132 Wandsworth Bridge Road, SW6 2UL A PROMINENT FREEHOLD RETAIL AND LEISURE INVESTMENT OPPORTUNITY IN FULHAM
Page 2 Investment Considerations / Prominent, freehold property situated in ; one of s most affluent boroughs / Mixed use building comprising retail accommodation over ground floor, gym accommodation at basement level and residential accommodation above (sold off on long leaseholds) / Total current income of 212,250 per annum / 66% of the income is derived from the convenience foodstore, let to Sainsbury s Supermarkets Ltd until November 2029, subject to RPI linked rent reviews collared at 1% pa and capped at 3.5% pa / The gym trades as UN1T and the lease benefits from RPI linked rent reviews collared at 2% pa and capped at 4% pa / Weighted average unexpired term of 11.2 years to expiry and 9.2 years to break / Strategic position in affluent area with extensive frontage onto Wandsworth Bridge Road. Offers sought in excess of 4,250,000 (subject to contract and exclusive of VAT) reflecting a net initial yield of 4.69%. Yields are net of purchaser s costs of 6.55%. % Net Initial Yield 4.69% Running Yield 2019 5.10% Running Yield 2020 5.31% Running Yield 2024 6.09% Running yield based on actual RPI figures to date and 3% per annum thereafter.
Page 3 Location Euston Station Kings Cross Kings Cross St Pancras forms part of the Borough of Hammersmith and in south west, 4.5 miles (7.25 km) from central. The borough lies to the north of the River Thames, between Hammersmith and Kensington and Chelsea, across the river from Barnes and Putney. The upmarket location, known as one of s most affluent boroughs, is especially popular with young professionals and families and is home to excellent schools and a variety of restaurants, boutiques, cafés and bars. The area is well served by public transport with Broadway and Parsons Green Underground Stations (Zone 2) providing direct access to Victoria (via the District Line) with a fastest journey time of 16 minutes. Imperial Wharf is situated to the east, providing services (via Overground and Southern rail) to Clapham Junction, Shepherd s Bush and Euston. The A4 is situated approximately 2 miles (3.2 km) to the north of, providing access to the M4 (Junction 1) to the west and central to the east. The A3 is accessible via Wandsworth Bridge Road over Wandsworth Bridge, which provides direct access to the South Circular, M4 and in turn the M25 motorway (Junction 4B). Heathrow Airport, the busiest airport in Europe having served 75.7 million passengers in 2016, is situated 17 miles (27.4 km) to the west. Barnes Shepherd s Bush Westfield Hammersmith Hammersmith Apollo Putney Shepherd s Bush Putney Kensington Portobello Market Putney Bridge Kensignton Earl s Court Parsons Green Notting Hill Gate Kensington High Street Earl s Court Broadway Kensington Palace South Kensington Knightsbridge V&A National History Museum Museum Imperial Wharf Paddington South Kensington Battersea Chelsea Clapham Junction Marylebone Marble Arch Belgravia Mayfair Hyde Park Corner Sloane Square Regents Park Oxford Circus CLAPHAM Fitzrovia Soho Leicester Square Buckingham Palace Victoria Battersea Power Station Piccadilly Circus Wandsworth Road Charing Cross Houses of Parliament Clapham High Street Eye Southbank Lambeth Vauxhall Oval Brixton Brixton Chancery Lane Waterloo St Paul s Catherdral Tate Modern Elephant and Castle Camberwell Monument Bridge Liverpool Street Southwark The Shard Tower of Known as one of s most affluent boroughs Southfields
Page 4 N Broadway Underground Station Wandsworth Roundabout Imperial Wharf National Rail Chelsea Football Club Eel Brook Common Hurlingham Park Parsons Green Underground Station Putney Bridge Underground Station
Page 5 A315 Situation Lyric Hammersmith HAMMERSMITH A4 Earl's Court EARLS COURT A3218 Peter Jones Saatchi Gallery Royal Brompton Hospital West Brompton A308 Charing Cross Hospital Palace Rd Palace Rd A3219 Munster Rd Dawes Rd Lillie Rd Dawes Rd North End Road A3218 WEST BROMPTON Broadway Rd Finborough A3220 Stamford Bridge Rd Rd Redcliffe Gardens A308 A3217 Chelsea & Westminster Hospital Chelsea Embankment Cheyne Walk Albert Bridge Rd A3212 HOWDENS JOINERY N Craven Cottage Munster Rd FULHAM A304 Parsons Green Harwood Harwood Rd Rd Eel Brook Common New Kings Rd Chelsea Harbour Imperial Wharf Battersea Reach erd Westbridg Battersea Bridge Rd THE SHAKER KITCHEN A308 Lower Richmond Rd S Circular Rd A219 Putney PUTNEY Putney Bridge Approachs Putney Bridge Approach Putney Bridge East Putney A3 S Circular Rd 13 min Rd Bridge Putney 2 min Parsons Green Broadway Hurlingham Park A3 Southside Shopping Centre 2 min A217 Ln Garratt Rd Bridge Wandsworth Way Swandon Putney Bridge 3 min West Brompton Hill East York Rd Trinity Rd A3220 A3205 St John s Hill South Circular Rd East Putney 5 min A214 A3036 Falcon Rd BATTERSEA Wandsworth Common 13 min Northcote Rd 5 min 16 min Earls Court Victoria Latchmere Rd A3 Wimbledon The property enjoys a prominent position on Wandsworth Bridge Road, directly opposite its junction with Hazlebury Road, within a highly sought after and densely populated residential area. The pitch is central to the local convenience offer. Broadway and Parsons Green Underground Stations (District Line Zone 2) are both 0.6 miles (1 km) to the north and north east respectively. There is a bus stop directly outside the property providing access to Kensington to the north and Battersea and Putney to the south. Surrounding retailers include Caffe Nero, Randalls Butchers, Starbucks, Joe s Brasserie and James Pendleton Estate Agents, as well a number of independent bars, beauty salons and boutique stores. The Kings Road and Road, providing a further retail and restaurant offer, are within close proximity as well as the open spaces of Eel Brook Common and Hurlingham Park.
Page 6 Demographics The property benefits from an affluent local catchment population, with a significantly high proportion of AB category households (42.6% compared to the national average of 22.2%). The area is categorised by working aged professionals, with 54% aged 20-44 and 45.9% of employed residents working within higher managerial/director professional roles. 83% of the catchment population fall into the City Prosperity Experian Mosaic Group, defined as those who work in high status positions, command substantial salaries and who are able to afford expensive urban homes. Well-educated, confident and ambitious, this elite group is able to enjoy their wealth and the advantages of living in a world-class capital to the full. The foodstore and gym benefit from a densely populated catchment area with 79,285 people living within a 1.5 km radius where residents benefit from a high disposable income. Lyric Hammersmith HAMMERSMITH Charing Cross Hospital Craven Cottage M&S FOODHALL SAINSBURY S WAITROSE EARLS COURT WEST BROMPTON FULHAM Stamford Bridge The Hurlingham Club SAINSBURY S Chelsea & Westminster Hospital Peter Jones Saatchi Gallery SAINSBURY S Battersea Reach Royal Brompton Hospital THE CO-OPERATIVE FOOD BATTERSEA Radius 1.5 km Population 79,285 Households 36,036 PUTNEY Radius 1.0 km Population 31,602 Households 14,110 Southside Shopping Centre Radius 0.5 km Population 11,109 Households 4,719 Foodstore competition Wandsworth Common Experian Social Grade AB C1 C2 DE There are 4 food stores within the primary 1.5 km catchment: 1) Sainsbury s (34,128 sq ft) 27 Townmead Road,, SW6 2GD 2) Waitrose (15,368 sq ft) 402 North End Road,,, SW6 1LX 3) Sainsbury s (10,092 sq ft) Broadway Shopping Centre,, SW6 1BW 4) The Co-operative (10,508 sq ft) Omega House, 471-487 King s Road, Chelsea, SW10 0LU UK
Page 7 Description The property comprises a prominent, mixed use building arranged over basement, ground and three upper floors (sold off long leasehold), with extensive frontage onto Wandsworth Bridge Road. The purpose built property was completed in 2014 and accommodates a convenience foodstore (Class A1) over the ground floor, a personal training gym (Class D2) across the basement level and residential apartments on the upper floors (sold off on a long leasehold). Sainsbury s Supermarkets Ltd occupies 4,185 sq ft across the well-configured ground floor which has been fitted out in Sainsbury s usual corporate branding. UN1T occupies the 4,230 sq ft basement, benefitting from direct access from Wandsworth Bridge Road with a selfcontained lift and staircase. The gym provides a training and conditioning studio, spinning room, as well as luxury changing and therapy rooms. 66% of the income is derived from Sainsbury s Supermarkets Ltd
Page 8 Tenancy schedule Unit Tenant Floor Area (sq ft) Lease Start Lease Expiry (Break Date) Rent Passing (per annum) Comments Foodstore Sainsbury s Supermarkets Ltd Ground 4,185 01/12/2014 30/11/2029 140,000 ( 33.45 psf) FRI lease subject to 5 yearly RPI linked rent reviews collared at 1% and capped at 3.5% pa. Next review due in December 2019. Gym Ropa Fitness Ltd Basement 4,230 28/10/2016 27/10/2028 (28/10/2022) 70,000 ( 16.55 psf) Use Class D2. FRI lease subject to 4 yearly RPI linked rent reviews, collared at 2% and capped at 4% pa. Next review due in October 2020. Total Commercial 8,415 210,000 Flat 1 (2 bed) First 759 01/01/2015 31/12/2140 250 Flat 2 (2 bed) First 759 01/01/2015 31/12/2140 250 Flat 3 (1 bed) First 565 01/01/2015 31/12/2140 250 Flat 4 (2 bed) First 732 01/01/2015 31/12/2140 250 Flat 5 (2 bed) Second 759 01/01/2015 31/12/2140 250 Flat 6 (2 bed) Second 759 01/01/2015 31/12/2140 250 Sold off on 125-year long leasehold interests. Ground rent of 250 pa for the first 25 years, 500 pa from 01/01/2040, 1,000 pa from 01/01/2065, 2,000 from 01/01/2090, and from 01/01/2115 for the remainder of the term 4,000 pa. Flat 7 (1 bed) Second 565 01/01/2015 31/12/2140 250 Flat 8 (2 bed) Second 732 01/01/2015 31/12/2140 250 Flat 9 (3 bed penthouse with terrace) Penthouse 2,043 01/01/2015 31/12/2140 250 Total Residential 7,673 2,250 16,088 Gross Income: 212,250
Page 9 Tenure The property is held freehold. Investment evidence Popular convenience-led pitch with surrounding occupiers including independent bars, restaurants and boutique stores Date Address Tenant Price Net Initial Yield Comment Mar-18 131 Wandsworth Bridge Road, SW6 Independent Occupier 700psf on the residential element 4.25% (on the commercial element) Situated on the opposite side of the road to the subject property. Just over 8 years unexpired. Nov-17 M&S, Dalston, E8 M&S 8.87m 4.00% 11,800 sq ft unit, pre-let to M&S. Residential uppers sold off on a long leasehold. Feb-17 Heritage Lane, West Hampstead, NW6 M&S 7.40m 4.12% Virtual freehold interest. New 15-year lease with 5 yearly RPI linked reviews (1-4%) and 3 local tenants on new 10-year leases. Dec-16 294 Old Brompton Road, SW5 Tesco 4.30m 3.90% Ground floor retail unit with residential above. Sep-16 60&70 Parsons Green Lane, SW6 Co-op, Le Pain Quotidien 6.37m 3.76% 8,428 sq ft. Current passing rent of 255,001 per annum. WAULT of 12.9 years. Residential uppers sold off on long leaseholds. Service charge The total service charge budget for the year ending 31st December 2018 is 13,056. The service charge is fully recoverable from both the commercial tenants and long leaseholders. The service charge liability for Sainsbury s equates to just 0.11 psf and 0.13 psf for Ropa Fitness.
Page 10 Covenant information Sainsbury s Supermarkets Limited (company number 03261722) is one of the leading food store operators within the UK and is one of the Big Four supermarket chains dominating the UK grocery market. Sainsbury s is the second largest chain of supermarkets in the UK, with a 15.9% market share of the supermarket sector (as at 22/04/2018). The company occupies c. 23.2 million sq ft of retail space in the UK across 1,374 stores (560 supermarkets and 814 convenience stores) and employs over 161,100 employees. The covenant is one of the strongest in the supermarket sector with a Dun & Bradsheet rating of 5A1 representing a minimum risk of business failure. A summary of the last three years accounts is set out below: Ropa Fitness Limited (Company Number: 10293730) trades as UN1T which is a high-end athletic conditioning studio offering a trio of cardio, strength and mobility focused classes using state of the art equipment. UN1T focuses on team-oriented, competitive sessions which are coach led. UN1T also has a second gym under the same brand in Bridge. www.unitlondon.co.uk VAT The property has been elected for VAT purposes and it is expected that the investment sale will be treated as a Transfer of a Going Concern (TOGC) subject to the purchaser s VAT status. EPCs The Energy performance ratings for the property are highlighted below: Property Address 132 Wandsworth Bridge Road Ground & Basement EPC Rating B (43) Y/E Y/E 11/03/2017 000 Y/E 12/03/2016 000 Y/E 14/03/2015 000 Sales Turnover 23,234,000 23,168,000 23,443,000 Pre-Tax Profit 342,000 406,000 (206,000) Net Worth 4,353,000 4,458,000 4,224,000
Proposal Offers sought in excess of 4,250,000 (subject to contract and exclusive of VAT) reflecting a net initial yield of 4.69%. Yields are net of purchaser s costs of 6.55%. Net Initial Yield 4.69% Running Yield 2019 5.10% % Running Yield 2020 5.31% Running Yield 2024 6.09% Running yield based on actual RPI figures to date and 3% per annum thereafter. Becky Hance 0207 344 6841 becky.hance@colliers.com Colliers International 50 George Street W1U 7GA www.colliers.com/uk Georgie Griffiths 0207 344 6611 georgie.griffiths@colliers.com Disclaimer: Colliers 2018 Colliers International gives notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Party 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. No person in the employment of Colliers International has any authority to make any representation or warranty whatsoever in relation to this property. (May 2018) Colliers International is the licensed trading name of Colliers International Retail UK LLP which is a limited liability partnership registered in England and Wales with registered number OC334835. Our registered office is at 50 George Street, W1U 7GA. May 2018 Ref: 15279.002