Woodford Green 735 Chigwell Road, Ig8 8As

Home , M11 motorway, Snaresbrook, Travelodge, Travelodge UK, Woodford Green

TRAVELODGE WOODFORD GREEN 735 CHIGWELL ROAD, IG8 8AS

LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP WOODFORD GREEN TRAVELODGE, 735 CHIGWELL ROAD, IG8 8AS

INVESTMENT CONSIDERATIONS PROPOSAL

■ Attractive purpose-built hotel providing ■ Contracted rent of £233,794 per annum Offers sought in excess of £3,660,000 (Three Million Six Hundred and Sixty Thousand 34 rooms totaling 11,260 sq ft (GIA) ■ Lease subject to 5 yearly uncapped rent Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a ■ 15 minute walk from Chigwell reviews, with RPI indexation Net Initial Yield of 6.00% assuming standard purchaser’s costs and a low capital rate Underground Station, providing of only £325 psf. ■ Excellent potential to provide an Central Line Services alternative residential focused use, Yield profile assumes 2.5% uplifts per annum ■ 1.3 miles from Junction 4 of the M11 Motorway subject to vacant possession and providing direct access to the M25 Motorway, necessary consents Review Date Running Yield Bishops Stortford and Cambridge ■ Residential studio rents in the area 2025 6.79% ■ Let to Travelodge Hotels Limited on an FRI achieving £800 pcm (£9,600 p.a.) which lease expiring 09/08/2035, thus having potentially could provide a total income 2030 7.68% 14.4 years unexpired for the property of £326,400 per annum 2035 8.69% ■ Landlord option to require the tenant assuming they were let on this basis to enter into a reversionary lease of ■ Residential sales are achieving £500 psf 5 years, 11 months and 7 days from in the area DATAROOM 10/08/2035 which if exercised provides ■ For access to the Allsop Marketing Data Room, please use the following link: a term of 20.3years unexpired Leasehold. 225 years from 10/08/2010, providing an unexpired term of 214 years https://datarooms.allsop.co.uk/register/travelwoodfoodgreen at a ground rent of £10 per annum.

LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP A505 Stevenage Dunstable Stansted Luton A120 A418 LUTON A5 A10 A602 M1 A1(M) A44 A131 Aylesbury A130 A34 WOODFORD GREEN Harpenden Hertford A40 TRAVELODGE, 735 CHIGWELL ROAD, IG8 8AS A414 M11 A41 Hemel Harlow A12 OXFORD Hatfield Hempstead St Albans A4142 Thame M10 A414 Chelmsford A138 A420 J21 A414 A404 Chipping A4010 Chesham J20 Epping J23 Ongar J19 J25 M25 J27 High Borehamwood Buckhurst Hill M25 Watford Enfield Wycombe A355 A1 M1 WOODFORD Chigwell A130 Beaconsfield Billericay GREEN A413 J28 Wickford M40 Harefield A404 J2 Walthamstow Snaresbrook A127 A12 J29 Marlow Ruislip Basildon J16 Hampstead A10 Romford Wembley Ilford Hurley Uxbridge A40 Southend-on-Sea A34 Maidenhead Canvey SLOUGH A13 M25 Dagenham Island A404(M) SouthallLONDON London Eton J15 M4 City Windsor Hounslow A2 READING Clapham M4 Heathrow Dartford A329(M) Ashford Gravesend Sheerness Egham Kingston Bracknall A20 J2 Upon Thames LOCATION Ascot Bromley J12 A23 M3 J3 Gillingham Woodford Green is a busy and affluent Woodford Green is surroundedA322 by Chingford (approximately 1 mile), Buckhurst Hill (approximately 1 mile), Loughton (approximately Rochester Walton-on-Thames Croydon residential area. The town is strategically 2 miles) and Chigwell (approximately 2 miles) The area is famed for being part of Essex’s’A232 Golden Triangle withA21 many Premiership M2 M25 M20 footballers living in the area and Tottenham Hotspur’sM25 training facilities situated in theSutton immediate vicinity. located between London (approximately Sandhurst Epsom Sittingbourne Woodford has excellent road communications being situated at the bottom of the M 11 Motorway, where it meets the A 406 North Snodland 12 miles to the south west) and Chelmsford J10 A217 Circular Road. Woodford Green and ChigwellWoking Underground Stations are both situated on the Central Line andBiggin provides Hill direct access A339 to Liverpool Street Station in approximately 20 mins and the West End of London in approximatelyA22 32 mins. All of London’s airports (approximately 18 miles to the north east). J9 J5 M26 M20 areM3 easily reached via the M11 and M25 London Orbital. BASINGSTOKE Fleet M25 A331 A3 Maidstone J8 J7 J6 A34 Oxted Aldershot Reigate A26 GUILDFORD Dorking Redhill Famham A21 A24 Tonbridge ROAD (from Chigwell Underground Station) M23AIR A303 Godalming RAIL Horley Paddock Royal M11 1.3 mile Bank Station 33 mins Luton Airport 39 miles Wood Staplehurst Gatwick Alton Witley Tunbridge M25 12 miles HolbornCranleigh Station 38 mins Heathrow Airport 30 miles Wells A229 A31 A406 6.8 miles City Thameslink 44Crawley mins London City 9 miles Three Bridges A12 8 miles St Pancras International 51A264 mins Stansted Airport 28 miles

Horsham

LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP A23 Haywards Heath WOODFORD GREEN TRAVELODGE, 735 CHIGWELL ROAD, IG8 8AS

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SITUATION R DESCRIPTION The property is strategically situated The property is of traditional construction clad externally with brickwork under a pitched tiled adjacent to Chigwell Golf Club on the roof It is arranged over ground and first floors providing a total of 34 en suite bedrooms. A 113 which links the North Circular The hotel benefits from shared car parking with the adjoining public house. Road with Junction 4 of the M 11 Motorway The surrounding area is TENURE mainly high quality residential uses with some light commercial use. Leasehold 225 years from 10/08/2010 providing an unexpired term of 214 years at £10 per annum.

ACCOMMODATION & TENANCY SCHEDULE

Tenant Floor Area GIA Area GIA No. of Rooms Lease Start Rent Review Lease Expiry Passing Rent £ pa Comments (sq ft) (sq m)

Travelodge Hotels Limited Ground 5,734 532.71 34 10/08/2010 10/08/2030 09/08/2035 £233,794 5 yearly uncapped rent reviews, First 5,526 513.38 (14.4 years unexpired) with RPI indexation

Total 11,260 1,046.09 £233,794

*There is an option for the landlord to require the tenant to enter into a reversionary lease of 5 years, 11 months and 7 days from 10/10/2035 which if exercised provides 20.3 years unexpired.

Subject Property Demise ––––––– Mitchells & Butlers Demise (excluded from sale) –––––––– LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP WOODFORD GREEN TRAVELODGE, 735 CHIGWELL ROAD, IG8 8AS

COVENANT KEY STATISTICS (FY 2019)

588 44,832 80.6% Hotels Rooms Occupancy KEY HIGHLIGHTS Travelodge Hotels Limited • UK’s second largest hotel brand based on number of hotels and rooms

• Positioned in the attractive value segment £51.82 £41.75 £727.9m with 588 hotels and serving 19m business ADR RevPAR Revenue and leisure customers

• Well invested modernised hotel portfolio

• Well balanced approximately even business / leisure customer split £ 3 37. 8 m £129.1m 1.6x • Almost 90% booking direct, with c. 80% £129.1m EBITDAR EBITDA Rent Cover through own websites EBITDA • Low upfront capex leasehold model

2020 TRAVELODGE CVA TRAVELODGE UK HOTEL DISTRIBUTION (AS OF MARCH 2020) On 19/06/2020, Travelodge creditors voted to INTERNATIONAL approve a Company Voluntary Arrangement (CVA) UNITED KINGDOM to restructure leases, to enable Travelodge to London Regions Spain Ireland navigate the short-term challenges faced as a business as a result of the COVID-19 situation. • 76 hotels • 498 hotels • 5 hotels • 11 hotels 06/11/2020 Travelodge has confirmed that its share- • 9,802 rooms • 33,756 rooms • 621 rooms • 858 rooms holders will go ahead with the £30m equity contribution. • 22% of total rooms • 75% of total rooms • 1% of total rooms • 2% of total rooms

LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP WOODFORD GREEN TRAVELODGE, 735 CHIGWELL ROAD, IG8 8AS

FLOORPLANS

Subject Property Demise ––––––––

LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP WOODFORD GREEN TRAVELODGE, 735 CHIGWELL ROAD, IG8 8AS

A505 Stevenage Dunstable Stansted Luton FASTEST LONDON LUTON A120 A418 RESIDENTIAL SALES MARKET A5 A10 TRAVEL TIMES A602 M1 A1(M) A44 A131 Situated in East London, Redbridge is one Walthamstow 18 minutes A130 A34 Aylesbury Harpenden of London’s greenest boroughs with 40% of its Ilford 18 minutes Hertford land devoted to open spaces. Ambitious plans A40 A414 M11 Snaresbrook 26 minutes are underway to redevelop Redbridge’s main A41 Hemel Harlow A12 OXFORD Hatfield Hempstead St Albans town and administrative centre; Ilford, driven by A4142 ThameWoodford 31 minutes M10 Chelmsford A138 the arrival of three new Elizabeth Line stations. Dagenham 32 minutes A414 A420 J21 A414 A404 Chipping Buckhurst HillA4010 34 minutes Chesham J20 Epping Average J23 Ongar Chigwell 42 minutes J19 J25 M25 J27 Flat Price High Borehamwood Buckhurst Hill M25 Watford Enfield (£500 psf) Wycombe A355 A1 £350,000 M1 WOODFORD Chigwell A130 Beaconsfield Billericay GREEN A413 J28 Wickford House price growth M40 Harefield A404 J2 Walthamstow over last five years Snaresbrook A127 A12 J29 Marlow Ruislip Basildon J16 Hampstead A10 Romford 41% Wembley Ilford Hurley Uxbridge A40 Southend-on-Sea A34 Maidenhead Canvey Average price growth SLOUGH A13 M25 Dagenham Island 5-year forecast A404(M) SouthallLONDON London Eton J15 M4 City 17% Windsor Hounslow A2 READING Clapham M4 Heathrow Dartford A329(M) Ashford ForGravesend Comparative Purposes Only. Sheerness Egham Kingston Bracknall A20 J2 Upon Thames Ascot J12 Bromley M3 A23 FUTURE DEVELOPMENTA322 WOODFORD GREEN RESIDENTIAL J3RESIDENTIAL RochesterLETTINGGillingham MARKET Walton-on-Thames Croydon A232 A21 M2 POTENTIAL MARKET OVERVIEW M25 WoodfordM20 Green is a popular commuting destination M25 Sutton EXISTING RENTAL ASSETS ON THE Sandhurst Epsom Sittingbourne Strong residual value with excellent The property sits in Redbridge, a primarily residential borough, with excellent accessSnodland to the M11, The North Circular MARKET ARE COMMANDING RENTAL J10 A217 future redevelopment potential. inWoking North East London. Biggin Hill Road and Central Line Underground services. Existing LEVELS WITHIN THE REGION OF: A339 A22 J9 J5 stockM26 comprises a goodM20 mix of house and apartment The propertyM3 comprises a purpose The borough benefits from excellent Central London transport links BASINGSTOKE Fleet M25 buildings, albeit of dated build with relatively limited built hotel investment withinA331 includingA3 the Central Line and TfL Rail, which will improve further Maidstone J8 J7 J6 A34 an established residential area Oxted new build accommodation due to consistent land Aldershot with the introduction of Crossrail.Reigate A26 Studios One Beds directly neighboring the Three Jolly GUILDFORD supply shortages in recent decades. The borough benefits fromDorking the 4th highestRedhill projected percentage £800 pcm £1,000 pcm Wheelers Pub. Famham DueA21 to location outside of the North Circular Road, increase in population, amongstA24 English Local Authorities. Two Beds M23 WoodfordTonbridge Green has historically traded at a discount A303 Given the nature of construction Godalming The borough also recently recorded theHorley 2nd largest average Paddock £1,350 pcm Royalto more London centric urban conurbations. Following and already highly efficient internal Wood Staplehurst household size amongst EnglishGatwick Local Authorities (2014). layout,Alton the property would lend Witley Tunbridgeimprovements to transport links in recent years, Cranleigh Wells itself to alternative uses, including Redbridge Local Authority has consistently under-delivered against this gap continues to narrow andA229 the location is A31 Crawley residential, subject to necessary its housing targets since 2007/08. Three Bridges increasingly popular with commuters given close consents. The current target is 1,123 homes perA264 annum with a limited current proximity to Central Line services. The potential exists to benefit from increasing rental values through the supply of developmentHorsham sites. delivery of a high quality rental product, of which, is The Local Planning Authority has implemented a strategy of proactive currently in short supply within the locality. engagement with developers and land owner engagement. A23 Haywards Heath

LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP EPC The property has an EPC rating of C(63).

VAT The property is elected for VAT and it is anticipated that the transaction will be treated as transfer of a going concern (TOGC).

ANTI-MONEY-LAUNDERING A successful bidder will be required to provide information to satisfy the AML requirements when Head of Terms are agreed.

DATAROOM For access to the Allsop Marketing Data Room please use the following link: https://datarooms.allsop.co.uk/register/travelwoodfoodgreen

PROPOSAL Offers sought in excess of £3,660,000 (Three Million Six Hundred and Sixty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 6.00% assuming standard purchaser’s costs and a low capital rate of only £325 psf.

Yield profile assumes 2.5% uplifts per annum

Review Date Running Yield 2025 6.79% 2030 7.68% 2035 8.69%

For further information or to make arrangements for viewing please contact:

National Investment Lottie Hayward Andrew Wise 07817 549 237 07535 045 149 [email protected] [email protected] 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 03.21