Reversionary Freehold Investment Opportunity
Heaton House 216-224 Fulham Road LONDON, SW10 Heaton House 216-224 Fulham Road LONDON, SW10
INVESTMENT SUMMARY
n Reversionary investment in one of London’s most affluent areas, the London Borough of Kensington and Chelsea
n Freehold
n Property comprises of a prominent retail parade with residential ground rents above
n 5,658 sq ft (525.7 sq m) of retail, restaurant and leisure accommodation
n Multi-let producing £237,250 per annum exclusive
n WAULT of 12.1 years to lease expiries and 9.5 years to breaks
n Residential uppers (sold off) comprises of 12 flats, of which 4 have under 58 years remaining
n Significant reversion on Zone A retail rents of an average £97 psf compared with Zone A rents in the area over £125 psf
n Opportunity to realise lease extension premiums on a number of residential units
n Offers are sought in excess of £4,450,000. A purchase at this level would reflect a Net Initial Yield of 5.00% (allowing for adjusted purchaser’s costs of 6.57%)
Reversionary Freehold Mixed Use Investment Opportunity HARRODS
SLOANE SQUARE SOUTH KENSINGTON
BROMPTON ROAD
GLOUCESTER ROAD RIVER THAMES
OLD BROMPTON ROAD
216-224 FULHAM ROAD
CHELSEA & WESTMINSTER HOSPITAL KING’S ROAD
REDCLIFFE GARDENS
EARL’S COURT
FULHAM ROAD
WEST BROMPTON
STAMFORD BRIDGE
FULHAM BROADWAY
For indicative purposes only. Fulham Road
Heaton House 216-224 Fulham Road LONDON, SW10
A 8 3 1 2 2 A3
2 T 0 H
E D L R I T A T Y A L T E O 3 2 B N O 2 C O L G 0 O L D A L T C E O R H N D H E S E U R N 8 R N H S 0 C E A 3 H R R A S D C O T U R R D 8 T R E 1 R E 2 T E 3 T T A E N R U R G A E A C R D 3 E T R A THE PROPERTYE 2 D O 2 C R D 0 L A D IF M RO A F A O E B RK A R R H E PA T D L A WEST 3 R U U LM 2 A H F F E 2 C O O BROMPTON 0 H L R T L P T A Y A S C W R K T O R O W E D A E R L T D K N S BROMPTON IG E IL A H F T G CEMETARY I CHELSEA AND E WESTMINSTERIN R L G A D A V R HOSPITAL L E O E
R A P D L L O I B A M E D E A R U S F 8 S T O 0 T O R 3 DE R N T A U E S S F R E E T T T M T R R R E E I N L E D G L E S I M T H T A H D A N W A NT A G O ’S E R M LE PAIN QUOTIDIEN R R K 3 O S AN H 2 O ’S T B 2 A EM O D VE G A R 0 IN SE T K EL E CH E STAMFORD N 2 N 17 21 A S 32 A3 L BRIDGE IA A M R R A O F A D
4 0 3
A
FULHAM A 8 3 BROADWAY 30 2 A 20
F AD 20 ULHAM RO A32
RD K AR RIVER THAMES E P OR MO
BAGEL BAKERY BAR
HOSPITAL
CHELSEA & WESTMINSTER
Experian Goad Plan Created: 17/05/2016 50 metres LOCATION & SITUATION TRANSPORT Created By: Allsop The property is located within the prestigious London Borough of a number of exclusive fashion brands and restaurants. The property benefits from excellent communications being and Piccadilly lines). A number of bus routes also run along Copyright and confidentiality Experian, 2016. © Crown copyright and database For more information on our products and services: Kensington and Chelsea. It is situated on the north side of Fulham According to the 2011 census Kensington and within walking distance of a number of London Underground Fulham Road providing onwards access to Central and rights 2016. OS 100019885 Road, opposite the Chelsea and Westminster Hospital. The Chelsea has a population of approximately 159,000. stations including Fulhamwww.experian.co.uk/goad Broadway (District line), Earl’s | [email protected] London. | 0845 601 6011 surrounding area offers a wide variety of shops, bars, restaurants The Borough is one of the most affluent in London Court (District and Piccadilly lines), Gloucester Road (Circle, The proposed Crossrail 2 includes a station on King’s Road, and leisure facilities. Nearby occupiers include Rossopomdoro, Le with average household incomes of over £150,000 per District and Piccadilly lines), West Brompton (District and which will only enhance the area’s connectivity and is Pain Quotidien, Pret A Manger, Boots, Tesco and Starbucks. annum according to a 2013-2014 UK Government poll. London Overground) and South Kensington (Circle, District planned to be operational by 2030. Fulham Road itself runs parallel to the internationally renowned King’s Road, which is famed for being home to Reversionary Freehold Mixed Use Investment Opportunity Heaton House, 216-224 Fulham Road, London, SW10
DESCRIPTION The property comprises a mid-terraced five storey building with an extensive frontage onto Fulham Road and is arranged as four commercial units over lower ground and ground floors. The three upper floors comprise 12 self-contained residential units which have been sold off on long leases. The four commercial units are currently arranged as two retail units, a restaurant and a 24-hour gym.
TENURE Freehold.
TENANCIES & ACCOMMODATION
Address Tenant Lease Start Lease Expiry Next Accommodation Floor Area Floor Area Floor Area Rent Rent Rent ITZA (Break Date) Review (sq ft) NIA (sq m) ITZA (sq ft) (p.a.) (£psf) (£psf)
216 JF Stone Investments Ltd (t/a 16/03/2010 15/03/2020 - Ground 350 32.6 290 £30,000 £85.71 £103.45 Fulham Road American Dry Cleaning Company) 216/218 Feng Sushi Ltd 28/06/2010 27/06/2025 28/06/2020 Ground 721 67.0 447 £41,250 £58.95 £95.08 Fulham Road 220 Holland & Barrett Retail Ltd 02/09/2009 01/09/2019 - Ground 598 55.5 426 £40,000 £66.89 £93.90 Fulham Road 222-224 EFSO Ltd (t/a Anytime Fitness)* 20/11/2014 19/11/2034 20/11/2019 Ground 1,295 120.3 -** £125,000 £27.12 - Fulham Road (20/11/2029) (RPI Linked) Basement 3,314 307.9 (GIA) (GIA) (GIA)
Flat 1 Mr MR Watts & Mrs GJH Watts 25/12/1999 24/12/2124 25/12/2040 - - - £75*** - -
Flat 2 Mr N Sturgess 25/12/1999 24/12/2124 25/12/2099 - - - £75 - -
Flat 3 Mrs IA Buchan 12/09/2014 25/12/2163 - - - - Peppercorn - -
Flat 4 Mr N Parker 25/12/1974 24/12/2073 25/12/2040 - - - £75 - -
Flat 5 Mr M Conroy 25/12/1974 24/12/2163 25/12/2040 - - - £75 - -
Flat 6 Mr Mcgrath 25/12/1974 24/12/2073 25/12/2040 - - - £75 - -
Flat 7 Mr J Speed 25/12/1974 24/12/2163 25/12/2040 - - - £75 - -
Flat 8 Mrs B Peschaud 25/12/1974 24/12/2073 25/12/2040 - - - £75 - -
Flat 9 Mr Picetti 25/12/1974 24/12/2073 25/12/2040 - - - £75 - -
Flat 10 Heritage Land Ltd 20/12/2010 24/12/2163 - - - - Peppercorn - -
Flat 11 Mr H Scrope 24/12/1987 23/06/2112 24/06/2037 - - - £200 - -
Flat 12 MR CRA Steel 24/06/1987 23/06/2112 24/06/2037 - - - £200 - -
Total £237,250
*RPI linked rent reviews capped and collared between 3% and 5%. £75,028 rental deposit held. **On an ITZA unit 224-226 reflects circa 990 sq ft. ***Rent being demanded and paid is £75 pa however rent provision is £50 pa. Reversionary Freehold Mixed Use Investment Opportunity Heaton House 216-224 Fulham Road LONDON, SW10 Heaton House, 216-224 Fulham Road, London, SW10
COVENANTS
ANYTIME FITNESS HOLLAND & BARRETT FENG SUSHI AMERICAN DRY Anytime Fitness gym franchise concept is a 24-hour gym that has over Holland & Barrett is Europe’s largest Established in 1999, Feng CLEANING COMPANY 50 clubs in the UK, with 20 of them situated within the M25. The Anytime retailer of vitamins, minerals and herbal Sushi now operates eight Founded in 1990, American Dry Cleaning Fitness franchise is also an international operation with over 3,000 fitness supplements, operating over 620 stores restaurants across London. Company now operates 35 stores across clubs in 23 countries. across the UK and Ireland. Feng Sushi’s Fulham branch London and the South East. Having Moreover, the franchise, established 10 years ago, was recently named the Holland & Barrett offer a D&B 5A 1 covenant is the original and has opened its first store in the American Number One Top Global Franchise by Entrepreneur Magazine, surpassing and for the year ending 2014 reported been trading since 1999. Embassy the business has continued to well-known brands such as McDonalds, Pizza Hut and Subway. a turnover of £368.82M, a pre-tax profit Additional branches include grow, focusing on high quality clothing of £89.46M and a net worth of £260.47M. Borough Market, Notting care, tailoring and alterations. A rent deposit of £75,028 is held. Hill Gate, Chalk Farm and For the year ending 2015 the company West Hampstead. reported a turnover of £6.16M and a net worth of £1.15M.
INVESTMENT COMPARABLES
Date Property Address Tenant Price NIY VAT PLANNING Apr-16 45-47 Parsons Green Lane, SW6 Cote Restaurants Ltd £3,750,000 3.22% The property is elected for VAT which will be The property is not listed and does not chargeable on the purchase price. It is anticipated lie within a conservation area. Jan-16 196/200 Fulham Road, SW10 Savills £2,700,000 4.38% that the transaction will be treated as a transfer Dec- 15 498-504 Fulham Road, SW6 Nationwide c. £2,100,000 c. 4.05% of going concern (TOGC). DATA ROOM Dec-15 137-141 Kensington Church Street, W8 Multi-let £3,500,000 3.77% EPC’s Please contact Allsop for password Aug-15 143 Kensington High Street, W8 Thomas Exchange £4,285,000 3.75% protected access to the data room. Mar-15 246 Fulham Road, SW10 Rosa’s £2,600,000 3.98% EPC’s for the property are available via the data room. Feb-15 490 Fulham Road, SW6 Stonegate Pub Company £3,300,000 4.55% Heaton House 216-224 Fulham Road LONDON, SW10
INVESTMENT OPPORTUNITIES
• Freehold building in an affluent south west London location • Future opportunity to significantly increase the Zone A retail rents • RPI linked rental uplifts on the gym unit • Opportunity to realise lease extension premiums on 4 of the 12 residential units
PROPOSAL Offers are invited in excess of £4,450,000 (Four Million Four Hundred and Fifty Thousand Pounds subject to contract and exclusive of VAT). A purchase at this level would reflect a Net Initial Yield of 5.00% (allowing for adjusted purchaser’s costs of 6.57%).
For further information or to make Chloe Newton Mark Ibbotson Nick Pemberton arrangements for viewing please contact: 020 7543 6886 020 7543 6879 020 7543 6775 [email protected] [email protected] [email protected] www.allsop.co.uk
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design: CommandD www.commandHQ.co.uk 09.16