PRIME RESTAURANT INVESTMENT OPPORTUNITY LET TO CÔTE FOR A FURTHER 19.5 YEARS APPROX. 102-106 HIGH STREET, ESHER, SURREY KT10 9QJ
INVESTMENT CONSIDERATIONS Located in the affluent town of Esher within one of the wealthiest areas of the UK. Situated in the High Street close to Sandown Park Racecourse. Comprising ground floor and basement totalling approximately 3,450 sq ft GIA. 999 years leasehold interest at a ground rent to be agreed. Let on a 25 year lease to Côte Restaurants Limited expiring on the 23rd October 2036. Rent of 120,000 per annum overall reflecting 34.78 psf. There is an outstanding Rent Review from the 24th October 2016 currently in negotiation with a rent review notice served at 135,000 per annum. Offers sought in excess of 2,250,000 (Two Million Two Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a net yield in the region of 5% with a potential reversionary yield of 5.2% net based on our projections over a rent review settlement.
LOCATION SITUATION Esher is a prosperous Surrey town situated 15 miles south west of central London with the focal point of the town being Sandown Park Racecourse. The property is located on the southern end of the High Street virtually opposite a Waitrose super store and some 300 metres from Sandown Park Racecourse. The vicinity is made up of restaurant and retail operators including Boots, NatWest Bank, Costa Coffee, Café Nero, Zizzi s, Pizza Express and The Good Earth. The town benefits from excellent road communications with the A3 Kingston by-pass located approximately one mile to the north of the town whilst junction 10 of the M25 motorway is some 8 miles to the south west. The M25 provides easy access to the M4, M3 and both Heathrow and Gatwick international airports. Esher mainline railway station is situated on the periphery of the town and provides a fast and frequent service to London Waterloo with an approximate journey time of 30 minutes. Esher is situated within the Borough of Elmbridge regarded as one of the wealthiest boroughs in the UK. The town is renowned for its restaurants, gourmet pubs and wine bars.
DESCRIPTION Côte Restaurants occupy the ground floor and part basement of a three storey building incorporating residential flats at first and second floor levels. The unit is well configured and fitted out in Côte s corporate style. MARKET COMMENTARY Prime A3 restaurants rents in Esher are now in the region of 40 per sq ft. In 2013 there were pre lets of 42/50 High Street to Zizzi at 38.07 per sq ft and Café Nero at 35.58 per sq ft. ACCOMMODATION The property provides the following approximate floor areas: TENANT COVENANT FLOOR GIA SQ FT GIA SQ M Ground 2,980 276.9 470 44.0 3,450 320.9 Lower Ground TOTAL APPROX. TENANCY The entire property is let to Côte Restaurants Limited on an FR&I lease for a term of 25 years from 24th October 2011 expiring on the 23rd October 2036. The rent is subject to open market 5 yearly upward only rent reviews with an impending rent review on the 24th October 2016. The passing rent is 120,000 per annum or 34.78 per sq ft overall. The Landlord has served a Rent Review Notice at 135,000 per annum which, if the review was settled at this level, would show 39.13 per sq ft overall. Negotiations are now progressing with the review. Côte Restaurants Limited is a licenced restaurant group and recognised as one of the fastest growing restaurant chains in the UK. The first brasserie opened in August 2007 and the company now operates from 67 sites. The restaurants are focused in the south east but are expanding more nationally. BC Partners, a leading European private equity firm acquired a majority stake in the business in July 2015. Côte Restaurants Limited has a D&B rating of 5A2. The business produced the following headline accounts over the last 3 years. Turnover Pre-tax Profit Net Worth 29/07/13 29/07/14 29/07/15 64,728 84,847 108,052 8,917 11,566 14,122 14,727 25,230 37,897
VAT The property is elected for VAT and we would expect the transaction to be treated as a Transfer of a Going Concern. EPC Rating: D (84) TENURE The property is to be sold on a 999 years long lease at a ground rent to be agreed. PROPOSAL We are instructed to seek offers in excess of 2,250,000 (Two Million Two Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a net yield in the region of 5% with a potential reversionary yield of 5.2% net based on our projections over a rent review settlement. For further information or to arrange an inspection please contact: BOB CATTANEO DD: 020 8481 4744 bob@cattaneo-commercial.co.uk ADAM SOLIMAN DD: 020 8481 4742 adam@cattaneo-commercial.co.uk 19-23 High Street Kingston upon Thames Surrey KT1 1LL MISREPRESENTATION ACT 1967 and PROPERTY MISDESCRIPTIONS ACT 1991 Cattaneo Commercial for themselves and for the vendors of this property whose agents they are give notice that: a) the particulars are set out as general outline only for the guidance of intending purchasers and do not constitute, nor constitute part of, an offer or contract; b) all descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchaser should not rely on them as statements or representations of fact but should satisfy themselves by inspection or otherwise as to the correctness of each of them; c) no person in the employment of Cattaneo Commercial has any authority to make or give any representation or warranty whatever in relation to this property.