LONG LET FREEHOLD OFFICE & RESIDENTIAL GROUND RENT INVESTMENT WITH RPI UPLIFTS BEDFORD ROAD CLAPHAM LONDON SW4

Transcription

1 LONG LET FREEHOLD OFFICE & RESIDENTIAL GROUND RENT INVESTMENT WITH RPI UPLIFTS BEDFORD ROAD CLAPHAM LONDON SW4

2 50-52 BEDFORD ROAD CLAPHAM LONDON SW4 7HJ INVESTMENT SUMMARY n Freehold n Globally recognised tenant n Mixed use scheme comprising ground floor offices with 40 residential units above. n New build Grade A office accommodation with a NIA 8,000 sq ft (743.2 sqm) n Excellent location 100m from North Underground Station n Offices let to KONE PLC (5A1 D&B rated) on a new FRI 21 year lease (TBO Year 15) n Office income producing 290,142 pax ( 30 psf net of 2,500 pax per car parking space) n Annually received rental uplifts to RPI + 1.5% pax collared and capped at 3% and 5% n Residential Ground Rent Income of 14,200 pax with 10 year RPI reviews with a minimum uplift of 3% pax n Total income 304,342 pax n Offers are sought in excess of 5,230,000 for the forward commitment to purchase the freehold interest, subject to contract and exclusive of VAT A purchase at this price reflects the following profile after allowing for purchaser s costs of 5.8%: Net initial yield 5.50% Equivalent yield 6.72% The property produces the following yield profile based on minimum uplifts of 3%: Year % Year % Year % Year %

3 FREEHOLD OFFICE & RESIDENTIAL INVESTMENT BEDFORD ROAD CGI Image

4 50-52 BEDFORD ROAD CLAPHAM LONDON SW4 7HJ LOCATION is located in the south London suburb of Lambeth. It is 4 miles (6.4 km) south west of Central London and nearby surburbs include Westminster, Wandsworth and Wimbledon. It benefits from excellent road links via the A30, A33 and A24 with direct access to the M25. has become an extremely popular and accessible commuter area popular with young professionals and affluent individuals. The area benefits from excellent public transport links via North Underground Station (100m) and Stockwell Station (900m). Overground rail services run from High Street (300m) linking to Victoria, Junction and Canary Wharf. Regular bus services are available from High Street (160m) to Central and Outer London. Harrow & Wealdstone The property is well-serviced by London airports with City Airport within 8.2 miles (13 km), Heathrow Airport within 13.9 miles (22 km) and Gatwick Airport within 21.1 miles (33.8 km). A3036 Wandsworth Road B303 B224 CLAPHAM COMMON Old Town A3 Long Road Cavendish Road Rectory Grove B2 2 4 A24 Common South Side Common Abbeville Road Larkhall Rise Manor Street North High Street A3 High Street Park Road Union Road A3 Road Bedford Road B221 Kings Avenue Landor Road THE PROPERTY Ferndale Road Hargwyne Street A2217 A203 Stockwell Road Acre Lane Pulross Road A23 Brixton Hill Brixton Atlantic Road Brixton Brixton Water Lane A2217 Coldhar bour Lane Effra Road A23 Brixton Road A2214 Dulwich Road SITUATION The subject property occupies a prominent position on Bedford Road situated adjacent to the East London Overground Line with direct access to High Street and Kings Avenue. The location is ideally situated to benefit from local amenities just a short walk from Common, High Street and Abbeville Road. The area has benefitted from largescale regeneration in recent years with a number of residential developments completed over the past few years with the residential element of the subject property completely sold off plan. In addition Bellway have developed Listello Buildings situated directly opposite the subject property. This comprises a development of over 60 flats of which 60% has been sold off plan with pricing rising to in excess of 800 psf.

5 50-52 BEDFORD ROAD New Covent Garden Market Westminster High Street North Tube High Street Stockwell Tube The City London Bridge Site outline for indicative purposes only WALKING North Underground High Street Common Abbeville Road 3 mins 5 mins 10 mins 10 mins PUBLIC TRANSPORT Waterloo Station 10 mins London Bridge 11 mins Bank (The City) 13 mins Oxford Circus 15 mins AIRPORTS City Heathrow Gatwick 8.2 miles 13.9 miles 21.1 miles

6 ARISTOTLE ROAD ELEVATION BEDFORD ROAD ELEVATION TENURE DESCRIPTION Freehold The entire property will comprise a mixed use development over ground and four upper floors with a gross internal area of 60,741 sq ft on a site area of 0.6 acres (0.245 hectares). The ground floor offices will be accessed from Bedford Road and developed to a grade A specification with raised access floors, air conditioning and 20 parking spaces providing an excellent ratio of 1:400 sq ft. The upper floors will consist of high quality residential apartments totalling 40 units. All these units have been sold off plan prior to the construction of the property. The property will benefit from underground basement parking and servicing. The office accommodation is designed to enable flexible conversion to residential use, subject to obtaining future planning consent. The purchaser will benefit from appropriate rights to utilise existing residential cores to assist with this. Practical completion of the office element is scheduled for October 2015 with the remainder of the property due in January The property will be constructed to a BREEAM Very Good rating and the purchaser will benefit from the usual range of warranties from the contractor and professional team.

7 m ra Cadmus House Railway Viaduct New 2.1m high timber fence to site boundary 2.1m high timber fence to play area 17.0m Primary aspect to secondary aspect Security Gates Secure Children's Play Area (160 sq.m) Seating New 3.0m high timber fence to site boundary Meeting Room 1 Fire Exit Seating Fire escape + stairs from Office u s C lo Grass 2.4m x 50.0m Visibility Splay 1.1m high stainless steel + glass balustrade balustrade to ramp Low level fence to play area Access Gate se ce Type 2 Gravel New 3.0m high timber fence to site boundary Ramp down to Basement (Gradient 1:10) Lobby 1.1m high stainless steel + glass balustrade balustrade to ramp Canopy (dashed) 12.0m Primary aspect to secondary aspect No. 1-3 Aristotle Road Lift Resi. Entrance 3 Balcony above (dashed) Shared Office 3 Type 2 Vertical landscaping to ramp wall Comms Print / Copy Breakout Access ramp to Children's Play Area New 2.1m high powder coated metal fence between brick piers Shared Office 2 Grass New 2.1m high powder coated metal security gate Lobby Grass No. 5-7 Aristotle Road New 3.0m high timber fence to site boundary Balcony above (dashed) Office Lift Resi. Entrance 2 Raised brick landscape bed Shared Office 1 Building above (dashed) Tarmac Tactile DK 743 sq.m (8,000 sq.ft) Nett Internal Area Vehicular Security Gated Access to Basement Office 1 Grass 19.3m Primary aspect to primary aspect Proposed site access subject to LPA approval Existing bollard and lamp post to be relocated Meeting Room 2 Existing boundary wall to be retained Residential Amenity Space (460 sq.m) Electricity Sub-Station Lobby 30.5m Lift Primary aspect to primary aspect 3 x Lambeth Bikehangers (18 Spaces) Existing boundary wall to be retained Lift Resi. Entrance 1 Office Entrance Visitor Seating Dis. W/C + Shower Raised brick landscape bed Grass Canopy (dashed) 6 Office Visitor Cycles Female W/C Male W/C Resi. Entrance Residential Lobby + Post Boxes Existing Garage DK Tactile Reception 6 Residential Visitor Cycles Access Gate Office Plant Enclosure 2.2m high wall A ri Existing Garage st o Existing Garage Bedford Road No. 9 Aristotle Road Access retained to arches tl APP USE D REF: 75 e R o a d TENANCIES Existing Garage RESIDENTIAL GROUND RENT 41.9m Primary aspect to primary aspect The residential element will be let on practical KONE PLC No completion on a long leasehold for a term of Aristotle The ground floor and 20 parking spaces in the 250 years at an initial rent of 14,200 pax. Road basement of the property will be let to KONE PLC The rent is subject to 10 year RPI reviews on an FRI basis for 21 years from practical competition and a minimum uplift of 3% pax. at an initial rent of 290,142 pax subject to a The ground leases reserve management tenant only break option in the 15th year. There and insurance to the freeholder. is no rent free on the office accommodation. Existing The lease incorporates annual rental uplifts linked to RPI plus 1.5% pax subject to a collar of 3% pax and cap of 5% pax. Garage The roof space will be subject to a 21 year lease to Oakapple Renewable Energy Ltd at an annual rent of 1 pa. The roof space will be utilised for the installation of solar panels. ACCOMMODATION OFFICE The ground floor of the development will comprise 2.4m x 50.0m No Visibility Splay office accommodation extending to a GIA of Bedford 10,103 sq ft and a NIA of 8,000 sq ft (743.2 sq m). Road RESIDENTIAL AND PARKING The upperparts of the development will comprise 28,567 sq ft (net) of residential accommodation over four floors and consist of 40 residential units broken down into 15 x 1 bed, 17 x 2 bed, 5 x 3 bed and 3 x 4 bed flats. The scheme will also incorporate 14,779 sq ft of amenity space. This drawing

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9 KONE, a globally recognised brand ranked the sixth most innovative company in Europe by Forbes 2014 DEVELOPMENT TIMETABLE The developers are currently onsite and have completed demolition of the existing premises. Practical completion is scheduled for October DEVELOPER The developer is The Oakapple Group who are Leeds based developer established in They have experience in a wide range of developments including multi million pound office, retail and mixed use projects across the UK. Further details can be found at COVENANT KONE was established in 1910 and is the global leader in the elevator and escalator industry with over 43,000 employees and in excess of 1,000 offices worldwide. KONE PLC is the primary UK subsidiary with a D&B rating of 5A1 and a minimum risk of business failure; the company has occupied the subject property since Recent trading figures for KONE PLC are shown below: s s s Turnover 229, , ,755 Pre-Tax Profits 12,326 14,460 31,593 Net Worth 64,195 69,498 55,472

10 50-52 BEDFORD ROAD CLAPHAM LONDON SW4 7HJ VAT The subject property has been elected for VAT, however it is envisaged the sale will be treated as TOGC. PROPOSAL Offers are sought in excess of 5,230,000 (Five Million, Two Hundred and Thirty Thousand Pounds) for the forward commitment to purchase the freehold interest, subject to contract and exclusive of VAT. A purchase at this price reflects a net initial yield of 5.5%, and an equivalent yield of 6.72% after allowing for purchaser s costs of 5.8%. A SDLT efficient and or long leasehold structure may be considered by the vendor. Further details on request. YIELD PROFILE The property produces the following yield profile based on minimum uplifts of 3%: Year % Year % Year % Year % For further information or to make arrangements for viewing please contact: Alex Butler alex.butler@allsop.co.uk Mark Dansky mark.dansky@allsop.co.uk Tom Dales tom.dales@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