24/26 ST JOHN’S ROAD | CLAPHAM JUNCTION | LONDON

PRIME LONDON FREEHOLD OPPORTUNITY WITH MEDIUM TERM DEVELOPMENT POTENTIAL 24/26 ST JOHN'S ROAD | CLAPHAM JUNCTION

INVESTMENT SUMMARY

• Located in the affluent London Borough of Wandsworth, close to excellent transport links including Clapham Junction Station.

• Opportunity to acquire a 100% prime, mixed use investment.

• Freehold.

• Approximately 9,951 sq ft of retail/residential accommodation.

• Rebased/reversionary rents agreed on a recent letting and lease renewal.

• 59% of the income is let to the undoubted covenant of Santander, who have recently renewed on a 5-year lease.

• Ability to increase the residential massing, subject to planning and vacant possession. FORMER • Leases contracted out of the security of tenure DEBENHAMS provisions of the Landlord and Tenant Act 1954.

• Offers are invited in excess of £5,400,000 (Five Million Four Hundred Thousand Pounds), subject to contract. A purchase at this level would reflect an attractive net initial yield of 5.02%, reversionary yield of 5.38% and an CLAPHAM overall capital value of £543 per sq ft, assuming JUNCTION standard purchasers’ costs.

For indicative purposes only 24/26 ST JOHN'S ROAD | CLAPHAM JUNCTION

LOCATION

Clapham Junction sits within the highly affluent This will link Clapham junction to Surrey in the south neighbourhood of Battersea, in the London west and Hertfordshire in the North. Construction Borough of Wandsworth. The district is situated is expected to start later in the 2020’s with the new approximately 4 miles (6.4 km) south west of Central line opening in the early 2030’s. London, with nearby suburbs including Westminster, Chelsea and Earlsfield. Clapham Junction is The new railway will connect Clapham Junction extremely well connected and sits at the centre of to key locations throughout London including an excellent transport infrastructure. Tottenham Court Road, Euston, St. Pancras International, Victoria and Wimbledon. Crossrail 2 is Clapham Junction is one of Europe’s busiest railway projected to increase London’s rail capacity by 10% stations with approximately 500,000 passengers and provide up to 30 Crossrail 2 trains per hour to and 2,000 trains per day. It serves as an intersection destinations including London, Hertfordshire and for regular trains to London Waterloo, London Surrey. It will connect with existing National Rail and Victoria and Vauxhall, providing easy access London Overground services. There are numerous across London as well as the south east and bus routes passing through St John’s Hill, St John’s south west of England. Road and Lavender Hill providing regular services into Central London. Clapham Junction benefits from The location is ideally situated to benefit from a regular train service to London Gatwick Airport the proposed Crossrail 2 Network, with Clapham approximately every 5-10 minutes (peak time) with Junction sitting at the heart of the new railway. a fastest journey time of 25 minutes.

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CATCHMENT RETAILING IN CLAPHAM

Clapham Junction is a wealthy Retailing in Clapham Junction extends to c. 580,000 sq ft and comprises a wide range commuter area with a core catchment of retailers, bars and restaurants. Clapham is a strong local London shopping and population of 423,343 and a total leisure hub, with a retail provision comprising of ShopStop around Clapham Junction catchment population of 1,774,671 rail station, Lavender Hill to the east, St. John’s Road to the south and extending onto (CACI 2017). Northcote Road.

Clapham Junction has a high Clapham Junction’s young and affluent catchment population, which proportion of young residents, 46% traditionally benefit from an increased disposable income, have a higher per are within the 25-44 age group. The capita in store comparison expenditure when compared to other trading high working population has resulted locations within south west London. in approximately 48% of households having a mean gross family income Occupiers in the immediate area include Waitrose, TK Maxx, McDonald’s, above £60,000 pa, significantly Boots, Marks & Spencer and JD Sports. above the National (12%) and London average (17%). WB Real Estate acquired the Debenhams from British Land in 2018 and have proposals for a mixed-use development, incorporating retail at ground floor and basement, with contemporary office space on the upper floors. The main office entrance will front onto St. John’s Road. 24/26 ST JOHN'S ROAD | CLAPHAM JUNCTION

DESCRIPTION

The subject property comprises two retail units, arranged over basement, ground and two upper floors, with self- contained residential accommodation (laid out as two 1 bed flats) arranged over first floor level, accessed from a self-contained entrance on St. John’s Road.

The property is situated in the Clapham Junction conservation area.

CLAPHAM JUNCTION RESIDENTIAL

The London Borough of Wandsworth has seen significant house price growth. The area is dominated by flats which are particularly popular with young professionals looking for proximity to transport, bars and restaurants. Further towards Northcote Road, there is a higher concentration of houses which build on the family scene, focused on proximity to schools and the green space.

According to data provided by Foxtons, the average property price in Clapham is £824,838, some 32.9% above the London average of £620,776.

The average capital values achieved are between £800 - £1,000 per sq ft. 24/26 ST JOHN'S ROAD | CLAPHAM JUNCTION

SITUATION

The property is situated in a prime trading location on St. John’s Road close to its junction with Lavender Hill. Nearby

retailers include TK Maxx, Waitrose and Marks & Spencer.

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TENURE Freehold.

TENANCIES The property is let in accordance with the tenancy schedule attached and produces a current rent of £289,400 pa.

The current Wault to expiry is 4.84 years and 3.30 years to break (assuming the 04/01/2022 break on 26 St John’s Road).

Both commercial leases are excluded from the Landlord & Tenant Act 1954 and both leases do not have the negative of a rent cesser in the event of closure of the business stemming from a pandemic.

Current Rent Rental Value Unit Name Tenant Name Lease Start Expiry Date Break Date Use Sq Ft Sq M pa pa Comments

24 St Johns Road, Santander UK Plc 25/12/2020 24/12/2025 Ground Sales 3,335 309.8 £170,000 £190,000 Tenant renewed 12/2020. Lease excluded Clapham (Co No. 02294747) Ground ITZA 859 (£161 ZA) (£180 ZA) from Landlord and Tenant Act. Ground Ancillary 320 29.7 Ground Floor Total 3,655 339.5 First 3,231 300.2 Second 756 70.2 Total 7,642 709.9 24 St Johns Road, Location Live 01/01/2021 03/01/2025 04/01/2022 Ground 582 54.1 £90,000 £90,000 Mutual break clause at 04/01/2022, Clapham Limited (t/a Ploom) Basement 601 55.8 (£196 ZA) (£196 ZA) 04/01/2023 and 04/01/2024 on (Co No. 08307715) Ground ITZA 428.5 6 weeks notice. Lease excluded from Total 1,183 109.9 Landlord & Tenant Act. Flat 24a Private individual 1 Bedroom flat 546 50.7 £14,440 £15,000 AST expired 16/07/2020. Tenant holding over 1 bedroom flat. Flat 24b Private individual 1 Bedroom flat 580 53.9 £15,000 £15,000 AST expired 29/06/2020. Tenant holding over 1 bedroom flat. Totals 9,951 924.4 £289,400 £310,000 24/26 ST JOHN'S ROAD | CLAPHAM JUNCTION

RENTAL VALUE It is our opinion that the estimated rental value would lie in the region of £310,000 pa as detailed in the tenancy and accommodation schedule.

24/26 St John’s Road (Santander) was a lease renewal effective 25th December 2020, which reflects a Zone A rent of c. £161 per sq ft, applying A/20 to ground floor ancillary and first floor and A/40 to second floor ancillary.

26 St John’s Road (Ploom) was an open market letting effective January 2021 which reflects a Zone A rent of c. £196 per sq ft, applying A/20 to the basement ancillary.

The most salient rental evidence in addition to the above includes the following: -

1. 26 ST JOHN’S ROAD (TRAID) - Rent review October 2019 agreed at a rent of £113,000 pa (previous £97,500) which devalued to a Zone A rent of £180 per sq ft.

2. 30/32 ST JOHN’S ROAD (MCDONALD’S) - Rent review February 2018 agreed at a rent of £229,000 (previous £165,000 pa) which devalued to a Zone A rent of £180 per sq ft. 24/26 ST JOHN'S ROAD | CLAPHAM JUNCTION

COVENANT INFORMATION

Santander UK Plc is a British Bank wholly owned by the Spanish Santander Group and is one of the largest providers of mortgages and savings in the United Kingdom. The bank operates from over 800 branches, have approximately 20,0000 employees, having over 14 million active and 64 corporate business centres.

SANTANDER UK PLC (02294747) has reported the following figures: -

31/12/2019 31/12/2018 31/12/2017 £ £ £ Turnover Total 4,173,000 4,534,000 4,912,000 Operating Income Pre-tax Profits 1,012,000 1,545,000 1,817,000 Total Net Worth 14,091,000 13,950,000 14,311,000

Santander have an Experian rating of 83 out of 100 reflecting a low risk.

Ploom is a new state of the art tobacco vaporizer retailer and has a number of retail outlets including Westfield London and Stratford and Argyle Street London W1.

LOCATION LIVE LIMITED, TRADING AS PLOOM (08307715) has reported the following figures: -

30/11/2019 30/11/2018 30/11/2017 £ £ £ Turnover Total - - - Operating Income Pre-tax Profits - - - Total Net Worth 526,014 882,307 609.560

Location Live have an Experian rating of 49 out of 100 score reflecting an above average risk business failure. 24/26 ST JOHN'S ROAD | CLAPHAM JUNCTION

VAT The property has not been elected for VAT.

EPC The property has the following EPC ratings: -

COMMERCIAL 24/26 St John’s Road (Santander) - C52 26 St John’s Road (Ploom) - C57

RESIDENTIAL Further information is available on request. 24/26 ST JOHN'S ROAD | CLAPHAM JUNCTION

PROPOSAL We have been instructed to seek offers in excess of £5,400,000 (Five Million Four Hundred Thousand Pounds) subject to contract, for the benefit of the freehold interest in the subject premises.

A purchase at this level would reflect a net initial yield of 5.02%, a reversionary yield of 5.38% and an equivalent yield of 5.32%, net of standard purchasers' costs. This reflects an overall capital value of £543 per sq ft.

The most recent sales comparable evidence can be set out as follows: -

17/19 SEVEN SISTERS ROAD, 22 ST JOHN’S ROAD, CLAPHAM (GREGGS) LONDON (HALIFAX) - Freehold mixed-use - Freehold investment sold in September 2018 investment sold in November 2020 for £2.33m for £1.95m which reflected a net initial yield of which reflected a net initial yield of 4%. 4.31% and a capital value of £1,653 per sq ft. The property was let on an overriding lease to The property was let to Greggs on a 10 year Halifax with approximately 11 years unexpired lease from 1st June 2017 with a tenant only break and including 2 residential flats, one let on a clause effective June 2022. The rent passing of regulated tenancy. £89,350 pa reflected a Zone A of approximately £180 per sq ft. ST JOHN’S ROAD (WAITROSE, SUPERDRUG & L'OCCITANE) - Freehold retail block purchased DEBENHAMS, CLAPHAM JUNCTION - Freehold by the Royal Borough of Kensington & Chelsea in sold in December 2018 for £48m, which reflected March 2020 for £25m which reflected a net initial a net initial yield of 3.65% and a capital value of yield of 4% and an equivalent yield of 4%. The sale £345 per sq ft. price reflected a capital value of £574 per sq ft.

FOR FURTHER INFORMATION, PLEASE CONTACT: Messrs. Jackson Criss for themselves and for the vendors or lessors of this property whose agents they are to give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, references to condition and necessary Philip Hay BSc (Hons) MRICS 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 of representations of fact but satisfy themselves by inspection or otherwise as to the correctness 020 7637 7100 or 07770 580 590 of each of them; (iii) no person in the employment of Messrs. Jackson Criss has any authority to make or give any representation or warranty whatever in relation to this property. 102882. [email protected] Designed by TCC 04/21.