Greater London Restaurant Investment Opportunity Pizza Express Colne Lodge, Staines-upon-Thames Surrey TW18 4SP
Pizza Express, Colne Lodge, INVESTMENT SUMMARY Staines-upon-Thames is an affluent and popular commuter town located in Surrey. Well configured restaurant unit with extensive sales and ancillary area. Fronting Clarence Street (A308) and close to Staines town centre s main retail amenities. Let to Pizza Express (Restaurants) Limited with just under 6 years unexpired. 65,000 per annum exclusive ( 20 psf average) with an additional total ground rent receivable of 1,600 from the 8 residential flats ( 200 per flat per annum). Total income of 66,600 per annum. Pizza Express (Restaurants) Limited holds a Dun & Bradstreet rating of 5A1. Freehold. Next rent review in 2018. The property has been substantially improved following a residential conversion of the upper parts and overcladding. We are instructed to seek offers in excess of 925,000 (Nine Hundred and Twenty Five Thousand Pounds) subject to contract and exclusive of VAT for our client s freehold interest. A purchase at this level would reflect an attractive net initial yield of 6.80% assuming purchaser s costs of 5.66%.
t Pizza Express, Colne Lodge, Church Street raysbury Road A308 Staines Bridge A320 Chertsey Lane B376 Bridge Street Hale St Church Street A308 Clarence Street PIZZA EXPRESS, COLNE LODGE, CLARENCE STREET Tilly s Lane A308 Thames Street Mustard Mill Road Norris Road High Street Mill Mead Elmsleigh Shopping Centre B376 Laleham Road A308 South Street A308 High Street Gresham Road Fairfield Avenue Station Path Budebury Road A308 London Road Kingston Road Sidney Road Staines Gresham Road 3 Gre ames leet High Wycombe A355 M40 A404 A404(M) Bracknall Ascot A322 M3 A331 Aldershot A413 M25 Slough Windsor J16 Woking A3 J15 GUILDFORD Watford STAINES- J12 UPON-THAMES Borehamwood A1 M1 Harrow Wembley Uxbridge A40 Brent Cross Enfield A10 M11 LONDON A12 London M4 City A2 Heathrow Richmond Clapham A316 Ashford Kingston Upon Thames A20 A309 A23 Bromley A3 Croydon A232 A21 Epsom J10 A217 Biggin Hill A22 J9 M25 J8 J7 J6 Oxted Dorking Redhill A24 D J5 LOCATION Staines-upon-Thames is a popular and affluent town in Surrey, located on the western boundary of the M25. Situated on the north side of the River Thames, Staines-upon-Thames is approximately 4 miles south west of Heathrow Airport and 17 miles south west of Central London. The town benefits from excellent road communications, being adjacent to the A30 and A308 trunk roads, which provide access to the M25 Motorway via junction 13, approximately 1 mile to the west. Regular rail services are provided from Staines railway station to London Waterloo with a fastest journey time of approximately 32 minutes. The primary catchment population in Staines-upon- Thames is 238,000, which includes a noticeable proportion of adults between the ages of 25 and 44, who are the tenant s ideal customer age group.
Pizza Express, Colne Lodge, SITUATION The core retail offer in Staines is provided by the Two Rivers Retail Park and the Elmsleigh Shopping Centre with the pedestrianised High Street providing a thoroughfare between the two. Many major multiple retailers are represented on the high street including H&M, Marks & Spencer, WH Smith, Debenhams, McDonalds and Monsoon. The subject property is situated some 150 metres to the west of the high street in an area with numerous restaurants, bars and leisure facilities including JD Wetherspoon, The Slug & Lettuce, Jimmy Spices Indian Cuisine, Roshni s and the Town Hall Public House. DESCRIPTION The property comprises a former 1980 s office building with restaurant accommodation on ground and basement. The upper parts have been converted to high quality residential flats and an extra floor has been added to provide three floors above the restaurant in total. Internally, Pizza Express has fitted the restaurant to their corporate specification and the accommodation provides an attractive setting overlooking the River Colne. The tenant has the benefit of basement space which it utilises for ancillary storage, staff and WC accommodation. To the rear of the property, the tenant has created a small outdoor seating area over part of the demised car park. A service door at the front of the property provides direct access to the basement. To the rear is a car park with 12 spaces and a communal yard, which provides service provisions. The tenant has recently sub-let in part a small area at the front to a take-away pizza company called Firezza, a wholly owned subsidiary of Pizza Express.
Pizza Express, Colne Lodge, TENANCY The restaurant accommodation is let entirely to Pizza Express (Restaurants) Limited (company number 02805490) for a term of 35 years from 29 September 1988, expiring 28 September 2023 and produces a total rent of 65,000 per annum. The lease is subject to 5 yearly upward only rent reviews the next of which is due on 29 September 2018. The eight residential flats have been sold off on long leases at a ground rent of 200 per annum per flat and will each rise by 50 per annum on every 25th anniversary. Section 5A notices have been served and the initial notice period is due to expire on 15th December 2017. The property has been measured in accordance with the RICS Property Measurement (1st Edition) and our client has provided us with the following Gross Internal Area (GIA). Tenant Floor GIA (sq ft) Lease Start Lease Expiry Rent Passing per annum Rent Passing (psf) Comments Pizza Express (Restaurants Limited) Ground Basement 2,903* 2,399 29/09/1988 28/09/2023 65,000 20** *Ground floor area is 2,643 sq ft net of a tenant improvement. **Overall rent psf assumes basement accommodation valued at 25%. Various Upper floors 5,801 - - 1,600 - Total 11,103 66,600 20 The tenant has sub-let a small part of the ground floor to Firezza Limited (company number 04158876), a wholly owned subsidiary of Pizza Express, for a term of 7 years from 11th October 2016 expiring 24th September 2023. The rent passing is 15,000 per annum and is subject to a rent review on 29th September 2018. COVENANT Pizza Express is a restaurant group with over 400 restaurants across the United Kingdom and 40 overseas in Europe, Hong Kong, India and the Middle East. In July 2014, the group was sold to the China-based private equity firm Hony Capital in a deal worth 900 million. The tenant holds a Dun & Bradstreet rating of 5A1 and its latest report and accounts include the following results. 1/1/17 (000 s) 28/6/15 (000 s) 29/6/14 (000 s) Sales Turnover 601,005 382,942 351,658 Profit/ (Loss) before Taxes 120,891 76,365 67,901 Net Assets 642,533 525,263 452,376 TENURE Freehold EPC The property has an EPC rating of E. VAT Property is elected for VAT. It is envisaged that the sale will be dealt with as a Transfer of Going Concern (TOGC).
PROPOSAL We are instructed to seek offers in excess of 925,000 (Nine Hundred and Twenty Five Thousand Pounds) subject to contract and exclusive of VAT for our client s freehold interest. A purchase at this level would reflect an attractive net initial yield of 6.80% assuming purchaser s costs of 5.66%. If you require any further information or wish to arrange an inspection please contact: Nicholas Roberts 020 7911 2178 nick.roberts@gva.co.uk Alex Grindrod 020 7911 2297 alex.grindrod@gva.co.uk www.gva.co.uk/12381 65 Gresham Street, London EC2V 7NQ GVA is the trading name of GVA Grimley Ltd an Apleona company. 2017 GVA. GVA hereby gives notice that the information provided (either for itself, for any joint agents or for the vendors lessors of this property whose agent GVA is) in this brochure is provided on the following conditions: (1) The particulars are set out as a general outline only, for the guidance of intending purchasers and/or lessees and do not constitute an offer or contract, or part of an offer or contract. (2) All descriptions, dimensions and references to this property s condition and any necessary permission for use and occupation, and any other relevant details, are given in good faith and are believed to be correct. However, any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves of their correctness by inspection or otherwise. (3) No person in the employment of GVA, or any joint agents, has any authority to make or give any representation or warranty whatsoever in relation to the property or properties in this brochure. (4) All prices quoted are exclusive of VAT. (5) GVA shall have no liability whatsoever in relation to any documents contained within the brochure or any elements of the brochure which were prepared solely by third parties, and not by GVA. GVA: October 2017 Design CommandD www.commandhq.co.uk