25-27 FARRINGDON ROAD, LONDON, EC1. Prime City Fringe Retail Investment for sale

Transcription

1 25-27 FARRINGDON ROAD, LONDON, EC1 Prime City Fringe Retail Investment for sale

2 LOCATION The property is located in the heart of Clerkenwell, an area which has successfully reinvented itself during the past 20 or so years. The premises are situated in a prominent position on the west side of Farringdon Road, at the junction with Greville Street, immediately opposite Farringdon Station. Farringdon Road is a thriving mixed-use destination between the West End and the City of London and will benefit from the investment in Crossrail. The area is currently home to many occupiers from the Financial and Creative industries as well as a number of boutique retailers. RETAIL ON FARRINGDON ROAD The retail pitch in the immediate locality is solely situated on western side of Farringdon Road, beginning at the junction with Cowcross Street/Greville Street (where the subject property is located) until the junction with St Cross Street. This junction with Greville Street/Cowcross Street is the first frontage visible to those exiting the station onto Farringdon Road. The adjoining retail unit is occupied by a Sainsburys Local, which affirms the strength of the location for retailers. Other notable retailers in this pitch are JD Wetherspoon, Post Office, Tesco Express, Papa Johns and Winkworth Estate Agents, with Costa Coffee and Pret-a-Manger nearby. DESCRIPTION The long leasehold investment forms the Ground and Basement floor of this 7-storey property and comprises a unit of sqm (4,465.98sqft). The Gross Frontage is circa 23m (75 feet). The building is Grade II listed and was originally built in the late-19th Century, presenting an imposing Venetian Gothic façade to the street scene and featuring a unique corner turret. The building was substantially redeveloped by Berkeley Homes in the late 1990s, creating apartments throughout the upper floors and a Retail unit at Ground and Lower Ground floor. Misrepresentation Act These particulars are intended only to give a fair description of the property and do not form the basis of a contract or any part thereof. These descriptions and all other information are believed to be correct but their accuracy is no way guaranteed.

3 MAJOR INFRASTRUCTURE INVESTMENT - CROSSRAIL In December 2011, a new ticket hall opened (opposite the subject property) which is dedicated to Thameslink and future Crossrail passengers opened. This provides new ticket facilities and extra capacity and improved access for passengers. Crossrail s Elizabeth line opens in 2018 and will make Farringdon Station one of the busiest in the UK, connecting Thameslink and the London Underground, thus linking to outer London, the Home Counties, the City, Canary Wharf and three of London s major airports (Heathrow, Gatwick, and Luton) and to Eurostar services. The number of journeys and capacity will increase significantly and key journey times will be reduced by 20%-40%. With up to 24 trains an hour running in each direction on Thameslink and Crossrail, including tube trains Farringdon will be served by over 140 trains an hour. PADDINGTON TOTTENHAM COURT ROAD LIVERPOOL STREET According to Ove Arup & Partners Limited ( The Impact of Crossrail on Visitor Numbers in Central London - January 2014): Farringdon station could achieve demand of some 41 million passengers per annum and, on average, some 153,000 passengers per day in These figures represent an increase of some 150% compared to current totals. CUSTOM HOUSE BOND STREET WHITECHAPEL FARRINGDON CANARY WHARF WOOLWICH FARRINGDON Misrepresentation Act These particulars are intended only to give a fair description of the property and do not form the basis of a contract or any part thereof. These descriptions and all other information are believed to be correct but their accuracy is no way guaranteed.

4 DEVELOPMENT IN FARRINGDON/CITY FRINGE The following developments have recently been completed or are proposed for the locality, demonstrating the confidence from Investors and Occupiers in this area. Development Scheme Timescale Developer 60 Holborn Viaduct 212,000 sq ft of redeveloped Grade A office Complete July 2013 AXA Real Estate 1&2 New Ludgate, EC4 352,000 sq ft of redeveloped Grade A office 30,000 sq ft of retail accommodation Completed April 2015 Land Securities 40 Chancery Lane, WC2 101,800 sq ft of redeveloped Grade A office Completed Developer Completed July 2015 Derwent 1 New Street Square, EC4 266,000 sq ft of redeveloped Grade A office 5,000 sq ft of retail accommodation Completion Completed June 2016 Land Securities New Fetter Lane, EC4 147,171 sq ft of redeveloped Grade A office Completed September 2016 Great Portland Estates Charterhouse Place 165,764 sq ft of redeveloped Grade A office 15,069 sq ft of retail accommodation Completion due Q TIAA Henderson 98 Fetter Lane, EC4 58,342 sq ft of redeveloped Grade A office Pre-let to Macfarlanes Completion due Q Brookfield Goldman Sachs Headquarters, EC4 1,000,000 sq ft of redeveloped Grade A office Completion due 2017/18 Goldman Sachs Campus Barts Square, EC1 236 high quality apartments 230,000 sq ft of retail/restaurant/café accommodation Completion due Q Helical Bar Farringdon Station 207,000 sq ft of redeveloped grade A office with retail units 2018 Crossrail/ Cardinal Lysander Smithfield Quarter Creation of a new Museum of London 2021 City of London Corporation Holborn Viaduct 116,250 sq ft of redeveloped Grade A office 246 Bedroom hotel Planning Granted CitizenM/CHIL Misrepresentation Act These particulars are intended only to give a fair description of the property and do not form the basis of a contract or any part thereof. These descriptions and all other information are believed to be correct but their accuracy is no way guaranteed.

5 INVESTMENT MARKET COMMENTARY Demand for smaller investment lots, particularly those that are backed by an undoubted covenant, remains strong despite the supposed impact of political events on both sides of the Atlantic Ocean. Despite a fall in retail investment volumes compared to Q2, high street yields have been stable, with prime centres remaining at a ten-year low. In addition, yields are between bps below the previous year, prompted by higher cross border demand. TENANT COVENANT Boots is one of the UK s retailing institutions. Founded by John Boot in 1849 in Nottingham, today it is the largest pharmacy health and beauty chain in the UK with over 2,500 stores with representation in most high streets, shopping centres and airport terminals across the country. The company s parent, Alliance Boots, was bought in 2007 for 11.1 billion. This was the first ever FTSE 100 company bought by a private equity firm. In 2012, Walgreens (the largest drug store chain in the United States) bought a 45% stake in Alliance Boots with the option to buy the rest within three years. It exercised this option in 2014, and as a result Boots became a subsidiary of Walgreens Boots Alliance forming a combined business with operations in 25 countries. In April 2015, Walgreens Boots Alliance published their first post-merger update, reporting an overall rise in sales of 35%, to $26.6bn, and a 33% rise in profits compared with last year. Boots UK Limited is rated as Very Low Risk in terms of business failure with a Dun & Bradstreet Rating of 5A1. In the year to 31st March 2014 the company reported turnover of 6.34bn (up from 6.204bn in 2013), pre-tax profit of 507m (up from 452m in 2013) and total net worth of 456m (up from 430m in 2013). We would consider that most investors would interpret the tenant to be of very strong covenant strength. Misrepresentation Act These particulars are intended only to give a fair description of the property and do not form the basis of a contract or any part thereof. These descriptions and all other information are believed to be correct but their accuracy is no way guaranteed.

6 TENANCY The premises are let to Boots UK Limited from 31 May 2012 until 30 May 2022, thus giving the purchaser a term-certain of more than 5 years. A rent review is due 31 May The permitted user is A1 Retail. The passing rent is 90,000 per annum exclusive. We consider the rent to be reversionary. PRICE CONTACT For further information or to arrange a viewing please contact: James Reiff on james.reiff@rib.co.uk or Ben Blausten on ben@rib.co.uk UPON APPLICATION. TENURE The premises are held on a long-lease of 999 years from and including 1 January Misrepresentation Act These particulars are intended only to give a fair description of the property and do not form the basis of a contract or any part thereof. These descriptions and all other information are believed to be correct but their accuracy is no way guaranteed.