the Bridge Tap
32-34 Borough High Street London • SE1 1XU
“Virtual Freehold public house investment for sale, let to the Stonegate Pub Company, the UK’s largest pub company.”
Licensed Leisure www.savills.co.uk/licensedleisure Investment Summary
++ Virtual freehold public house investment
++ Prime location on Borough High Street
++ Close to Borough Market, The Shard, Guy’s Hospital and Southwark Cathedral
++ Let to the Stonegate Pub Company, the UK’s largest pub company with an estate of around 4,500 sites
++ Current rent of £215,000 per annum
++ Lease expiry December 2040 giving an unexpired term of 20 years
++ We are seeking offers in excess of £4,500,000 (4.50% NIY)
++ Annual rental uplifts in line with RPI subject to a collar and cap of 1% and 4% respectively
++ Business unaffected by sale
the Bridge Tap 32-34 Borough High Street, London SE1 1XU THE sHARD
guy’s hospital
Kings College University Borough High Street
London Bridge Station Bridge Tap City Hall More London Borough Market
Southwark Cathedral
Hay’s Galleria
HMS Belfast london bridge
the Bridge Tap 32-34 Borough High Street, London SE1 1XU London Bridge
Location
Located in the heart of Southwark fronting Borough High Street in one of London’s most vibrant areas having benefited from significant investment and regeneration in recent years. The area is home to London’s tallest building, The Shard, which was completed in 2012 and has benefited from the recent £1bn redevelopment of London Bridge Station which has further enhanced its reputation as one of the capital’s major transport terminals with in excess of 61m passengers using the station in 2019.
The Bridge Tap occupies a prime position fronting Borough High Street, an established leisure and tourist destination in Southwark known for is excellent mix of bars, restaurants and tourist attractions.
Nearby attractions include Borough Market, Southwark Cathedral, Tower Bridge, HMS Belfast, The Shard and The London Bridge Experience. The area is also home to the world renowned Kings College London University with over 31,000 students.
DESCRIPTION
The Bridge Tap is arranged over the ground and basement of a five storey building with brick elevations beneath a slate mansard roof.
the Bridge Tap 32-34 Borough High Street, London SE1 1XU
Experian Goad Plan Created: 07/01/2020 50 metres Created By: Savills
For more information on our products and services: Copyright and confidentiality Experian, 2019. © Crown copyright and database www.experian.co.uk/goad | [email protected] | 0845 601 6011 rights 2019. OS 100019885 FLOOR PLAN Bridge Tap, 32-34 Borough High Street, London, SE1 1XU
ACCOMMODATION Basement
WC GIA 255.26 sqm (2,747.60 sqft) Staff Office Store WC Ground floor Plant Plant
Store The ground floor trading area is fitted as a modern bar with a bar servery to the rear and a Store variety of loose tables, chairs and bench seating for approximately 140 customers. Ancillary accommodation comprises a disabled toilet to the rear.
Basement Store Customer toilets are provided along with a trade kitchen, managers office, staff room, cellar Store WC WC and stores.
Kitchen External Externally there is seating fronting Borough High Street for approximately 20 customers permitted by way of planning permission and is outside of the long leasehold demise. Basement
Approximate Floor Areas Store
The property has the following approximate gross internal areas: FLOOR PLAN Bridge Tap, 32-34 Borough High Street, Dwg No - WZ026458 London, SE1 1XU Level Sq M SqPresentation Ft Scale 1:100 @A3 Ground Floor
Ground 226.3 2,436 GIA 226.28 sqm (2,435.66 sqft)
Basement 255.3 2,748 WC
Total 481.6 5,184116-118 Westminster Buildings, Walsgrave Road, Note : Scale from dimensions only. All dimensions Coventry, CV2 4ED 024 76 233144 should be double checked on site.
Trade Area Planning
Store Our initial enquiries of the local authority have revealed that the property is Grade II Listed and is located within the Borough High Street Conservation Area.
Ground Floor
Dwg No - WZ026458 EPC Presentation Scale 1:100 @A3
E-106
Note : Scale from dimensions only. All dimensions 116-118 Westminster Buildings, Walsgrave Road, should be double checked on site. Coventry, CV2 4ED 024 76 233144 the Bridge Tap 32-34 Borough High Street, London SE1 1XU Covenant
The property is let to the Stongate Pub Company, the UK’s largest pub company. Stonegate currently own around 4,500 outlets having completed the acquisition of Ei Groups 4,000 pubs in March 2020.
In their latest accounts to 29 September 2019, which were completed prior to the acquisition of Ei Group, the company generated turnover of £853 million and adjusted EBITDA of £134 million. In the financial year to 29 September 2019 Ei Group generated turnover of £724 million and EBITDA of £276 million.
Stonegate, who are backed by private equity firm TDR Capital, were formed in 2010 through the acquisition of 333 pubs from Mitchells & Butlers and has since grown through strategic acquisition buying other established groups such as Town & City, Bramwell, Intertain (Walkabout), Sports Bar & Grill, Fever Bars and Be at One.
Stonegate Pub Company Ei Group
Year 29/09/2019 30/09/2018 30/09/2019 30/09/2018
Turnover £853m £774m £724m £695m
Adjusted EBITDA £134m £115m £276m £287m
the Bridge Tap 32-34 Borough High Street, London SE1 1XU Tenure and Tenancy
The ground and basement is held long leasehold for a term of 999 years from 31 October 2000 at a peppercorn rent.
The ground and basement is let on a lease to the Stonegate Pub Company Limited (Company Number FC029833) expiring 24 December 2040 at a current rent of £215,000 per annum subject to annual rental increases from 24 December 2021 in line with the RPI index, subject to a collar and cap of 1% and 4% per annum respectively.
Comparable Transactions
Yield Property Tenant Price Date Reviews (NIY)
Whitecross Tap, Stonegate Pub Five yearly open market £2.50m 3.4% Oct-19 EC1 Company Limited reviews.
Londesborough, 5 yearly open market Ei Group Plc £1.65m 4.0% Aug-19 N16 reviews.
5 yearly RPI linked rent Bird of Smith- Freshwater Pub £3.90m 3.6% Apr-19 reviews with a collar of 0% field, EC1 Company and cap of 4%.
Crutched Friar, Stonegate Pub Five yearly open market £2.95m 3.8% Dec-18 EC3 Company Limited reviews.
Temperance, Stonegate Pub Five yearly open market £2.50m 4.5% Dec-18 SW6 Company Limited reviews.
the Bridge Tap 32-34 Borough High Street, London SE1 1XU VAT
It is envisaged that the property will be sold as a TOGC so the transaction should therefore be exempt from VAT.
Terms
We are instructed to invite offers in excess of £4,500,000 (4.50% NIY) assuming purchasers costs of 6.57%.
The business will continue to trade unaffected from the premises during the marketing of the property and post completion of the sale. viewing and Contacts
All viewings must be made by prior appointment and under no circumstances should any direct approach be made to any of the occupational tenants staff. For further information and all viewing requests please contact the sole selling agents Savills. Stuart Stares +44 (0) 207 299 3088 [email protected]
Paul Breen +44 (0) 207 877 4555 [email protected]
Published for the purposes of identification only and although believed to be correct its accuracy is not guaranteed. Reproduced from the Ordnance Survey Map with the permission of the ControllerOrdnance of SurveyH.M. © Crown Copyright 2019. All Rights Reserved. Licence number 100022432 Stationery Office © Crown copyright licence number 100024244 Savills (L&P) Limited. Plotted Scale - 1:750. Paper Size - A4 Savills, their clients and any joint agents give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. October 2020