Prime mixed use freehold investment located on one of Central London s most popular shopping streets

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2 Prime mixed use freehold investment located on one of Central London s most popular shopping streets

3 INVESTM SUMMARY Attractive period building providing restaurant, office and residential accommodation extending to 4,666 sq ft (433.5 sq m). Prominent position opposite Royal Garden Hotel and adjacent to other restaurant users including Spaghetti House, Aubaine, Cote and Wagamama. Property investment has not been traded in over 60 years. Fully let to Roadster California Limited with a Guarantor from Lux Management & Investments Group Limited for a term of 15 years from 11th August 2015 with tenant only break clause in Total income of 165,000 per annum. Tenant has spent significant capital expenditure upgrading the restaurant and uppers floors. Asset management opportunities exist to create a separate access to the residential upper parts which would significantly improve the capital values and to also develop additional space at the rear, subject to the necessary planning consents. Offers in excess of 3,675,000 (Three Million Six Hundred and Seventy-Five Thousand Pounds) reflecting a net initial yield of 4.22% subject to contract assuming purchaser s costs of 6.51%. A purchase at this price reflects a capital value of 797 psf overall.

4 1 STAIRS CAFFE NERO BECTIVE LESLIE MARSH EST AG LEONIDAS NERO ECCO TIMPSON CLARKS RYMAN STATIONER VODAFONE SHOES LINGERIE CONF & BIS SHOES BANK 7 R STAIRS RAMP GEOX OFFICE KENSINGTON CHURCH WALK M I D EAST REST NORTHCLIFFE HOUSE 8 6 A 9 1 & LADIES WEAR 1 EAST OLIVER BONAS GIFTS (2 RETAIL FLOORS) WRIGHTS LANE RAMP UP CHESTERTON HUMBERTS ESTATE AG 118 HORNTON STREET 127A HAMPTONS INTERNATIONAL ESTATE AG 127 CHILDRENS WEAR TROTTERS HORNTON PLACE LLOYDS TSB RANCE 123D STAIRS & LIFT SERVICE CORRIDOR MCDONALDS RESTAURANT PRET A MANGER SANDWICH BAR 123C SCRIBBLER CARDS BEN S COOKIES CONF & BIS EXPRESS TELEPHONES KENSINGTON ARCADE ANN SUMMERS STORE TELEPHONES DWELLINGS & DWELLING 123B 102 ACCESSORIZE BOOST JUICE BAR M&S TO GO TAKE AWAY A SHOE REP HIGH STREET KENSINGTON 98 98A 113 OFFICE RNCE 96 96(1) 96(2) (3) MACMILLAN HOUSE SERVICE AREA SOLE TRADER SHOES 96A EDUCATIONAL ESTABLISHM KENSINGTON CHURCH COURT RANCE VACANT RETAIL SERVICE AREA 94 FURNITURE INDIA JANE CAFFE CONCERTO DERRY STREET RANOUSH JU I C E OFFICE 86 BROMPTONS OPTICIANS 84 OPTICIAN DAVID CLULOW 82 RANCE CARPHONE WAREHOUSE TELEPHONES ST MARY ABBOTS PLACE OF WORSHIP 80 OFFICE VACANT RETAIL FLOWER CORNER FLORIST 78 CURRLY BENSONS BEDS BUT TO BE A3 SERVICE CORRIDOR 65 STAIRS & LIFTS LIFTS & STAIRS VACANT RESTAURANT KENSINGTON CHURCH STREET LOADING BAY 16 DECOUCHER IMAGES BEAUTY SALON MY OLD DUTCH RESTAURANT ROSOLINI YACCO MARICARD LADIES & MENS WEAR PRINCE OF WALES PUBLIC HOUSE LADBROKES BETTING OFFICE RANCE GURU MAKE-UP VACANT L OCCITANE HLTH & BEA 70 GIFTS RICHMOND THE AMERICAN INTERNATIONAL UNIVERSITY SOUVENIRS S WEAR BAR WILLIAM HILL 62A YOUNG STREET LE PAIN QUOTIDIEN BAKER & CAFE SIX PHYSIO HEALTH CRE OF GARDEN OTEL KENSINGTON HIGH STREET RANCE DIENZO MENSWEAR GARAGES RANC E RANCE NATWEST BANK TWY ONE RETAIL ISMASH 9 VACANT RETAIL 42 EMERGANCY SERVICES OLD COURT PLACE 40 17A VACANT RETAIL VIRGIN ACTIVE TO HEALTH CLUB 38A LIANGTSE NATURAL THERAPY 41 ARCADIA ITALIAN RESTAURANT COTE BISTRO FRENCH RESTAURANT AUBAINE FRENCH REST RANCE KENSINGTON COURT DWELLINGS 35A ITALIAN REST OFFICE 26A PORTLANDS PREZZO 33 STICK & BOWL CHINESE REST DWELLING 31 JOJO CAFE 29 CRUSH JUICE BAR KENSINGTON PLACE GARDENS 27 STARBUCKS COFFEE SHOP 25 TOP GUN CLOTHING DAL SURGERY PHARMACY 19 FOUBERT S ITALIAN RESTAURANT 17 PORTLANDS ROYAL GARDEN HOTEL & SOMA HEALTH CRE & PARK TERRACE RESTAURANT & BAR BERTIE S BAR CONNISSEUR CLUB CASINO EURO CAR PARKS (200) UNDER 15 PARKD CLICK DWELLINGS ROADSTER 11 P SPAGHETTI HOUSE ITALIAN RESTAURANT 9 LUPITA RESTAURANT 7 COBELLA AKQA HAIRDRESSING DWELLINGS THE OLD BARRACKS 5 3A GOAT TAVERN PUBLIC HOUSE BUR DE CHGE MYSTIQUE HAIR 1A ZAILA INDIAN RESTAURANT 1 GARAGES 7-8 PALACE AVENUE (PRIVATE ROAD) CUMBERLAND HO

5 LOCATION & SITUATION LADBROKE GROVE KENSINGTON PARK ROAD HOLLAND PARK AVENUE HOLLAND PARK WARWICK GARDENS WARWICK ROAD KENSINGTON HIGH STREET P PEMBRIDGE ROAD 2 PEMBROKE ROAD EARL S COURT ROAD WEST CROMWELL RD Notting Hill NOTTING HILL GATE BAYSWATER ROAD KENSINGTON CHURCH STREET RBKC Town Hall P High Street Kensington Earls Court Bayswater QUEENSWAY INVERNESS TER. BROAD WALK Kensington Palace 14 Round Pond KENSINGTON ROAD KENSINGTON GARDENS Serpentine Gallery P Royal Albert 12 Hall P Queensway 4 3 P 9 11 CROMWELL ROAD GLOUCESTER ROAD CRAVEN ROAD Gloucester Road QUEEN S GATE The property is located within the prime central London area of Kensington within the Royal Borough of Kensington and Chelsea, one of London s most affluent districts, and approximately two miles west of Mayfair. Kensington High Street is both a local and international retail thoroughfare, with a mix of independent cafés and restaurants alongside well known fashion brands. The street benefits from nearby attractions such as Kensington Palace, Holland Park and the new Design Museum. Kensington High Street is one of London s leading retail destinations benefiting from high levels of footfall derived from wealthy local residents and large volumes of tourists visiting local attractions. KENSINGTON GORE Royal College of Music Science Museum Natural History Museum Lancaster Gate EXHIBITION ROAD Victoria & Albert Museum OLD BROMPTON ROAD SYDNEY ST FULHAM ROAD South Kensington The street now boasts a variety of national and international retailers including Zara, Waitrose, Whole Foods, Uniqlo and Russell & Bromley as well as numerous high end restaurants including The Ivy, Wagamama, Aubaine, Launceston Place, The Roof Gardens & The Orangery at Kensington Palace. 11 Kensington High Street is located on the south side of Kensington High Street at its eastern end and directly opposite the Royal Garden Hotel, with views of Kensington Gardens and only a short walk from the underground station at High Street Kensington on the District and Circle lines. The eastern end of Kensington High Street has multiple restaurant and hotel operators which include Wagamama, Prezzo, Cote and Aubaine. RETAIL 1 Whole Foods 2 Waitrose 3 Uniqlo 4 Zara RESTAURANT 6 Aubaine 7 Spaghetti House 8 The Ivy Brasserie HOTEL 9 Royal Garden Hotel 10 Baglioni Hotel OFFICE 11 Daily Mail 12 Associated Newspapers 13 Warner Music Int LEISURE 14 Kensington Palace 15 The Roof Gardens 16 Royal Albert Hall

6 COMMUNICATIONS Kensington High Street offers good transport links. High Street Kensington Underground Station (District & Circle Lines) is in close proximity to the subject property as are numerous bus services connecting Central London with the surrounding London boroughs. Kensington High Street itself (A315) links with Knightsbridge and Piccadilly, providing access to Mayfair and Central London to the east as well as Hammersmith via the A4, which in turn provides access to the M4 and M25 motorways to the west. Thameslink 200m from East Acton Maida Vale Kilburn Park Warwick Avenue Royal Oak Westbourne Park Paddington Latimer Road White City Ladbroke Grove Paddington Holland Park Edgware Road Bayswater Notting Hill Gate Edgware Road Marylebone Lancaster Gate Bond Street Baker Street Oxford Circus Great Portland Street Euston Warren Street Regent s Park Goodge Street Wood Lane Shepherd s Bush Queensway Marble Arch Tottenham Court Road Shepherd s Bush Market Goldhawk Road Kensington (Olympia) HIGH STREET KENSINGTON Knightsbridge Hyde Park Corner Green Park Piccadilly Circus Hammersmith Barons Court Gloucester Road Sloane Square St. James s Park Charing Cross Stamford Brook Ravenscourt Park West Kensington Earl s Court South Kensington Victoria Westminster West Brompton Fulham Broadway Waterloo Parsons Green Putney Bridge Pimlico East Putney River Thames

7 High Street Kensington Underground Station is in close proximity

8 REG S PARK QUEENSWAY Kensington GARDENS Kensington PALACE ROYAL GARDEN HOTEL WHOLE FOODS MARKET

9 the city MARBLE ARCH MAYFAIR SERPINE GALLERY ALBERT MEMORIAL ROYAL ALBERT HALL BAGLIONI HOTEL

10 LOCAL DEVELOPMS We have identified a number of significant local developments which demonstrates the appetite from both developers and the local authority to stimulate activity in the area Young Street W8 Grainger PLC have been selected to redevelop the NCP car park on Young Street by the Royal Borough of Kensington and Chelsea. Planning consent was granted in 2014 and the proposals will transform the Council owned site into 53 high-quality, apartments and townhouses for both sale and rent. They will be managed by Grainger on a 125yr lease from the Council, who will retain the freehold of the site. The development is predicted to be completed in the Summer of Lancer Square and Old Court Place W8 Chesington Investments Limited have submitted a planning application for a new mixed use redevelopment project located at Lancer Square and Old Court Place. The scheme consists of 75,000 sq ft of office space, 30,000 sq ft of retail and 51 residential units (14 affordable and 37 open market). The Lancer Square element includes an office block and two (open market) residential buildings. The Old Court Place element includes the third (affordable) residential building. The goal for completion is Autumn 2020.

11 The Kensington Odeon Cinema W8 Minerva PLC has received planning consent to redevelop the Kensington cinema, Post Office sorting house and Whitlock House to enhance the cultural appeal of the west side of Kensington High Street. The highquality development, with its retained and restored historic façade, will complement the Design Museum and deliver new and affordable homes for Kensington. The scheme will provide new cinema facilities with state-of-the-art screens, a restored historic façade, 125,000 sq ft NIA residential floor space, 20 high-quality affordable homes, as well as modern offices and retail space. Holland Green W8 Ilchester Estates & Chelsfield Developments delivered Holland Green in 2016 which comprises two residential buildings and one mixed use building providing 200,000 sq ft of residential space. The residential complex is grouped around the proposed new home of the Design Museum at the south of Holland Park. The Design Museum was founded in 1989 by Sir Terence Conran and opened at the new Kensington location in September 2016 after having been situated by the River Thames near Tower Bridge. The museum is a showcase for leading contemporary design and architecture that is predicted to attract 500,000 visitors each year. It provides a restaurant, gift shop, a library, an events space and a 202 seat auditorium.

12 THE DESCRIPTION The building forms part of a parade of retail and restaurant units most of which date from the late 19th and early 20th century and are all distinct architecture and design. The subject property was built in 1891 by John Barker & Co. builders and comprises a 5 storey midterraced, period property of brick construction with pitched tiled roof. The building is arranged over basement, ground and 3 upper floors and has been substantially extended to the rear at ground and basement levels. There is one single entrance to the restaurant and upper parts by way of a ground floor lobby but this could easily be separated to create a dedicated residential entrance. The restaurant unit was completely refurbished in 2015 to include a new kitchen, food preparation and storage areas together with a fully fitted dining/bar area and toilet facilities. The restaurant has approx. 70 covers. The upper parts have also been totally refurbished to provide studio apartments which are currently used for staff accommodation.

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14 Office Store Room Freezer Courtyard Store Room Lobby Kitchen Store Room Basement GROUD FLOOR Lobby PAVEM Store Room Store Room KENSINGTON HIGH STREET

15 ACCOMMODATION The property has been measured in accordance with the RICS property measurement 1st Edition, May 2015 and provides the following approximate Gross Internal Areas for Ground and Basement and Net Internal Areas above ground: Floor/Use sq Ft Sq M Basement/Kitchen & Storage 1, Ground/Restaurant 1, st Floor/Residential nd Floor/Residential rd Floor/Residential Total 4, A measured survey is available upon request. Access Lobby Lobby Loft Ladder FIRST FLOOR SECOND FLOOR THIRD FLOOR PAVEM KENSINGTON HIGH STREET KENSINGTON HIGH STREET KENSINGTON HIGH STREET

16 THE TENURE The property is held freehold by way of one title LN Title and site plan are available upon request. KENSINGTON PALACE GDNS Royal Garden Hotel PALACE AVENUE Kensington Gardens KENSINGTON HIGH STREET THE TENANCY The property is let to Roadster California Limited with a Guarantee from Lux Management & Investments Group Limited for a term of 15 years from 11th August There is a tenant only break clause in year 5 only upon serving of 6 months notice. The total passing rent is 165,000 per annum. Lease is available upon request. 11 KENSINGTON COURT KENSINGTON COURT THE COVENANT The Tenant, Roadster California Limited has yet to file any trading accounts. The Guarantor, Lux Management & Investments Group Limited is a significant trading company with turnover to the year ending 31st August 2016 of m, a pre-tax profit of 1.567m and a net asset value of c 10.2m. Their trading brands include Caffé Concerto which was established 21 years ago. Highlights of the last 3 years of accounts for the Guarantor are as follows: Y/E August 2016 Y/E August 2015 Y/E August 2014 Turnover 23,312,495 20,245,496 16,876,514 Profit before tax 1,567,386 1,291,763 1,107,200 Net Assets 10,190,592 9,036,140 5,074,189

17 TENANT S REFURBISHM The tenant has undertaken a thorough internal and external repairing programme. This included a complete refurbishment of the ground floor restaurant, new kitchen and food storage/preparation areas, toilets at basement level and a refurbishment of the residential accommodation above ground. MARKET COMMARY We have analysed the existing rental level on the basis of an overall ground floor rental of c psf with 50% rent on basement and 25% of this on basement storage and amenity areas. The upper parts are not self-contained and we have therefore assumed an office/storage rate on these areas of between psf. The most recent and relevant evidence is the letting of 29 Kensington High Street to Cavalli Restaurant in November The entire building equates to c3,830 sq ft overall and the commencing rental was 200,000pa. It is our opinion, therefore, that 11 Kensington High Street is already significantly reversionary based on this new letting. INVESTM MARKET The most significant investment transaction in the immediate vicinity is 3a Kensington High Street, W8 A self-contained public house, The Goat Tavern, of c4,518 sq ft. Freehold and let in its entirety to the Spirit Pub Company. The price paid was c 8.22m reflecting a net initial yield of 3.49% and a price psf of 1,838. DATE ADDRESS NIA TENURE TENANCIES PRICE NIY CAP VALUE (SQ FT) (SQ FT) Q Kensington High St W8 3,929 FH Starbucks 7.00m 3.35% 1,782 Q a Kensington High St W8 4,518 FH Spirit Pub Company 8.22m 3.49% 1,838 Q Kensington High St W8 12,985 FH Multi-let 19.00m 4.20% 1,463 Q Kensington High St W8 1,537 FH Thomas Exchange 4.25m 3.78% 2,765 Global Ltd

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19 EPC & VAT The property has an EPC rating of D. A full EPC is available upon request. The property has not been elected for VAT. THE PROPOSAL We are instructed to seek offers in excess of 3,675,000 (Three Million Six Hundred and Seventy-Five Thousand Pounds) reflecting an attractive net initial yield of 4.22% and a capital value of 797 psf, assuming purchaser s costs of 6.51%. Contact Andrew Riley T +44 (0) M +44 (0) andrew@somerfordre.com Will Wynn-Williams T +44 (0) M +44 (0) will@somerfordre.com Simon Kibble T +44 (0) M +44 (0) skibble@frostmeadowcroft.com Alex Thomas T +44 (0) M +44 (0) athomas@frostmeadowcroft.com Misrepresentation Act 1967: Somerford Real Estate Limited and Frost Meadowcroft for themselves and for the vendor(s) or lessor(s) of this property whose agents they are, give notice that: 1. these particulars do not constitute, nor constitute any part of, an offer or contract. 2. None of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact. 3. Any intending purchaser or lessee must satisfy himself by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 4. The vendor(s) or lessor(s) do not make or give and neither Somerford Real Estate Limited or Frost Meadowcroft nor any person in their employment has any authority to make or giveany representation or warranty whatever in relation to this property. Finance Act 2013: Unless otherwise stated all prices and rents are quote exclusive of VAT. The Business Protection from Misleading Marketing Regulations 2008: These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. October 2017.

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