PRIME FREEHOLD SUPERMARKET & RESTAURANT INVESTMENT OPPORTUNITY
PRIME FREEHOLD SUPERMARKET & RESTAURANT INVESTMENT OPPORTUNITY INVESTMENT CONSIDERATIONS Prime freehold supermarket and restaurant located in one of London s most affluent boroughs Located approximately 50m south of Parsons Green Underground Station Attractive building with impressive street frontages comprising approximately 8,432 sq ft let to the Co-Operative Group Ltd and Le Pain Quotidien Ltd AWULT of approximately 12.9 years Approximately 53% of the income is secured to the Co-operative Group Ltd which benefits from RPI linked reviews for a further 17.5 years Current passing rent is 255,001 Freehold The most recent investment sale close by, let to Cote Restaurants Ltd, sold in April 2016 for a price reflecting 3.2% net initial yield Offers are sought in excess of 5,300,000 (Five Million Three Hundred Thousand Pounds) subject to contract and exclusive of VAT. This reflects a net initial yield of 4.5% after allowing for purchasers costs of 6.6%.
IMPERIAL WHARF CHELSEA FOOTBALL CLUB WANDSWORTH ROUNDABOUT EEL BROOK COMMON FULHAM BROADWAY UNDERGROUND STATION HURLINGHAM PARK PARSONS GREEN UNDERGROUND STATION PUTNEY BRIDGE UNDERGROUND STATION
PRIME FREEHOLD SUPERMARKET & RESTAURANT INVESTMENT OPPORTUNITY LOCATION Parsons Green is located in the London Borough of Hammersmith and Fulham, in South West London, and is one the most affluent areas within London. The area is centred at Parsons Green with Fulham Road and New Kings Road to the north and south respectively providing access to Fulham to the north east and Putney to the south west. Parsons Green is vibrant and popular with young professionals with its varied supply of bars, restaurants, cafes and shops. The area is serviced well by public transport with Parsons Green Underground Station, located in Zone 2, providing access to Victoria, via the District Line with a fastest journey time of 23 minutes. Regular bus services run from both Fulham Road and New Kings Road providing access to Central London in approximately 40 minutes. The A4 is located approximately 1.5 miles to the north of Parsons Green and provides access to the M4 (Junction 1) approximately 3.5 miles to the west and access to Central London approximately 2 miles to the east. Heathrow Airport is situated approximately 12 miles to the west and is the busiest airport in the United Kingdom and Europe serving approximately 75 million passengers in 2015. SITUATION The property is situated on the western side of Parsons Green Lane immediately north of its junction with Ackmar Road and Dairy Close. Fulham Road and New Kings Road are situated approximately 200m to the north and 300m to the south respectively and both roads provide access to Putney to the south west and Fulham Broadway to the north east. Parsons Green Underground station is situated immediately north of the subject property. Nearby occupiers include Little Waitrose, Whistles, Cote, Dexters Estate Agents, Brik Estate Agents and The White Horse Public House. Further retailing and restaurants/bars are located nearby on the New Kings Road to the south and Fulham Road to the north. A40 HAMMERSMITH BARNES SHEPHERD S BUSH HAMMERSMITH Westway FULHAM PARSONS GREEN PUTNEY BRIDGE PADDINGTON A4 EARL S COURT HYDE PARK KNIGHTSBRIDGE BATTERSEA PARK GT PORTLAND ST CENTRAL LONDON PICCADILLY CIRCUS GREEN PARK WESTMINSTER VICTORIA
6O DEMOGRAPHICS In the 2011 Census the population of Parsons Green and Walham was 10,813 with an average age of 35. The number of people economically active (full time) was 47.2% compared with the national average of 38.6%. Within Parsons Green and Walham, 20.6% of the population are managers/directors and senior officials compared to an average of 10.9% in England. 56.4% of people have level 4 qualifications and above compared with 27.4% in England. 47% of employed residents are working as managers, directors, senior officials or in professional occupations. 75% of adults aged 16-74 are economically active (71% in 2001). Densely populated ward in London Borough of Hammersmith and Fulham (121 people per hectare). 3.4% of the economically active are unemployed compared to the national average of 4.4%. 7O
PRIME FREEHOLD SUPERMARKET & RESTAURANT INVESTMENT OPPORTUNITY DESCRIPTION The property comprises two separate high street units arranged over ground floor only, forming part of a larger block. Both units benefit from excellent street frontage. The Co-operative is arranged to provide a large food store with a storage area to the rear, which also provides a staff kitchen, office and toilets. The Le Pain Quotidien is arranged to provide a substantial dining area with a kitchen to the rear. The unit also benefits from alfresco dining to the front on Parsons Green Lane. TENURE The property is held freehold. 43 45 47 49 51 53 52 54 56 58 60 62 29 27 Novello Street 49 51 53 Retail TENANCY SCHEDULE 50 45 47 49 51 55 57 59 61 1 Beaconsfield Walk 64 Parsons Green Station Parsons Green 55 57 59 63 65 31 33 67 34 71 73 4 75 77 Ackmar Road The White Horse 29 29a 27 27 23 25 27 3a 3b 2a 2b Unit Tenant Area (sq ft) Unit 1 (60) Co-Operative Group Ltd Rent (pa) 4,629 135,000 ( 29.16 psf) Unit 2 (70) Le Pain Quotidien Ltd 3,803 120,000 ( 31.55 psf) Lease Start Lease Expiry Rent Review Comments 29/11/2013 28/11/2033 29/11/2018 Benefits from 5 yearly RPI linked rent reviews compounded. Collared and capped at 1% and 4%. The lease contains an option for the tenant to renew for a further 15 years with a tenant break option in year 10, to be exercised from 28/05/2032 to 27/05/2033. 20/03/2009 19/03/2024 20/03/2019 8-10 Parsons Green Lane Parsons Green 60/84 Parsons Green Lane & Heathman s Yard London and Quadrant Housing Trust 1 19/10/2005 18/10/2130 Parsons Green Sub-station Eastern Power Networks Plc 0 10/06/2008 09/06/2107 7 5 Sub-station London Electricity Plc.5p (if demanded) 30/01/1991 29/01/2090 9 17 11 14 Park Total 8,432 255,001 19 16 50m 75m 34 32 30 28 26 24 22 20 18 St Dionis Road Crown Copyright, ES 100004106. For identification purposes only.
RECENT SIMILAR TRANSACTIONS Property Date Price Net initial Yield Heritage Lane, West Hampstead Cote, 45-47 Parsons Green Lane 227-231 Wimbledon Park Road, Wimbledon Queen s Park Place, Salusbury Road, Queen s Park Currently under offer April 2016 March 2016 March 2016 Summary 7.35m 4.15% Let to M&S and M&S Hot Food On The Move on new 15 year leases with 5 yearly RPI linked reviews (1-4%) and 3 local tenants on new 10 year leases 3.75m 3.20% Entirely let to Cote Restaurants with an unexpired term of 19 years with 5 yearly upward only reviews to OMV. 12.708m 4.25% Let to Marks & Spencer on a new 20 year lease with 5 yearly RPI linked reviews and The Gym also on a new 20 year lease 4.095m 4.50% Let to Marks and Spencer on a new 15 year lease with 5 yearly RPI linked reviews (1-4%) COVENANT INFORMATION The Co-Operative Group Ltd. The Co-operative Group is the largest consumer co-operative in the UK owned by more than 8 million members. The Co-operative Group employs over 70,000 people across the UK. The Group s food retailing business has over 2,700 stores. Le Pain Quotidien Ltd Le Pain Quotidien began in 1990 as a small bakery in Brussels. Today there are now more than 200 restaurants across five continents. The company s headquarters are based in New York. 02/01/2016 03/01/2015 04/01/2014 Turnover (000 s) 9,301,000 9,433,000 10,534,000 Pre-tax Profit (000 s) 23,000 124,000 ( 277,000) Total Net Worth (000 s) 2,006,000 1,940,000 756,000 27/12/2015 28/12/2014 29/12/2013 Turnover 34,276,593 33,964,901 30,833,303 Pre-tax Profit 960,579 313,445 802,887 Total Net Worth 5,722,190 5,040,199 5,547,238
VAT The property has been elected for VAT and as such the transaction will be treated as a TOGC. EPC 60 Parsons Green Lane has a rating of D(83). 70 Parsons Green Lane has a rating of F(136). PROPOSAL Offers are sought in excess of 5,300,000 (Five Million Three Hundred Thousand Pounds) subject to contract and exclusive of VAT. This reflects a net initial yield of 4.5% after allowing for purchasers costs of 6.6%. For further information or to make arrangements for viewing please contact: Andy Pointon 020 7543 6720 andy.pointon@allsop.co.uk Richard Lea 020 7543 6832 richard.lea@allsop.co.uk Lottie Hayward 020 7543 6750 lottie.hayward@allsop.co.uk www.allsop.co.uk Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design: CommandD www.commandhq.co.uk 07.16