Travelodge Ibrent Cross

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Travelodge Ibrent Cross TRAVELODGE I BRENT CROSS Prime North London Hotel DENMARK HOUSE I LONDON I NW9 7BW TRAVELODGE BRENT CROSS I NW9 7BW Prime North London Hotel Investment Summary • Opportunity to acquire a newly refurbished 128 bed Travelodge hotel and office in a highly accessible North London location • The hotel is let to Travelodge Hotels Ltd for 25 years from November 2017 • The office accommodation is let to the Secretary of State for Communities and Local Government until September 2023, with a break date in September 2020 • The Secretary of State for Communities and Local Government have expressed interest in removing their break clause in September 2020 • Travelodge rent is subject to 5 yearly rent reviews linked to CPI with a collar and cap of 1% and 4% • Travelodge passing rent is £655,922 per annum reflecting a low rate of £5,124 per bed per annum • Secretary of State for Communities and Local Government passing rent is £186,200 per annum • Total rent roll of £842,122 per annum • A substantial car park with allocated spaces • Freehold We are seeking offers in excess of £16,000,000 (Sixteen Million Pounds) exclusive of VAT, reflecting a Net Initial Yield of 4.93% after purchasers costs of 6.74% TRAVELODGE BRENT CROSS I NW9 7BW Prime North London Hotel BRENT CROSS TESCO BRENT SOUTH STAPLES CORNER STAPLES CORNER TUBE STATION SUPERSTORE SHOPPING PARK RETAIL PARK BUSINESS PARK THE CITY BRENT CROSS HOLIDAY INN LONDON VAUXHALL TRAINS TO BIG YELLOW SHOPPING CENTRE - BRENT CROSS STAPLES CORNER CENTRAL LONDON SELF STORAGE AERIAL TBS NORTH CIRCULAR ROAD HENDON TRAIN STATION M1 A5 TRAVELODGE BRENT CROSS I NW9 7BW Prime North London Hotel A5183 A418 8 A120 10 A41 A10 Aylesbury 9 A1M A12 Hertford A418 M1 M11 Witham A41 Location Regeneration A414 4 Harlow Chiltern Hills St Albans 3 Brent Cross is on the western edge of Brent Cross is about to undergo major8A regeneration, AONB 8 7 A41 A10 21 A414 the London Borough of Barnet, close with Hammerson and Aberdeen Standard A414 20 6 Potters Bar Cheshunt Epping to the boundary with the Borough of developing a new £4.5bn town centre which will be A4010 A413 23 Amersham 5 25 27 Barnet Brent. The area is bordered by Hendon known as Brent Cross Cricklewood. A fundamentalM40 Watford Loughton M25 M1 High A1 A12 Way to the east, the M1 to the west and element to the scheme is the £1.4bn redevelopment Wycombe 4 M11 M25 A130 3 4 Brentwood Edgware A406 28 the North Circular that connects the of Brent Cross Shopping Centre, which will include 2 A4130 M40 28 Rayleigh two roads and bisects the area. a 592,000 sq ft extension to accommodate 150 A127 Brent Cross 1 A10 Romford 29 Basildon A127 16 1 A12 new shops, 50 new restaurants and other leisure A404 Wembley A41 A406 A406 Brent Cross Shopping Centre, is a major A4074 A40 Dagenham CENTRAL LONDON London Southend businesses including a luxury cinema. John Lewis, Maidenhead Hayes A312 DP World A13 City Airport London -on-sea scheme which covers c. 800,000 sq ft A321 Brentford A13 Gateway 8 which is the anchor tenant at the shopping centre, 15 1 30 River A4 and includes prime retailers such as A102 Port ames Windsor Heathrow A2 of has recently announced that it has signed a new Tilbury John Lewis, Zara and Marks & Spencer’s; M4 Reading M4 A316 Dartford lease and will refurbish its store as part of the A205 Lewisham 10 Twickenham Gravesend it is located approximately 0.5 miles 1 A20 2 redevelopment. 11 Bracknell A23 to the east of the property. There is M3 Kingston A24 A2 Ascot 12 Upon ames Bromley 1 Croydon 3 a major regeneration planned for the The wider Brent Cross Cricklewood scheme will cover A322 Weybridge 2 M3 A232 A33 3 M25 Rainham area which focuses on the shopping circa 141 hectares (370 acres) and provide 7,500 A3 4 M20 Camberley A243 Epsom 3 M2 centre. Brent Cross Bus Station is new homes, 4m sq ft of new office space, three new 4 Woking 10 9 A217 2A 4 A22 M26 6 located within the Centre. schools, new public realm, enhanced community Leatherhead 5 M3 A331 A23 7 A3 facilities and significant transportBasingstoke improvements, M25 Sevenoaks A228 8 7 Maidstone Given the proximity of the hotel to 6 Hendon 6 HENDON WAYRedhill such as the creation of an additional train station on Aldershot Guildford central London the surrounding areas A21 A5 A26 the Midland Mainline. The development is expected to Dorking N CIRCULAR RD A229 are predominantly residential with some M1 London M23 create 27,000 new jobs and to complete in 2022. A31 Gatwick A22 Tonbridge industrial use adjacent to the major roads. A24 Airport Brent BRENT Royal Cross A3 Tunbridge CROSS Wells Situation Crawley BRENT PARK RD BRENT CROSS The site is located between Edgware FLYOVER Road (A5) and the M1 just north of the 1 North Circular and its major junctions EDGEWARE RD A41 with the A5 and M1. The property is next to a significant Vauxhall dealership A406 to the south, and to the north there are properties with industrial and retail warehouse use. The area designated for redevelopment is within 500m N CIRCULAR RD A5 walking distance. HENDON WAY CGI OF BRENT CROSS REGENATION TRAVELODGE BRENT CROSS I NW9 7BW Prime North London Hotel Connectivity RAIL The immediate area is served by Brent Cross and Hendon Central Underground Stations, both of which are on the Northern line and located approximately 1 mile east and north east of the property respectively. Hendon Train Station is located approximately 0.5 miles to the north of the property, providing direct lines to London Blackfriars Station (30 mins) and London St Pancras International (20 mins) to the south and Luton Airport (30 mins) to the north via the Thameslink Line. A new train station is planned on the Midland Mainline as part of the Brent Cross development. BUS There is a bus station within the shopping centre that provides a number of routes to both central London and the immediate area. ROAD The site, which fronts onto the A5, can be easily accessed via Junction 1 of the M1 or from the North Circular, the junctions for which are less than 150m from the property. Barnet Council, The Highways Agency and Transport for London are working with developers to improve transport in the area with £200 million to be invested on road infrastructure. Improvements will include two new road and five new pedestrian bridges, which will significantly improve access to parts of the area that are currently difficult to reach. TRAVELODGE BRENT CROSS I NW9 7BW Prime North London Hotel Description The hotel accommodation is on the top two floors of the original building and within the entire extension. The ground floor of the extension contains the reception, bar café and back office areas. The hotel’s 128 bedrooms are on the top two floors. The property, a former office has been converted to provide both office and hotel accommodation. The ground floor of the original building remains as office space and is separated by a central foyer. The accommodation splits into 5,293 sq ft (North) and 8,366 sq ft (West) providing a total of 13,659 sq ft. The north section is fitted out with interview rooms and waiting areas with the west wing containing open plan offices and meeting rooms. Investment Comparables Tenure Date Property Structure Rooms Term Review Structure Price Yield Freehold Avail. Travelodge London, Leytonstone FF 51 25 years 5 yearly RPI (1% & 4%) £10.00m 4.50% U/O Travelodge London, Whitechapel FC 88 25 years 5 yearly CPI (0% & 4%) £18.65m 4.40% Tenancy U/O Travelodge & Halfords Built 96 17 years 5 yearly RPI (uncapped) £13.70m 4.50% The hotel is let to Travelodge Hotels Ltd for 25 years Whestone, London from November 2017 until November 2042. The rent Jun 2018 Travelodge Dagenham Built 82 25 years 5 yearly CPI (1% & 4%) £10.06m 4.65% is subject to five yearly rent reviews linked to CPI with an annual collar of 1% and cap of 4%. The passing rent is Jan 2018 Travelodge London, Harrow FC 102 34 years 5 yearly RPIX (uncapped) c. £16.00m 3.83% £655,922 per annum reflecting a rate of £5,124 per bed. The ground floor office accommodation is let to Secretary Rental Comparables of State for Communities and Local Government until September 2023 with a break in September 2020. Date Property Rooms Deal Type Rent Per Bed The passing rent is £186,200 per annum and is ‘subject Q2 2018 Travelodge Dagenham East 78 New Letting £4,811 to five yearly upwards only open market rent reviews. Q2 2018 Travelodge Dagenham 82 New Letting £5,706 The SSCLG have expressed interest in removing their break clause in September 2020. Q1 2018 Travelodge Leytonstone 51 New Letting £6,932 Q4 2017 Travelodge Whitechapel 88 New Letting £9,000 TRAVELODGE BRENT CROSS I NW9 7BW Prime North London Hotel Covenant Travelodge Secretary of State for Communities and Local Government Travelodge Hotels Ltd is the UK’s largest independent hotel brand boasting over 558 hotels and 42,000 bedrooms across the UK as well The Secretary of State for Communities as 5 hotels in Spain and 12 franchises in Ireland. The budget hotel chain and Local Government (also known as The has recently announced plans to open 20 properties during 2018. Secretary of State for Housing, Communities and Local Government) is responsible for In 2012, Golden Tree Asset Management, Avenue Capital Group a range of UK government policy including and Goldman Sachs took ownership of the business.
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