nike store morning lane london e9 - allsop

NIKESTORE

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L O N D O N E 9

FREEHOLD RETAIL WAREHOUSE INVESTMENT OPPORTUNITY

IN A PRIME HACKNEY LOC ATION

ON THE INSTRUCTIONS OF J.WILLS MRICS AND N.PASK MRICS AS JOINT FIXED-CHARGE RECEIVERS

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M O R N I N G L A N E | N I K E S T O R E

EXECUTIVE SUMMARY

Freehold

Located in the heart of Hackney along a prominent stretch

of Morning Lane

Situated at the centre of Hackney's fashion hub adjacent

to Hackney Walk

Excellent transport connectivity with four London Overground

Stations within 11 minutes' walk

Retail warehouse developed in 2015, extending to 14,505 sq ft

(1,347.6 sq m) GIA arranged over lower ground, ground and

two upper floors

Single-let to Nike Retail B.V. expiring 28th February 2026

(approximately 4.80 years unexpired)

Total passing rent of £469,410 per annum reflecting

£30.00 per sq ft on the area defined in the lease

Longer term asset management opportunities for change

of use including alternative E Use Class and industrial

Opportunity to participate in the regeneration of the wider

area in accordance with Hackney's Local Plan

Offers sought in excess of £6,000,000 subject to contract

and exclusive of VAT

A purchase at this level reflects an attractive Net Initial Yield

of 7.34% and a capital value of £414 per sq ft, assuming

purchaser’s costs of 6.63%

SELF-CONTAINED RETAIL WAREHOUSE SINGLE-LET TO

NIKE

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LOCATION The property is situated in the vibrant and eclectic London Borough of Hackney, an area synonymous with fashion, food and the creative industries. The property is positioned on the northern side of Morning Lane, opposite its

junction to Chatham Place and a short walk to Mare Street. Located only 300m to

the west, Mare Street forms a primary route connecting Bethnal Green to Hackney

Central in East London.

The property is situated along a prominent stretch of Morning Lane, a retail

thoroughfare running through Hackney. The area attracts a diverse range of

occupiers from cafes, independent shops and local eateries to luxury outlets,

cocktail bars and restaurants. Hackney Walk, which sits adjacent to the site, offers

a luxury fashion outlet hub and urban development previously home to a number

of high end brands including Joseph, Anya Hindmarch and Matches. Burberry's

London outlet store is also located within close proximity, just 2 minutes' walk

to the south of the property.

The immediate area benefits from an abundance of amenities including the vast

retailing offering along Mare Street and Morning Lane and the numerous markets

including Mare Street Market, Broadway Market and Columbia Road Flower Market.

The area is home to Hackney’s main cultural offering with Hackney Town Hall,

Hackney Empire Theatre, Hackney Picture House and St Augustine’s Tower. Hackney

is also located within close proximity to the green open spaces of Hackney Downs

Park, London Fields and its famous lido and Victoria Park.

C A N A L S

C O F F E E S H O P S

O U T D O O RS P A C E S

M A R K E T SH I S T O R Y

A R C H I T E C T U R E

P O P U P S

A R T

P U B S + R E S T A U R A N T S

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CONNECTIVITY 107-117 Morning Lane benefits from excellent transport connectivity.

The property is located a short walk east of Mare Street,

an arterial road that runs through East London towards the

City of London.

Hackney is served by a robust network of London Overground

routes with several stations located a short walk from the

property including; Hackney Central; Hackney Downs;

Homerton; and London Fields. Hackney Central Station,

situated only 0.3 miles to the west, operates direct services

to Highbury & Islington (7 minutes), Stratford (10 minutes)

and Clapham Junction (55 minutes).

Hackney Downs and London Fields Stations offer direct trains

into London Liverpool Street within 9 minutes, which will

operate Crossrail services from early 2022.

There are numerous bus routes in operation along Mare Street

and Morning Lane serving the immediate and wider area.

LOCAL OCCUPIERS + AMENITIES

STATION WALKING MAP

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TESCO

M&S

ST AUGUSTINE’S TOWER

THE TEXTILE BUILDING

HOMERTONUNIVERSITYHOSPITAL

HACKNEY DOWNS PARK

HACKNEYTOWN HALL

HACKNEY EMPIRETHEATRE

HACKNEY PICTUREHOUSE

TRAVELODGE HACKNEY

7 MIN

S

11 MIN

S

10 MINS11 MINS

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BURBERRYPRINGLE

LONDONFIELDS

HACKNEYDOWNS

HACKNEYCENTRAL

HOMERTONO V E R G R O U N D

U N D E R G R O U N D

N A T I O N A L R A I L

E L I Z A B E T H L I N E

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LOCAL DEVELOPMENTS

HAGGERSTON BATHS, E8The restoration and redevelopment of the Grade II listed Haggerston Baths by Castleforge will create a 55,000 sq ft Squire and Partners Architects designed office scheme. Completion is forecast for Q4 2022.

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NETIL AND RICHMOND HOUSE, E8Acquired by Brunswick Real Estate in 2019 Netil and Richmond House comprises 55,740 sq ft GIA and is operated as a serviced office. The site has medium to longer term redevelopment potential to support a commercial building of c.70,000 sq ft and also offers potential repositioning of the adjoining market site.

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10-14 HOLLYBUSH GARDENS, E2Refurbishment and redevelopment of an existing warehouse building by Brockton Capital into a 50,000 sq ft office building which is likely to be operated by their serviced office brand FORA. Completion likely 2024.

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55 MORNING LANE, HACKNEY WALK, E9Site earmarked for a large mixed-use development over the existing Tesco site, to provide office, retail and residential accommodation.

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WATERMARK, SHEEP LANE, E8Development by Aitch Group comprising 35,000 sq ft of office space over lower ground, ground and first floors with 40 residential units above. The scheme was completed Q4 of 2020.

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255-279 CAMBRIDGE HEATH ROAD, E2Acquired by Telford Homes in 2018 the housing developer has submitted plans for a new development opposite Bethnal Green Town Hall comprising 189 residential units of which 40% will be affordable and c.18,000 sq ft of commercial space. The developer is currently appealing the planning consent refusal and is hoping that by the end of 2021 they will be able to push forward to deliver the scheme.

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55 MORNING LANE

The redevelopment of the extensive Tesco site along Morning Lane represents the largest regeneration opportunity within the area to date.

The site has been earmarked for a major redevelopment project which will transform the 3.45 acre site.

Discussions are currently underway for a mixed-use scheme which will provide office retail and residential accommodation within the heart of Hackney.

HACKNEY WALK & MORNING LANE RAILWAY ARCHES

Opening its doors for business in 2016, Hackney Walk provided a new retail concept transforming 12 derelict railway arches into London's first luxury outlet. Designed by Manhattan Loft Corporation and Chatham Works, the project sought to create a new fashion hub comprising 6,250 sq m of retail and workshops for up-and-coming local designers as well as a creative and vibrant space for F&B occupiers.

Having been home to occupiers such as Zadig and Voltaire, Gieves and Hawkes, luxury cashmere brand Colombo, Nicole Farhi, and Matches many of the original retailers have since vacated leaving the estate ripe for repositioning.

In light of the Hackney Walk project never reaching its projected size and scale, the area has become a major focus of the London Borough of Hackney, with plans for a creative destination for retail, cafe and leisure space synonymous with its heritage.

REGENERATION Formally renowned for its industrial heritage, Hackney has undergone significant regeneration in recent years to transform the local area into a diverse and dynamic environment accommodating a mix of residential developments, retail & leisure offerings and creative workspaces.

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The property provides 14,505 sq ft

(1,347.6 sq m) GIA of modern retail and

ancillary accommodation arranged over

lower ground, ground and two upper floors.

The property is accessed via an attractive

double height glassed entrance fronting

Hackney Walk and an additional entrance

to the northern side of the building.

The building benefits from a single person

passenger lift that serves all floors, single

stair core, c.4m slab to slab heights and

exposed services.

BUILDING DESCRIPTION Developed in 2015, the property comprises a self-contained retail warehouse building of steel frame construction.

The property has been measured by Plowman and Craven in accordance with the RICS Code of Measuring Practice 6th Edition.

SCHEDULE OF ACCOMMODATION

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Floor Use GIA (sq ft) GIA (sq m)

Second Retail 3,841 356.8

First Retail 3,401 316.0

Ground Retail 3,750 348.4

Lower Ground Retail 3,513 326.4

14,505 1,347.6

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TENUREThe property is held Freehold and registered under the following title numbers: 274187; NGL419567; LN57965; and 276131, outlined on the map below.

TENANCY The property is single-let to Nike Retail B.V. on a full repairing and insuring lease for a term expiring 28 February 2026 (approximately 4.80 years unexpired).

The Basic Rent is £469,410 per annum equating to £30.00 per sq ft overall based on the area in the lease of 15,647 sq ft reviewed at the fifth anniversary of the term commencement date. The March 2021 rent review is outstanding.

In addition to the Basic Rent there is a Turnover Rent.

The Turnover Rent is the amount by which the Turnover Rent Proportion exceeds the Basic Rent.

The Turnover Rent Proportion is defined as follows:

(1) 8% of gross turnover, where the gross turnover is less than £6,000,000 in the relevant turnover year;(2) 10% of gross turnover, where the gross turnover is between £6,000,000 and £8,000,000 in the relevant turnover year;(3) 12% of gross turnover, where the gross turnover is £8,000,000 or higher in the relevant turnover year.

The lease is held inside the security of tenure provisions of the Landlord and Tenant Act 1954.

The purchaser will be required to enter into a direct deed with the Church of St. John at Hackney to take over the cable easement at a cost of £10,000 per annum, until 2041 and then subject to review.

COVENANT INFORMATIONNike Retail B.V. is a Netherlands based subsidiary of Nike European Operations Netherlands B.V. (NEON). NEON was established in 1994 and forms part of the Nike Group responsible for the regional execution of NIKE’s global sales and marketing strategy.

Nike is a global brand and the world's largest supplier and manufacturer of athletic shoes, apparel and other sports equipment. The American based multinational corporation has an estimated net worth of $34.8 billion worldwide.

Despite the impact of the Global Pandemic at the quarter ending 28 February 2021 Nike reported a revenue rise of three per cent to $10.4 billion (7.4 billion) citing 51% increase in sales in Greater China as the main catalyst for this.

The following accounts were taken from the tenant’s parent company NEON, as the financial data of the company is included in the consolidated accounts of the parent company.

NEON B.V, HILVERSUM AUDITED ACCOUNTS

MAY 31 2020 MAY 31

2020 2019

EUR'000 EUR'000

ASSETS - NON CURRENT 651,173 688,224

ASSETS - CURRENT 5,009,402 7,161,951

ASSETS - TOTAL 5,660,575 7,850,175

SHAREHOLDER'S EQUITY 2,482,047 4,033,473

NON CURRENT LIABILITIES 8,532 14,895

CURRENT LIABILITIES 3,169,996 3,801,807

RESULT FROM PARTICIPATION AFTER TAX 41,844 61,951

OTHER INCOME AND EXPENSES AFTER TAX 166,422 601,198

NET RESULT OF THE YEAR 208,266 663,149


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FURTHER INFORMATION

ASSETMANAGEMENT The property offers multiple asset management opportunities in the medium to longer term including the following:

Splitting the existing retail unit into smaller units;

Flexible commercial use under the E Use Class

of the Town and Country Use Class Order 1987

(amended September 2020), enabling conversion

to office, leisure or alternative retail uses without

planning, with prime office rents in the location

achieving in excess of £35.00psf;

Consideration of a change of use, subject

to planning, to the highly desirable uses of light

industrial, logistics or distribution;

Opportunity to work with the London Borough

of Hackney to assist with the future regeneration

and repositioning of Morning Lane and

Hackney Walk.

PLANNINGThe property is located within the London Borough of Hackney. The property is not listed nor does it lie within a conservation area. VATThe property is elected for VAT. VAT will therefore be payable on the purchase price. It is anticipated that the transaction will be treated as a Transfer of a Going Concern. EPCThe property has an EPC rating of C. A copy of the certificate is available upon request.

VIRTUAL TOURhttps://my.matterport.com/show/?m=wxuEte2VBpz

DATAROOM Further information can be found on the online dataroom. Please contact the vendor's agent to request access.

PROPOSALWE ARE INSTRUCTED TO SEEK OFFERS IN EXCESS OF £6,000,000 (SIX MILLION POUNDS) SUBJECT TO CONTRACT AND EXCLUSIVE OF VAT FOR THE FREEHOLD INTEREST IN THE PROPERTY.

A PURCHASE AT THIS LEVEL REFLECTS AN ATTRACTIVE NET INITIAL OF 7.34%, AND A CAPITAL VALUE OF £414 PER SQ FT AFTER PURCHASER’S COSTS OF 6.63%.

CONTACTSFor further information please contact the vendor's sole agent Allsop LLP Christopher Room07827 [email protected] Oliver Turney07425 [email protected] Florence Rothwell07595 [email protected]

Allsop LLP on their behalf and for the Vendors or Lessors of this property, whose Agents they are, give notice that: These particulars are set out as a general outline only

for guidance to 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 Parties 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 Allsop LLP has any authority to make any representation or warranty whatsoever in relation to this

property. Unless otherwise stated, all prices and rents are quoted exclusive of VAT. The market statistics, rental and investments comparables have been supplied by

third parties and their accuracy cannot be guaranteed. May 2021

nike store morning lane london e9 - allsop

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