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Home , Garratt Lane, Tooting, Tooting railway station

50 – 56 High Street & 984 – 986 TOOTING BROADWAY ■ ■ SW17 0RN

Unique freehold site comprising a mixed use substantially reversionary investment with considerable development potential computer generated image 50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN 02

Garratt Lane

Tooting Market Tooting High Street Garratt Terrace SUBJECT PROPERTY

to St George’s University Hospital

Tooting Broadway Underground Station

A24

Mitcham Road 50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN 03

• Rare opportunity to purchase a unique and prominent freehold development site in the heart of one of South London’s most popular areas which is expected to see further growth as a result of 2.

• Situated directly opposite Tooting Broadway station, in a prime retail pitch.

• Let to the undoubted covenant of HSBC, Halifax, JD Wetherspoons and the NHS with a INVESTMENT SUMMARY INVESTMENT diversified income stream.

• Current total rental income of £580,850 per annum including rental guarantees.

• Substantial rental reversion with excellent rental growth prospects.

• Opportunity to reposition the property through redevelopment with an increased height and density, potentially for retail, leisure, residential, hotel or student housing uses, subject to the usual consents.

Offers are sought in excess of £17,000,000 (Seventeen Million Pounds) subject to contract and exclusive of VAT, giving a net initial yield of 3.20% and a reversionary yield of 4.57% after allowing for standard acquisition costs of 6.74%. 50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN 04

Located in Tooting, within the affluent Borough of in south Transport links are excellent, with the property situated west London, the property benefits from a prime location, situated immediately opposite Tooting Broadway underground station immediately opposite Tooting Broadway Station in the heart of the (). is located 0.8 miles prime retail pitch. The surrounding area offers a wide variety of shops, to the south and provides regular direct services to London bars and leisure facilities. Nearby occupiers include: Blackfriars and onwards to City , Farringdon and St Pancras International. The area is expected to benefit from the arrival of with Tooting Broadway and stations both being safeguarded. The arrival of Crossrail 2 will reduce congestion on the Northern Line and reduce the journey

Farringdon The newly redeveloped Tooting Market is a very popular local time to London VictoriaBaker to as little as 10 minutes. In addition Madame Street Tussauds Liverpool attraction, run by the team who set up the famous Camden Market. there are a number of major busCourt Road routes serving Tooting StreetHigh

Marble CANNING Arch Blackfriars TOWN It is home to over 50 pop up food stalls and retail units and has won Street, connecting to CentralOxford Circusand GreaterLeicester London. Limehouse Piccadilly Square Tower Hill Shadwell Circus Trafalgar Monument Westferry Square East India numerous awards including Best Small Indoor Market @ The Great Green Blackwall Park Kensington Gardens Hyde Charing British Market Awards 2017. Park Cross

London Heron Quays

LOCATION & SITUATION LOCATION Bridge SOUTHWARK Waterloo North St. James’s E A R L ’ S Park C O U R T Quays Over recent years Tooting has experienced rapid growth, benefitting from the Elephant Shopping SOUTHWARK Centre & Castle PARK Surrey Victoria Quays ripple effect of rapid house price growth in resulting in increased Kensington Mudchute Farm gentrification further south down the Northern Line. Residential house prices have

Charlton increased by 32.44% over the past 5 years (Zoopla). In 2017 Tooting was voted as one Burgess Vauxhall Park Maze Hill of the worlds “Top Ten Coolest Neighbourhoods” by Lonely Planet. Park

B A T T E R S E A Gate

C H E L S E A Stockwell Greenwich Greenwich Park The area is now a popular neighbourhood full of young families and professionals, High Street P E C K H A M Loughborough

with several major retail and commercial occupiers seeking representation and a & Lewisham C L A P H A M Junction Southwark Shillington College Gardens Clapham Ruskin B L A C K H E A T H number of regeneration and development schemes being planned and consented. Park Junction

Brixton Hilly Fields These include Crest Nicholson’s residential/ commercial development The Blackheath Park Rye Park Clapham Park Common Broadway, a consented 5 storey £40 million ApartHotel to be developed by the Honor Oak Ladywell Park L E W I S H A M

Hither Green London Hotel Group and a 5 storey Premier Inn/ Lidl anchored mixed use scheme Brockwell Ladywell Park Fields B R I X T O N Mountsfield currently under construction. VILLAGE St Dunstans Bridge College Park West Catford Balham Tulse Dulwich Forest Hill Hill Another important driver of the local economy is St George’s Hospital( 150 m from Sydenham Hill Hill the property), one of the largest hospitals in the UK providing 1,300 beds. St George’s Garden Of Rememberance

University shares the same site and is consistently voted the Best Medical School in SUBJECT PROPERTY TOOTING the country. As a result the area is home to a large medical population comprising BROADWAY Gibsy Hill over 8,500 medical staff and nearly 10,000 students attending the university, with Streatham very limited student accommodation available in the area. Tooting

Colliers Wood 50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN 05

Tooting’s combination of excellent transport links, vibrant commercial centre and good housing stock make it a very attractive residential location. According to CACI, Tooting has a total resident population of 66,134, which includes areas up to Tooting Bec and Wandsworth Common to the north and parts of Streatham to the south. Population growth for the next 10 years is forecast to be 5.70%, compared to the UK average of 5.10%. DEMOGRAPHICS The Tooting catchment is notably wealthy, with 77% of the population earning more that £40,000 per annum. Using CACI’s Acorn classification, 74% of the Tooting population are classified as‘Affluent Achievers’ or ‘Rising Prosperity’, compared to 32% of the UK’s population generally.

Underpinning the areas growing prosperity is the Borough’s housing stock which has seen capital growth of 28% over the past 5 years, and 7% over the last year, significantly better when compared to both London and the UK as a whole, -1.9% and 2% respectively over the same period.

Situated directly opposite Tooting Broadway station, in a prime retail pitch. 50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN 06

The total retail floorspace in Tooting is estimated at 0.67 million sq ft, above the average for a London centre of this nature, reflecting its wide catchment and affluent population. The Tooting area is favoured by young families and young professionals which helps to underpin retail spend within the locality, as demonstrated by the high levels of rental growth the market has experienced, as major national multiples enter the market, recently including Pret a Manger, Lidl and Superdrug. Tooting is forecast to see above average percentage growth in the volume of total retail spend between 2017 and 2022.

The strength in demand has been witnessed by recent lettings to Pret a Manger and Holland & Barrett at 3 and 5/9 Road, which reflect a headline Zone A rent of £155 per sq ft and a net Zone A rent of £145 per sq ft.

The letting to Holland & Barrett at 5/9 The Broadway showed a circa 28.5% RETAILING IN TOOTING RETAILING increase on the previous passing rent which was a lease renewal effective December 2013.

There is currently a paucity of available retail space in Tooting and pent up demand which will assist in maintaining rental growth.

Outstanding tenant requirements include: 50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN 07

The property comprises a rare standalone site totalling approximately 0.5 acres. To the south east of the site there is a two-storey commercial building. The property provides a terrace of 4 retail units, fronting onto Tooting High Street. There are an additional two retail units fronting onto the A217/ Garratt Lane. The first-floor upper parts provide a mix of independent office space as well as a variety of ancillary accommodation.

50 – 52 High Street (Halifax) provides a two-storey corner unit with return frontage onto the A217. The ground floor is arranged as a banking hall, with additional meeting rooms and ancillary accommodation on the first floor. DESCRIPTION DESCRIPTION 54 High Street (formerly Snappy Snaps) provides a retail unit at ground floor with offices on the first floor, which benefit from a self contained access from High Street.

56A High Street (J D Wetherspoon) is arranged as a public house on ground floor only, benefitting from a kitchen and storage area to the rear.

56 High Street (HSBC) comprises a large corner unit arranged as a bank with a return frontage onto Garratt Terrace, where a number of ATM machines are installed. The unit presents well and has recently benefitted from a refurbishment.

1st Floor, 56 High Street (NHS) provides modern office accommodation, currently arranged as several meeting / consultation rooms. The property benefits from its own access on Garratt Terrace and has a passenger lift installed.

986 Garratt Lane & 984 Garratt Lane provide 2 lock up retail units with frontage onto the busy A217, with 986 Garratt Lane benefitting from first floor ancillary accommodation.

1st Floor, 984 Garratt Lane provides office accommodation at first floor, benefitting from a self contained entrance from Garratt Lane.

The remainder of the site comprises an open car parking area, currently offering 21 spaces, and a loading yard, benefitting from direct road access on two sides, the A217/ Garratt Lane and Garratt Terrace. Tooting

50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN 08

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TENURE & TENANCY TENURE & TENANCY a

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58 3 0 6 For indicative purpose only. Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:661 Tooti Ban ng This plan is published for the convenience of Broadway identi cation only and although believed to be correct is not guaranteed and it does not form any part of any contract. © Crown Copyright. TENUREAll rights reserved. Licence Number LIG0074.

Freehold.

TENANCIES

The property currently provides a net income of £580,850 pa, on the basis that the vendor will be pro- viding a 12 month rental and rates guarantee on 54 High Street and a 12 month rental guarantee on the 3

SNAPPY SNAPPS vacant car parking spaces on the small rear car park.

The individual tenancy information is set out in the tenancy and accommodation schedule attached.

AREAS

The floor areas are set out in the tenancy schedule on the next page.

Experian Goad Plan Created: 18/09/2018 50 metres Created By: Jones Lang LaSalle Ltd

Copyright and confidentiality Experian, 2017. © Crown For more information on our products and services: copyright and database rights 2017. OS 100019885 www.experian.co.uk/goad | [email protected] | 0845 601 6011 50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN 09

Lease Expiry Rental Value Address Tenant Date Rent (PAX) Rent Review (PAX) Areas sq ft Comments

Ground Floor Sales 2,204 Bank of Scotland Plc £125,000 £205,000 ITZA 1,141 5% for return/prominence. 75% of first floor 50/52 High Street 28/12/2031 29/12/2021 t/a Halifax (£94 ZA) (£150 ZA) First Floor Office/Ancillary 1,928 at £15 psf and remainder at A/20. Total 4,132 Car park site to rear of £3,600 £3,600 12 month rental guarantee. Halifax potential for 3 spaces Ground Floor 1,361 54 High Street Vacant £97,000 £97,000 Shop currently vacant. 12 month rental N/A Ground ITZA 695 Ground Floor (Rental Guarantee) (£140 ZA) (£140 ZA on retail) guarantee to be provided by vendor. Total 1,361 54 High Street £26,750 £26,750 First Floor In discussions with an office occupier and Rental guarantee TBC N/A 1,337 First Floor (£20) (£20) s/c offices close to agreeing terms.

Ground Floor 2,723 Lease includes 4 car parking spaces. Valued £75,000 £135,250 56A Tooting High Street D Wetherspoon PLC 29/09/2030 29/09/2020 ITZA 932 at £1,200 each. Property to be used for any

TENANCY SCHEDULE TENANCY (£75 ZA) (£140 ZA) Total 2,723 use within Class A1, A2 or A3.

Ground Floor 3,589 5% applied to return to Zones A and B. Lease £119,000 £184,500 56B Tooting High Street HSBC Bank Plc 23/06/2022 - ITZA 1,284 includes 4 car parking spaces valued at (£90.45 ZA) (£135 ZA) Total 3,589 £1,200 each. 56/56A Tooting High Street South West London and Outside security of tenure provisions of the £67,500 £94,580 (First Floor & self St George’s Mental Health 05/04/2022 N/A First Floor 4,189 Landlord & Tenant Act 1954. Lease includes 9 (£13.53 p sq ft) (£20 p sq ft) contained office) NHS Health Trust car spaces valued at £1,200 each. Ground Floor 447 Rolling mutual break on 9 months notice Shazwa Siddique £28,000 £35,850 ITZA 339 986 Garratt Lane 26/11/2022 27/11/2020 Outside security of tenure provisions of t/a Printing Place (£78 ZA) (£100 ZA) First Floor Acillar y/Offices 390 the Landlord & Tenant Act 1954. Total 837 Ground Floor 435 Rolling mutual break on 9 months notice Samir Cherifi £22,600 £31,200 984 Garratt Lane 26/11/2022 27/11/2020 ITZA 312 Outside security of tenure provisions of t/a Café Manal (£72.44) (£100 ZA) Total 435 the Landlord & Tenant Act 1954. Rolling landlords break on dates: 13/09/18, 984 Garratt Lane £11,700 £11,700 13/06/19, 13/03/20, 13/12/21 and 13/06/222. (first floor self Mr J A Khan 12/12/2022 13/12/2020 First Floor Office 498 (£23.50 psf) (£23.50) Outside security of tenure provisions of the contained office) Landlord & Tenant Act 1954.

3 Car Park Spaces Broadway Veterinary Clinic 31/05/2019 £3,500 £3,500 3 car parking spaces 1 year licence. 3 spaces.

1 Car Park Space Thompson Lawyer £1,200 £1,200 1 car parking space 1 year licence agreement to be documented.

Total Rent Total £580,850 £830,130 Total Area NIA (sq ft) 19,101 Total Area GIA (sq ft) 21,394 Passing Rental Value

The rear car parking area is camera monitored with fines levied on illegal parking, currently averaging £7,500 pcm. Our clients have been in receipt of substantial unsought rental offers for use of roofspace areas for A3 use seating, as well as advertising uses. More details available on request. A Lane and Frankham measured areas survey report is available, providing a full break down of GIA areas and floor plans. 50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN 010

It is our opinion that the estimated rental value as of October 2018 would lie in the region of £830,130 pa as detailed in the tenancy schedule.

The most salient retail rental evidence can be set out as follows:

3 Mitcham Road (Pret a Manger) Open market letting September 2018 at a headline Zone A of

RENTAL VALUE RENTAL £155 per sq ft and a net Zone A of £145 per sq ft.

5/9 Mitcham Road (Holland & Barrett) Open market letting September 2018 at a headline Zone A of £155 per sq ft and a net Zone A of £145 per sq ft.

22 Mitcham Road (Snappy Snaps) Open market letting February 2018 agreed at a rent of £35,000 pa. reflecting a net Zone A of £123 per sq ft.

49 Tooting High Street (Vapourz Lounge) Open market letting November 2017 at a rent of £71,000 which reflected a net Zone A of £136.50 per sq ft.

Current prime office rents in this area of South West London stand at approximately £30 psf, depending on location and specification.

We are of the opinion that the ERV for the office space at the subject property is in the region of £20 psf. 50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN 011

Below we summarise the covenant strength of the key tenants:

Bank of Scotland t/a Halifax, accounts for 22% of the total income. As a leading UK High Street Bank and wholly owned subsidiary of Lloyds Banking Group, they provide an undoubted covenant and have a Creditsafe score of 87. Their most recent financial results are summarised below:

31/12/2017 31/12/2016 31/12/2015 Turnover £10,171,000,000 £11,091,000,000 £11,457,000,000 Pre Tax Profit’s £2,804,000,000 £3,395,000,000 £2,653,000,000 Shareholder’s Funds £13,512,000,000 £13,755,000,000 £15,111,000,000

HSBC Bank plc accounts for 21% of the total income. As one the largest banking and financial services organisations in the world they provide an undoubted covenant and have a Creditsafe score of 86. Their most recent financial results are summarised below: COVENANT INFORMATION COVENANT

31/12/2017 31/12/2016 31/12/2015 Turnover 19,760,000,000 £18,994,000,000 £18,630,000,000 Pre Tax Profit’s £2,370,000,000 £874,000,000 £2,971,000,000 Shareholder’s Funds £43,462,000,000 £39,930,000,000 £37,497,000,000

JD Wetherspoon plc accounts for 13% of the total income. As one of the leading pub companies across the UK, with over 1,000 outlets they provide an excellent covenant strength and have a Creditsafe score of 75. Their most recent financial results are summarised below:

30/07/2017 24/07/2016 26/07/2015 Turnover £1,660,750,000 £1,595,197,000 £1,513,923,000 Pre Tax Profit’s £76,364,000 £66,049,000 £58,732,000 Shareholder’s Funds £228,823,000 £58,732,000 £222,893,000 50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN 012

Due to the excellent location, substantial size, and regular shape of the site, with three roadside frontages the property offersconsiderable potential for redevelopment. An increase in site coverage and density, with greater massing through height is achievable, subject to the necessary consents. The location lends itself to many different uses including residential, student housing, retail, office, hotel and leisure. Student accommodation in Tooting currently achieves between £190 - £250 per week for ensuite accommodation with shared kitchen facilities. Alternatively, residential rental values in Tooting are approximately £1,500 pcm for well located 1 bed apartments. PLANNING The vendor has recently commenced a pre-application process to assess the planning options for the site, including residential, hotel and student housing options, within a seven-storey structure. We anticipate initial feedback will be received in the next few weeks. According to the Wandsworth local plan Tooting is classified as a Major Centre “where retailing, services, employment, leisure and housing should be promoted along with opportunities for mixed development”. The council is committed to the regeneration and redevelopment of brownfield sites in order to generate new jobs and new homes.

computer generated image 50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN 013

Investment Comparables EPC Recent sales of comparable London redevelopment sites: EPC ratings are available within the dataroom. Area Capital Capital PROPOSAL Address Date (sq ft) Value Value (psf) NIY Retail Park, Ilford Sep 2018 32,081 £17,650,000 £550.17 2.50% VAT The property is registered for VAT purposes. Shop Stop, Jun 2018 74,500 £133,000,000 £1,785.24 3.00% It is anticipated that the investment sale will Brixton Market, Brixton Mar 2018 41,461 £37,250,000 £898.43 3.03% be treated as a Transfer of A Going Concern Zennor Trade Park, Balham Sep 2017 - £30,100,000 - 2.90% (TOGC). Halfords, 316/324 Balham High Road Sep 2017 - £8,000,000 - 3.04% PROPOSAL We are instructed to seek offers in excess of £17,000,000 (Seventeen Million Pounds) subject to contract and exclusive of VAT for our client’s freehold interest, which reflects the following yield profile, assuming acquisition standard costs of 6.74%:

Net Initial Yield 3.20% Reversionary Yield 4.57% The sale price reflects a capital value of £795 per sq ft for the existing building, on a GIA basis. The property provides a purchaser with a unique opportunity for comprehensive re- development, within the short/medium term whilst also providing a well secured income return, with significant reversionary prospects. 50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN 014

Further information and documents are available within a dataroom. For access to the dataroom or to arrange an inspection please contact any of the following at joint agents JLL or Jackson Criss:

Neville Pritchard T 020 7087 5370 [email protected] M 07889 896872

Sarah Martin T 020 7852 4439 [email protected] M 07814 613379

Frankie Maddox T 020 7399 5744 [email protected] M 07525 872749

Florence Clark T 020 7852 4293 [email protected] M 07710 860253

FURTHER INFORMATION & CONTACT DETAILS DETAILS & CONTACT INFORMATION FURTHER Philip Hay T 020 7637 7100 [email protected] M 07770 580590

Liam Jones T 020 3714 0501 [email protected] M 07472 143 369

MISREPRESENTATION ACT JLL and Jackson Criss, for themselves and for the vendors of this property, whose agents they are, give notice that (i) the particulars and any further information communicated by any means to potential purchasers of the property described in the particulars, or their advisers, in connection with the possible sale of the property are provided solely for the purpose of assisting potential purchasers in deciding whether they wish to proceed with further investigation of the property and do not constitute either the whole or any part of an invitation, offer or contract for sale of the property; (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 as at the date of the particulars (or the date of the relevant information if earlier). However, potential purchasers are not entitled to rely on them as statements or representations of fact but should satisfy themselves by searches, enquiries, surveys and inspections or otherwise with regard to the accuracy of such details. No responsibility or liability is or will be accepted by JLL and Jackson Criss, the vendor(s) of the property or any of their respective subsidiaries, affiliates, directors, officers, representatives, employees, advisors, or agents for any loss or damage suffered by any party, resulting from reliance on the particulars or any other information communicated by any means to that party, or its advisers, in connection with the possible sale of the property. No person in the employment of Jones Lang LaSalle or the vendor(s) has authority to make or give any representation or warranty, express or implied, in relation to the property. References to JLL include any joint agents acting with Jones Lang LaSalle. Designed by Graphic Outlines Ltd. 2018