Clapham Junction | London

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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.

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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 provisions of the Landlord and Tenant Act 1954.

DEBENHAMS

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 overall capital value of £543 per sq ft, assuming standard purchasers’ costs.

CLAPHAM JUNCTION

For indicative purposes only

LOCATION

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

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3

2
7
7
1

4A41

22
20 19

Amersham

24

25

26

M25

5
5

Enﬁeld

18
17

M1

CLAPHAM JUNCTION

Chigwell

4

Watford

Barnet

M11

28
2

₂Beaconsﬁeld

3
4
29

Harrow

1
1

M25

LONDON

Uxbridge

CLAPHAM

L

CITY

O

Slough

G

H

R

30 31

7

O

6

Woolwich Dartford

4

1

2

3

ROAD

A3036

14

Richmond

Windsor

A2
0

HEATHROW

13

2

Staines ¹
Kingston
Swanley

2

3

A2

upon Thames

11

M20

Sutton Epsom
Croydon

4
3

M25

5
2

10

3

9

Woking

M26

Sevenoaks

9
7

Leatherhead

M25

Oxted

6
8

RD

Redhill

M23

Dorking
Reigate

Guildford

Tonbridge

SW

CATCHMENT

Clapham Junction is a wealthy commuter area with a core catchment population of 423,343 and a total catchment population of 1,774,671 (CACI 2017).

RETAILING IN CLAPHAM

Retailing in Clapham Junction extends to c. 580,000 sq ft and comprises a wide range of retailers, bars and restaurants. Clapham is a strong local London shopping and leisure hub, with a retail provision comprising of ShopStop around Clapham Junction rail station, Lavender Hill to the east, St. John’s Road to the south and extending onto Northcote Road.

Clapham Junction has a high
Clapham Junction’s young and afﬂuent catchment population, which

traditionally beneﬁt from an increased disposable income, have a higher per capita in store comparison expenditure when compared to other trading locations within south west London. proportion of young residents, 46% are within the 25-44 age group. The high working population has resulted in approximately 48% of households having a mean gross family income above £60,000 pa, signiﬁcantly above the National (12%) and London average (17%).
Occupiers in the immediate area include Waitrose, TK Maxx, McDonald’s, Boots, Marks & Spencer and JD Sports.

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.

DESCRIPTION

The subject property comprises two retail units, arranged over basement, ground and two upper floors, with selfcontained 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.

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.

NORTH

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

25/12/2020 24/12/2025 Ground Sales

Sq Ft

3,335
859 320

3,655

3,231
756

Sq M

pa

Comments

24 St Johns Road, Santander UK Plc Clapham
309.8 £170,000
(£161 ZA)
29.7
£190,000 (£180 ZA)
Tenant renewed 12/2020. Lease excluded

from Landlord and Tenant Act.

(Co No. 02294747)

Ground ITZA

Ground Ancillary

Ground Floor Total

First

339.5

300.2

70.2

Second

Total

7,642

709.9

24 St Johns Road, Location Live

01/01/2021 03/01/2025 04/01/2022 Ground

Basement
582 601
428.5
54.1 £90,000 55.8 (£196 ZA)
£90,000 (£196 ZA)
Mutual break clause at 04/01/2022, 04/01/2023 and 04/01/2024 on 6 weeks notice. Lease excluded from Landlord & Tenant Act.
Clapham
Limited (t/a Ploom)

(Co No. 08307715)

Ground ITZA

Total

1,183

109.9

Flat 24a Flat 24b

Totals

Private individual Private individual

1 Bedroom ﬂat

546

50.7 £14,440

£15,000

£310,000

AST expired 16/07/2020. Tenant holding over 1 bedroom ﬂat.

1 Bedroom ﬂat

580

53.9 £15,000

AST expired 29/06/2020.

Tenant holding over 1 bedroom ﬂat.

9,951

924.4 £289,400

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.

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 Total Net Worth

1,012,000

1,545,000

1,817,000

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.

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.

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)

- Freehold investment sold in September 2018 for £1.95m which reflected a net initial yield of 4.31% and a capital value of £1,653 per sq ft. The property was let to Greggs on a 10 year lease from 1st June 2017 with a tenant only break clause effective June 2022. The rent passing of £89,350 pa reflected a Zone A of approximately £180 per sq ft.
LONDON (HALIFAX) - Freehold mixed-use investment sold in November 2020 for £2.33m which reflected a net initial yield of 4%. The property was let on an overriding lease to Halifax with approximately 11 years unexpired and including 2 residential flats, one let on a regulated tenancy.

ST JOHN’S ROAD (WAITROSE, SUPERDRUG

& L'OCCITANE) - Freehold retail block purchased by the Royal Borough of Kensington & Chelsea in March 2020 for £25m which reﬂected a net initial yield of 4% and an equivalent yield of 4%. The sale price reﬂected a capital value of £574 per sq ft.

DEBENHAMS, CLAPHAM JUNCTION - Freehold

sold in December 2018 for £48m, which reﬂected a net initial yield of 3.65% and a capital value of £345 per sq ft.

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 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 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. Designed by TCC 04/21.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Philip Hay BSc (Hons) MRICS

020 7637 7100 or 07770 580 590

[email protected]