93-99 QUEENSWAY ✦ 1-9 DUKE’S COURT W2

SOLD 93-99 QUEENSWAY ✦ 1-9 DUKE’S COURT 93-99 QUEENSWAY ✦ 1-9 DUKE’S COURT LONDON W2 LONDON W2

INVESTMENT SUMMARY ✦ Prominent Freehold corner site ✦ Situated on the prime Queensway pitch adjacent to station ✦ Substantial ongoing investment and regeneration of the immediate surrounding area ✦ Retail, leisure and one residential unit totalling 9,038 sq ft (839.7 sq m) arranged over basement, ground and first floors, remaining residential uppers (eight flats) are sold off on long leases ✦ Fully let to excellent covenants - Barclays Bank and Spirit Pub Company ✦ Pub lease guaranteed by 5A1 covenant Spirit Group Parent Ltd, a wholly owned subsidiary of Green King Plc ✦ WAULT of 21.5 years to lease expiries (no breaks) ✦ Total passing rent of £555,310 per annum ✦ Lapsed 2016 Planning Consent for three additional flats provides an opportunity to add massing and value ✦ Residential uppers (sold off) comprise nine flats of which six have under 65 years remaining ✦ Opportunity to realise lease extension premiums on the SOLD majority of the residential units ✦ No VAT applicable ✦ Offers are invited in excess of £10,950,000 (Ten Million Nine Hundred and Fifty Thousand Pounds), subject to contract. Pricing at this level reflects a Net Initial Yield of 4.75% assuming full purchaser’s costs of 6.70%. 93-99 QUEENSWAY ✦ 1-9 DUKE’S COURT 93-99 QUEENSWAY ✦ 1-9 DUKE’S COURT LONDON W2 LONDON W2

THE CITY

FITZROVIA ST. JAMES’S

MAYFAIR

THE SERPENTINE

HYDE PARK

PADDINGTON

SOLDBAYSWATER QUEENSWAY 93-99 QUEENSWAY ✦ 1-9 DUKE’S COURT 93-99 QUEENSWAY ✦ 1-9 DUKE’S COURT LONDON W2 LONDON W2

LOCATION & SITUATION

The property is located in Queensway in . Meyer Bergman that includes new retail, residential HA M M IL St A TO Queensway is bordered by (west), (south), and leisure amenities. Significant stakeholders investing ID J o A N h V TER n A ’s / Marylebone (east) and (north). in the area’s regeneration project also include GMS W L RA E e oo L D A A C ac d Estates and Bourne Capital. R Pl A The location is internationally recognised as one of A N 5 E H N A rn O i o R gh Str D R rc O K S U London’s most desirable and affluent neighbourhoods, Queensway is a desirable residential location due to its SA L R Abe e LT P O C e R H IR t A A D M Paddington A D C characterised as a premier retail, residential and leisure proximity to London’s open green spaces of Hyde Park N R V A M G B A MAR C EN s R A R h E L Recreation U O destination, home to fashionable boutiques, restaurants, and to the south. m S V C ROAD E E o E V E RN K U re NT E UE R Ground N markets and bars. Tourism is a significant driver of the N E R B R A Maida Vale E N Lord’s Cricket The building occupies a prominentE corner position on o

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Forest Harold Gate Goodmayes Wood Stratford

Hayes & Bond Maryland Manor Seven Chadwell Gidea Brentwood Taplow Slough Iver Harlington Broadway Street FarringdonWhitechapel Park Kings Heath Park

Custom Maidenhead Burnham Langley West Liverpool Abbey House Drayton Ealing Main Line Court Road Street Wood

Heathrow Canary

Airport PADDINGTON Wharf Surface line Tunnel Portal (tunnel entrance and exit)

CONNECTIVITY Queensway’s transport communications are excellent, with Bayswater London Underground station (District & Circle lines) being situated immediately adjacent to the property. Additional nearby stations include Queensway (Central line), (Central, District & Circle lines) and Paddington (Bakerloo, District & Circle, & City lines). Paddington provides access to the UK’s wider national rail services and express rail services to Heathrow. Communications will be further improved when the Elizabeth line (Crossrail) opens at the station.

BAYSWATER District & Circle Lines 1 MIN

QUEENSWAY Central Line 2 MINS

NOTTING HILL GATE Central, District & Circle Lines 9 MINS

PADDINGTON Bakerloo, Hammersmith & City, Circle & District Lines National Rail SOLD Elizabeth Line (Crossrail) 14 MINS

Approximate walking times.

CGI of Paddington Station, Elizabeth line. 93-99 QUEENSWAY ✦ 1-9 DUKE’S COURT 93-99 QUEENSWAY ✦ 1-9 DUKE’S COURT LONDON W2 LONDON W2

LOCAL DEVELOPMENTS

Queensway

The Queensway Estate

Bayswater

103-131 Queensway

Queensway

Whiteleys Shopping Centre

114-150 Queensway

Source: Design and Access Statement for 114-150 Queensway (Queensway Parade) Whiteleys Shopping Centre Streetscape – Meyer Bergman Together, the substantial Whiteleys is undergoing a £1 investment from Queensway’s billion regeneration to transform key stakeholders and Queensway into the ‘Covent City Council Garden of the West’. The mixed- will enhance the area’s use scheme will enhance the public realm to deliver area with over 150 new homes, a semi-pedestrianised a cinema, boutique hotel, and environment to Queensway. retail and leisure offerings. Meyer Bergman’s additional scheme opposite (114-150 Queensway) seeks to provide further retail and restaurant offerings along with residential. SOLD

103-131 Queensway The Queensway Estate – GMS Estates – Bourne Capital Planning pending for £30 million masterplan The multi-million pound investment to restore the 1.4 acre site and the wider programme includes 65 luxury Queensway area to its ‘former glory’. apartments, over 45,000 sq ft of offices The mixed-use scheme includes retailing, and major public realm improvements. residential and public realm works. Queensway Walk will provide over 135,000 sq ft of retail, restaurant and leisure space. 93-99 QUEENSWAY ✦ 1-9 DUKE’S COURT 93-99 QUEENSWAY ✦ 1-9 DUKE’S COURT LONDON W2 LONDON W2

The property occupies a prominent corner site and comprises ACCOMMODATION SOLDThe property provides the following areas as measured by Lane & Frankham. a five-storey retail, leisure and residential building. Unit Floor Use Sq Ft Sq M ITZA Sq Ft First Offices 1,359 126.3 - Ground Banking Hall 2,529 234.9 1,768 93-97 Queensway RETAIL RESIDENTIAL Basement Storage 1,708 158.7 - The 5,596 sq ft retail unit (93-97 Queensway) The property also includes nine flats, known as Sub-Total 5,596 519.9 - is arranged as a ground floor banking hall, 1-9 Duke’s Court, accessed separately from Moscow Ground Pub / Restaurant 1,045 97.1 - with first floor offices and basement storage. Road, which are arranged over first to third floors. Flat 2, totalling 1,044 sq ft, is let on a co-terminus 99 Queensway Basement Storage 1,353 125.7 - lease with the pub. The remaining flats have been PUB Sub-Total 2,398 222.8 - sold off on individual long leasehold interests. First Residential 1,044 97.0 - Flat 2, Duke’s Court The 2,398 sq ft public house (99 Queensway) To the property’s rear is a car park, accessed Sub-Total 1,044 97.0 - is arranged as a ground floor bar / restaurant, from Moscow Road, with space for approximately with basement storage. six cars. TOTAL 9,038 839.7 93-99 QUEENSWAY ✦ 1-9 DUKE’S COURT 93-99 QUEENSWAY ✦ 1-9 DUKE’S COURT LONDON W2 LONDON W2

TENANCY SCHEDULE COVENANTS

Unit Tenant Use Floor(s) Area SQ FT Lease Start Lease Expiry Next Review Rent £PA Rent £PSF Comment (ITZA) / £ZA Barclays Bank is one of the UK’s largest, most 93-97 Queensway Barclays Bank UK Plc Retail First, Ground & Basement 5,596 24 Jun 1965 23 Jun 2028 24 Jun 2021 £357,500 £183.90 Lease Inside the 1954 Act. recognisable, brand names with over 1,600 (1,944) 14 year rent review pattern. branches. Barclays also provides global financial 99 Queensway Spirit Pub Company Pub Ground & Basement 2,398 24 Jun 1965 23 Jun 2064 24 Jun 2028 £167,500 £69.85 Lease Inside the 1954 Act. services in over 50 countries worldwide with in (Managed) Limited Surety from Spirit Group Parent Limited. excess of 130,000 employees. The company has 21 year rent review pattern. a primary listing on the London Stock Exchange Sub-Total 7,994 £525,000 and is a member of the FTSE 100. 1 Individual Residential First - 25SOLD Dec 1984 25 Dec 2173 - Peppercorn -- Barclays is graded low risk by ICC and Dun & 2 Spirit Pub Company Residential First 1,044 24 Jun 1965 23 Jun 2064 24 Jun 2028 £26,000 -- Bradstreet reports a 5A 1 rating. (Managed) Limited 3 Individual Residential Second - 25 Dec 1984 25 Dec 2173 - Peppercorn -- 4 Individual Residential Second - 25 Dec 1984 24 Dec 2083 24 Jun 2050 £150 - Fixed rental uplift to £225 PA. 5 Carrington Estates Inc Residential Second - 25 Dec 1984 24 Dec 2083 24 Jun 2050 £100 - Fixed rental uplift to £150 PA. Spirit Pub Company was acquired by Greene 6 Individual Residential Second - 25 Dec 1984 24 Dec 2083 24 Jun 2050 £100 - Fixed rental uplift to £150 PA. King PLC in 2015 for £774 million, to form the UK’s largest managed pub company. 7 Individual Residential Third - 25 Dec 2013 24 Dec 2138 25 Dec 2038 £550 - Fixed rental uplift to £900 PA. Combined, the groups operate over 3,000 8 Individual Residential Third - 25 Dec 1984 24 Dec 2083 24 Jun 2050 £150 - Fixed rental uplift to £225 PA. public house, restaurants and hotels. Greene 9 Individual Residential Third - 25 Dec 1984 24 Dec 2083 24 Jun 2050 £200 - Fixed rental uplift to £300 PA. King operates brands including Hungry Horse, Fire Escape Barclays Bank UK Plc Fire Escape - - 29 Sep 1989 23 Jun 2028 24 Jun 2023 £1,500 -- Loch Fyne Seafood & Grill and Old English Inns. Car Parking Individual Car Parking - - - - - £1,560 - Licence dated 07 Jul 2004. Green King is listed on the London Stock Sub-Total 1,044 £30,310 Exchange and is a FTSE 250 company. Dun & Bradstreet reports a 5A1 rating for Spirit Group TOTAL 9,038 £555,310 Parent Limited. 93-99 QUEENSWAY ✦ 1-9 DUKE’S COURT 93-99 QUEENSWAY ✦ 1-9 DUKE’S COURT LONDON W2 LONDON W2

DEVELOPMENT OPPORTUNITY

PLANNING The property is situated in the London Borough of Westminster and sits within both the Queensway and Bayswater Conservation Areas. The building is not listed. Planning Permission (15/07000/FULL) was granted in May 2016 for a single storey roof extension, providing three flats (1 x 1 bed, 1 x 2 bed & 1 x3 bed) totalling 2,454 sq ft, all with their own terraces. The BuckleyGrayYeoman designed scheme also includes a new entrance to the residential and façade alterations. The consent has now expired, however the exercise has identified the potential to add extra massing to the building and has established a precedent for future development.

TENURE Freehold.

Proposed Townscape View (CGI)

APARTMENT APARTMENT 2 BED 3 BED

SOLD cylinder

APARTMENT 1 BED

Proposed Massing Model Proposed Fourth Floor Plan

Site outline for indicative purposes only 93-99 QUEENSWAY ✦ 1-9 DUKE’S COURT 93-99 QUEENSWAY ✦ 1-9 DUKE’S COURT LONDON W2 LONDON W2

RETAIL OCCUPATIONAL MARKET INVESTMENT MARKET London’s retail market is one of the world’s most robust, benefitting from wealth, London’s real estate investment market remains robust in a market environment of low occupier demand (both domestic and international), and high levels of consumer interest rates, weakened sterling and a healthy debt market. The market continues to be spending power from both overseas tourists (20 million in 2018) and domestic footfall. characterised by a shortage of available investment product with many investors reluctant London’s ‘local’ retail markets are predominantly supported by domestic consumers, to sell in a market with attractive fundamentals. particularly in affluent residential areas with high disposable incomes. Total West End investment volume during 2018 reached approximately £7.6 billion, which is in Queensway, and neighbouring Notting Hill, is an established London retail sub-market line with 2017’s total and illustrates sustained investor appetite for London’s West End market. benefitting from solid tenant demand and low vacancy rates due to the locations Overseas investors continue to dominate accounting for 65% of transactions in the London’s West ability to appeal to retailers requiring sizeable flagship units and those seeking a End in 2018. The geographic origin of this capital remains diverse, whilst there has been a notable boutique outfit. increase from Asian and Middle Eastern investors, European (including UK buyers) remain very active. The vibrancy and appeal of Queensway has further been enhanced by a number of Strong demand from investors (both domestic and overseas) combined with a limited high end gyms, including Barry’s Bootcamp and BodyWorksWest, providing first-class number of sellers, means long dated income, to secure institutional grade covenants health and fitness offerings to local residents, workers and fitness fanatics, which has continue to be a particularly attractive investment opportunity in the market. driven footfall in the area. Queensway offers a significant discount to other major London retail destinations Date Address Tenant(s) Price NIY both in terms of rents and rateable values. Retail business rates have remained Jun 19 118-120 Wigmore Street, W1 Wigmore Street Kitchens £8,300,000 4.24% static, making the location more affordable and promoting future rental growth Halcyon Interiors in Queensway. Jan 19 Shakespeare’s Head, 29 Great Greene King £17,550,000 3.63% Marlborough Street, Soho, W1 (Spirit Pub Company Date Address Transaction Tenant SOLDRent £ZA Guarantee) Jan 19 86 Queensway, W2 Assignment Forexchange £192 Oct 18 42-46 , Planet Organic £7,000,000 3.49% Notting Hill, W2 Alounak Mar 18 233 Westbourne Grove, W2 OML Sézane £208 Faber Sep 17 107 Queensway, W2 OML Screwfix £200 Apr 18 145 Kensington Church Street, Savills UK £7,380,000 4.00% Kensington, W8 Aug 17 11 Queensway, W2 OML Urban Barista £250 Mar 18 Prince of Wales, 150-151 Drury Greene King £10,450,000 2.52% May 17 21 Queensway, W2 OML Pret a Manger £250 Lane, , WC2

Mar 17 127 Queensway, W2 RR Pret a Manger £205 Feb 18 The Builders Arms, 13 Britten Street, Ei Group £4,370,000 3.22% Chelsea, SW3 Sep 17 137-143 Notting Hill Gate, Pizza Express £5,000,000 3.85% Notting Hill, W11 Leyland Aug 17 The Old Swan, 206 Kensington Greene King £4,500,000 1.82% Church Street, Notting Hill, W8 Mar 17 Grove House, 90 Westbourne Sainsbury’s £12,000,000 4.21% Grove, Notting Hill, W2 King Media Deliberate PR 93-99 QUEENSWAY ✦ 1-9 DUKE’S COURT LONDON W2

FURTHER INFORMATION

VAT The property is not elected for VAT and therefore VAT will not be chargeable on the purchase price.

EPC EPCs are available in the data room.

DATA ROOM Please contact Allsop for access to the data room.

PROPOSAL Offers are invited in excess of £10,950,000 (Ten Million Nine Hundred and Fifty Thousand Pounds), subject to contract. Pricing at this level reflects a Net Initial Yield of 4.75% assuming fullSOLD purchaser’s costs of 6.70%.

CONTACTS

Nick Pemberton Chloe Newton Mark Ibbotson 020 7543 6775 020 7543 6886 020 7543 6879 [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. The market statistics, rental and investments comparables have been supplied by third parties and their accuracy cannot be guaranteed. Design CommandD www.commandHQ.co.uk 07.19