East Finchley London, N2 8Au

250 EAST END ROAD EAST FINCHLEY LONDON, N2 8AU

PRIME DAY NURSERY INVESTMENT OPPORTUNITY WITH 15 YEARS UNEXPIRED 250 EAST END ROAD, EAST FINCHLEY, LONDON, N2 8AU

McDonalds HQ

East Finchley Tube

Aerial image taken in 2018. Outline indicative purposes only. PRIME DAY NURSERY INVESTMENT OPPORTUNITY WITH 15 YEARS UNEXPIRED 250 EAST END ROAD, EAST FINCHLEY, LONDON, N2 8AU

INVESTMENT CONSIDERATIONS ■■ Well located Day Nursery Investment in the affluent ■■ Let to the strong covenant of a newly formed UK ■■ 5 yearly rent reviews to the greater of OMRV or annually London neighbourhood of East Finchley company that will be a directly owned subsidiary indexed RPI ■■ Located in close proximity to East Finchley Tube Station of The Learning Experience Corporation ■■ Freehold (Northern Line to City & West End) ■■ USA parent company guarantee from The Learning ■■ We are instructed to seek offers in excess of ■■ Comprehensively refurbished to provide a GIA of Experience Corporation £6,000,000 (Six Million Pounds), subject to contract 11,065 sq ft nursery with an outdoor play area and and exclusive of VAT. An acquisition at this level ■■ Long unexpired lease term of 15 years (no breaks) 5 car parking spaces would provide a net initial yield of 5.28% after ■■ 0.59 acre site ■■ Passing rent of £337,500 per annum reflecting £30.50 psf allowing for purchaser’s costs of 6.63%

PRIME DAY NURSERY INVESTMENT OPPORTUNITY WITH 15 YEARS UNEXPIRED 250 EAST END ROAD, EAST FINCHLEY, LONDON, N2 8AU

LOCATION East Finchley is an affluent suburb of East Finchley benefits from excellent communications with East Finchley Underground station providing a constant service into North West London, located within the central London via the Northern Line. Road communications are London Borough of Barnet approximately 5 Miles also strong with the A1000 linking to Central London (via the A1) in (8 km) north west of Central London. the South and the North Circular and M25 in the north.

A504 EAST EN D D A RO O AD R

K R FINCHLEY H A I P D G A H S O T R R N R O E A A L D G U E C R IR 8 C 9 N 5 6 A 0 4 EAST FINCHLEY A A50 4 E AS T E ND R EEN O TIS GR AD FOR A504

A406

R O

EAST FINCHLEY

A 1 FALL ADON W AY VE NORTHWAY GARDENS A PS O H G IS R B E E A

D H T T

A N O O A R

R 1 T

Y LYTTELTON R HIGHGATE

E O

L PLAYING FIELDS A

H D WOODS

N I

5 A

N E A V 1

S P

O H IS HIGHGATE B

E GOLF CLUB G H T R E A T

N O R T H R O A HAMPSTEAD D GOLF CLUB HAMPSTEAD HEATH EXTENSION

PRIME DAY NURSERY INVESTMENT OPPORTUNITY WITH 15 YEARS UNEXPIRED 250 EAST END ROAD, EAST FINCHLEY, LONDON, N2 8AU

East Finchley was nominated as one of the best places to live in London by The Times in 2019.

FUTURE DEVELOPMENTSITE

SITUATION The property is situated on East End Road (A504) at its junction with Deanery Close in a predominantly residential area. The amenities of East Finchley High Road (A1000) are located within close proximity to the property. East Finchley Underground Station (Northern Line) is a 2 minute walk to the south with numerous regular bus services running across North and Central London available from the East Finchley High Road. Adjacent to the property is Hospitality House which is the HQ of McDonald’s Restaurants.

Outline indicative purposes only. PRIME DAY NURSERY INVESTMENT OPPORTUNITY WITH 15 YEARS UNEXPIRED 250 EAST END ROAD, EAST FINCHLEY, LONDON,Marcham N2 8AU PO Copyright pH+. No implied licence exists. This 102 drawing should not be used to calculate areas for Court the purposes of valuation. Do not scale this drawing. All dimensions to be checked on site by

Viceroy the contractor and such dimensions to be their HIGH responsibility. All work must comply with relevant British Standards and Building Regulations 1to6 PW requirements. Drawing errors and omissions to be ROAD Parade reported to the architect. Viceroy Close Revisions 273 - 15/12/2017 First issue 1 to 25 A 19/03/2018 Revised massing B 15/05/2018 Pre-application issue C 22/06/2018 Revised layout and inclusion of surveyed site trees D 29/06/2018 Revised access layout 11 to 36 E 20/07/2018 Planning issue END ROAD E 19/10/2018 Planning issue

EAST END ROAD

244 LP

252

DEANERY 256 260

CLOSE Surgery

PH Albion Mills DEANERY CLOSE MEWS 3rd Floor 18 East Tenter Street

DAIRY London E1 8DN t: 020 7613 1965 e: [email protected] 3 w: www.phplusarchitects.com

ROAD

13 to 24 1 to 12 HIGH

61 pH+ ADJACENT SITE Chalice Court Project Bobath Centre Site 1 to 12 250 East Road 25 to 36 London N2 8AU

23 to 26 Drawing Proposed Site Plan

Scale at A3 / A1 Date 19 to 22 27 to 30 1:500 / 1:250 Oct 2017

13 to 24 Job Number Drawing No. Rev Stokes Court pH+633 0101-GA E

Drawn by Checked by JG JA/AP Diploma © Crown Copyright, ES 100004106. For identification purposes only. Status 0 10 20 25 m PLANNING Court 31 to 36 54 13 to 18 1 to 54 DESCRIPTION TENURE The property is a Grade II listed former school building dating back Freehold. to the 1840s. The building has been comprehensively refurbished to provide a predominantly single storey day nursery. ACCOMMODATION Vehicular access is from East End Road with a total of 5 car parking The property is set to provide the following Gross Internal Area (GIA): spaces provided. The property is currently being fitted out by the tenant to a high Ground Floor: 970 sq m (10,441 sq ft) standard in The Learning Experience’s Corporate Style and we First Floor: 58 sq m (624 sq ft) understand that close to £2m is being spent. The nursery benefits Total: 1,028 sq m (11,065 sq ft) from an outdoor playground to the south of the building. The nursery is registered for a capacity of 200 children and opening is planned for April 2020. ADJACENT SITE In addition, the property benefits from an electric charging point It is the vendor’s intention to sell the adjoining site at a future date. and bike parking for 14 bikes. It extends to approximately 0.29 acres and lends itself to a number of possible uses including residential, care home etc.

PRIME DAY NURSERY INVESTMENT OPPORTUNITY WITH 15 YEARS UNEXPIRED 250 EAST END ROAD, EAST FINCHLEY, LONDON, N2 8AU

Typical Classroom Typical Classroom SITE AREA The site extends to approximately 0.59 acres (0.24 hectares).

TENANCY The property is let to the newly formed TLE at East Finchley UK Limited on a 15 year lease from 29th October 2019 (no break) at a rent of £337,500 pa. The rent is subject to 5 yearly rent reviews to the greater of OMRV or annually indexed RPI. The reviewed rent will be capped at 110% of the passing rent before review. The lease provides for a USA parent company guarantee from The Learning Experience Corporation. The guarantee will fall away if the UK company can show that net profits are at least 3 times the rent for 3 consecutive years, but not before the end of the 5th year of the lease. The lease is subject to a 9 month rent free period, which will be topped up by the vendor.

PRIME DAY NURSERY INVESTMENT OPPORTUNITY WITH 15 YEARS UNEXPIRED 250 EAST END ROAD, EAST FINCHLEY, LONDON, N2 8AU

CGI Impression CGI Impression

COVENANT INVESTMENT COMPARABLES The Learning Experience Corporation was established in In July 2018, the business was acquired by private equity The following long let nursery investments have been sold recently: Florida in 1980 by the Weissman family and has grown to firm Golden Gate Capital for an undisclosed sum. The operate from over 250 locations across the United States. business believes that the deal will allow for faster growth Address Tenant Unexpired Sale Price NIY Date The business combines child care and early child nursery and allow them to expand internationally. The company Term (years) education for children between the ages of six weeks posted $250 million in revenue for 2016. and six years. Golden Gate Capital is a San Francisco based private Bantock Way, Biggleswade Busy Bees Nurseries Ltd 18 £2,279,000 4.83% Jun-19 The Learning Experience has generated double-digit equity investment firm with over $15 billion of capital annual growth for the past 15 years, making it a clear under management. The fund is structured as an leader in the early childhood education sector. There are evergreen fund with no finite life meaning it does not Southdowns Park, Haywards Heath Busy Bees Nurseries Ltd 18 £2,170,000 4.95% Mar-19 another 154 centres in the pipeline in the US which are have to sell investments within a timeframe. Other due to open in the next few years. businesses they own include Red Lobster, Eddie Bauer Springfield Road, Chelmsford Busy Bees Nurseries Ltd 24 £2,750,000 4.50% Jun-18 and Bob Evans Restaurants. The Learning Experience is now embarking on an expansion into the United Kingdom with East Finchley Further information can be found at Lower Richmond Road, Richmond Bright Horizons 14.5 £2,375,000 4.00% May-18 being one of their first locations. The CEO of TLE, Richard www.thelearningexperience.com Weissman is a director of the UK tenant company and TLE at East Finchley UK Limited is a newly formed company is fully committed to expanding the business in the UK. Charlton Road, Charlton, London Busy Bees Nurseries Ltd 20 £3,705,000 4.75% Dec-17 and therefore has no reported financials. Another nursery is due to open in Greenwich shortly.

PRIME DAY NURSERY INVESTMENT OPPORTUNITY WITH 15 YEARS UNEXPIRED EPC VAT The property has an EPC rating of B, a copy of We understand the property is which is available on the dataroom. not elected for VAT.

AML DATAROOM A successful bidder will be required to provide information to satisfy For access to the Dataroom please use the following link: the AML requirements when Head of Terms are agreed. https://datarooms.allsop.co.uk/register/eastfinchley

PROPOSAL We are instructed to seek offers in excess of £6,000,000 (Six Million Pounds), subject to contract and exclusive of VAT. An acquisition at this level would provide a net initial yield of 5.28% after allowing for purchaser’s costs of 6.63%

For further information or to make arrangements for viewing please contact:

Jonathan Butcher Alex Butler Ronnie Morgan 020 7543 6755 020 7543 6722 020 7543 6808 [email protected] [email protected] [email protected]

allsop.co.uk

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 11.19