EARL HAIG MEMORIAL, ELDER AVENUE , N8 9TH

LONG INCOME INVESTMENT OPPORTUNITY INVESTMENT SUMMARY

• Crouch End is an affluent commuter suburb, situated in the London Borough of Haringey, 4.5 miles north of .

• Situated on Elder Avenue a quiet street which connects to Broadway Parade, surrounded by residential together with numerous restaurants, pubs, bars, retailers and leisure facilities.

• Attractive brick built detached building arranged over ground and first floors totalling 6,465 sq ft (600.6 sq m).

• Let to Kido Schools UK Limited for a term of 25 years from 16th September 2019, subject to five yearly rent reviews to RPI compounded annually, capped at 3.5% per annum and collared at 1.5% per annum.

• Current rent of £170,000 per annum which equates to £26.30 per sq ft (£283.05 per sq m).

• Future redevelopment potential, subject to necessary consents.

• Freehold.

• The vendor is seeking offers in excess of £3,180,000 (Three Million, One Hundred and Eighty Thousand Pounds) subject to contract, for the benefit of their freehold interest. A purchase at this level would reflect anet initial yield of 5.00% after allowing for purchaser’s costs of 6.8% and a low capital value of £492 per sq ft.

EARL HAIG MEMORIAL, ELDER AVENUE, CROUCH END, LONDON N8 9TH 2 BROADWAY PARADE (A103) VIRGIN ACTIVE

THE QUEENS

EARL HAIG MEMORIAL

ELDER AVENUE

CROUCH END PICTURE HOUSE

BROADWAY PARADE (A103)

EARL HAIG MEMORIAL, ELDER AVENUE, CROUCH END, LONDON N8 9TH 3 SITUATION

The property is situated on Elder Avenue a quiet street which connects to Broadway Parade and Lane (A103), adjacent to the Queens Pub. The surrounding area is largely residential in use with numerous restaurants, pubs, bars, retailers and leisure facilities including Oliver Bonas, Waitrose, Marks & Spencer, Chicken Shop, Crouch End Picture House, Irvin, Virgin Active Health Club.

SUBJECT PROPERTY

LOCATION

Crouch End is an affluent commuter suburb, situated in the London Borough of Haringey, 4.5 miles north of Central London. It is bounded by to the immediate West, to the North and to the South.

Crouch End has excellent road communications with the A1 located 1 mile to the West, providing access to both the North Circular (A406) and M1 Motorway.

Crouch End is in Zone 3 of the TFL network and is served by Highgate London Underground (Northern Line) which is located approximately 1 mile to the West, London Underground (Piccadilly Line) which is located approximately 1.5 mile to the South and Station (Overground) which is located 0.5 miles to the South and provides access to the rest of the TFL network.

EARL HAIG MEMORIAL, ELDER AVENUE, CROUCH END, LONDON N8 9TH 4 DESCRIPTION

Attractive detached building previously built for the use as a British Legion and subsequently used as a public house. The property was recently refurbished and converted to a Nursery/ Preschool at a cost of approximately £700,000. The property is arranged over ground and first floors totalling 6,465 sq ft (600.6 sq m). There is a garden to side of the building providing space for a playground.

ACCOMMODATION

The property provides the following approximate gross internal floor area:

ACCOMMODATION SQ FT SQ M

Ground Floor 5,854 543.8

First Floor 611 56.8

TOTAL 6,465 600.6

TENANCY

The entire property is let to Kido Schools UK Limited on a full repairing and insuring lease for a term of 25 years from 16th September 2019, subject to five yearly rent reviews to RPI

Earl Haig Date: 14/01/2020 13:44 compounded annually, cappedLondon at N8 9TH 3.5% per annum and collared at 1.5% per annum. On the Category: SALES PIPELINE Local Authority: London Borough of Haringey Property Ref: 0060053 Title No: AGL212784 Landlord: H Company 6 Limited Bank Charge: 15th anniversary of the term Tenure:there Freehold will be an upwards only rent review toManaging the Agent greater 1: Max Barney Limited of the Site Area: Managing Agent 2: Max Barney Limited RPI formula or open market rental value. The current rent is £85,000 per annum rising to £170,000 per annum on 16th December 2021 which equates to £26.30 per sq ft (£283.05 per sq m). The vendor will top up the rent to £170,000 per annum.

TENURE

Freehold.

UNIT/FLOOR USE TENANT AREA sq ft BEDROOMS LEASE START RENT REVIEW BREAK OPTION LEASE END Unx TERM (Yrs) PASSING RENT RENT per sq ft COMMENTS Earl Haig Memorial Hall D1 Kido Schools UK Ltd 6,465 0 16/09/2019 16/09/2024 15/09/2044 24 85,000.00 13.15 From 16.12.2021 Annual EARL HAIG MEMORIAL, ELDER AVENUE, CROUCH END, LONDON N8 9TH Rent is £170,000 5 DEVELOPMENT POTENTIAL

The vendor has undertaken a massing study to redevelop the property and increase the massing on the site. The proposed scheme comprises a mixed use building arranged over ground and 4 upper floors providing 19,547 sq ft (1,816.0 sq m) of gross internal area.

Crouch End has an established and thriving residential market, which has flourished in recent years. There is a strong demand from both owner occupiers and investors for good quality residential in the location and the draw of the restaurants, shops and transport links appeal to young professionals. Capital growth in the area has been strong with top values reaching in excess of £900 per sq ft.

Artists impression: for indicative purposes only RESIDENTIAL SALES FLOORPLANS COMPARABLES

Area Cap Val Address Date Price (sq ft) (psf)

Under 5c Eden House, New Road 907 £835,000 £921 Offer

5a Eden House, New Road Aug-20 907 £815,000 £899

5d Eden House, New Road May-20 958 £875,000 £913

Existing Ground Floor plan Existing First Floor plan

EARL HAIG MEMORIAL, ELDER AVENUE, CROUCH END, LONDON N8 9TH 6 INVESTMENT COMPARABLES

Address Tenant Unexpired Lease Term Price Net Initial Yield Date

Bantock Way, Biggleswade Busy Bees Nurseries Ltd 18 years £2,279,000 4.83% Q2 2019

Southdowns Park, Haywards Heath Busy Bees Nurseries Ltd 18 years £2,170,000 4.95% Q1 2019

Springfield Road, Chelmsford Busy Bees Nurseries Ltd 24 years £2,750,000 4.50% Q2 2018

Lower Richmond Road, Richmond Bright Horizons 14.5 years £2,375,000 4.00% Q2 2018

Charlton Road, Charlton, London Busy Bees Nurseries Ltd 20 years £3,705,000 4.75% Q4 2017

COVENANT INFORMATION

Kido Schools and Safari Kid International, founded in 2014, are dedicated to providing the highest quality early years education. Their preschools are designed to be the most engaging and interactive learning spaces in the world with all-weather indoor play areas, art studios and technology corners. The group have now gained a global reputation with their Nursery and Preschools in major cities such as London, Hong Kong, Dubai, Bangalore, Mumbai, Austin and Houston with a total of 28 Preschools worldwide. We understand all of their centres turn cash flow positive within 12 months of opening and have EBITDA margins in excess of 30% across all locations. Their landlords include Blackstone, Sun Hung Kai Properties, Swire Properties, Nakheel, Dubai Properties, Greenland, AEW and The Church of .

EARL HAIG MEMORIAL, ELDER AVENUE, CROUCH END, LONDON N8 9TH 7 CAPITAL ALLOWANCES FURTHER INFORMATION There are no capital allowances available. For further information please do not hesitate to contact:

Ryan Springer Alexis Nicolas VAT  [email protected][email protected] The property has been elected for VAT purposes and therefore VAT will be payable upon the purchase price. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

EPC An EPC has been commissioned and is available upon request. An EPC has been commissioned and is available upon request.

46 James Street London INVESTMENT RATIONALE W1U 1EZ

• Affluent London suburb  020 3667 5050 • Attractive building • Low passing rent of £26.30 per sq ft • Unexpired lease term of approximately 24 years www.springernicolas.co.uk • Five yearly rent reviews to RPI compounded annually, capped at 3.5% per annum and collared at 1.5% per annum • Future redevelopment potential, subject to necessary consents • Low capital value per sq ft

PROPOSAL MISREPRESENTATION ACT 1967

The vendor is seeking offers in excess of £3,180,000 (Three Million, One Messrs Springer Nicolas for themselves and for the vendors or lessors of this property for whom they act, give notice that: Hundred and Eighty Thousand Pounds) subject to contract, for the benefit of (i) these particulars are a general outline only, for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract; their freehold interest. A purchase at this level would reflect a net initial yield of (ii) Messrs Springer Nicolas cannot guarantee the accuracy of any description, dimensions, references to condition, 5.00% after allowing for purchaser’s costs of 6.8% and a low capital value of necessary permissions for use and occupation, and other details contained herein, and prospective purchasers or tenants must not rely on them as statements of fact or representations, and must satisfy themselves as to their £492 per sq ft. accuracy; (iii) no employee of Messrs Springer Nicolas has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property; (iv) rents, prices, premiums and service charge quoted in these particulars may be subject to VAT in addition; and (v) Messrs Springer Nicolas will not be liable, in negligence or otherwise, for any loss arising from the use of these particulars. (vi) the reference to any plant, machinery, equipment, services, fixtures or fittings at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective purchasers/tenants should satisfy themselves as to the fitness of such items for their requirements.

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