Prime Reversionary Freehold Retail Investment Opportunity Chiswick 286 CHISWICK HIGH ROAD, LONDON, W4 1PA
INVESTMENT SUMMARY Freehold Affluent West London suburb 100% prime 5A1 covenant, Telefónica UK Ltd Current passing rent 65,200 ( 143.50 psf ITZA) Reversionary in October 2018 to 70,200 ( 155 psf ITZA) Offers in excess of 1,350,000 subject to contract NET INITIAL YIELD 4.56% REVERSIONARY YIELD 4.91% EQUIVALENT YIELD 4.88%
A1(M) A4010 A413 CHISWICK Chiswick is one of the most attractive and affluent West London suburbs. It is a highly sought after area, with a plentiful supply of 0 upmarket housing and a thriving retail and office market. Chiswick A404 has a long established media industry based around Chiswick Park, one of London s most prestigious office campuses. The area benefits from a large number of successful private and public sector schools. Chiswick is well known for its lively food scene with a score of restaurants including Michelin Starred Hedone and MAIDENHEAD La Trompete. 04(M) SLOUGH 10 miles from Heathow WATFORD HARROW WEMBLEY A40 A312 A1 M1 A406 A40 A10 A1 A503 LONDON A13 A12 A406 M11 WINDSOR A4 CHISWICK KENSINGTON A102 READING A30 TWICKENHAM A205 A214 A282 A33 M329(M) M3 M3 Chiswick Park; one of London s most prestigious office campuses A240 A24 CROYDON BROMLEY Easy access to A232 Central London A20 A3 M20 M3 A331 Chiswick is one of the most accessible areas of West London due to its close proximity to major road, rail and air links. Chiswick lies adjacent to the A4, the principal route heading west out A3 of London, (which becomes the ), this provides direct access to the and Heathrow Airport ten miles to the west. A243 A217 A23 A22 M26 A21 A31 A3 Six miles to the east, the A4 connects directly to Central London. Chiswick also boasts excellent public transport with Turnham Green Underground station providing access to the District and Piccadilly lines with direct services to Piccadilly A24 Circus (28 minutes) and Bank (39 minutes). M23 A26 A
RETAILING IN CHISWICK Chiswick High Road provides an attractive and vibrant shopping destination, populated by upmarket High Street brands along with a premium offer from leisure and lifestyle operators. The prime retailing pitch lies between Turnham Green Terrace to the east and Chiswick Green to the West. The Northern side of the High Road includes retailers such as Waitrose, Marks & Spencer, Boots, Gail s, Gap Kids and Waterstones. The high quality leisure and lifestyle offering includes Soho House, Le Pain Quotidien, Zizzi, Byron, Jackson & Rye and Bill s. Turnham Green Terrace, which links to the Underground Station, comprises an attractive boutique location suited to local occupiers and estate agents. Operators include; Mackens butcher, Mortimer & Bennet Delicatessen, Fouberts Ice Cream Parlour and Marmalade Jewellery. On Turnham Green Terrace there are also national multiple lifestyle chains including; White Stuff, Fat Face, Côte Brasserie and Oliver Bonas.
SITUATION The subject property is situated in a 100% prime retailing location on the North side of Chiswick High Road. It is immediately adjacent to Gail s Bakery and Phase Eight, with other nearby operators including Marks & Spencer, Gap Kids, Three, EE and Starbucks. The unit is also situated within a 5 minute walk from Turnham Green Underground Station. UNDER ALTERATION
DESCRIPTION The subject property comprises a ground floor retail unit with self-contained residential accommodation, accessed via the rear, which has been sold off on a long leasehold basis. The premises include a ground floor retail unit with storage, manager s office and ancillary space to the rear. The shop provides a total of 841 sq ft of ground floor retail accommodation with an ITZA area of 453 units. TENURE The property is held Freehold. TENANCY The ground floor is let in its entirety to Telefónica UK Ltd, trading as O2, for a term of 15 years expiring on the 8th October 2018 (circa 1.75 years unexpired). The current rent is 65,000 per annum exclusive, reflecting 143.50 psf ITZA. The upper floors have been sold off on a long leasehold basis for a term of 125 years from 24th June 2004, currently producing a ground rent of 200 per annum. The residential ground rent increases by 50 every 25 years. COVENANT O2 is the United Kingdom s second largest mobile communications provider. The company was purchased by the Spanish mobile provider Telefónica in 2006 for 18 billion. The parent company agreed to preserve the O2 brand as well as its UK headquarters. The company currently trade out of 438 stores within the UK. Telefónica UK Ltd has a Dun & Bradstreet rating of 5A1, reflecting the lowest risk of business failure with a financial strength based on the company s tangible net worth of 16.7bn. Experian Rating: Low Risk D&B: 5A1 RENTAL VALUE Year Ending 31 December 2015 000 s Year Ending 31 December 2014 000 s We analyse the passing rent to reflect 143.50 psf ITZA. Taking into consideration the most recent comparable evidence as outlined below, the ERV of the ground floor unit is approximately 70,000 per annum ( 154.50 psf ITZA). 5A1 RATING Year Ending 31 December 2013 000 s Turnover 5,485,000 5,535,000 5,609,000 Profit Before Tax 496,000 609,000 489,000 Net Current Assets 4,809,000 4,414,000 3,759,000 REVERSIONARY Address Tenant Transaction Date Zone A (net) Zone A (headline) 242 Chiswick High Road Carphone Warehouse OML Apr-16 153.20 159.86 274 Chiswick High Road Shavata OML Apr-16 152.68 156.59 264-266 Chiswick High Road Mountain Warehouse t/a Zakti OML Dec-15 150.00 156.82
ASSET MANAGEMENT The tenant of the flat has expressed a desire to build into the loft. There would be a potential payment from the tenant to the landlord for consent to facilitate this extension, which our client estimates in the order of 175,000. PLANNING We understand that the property is neither listed nor sits within a conservation area. VAT The sale will be treated as a Transfer of a Going Concern (TOGC). EPC An EPC is available on request. VIEWINGS Inspections are to be arranged strictly by arrangement with the vendor s joint selling agents. MISREPRESENTATION ACT: CWM & Partners LLP & PF RETAIL for themselves and for the vendors/lessors of the property whose agents they are, give notice that: 1. These particulars are set out as a general outline for the guidance of the intended purchasers or lessees, and do not constitute part of, an offer or contract; 2. All descriptions, dimensions, reference to, tenure, tenancies, condition and necessary permissions for the use and occupation, and other details are given without responsibility and any intending purchaser or tenant 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; 3. No person in the employment of CWM & Partners LLP or PF RETAIL has any authority to make or give any representations or warranty in relation to this property. January 2017 PROPOSAL Offers are invited in excess of 1,350,000 (One Million Three Hundred and Fifty Thousand Pounds) subject to contract. Adopting graduated purchaser costs of 6.02% a purchase at this level would reflect the following yield profile: Net Initial Yield: 4.56% Reversionary Yield: 4.91% Equivalent Yield: 4.88%. Further Information Julian Norbury DDL: 020 7494 6924 Mob: 07758 578 664 jpn@cwm.co.uk Jamie Whitelaw DDL: 020 7494 6946 Mob: 07789 243 998 jw@cwm.co.uk Paul Faulkner DDL: 0207 307 5943 Mob: 07971 404767 paul@pfretail.co.uk