A PROMINENT RETAIL INVESTMENT OPPORTUNITY London NW8 7NL
INVESTMENT CONSIDERATIONS Prominent, freehold property situated in St John s Wood, an affluent north west London suburb Comprising 765 sq ft (71 sq m) of retail accommodation on the ground floor Let to the 5A1 covenant of Oxfam until 30th July 2028 (10 years unexpired) Recently renewed lease at a rent of 70,000 per annum, reflecting 176.32 psf ZA Upper floors provide four residential flats which have been sold off on long leases with current ground rents amounting to 800 per annum Strategic position with frontage onto St John s Wood High Street and in very close proximity to the underground station Offers sought in excess of 1,700,000 subject to contract and exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of 3.92% (net of purchaser s costs of 6.13%).
LOCATION St John s Wood is an affluent suburb in northwest London, located in the City of Westminster and on the northwest side of Regent s Park, just 1.3 miles (2.1 km) north of Paddington. St John s Wood High Street is positioned in the heart of St John s Wood, with Primrose Hill, Regent s Park and the home of cricket, Lord s Cricket Ground, on its door step. The area benefits from a number of tourist hotspots including TFL London Zoo and the Beatles Abbey Road Studios and zebra crossing, attracting thousands of visitors and creating a lively and sociable area. Primrose Hill St John s Wood Underground Station St John s Wood is one of the London s most upmarket residential locations, with the main retail and leisure facilities focused around the High Street. The street encompasses a unique village atmosphere with designer fashion boutiques, including The Kooples and Liu Jo, popular restaurants and delicatessens, such as The Ivy Café, The Bread Shop and Harry Morgan s Deli, as well as lifestyle occupiers including Ozzy Hair Design. ZSL London Zoo The Regent s Park Lord s Cricket Ground St John s Wood is one of the London s most upmarket residential locations The City The Shard
Marlboroug PRIMROSE HILL COMMUNICATIONS Loudoun Road ST. JOHN'S WOOD Circus Road St John s Wood enjoys a village atmosphere yet offers excellent links to central London and the M4, making it a very desirable residential location. ercorn Place Abbey Road Hall Road Grove End Road Circus Road Wellington Road Kingsmill Terrace Cavendish Avenue LORD'S CRICKET GROUND Wellington Road Wellington Place Cochrane Street St John's Wood High Street Prince Albert Road THE REGENTS PARK The area is well positioned in relation to the underground network. St John s Wood Underground Station is 0.2 miles (4-minute walk) from the subject property, which offers services on the Jubilee line. Baker Street Underground Station is 1.0 mile (20-minute walk) to the south, providing services on the Metropolitan, Hammersmith & City, Bakerloo and Circle lines; enabling fast communications across London. South Hampstead station is situated just 0.8 miles to the north west (17-minute walk) providing overground services to Wembley Central, Harrow & Wealdstone and Watford Junction and Marylebone is 1.0 mile to the south (21-minute walk). St John's Wood Road Park Road Finchley Road 3 mins 4 mins St John s Wood Bond Street 4 mins Westminster 9 mins JUBILEE LINE West Hampstead 5 mins Swiss Cottage 2 mins Baker Street 2 mins Green Park 6 mins Waterloo 10 mins Travel times are approximate. Researched from www.tfl.gov.uk
SITUATION The subject property is in the prime retail pitch on the west side of St John s Wood High Street, towards its intersection with both St John s Wood Terrace and Circus Road. UNICO GELATO AND CAFE Surrounding occupiers include The Bread Shop, Leonidas, The Ivy Café, Boots, Holland & Barrett and Space NK. DEMOGRAPHICS The property benefits from a very affluent surrounding catchment population, with a significantly high proportion of AB category households (40.2% compared to the national average of 22.2%). AB C1 C2 DE UNDER OFFER St John s Wood UK The area is categorised by working aged professionals, with 50.2% aged 20-44 and 39.7% of employed residents working within higher managerial/director professional roles. 73% of the immediate 10-minute 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 store benefits from a densely populated catchment area with 91,149 people living within a 1-mile radius. Distance Population Households 0.5 miles 19,566 9,113 1.0 miles 91,149 42,455 2.0 miles 382,842 177,930 VACANT CHANCELLORS ESTATE AGENT OZZY HAIR DESIGN Popular retail pitch with surrounding occupiers including designer and independent boutique stores, restaurants and cafés.
DESCRIPTION The property comprises a prominent building arranged over four storeys. The residential upper parts comprise four separate flats, accessed from Cochrane Mews at the rear, which have been sold off on 125 year long leasehold interests from 1988. Oxfam has been in occupation of the ground floor shop for over 20 years and also occupies the adjacent property, 63 St John s Wood High Street, on a co-terminus lease with internal customer access between the two units. The property has been measured in accordance with the RICS Code of Measuring Practice 6th Edition and provides the following areas: Description Area (sq ft) Area (sq m) Ground Floor Sales 509 47.29 Ground Floor Ancillary 256 23.78 ITZA 380 35.30 Total 765 71.07
TENANCY The ground floor is let to Oxfam on a 10 year lease from 31st July 2018 at a current passing rent of 70,000 per annum ( 176.32 psf ZA) subject to an open market rent review in the fifth year. There is a tenant option to break on 30th July 2023 subject to 6 months notice. The residential upper parts are sold off on four leases, one for each flat, all being for terms of 125 years less 10 days from 24th June 1988 at a rent of 200 pa each for the first 50 years then 400 pa for the next 50 years and 1,000 pa for the residue. TENURE The property is held Freehold under title number NL56344. The Freehold is to be sold along with two intermediary long leasehold interests: NGL902980 on the ground floor and NGL633754 on the upper parts). COVENANT INFORMATION Oxfam is a registered charity and has numerous shops all over the world which sell many fair trade and donated items. The worldwide charity was established in 1942 and now employs over 5,300 employees and 26,000 volunteers. It trades from over 750 shops throughout the UK and is the largest retailer of second-hand books in Europe, selling around 12 million per year. With a Dun & Bradstreet rating of 5A1, the covenant has a minimum risk of business failure. A summary of the last three years accounts is set out below: Y/E YE 31/03/2017 Y/E 31/03/2016 Y/E 31/03/2015 000 000 000 Sales Turnover 408,600 414,700 401,400 Pre-Tax Profit 6,000 (6,000) 13,600 Net Worth 76,500 82,800 77,200 RENTAL VALUE COMPARABLES The current passing rent of 70,000 per annum was agreed at the July 2018 lease renewal and increased from the previous passing rent of 63,500 per annum. 70,000 per annum reflects a Zone A rate of 176.32 psf which sits comfortably with the existing evidence on the street: St John s Wood Tenant Date Transaction Rent ITZA (psf) High Street No 41 Face Gym July 2017 Letting 217.77 No 120 The Ivy Café Sept 2016 Regear 245.00 No 1 The Good Life Eatery Sept 2016 Letting 199.01 No 15 Savills Estate Agents Sept 2015 Rent Review 190.28 No 100/102 NatWest Bank June 2015 Rent Review 180.00 No 45 Topps Tiles Jan 2015 Letting 184.25
VAT The property is not currently registered for VAT. EPC An EPC for the property can be obtained upon request. PROPOSAL Offers sought in excess of 1,700,000 subject to contract and exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of 3.92% (net of purchaser s costs of 6.13%). FURTHER INFORMATION Becky Hance T/ 020 7344 6841 E/ Becky.hance@colliers.com Charles Teacher T/ 07768 191111 E/ Charlesteacher@teachermarks.co.uk Colliers International 50 George Street London W1U 7GA Teacher Marks Consultancy LLP 6th Floor, 9 Argyll Street London W1F 7TG MISREPRESENTATION ACT DISCLAIMER Colliers International and Teacher Marks give 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 or Teacher Marks has any authority to make any representation or warranty whatsoever in relation to this property. September 2018. Colliers International is the licensed trading name of Colliers International UK Plc. Company registered in England & Wales no. 4195561. Registered office: 50 George Street, London W1U 7GA. Designed and produced by Oracle Creative www.oraclecreative.co.uk