cresta house finchley road london final.pdf · swiss cottage is an affluent london suburb located...

CRESTA HOUSE125-133 FINCHLEY ROAD, LONDON, NW3 6HT

CENTRAL LONDON FREEHOLD MIXED USE INVESTMENT OPPORTUNITY ENTER

CENTRAL LONDON FREEHOLD MIXED USE INVESTMENT OPPORTUNITY

CRESTA HOUSE, 125-133 FINCHLEY ROAD, LONDON, NW3 6HT

HOME INVESTMENT SUMMARY

LOCATION, SITUATION

AERIAL DEMOGRAPHICS, PLANNING

DESCRIPTION ACCOMMODATION TENANCY SCHEDULE, TENURE

COVENANTINFORMATION

VAT, EPC, DATAROOM,ASSET MANAGEMENTINITIATIVES

MARKET COMMENTARY

PROPOSAL,FURTHER INFO

INVESTMENT SUMMARY

n An opportunity to acquire a prime central London mixed use investment.

n SwissCottageisanaffluentLondonsuburb with excellent road and rail transport links.

n Highly prominent location and immediately adjoining Swiss Cottage Underground station.

n The investment comprises three self-containedgroundfloorA1/A2units,twofloorsofofficesandthirtyeightresidentialflats(soldofflongleasehold).

n The commercial element is multi let to three tenants with an AWULT of 3.97 yearstoleaseexpiry(2.18yearstobreaks).

n Let to London Overground Rail Operations Limited, Barclays Bank Plc andGHCranfieldsLLP.

n Freehold.

n 56 car parking spaces.

n Totalincomeof£677,193perannum.

n Offerssoughtinexcessof£11,100,000 (Eleven Million and One Hundred Thousand Pounds), subject to contract and exclusive of VAT.

n A purchase at this level represents a net initial yield of 5.77% and equates toacapitalvalueof£483persqft,basedupontheofficeandgroundfloorareaonly.

LOCATIONSwiss Cottage is an affluent London suburb located within the London Borough of Camden. The suburb is located approximately 2.3 miles (3.7 km) north west of central London, with Hampstead to the north, St John’s Wood to the south and Kilburn to the west.

Swiss Cottage has excellent road links, with the A41, Finchley Road, running north to the M1 and A1, whilst to the south the A41 runs all the way to Baker Street in central London. From Baker Street, the A40 is easily accessible, providing direct access to Uxbridge, High Wycombe and Oxford to the north west via the M40.

Swiss Cottage also has very good rail links with three London Underground/Overground stations serving the immediate area: Swiss Cottage (Jubilee Line), South Hampstead (London Overground) and Finchley Road (Jubilee and Metropolitan lines). These stations serve a wide range of destinations, both into and out of central London, with a fastest journey time to Baker Street station of approximately four minutes and Westminster station of approximately 11 minutes via the Jubilee line. South Hampstead (linking with Watford Junction and London Euston) and Finchley Road & Frognal mainline stations (linking with Stratford, Richmond and North Woolwich) are also well connected on national railway networks.

Opposite the property at 100 Avenue Road, Essential Living have a planning application lodged for a residential tower of 24 storeys comprising of 184 units.

In spite of officer recommendations, the scheme was turned down by the London Borough of Camden in September 2014. Essential Living confirmed in January 2015 that they are appealing the decision and this process is ongoing.

SITUATIONCresta House is situated on the western side of Finchley Road (A41) close to St John’s Wood and Primrose Hill which are 0.7 miles (1.1 km) to the south and 1.1 miles (1.7 km) to the south east respectively.

The property occupies a highly prominent position being immediately adjacent to Swiss Cottage Underground Station, 450 metres from South Hampstead overground station and 650 metres from Finchley Road Underground Station.

The property also benefits from its close proximity to Finchley Road’s main retail pitch to the north where retailers include Marks & Spencer Simply Food, Boots, Argos and McDonalds.

River Thames

A1

A5

A5

A40

A4

A501

A10

A41A400

A404 A11

A13

A1203

A100

A201

A503

A41

CRESTA HOUSE

Regent’s Park

HydePark

KensingtonGardens

GreenPark St James’s

Park

FITZROVIA

VICTORIA

MAYFAIR

SOHO

WATERLOO

CITY OFLONDON

CAMDEN TOWN

KENTISH TOWNBRONDESBURY

KENSINGTON& CHELSEA

KILBURN

PADDINGTON

HAMPSTEAD

ISLINGTON

HOXTON

DALSTON

MAIDA VALE

PRIMROSE HILL

SHOREDITCH

ST JOHNSWOOD

BELS

IZE AVE

BUCKLAND

CR

ESBE

LSIZE L

N

BELS

IZE

GRO

VE

BELSIZE PARK GARDENS

ETON AVE

LANCASTER GROVE

GLOUCESTER AVE

KING HENRY’S RD

PRIMROSE HILL RD

REGENT’S PARK RD

CARLTON HILL

B413 CARLTON VALE

LOU

DO

UN

RD

GRO

VE E

ND RD

HALL RD

CIRCU

S RDABERCORN PL

ELFIN AVE

MARLBOROUGH PL

HAMILTON TERRACE

GREVILLE RD

BOUNDAR

Y RD

PRIO

RY R

D

BROADHURST GARDENS

WOODCHURCH RDMESSINA AVE

ACACIA RDQUEEN’S GROVE

ELSWORTHY RD

VICTORIA RD

COMPAYNE GARDENSNETHERWOOD ST SHERRIFF RD

IVERSON RD

ST JO

HN

’S W

OO

D P

ARK

TOWNSHEND RD

ST JOHN’S WOOD HIGH ST

LYMINGTON RD

KILB

URN

PAR

K RD

BRONDESBURY VILLAS

BELSIZE RD

A502 HAVERSTOCK HILLB511 FITZJO

HN

’S AVE

A5205 PRINCE ALBERT RD

A520

5

AVENUE RD

B517 MALDEN

RD

A5 MAIDA VALE

A5 KILBURN HIGH RD

A41 WELLINGTON RD

A41

FIN

CHLE

Y RD

A41 FINCHLEY RD

B507 GROVE END

RD

B507 ABBEY ROAD

B51

0 W

EST

END

LN

B509 ADELAIDE RDSWISS COTTAGE

KILBURN HIGH RD

SOUTHHAMPSTEAD

FINCHLEY ROADWEST HAMPSTEAD

WEST HAMPSTEADTHAMESLINK

ST JOHN’S WOOD

WEST HAMPSTEAD

CHALK FARM

KILBURN PARK

PRIMROSE HILL

100 AVENUE RD

LORDSCRICKETGROUND

REGENTS PARK

CRESTA HOUSE


LOCATION, SITUATION



COVENANTINFORMATION


MARKET COMMENTARY




A41 FIN

CHLEY R

OA

D

A 4 0 W E S T W A YM A R Y L E B O N E R D

A 4 1 W E L L I N G T O N R D


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COVENANTINFORMATION


MARKET COMMENTARY


BT TOWER REGENTS PARK PRIMROSE HILL WEST END BAKER STREET HYDE PARK LORDS CRICKETGROUND

PADDINGTONSTATION

ODEONCINEMA

SOUTH HAMPSTEAD

STATION

SWISS COTTAGEUNDERGROUND STATION

SUBJECT PROPERTY



DEMOGRAPHICSSwiss Cottage and adjoining areas such as St John’s Wood, Hampstead and Primrose Hill are densely populated and highly affluent. Within a five minute drivetime of the property the population is estimated to be 81,000 rising to 318,000 within a ten minute drivetime.

The largest proportions of the Swiss Cottage population are classified as Liberal Opinions (young, well educated professionals) and Alpha-Territory (successful and substantially wealthy households). Furthermore, the proportion of the population that is aged 20-44 is well above the national average.

Swiss Cottage has a far higher than average number of high income households, particularly over £50,000 per annum, with the majority of low income households being under represented compared to the rest of the UK.

PLANNINGThe site was granted planning consent on 19th September 1979 for the erection of a nine storey and basement building providing a bank and two retail units on the ground floor, offices on the first and second floors, 36 maisonettes on 3rd to 9th floor, 29 car parking spaces at basement level and incorporation of a pedestrian access to Swiss Cottage Underground Station.


LOCATION, SITUATION



COVENANTINFORMATION


MARKET COMMENTARY




DESCRIPTIONCresta House was developed in 1983 and provides a mixed use building arranged over basement, ground and nine upper floors.

The ground floor provides three glazed self-contained A1/A2 units known as 127, 129 and 131 Finchley Road. The office accommodation is arranged over part ground, first and second floors with a self-contained ground floor entrance at the south end of the building.

Internally, the property benefits from:n Comfort coolingn Suspended ceilings with recessed lightingn Under floor trunkingn One 1000 kg / 8 person passenger lift serving ground to

second floorn Male, female and disabled WC facilities on all floors

There are thirty seven flats and one penthouse, accessed via their own dedicated entrance at the north end of the building, situated on the third to ninth floors. All are sold off on long leases for 125 years from 25th March 1983.

The offices and one ground floor unit are currently used by London Overground Rail Operations Limited as their headquarters from which they run the control of all London Overground Stations.

There is extensive secure car parking for 56 vehicles accessed from Belsize Road via an electronically controlled gate. The basement contains 29 spaces allocated to the residential leases with the surface car park providing a further 27 spaces. Of these 13 spaces are allocated to commercial tenants, one to a flat tenant, with 10 available to be let to third parties. 3 spaces are reserved for visitors.

The total site area is 0.584 acres.


LOCATION, SITUATION



COVENANTINFORMATION


MARKET COMMENTARY




ACCOMMODATIONThe property has been measured by Lane & Frankham in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following net internal floor areas:

Tenant Floor Use Area (sq ft) Area (sq m)

London Overground Rail Operations Limited

Ground Office 1,168 108.50

Barclays Bank Plc Ground Banking - Sales 4,606 427.90

Banking - ITZA 2,155 200.21

GH Canfields Ltd Ground Office 2,666 247.70

Storage / Reception 606 56.30


First Office 6,768 628.80

Storage / Ancillary 213 19.80


Second Office 6,748 626.90

Storage / Ancillary 216 21.10

TOTAL 22,991 2,137


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COVENANTINFORMATION


MARKET COMMENTARY




TENANCY SCHEDULE

Unit Tenant Floor LeaseStart

Lease Expiry (BreakOption)

RentReview

Rent (perannum)

Rent (persqft) Comments

127 Finchley Road London Overground Rail Operations Limited Part Ground 24/06/2014 23/06/2019

(25/12/2016) £43,512 £37.25Mutual break option anytime between 13/11/2016 and 12/11/2017 on six months prior written notice.

129 Finchley Road GH Canfields Ltd Part Ground 20/09/2010 19/09/2020 20/09/2015 £35,000 £10.70

131 Finchley Road Barclays Bank Plc Part Ground 07/09/2012 06/09/2017 £120,000 £55.68 ITZA

125 Finchley Road London Overground Rail Operations Limited 1st & 2nd Floor 24/06/2014 23/06/2019

(25/12/2016) £441,756 £31.77Mutual break option anytime between 13/11/2016 and 12/11/2017 on six months prior written notice.

2 x Car Parking Spaces GH Canfields Ltd 13/12/2010 Monthly licence £3,400 Determinable by either party on one months notice.

10 x Vacant Car Parking Spaces (£2,500 per annum per space) Vendor Rental Guarantee Completion

12 months from

completion £25,000 Guarantee includes rates.

38 Flats Residential Ground Rents 25/03/1983 24/03/2108 £8,525 Ground rents double in 2033, 2058 and 2083.

Total £677,193

TENUREThe property is held freehold.

• There is an internal only lease of the residential parts of the property and the common parts of the property used by the residential tenants to a group company of the seller (Citruz Properties (Basingstoke) Limited). This lease sits between the freehold interest and the residential occupational interests. The seller is therefore able to proceed with an asset sale without serving offer notices on the residential occupational tenants.

• London Underground have rights reserved over passageways serving the adjoining Underground Station at basement level.


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COVENANT INFORMATION

Barclays Bank Plc Barclays Bank is the second largest bank in the UK by assets and has a current market capitalisation of £27.12bn. The company also operates in 27 countries and has in the region of 50 million customers worldwide.

Barclays Bank Plc has a Dun & Bradstreet rating of 5A1 based on a tangible net worth of £53,324,000,000 representing a ‘minimum risk’ of business failure. The company has reported the following accounts over the past 3 years:

31 December 2013 £000’s

31 December 2012 £000’s

31 December 2011 £000’s

Sales Turnover £36,873,000 £34,337,000 £43,102,000

Pre-Tax Profit (Loss) £2,885,000 £99,000 £5,974,000

Tangible Net Worth £53,324,000 £52,123,000 £54,232,000

Net Current Assets (Liabilities)

£54,717,000 £47,078,000 £49,849,000

London Overground Rail Operations Limited (LOROL)London Overground Rail Operations Limited, formerly known as MTR Laing Metro Limited, is a train operating company contracted to operate the London Overground train service on the National Rail network, under the franchise control of Transport for London. The company is a 50/50 joint venture between the European transport operator Arriva’s division Arriva UK Trains and the Hong Kong rail operator MTR Corporation.

London Overground Rail Operations Limited has a Dun & Bradstreet rating of 1A2 based on a tangible net worth of £725,000 representing a ‘lower than average risk’ of business failure. The company has reported the following accounts over the past 3 years:

31 March 2014£000’s

31 March 2013£000’s

31 March 2012£000’s

Sales Turnover £131,715 £126,829 £110,481

Pre-Tax Profit (Loss) £2,262 £7,085 £8,192

Tangible Net Worth £725 £2,328 £4,877

Net Current Assets (Liabilities)

£11,314 £6,449 £1,969

GH Canfields LLPGH Canfields LLP is a local firm of solicitors. The company primarily deals in Employment Law, Property Law, Litigation, Wills and Probate and Family Law.

31 July 2013£

31 July 2012£

31 July 2011£

Net Current Assets £491,995 £492,877 £293,584


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MARKET COMMENTARY




VATThe property is elected for VAT and it is proposed that the sale will be treated as a Transfer of Going Concern (TOGC).

ENERGY PERFORMANCE CERTIFICATEThe property has varying EPC ratings which are stated below. Energy Performance Certificates are available on the Lewis Ellis website.

Address Energy Performance Asset Rating

125-127 Finchley Road E (124)

129 Finchley Road F (136)

131 Finchley Road D (82)

DATA ROOMThere is a data room for the property containing key tenancy information, title documents, Lane and Frankham Area Referencing Report and EPC’s. Access can be arranged via Lewis Ellis.

ASSET MANAGEMENT INITIATIVES• Scope for regearing London Overground Rail Operations

Limited.

• Scope for refurbishing offices, current rent (£31.77 psf) is on an unrefurbished basis. Bearing in mind Baker Street rents are now in the region of £60 psf, there is the potential for a significant reversion if the offices were brought up to grade A standard.

• Subject to planning, there is scope to convert the first and second floors to residential. Swiss Cottage has continued to rise in popularity as a residential location over the last few years to become one of Central London’s most desirable neighbourhoods with residential capital values now in excess of £1,200 per sq ft.

PROPOSALWe are seeking offers in excess of £11,100,000 (Eleven Million, One Hundred Thousand Pounds), subject to contract and exclusive of VAT. This reflects a net initial yield of 5.77%, after the deduction of the usual purchaser’s costs of 5.80%.

The vendor will guarantee the rent and empty rates liability on the vacant car parking spaces for a period of 12 months from completion.

FURTHER INFORMATIONShould you require any additional information or wish to view the property please contact either:

Simon LewisTel: 0207 493 3330Mob: 07831 527 960Email: [email protected]

Tony BurlingTel: 0207 493 3330Mob: 07860 555 769Email: [email protected]

David KosTel: 0207 493 3330Mob: 07709 813 267Email: [email protected]

Lewis Ellis LLP for themselves and for the vendors or nominees or lessors of this property whose agents they are give notice that: (1) the particulars are set out as a general outline only for the guidance of the intending purchasers or lessees, and do not constitute part of an offer or contract; (2) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct, but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (3) no person in the employment of Lewis Ellis LLP has any authority to make or give any representation or warranty whatever in relation to the property. Designed and Produced by Creativeworld. Tel: 01282 858200. February 2015.


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MARKET COMMENTARY




mailto:[email protected]?subject=Cresta House Enquiry



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cresta house finchley road london final.pdf · swiss cottage is an affluent london suburb located...

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