Prime London Restaurant Investment Opportunity
Wagamama currently fitting out
244 Shepherds Bush Road,
Hammersmith, London W6 7NL
New 25 year lease to Wagamama
Provably highly reversionary
£3,215,000, subject to contract
5.0% Net Initial Yield
8.23% Reversionary Yield
7.28% Equivalent Yield
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Air
A cosmopolitan and fashionable area of West London, Hammersmith is London Heathrow Airport is 16 km (10 miles) to the west. By road it
located in the London Borough of Hammersmith and Fulham and forms is accessible from Junction 3 and 4 of the M4 Motorway or the
Heathrow Express from Paddington which provides shuttle services
the principal western gateway to and from Central London.
every 15 minutes or the London Underground (Piccadilly Line). Heathrow
Hammersmith is strategically located and offers first class communication is the world’s busiest international airport.
by road, rail and air.
Hammersmith benefits from a diverse occupier base traditionally
attracting large corporates for their headquarters owing to its strategic
Road
location. Major noteworthy occupiers include Bechtel, Coca Cola,
The Hammersmith Flyover (A4) runs directly through Hammersmith London Borough of Hammersmith & Fulham, The Walt Disney Company,
and provides access to Central London (6.4 km / 4 miles) to the L’Oreal UK, Cable & Wireless, Sony Ericsson, RBS and Harrods.
east, and the M4 Motorway which in turn links to London Heathrow
16 km (10 miles) west, Slough 27 km (17 miles) west and Reading
60 km (37 miles) west. The M25 London orbital is 16 km (10 miles)
west along the M4 Motorway. The A219 to the north connects
Hammersmith with Shepherds Bush and the M40 Motorway leading The Old Fire Station is located within 150 metres of Hammersmith on
to Birmingham, High Wycombe and Oxford. The A306 to the south the eastern side of Shepherds Bush Road. It is immediately adjacent
to the former Hammersmith Palais which is currently being redeveloped
connects to the South Circular and the M3 Motorway.
in a joint venture between Carlyle Group and Generation Estates. Named
Pure Hammersmith the scheme which is due for completion in July
Underground / Rail
2013 will provide 418 brand new single studio units arranged over 9
Hammersmith lies in Zone 2 of the London Underground network floors together with internal and external amenity areas and shared
and provides services on three routes, the Piccadilly, District and spaces. The development will also include a new leisure unit of
Hammersmith & City lines. These lines all provide access into Central approximately 2,415 sq m (26,000 sq ft) which has been pre-let to Pure
London with a journey time to Victoria and Paddington station of Gyms plus a new retail unit. This development is set to substantially
the
locality.
For
further
information
visit
approximately 15 minutes. Waterloo Station and Euston Station are improve
within 22 minutes and 25 minutes respectively and Kensington www.generationestates.co.uk.
Olympia is within 1.6 km (1 mile) which provides trains to Stratford
and Clapham Junction. London Heathrow Airport can be reached King Street, Hammersmith’s prime retailing pitch, is within 200 metres
of the property. As well as providing a vibrant high street Hammersmith
within 30 minutes.
also benefits from its own Shopping Centre known as Kings Mall
comprising of a 40,000 sq m (430,000 sq ft) shopping centre that was
Bus
acquired in 2011 having been in the same ownership for over 30 years.
The Hammersmith Bus Interchange is one of London’s largest bus Kings Mall is undergoing major refurbishment and has recently attracted
interchanges which services the locality providing numerous bus routes H&M who have signed for a major new store of circa 2,787 sq m
(30,000 sq ft).
to Central London and London suburbs.
Situation
Directly behind the subject property is 10 Hammersmith Grove, a new Note the gross internal area includes two rear stores.
25,548 sq m (275,000 sq ft) development by Development Securities and
Scottish Widows Investment Partnership due for completion later in 2013.
For further information visit www.10hammersmithgrove.com.
Tenure
Hammersmith also boasts a vibrant leisure scene with the Lyric Theatre
and HMV Hammersmith Apollo at its heart. Added to which Hammersmith
has numerous restaurants, gastro pubs and bars including The Grove, The
Gate, The Distillers Arms, The Stonemasons Arms, The River Cafe, Raoul's,
Lola & Simon, La Petite Bretagne, Nando's plus B@1 and Riverside Studios.
The interest for sale is a 999 year lease from 28th September 2012 at a
pound per annum. The freeholder is The Old Firestation Hammersmith
Limited, a company limited by guarantee, and the purchaser or a nominee
of the purchaser will be required to become a director of this company
on completion.
Description
Service Charge
Originally constructed in 1913 as a GLC Fire Station, today the entire The Service Charge apportionment is 39.31% to the ground floor with
property comprises a ground floor restaurant and the upper parts as flats. the remainder from the residential upper parts. The Service Charge is fully
recoverable through the tenant.
The investment comprises the ground floor of the property.
Architecturally striking, the ground floor commercial space benefits from
impressive original features both externally and internally with access from
Shepherds Bush Road through several double doors. The tenant is currently
fitting out. Wagamama is due to open at the end of July 2013. Details of
Wagamama's planning consent, specification and plans are available to
download.
Tenancy
The property is let to
for a term of 25 years from 28th
September 2012 on a Full Repairing and Insuring Lease expiring 27th
September 2037 at a commencing rent of
exclusive
(£327 per sq m / £30.37 per sq ft).
The upper floors are self contained having their own entrance from The lease benefits from 5 yearly rent reviews with the first on 28th
September 2017 which is subject to a minimum fixed increase to the greater
Shepherds Bush Road. This does not form part of the sale.
of either
or Open Market Value.
Planning
Covenant
The property is Grade II listed and benefits from Restaurant use within Class
Wagamama Limited (Co. No. 03621596) has reported the following figures:
A3 of the Town and Country Planning (Use Classes) order 1987.
Building Survey
A condition report was carried out on 31st May 2013 by MGPM to ascertain
the condition of the building. The report, which is available to download
from the website, is assignable to a purchaser.
Accommodation
We are advised the ground floor provides the following accommodation;
Gross Frontage
Frontage
Depth
Ground Floor GIA
19.8 m
17.0 m
28.6 m
520 sq m
65.0 ft Net
55.8 ft Built
93.8
ft
5,597 sq ft
Turnover
Pre-Tax Profits
Shareholders’
Funds
29th April 2012 24th April 2011
£124,392,000 £110,664,000
£17,388,000
£15,568,000
£82,532,000
£65,602,000
The principal activity of the company is the operation and development of
a chain of restaurants based on Japanese noodle bars.
Meaning “naughty child” in Japanese Wagamama opened its first restaurant
over 20 years ago in Bloomsbury, London and today there are not only
some 87 restaurants in towns and cities the length and breadth of the
United Kingdom but their restaurant group also span's some 17 countries
worldwide. For further information visit www.wagamama.com
Rental Commentary
regard to this recent open market evidence, we suggest the open market
rental value for the property is now at least £280,000 per annum (£50 per
sq ft) and could be argued to be £336,000 per annum based upon £60
per sq ft.
Aside from the Nando’s letting, it will be accepted by an investor that a
The site of the former Ladbrokes at 22-26 Broadway, Hammersmith has letting of £30.37 per sq ft is low compared to other examples of lettings
been let to Nando’s on a 25 year lease without break options at a current in London.
passing rent of £210,000 per annum. The ground floor comprises 2,700
sq ft with 1,450 sq ft in the basement. The letting occurred in September
2012 and in competition with Nando’s reported to have paid a £50,000
premium for the benefit of the lease.
The property has been elected for VAT therefore VAT will be payable on
On an overall basis the letting to Nando’s reflects £50.60 per sq ft. the purchase price. It is envisaged the sale will be treated as a Transfer
However, applying a half-rate on the basement, the rent equates to £61.31 of a Going Concern (TOGC).
per sq ft. The letting to Wagamama reflects only £30.37 per sq ft. Having .
Value Added Tax
Proposal
Contact
We are instructed to guide in excess of
(Three Million Two Hundred and
Fifteen Thousand Pounds), subject to contract, for our clients’ interest reflecting the
following yield profile;
Singer Vielle
94-96 Wigmore Street
London W1U 3RF
Tel: 020 7935 7200
Fax: 020 7486 8511
www.singerviellesales.com
Net Initial Yield
Reversionary Yield
Equivalent Yield
5.00%
8.23%
7.28%
Investment Considerations
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
Vendor's Solicitor
Lawrence Graham LLP
4 More London Riverside
London SE1 2AU
Tel: 020 7379 0000
[email protected]
[email protected]
Subject to Contract & Exclusive of VAT
Misrepresentation Act 1967
Singer Vielle for themselves and for the Vendors 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 intending purchasers or lessees, and do not constitute,
nor 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 must satisfy themselves by inspection or otherwise
as to the correctness of each of them.
3. No person in the employment of Singer Vielle has any authority to make or give any representation or warranty whatever in
relation to this property.
4. All maps are for identification purposes only and should not be relied upon for accuracy.
5. Unless otherwise stated, all prices and rentals quoted are exclusive of Value Added Tax to which they may be subject. Under
no circumstances shall Singer Vielle be liable to you for any direct, indirect, consequential, incidental or special damages arising
out of your purchase or lease of any Property.
Finance Act 1989
Unless otherwise stated, all prices and rents are quoted exclusive of VAT.
Property Misdescriptions Act 1991
These details are believed to be correct at the time of compilation, but may be subject to subsequent amendment.
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