Prime Fitzrovia Restaurant Investment

Transcription

1 Prime Fitzrovia Restaurant Investment NEWLY LET TO ESTABLISHED BOROUGH MARKET RESTAURANT OPERATOR, ROAST

2 Investment Summary Prime leisure investment in the heart of London s West End Newly fitted out, high specification restaurant over ground and lower ground floors 999 year virtual freehold interest Opportunity to buy into the Fitzrovia growth story Passing rent of 255,000 pa achieved after highly competitive letting campaign A new 20 year FRI lease with 5 yearly open market reviews Let to Roast Restaurants, of Borough Market fame, who are opening their second venture on the back of the hugely successful Roast OFFERS IN EXCESS OF 6,300,000 (Six Million Three Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 3.80%, assuming standard purchaser s costs of 6.63%.

3 Location SITS WITHIN THE FASHIONABLE BUSINESS, RETAIL AND LEISURE DISTRICT OF FITZROVIA, IN THE HEART OF LONDON S WEST END. IT IS LOCATED DIRECTLY NORTH OF THE INTERNATIONALLY RENOWNED OXFORD STREET AND NEIGHBOURS THE HIGHLY DESIRABLE AREAS OF SOHO AND MARYLEBONE. IS ONE OF THE PRIMARY ARTERIES CONNECTING OXFORD STREET TO MARYLEBONE AND PROFITS FROM A DIVERSE RANGE OF OCCUPIERS, WITH ITS VIBRANT MIX OF COFFEE SHOPS, GALLERIES, DESIGNER HOTELS, RESTAURANTS, SHOPS AND OFFICES. Historically, Fitzrovia comprised largely of Victorian tenement buildings and commercial showrooms, with a relatively sparse concentration of A3 occupiers, who tended to favour the traditional leisure heartland of Soho. More recently, however, there has been a heavy influx of high end restaurants into the area, which have become destinations in their own right. This has been driven by the wider Fitzrovia regeneration, underpinned by a wave of investment into the area, and partially by the comparatively low rents which continue to offer occupiers a discount to prime Soho and Marylebone. Subsequently, Fitzrovia is now home to some of the best restaurants in London, including; Chiltern Firehouse, Pied a Terre, Roka, Hakkasan, Dabbous and Berners Street Tavern. Notable names of repute now operating in the direct vicinity of the subject property include Picture, Portland, Riding House Café, Mac and Wild and the soon to open Caravan. Despite the increased demand from occupiers, supply remains relatively constrained with a scarcity of suitable premises. This imbalance should precipitate into higher leisure rents moving forward, and a continued narrowing of the discount between Fitzrovia and its neighbouring areas. The area is also a hub of local business and home to numerous corporate headquarters. Examples include the BBC, Fitzroy Place (New HQ for Estee Lauder) and the Rathbone Square development recently occupied by Facebook. Other global industry leaders based locally include Saatchi & Saatchi, Capital & Kier Group PLC.

4 TOTTENHAM COURT RD Soho REGENT ST Mayfair BOND STREET 12 5 CROSSRAIL OXFORD ST OXFORD ST OXFORD CIRCUS 2 7 CROSSRAIL Fitzrovia 4 1 Marylebone 3 LANGHAM ST 6 9 GREAT TITCHFIELD ST PORTLAND PLACE 8 GREAT PORTLAND ST Situation THE UNIT IS PROMINENTLY SITUATED ON THE CORNER OF AND LANGHAM STREET, ONLY A 5 MINUTE WALK NORTH OF OXFORD CIRCUS AND SOME 12 MINUTES WEST OF TOTTENHAM COURT ROAD. 1 BBC Headquarters 5 Berners Tavern 9 Portland 2 The Langham Hotel 6 Picture 10 Caravan 3 Mac & Wild 7 Roux at the Landau 11 Villandry 4 Riding House Cafe 8 Clipstone 12 Edition Hotel

5 Communications Description THE PROPERTY IS WELL CONNECTED WITH OXFORD CIRCUS (VICTORIA, CENTRAL AND BAKERLOO LINES) AND TOTTENHAM COURT ROAD (NORTHERN AND CENTRAL LINES) STATIONS IN CLOSE PROXIMITY. A PROMINENT CORNER UNIT ARRANGED OVER GROUND AND LOWER GROUND FLOORS WITH FRONTAGES TO BOTH AND LANGHAM STREET. THE TENANT WILL FIT OUT THE RESTAURANT IN ACCORDANCE WITH THEIR CORPORATE STYLE AND TRADE BOTH GROUND AND LOWER GROUND LEVELS. CROSSRAIL CROSSRAIL O X F O R D CIRCUS 5 MIN GREAT PORTLAND STREET 8 MIN T O T T E N H A M COURT ROAD 12 MIN BOND STREET 12 MIN Oxford Circus, a 5 minute walk away, is currently the busiest station in the West End, serving just under 252,000 passengers per day or 84.5 million passengers per year in This accounts for just over 50 percent of all station demand to and from the West End. Tottenham Court Road Station, around 12 minutes walk, will become a Crossrail interchange later this year making it one of London s busiest transport hubs. Once completed, roughly a quarter of the population of England will be able to reach Oxford Street and Tottenham Court Road Station in 45 minutes, amounting to over 13 million people. By 2031 the Elizabeth Line (Crossrail) is projected to bring an additional 83 million people annually to the West End. Previous research by the New West End Company estimated the potential for an increase in turnover from 8.8billion in 2014 to over 11.2 billion in 2020 (at 2014 prices). This figure is now likely to be exceeded, given the increase in footfall from latest TfL estimates. The computer generated images provided are initial concepts of the proposed fitout and are subject to potential alteration.

6 Indicative Layout GROUND Floor Areas A PPROX I M AT E GRO S S I N T E R NA L A R E A S ( GI A) FOR T H E GROU N D A N D L OW E R GROU N D A R E A S FOL L OW S : GROUND FLOOR 1,411 SQ FT 131 SQM LOWER GROUND 2,085 SQ FT 194 SQM TOTAL 3,496 SQ FT 325 SQM LOWER GROUND

7 Tenant Roast (Portland) Limited, with a parent guarantee from Roast Restaurant Group Limited, have signed an Agreement for Lease to occupy the premises from the beginning of July The restaurant, which will be the second in the group s portfolio, will be a brasserie style variation on the highly successful Roast Restaurant in London s iconic Borough Market. Opened in 2005 by restaurateur Iqbal Wahhab OBE, founder of the Cinnamon Club, Roast has won acclaim and awards across the UK. It now sits in the heart of Britain s culinary culture, renowned for its use of the finest seasonal ingredients and commitment to classical British cooking that draws exclusively from the nation s farmers and producers. Further information can be found at: Tenancy A new 20 year FRI lease from completion. The annual rent of 255,000 pa will be subject to five yearly reviews to market value. Tenure The property will be available by way of a 999 year long leasehold at a peppercorn.

8 Market Commentary THE WEST END INVESTMENT MARKET HAS REMAINED EXTREMELY ROBUST AND CONTINUES TO DEMONSTRATE IMMUNITY TO THE CHALLENGES FACED ELSEWHERE, UNDERPINNED BY RECORD INFLOWS OF FOREIGN CAPITAL. THE KEY FUNDAMENTALS OF STRONG OCCUPATIONAL DEMAND, LOW VACANCY RATES, RENTAL GROWTH, INTERNATIONAL PRESTIGE AND SAFE-HAVEN STATUS CONTINUE TO DRIVE THE MARKET, WHICH HAS WITNESSED A PROTRACTED AND SEEMINGLY UNABATED CONTRACTION OF PRIME YIELDS. Investment Market ADDRESS PRICE YIELD TENA NT DATE 9 Dean Street, W1 4.95m 2.99% Pizza Express Feb Charlotte Street, W1 7.10m 2.08% L Etoile Aug Greek Street, W1 4.70m 3.50% Pizza Express May Dean Street, W1 4.95m 2.93% Nellie Dean Dec Dean Street, W m 3.88% Wagamama May Dean Street, W1 8.37m 3.50% Entrecote Mar-16 5 Berners Street, W1 6.08m 3.89% Patara Thai Dec Blandford Street, W1 4.00m 2.50% L Autre Pied Nov Poland Street, W1 6.50m 2.84% Yo Sushi Dec-14 Rental Analysis VAT We have devalued the rent to 104 per sq ft on a weighted The property has been elected for VAT purposes basis. This compares favourably with current prime leisure and therefore it is intended that the sale will be West End leisure investments remain in high demand, with their resilience to the pressures of internet retailing, long lease lengths and historic rental growth all being experience an influx of both commercial and residential occupiers looking for a strategic yet central location in the heart of London s West End. This, combined with rents in neighbouring Marylebone, Soho and Mayfair, which serves to highlight the relative affordability for occupiers and room for future rental growth. treated as a Transfer of Going Concern. EPC attractive to prospective investors. Central London is at the forefront of the UK dining scene with an abundance of entrepreneurial and celebrity restaurateurs competing for the best sites, faced with restrictive planning policy refurbishment and redevelopment of older office stock, has resulted in a maturity of the Fitzrovia property market and a commensurate rise in commercial rents. Significant development is still underway in the Fitzrovia GREAT PORTLAND ST MARYLEBONE Available following completion of tenant fit out. Planning and a lack of supply which continues to place upward pressure on rents. With the rapid increase in property prices in surrounding areas including Marylebone, Soho and Tottenham Court Road, Fitzrovia has started to area, looking to capture a continuation of rental increases with the beneficial impact of Crossrail as well as further gentrification to the general area per sq ft SOHO MAYFAIR Great Portland Street is Grade II listed and sits within the Harley Street Conservation Area. Interested parties are advised to contact the local planning authority.

9 Residential Development 94 Great Por t l a nd St reet for m s pa r t of a w ider development, wh ich i ncludes except ion a l resident ia l accom mod at ion con sistent w ith the h ig h- cl a ss n at u re of the Roa st Bra nd. Fu r ther i n for m at ion ca n be fou nd on the website ; W W W.38LA NGH A MST R E ET.COM L O N D O N W1

10 Proposal SEEKING OFFERS IN EXCESS OF: OFFERS IN EXCESS OF 6,300,000 (Six Million Three Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 3.80%, assuming standard purchaser s costs of 6.63%. MISREPRESENTATIONS ACT: CWM & Partners LLP for themselves and for the vendors/lessors of the property whose agents they are, give notice that: 1. These particulars are set out as a general outline for the guidance of the intended purchasers or lessees, and do not constitute part of, an offer or contract; 2. All descriptions, dimensions, reference to, tenure, tenancies, condition and necessary permissions for the use and occupation, and other details are given without responsibility and any intending purchaser or tenant should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; 3. No person in the employment of CWM & Partners LLP has any authority to make or give any representations or warranty in relation to this property. MAY 2018 Viewings INSPECTIONS ARE TO BE ARRANGED STRICTLY BY PRIOR APPOINTMENT WITH THE VENDOR S SOLE SELLING AGENTS. A N DR E W MCDONALD am@cwm.co.uk DA N KEATINGS dk@cwm.co.uk