| WEST END QUAY W2

REVERSIONARY MIXED-USE INVESTMENT WITHIN THE VIRTUAL FREEHOLD FOR SALE INVESTMENT SUMMARY

• Paddington is a key Zone 1 Central London sub-market; • The area is witnessing large scale redevelopment with striking modern buildings and multinational headquarters; • Impending arrival of (Elizabeth Line) to add to the already vast transport hub of Paddington Station; • Paddington Underground Station is serviced by the Hammersmith and City, the Bakerloo, and the District and Circle lines; • West End Quay is located approximately 400m from the station entrance at the easternmost point of the ; • Paddington Basin has undergone a large scale redevelopment in the last 20 years, which included construction of the subject property in 2002; • The micro-location comprises several high rise office and residential buildings, complimented by a diverse mix of retail and leisure occupiers, as well as St Mary’s Hospital; • Ground floor and basement accommodation held on a virtual freehold; • Long WAULT of 7.67 years with the opportunity to extend further; • 100% let to multiple covenants; • Low passing rent reflects circa£74psf ITZA and £23psf on the retail and leisure income, respectively; • The total current passing rent is £978,750 per annum; • Reversionary Market Rent of £1,068,075 per annum. A40 WESTWAY PADDINGTON CROSSRAIL LANCASTER GATE PADDINGTON BASIN LONDON BRIDGE OXFORD STREET

WESTMINSTER REGENTS PARK THE CITY WEST HYDE PARK PADDINGTON CENTRAL END QUAY MAYFAIR PADDINGTON STATION

Travel by tube, rail or Crossrail - Paddington is one of London’s busiest and best-connected stations. The key interchange on the Elizabeth Line and the main London terminus for Heathrow makes it the first port of call for travellers to the city.

ELIZABETH LINE NATIONAL RAIL HEATHROW LONDON EXPRESS UNDERGROUND PADDINGTON

Paddington has been a focal point of transport in and out of the capital for over 180 years and much of the Grade I listed station remains as it was when first built in 1854 by the renowned industrial revolutionary, Isambard Kingdom Brunel.

Opened in 1801, Paddington Basin comprises the canal running from the Regent’s Canal’s junction with the at south east its terminus. The area has become Paddington is a vibrant Central synonymous with high profile modern London sub-market, located in the London developments and a plethora of global corporates office and headquarter Borough of Westminster. Marylebone, buildings. the West End and Hyde Park are only approximately 10 mins, 20 mins and 6 Over the last 20 years Paddington Basin has seen large scale redevelopment as mins walks away, respectively. part of the wider scheme alongside the creation of a newly formed station entrance in light of Crossrail arriving. All of this has seen a growth in office and residential accommodation resulting in the micro-location becoming popular with retail and leisure operators.

In the spirit of the station’s original architect, Brunel, there have been acclaimed buildings including the M&S HQ, designed by Lord Richard Rogers and the aptly named Brunel Building, as well as several acclaimed, innovatively designed infrastructure projects including The Rolling Bridge and The Fan Bridge. TRANSPORT

Paddington Station is a major intermodal public transport hub and one of the UK’s busiest. It is the interchange for four lines, a National Rail station, including the Heathrow Express as well as being served by several bus routes.

In figures published by Transport for London in 2017, the annual footfall for Paddington Underground and National Rail were 38m and 6.25m, respectively.

It is the 8th busiest of the 166 Underground, Overground and Network Rail stations that make up Zone 1 of London’s public transport network.

The Elizabeth Line (Crossrail I) is due to be operational in Q4 2020 and will vastly improve the communications to and from the station to a range of key London destinations including Bond Street, the City and Canary Wharf.

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B LO Little Venice MF E Warwick Avenue R IE C Sports Centre A LD A N R L O P S A T G D K O R IC D W A W A N N O A T D AR R E S R E E P T U W D C R R N L W A T E T IO IE Puppet L S N E EE N F I P S Y F E TR M C Y T E O T S C O Theatre E . SITUATIONL LL D A L K L M D L E E N B A D B L AL A W A O A Rembrandt O R St. Mary’s R S V Y T B T M H ’S E E LITTLE E E R R Gardens N T Churchyard R E D E E T E A T U R S E T V E R R H D E EN VENICE E A C C R C The property is situated at the easternG end of PaddingtonA Basin where the area links up with A E R L T C U W P R E H D Y L C A S St. David’s O L . Praed Street connects RPaddington F StationC with Edgware Road and is a busyT The Toll House I City of N O Lisson S R E E S Welsh Church P R E London L O E Canal & River Trust Westminster R E Gallery H thoroughfare with several retail and leisureO units as Twell as headquartersET forN JCDecaux.T Waterbus T E College S A D A S TR L T S T R A D R R AP O LL W The Canal EE E E O R R B RT O S T E D H U P T A C Café Theatre W W E A RO OU ARW Stone T The property isD equidistant from Edgware Road and Paddington Station, both of which areE R ICK CRESCENT R D N T R O BO P IN E E Wharf O PLAC L D G TLE RY S A AS A approximately a 5T minute WwalkC away. A A D S E O E M O T AR St. Mary-on- N L . QU N Edgware Road R M S S L ARY’ I E Paddington G B V O C R E U D A Y The A Green E R R It sits adjacentPaddington to a newN Co-op Local and other retailers in the area include HSBC, M&S, KuPP, N EL W I R Rotunda B E F E U Green T T S E M R E O R R L N E A Lockhouse, Pizza Express and the Boathouse. V C B R LYO F C E U WESTWAY NE O A O Battleship ARYLEB M B B T Building H B S A E E D R L A R L W O O R S Edgware Road OW 3 W T RR R HA R E Sheldon O Capital E 4 2 Square Paddington AD Paddington Hilton London T HARROW ROAD MERCHANT House EET Kingdom Kingdom Central H Gardens Metropole STR E EL WESTWAY Street Street Bridge Paddington RMI HAP PADDINGTON Walk SQUARE C T A HARBET ROAD T G R CENTRAL E Dudley A

S 4 Merchant N T Paddington S KINGDOM STREET Sheldon House R E Square PT E Exchange 3 Merchant C Square E Paddington T A S Oxford Street & Marble Arch Kingdom B T Square B R Pergola Marylebone E E L E R Square Brunel L T A Boys’ School Waterside S (seasonal) T N Building Floating R

E House E N E L Novotel 1 1 O R Pocket Park T A TH EDGWARE ROAD G London Kingdom Sheldon 3 WHARF ROAD 5 Merchant H GoBoat D The A Paddington Street Square B Canalside London Square O R R E D Boathouse E C I D A Walk Fan N A O L G O Bridge B P E R LE D E SIN Y R WE BA R O G ON A F D GT M W S I DIN D A T R The Point Rolling AD West End L R B P O C O B Bridge Quay U ’S R P N O Station H E S Paddington Bridge T I EE S S B B R A B R T L N R St. Mary’s S E E E I ’S P D N D    L L D  The Bridge  E R G  A O PRAED STREET A C A E H E N  Bays G  D C  A I S  RO T RF M X R HA . E G H W ST T E L UT EE SE T O SO R S U T U C S S E 2 R S A E E T T AR AC E Eastbourne S QU RR R S TE T ER TT E Terrace ST SE R HE R R RC O A PO C ST. MARY’S E Royal Oak Royal Abi Paddington Dental E e D P Car HOSPITAL G O 10 W R E T Fleming C Frontline D C Eastbourne EE A H A A O R TR Museum R E R R S Club S E S E Terrace E T D W T G L N R E D E E ID A A O A T N ME O R R N L B  A S S N S E O K T T D RF A T ’S EL B B IN E IC E O D P V ON O O W R O W R O E I H ULN U U N T L H R S R R S K T

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N S A B N D P U E E T L O C E S M T R A E E A C E R E E P W R E R A S A T P R W C K 1 E W E Mercure E L S S PEAR TB T London P Sheldon G L LIAN O Norfolk A Paddington C U E Squar R Towers N Paddington Paddington Hotel E ET T E Bear Shop E TR Norfolk e R S 40 R TH R Eastbourne Square A O C W Terrace L The Norfolk E IL O T H N Plaza S R EE C D Pilgrm A R The O N D T Enstar Hotel E N S N O L S D A Shaftesbury C House T R H R P ND IL E AR L E Hotel W E A P I T G O K V O Hilton London C R R X E C E T E H H Paddington S R E S S M Paddington T N E U ER W Hotel Indigo S E S P E London L S C ari's A A S Suv L C Dry P Paddington E T T I Cleaner U E Smith’ D R N O Abbey Court R C S Talbot W A S Westpoint E Bar & Grill P Square M C R R IN Hotel O E C O G N s D N S T A RE D R R A U E U IT E Q T S S M U R E S E W S ST E E S X C P U L O D A L PADDINGTON CENTRAL A G WEST END QUAY C O E R Roseate EN House V E C A London A R S L The C W P Prince E N Brunel M TO ST IF William R L N U C Hotel H TH A Sussex B 5 MINUTE WALK Gardens Stables Hyde Park & Lancaster Gate Hyde Park, Oxford Street & Marble Arch ROAD SWATER MEWS BAY T RDENS E A C E PARK G E L G TR HYD L A O S T R U S E C R C E E U N S H A T T D E E A R R B R O C T E N E T A R P R E A R P L C A R E O C D E H E R ROA T N ATE A BAYSW R ST E

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The subject property comprises 12 retail and leisure units below a large scale residential development, facing onto Praed Street and ‘inward’ to Paddington Basin and Merchant Square.

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I ICE S OFF O E T T I C E P E FE S C N T E E ST PP T E EST D P E T C E T E ES Q

I S E IC O E F T F I O I N U I D ST E S E C P R G O S A F I E R FE T E S P E P N T I C A E O T E P O O T I F S T T T E I F ES SO Y O E I T E T IC S F F O S O T E O S C S T E FE E T IC F F O T P O E E T S E S E E E T I E S C E E C S S O E T T E E E S E ICES IC ST E T S NORTH P Tenancies and Accommodation

The property comprises some 29,675 sq ft and is fully let at a combined rent of £978,750 per annum. The commercial income is 100% multiple and the tenancies have an attractive Weighted Average Unexpired Term (WAULT) to expiry of 7.67 years. Superdrug has started negotiations to renew their lease. Further information available upon request.

ITZA Total Area Next Passing Rent Passing Rent Market Rent Market Rent Address Tenant Lease Start Break Lease Expiry (Sq Ft) (Sq Ft) Rent Review (£ pa) (psf ITZA) (£ pa) (psf ITZA)

Unit 1 Brew Dog Bar n/a 6,668 05/04/2011 05/04/2021 04/04/2036 £113,748 £22.42 £128,775 £25.00

Unit 2 Headmasters Hairdressers 940 1,716 18/02/2018 18/02/2023 17/02/2028 £58,000 £68.04 £68,200 £80.00

Unit 3 Carphone Warehouse 791 942 25/05/2017 24/05/2020 24/05/2022 £51,800 £70.01 £59,200 £80.00

Unit 4 & 5 Superdrug Health & Beauty 2,024 3,631 25/12/2004 24/12/2019 £149,000 £72.19 £165,190 £80.00

Unit 6 Post Office 1,339 2,051 30/07/2007 30/07/2017 29/07/2022 £95,500 £69.90 £109,800 £80.00

Unit 7 Flight Centre 394 409 03/02/2004 04/07/2024 £29,000 £79.67 £29,100 £80.00

Hamptons International Estate Unit 8 593 773 15/01/2020 15/01/2025 14/01/2025 14/01/2030 £46,800 £79.89 £46,900 £80.00 Agents

Unit 9 & 10A Tesco Express 2,123 4,342 28/11/2003 28/11/2025 28/11/2030 27/11/2035 £162,000 £79.84 £162,300 £80.00

Unit 10 William Hill 1,187 1,990 26/04/2006 25/04/2021 £81,000 £70.84 £91,300 £80.00

Hope Montessori Nursery Unit 11 & 11A 1,080 1,737 27/02/2017 27/02/2022 26/02/2032 £65,000 £72.18 £72,000 £80.00 School

Unit 12 Fraser & Co Estate Agents n/a 2,773 28/10/2016 27/10/2021 27/10/2026 £65,900 £23.76 £69,300 £25.00

Unit 13 F45 n/a 2,643 22/06/2017 22/06/2022 22/06/2022 21/06/2027 £60,000 £22.70 £66,100 £25.00

Car Parking Space Anita Romer 01/012016 £1,002 £1,002 R1

TOTAL 29,675 £978,750 ££1,068,075 LOCAL DEVELOPMENT “Extensive development pipeline driving rental growth”.

As one of London’s key Opportunity Areas, Paddington is 5. PADDINGTON TRIANGLE 7. PADDINGTON GARDENS now the largest and most significant regeneration project in DESCRIPTION 235,000 sq ft Office DESCRIPTION 335 apartments / the City of Westminster, spanning approximately 80 acres. & Retail 200,000 sq ft office, Already benefitting from the development of over 2 million retail & leisure USE Mixed sq ft of high-quality commercial space and substantial USE Mixed investment from the local ownership base such as British STATUS Consented but seeking alternative consent STATUS Construction Land, there is another 1.3 million sq ft in the pipeline. commenced EXPECTED 2022 COMPLETION DATE EXPECTED Q4 2019 COMPLETION DATE DEVELOPER(S) Crossrail 1. THE BRUNEL BUILDING DEVELOPER(S) Meritas Real Estate

DESCRIPTION 240,000 sq ft offices / 5,500 sq ft retail 6. 6 MERCHANT SQUARE 8. PADDINGTON SQUARE USE Mixed DESCRIPTION 119 Apartments/ 5,400 DESCRIPTION 360,000 sq ft Offices STATUS Contruction commenced sq ft retail 75,220 sq ft Retail Restaurant Space EXPECTED 2019 USE Mixed COMPLETION DATE USE Mixed STATUS Consented DEVELOPER(S) Derwent London STATUS Consented EXPECTED TBC EXPECTED COMPLETION DATE 2022 COMPLETION DATE DEVELOPER(S) 2.1 MERCHANT SQUARE European Land DEVELOPER(S) Sellar / Great Western DESCRIPTION 222 apartments / 90 Developments room Hotel / Sky Bar

USE Mixed 9. WEST END GATE STATUS Consented DESCRIPTION 891 apartments 28,500 sq EXPECTED TBC ft of commercial COMPLETION DATE

E USE Mixed d DEVELOPER(S) European Land w ar e 9. West End Gate STATUS Contruction commenced R o a R d e m EXPECTED Q2 2020 b ra n d COMPLETION DATE t G a 3. FIVE KINGDOM STREET rd e n s 6. 6 Merchant Square DEVELOPER(S) Berkeley Group DESCRIPTION 210,00 sq ft offices A40

USE Office 7. Paddington Gardens 2. 1 Merchant Square A40 Westbourne Green A40 STATUS Consented but seeking 1. The Brunel Building alternative consent

EXPECTED 2022 sin n Ba COMPLETION DATE ingto Y add E P d w A ar U DEVELOPER(S) British Land e B r R Qy 3. Five Kingdom Street o a a n d s t D o

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E a 4. 2 Merchant Square r 4. 2 MERCHANT SQUARE Paddington e T Station S DESCRIPTION 165,00 sq ft N o C r E 5. Paddington re f Triangle s o c lk e n USE Office t W

STATUS Consented 8. Paddington Square EXPECTED 2020 COMPLETION DATE

DEVELOPER(S) European Land The property benefits from extremely low rental levels when compared to other neighbouring shopping areas, RENTAL GROWTH providing excellent growth opportunities as the microlocation continues to develop and mature.

Distance From Zone A A3 Address Rental Growth Property (psf ITZA) (psf) £85.00 West End Quay, W2 0.00 km £70 £22 Edgware Road (Near M&S), W2 0.28 km £185 £55 £80.00 Paddington Square, W2 0.40 km £250 £150 £75.00 Praed Street, Paddington Station, W2 0.50 km £160 £80 £70.00 Sheldon Square, Paddington Central, W2 0.70 km n/a £50 Baker Street, W1 1.20 km £250 £90 £65.00 psf ITZA Marylebone High Street, W1 1.50 km £400 £100 £60.00 Queensway, W2 1.70 km £200 £75 Westbourne Grove, W11 2.00 km £400 £80 £55.00 Notting Hill Gate, W11 2.30 km £250 £80 £50.00 St John’s Wood High Street, NW8 2.30 km £200 £60 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Year INVESTMENT COMPARABLES

Cap Val Date Address Tenant Tenure Price Yield (psf) Dec-19 230-236 Wesbourne Grove, W11 Joseph FH £13,920,000 n/a £1,926

Sep-19 57 St Johns Wood High St, NW8 Coral Racing FH £4,275,000 3.98% £1,426

Jan-19 35-41 Kings Road, SW3 Pret, Reebok, Itsu +2 FH £41,180,000 3.99% £2,890

Oct-18 23-25 Mortimer Street, W1 Ligne Roset Westend VFH £2,600,000 4.25% £875

Nov-17 38-42 Kingsway, WC2 Bills & Paul VFH £7,500,000 3.78% £1,337

Jul-17 42-44 Mortimer Street, W1 Leaf Lover LLH £4,750,000 3.86% £852

May-17 90 Westbourne Grove, W2 Sainsbury’s & Residential FH £12,000,000 4.20% £1,031

Jan-17 140 Great Portland St, W1 Boots VFH £5,480,000 3.43% £2,289

Dec-16 96-98 Bishops Bridge Rd, W2 Heal’s FH £3,500,000 3.86% £1,117

Sep-16 100 Queensway, W2 Various VFH £4,150,000 3.10% £1,489

Dec-16 74-76 Chiltern Street, W1 BXR, Fucina, Panetteria VFH £16,000,000 4.48% £858 COVENANTS

Address Tenant % of Income Experian Rating Unit 9 & 10A Tescos Stores Ltd 16.55% Very Low Risk Unit 4 & 5 Superdrug Stores Plc 15.22% Very Low Risk Unit 1 Draft House Holding Ltd 11.62% Above Average Risk Unit 6 Post Office Ltd 9.76% Very Low Risk Unit 10 William Hill Organisation Ltd 8.28% Above Average Risk Unit 12 Quest Estates Ltd 6.73% Low Risk Hope Montessori Nursery Unit 11 & 11A 6.64% Low Risk School Ltd Unit 13 Dreamcorp Fitness Ltd 6.13% Above Average Risk The Headmasters Unit 2 5.93% Very Low Risk Partnerships Ltd The Carphone Warehouse Unit 3 5.29% Below Average Risk Ltd Unit 8 Hamptons Estates Ltd 4.78% Above Average Risk Unit 7 Flight Centre (UK) Ltd 2.96% Very Low Risk

POST OFFICE

Hope Montessori Nursery

TENURE

The property is held in a 990 year long leasehold interest from 1st January 2001 (circa 972 years unexpired) at a peppercorn rent. INVESTMENT RATIONALE

• Key Central London sub-market; • Extensive ongoing development pipeline regenerating the area; • Major transport hub in nearby Paddington Station; • Impending arrival of Crossrail (Elizabeth Line); • 100% multiple covenants; • Strong rental growth prospects; • • Long established tenant mix and positive occupational picture.

VAT

The property has been elected for VAT and it is assumed the sale will be conducted via a Transfer of a Going Concern (TOGC).

EPCs Available upon request.

Proposal Offers are invited for the Virtual Freehold interest in the subject property, subject to contract and exclusive of VAT Contact For further information or to arrange an inspection, please contact:

MISREPRESENTATIONS ACT:

CWM & Partners LLP for themselves and for the vendors/lessors of the property whose agents they are, give notice that: 1. These particulars are set out as a general outline for the guidance of the intended purchasers or lessees, and do not constitute part of, an offer or contract; 2. All descriptions, dimensions, reference to, tenure, tenancies, condition and Ben Simpson Jamie Whitelaw necessary permissions for the use and occupation, and other details are given without responsibility and any intending purchaser or tenant should not rely on them as statements [email protected] 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 CWM & Partners LLP has [email protected] any authority to make or give any representations or warranty in relation to this property. January 2020. 07751 220 817 07738 684 881

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