PRIME FREEHOLD INVESTMENT OPPORTUNITY IN THE HEART OF SOHO

Transcription

1 2 9 G R E A M A R L B O R O U G H S R E E, S O H O, W 1 PRIME FEHOLD INVEMEN OPPORUNIY IN HE HEAR OF SOHO

2 SHAKESPEA S HEAD Investment Summary 2 UNIQUE OPPORUNIY O ACQUI A SECULY L PUBLIC HOUSE ON ONE OF SOHO S MO FAMOUS S RA CORNER FEHOLD OAL GIA OF 5,244 SQ F (487.1 SQ M) LEASE GUARANEED BY HE 5A1 COVENAN SPIRI PUB COMPANY (SGE) LD, A WHOLLY OWNED SUBSIDIARY OF GEN KING PLC 25.5 YEARS ERM CERAIN WIH FIXED ANNUAL UPLIFS PROVIDING GUARANEED NAL PERFORMANCE CURN PASSING N OF 680,141 PER ANNUM PRICE: 18,200,000 NIY: 3.50% MARCH 2025: 4.00% MARCH 2030: 4.50% MARCH 2035: 5.10% MARCH 2040: 5.80% RY: 6.25% 3

3 GEN PARK JAMES S MAYFAIR BOND GEN GOLDEN SQUA SHAKESPEA S HEAD BOND AION (HANOVER SQUA ENRANCE) CARNABY LIBERY LONDON OXFORD OXFORD CIRCUS SOHO

4 SHAKESPEA S HEAD Location BORDED BY HE EXCLUSIVE MAYFAIR AND JAMES S O HE WE, HE VIBRAN CAIVIY OF FIZROVIA O HE NORH AND HE INERNAIONALLY NOWNED ENERAINMEN OF COVEN GARDEN O HE EA, SOHO HAS LONG BEEN CONSIDED LONDON S MO COSMOPOLIAN VILLAGE. An abundance of modern developments combined with the refurbishment of existing buildings has converted Soho into the hub of London s media, art, fashion, film and music industries. A mix of boutiques centred around Carnaby Street complement the world-renowned international retail line-up on Oxford Street and Regent Street creating an unrivalled and unique retail experience. Soho is home to several internationally renowned boutique hotels including he Soho Hotel, Sanctum Soho Hotel and the Ham Yard Hotel and some of London s most fashionable bars such as Dean Street ownhouse, Social Eating House, HIX, Soho House and Ronnie Scott s. 7

5 SHAKESPEA S HEAD SHAKESPEA S HEAD SIUAION PROMINENLY LOCAED ON HE JUNCION OF GA MARLBOROUGH, FOUBER S PLACE AND CARNABY. Shakespeare s Head has dual frontage to both Great Marlborough Street and Foubert s Place and forms the gateway to the world renowned Carnaby Street. OENHAM COUR ROAD E D R OXFOR OENHAM COUR ROAD SOHO SQUA CHA R WA OXFORD CIRCUS UR E CRO CK E R OAD SS R AN E DE R I RW BE E OL E AK BE SOHO GOLDEN SQUA W AR W K IC OM DC P R COVEN GARDEN BR ER EW AF SH UE EN V YA UR B ES LEICEER SQUA MAYFAIR EE CO ND UI EE N O R N O ING ICK W AD O BR ON G IN LEX N GE W NE RL BU EE R YS AB RN CA U FO CE LA SP R E B VER ANO RING DO R R MA H AND G A UG RO POL O RLB H CE PLA FIZROVIA NE BO H RA SHAKESPEA S HEAD Carnaby Estate has become one of London s most established retail destinations with retailers and restaurants including; C.P. Company, Replay, American Apparel, he Kooples and Polpo. he Carnaby Estate also provides approximately 42,000 sq ft of residential accommodation. PICCADILLY CIRCUS 8 9

6 SHAKESPEA's HEAD

7 SHAKESPEA S HEAD Description AN ICONIC, PERIOD PROPERY OCCUPYING A PROMINEN POSIION ON HE CORNER OF ONE OF LONDON S MO FAMOUS SHOPPING S. he property is well presented having benefited from a refurbishment in It trades under the aylor Walker brand offering a traditional British pub experience which is extremely popular with tourists and local residents. GROUND FLOOR his imposing corner public house is of brick construction under a pitched roof and arranged over basement, ground and four upper floors. UPPER FLOORS Main trading area fitted out to a high standard providing a mix of seating around a central bar servery. First floor provides a restaurant area with a bar and a variety of seating and tables along with customer WCs. At second floor level there is a catering kitchen, office and store room. he third floor includes a staff room, living room, kitchen, bathroom and WC. he fourth floor provides a further three bedrooms, bathroom and WC. BASEMEN Providing customer WC s a beer cellar and various store rooms. GROSS INERNAL AAS ((GIA):FLOOR SQ F (GIA) SQ M (GIA) FOURH HIRD SECOND FIR GROUND BASEMEN 1, OAL 5,

8 SHAKESPEA S HEAD enure FEHOLD E R E LAC 'S P rd llin we gs e ac Pl COVENAN H e ac Pl t ur Co e tre e ub Fo rt's s de wn Lo RG RL MA BE R U WB NE E H F rt's be ou ys ab rn Ca L LI UG RO BO St F OU s te min es t fw yo Cit L h ug oro rlb a em ittl GA MARL BOROUGH EA GR U RO LBO R MA S GH t Ma t hc ug oro rlb ON N GA Ga n nto St Not to scale. For identification purposes only. his plan is based upon the Ordnance Survey Map with the sanction of the controller of H.M. Stationery Office. Crown Copyright reserved. ENANCY Single let to the Spirit Pub Company (Managed) Ltd and guaranteed by Spirit Pub Company (SGE) Ltd. From 25th March 2022 and five yearly thereafter until 25th March 2032 the landlord has the option of 2.5% annual uplifts or upward only open market rent reviews. he property is effectively let without break until 24th March 2044 by way of a lease and a reversionary lease (providing 25.5 years of unbroken income). From 25th March 2034 under the reversionary lease this reverts to fixed annual 2.5% uplifts until 25th March Passing rent of 680,141 per annum. From the 25th March 2037 and five yearly thereafter until expiry of the reversionary lease the landlord has the option of 2.5% annual uplifts or upward only open market rent reviews. he rent is subject to fixed annual increases of 1.25% increasing to 2.5% per annum from March 2022 until expiry of the current lease. he tenant has an option to renew their lease for a further 20 years at the end of the reversionary lease. he next increase is on 25 March 2019 and yearly thereafter. th 14 Spirit Pub Company was acquired in 2015 by Greene King Plc with the combined company becoming the largest managed pub company in the UK. he combined Greene King group now operates approximately 3,100 public houses throughout the UK. Loch Fyne Seafood and Grill and aylor Walker. hey are also the UK s leading cask ale brewer with brands such as Greene King IPA and Old Speckled Hen. Greene King plc is listed on the London Stock Exchange and is a FSE 250 company. Greene King operates popular national brands such as Hungry Horse, Old English Inns and Financial Performance is set out below: CONINUING OPERAIONS YEAR END 30 JUNE 2018 YEAR END 30 JUNE 2017 Revenue 2,176,700,000 2,216,500,000 Operating Profit 373,100, ,500,000 Profit Before ax 243,000, ,500,000 Spirit Pub Company (SGE) Ltd has a D&B score of 5A1 which represents a minimum risk of business failure. he latest company financial performance is set out below: YEAR END P-AX PROFI N ASSS ,164,000 70,658, ,894,000 80,187, ,165,000 82,246,000 15

9 SHAKESPEA S HEAD SHAKESPEA S HEAD Market Commentary FURHER INFORMAION LONDON CONINUES O BE A KEY INVEMEN DEINAION FOR DOMEIC AND OVERSEAS CAPIAL DUE O IS RANSPAN AND COMPIIVE MARK, EABLISHED LEGAL SYEM, EXCELLEN GROWH PROSPECS AND ARACIVE INCOME YIELDS IN COMPARISON O OHER ASS CLASSES. PLANNING EPC he property is situated within the London Borough of Westminster. he property is not listed and sits within the Soho Conservation area. he property has an EPC rating of D. Long dated income, secured to institutional grade covenants with fixed annual reviews, like the Shakespeare s Head are proving particularly attractive investment opportunities given the uncertainty surrounding Britain s referendum decision to leave the European Union. VA he property has been elected for VA purposes and it is intended to treat the transaction as OGC so that VA will not be payable upon the purchase price. PROPOSAL Offers in excess of 18,200,000 subject to contract and exclusive of VA. Reflecting an net initial yield of 3.50% (assuming purchasers costs of 6.8%). Recent comparable investment transactions include: PROPERY PRICE N INIIAL YIELD % DAE he Miller, Bermondsey, SE1 7,100, % Q Builders Arms, Chelsea, SW3 4,370, % Q Prince of Wales, Covent Garden, WC2 10,450, % Q Red Lion, St James s, W1 2,800, % Q Queens Arms, Pimlico, SW1 3,560, % Q Pizza Express, Soho, W1 4,700, % Q Walmer Castle, Notting Hill, W11 5,600, % Q Nellie Dean, Soho, W1 4,900, % Q wo Chairmen, St James Park, SW1 5,280, % Q Goat, Kensington, W8 8,220, % Q Regent, Islington, N1 2,800, % Q L Entrecote, Soho, W1 8,370, % Q St James avern, Piccadilly, W1 Duke of Wellington, Soho, W1 CONACS Dominic Rowe dominicrowe@michaelelliott.co.uk Richard Carter richardcarter@michaelelliott.co.uk Nathan Sugar sugar@michaelelliott.co.uk Peter Ng (Michael Elliott Asia) peterng@michaelelliott.co.uk Misrepresentations Act 1967 & Declaration: c. 25,000,000 Admiral Duncan, Soho, W1 16 c.3.40% Q Michael Elliott for themselves and for the vendors of this property whose agents they are given notice that: a) the particulars are set out as general outline only for the guidance of intending purchasers and do not constitute, nor constitute part of, an offer or contract; b) 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, but any intending purchaser should not rely on them as statements or representations of fact but should satisfy themselves by inspection or otherwise as to the correctness of each of them; c) no person in the employment of Michael Elliott has any authority to make or give any representations or warranty whatever in relation to this property. November (Q4206)

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