Boots Retail Warehouse Clapham Junction

10 Falcon Lane, London SW11 2LG

A UNIQUE INVESTMENT OPPORTUNITY

1 INVESTMENT SUMMARY

Freehold. Clapham was recently voted ‘Best place to live in Offers an unique development opportunity for a London’ by Time Out’s City Living Survey. variety of uses including residential and mixed-use. Total site area of 0.77 acres. The store is let to Boots UK Limited for a remaining In view of the unique nature of this asset we are instructed The Property is located in Clapham Junction, a busy 5.6 years. to seek offers in excess of £8,700,000 (Eight Million, residential and commercial hub in South West London with Seven Hundred Thousand Pounds), subject to contract a catchment area population of 1,774,671. The store extends 11,047 sq ft with a passing rent of and exclusive of VAT, which reflects a net initial yield of £370,000 per annum reflecting an affordable £33.50 per Clapham Junction is located 5.8km (3.6 miles) south west 4.00% allowing for purchaser’s costs of 6.70%. sq ft. The rent is subject to five yearly rent reviews, the next of Central London within Zone 2. being 7th May 2019. Clapham Junction station is the busiest rail interchange Strong potential for Asset Management. in Europe serving c. 2,000 trains per day.

2 WANDSWORTH

WANDSWORTH COMMON

WANDSWORTH BRIDGE

ST JOHN’S HILL

CLAPHAM JUNCTION ST JOHN’S ROAD

LAVENDER HILL

London Victoria - 7 minutes London Waterloo - 9 minutes

3 Chelsea Bridge UNIQUE LOCATION CHELSEA Chelsea Embankment A3212

Albert Bridge

Battersea Bridge Clapham Junction is a vibrant district Clapham Junction of South West London within the affluent PARSONS GREEN has a shopping London Borough of Wandsworth. A3220 population of Clapham Junction is located 5.8km (3.6 BATTERSEA PARK miles) south west of Central London within London’s Zone 2 transport belt 80,307 proving to be a highly popular residential BATTERSEA PARK hub due to its excellent transport links. Clapham Junction serves approximately IMPERIAL WHARF QUEENSTOWN ROAD 2,000 trains per day making it the busiest Battersea Park Road interchange in Europe. A3205 BATTERSEA Clapham Junction’s shopping population SITUATION is expected to grow Falcon Road rapidlyWANDSWORTH over ROAD the next RIVER THAMES 10 years (8%)

A3207 Boots Clapham Junction occupies a A3205 CLAPHAM 0.77 acre site situated on Falcon Lane

Wandsworth Bridge situated a few metres to the east of A3216 CLAPHAM HIGH STREET Clapham Junction railway station. The Lavender Hill CLAPHAM JUNCTION Falcon Lane A3220 CLAPHAM NORTH site is bounded by Lidl to the west, a A3036 signalling centre to the north and Asda Retail spend in Clapham to the east. The site is a well established Junction exceeds CLAPHAM COMMON retail destination. A3 WANDSWORTH TOWN A3 £185 MILLION St John’s Hill per annum

CLAPHAM Northcote Road WANDSWORTH A3 COMMON

A24

A214 South Circular Road Clapham Junction serves approximately

Not to scale indicative only 2,000 trains per day

4 UNRIVALLED CONNECTIVITY Victoria Waterloo Clapham Junction station is the busiest rail interchange 7 minutes 9 minutes in Europe serving c. 2,000 trains per day. The station is connected by South Western Trains to and from London Waterloo, Southern Trains to Victoria and London Bridge, the Gatwick Express and London Overground services. CROSSRAIL 2 CrossRail 2 is expected to be operational by the early 2030s and Clapham Junction is likely to be one of the busiest TO BROBOURNE stations on the new £27 billion route supporting an additional TO NEW SOUTGATE 9,000 passengers per day. TOTTENAM ALE Clapham Junction is also well connected by road with the A3 and A3205 linking Clapham Junction to Wandsworth, DALSTON Vauxhall and London’s South Circular ring road (A205).

ANGEL Victoria EUSTON ST PANCRAS West Brompton Waterloo TOTTENAM COURT ROAD

Fulham Broadway VICTORIA

Imperial Wharf Pimlico ING’S ROAD CELSEA

River Thames CLAPHAM JCTO CLAPHAM Putney Queenstown Road East Putney JCTO Toards the Vauxhall Toards Cit Bank TOOTING Richmond Battersea BALAM BROADWAY Wandsworth Town Power Station Nine Elms Kennington

Key Southfields WIMBLEDON Mainline London Overground Wandsworth Road District Wimbledon Park Earlsfield Stockwell Victoria Clapham High Street Northern TO EPSOM Wimbledon Toards Clapham North TO CESSINGTON SOUT Northern Maps not to scale Extension Gatick TO AMPTON COURT indicative only TO SEPPERTON

Balham 5 CLAPHAM JUNCTION RETAILING

Clapham Junction provides residents and visitors with an extensive range of retailers including national fashion outlets, supermarkets and convenience stores.

Clapham Junction’s retail offer is centred upon St John’s Road, St John’s Hill and Lavender Hill all to the south. National retailers such as Debenhams, TK Maxx, JD Sports and Waterstones all have a significant presence. Lavender Hill and Northcote Road both provide a vibrant mix of boutique casual dining and leisure options for residents and visitors to Clapham Junction.

National supermarkets are also well represented in Clapham Junction with Asda, Co-op and Lidl operating larger-format stores. M&S Simply Food, Wholefoods and Sainsbury’s Local are also present in a convenience format.

6 DEMOGRAPHICS

The catchment area of Clapham Junction has a total population of 1,774,671, with a shopper population of 80,307. Clapham’s shopping population is expected to rise significantly in the next 10 years (8%), much higher than the national average of 4.7%.

Clapham Junction is home to 60% of ‘City Sophisticates’ - affluent younger people with an income double the national average. Most people in this group are interested in the newest technology and likely to combine online shopping with retail spend in shops, and eating out.

The residents spend a total of £170.1m in the area. Another £20.0m is added by workers (5.0%), £8.0m by tourists (4.0%) and £63.5m is spent online (34.0%). Clapham Junction ranks 2nd out of 14 CACI ‘Larger London Urban Centres’, only outperformed by Camden Town, which receives a big share of its income from tourists spending.

LONDON URBAN CENTRE SPENDING RANKING

Total Spend Resi Tourist Worker Online Shopper Rank Destination (£m) Spend Spend Spend Spend Population 1 Camden Town £193,305 56% 32% 12% 20% 29% Clapham 2 £188,146 90% 4% 5% 34% 43% Junction 3 Brixton £184,330 91% 3% 6% 32% 47%

4 Wandsworth £181,044 92% 2% 6% 34% 43%

Source: CACI, Knight Frank

The catchment area of Clapham Junction has 2nd best urban centre a total population of for retail spend in 90% retail spend 1,774,671 London (£188,146m) from residents

7 DESCRIPTION THE PROPERTY PLANNING

The Property comprises a modern Planning permission for the purpose-built solus retail warehouse erection of a single storey retail extending to 11,047 sq ft (1,026 sq unit was granted in March 1998 m). The Property is of steel frame (ref. N/98/0041). construction with brick elevations to the lower and sheet metal cladding to the Further planning information uppers. The property has partial glazing available upon request. to the upper and lower sections.

The site extends 0.77 acres and benefits from 48 car parking spaces.

8 S TENURE

Victoria Freehold. (no.TGL155287). Signalling Centre

try G an al TENANCY gn S i The property is let to Boots UK Limited on a 25-year Fully Repairing and Insuring lease from 7th May 1999 until 6th May 2024. The rent passing is £370,000 per annum, which reflects a headline rent of £33.50 per sq ft. S

The rent is subject to five yearly upwards only rent reviews. The next review being on 7th May 2019. Site area - 0.77 acres Victoria Posts Signalling Centre COVENANT ANALYSIS try G an al N LANE FA ign FA LC O S L C El Sub Sta ON

Boots is the UK’s leading pharmacy-led health and beauty retailer with around LA 2,500 stores in the UK. Key NE

55 RIGHT OF WAY 53 Boots was first established over 150 years ago and has become one of the Hotel 43 Not to scale indicative only 1 31

5 5 0m 10m 20m30m 19 UK’s favourite retailers with 90% of the UK population within a 10-minute drive 7 9 of one of its stores. The company now employs over 40,000 people. Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432.D Plotted Scale - 1:1000 Boots UK Limited has a Dun and Bradstreet Rating of 5A1 representing a Posts minimum risk of business failure.

A summary of the last three years annual accounts for Boots UK Limited are set out below: E FA FA LC ON LAN L C El Sub Sta ON

LA 31/08/2017 31/08/2016 31/08/2015 NE

55 53 Turnover £6,837,000,000 £6,876,000,000Hotel £9,198,000,000 43

1 31

5 5 0m 10m 20m30m 19 Profit before Taxation £498,000,000 £523,000,000 7 £542,000,0009

9 R Architects Falcon Lane, Clapham Junction Pre Application Document October 2016 PROPOSED DEVELOPMENT3.1 Massing Opti oPOTENTIALn 1 - Boots Site CLAPHAM HOUSE PRICE COMPARISON Indexed 2008 = 100

The Boots site has significant potential for medium term redevelopment to residential use (subject to the necessary consents) and represents an excellent opportunity to create a high-quality scheme in an area within Clapham that has been earmarked for development.

Whilst the site is capable of being developed in isolation, it also represents a key piece ofG+ 9

G+3 a larger masterplan. A preliminary high-level feasibility and massing study (dated OctoberG+7 2016) identifies an indicative multi-level residential scheme with additional groundG+ 5 floor retail space. R Architects Falcon Lane, Clapham Junction Pre Application Document FurtherOctober 2016 information in respect of the scheme and the agreed pre-application minutes can be found within the data room. 3.1 Massing Option 1 - Boots Site

Aerial view looking North View from Lavender Hill

2008 2009 2010 2011 2012 2013 201 2015 201 2017

Clapham Junction London Prime Central London United ingdom

G+9

G+3 G+7 G+5 LIDL REDEVELOPMENT

Lidl is currently seeking the redevelopment of its store to an updated, modern format with basement parking for customers. The application has been approved subject to legal agreement dated 21/06/2018 (ref.2017/2972).

Aerial view looking North CGI Aerial view lookingView Soutfromh Lavender Hill CGI View from Falcon Road

23 23 ‘Best place to live in London’ £££ 50% Clapham was recently Favourite destination for House prices have voted by Time Out’s City high-earning risen by 50% in the Living Survey commuters past 10 years

CGI

10 Aerial view looking South View from Falcon Road

23 23 EPC PROPOSAL

An Energy Performance Certificate has been commissioned. Further details In view of the unique nature of this asset we are instructed to seek offers in will be made available upon request. excess of £8,700,000 (Eight Million, Seven Hundred Thousand Pounds), subject to contract and exclusive of VAT, which reflects a net initial yield of 4.00% allowing for purchaser’s costs of 6.70%. VAT

The property is elected for VAT. It is envisaged that the sale will be treated as a Transfer of Going Concern (TOGC). CONTACT

For further information or to arrange an inspection please contact: DATA ROOM COMMERCIAL ENQUIRIES Access granted upon request. Dominic Walton Oliver Petch E: [email protected] E: [email protected] T: +44 20 7861 1591 T: +44 20 7861 1107 KNIGHT FRANK DEBT ADVISORY M: +44 7818 041 670 M: +44 7716 085 925

The Knight Frank Debt Advisory team provides a value-add service to those Freddie MacColl James Brooks considering obtaining real estate finance for developments or acquisitions. E: [email protected] E: [email protected] The team partners with borrowers throughout the financing process to make it T: +44 20 3967 7133 T: +44 20 7861 5264 simpler and faster, and to ensure that they finish with optimal terms. M: +44 7834 755 033 M: +44 7773 258 770

For further information, please contact Lisa Attenborough of the Knight Frank Debt advisory team. RESIDENTIAL ENQUIRIES

Lisa Attenborough Nick Alderman E: [email protected] E: [email protected] T: +44 20 3909 6846 T: +44 20 7861 5408 M: +44 7773 258 673 M: +44 7786 856 173

MISREPRESENTATION ACT: Knight Frank LLP give notice to anyone who may read these particulars as follows: 1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934.Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members’ names. October 2018.

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