U 3RT 6
GLOUCESTER PLACE PARK LANE REGENT STREET MARYLEBONE BAKER STREET MARYLEBONE ROAD CRAWFORD STREET GLOUCESTER PLACE Paddington Street Gardens THAYER STREET NEW CAVENDISH STREET EDGEWARE ROAD GEORGE STREET Manchester Square WIGMORE STREET Cavendish Square WIGMORE STREET Portman Square 118-120 WIGMORE STREET OXFORD CIRCUS OXFORD STREET Marble Arch BAKER STREET BAKER STREET OXFORD STREET BOND STREET REGENT STREET Marble Arch Hyde Park BROOK STREET Grosvenor Square 118-120 Wigmore Street, London W1U 3RT 7
The Building The property comprises a prominent nine storey terraced building arranged as two retail units at basement and ground floor level with residential accommodation over the seven upper floors. The retail units are well configured to provide spacious ground and lower ground floor showrooms, which have been extensively fitted out to a high standard by the tenants. The residential accommodation, which benefits from self-contained access between the two retail units, comprises 29 apartments arranged over first to seventh floors and has been sold off on a long leasehold interest. The property also benefits from two selfcontained garage units to the rear, which are accessed via Seymour Mews. The property has been measured in accordance with the RICS Code of Measuring Practice and comprises the following Net Internal Areas: Premises Accommodation Area (sq ft) Area (sq m) 118 Wigmore Street Wigmore Kitchens Ground ITZA Basement Total 822 768 757 1,579 76.4 71.3 70.3 146.7 120 Wigmore Street Halcyon Ground ITZA Basement Total 1,917 1,166 2,421 4,338 178.1 108.3 224.9 403.0 Total 5,917 549.7 118-120 Wigmore Street, London W1U 3RT 8
Tenancy Schedule Unit Tenant Lease Start Rent Review Lease Expiry Rent Passing (pa) Rent Passing (psf ZA) ERV (pa) Comments 118 Wigmore Street Wigmore Street Kitchens Limited 24/06/2011 23/06/2021 123,000 146.00 160,000 120 Wigmore Street Halcyon Interiors Limited 11/04/2018 11/04/2023 10/04/2028 245,000 198.00 245,000 A rental deposit of 122,500 is currently held. Wigmore Court 120 Wigmore Street Limited 29/09/1984 29/09/2050 08/10/2083 1,000 1,500 Ground rent increases to 1,500 pa in 2050. Garages John de Stefano Management Services Limited 05/10/2015 04/10/2020 6,000 8,000 2 garages on Seymour Mews. Total 375,000 414,500 Rental Evidence Whilst the most recent rental evidence on Wigmore Street has been generated within the subject property by the new letting to Halcyon Interiors and the Wigmore Street Kitchens rent review, below are some further relevant transactions which support the rental levels achieved: Address Date Tenant Transaction Rent psf ITZA 33 Marylebone Lane Oct-16 City & Central Barber Shop OML 238.54 69 Wigmore Street Apr-16 Costa RR 192.50 63 Wigmore Street Oct-15 Ruffians OML 201.00 118-120 Wigmore Street, London W1U 3RT 9
Residential Leases The residential accommodation comprises 29 apartments which are held on a long leasehold interest to 120 Wigmore Street Limited until October 2083 with a ground rent of 1,000 per annum payable to the freeholder. Of the 29 residential apartments, 28 are held on individual leases with the exception of Flat 29, a porter s flat, held directly by the headlessee. Lease extensions for 90 years until September 2173 at peppercorn rents have been agreed on 18 of the flats to date. There is, therefore, significant potential upside for the buyer through the premiums payable on the remaining 11 lease extensions. The headlessee, 120 Wigmore Street Limited, receives approximately 5% of the premium payments with approximately 95% payable to the freeholder. The most recent lease extensions have been those of Flats 12 and 14 in Summer 2018 at gross premiums of 86,500 and 125,000 respectively. It is therefore estimated that there remains an additional 1,034,000 in gross premiums to be received from the outstanding lease extensions, with each becoming more valuable over time, as the leases run down and the premiums increase. Details of the residential underleases are summarised in the table below: Flat No. Ground Rent No. of Bedrooms Underlease Expiry Years Unexpired 1 1 st 2 28/09/2173 155 2 1 st 2 28/09/2173 155 3 1 st 2 28/09/2173 155 4 1 st 2 28/09/2173 155 5 2 nd 3 28/09/2173 155 Estimated Gross Premium as at Sept 2018 6 2 nd 2 28/09/2083 65 87,000 7 2 nd 2 28/09/2083 65 110,000 8 2 nd 2 28/09/2173 155 9 3 rd 3 28/09/2083 65 125,000 10 3 rd 2 28/09/2083 65 87,000 11 3 rd 2 28/09/2173 155 12 3 rd 2 28/09/2173 155 13 There is no flat 13 14 4 th 3 28/09/2173 155 15 4 th 2 28/09/2083 65 87,000 16 4 th 2 28/09/2083 65 110,000 17 4 th 2 28/09/2173 155 18 5 th 3 28/09/2173 155 19 5 th 2 28/09/2083 65 87,000 20 5 th 2 28/09/2173 155 21 5 th 2 28/09/2083 65 87,000 22 6 th 2 28/09/2173 155 23 6 th 2 28/09/2083 65 87,000 24 6 th 2 28/09/2173 155 25 6 th 2 28/09/2173 155 26 7 th 1 28/09/2173 155 27 7 th 2 28/09/2083 65 87,000 28 7 th 2 28/09/2173 155 29 7 th Porter s Flat Headlease 65 80,000 30 Ground 1 28/09/2173 155 1,034,000 118-120 Wigmore Street, London W1U 3RT 10
Covenant Tenure Wigmore Street Kitchens Limited Wigmore Street Kitchens Limited (Company Number: The property is held freehold under title numbers 444912 and LN5801. 03027340) was established 125 years ago and has traded from 118 Wigmore Street for over 30 years. Its parent company, Nobia, a Swedish kitchen specialist and one of Europe s largest kitchen suppliers, recorded net sales of approximately SEK 12.648 billion in 2016 ( 1,177,582,915 as at October 2017 conversion rates) and operating profit of SEK 1.298 billion ( 120,828,461). Wigmore Street Kitchens Limited is rated H2 by D&B which indicates Lower Than Average Risk. The most recent published accounts for Wigmore Street Kitchens Limited are summarised as follows: 26 to 37 Seymour Mews House 130 122 YMOUR MEWS 23 15 Wigmore Court 120 118 20 18 19 110 to 116 101 10 TCB 13 108 1 W 31/12/2015 31/12/2014 31/12/2013 TCB Sales Turnover 2,442,360 2,425,854 3,349,721 Profit Before Tax 187,455 156,044 379,395 Total Assets 1,916,058 1,783,210 1,981,466 103 Halcyon Interiors Limited Halcyon Interiors is a family run kitchen design business founded in 1981. The company trades from three showrooms across London and the South East and specialises in bespoke kitchen design services in conjunction with high end brands. Halcyon Interiors Limited (Company Number: 05453335) is rated 60/100 by Creditsafe indicating Low Risk. The most recently published accounts are summarised as follows: 31/03/2017 31/03/2016 31/03/2015 Sales Turnover Profit Before Tax Total Assets 1,044,969 1,130,335 702,587 EPC The building has the following EPC ratings: 118 Wigmore Street E124 120 Wigmore Street C57 Copies of the EPC certificates are available upon request. VAT The property has not been elected for VAT purposes. 118-120 Wigmore Street, London W1U 3RT 11
Contact Dominic Amey 020 7344 6604 07811 944024 Dominic.amey@colliers.com Becky Hance 020 7344 6841 07894 509566 Becky.hance@colliers.com Colliers International 50 George Street, London, W1U 7GA Jack Harrison 020 7344 6724 07720 073231 Jack.harrison@colliers.com Hannah Greenland 020 7344 6559 07860 180314 Hannah.greenland@colliers.com Proposal Offers are invited in excess of 8,750,000 subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 4.26%, on the retail income, and 500,000 for the benefit of the residential interest. Yields are net of purchaser s costs of 6.68%. Consideration will also be given to the sale of the SPV. MISREPRESENTATION ACT DISCLAIMER Colliers 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 Colliers International has any authority to make any representation or warranty whatsoever in relation to this property. (September 2018) Colliers International is the licensed trading name of Colliers International central London UK LLP which is a limited liability partnership registered in England and Wales with registered number OC391630. Our registered office is at 50 George Street, London W1U 7GA. Designed and produced by Parer Creative. Tel 07702 123482. 118-120 Wigmore Street, London W1U 3RT 12