BOOTS RETAIL WAREHOUSE CLAPHAM JUNCTION 10 Falcon Lane, London SW11 2LG A UNIQUE INVESTMENT OPPORTUNITY 1
INVESTMENT SUMMARY Freehold. Total site area of 0.77 acres. The Property is located in Clapham Junction, a busy residential and commercial hub in South West London with a catchment area population of 1,774,671. Clapham Junction is located 5.8km (3.6 miles) south west of Central London within Zone 2. Clapham Junction station is the busiest rail interchange in Europe serving c. 2,000 trains per day. Clapham was recently voted Best place to live in London by Time Out s City Living Survey. The store is let to Boots UK Limited for a remaining 5.6 years. The store extends 11,047 sq ft with a passing rent of 370,000 per annum reflecting an affordable 33.50 per sq ft. The rent is subject to five yearly rent reviews, the next being 7th May 2019. Strong potential for Asset Management. Offers an unique development opportunity for a variety of uses including residential and mixed-use. In view of the unique nature of this asset we are instructed to seek offers in excess of 8,700,000 (Eight Million, Seven Hundred Thousand Pounds), subject to contract and exclusive of VAT, which reflects a net initial yield of 4.00% allowing for purchaser s costs of 6.70%. 2
WANDSWORTH WANDSWORTH COMMON WANDSWORTH BRIDGE ST JOHN S HILL ST JOHN S ROAD CLAPHAM JUNCTION LAVENDER HILL London Victoria - 7 minutes London Waterloo - 9 minutes 3
UNIQUE LOCATION CHELSEA A3212 Chelsea Embankment Chelsea Bridge Clapham Junction is a vibrant district of South West London within the affluent London Borough of Wandsworth. Clapham Junction is located 5.8km (3.6 miles) south west of Central London within London s Zone 2 transport belt proving to be a highly popular residential hub due to its excellent transport links. Clapham Junction serves approximately 2,000 trains per day making it the busiest interchange in Europe. SITUATION Boots Clapham Junction occupies a 0.77 acre site situated on Falcon Lane situated a few metres to the east of Clapham Junction railway station. The site is bounded by Lidl to the west, a signalling centre to the north and Asda to the east. The site is a well established retail destination. PARSONS GREEN IMPERIAL WHARF Wandsworth Bridge RIVER THAMES WANDSWORTH TOWN A3220 A3205 Battersea Bridge CLAPHAM JUNCTION St John s Hill Falcon Road A3207 Albert Bridge Falcon Lane A3 A3036 A3205 BATTERSEA PARK Battersea Park Road BATTERSEA A3220 Lavender Hill BATTERSEA PARK QUEENSTOWN ROAD CLAPHAM A3 A3216 WANDSWORTH A3 Northcote Road Clapham Junction has a shopping population of 80,307 Clapham Junction s shopping population is expected to grow rapidly over the next 10 years (8%) Retail spend in Clapham Junction exceeds 185 MILLION per annum CLAPHAM COMMON A A214 South Circular Road Not to scale indicative only Clapham Junction serves approximately 2,000 trains per day 4
UNRIVALLED CONNECTIVITY Clapham Junction station is the busiest rail interchange in Europe serving c. 2,000 trains per day. The station is connected by South Western Trains to and from London Waterloo, Southern Trains to Victoria and London Bridge, the Gatwick Express and London Overground services. CrossRail 2 is expected to be operational by the early 2030s and Clapham Junction is likely to be one of the busiest stations on the new 27 billion route supporting an additional 9,000 passengers per day. Clapham Junction is also well connected by road with the A3 and A3205 linking Clapham Junction to Wandsworth, Vauxhall and London s South Circular ring road (A205). Victoria 7 minutes CROSSRAIL 2 TO BROXBOURNE TO NEW SOUTHGATE DALSTON TOTTENHAM HALE Waterloo 9 minutes Victoria ANGEL West Brompton Waterloo EUSTON ST. PANCRAS TOTTENHAM COURT ROAD Fulham Broadway VICTORIA Imperial Wharf Pimlico KING S ROAD CHELSEA Towards Richmond Putney East Putney Wandsworth Town River Thames CLAPHAM JUNCTION Queenstown Road Battersea Power Station Nine Elms Vauxhall Kennington Towards the City (Bank) BALHAM CLAPHAM JUNCTION TOOTING BROADWAY Key Mainline London Overground District Victoria Southfields Wimbledon Park Earlsfield Wandsworth Road Clapham High Street Stockwell WIMBLEDON Northern Northern Extension Wimbledon Towards Gatwick Clapham North Maps not to scale indicative only TO EPSOM TO CHESSINGTON SOUTH TO HAMPTON COURT TO SHEPPERTON 5
CLAPHAM JUNCTION RETAILING Clapham Junction provides residents and visitors with an extensive range of retailers including national fashion outlets, supermarkets and convenience stores. Clapham Junction s retail offer is centred upon St John s Road, St John s Hill and Lavender Hill all to the south. National retailers such as Debenhams, TK Maxx, JD Sports and Waterstones all have a significant presence. Lavender Hill and Northcote Road both provide a vibrant mix of boutique casual dining and leisure options for residents and visitors to Clapham Junction. National supermarkets are also well represented in Clapham Junction with Asda, Co-op and Lidl operating larger-format stores. M&S Simply Food, Wholefoods and Sainsbury s Local are also present in a convenience format. 6
DEMOGRAPHICS The catchment area of Clapham Junction has a total population of 1,774,671, with a shopper population of 80,307. Clapham s shopping population is expected to rise significantly in the next 10 years (8%), much higher than the national average of 4.7%. Clapham Junction is home to 60% of City Sophisticates - affluent younger people with an income double the national average. Most people in this group are interested in the newest technology and likely to combine online shopping with retail spend in shops, and eating out. The residents spend a total of 170.1m in the area. Another 20.0m is added by workers (5.0%), 8.0m by tourists (4.0%) and 63.5m is spent online (34.0%). Clapham Junction ranks 2nd out of 14 CACI Larger London Urban Centres, only outperformed by Camden Town, which receives a big share of its income from tourists spending. LONDON URBAN CENTRE SPENDING RANKING Rank Destination Total Spend ( m) Resi Spend Tourist Spend Worker Spend Online Spend Shopper Population 1 Camden Town 193,305 56% 32% 12% 20% 29% 2 Clapham Junction 188,146 90% 4% 5% 34% 43% 3 Brixton 184,330 91% 3% 6% 32% 47% 4 Wandsworth 181,044 92% 2% 6% 34% 43% Source: CACI, Knight Frank The catchment area of Clapham Junction has a total population of 1,774,671 2 nd best urban centre for retail spend in London ( 188,146m) 90% retail spend from residents 7
DESCRIPTION THE PROPERTY The Property comprises a modern purpose-built solus retail warehouse extending to 11,047 sq ft (1,026 sq m). The Property is of steel frame construction with brick elevations to the lower and sheet metal cladding to the uppers. The property has partial glazing to the upper and lower sections. PLANNING Planning permission for the erection of a single storey retail unit was granted in March 1998 (ref. N/98/0041). Further planning information available upon request. The site extends 0.77 acres and benefits from 48 car parking spaces. 8
TENURE Freehold. (no.tgl155287). Victoria Signalling Centre TENANCY S ignal G antry The property is let to Boots UK Limited on a 25-year Fully Repairing and Insuring lease from 7th May 1999 until 6th May 2024. The rent passing is 370,000 per annum, which reflects a headline rent of 33.50 per sq ft. The rent is subject to five yearly upwards only rent reviews. The next review being on 7th May 2019. Site area - 0.77 acres Posts COVENANT ANALYSIS FALCON LANE FALCON LANE Boots is the UK s leading pharmacy-led health and beauty retailer with around 2,500 stores in the UK. Key El Sub Sta Boots was first established over 150 years ago and has become one of the UK s favourite retailers with 90% of the UK population within a 10-minute drive of one of its stores. The company now employs over 40,000 people. RIGHT OF WAY 0m 20m 30m 31 43 53 55 Not to scale indicative only Boots UK Limited has a Dun and Bradstreet Rating of 5A1 representing a minimum risk of business failure. A summary of the last three years annual accounts for Boots UK Limited are set out below: 31/08/2017 31/08/2016 31/08/2015 Turnover 6,837,000,000 6,876,000,000 9,198,000,000 Profit before Taxation 498,000,000 523,000,000 542,000,000 Shareholders Funds 1,772,000,000 1,204,000,000 1,133,000,000 9
PROPOSED DEVELOPMENT POTENTIAL CLAPHAM HOUSE PRICE COMPARISON Indexed 2008 = 100 The Boots site has significant potential for medium term redevelopment to residential use (subject to the necessary consents) and represents an excellent opportunity to create a high-quality scheme in an area within Clapham that has been earmarked for development. Whilst the site is capable of being developed in isolation, it also represents a key piece of a larger masterplan. A preliminary high-level feasibility and massing study (dated October 2016) identifies an indicative multi-level residential scheme with additional ground floor retail space. Further information in respect of the scheme and the agreed pre-application minutes can be found within the data room. 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Clapham Junction London Prime Central London United Kingdom G+9 G+3 G+5 G+7 LIDL REDEVELOPMENT Lidl is currently seeking the redevelopment of its store to an updated, modern format with basement parking for customers. The application has been approved subject to legal agreement dated 21/06/2018 (ref.2017/2972). CGI CGI Best place to live in London 50% Clapham was recently voted by Time Out s City Living Survey Favourite destination for high-earning commuters House prices have risen by 50% in the past 10 years CGI 10
EPC An Energy Performance Certificate has been commissioned. Further details will be made available upon request. VAT The property is elected for VAT. It is envisaged that the sale will be treated as a Transfer of Going Concern (TOGC). DATA ROOM Access granted upon request. KNIGHT FRANK DEBT ADVISORY PROPOSAL In view of the unique nature of this asset we are instructed to seek offers in excess of 8,700,000 (Eight Million, Seven Hundred Thousand Pounds), subject to contract and exclusive of VAT, which reflects a net initial yield of 4.00% allowing for purchaser s costs of 6.70%. CONTACT For further information or to arrange an inspection please contact: COMMERCIAL ENQUIRIES Dominic Walton E: dominic.walton@knightfrank.com T: +44 20 7861 1591 M: +44 7818 041 670 Oliver Petch E: oliver.petch@knightfrank.com T: +44 20 7861 1107 M: +44 7716 085 925 The Knight Frank Debt Advisory team provides a value-add service to those considering obtaining real estate finance for developments or acquisitions. The team partners with borrowers throughout the financing process to make it simpler and faster, and to ensure that they finish with optimal terms. For further information, please contact Lisa Attenborough of the Knight Frank Debt advisory team. Lisa Attenborough E: lisa.attenborough@knightfrankfinance.com T: +44 20 3909 6846 M: +44 7773 258 673 Freddie MacColl E: freddie.maccoll@knightfrank.com T: +44 20 3967 7133 M: +44 7834 755 033 RESIDENTIAL ENQUIRIES Nick Alderman E: nick.alderman@knightfrank.com T: +44 20 7861 5408 M: +44 7786 856 173 James Brooks E: james.brooks@knightfrank.com T: +44 20 7861 5264 M: +44 7773 258 770 MISREPRESENTATION ACT: Knight Frank LLP give notice to anyone who may read these particulars as follows: 1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing ( information ) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934.Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members names. October 2018. Made by Taylerreid