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
HOME INVESTMENT SUMMARY
LOCATION, SITUATION
AERIAL DEMOGRAPHICS, PLANNING
DESCRIPTION ACCOMMODATION TENANCY SCHEDULE, TENURE
COVENANTINFORMATION
VAT, EPC, DATAROOM,ASSET MANAGEMENTINITIATIVES
MARKET COMMENTARY
PROPOSAL,FURTHER INFO
CENTRAL LONDON FREEHOLD MIXED USE INVESTMENT OPPORTUNITY
CRESTA HOUSE, 125-133 FINCHLEY ROAD, LONDON, NW3 6HT
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
HOME INVESTMENT SUMMARY
LOCATION, SITUATION
AERIAL DEMOGRAPHICS, PLANNING
DESCRIPTION ACCOMMODATION TENANCY SCHEDULE, TENURE
COVENANTINFORMATION
VAT, EPC, DATAROOM,ASSET MANAGEMENTINITIATIVES
MARKET COMMENTARY
PROPOSAL,FURTHER INFO
BT TOWER REGENTS PARK PRIMROSE HILL WEST END BAKER STREET HYDE PARK LORDS CRICKETGROUND
PADDINGTONSTATION
ODEONCINEMA
SOUTH HAMPSTEAD
STATION
SWISS COTTAGEUNDERGROUND STATION
SUBJECT PROPERTY
CENTRAL LONDON FREEHOLD MIXED USE INVESTMENT OPPORTUNITY
CRESTA HOUSE, 125-133 FINCHLEY ROAD, LONDON, NW3 6HT
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.
HOME INVESTMENT SUMMARY
LOCATION, SITUATION
AERIAL DEMOGRAPHICS, PLANNING
DESCRIPTION ACCOMMODATION TENANCY SCHEDULE, TENURE
COVENANTINFORMATION
VAT, EPC, DATAROOM,ASSET MANAGEMENTINITIATIVES
MARKET COMMENTARY
PROPOSAL,FURTHER INFO
CENTRAL LONDON FREEHOLD MIXED USE INVESTMENT OPPORTUNITY
CRESTA HOUSE, 125-133 FINCHLEY ROAD, LONDON, NW3 6HT
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.
HOME INVESTMENT SUMMARY
LOCATION, SITUATION
AERIAL DEMOGRAPHICS, PLANNING
DESCRIPTION ACCOMMODATION TENANCY SCHEDULE, TENURE
COVENANTINFORMATION
VAT, EPC, DATAROOM,ASSET MANAGEMENTINITIATIVES
MARKET COMMENTARY
PROPOSAL,FURTHER INFO
CENTRAL LONDON FREEHOLD MIXED USE INVESTMENT OPPORTUNITY
CRESTA HOUSE, 125-133 FINCHLEY ROAD, LONDON, NW3 6HT
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
London Overground Rail Operations Limited
First Office 6,768 628.80
Storage / Ancillary 213 19.80
London Overground Rail Operations Limited
Second Office 6,748 626.90
Storage / Ancillary 216 21.10
TOTAL 22,991 2,137
HOME INVESTMENT SUMMARY
LOCATION, SITUATION
AERIAL DEMOGRAPHICS, PLANNING
DESCRIPTION ACCOMMODATION TENANCY SCHEDULE, TENURE
COVENANTINFORMATION
VAT, EPC, DATAROOM,ASSET MANAGEMENTINITIATIVES
MARKET COMMENTARY
PROPOSAL,FURTHER INFO
CENTRAL LONDON FREEHOLD MIXED USE INVESTMENT OPPORTUNITY
CRESTA HOUSE, 125-133 FINCHLEY ROAD, LONDON, NW3 6HT
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.
HOME INVESTMENT SUMMARY
LOCATION, SITUATION
AERIAL DEMOGRAPHICS, PLANNING
DESCRIPTION ACCOMMODATION TENANCY SCHEDULE, TENURE
COVENANTINFORMATION
VAT, EPC, DATAROOM,ASSET MANAGEMENTINITIATIVES
MARKET COMMENTARY
PROPOSAL,FURTHER INFO
CENTRAL LONDON FREEHOLD MIXED USE INVESTMENT OPPORTUNITY
CRESTA HOUSE, 125-133 FINCHLEY ROAD, LONDON, NW3 6HT
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
HOME INVESTMENT SUMMARY
LOCATION, SITUATION
AERIAL DEMOGRAPHICS, PLANNING
DESCRIPTION ACCOMMODATION TENANCY SCHEDULE, TENURE
COVENANTINFORMATION
VAT, EPC, DATAROOM,ASSET MANAGEMENTINITIATIVES
MARKET COMMENTARY
PROPOSAL,FURTHER INFO
CENTRAL LONDON FREEHOLD MIXED USE INVESTMENT OPPORTUNITY
CRESTA HOUSE, 125-133 FINCHLEY ROAD, LONDON, NW3 6HT
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.
HOME INVESTMENT SUMMARY
LOCATION, SITUATION
AERIAL DEMOGRAPHICS, PLANNING
DESCRIPTION ACCOMMODATION TENANCY SCHEDULE, TENURE
COVENANTINFORMATION
VAT, EPC, DATAROOM,ASSET MANAGEMENTINITIATIVES
MARKET COMMENTARY
PROPOSAL,FURTHER INFO
CENTRAL LONDON FREEHOLD MIXED USE INVESTMENT OPPORTUNITY
CRESTA HOUSE, 125-133 FINCHLEY ROAD, LONDON, NW3 6HT