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Home , Golborne Road, Notting Hill, Portobello Road, Westbourne Grove

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Grove House

90 , W2 3 Prominently situated on Investment Westbourne Grove in the heart of the affluent and luxury Notting Hill Summary

Prime Notting Hill location.

Mixed use retail and office building benefitting from a large 15 metre frontage to Westbourne Grove.

Freehold.

11,636 sq ft NIA (1,080.9 sq m) arranged over ground and four upper floors.

Numerous asset management, refurbishment and development opportunities exist with full vacant possession obtainable by September 2019.

Current passing rent, including top-up of £539,014 per annum.

Full planning consent to redevelop a new six storey building comprising retail over lower ground and ground floors with 11 luxury residential apartments above.

Excellent market dynamics with a desirable local retail pitch and historically low office supply in the immediate vicinity.

Significant local regeneration projects including the £1bn redevelopment of Shopping Centre, the arrival of at and Frogmore’s earmarked redevelopment of the Notting Hill Estate.

Offers in excess of £11,550,000.

NIY of 4.37%, assuming vendor top-up and purchaser’s costs of 6.70%.

Reversionary yield of 4.68% upon settlement of outstanding Sainsbury’s rent review (assuming Calderbank ERV).

Capital value: £993 psf on existing NIA and £669 psf on the consented areas. REGENT’S PARK PADDINGTON PADDINGTON WHITELEYS THE CITY HYDE PARK CENTRAL GH

WESTBOURNE GROVE 6 7 Grove House

Location

Notting Hill Internationally recognised as a premier retail, residential and leisure destination, Notting Hill is one of ’s most desirable and affluent neighbourhoods, home to an eclectic mix of fashionable boutiques, restaurants, markets and bars attracting a global audience. Visitors are a significant driver of the local economy with market and the helping to attract millions of visitors each year. 8 9 Grove House

Westbourne Grove

Westbourne Grove forms one of the main arterial routes linking Paddington and to the east with Portobello Road in the west. The property occupies a prominent position on the north side of the street close to its junctions with Hereford Road and Monmouth Road benefitting from excellent levels of footfall.

Westbourne Grove is a prime retail location in Notting The eastern end of the street leading to Paddington Hill encompassing a variety of galleries, restaurants, has traditionally been a more secondary retail pitch. high-end fashion houses, national retailers and However, in recent years the area has witnessed desirable boutiques. significant investment as a result of numerous residential The western end of the street which adjoins Portobello led developments, the £5bn regeneration of Paddington Road is particularly renowned for its high end boutiques and the proposals for Whiteleys Shopping Centre. As a and fine dining with occupiers including James Purse, result, a number of high profile multi-national brands Orlebar Brown, 202, Chucs, Sandro, Daylesford & Maje including Heal’s, BoConcept, Planet Organic, Gourmet to name a few. Burger Kitchen and Franco Manca all now have a presence. Additionally, Whiteleys Shopping Centre, just 0.3 miles to the east, boasts tenants including Zara, H&M and Marks & Spencer. The scarcity of local supermarkets ensures strong tenant demand at Grove House with the residential nature of the location driving supermarket demand. However, there is a distinct lack of retail units that could provide adequate floor plates suitable for a supermarket occupier. 10 11 Grove House

Local Developments

Newcombe House, Notting Hill Gate Notting Hill Gate Estate Whiteleys Shopping Centre Proposals for a striking 17-storey building providing up to 46 high-end apartments, A regeneration program is underway to transform Notting Hill Gate into a A £1 bn regeneration has been announced for the Grade II listed department 40,000 sq ft of office space and 30,000 sq ft of new retail space together with a modern transport hub whilst protecting the area’s bohemian heritage. Frogmore, store just to the east of Grove House. Due for completion in 2020, the scheme brand new public realm, have been drawn up by a joint venture between Brockton who owns the 171,000 sq ft estate, is currently improving the façades of the will provide 100 luxury town houses and apartments arranged around a central Capital and U + I. existing buildings whilst applying for planning permission for a comprehensive courtyard with a boutique hotel, cinema and retail. As part of the development, redevelopment to include extending and improving the retail, improved public traffic calming and pedestrianisation is planned, which will vastly improve the realm with wider pavements, decreased traffic and enhanced public art. consumer experience of Westbourne Grove.

Several other smaller schemes have been recently completed enhancing the local area and amenities including:

14-16 Westbourne Grove, London, W2 Queens, Queensway, Bayswater, London, W2 The Imperial, St Stephen’s Gardens, W2 Garden House, Gardens Square, W2 Developer: Alchemi Group Developer: Derwent London Developer: Euroterra Capital Developer: Residential Land Size: 20, 1-3 bedroom apartments above retail Size: 16, 1-3 bedroom apartments above retail Size: 16, 1-3 bedroom apartments Size: 57, 1-2 bedroom apartments Luxury boutique residential development 2 minutes Restoration of an Art Deco cinema creating 16 striking Victorian residential terrace restored to its former Grade II listed property, sensitively restored to create along Westbourne Grove from the Property apartments above retail glory to create 16 luxury apartments 57 apartments overlooking Square, just to the south of the Property 12 13 Grove House

Developments: Office: Retail: Connectivity 1 The Imperial, St Stephen’s Gardens 8 Kingfisher 14 Chucs 20 Maje 2 14-16 Westbourne Grove 9 Misys 15 James Perse 21 Space NK 3 The Queens Building, Queensway 10 Statoil 16 Daylesford 22 Franco Manca 4 Garden House, Kensington Square 11 Vodafone 17 Sandro 23 Byron Burger O U Gardens 12TE Visa 18 Orlebar Brown 24 Gourmet Burger Kitchen P A R A 5 Whiteleys, Queensway R 13 Marks & Spencer 19 202 25 Planet Organic K CIRC L

“Just over half a mile from B 6 Notting Hill Gate Estate R 26 BoConcept O LE A

A N 7 Newcombe House D

Y

ENUE S Paddington Station, a major T

AV R

R

GIN ET EL

London transport hub”

REGENT’S PARK WA ED RW T GW O ICK T ARE RO T E NH

HARR AV A OW AD M ENUE WARWICK MARYLEBONE GREAT

R OA AVENUE PORTLAND ET D E CO STREET TR S U E R

PL T A M

EDGWARE D ROA R LADBROKE GR LITTLE E OA ROAD BO N LE M RY D VENICE MA A 12 Mins A40 GOODGE WE T R Y ST WAY REE ST Y STREET WESTBOURNE L WA RD PARK FO E T 10 Mins AW B CR ES ROYAL OAK MARYLEBONE ON W OV G 8 9 10 11 12 E L

O H E 13 B UC I A G CH E K H 1 T D E E E G S S E D R W T RE T P OA A E R S R S ST RE R T 20 Mins E TO S N R RIDGE E B R E PADDINGTON T WRO ’S DE O R E PRAED A P A T LADBROKE D L P BISHOP G AC OR GROVE EX ET OXFORD AD RE ST E TO 3 SS GE CIRCUS 2 U R 26 S EO

B G 25 24 E

L E OV L E GR RN O R STBOU QU 23 E RO 16 17 WE 22 15 21 G E INVERNES 14 5 E AD EN 4 NT

20 BAYSWATER SW 19 18

S AY T

R

S E MARBLE E NOTTING HILL T P T ERRA ARCH A D OA R T ER R REE YSWAT K ST BA OK L O CE BR 9 Mins A N BAYSWATER E ET LANCASTER RE ST OR GATE EN WE OSV S GR T

C 11 Mins A QUEENSWAY R NOTTING HILL GATE HYDE PARK RI MAYFAIR

A

GE 7 LY IL 6 D D

HOLLAND R CA IC I P PARK VE 14 15 Grove House

Paddington Station is undergoing Paddington, lying half a mile to the east, has been established as one of Central London’s most important office, residential the most significant transformation since and leisure hubs attracting a significant number of it was first built in the 1800s. One of London’s international companies who choose it as their headquarters. gateway stations, the Grade I listed building Centred around its transport hub, Paddington has undergone significant regeneration T with over £5 billion of investment to will be one of the first new Crossrail central date. Major corporate tenants currently include Kingfisher, stations to open in 2018. Misys, Statoil, Vodafone, Visa and Marks & Spencer.

Crossrail

STRATFORDSROMFORD HENFIELD

STANSTED

19 37 51 HAYES & LIVERPOOL HARLINGTON BROADWAY PADDINGTON COURT ROAD STREET

36 16 9 7 6 3 4 8 10 13 CUSTOM HOUSE

MAIDENHEAD 30 BOND FARRINGDON EALING MAIN LINE STREET 17 20 25 29 LUTON HEATHROW GATWICK AIRPORT CANARY WHARF

Heathrow Express: Paddington to Heathrow Journey Time - 15 minutes

Great Western Railway Destination Journey time (minutes) Reading 24 Oxford 56 Bath (Spa) 86 Bristol (Temple Meads) 99 Cardiff 120 Penzance 305 16 17 Grove House

Description

Previously known as ‘The Roxy’, Grove House was used as a cinema until the mid 1960s and currently comprises a prominent mixed use building totalling 11,636 sq ft (1,080.9 sq m) NIA arranged as a prime retail unit over ground and first floors with offices over second to fourth floors. Originally constructed in the early 1970s with a concrete frame structure and rendered brick façade to Westbourne Grove, the building benefits from excellent levels of natural light throughout with a full rear elevation to Hereford Mews. The ground and first floors comprise a self-contained supermarket retail unit totalling 4,997 sq ft (464.2 sq m) NIA benefitting from an internal staircase, goods lift and goods loading access point on Westbourne Grove. The unit is arranged as a trading area over ground floor with staff rooms, office and storage over first floor. 18 19 Grove House

Accessed from a dedicated glazed Specification entrance on Westbourne Grove, the office Passenger Lift accommodation is arranged over second Roof Terraces (3rd & 4th Floors) to fourth floors and totals 6,639 sq ft Raised Floors (616.8 sq m) NIA. The offices benefit from Air Conditioning flexible, open plan and broadly rectangular floorplates with excellent levels of natural Suspended Ceilings light throughout and large terraced areas Telephone Entry System at third and fourth floors. Male, female and disabled WCs and showers 20 21 Grove House 22 23 Grove House

Accommodation Second Floor Plan

Unit Use Gross Internal Areas Net Internal Areas Sq m Sq ft Sq m Sq ft Fourth Office 158.4 1,705 138.3 1,489 Third Office 253.6 2,730 218.0 2,347 Second Office 299.9 3,228 260.4 2,803 First Retail 300.2 3,231 229.0 2,465 Retail 309.6 3,333 235.2 2,532 Zone A 78.6 846 Zone B 84.3 907 Ground Zone C 68.7 739 Zone D 3.6 39 ITZA 138.38 1,489 Total 1,321.7 14,227 1,080.9 11,636

HEREFORD MEWS Ground Floor Plan Fourth Floor Plan

Terrace

TERRACE LIGHT WELL

ATM

Not to scale. Indicative only. WESTBOURNE GROVE 24 25 Grove House

Tenure: Tenancies Freehold Multi-let producing a total topped up rent of £539,014 per annum as per the tenancy schedule below:

Demise Tenant NIA Lease Lease Rent Rent Rent psf Inside Comments Sq Ft Start Expiry Review Per Annum (Zone A) the Act (ITZA) Date Date Date

E Telecom PLAC EE Limited and - 01-Apr-16 31-Mar-21 01-Apr-17 £21,000 - No Mutual rolling break OUTH MONM H Site Hutchison 3G UK option at any time upon E R Limited 6 months' notice. E

F

O M Fixed annual increases

R O

D N of £5,000 per annum.

R M

O O A U Fourth Deliberate PR Limited 1,489 12-Oct-16 28-Sep-19 £90,152 £60.55 No Tenant is paying half D T

S H MEW RD R rent until 11 May 2017. REFO HE O S/C Cap - £11.80 per A D sq ft subject to annual RPI increases.

90 Third King Media 2,347 15-Feb-17 28-Sep-19 £126,500 £53.90 No 9 month’s rent free. Management Limited S/C Cap - £9.50 per sq ft.

WESTBOURNE GROVE Second Vacant 2,803 £151,362 £54.00 12 month rental top-up.

Office 6,639 £368,014 £55.43 Sub-Total

First Sainsbury's 2,465 29-Sep-99 28-Sep-19 28-Sep-14 £150,000 £30.02 Yes 2014 rent review Supermarket Limited (£93.09 outstanding. Calderbank Ground 2,532 ZA) served at £188,750. (1,489)

Retail 4,997 £150,000 £30.02 Not to scale. For identification purposes only. This plan is based upon the Ordnance Survey Map with the sanction of the controller of H.M. Stationery Office. Crown Copyright reserved. Sub-Total College Park School Total 11,636 £539,014 £46.32 26 27 Grove House

Planning

Located within The City of and the Westbourne Grove Conservation Area. Full planning permission was granted in September 2015, to demolish and erect a brand new 21,047 sq ft seven storey building to include the addition of new basement and fifth floors.

Designed by CZWG Architects, the scheme draws from the area’s Art Deco history to create a striking and timeless development comprising a 5,988 sq ft (556.3 sq m) GIA A1 retail unit arranged over lower ground and ground floors with 11 luxury residential units (6 x 1 bed, 1 x 2 bed and 4 x 3 bed units) arranged over first to fifth floors. The design ensures that each apartment has a terrace or winter garden and many of the units have two or more. The permission also provides for extending the building’s frontage out in line with the adjoining buildings, notably increasing the massing.

Further information can be found on Westminster Council’s website with the reference 14/10572/FULL

CGI showing the proposed new façade 28 29 Grove House

HEREFORD MEWS Consented floor areas Proposed Upper and plans Floor Plan (2nd) We set out a schedule of areas for the scheme below:

Floor Use GIA NIA Floor Apartment Bedrooms Area

(Sq M) (Sq Ft) (Sq M) (Sq Ft) (Sq M) (Sq Ft) Lightwell APARTMENT 4 3 BED RISER Fifth Residential 144.5 1,558 127.2 1,369 Fifth 11 3 57.6 620 RISER AOV Fourth Residential 216.3 2,328 177.8 1,914 Fourth 76.2 820 UTILITY Third Residential 275.4 2,964 225.7 2,429 Fifth 10 3 69.6 749 LIFT Second Residential 305.1 3,284 255.7 2,752 Fourth 101.6 1,094 First Residential 321.8 3,464 271.9 2,926 Third 9 1 59.2 637 APARTMENT 5 APARTMENT 6 Ground Residential 54.1 582 - - 8 1 56.8 611 1 BED 1 BED Basement Residential 81.7 879 - - 7 2 109.7 1,181 Residential Sub Total 1,398.9 15,059 1,058.3 11,390 Second 6 1 59.2 637 Ground Retail 300.0 3,229 277.5 2,987 5 1 56.8 611 Basement Retail 256.3 2,759 268.9 2,894 4 3 139.7 1,504 1 bedroom apartment Retail Sub Total 556.3 5,988 546.4 5,881 First 3 1 59.2 637 3 bedroom apartment WINTER WINTER WINTER TOTAL 1,955.2 21,047 1,604.7 17,271 2 1 56.8 611 GARDEN GARDEN GARDEN 1 3 155.9 1,678 TOTAL 1,058.3 11,390 WESTBOURNE GROVE

Proposed Ground HEREFORD MEWS Proposed Upper Floor Plan Floor Plan (5th)

EXISTING LIGHTWELL

LIFT TERRACE LIFT

RESIDENTIAL ENTRANCE LOBBY

APARTMENT 11 APARTMENT 10 3 BED 3 BED

GOODS TV LIFT

REFUSE COLLECTION Retail STORE 3 bedroom apartment TERRACE TERRACE

Not to scale. WESTBOURNE GROVE Indicative only. 30 31 Grove House

Asset Management

Grove House also benefits from numerous other asset management opportunities to add value including: Regearing the retail lease to Sainsbury’s Converting the first floor to B1 offices upon expiry of the Sainsbury’s lease Refurbishing and reletting the vacant office floors to take advantage of an extreme lack of office accommodation in the local area Potential for an additional basement & fifth floor (in line with the existing planning permission) Improve and enhance the prominence of the office entrance 32 33 Grove House

Westbourne Grove benefits from significantly discounted total occupancy costs in comparison with the Central King’s Cross

London Market. Prime Rents £77.50 Total occupancy costs £121.76

Prime Rents £70.00 Total occupancy costs Marylebone £107.83

Prime Rents Prime Rents £90.00 £90.00 Grove Total occupancy costs Total occupancy costs House Paddington £134.17 £136.22 City Core Overall Rent Prime Rents £55.43 £77.50 Prime Rents Total occupancy cost Total occupancy costs £70.00 £83.84 psf * £113.95 Mayfair Total occupancy costs £108.18 Prime Rents £115.00 Total occupancy costs £182.05

Kensington & Chelsea & Knightsbridge

Prime Rents Prime Rents £65.00 £85.00 Total occupancy costs Total occupancy costs Prime Rents £101.57 £132.58 £52.50 Total occupancy costs £83.98

* Based on average rent + £14.75 rates + £11.00 service charge 34 35 Grove House

Investment Market Occupational Market London’s global appeal, low interest rate environment Extreme lack of supply with just a handful of comparable and safe haven status combined with a perceived office floorplates available within a 1.5 mile radius. discount to the Sterling has meant the investment market continues to witness high levels of demand from both overseas and domestic investors.

Retail Retail Leasing Comparables

Address Date Price Yield Capital Value Tenant Tenure Address Tenant Transaction Date Zone A (psf) £ psf TBC Open Market Letting U/O £207.00 11-15 Borough High Street, SE1 Jan-17 £15.00m 3.40% £1,634 Pret a Manger FH 187 Westbourne Grove, W2

TBC Open Market Letting U/O £200.00 197 , W8 Nov-16 £7.00m 3.40% £1,782 FH 112 Westbourne Grove, W2

Reflexions Open Market Letting Oct-16 £90.00 Queens, 96-98 Bishop’s Bridge Road, W2 Oct -16 £3.50m 3.61% £1,118 Heal & Son FH 58A Westbourne Grove, W2

The Dayrooms Open Market Letting Oct-16 £303.00 Walmer Castle, 58 Ledbury Road, W11 Sep-16 £5.50m 3.39% £1,159 Mitchel & Butlers FH 237 Westbourne Grove, W11

Yog Land Open Market Letting Jun-16 £90.00 100 Queensway, W2 Jun-16 £4.15m 3.00% £1,490 F.T. Ho and K.L. Wong FH 58 Westbourne Grove, W2 (t/a Tao Kitchen) 179 Westbourne Grove, W11 Verve Pets Lease Renewal Mar-16 £215.00 96 Westbourne Grove, W2 Mar-16 £2.55m 3.27% £789 Starbucks FH

108 Westbourne Grove, W2 Carluccios Rent Review Aug-15 £145.00*

*Let with A3 use reflecting £65.00 psf on ground floor trading.

Office / Mixed use

Address Date Price Yield Capital Value Tenant Tenure Office Leasing Comparables (psf)

137-143 Notting Hill Gate, W11 U/O Q £10.0m Q 1.91% Q £850 Pizza Express, FH Address Tenant Transaction Date Rent Leyland SMD. Upper £ psf parts vacant. The Porchester Building, W2 Virgin Open Market Letting Dec-16 £55.00 10 Gate Street, WC2 Jan-17 £3.30m 3.15% £870 Multi-let FH ISN House, 86-87 Campden Street, W8 Tigg Coll Architects Open Market Letting Aug-16 £55.13 20-22 Mortimer Street, W1 Nov-16 £11.65m 3.55% £1,283 Carlton Books FH Peak House, 92 , W10 Sisley UK Open Market Letting May-16 £55.00 19 Golden Square, W1 Jun-16 £10.50m 0.68% £2,075 EAT. Upper parts vacant. FH 52A , SW7 CTMLN Ltd Open Market Letting May-16 £58.00

Westbourne Studios, Undisclosed Open Market Letting May-15 £58.42 242 Acklam Road, W10 36 37 Grove House

Further Information

EPC EPCs are available on request.

VAT Grove House is elected for VAT and it is proposed that the sale will be treated as a Transfer of Going Concern (TOGC).

Proposal Offers in excess of £11,550,000 for the freehold interest, reflecting a topped up net initial yield of 4.37% (assuming purchaser’s costs of 6.7%), a reversionary yield of 4.68% (upon settlement of outstanding Sainsbury’s rent review) and a low capital value of £993 psf on the existing areas and just £669 psf on the consented areas.

Contact For further information or to arrange an inspection please contact:

Dominic Rowe Rob Corbett Director Director [email protected] [email protected] +44 (0)20 7529 5706 +44(0)20 7399 5545

Scott Lister Francesca Spiller Associate Director Associate Director [email protected] [email protected] +44 (0)20 7529 5704 +44(0)20 7087 5569

Harriet Walker-Arnott Graduate Surveyor [email protected] +44(0)20 7852 4298 Peter Ng Director [email protected] +65 6733 3212

Misrepresentations Act 1967 & Declaration: Michael Elliott and JLL for themselves and for the vendors of this property whose agents they are given notice that: a) the particulars are set out as general outline only for the guidance of intending purchasers and do not constitute, nor constitute part of, an offer or contract; b) all descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchaser should not rely on them as statements or representations of fact but should satisfy themselves by inspection or otherwise as to the correctness of each of them; c) no person in the employment of Michael Elliott nor JLL has any authority to make or give any representations or warranty whatever in relation to this property. February 2017 www.cube-design.co.uk (Q3673) 38 Grove House