singer vielle sales.com

Long secure income Restaurant & Drive -Thru

Let to McDonald’s – SF £828 million

17 years unexpired lease term, no breaks

Highly prominent & busy roadside location

£2,183,000, subject to contract 5.0% net initial yield www.singerviellesales.com

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Orpington is located in the Greater London conurbation within the London The property is situated fronting the busy arterial road the A224 Sevenoaks Way Borough of Bromley, approximately 25 km (15.5 miles) south-east of central at the junction of Broomwood Road. The A224 forms the principal route from the London and 10 km (6 miles) south-east of Bromley town centre. town to the A20 dual carriageway, which lies approximately 7 km (4.3 miles) to the north east of the subject property. The A20 forms a major arterial route from Orpington benefits good road communications being located 7 km (4 miles) from Junction 4 of the M25, which provides access to the national motorway Central London to the south aast and the Channel Ports via the M20. It also network as well as the M20 and M26, which provide links to Kent and the connects Central London to Junction 3 of the M25 motorway, which is situated 8 Channel Ports. km (5 miles) east of Orpington.

A number of National Rail Stations serve the Orpington area, linking Central The property is in an established location surrounded by a blend of residential London with other locations in the commuter belt, along with destinations housing and commercial uses. across Kent and the Channel Ports. Rail services from Orpington Station itself Sevenoaks Way and Cray Avenue form one of the largest concentrations of retail provide access to Central London in less than 30 minutes and serve multiple warehousing in the southern Greater London area serving a large catchment. The stations including Cannon Street Charing Cross, Victoria and St Pancras subject property is situated in a central position to the prime out of town retail International. Services from St Mary Cray station, provide direct access to provision situated on Sevenoaks Way and Cray Avenue, which is summarised London Victoria in under 30 minutes as well as St Pancras International. below:

Given Orpington’s proximity to the M25, Gatwick Airport is easily accessible Less than a quarter of a mile to the south of the subject property is a solus being 50 km (31.5 miles) to the south. Homebase unit (3,288 sq m / 35,400 sq ft) and just beyond is Orpington Retail The catchment population of Orpington and the wider Bromley area is Park and adjoining that is a Howdens Joinery. generally considered to be relatively affluent with a high home ownership rate The Springvale Retail Park (9,290 sq m / 100,000 sq ft) is situated approximately and little social housing. (Source: Office for National Statistics). 160 metres to the south of the subject property, and is occupied by Currys, Furniture Village, Wren Kitchens & Bathrooms, Argos, Harveys, Bensons for Beds, Paul Simon, PC World and Halfords. The most substantial development in the general location is the Nugent Shopping

Park (10,683 sq m / 115,000 sq ft) situated half a mile south of the subject property. The scheme is occupied by retailers including Bathstore, Card Factory, Carphone Warehouse, Clarks, Clinton Cards, Cotswold Outdoor, Debenhams, EE, Game, Laura Ashley, Mamas & Papas, Maplin, Marks & Spencer, Metro Bank, Mothercare, Next, Pets at Home, Vision Express, Waterstones and WH Smith.

On the opposite side to Nugent Shopping Park is a TK Maxx, Magnet, Carpet Giant and Carpet Right.

Description Accommodation The property occupies a large corner site comprising a substantial two -storey We have been advised that the property provides the following floor areas: building arranged on ground and first floor which underwent significant Ground Floor 371 sq m 3,993 sq ft refurbishment in 2011 to provide a modern McDonald's restaurant and drive – First Floor 203 sq m 2,185 sq ft thru. Total 574 sq m 6,178 sq ft There is on-site parking for 29 cars and the configuration of the site provides for a one-way system for vehicles entering and leaving the restaurant from

Broomwood Road. Site

The McDonald’s brand is symbolised by its golden arches logo on the exterior We estimate the site area to be approximately 0.20 hectares (0.51 acres ). of the property whilst internally the property has been fitted out by the tenant to a very high standard in the style of their latest corporate image. The restaurant operates 7 days a week from 6 o’clock in the morning until 11 o’clock at night. Planning The subject property benefits from planning permission for restaurant with takeaway and drive-through facility (Class A3/A5).

Tenancy Tenure The property is let to McDonald’s Restaurants Limited (Co. No. 1002769) on a Freehold . Full Repairing and Insuring lease for a term of 20 years from and including 9th January 2012, expiring on 8th January 2032.

Therefore, there are approximately 17 years unexpired lease term with no breaks. Covenant The tenant, McDonald’s Restaurants Limited (Co. No.1002769), has The current passing rent is £105,000 per annum (£182.92 per sq m / £17.00 reported the following figures; per sq ft). The lease provides for 5 yearly upward only rent reviews subject to a fixed increase at the first rent review on 9th January 2017 to £115,500 per 31st Dec 2013 31st Dec 2012 annum. Turnover £1,497,473,000 £1,317,594,000 Pre -Tax Profits £ 244,885,000 £ 202,214,000 The freeholder will “top-up” the rent on completion to £115,500 per annum Shareholders’ Funds £ 828,013,000 £ 667,941,000 (£201.22 per sq m / £18.70 per sq ft) which will be by way of an adjustment to the purchase price. McDonald’s is the largest chain of quick service restaurants in the world. It

serves tens of millions of customers each day.

The immediate parent undertaking is McDonald’s Real Estate LLP and the ultimate controlling party is McDonald’s Corporation Inc.

There are approximately 1,200 McDonald’s restaurants to be found the length and breadth of the United Kingdom, be it high streets, shopping centres, retail parks, roadside locations, leisure centres, airport and railway terminals and motorway service stations.

McDonald’s is looking to open 400 more new drive-thru’s over the next 10 years and has a superior covenant strength to its competitor’s.

Value Added Tax

The property has been elected for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

Market Commentary

An investor will receive the equivalent of £115,500 per annum on completion equating to £201.22 per sq m / £18.70 per sq ft w hich compared with other out of town leisure rents in the immediate vicinity is low;

At Nugent Shopping Park we understand Costa Coffee occupy a 120.77 sq m (1,300 sq ft) unit on a 15 year lease currently paying £60,000 per annum (£496.81 per sq m / £46.15 per sq ft). In addition, Nando’s occupies a 277.31 sq m (2,985 sq ft) unit on a 20 year lease currently paying £100,000 per annum (£360.60 per sq m / £33.50 per sq ft).

Investment Considerations

1.1.1. An opportunity to acquire a freehold McDonald’s restaurant and drive-drive ---thruthru investment in Greater London; Proposal

2.2.2. Highly prominent site fronting an extremely busy arterialarterial road in an established

residential and commercial location; Our client is seeking offers of £2,183,000 (Two Million, One Hundred and Eighty Three Thousand Pounds), subject to

contract, reflecting a net initial yield of 5.0%.5.0% 3.3.3. Undoubted income ––– let to McDonald’s Restaurants Limited --- Shareholders’ 5.0% Funds £828 million;

4.4.4. Long unexpired lease term of 17 years with no breaks;

5.5.5. A purchase at the asking price reflects an attractiveattractive net initial yield.

Singer Vielle Street Vendors Solicitor 94-96 Wigmore Street Thrings LLP London W1U 3RF Kinnaird House, 1 Pall Mall East,

Tel: +44 (0) 207 935 7200 London SW1Y 5AU

Neil Singer [email protected] Tel: 020 7766 5635 Dale Henry [email protected] Richard Fidler [email protected] Richard Wolfryd [email protected] SUBJECT TO CONTRACT & EXCLUSIVE OF VAT Misrepresentation Act 1967 Singer Vielle for themselves and for the Vendors or Lessors of this property whose Agents they are give notice that: 1. The particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract

2. 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 purchasers or tenants 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 Singer Vielle has any authority to make or give any representation or warranty whatever in relation to this property. 4. All maps are for identification purposes only and should not be relied upon for accuracy. 5. Unless otherwise stated, all prices and rentals quoted are exclusive of Value Added Tax to which they may be subject.

Finance Act 1989 Unless otherwise stated, all prices and rents are quoted exclusive of VAT.

Property Misdescriptions Act 1991 These details are believed to be correct at the time of compilation, but may be subject to subsequent amendment.

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