Cresta House Finchley Road London

CENTRAL LONDON FREEHOLD MIXED USE INVESTMENT OPPORTUNITY ENTER

CRESTA HOUSE 125-133 FINCHLEY ROAD, LONDON, NW3 6HT HOME INVESTMENT LOCATION, AERIAL DEMOGRAPHICS, DESCRIPTION ACCOMMODATION TENANCY SCHEDULE, COVENANT VAT, EPC, DATAROOM, MARKET PROPOSAL, SUMMARY SITUATION PLANNING TENURE INFORMATION ASSET MANAGEMENT COMMENTARY FURTHER INFO INITIATIVES

INVESTMENT SUMMARY

n An opportunity to acquire a prime central London mixed use investment.

n Swiss Cottage is an affluent London suburb with excellent road and rail transport links.

n Highly prominent location and immediately adjoining Swiss Cottage Underground station.

n The investment comprises three self-contained ground floor A1/A2 units, two floors of offices and thirty eight residential flats (sold off long leasehold).

n The commercial element is multi let to three tenants with an AWULT of 3.97 years to lease expiry (2.18 years to breaks).

n Let to London Overground Rail Operations Limited, Barclays Bank Plc and GH Cranfields LLP.

n Freehold.

n 56 car parking spaces.

n Total income of £677,193 per annum.

n Offers sought in excess of £11,100,000 (Eleven Million and One Hundred Thousand Pounds), subject to contract and exclusive of VAT.

n A purchase at this level represents a net initial yield of 5.77% and equates to a capital value of £483 per sq ft, based upon the office and ground floor area only.

CENTRAL LONDON FREEHOLD MIXED USE INVESTMENT OPPORTUNITY CRESTA HOUSE, 125-133 FINCHLEY ROAD, LONDON, NW3 6HT HOME INVESTMENT LOCATION, AERIAL DEMOGRAPHICS, DESCRIPTION ACCOMMODATION TENANCY SCHEDULE, COVENANT VAT, EPC, DATAROOM, MARKET PROPOSAL, SUMMARY SITUATION PLANNING TENURE INFORMATION ASSET MANAGEMENT COMMENTARY FURTHER INFO INITIATIVES

BRONDESBURY HAMPSTEAD KENTISH TOWN SITUATION A41 A503 A400 A5 Cresta House is situated on the western side of Finchley Road (A41) close to St John’s Wood and Primrose CRESTA HOUSE Hill which are 0.7 miles (1.1 km) to the south and 1.1 miles (1.7 km) to the south east respectively.

ISLINGTON A10 The property occupies a highly prominent position being immediately adjacent to Swiss Cottage DALSTON A1 PRIMROSE HILL CAMDEN TOWN Underground Station, 450 metres from South Hampstead overground station and 650 metres from Finchley KILBURN ST JOHNS HOXTON Road Underground Station. WOOD A5 Regent’s Park A501 The property also benefits from its close proximity to Finchley Road’s main retail pitch to the north where MAIDA VALE A41 SHOREDITCH retailers include Marks & Spencer Simply Food, Boots, Argos and McDonalds. B 5

A11 1

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A40 T

PADDINGTON Z J

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V N L IZ I R L C B E Kensington Hyde E P S D E S E B AR L Gardens Park H K T G E O E T A B Green WEST HAMPSTEAD L RD C N RD S E EN N S K WATERLOO E Park St James’s RSO ENS Y FINCHLEY ROAD R IVE GARD H Park River Thames RST I D W WEST HAMPSTEAD HU R S LL AD BRO D E 0 KENSINGTON R L OOD D C W S R 1 A100 R T ERRIFF A THE SH S N CASTER GR & CHELSEA E 5 EN D O N D N VE B R A GA L AYNE CK COMP U E A4 B N AV A201 ETO VICTORIA CHALK FARM CRESTA HOUSE RD SWISS COTTAGE ELAIDE 509 AD SSINA AVE W B ME OODCHURCH RD

D 100 AVENUE RD

Y LOCATION R RD ENRY’S G O ING H A I K LO R U 5 P P C K R ES Swiss Cottage is an affluent London suburb located within the London Borough of Camden. K R I T M E I A D R D D L P R R A SOUTH B E R Y O V R H E IZ D T S The suburb is located approximately 2.3 miles (3.7 km) north west of central London, with U S HAMPSTEAD R E EL O O HI Y L D R B O W L R LS E N W E

L Hampstead to the north, St John’s Wood to the south and Kilburn to the west. S ’ H R N H E

I H G G C PRIMROSE HILL E O A N D J R H V T’ N S

T E A S I B I N P R AR R R 5 E U K RD O F Swiss Cottage has excellent road links, with the A41, Finchley Road, running north to the M1 N V T D 0 E C O I 7 U R R V 1 G D A O S 4 ’ and A1, whilst to the south the A41 runs all the way to Baker Street in central London. From D B D N R E U KILBURN HIGH RD B A E D S Y U R A O T L R E Q D R IL Y L R T BE V A O AL Baker Street, the A40 is easily accessible, providing direct access to Uxbridge, High Wycombe RY G D R IA W E U REV N C C SB ILL O A N IN E E R U C S R D D O AD A H P N E 5 O B L N 0 and Oxford to the north west via the M40. BR IL 2 H D 5 R A N D TO KILBURN PARK RL A ST JOHN’S WOOD C A L Swiss Cottage also has very good rail links with three London Underground/Overground P 4 H G D 1 U R S O D W T R stations serving the immediate area: Swiss Cottage (Jubilee Line), South Hampstead (London O B N JO B E E REGENTS PARK L 5 H R E L N A 0 V M L L ’S P 7 O Overground) and Finchley Road (Jubilee and Metropolitan lines). These stations serve a wide N I W R G R N H O G OO B413 G 5 CARLTON A RC R D VA M D 0 LE A BE O R T range of destinations, both into and out of central London, with a fastest journey time to I A H 5 LT V S O 2 U IG O 5 M E C N H N R D I S A E Baker Street station of approximately four minutes and Westminster station of approximately R A T C R T E K I R N D R D R A A D P E A C 11 minutes via the Jubilee line. South Hampstead (linking with Watford Junction and London V E LORDS R N A V D R N R CRICKET I A D U LF LL B E L A GROUND Euston) and Finchley Road & Frognal mainline stations (linking with Stratford, Richmond and L E H KI North Woolwich) are also well connected on national railway networks.

Opposite the property at 100 Avenue Road, Essential Living have a planning application lodged for a residential tower of 24 storeys comprising of 184 units.

In spite of officer recommendations, the scheme was turned down by the London Borough of Camden in September 2014. Essential Living confirmed in January 2015 that they are appealing the decision and this process is ongoing.

BT TOWER REGENTS PARK PRIMROSE HILL WEST END BAKER STREET HYDE PARK LORDS CRICKET PADDINGTON ODEON SWISS COTTAGE SOUTH GROUND STATION CINEMA UNDERGROUND HAMPSTEAD STATION STATION SUBJECT PROPERTY

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DEMOGRAPHICS Swiss Cottage and adjoining areas such as St John’s Wood, Hampstead and Primrose Hill are densely populated and highly affluent. Within a five minute drivetime of the property the population is estimated to be 81,000 rising to 318,000 within a ten minute drivetime.

The largest proportions of the Swiss Cottage population are classified as Liberal Opinions (young, well educated professionals) and Alpha-Territory (successful and substantially wealthy households). Furthermore, the proportion of the population that is aged 20-44 is well above the national average.

Swiss Cottage has a far higher than average number of high income households, particularly over £50,000 per annum, with the majority of low income households being under represented compared to the rest of the UK.

PLANNING The site was granted planning consent on 19th September 1979 for the erection of a nine storey and basement building providing a bank and two retail units on the ground floor, offices on the first and second floors, 36 maisonettes on 3rd to 9th floor, 29 car parking spaces at basement level and incorporation of a pedestrian access to Swiss Cottage Underground Station.

DESCRIPTION Internally, the property benefits from: The offices and one ground floor unit are currently used by London Overground Rail Operations Limited as their headquarters from Cresta House was developed in 1983 and provides a n Comfort cooling which they run the control of all London Overground Stations. mixed use building arranged over basement, ground n Suspended ceilings with recessed lighting and nine upper floors. n Under floor trunking There is extensive secure car parking for 56 vehicles accessed from n One 1000 kg / 8 person passenger lift serving ground to Belsize Road via an electronically controlled gate. The basement The ground floor provides three glazed self-contained second floor contains 29 spaces allocated to the residential leases with the A1/A2 units known as 127, 129 and 131 Finchley Road. n Male, female and disabled WC facilities on all floors surface car park providing a further 27 spaces. Of these 13 spaces The office accommodation is arranged over part are allocated to commercial tenants, one to a flat tenant, with 10 ground, first and second floors with a self-contained There are thirty seven flats and one penthouse, accessed via their available to be let to third parties. 3 spaces are reserved for visitors. ground floor entrance at the south end of the building. own dedicated entrance at the north end of the building, situated on the third to ninth floors. All are sold off on long leases for 125 The total site area is 0.584 acres. years from 25th March 1983.

ACCOMMODATION The property has been measured by Lane & Frankham in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following net internal floor areas:

Tenant Floor Use Area (sq ft) Area (sq m) London Overground Rail Ground Office 1,168 108.50 Operations Limited Barclays Bank Plc Ground Banking - Sales 4,606 427.90 Banking - ITZA 2,155 200.21 GH Canfields Ltd Ground Office 2,666 247.70 Storage / Reception 606 56.30 London Overground Rail First Office 6,768 628.80 Operations Limited Storage / Ancillary 213 19.80 London Overground Rail Second Office 6,748 626.90 Operations Limited Storage / Ancillary 216 21.10 TOTAL 22,991 2,137

TENANCY SCHEDULE

Lease Lease Expiry Rent Rent Rent Unit Tenant Floor Comments Start (Break Option) Review (per annum) (per sq ft)

Mutual break option anytime between London Overground Rail 23/06/2019 127 Finchley Road Part Ground 24/06/2014 £43,512 £37.25 13/11/2016 and 12/11/2017 on six Operations Limited (25/12/2016) months prior written notice.

129 Finchley Road GH Canfields Ltd Part Ground 20/09/2010 19/09/2020 20/09/2015 £35,000 £10.70

131 Finchley Road Barclays Bank Plc Part Ground 07/09/2012 06/09/2017 £120,000 £55.68 ITZA

Mutual break option anytime between London Overground Rail 23/06/2019 125 Finchley Road 1st & 2nd Floor 24/06/2014 £441,756 £31.77 13/11/2016 and 12/11/2017 on six Operations Limited (25/12/2016) months prior written notice.

Determinable by either party on 2 x Car Parking Spaces GH Canfields Ltd 13/12/2010 Monthly licence £3,400 one months notice.

12 months 10 x Vacant Car Parking Spaces Vendor Rental Guarantee Completion from £25,000 Guarantee includes rates. (£2,500 per annum per space) completion

Ground rents double in 2033, 2058 38 Flats Residential Ground Rents 25/03/1983 24/03/2108 £8,525 and 2083.

Total £677,193

TENURE The property is held freehold.

• There is an internal only lease of the residential parts of the property and the common parts of the property used by the residential tenants to a group company of the seller (Citruz Properties (Basingstoke) Limited). This lease sits between the freehold interest and the residential occupational interests. The seller is therefore able to proceed with an asset sale without serving offer notices on the residential occupational tenants. • London Underground have rights reserved over passageways serving the adjoining Underground Station at basement level.

COVENANT INFORMATION

Barclays Bank Plc London Overground Rail Operations Limited (LOROL) Barclays Bank is the second largest bank in the UK by assets and has a current market London Overground Rail Operations Limited, formerly known as MTR Laing Metro Limited, is capitalisation of £27.12bn. The company also operates in 27 countries and has in the region of a train operating company contracted to operate the London Overground train service on the 50 million customers worldwide. National Rail network, under the franchise control of Transport for London. The company is a 50/50 joint venture between the European transport operator Arriva’s division Arriva UK Trains Barclays Bank Plc has a Dun & Bradstreet rating of 5A1 based on a tangible net worth of and the Hong Kong rail operator MTR Corporation. £53,324,000,000 representing a ‘minimum risk’ of business failure. The company has reported the following accounts over the past 3 years: London Overground Rail Operations Limited has a Dun & Bradstreet rating of 1A2 based on a tangible net worth of £725,000 representing a ‘lower than average risk’ of business failure. The company has reported the following accounts over the past 3 years: 31 December 2013 31 December 2012 31 December 2011 £000’s £000’s £000’s Sales Turnover £36,873,000 £34,337,000 £43,102,000 31 March 2014 31 March 2013 31 March 2012 £000’s £000’s £000’s Pre-Tax Profit (Loss) £2,885,000 £99,000 £5,974,000 Sales Turnover £131,715 £126,829 £110,481 Tangible Net Worth £53,324,000 £52,123,000 £54,232,000 Pre-Tax Profit (Loss) £2,262 £7,085 £8,192 Net Current Assets £54,717,000 £47,078,000 £49,849,000 Tangible Net Worth £725 £2,328 £4,877 (Liabilities) Net Current Assets £11,314 £6,449 £1,969 (Liabilities)

GH Canfields LLP GH Canfields LLP is a local firm of solicitors. The company primarily deals in Employment Law, Property Law, Litigation, Wills and Probate and Family Law.

31 July 2013 31 July 2012 31 July 2011 £ £ £ Net Current Assets £491,995 £492,877 £293,584

VAT ASSET MANAGEMENT INITIATIVES FURTHER INFORMATION The property is elected for VAT and it is proposed that the sale • Scope for regearing London Overground Rail Operations Should you require any additional information or wish to view will be treated as a Transfer of Going Concern (TOGC). Limited. the property please contact either: • Scope for refurbishing offices, current rent (£31.77 psf) is on an unrefurbished basis. Bearing in mind Baker Street Simon Lewis rents are now in the region of £60 psf, there is the potential Tel: 0207 493 3330 ENERGY PERFORMANCE CERTIFICATE for a significant reversion if the offices were brought up to Mob: 07831 527 960 Email: [email protected] The property has varying EPC ratings which are stated below. grade A standard. Energy Performance Certificates are available on the Lewis Ellis • Subject to planning, there is scope to convert the first and Tony Burling website. second floors to residential. Swiss Cottage has continued to Tel: 0207 493 3330 rise in popularity as a residential location over the last few Mob: 07860 555 769 Address Energy Performance years to become one of Central London’s most desirable Email: [email protected] Asset Rating neighbourhoods with residential capital values now in excess of £1,200 per sq ft. David Kos 125-127 Finchley Road E (124) Tel: 0207 493 3330 129 Finchley Road F (136) Mob: 07709 813 267 131 Finchley Road D (82) Email: [email protected] PROPOSAL We are seeking offers in excess of£11,100,000 (Eleven Million, One Hundred Thousand Pounds), subject to contract DATA ROOM and exclusive of VAT. This reflects anet initial yield of 5.77%, There is a data room for the property containing key tenancy after the deduction of the usual purchaser’s costs of 5.80%. information, title documents, Lane and Frankham Area Referencing Report and EPC’s. Access can be arranged via The vendor will guarantee the rent and empty rates liability on Lewis Ellis. the vacant car parking spaces for a period of 12 months from completion.

Lewis Ellis LLP for themselves and for the vendors or nominees or lessors of this property whose agents they are give notice that: (1) the particulars are set out as a general outline only for the guidance of the intending purchasers or lessees, and do not constitute part of an offer or contract; (2) 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 purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (3) no person in the employment of Lewis Ellis LLP has any authority to make or give any representation or warranty whatever in relation to the property. Designed and Produced by Creativeworld. Tel: 01282 858200. February 2015.

CENTRAL LONDON FREEHOLD MIXED USE INVESTMENT OPPORTUNITY CRESTA HOUSE, 125-133 FINCHLEY ROAD, LONDON, NW3 6HT