FREEHOLD ANNUAL RPI INDEX LINKED RENT REVIEWS CENTRAL LONDON INVESTMENT OPPORTUNITY Investment Considerations • The world famous London suburb of Camden is located less than 2 miles north of London’s West End and 3 miles west of Islington • Parkway forms one of the main commercial thoroughfares in Camden. Known predominantly for its vibrant food and beverage scene • Notable occupiers on Parkway include Whole Foods, Co-Operative Food, Cote and Caffe Nero • The property is let on a FRI lease to Strada Trading Limited (t/a 40 Zero) for a term of 45 years expiring 23 March 2041 2 • Rent is subject to annual uncapped RPI (All Items) linked uplifts The current passing rent (per annum): • The lease benefits from privity 40-42 Parkway Camden 40-42 Parkway £130,732 of contract with surety from Estimated Rental Value: The Restaurant Group PLC £183,000 • Deliverable asset management Price: opportunities to add considerable £3,990,000 value, including potential development over the rear and Net Initial Yield: upper parts (STPP) 3.08% Reversionary Yield: • Freehold 4.31% KENTISH TOWN BELSIZE PARK KENTISH TOWN WEST KENTISH TOWN Road Prince Of Wales CHALK d FARM a Ro Royal d n a Ro Adelaide Road Colle mden ge Street Chalk Ca ntish Tow F arm Ke Roa Ro ad y d Hawle CAMDEN ROAD Y o r k W a PRIMROSE y Camden HILL REGENT’ S PRIMROSE HILL CAMDE N Stree CANAL TOWN t L ay kw Camden High Street Par Prince Albert Road MORNINGTON Pa ncras Road Yo CRESENT r k Wa y Pancras Road KING’S E versh CROSS olt Street KING’S CROSS REGENTS PARK Hampstead Road ST PANCRAS INTERNATIONAL EUSTON ton Road Eurs Location Camden is well served by the London Underground The world famous London suburb of Camden is located less than network, being located on the Northern Line, which 2 miles north of London’s West End and 3 miles west of Islington. 3 provides swift access to the West End and the City. In The suburb comprises approximately 22 square kilometres, addition access to Kings Cross, Euston, the West End and located within 10 minutes of the West End and the City of London the City of London. and less than a mile from Euston, Kings Cross and St Pancras. 40-42 Parkway Camden 40-42 Parkway Camden is a mixed, colourful and vibrant part of North London in the NW1 and NW5 postcodes. Often associated with alternative Camden Road Rail Station offers regular services to culture, Camden Town is most known for its bustling markets. Richmond, Clapham and Stratford. The international rail However, the music venues, bars and pubs are all increasingly terminal at St Pancras is located less than 5 minutes away popular destinations for visitors to the capital and Londoners from via the Northern Line. across the city. Camden also benefits from communications with the A1, A41, A5 and the A502 all within close proximity. Numerous bus services also operate along Camden High Street. Heathrow Oxford King’s Cross London Canary London Airport Circus St Pancras Int Bridge Wharf City Airport Camden boasts extremely low levels of vacancy Demographics Camden has an affluent and thriving population of approximately 253,400, which is expected to increase by 7.3% by 2024 (Source: ONS Report). Camden comprises only 1.4% of greater London by area, but is home 4 to 7% of London’s employment, and 2.9% of its population (Source: Camden Council Report). Camden is home to the second 40-42 Parkway Camden 40-42 Parkway The age and gender profile of highest number of businesses in Camden is very similar to London but London after Westminster and is 3rd relatively younger than England with highest in the UK. There were 34,745 significantly greater proportions of registered enterprises in Camden adults aged between 25-40 years. in 2018, a 5% increase on 2017, and Furthermore, the percentage of the has grown 44% since 2008 (Source: local population that are of working Camden Council Report). age in the Camden area is well above the UK average, with 73% aged Camden’s centres boast extremely between 16-64. low levels of vacancy. Situation Parkway forms one of the main commercial thoroughfares in Camden. Known predominantly for its vibrant food and beverage scene, the street benefits from high levels of pedestrian footfall, benefitting from its situation between Camden Town and Regents Park. The subject property is situated in a prime position on Parkway, close to the junction with Arlington Road. Notable occupiers on Parkway include: Parkway also houses a number of extremely popular independent operators. 5 Description Camden 40-42 Parkway The property forms a striking three-storey mixed-used building with a restaurant premises (A3) at ground floor level. The upper parts comprise residential accommodation (C3) over first and second floor levels forming, 2 self-contained apartments. The residential accommodation benefits from separate access to the ground floor restaurant via Parkway. Covenant Information Accommodation Strada Trading Limited (Company Number: 9546880). Strada Trading Limited is a high street Italian restaurant chain, specialising in pasta and wood-fired pizzas. 6 The property provides the following approximate Net Internal Areas: 40 Zero is a fresh brand stemming from Strada Trading Limited. 40 Zero provides a vibrant atmosphere, supported by trade throughout the day as a café and lunch spot, followed by a live music venue throughout the night. Floor Use sq ft sq m 40-42 Parkway Camden 40-42 Parkway Ground Sales 1,464 136.1 The lease benefits from privity of contract with surety from The Restaurant Group PLC (Company Number: SC030343). The Restaurant Group PLC is one of ITZA 905 units the UK’s largest food and beverage operators, and is a constituent on the FTSE Ancillary 1,267 117.7 250 index. The company comprises several successful food and beverage chains, including Frankie & Benny’s and Chiquito’s. The company recently acquired the First Residential 682 63.4 extremely popular restaurant chain, Wagamama’s, in December 2018 for £559m. Second Residential 682 63.4 The Restaurant Group PLC 31/12/2017 4,095 380.6 boasts a CreditSafe Rating of Turnover £679,282,000 A-87 (Very Low Risk). A summary The apartments comprise two large and well of the company’s most recent Pre Tax Profit £43,586,000 configured 3 bedroom apartments. accounts are as follows: Net Worth £175,467,000 Camden Town Parkway forms one of the main commercial thoroughfares in Camden. Known predominantly for its vibrant food and beverage scene. 40 ZERO Tenure 7 Freehold. PARKWAY Tenancy Camden 40-42 Parkway The property is let in its entirety to Strada Trading Limited (t/a 40 Zero) for a term of 45 years expiring 23 March 2041. The rent is reviewed annually on the 25th day of March and is subject to uncapped RPI (All Items) linked uplifts. The current passing rent is £130,732 per annum. ‹ Regents Park For indicative purposes only. Title plan available upon request. Experian Goad Plan Created: 04/04/2019 50 metres Created By: Fawcettmead Copyright and confidentiality Experian, 2019. © Crown For more information on our products and services: copyright and database rights 2019. OS 100019885 www.experian.co.uk/goad | [email protected] | 0845 601 6011 Residential Investment Value A HMO license has been granted recently by Camden Council for the upper parts (Licence Number. 88321). The upper floors are sub-let by way of two AST agreements commanding approximately £650 pw per flat, equating to 8 a total passing rent of £67,608 per annum. At lease expiry, or earlier if an agreement can be reached Rental Value with the occupier, the upper floors provide a distinct opportunity to realise considerable value. 40-42 Parkway Camden 40-42 Parkway Basing off a supportable Zone A rate of £135 psf, we are of the opinion that the estimated rental value of the commercial ground Recent sales evidence suggests that the first and second floor in isolation is £122,000 per annum. floor flats are potentially worth in excess of £1,000 psf. We are of the opinion that the estimated rental value of the upper Taking the evidence into consideration we are of the floors is £650 per week, per flat. Less a 10% management fee, this opinion that the flats in this location and are worth in equates to a total rental value of £60,840 per annum. excess of £1,364,000 (£682,000 per flat). Therefore, we feel the rental value for the subject property is Further information available upon request. £183,000 per annum. 9 40-42 Parkway Camden 40-42 Parkway Deliverable asset Development Potential We are of the opinion that there is a realistic opportunity to add massing over the management rear and upper parts of the property in the short term, subject to the necessary opportunities to add planning consents. considerable value Further information available upon request. 10 VAT Proposal Camden 40-42 Parkway The property has been elected for We are instruction to seek offers in excess of VAT purposes. It is anticipated that the investment sale will be treated as a £3,990,000 (Three Million Nine Hundred and Ninety Transfer of a Going Concern (TOGC). Thousand Pounds), Subject to Contract and Exclusive of VAT. Allowing for purchasers costs of 6.54%, a EPC purchase at this level would reflect a net initial yield EPC available upon request. of 3.08%, and a reversionary yield of 4.31%. Further Information For further information please contact us or our joint agent, Robert Irving Burns, as below: Graham Fawcett [email protected] 020 7182 7482 Joe Baio [email protected] 020 7182 7489 11 40-42 Parkway Camden 40-42 Parkway Damien Field [email protected] 020 7927 0620 Adam Ben-Harosh [email protected] 020 7927 6331 Misrepresentation Act: The particulars in this brochure are believed to be correct, but accuracy cannot be guaranteed and they are expressly excluded from any contract.