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 BROXBOURNE stations on the new £27 billion route supporting an additional TO NEW SOUTHGATE 9,000 passengers per day. TOTTENHAM HALE 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 TOTTENHAM COURT ROAD Fulham Broadway VICTORIA Imperial Wharf Pimlico KING’S ROAD CHELSEA River Thames CLAPHAM JUNCTION CLAPHAM Putney Queenstown Road East Putney JUNCTION Towards the Vauxhall Towards City (Bank) TOOTING Richmond Battersea BALHAM 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 Towards Clapham North TO CHESSINGTON SOUTH Northern Maps not to scale Extension Gatwick TO HAMPTON COURT indicative only TO SHEPPERTON 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 Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432.D Plotted Scale - 1:1000 Shareholders Funds £1,772,000,000 £1,204,000,000 £1,133,000,000 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.