50 56 Tooting High Street & 984 - 986 Garratt Lane - TOOTING BROADWAY LONDON SW17 0RN
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50 – 56 Tooting High Street & 984 – 986 Garratt Lane TOOTING BROADWAY ■ LONDON ■ SW17 0RN Unique South London freehold site comprising a mixed use substantially reversionary investment with considerable development potential computer generated image
50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN
02
Garratt Lane
Tooting Market
Tooting High Street
Garratt Terrace SUBJECT PROPERTY
to St George’s
University Hospital
Tooting Broadway
Underground Station
A24
Mitcham Road
50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN
03
I N VEST MENT SUMMA RY
• Rare opportunity to purchase a unique and
prominent freehold development site in the
heart of one of South London’s most popular
areas which is expected to see further growth
as a result of Crossrail 2.
• Situated directly opposite Tooting Broadway
station, in a prime retail pitch.
• Let to the undoubted covenant of HSBC,
Halifax, JD Wetherspoons and the NHS with a
diversified income stream.
• Current total rental income of £580,850 per
annum including rental guarantees.
• Substantial rental reversion with excellent
rental growth prospects.
• Opportunity to reposition the property
through redevelopment with an increased
height and density, potentially for retail,
leisure, residential, hotel or student housing
uses, subject to the usual consents.
Offers are sought in excess of £17,000,000 (Seventeen Million Pounds) subject to
contract and exclusive of VAT, giving a net initial yield of 3.20% and a reversionary yield
of 4.57% after allowing for standard acquisition costs of 6.74%.
50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN
04
Located in Tooting, within the affluent Borough of Wandsworth in south Transport links are excellent, with the property situated
LO C AT I O N & SI T UAT I O N
west London, the property benefits from a prime location, situated immediately opposite Tooting Broadway underground station
immediately opposite Tooting Broadway Station in the heart of the (Northern Line). Tooting Railway Station is located 0.8 miles
prime retail pitch. The surrounding area offers a wide variety of shops, to the south and provides regular direct services to London
bars and leisure facilities. Nearby occupiers include: Blackfriars and onwards to City Thameslink, Farringdon and
St Pancras International. The area is expected to benefit from
the arrival of Crossrail 2 with Tooting Broadway and Balham
stations both being safeguarded. The arrival of Crossrail 2 will
reduce congestion on the Northern Line and reduce the journey
The newly redeveloped Tooting Market is a very popular local time to London Victoria to as little as 10 minutes. In addition
Baker
Street
Madame
Tussauds
Farringdon Whitechapel
attraction, run by the team who set up the famous Camden Market. there are a number of major bus routes serving Tooting High
Tottenham Liverpool
Court Road Street
Paddington
It is home to over 50 pop up food stalls and retail units and has won Street, connecting to Central and Greater London. Marble
Arch
Oxford Circus
Piccadilly
Leicester
Square
Blackfriars
Tower Hill Shadwell
Lime
numerous awards including Best Small Indoor Market @ The Great
Circus Monument
Green
Trafalgar
Square
Park Wapping
Charing
British Market Awards 2017.
Kensington
Gardens Hyde
Park Cross Southwark
London Rotherhithe
Waterloo Bridge S OUTH
Canada Water
St. James’s
Over recent years Tooting has experienced rapid growth, benefitting from the E A R L’ S
COURT KNIGHTSBRIDGE Park
WESTMINSTER
Elephant Surrey Quays
Shopping
& Castle
ripple effect of rapid house price growth in central London resulting in increased
Centre
SOUTHWARK
PARK
Kensington Victoria Surrey
Quays
gentrification further south down the Northern Line. Residential house prices have Pimlico Vauxhall Kennington
increased by 32.44% over the past 5 years (Zoopla). In 2017 Tooting was voted as one Burgess
Park
Vauxhall
of the worlds “Top Ten Coolest Neighbourhoods” by Lonely Planet. Battersea
Park
BATTERSEA N
CHELSEA Stockwell
The area is now a popular neighbourhood full of young families and professionals, Clapham
High Street PECKHAM
with several major retail and commercial occupiers seeking representation and a Shillington CLAPHAM
Loughborough
Junction
Nunhead
number of regeneration and development schemes being planned and consented. Gardens
Clapham
Clapham
Common Brixton Ruskin
Park
Junction
These include Crest Nicholson’s residential/ commercial development The Brixton
Peckham Rye
Broadway, a consented 5 storey £40 million ApartHotel to be developed by the
Clapham Park
Common
Hono
Wa
Park
nds
London Hotel Group and a 5 storey Premier Inn/ Lidl anchored mixed use scheme
wo
rth
Brockwell
Co
currently under construction.
mm
Park
BRIXTO N DULWICH
on
VILLAGE
West
Balham Tulse Dulwich Forest Hil
Hill
Another important driver of the local economy is St George’s Hospital( 150 m from
Streatham Sydenham Hill
the property), one of the largest hospitals in the UK providing 1,300 beds. St George’s Tooting Bec Hill
University shares the same site and is consistently voted the Best Medical School in SUBJECT PROPERTY
the country. As a result the area is home to a large medical population comprising TOOTING
BROADWAY
West Norwood
Gibsy Hill
over 8,500 medical staff and nearly 10,000 students attending the university, with Streatham
very limited student accommodation available in the area. Tooting
Colliers Wood
50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN
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Tooting’s combination of excellent transport links,
DEMO GRA PH I CS
vibrant commercial centre and good housing stock
make it a very attractive residential location.
According to CACI, Tooting has a total resident
population of 66,134, which includes areas up to
Tooting Bec and Wandsworth Common to the north
and parts of Streatham to the south. Population
growth for the next 10 years is forecast to be 5.70%,
compared to the UK average of 5.10%.
The Tooting catchment is notably wealthy, with
77% of the population earning more that £40,000
per annum. Using CACI’s Acorn classification, 74%
of the Tooting population are classified as ‘Affluent
Achievers’ or ‘Rising Prosperity’, compared to 32% of
the UK’s population generally.
Underpinning the areas growing
prosperity is the Borough’s
housing stock which has seen
capital growth of 28% over the
past 5 years, and 7% over the last
year, significantly better when
compared to both London and
the UK as a whole, -1.9% and 2%
respectively over the same period.
Situated directly opposite
Tooting Broadway station, in a
prime retail pitch.
50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN
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The total retail floorspace in Tooting is estimated at 0.67 million sq ft, above
R E TA I LI NG I N TO OT I NG
the average for a London centre of this nature, reflecting its wide catchment
and affluent population. The Tooting area is favoured by young families and
young professionals which helps to underpin retail spend within the locality, as
demonstrated by the high levels of rental growth the market has experienced,
as major national multiples enter the market, recently including Pret a Manger,
Lidl and Superdrug. Tooting is forecast to see above average percentage
growth in the volume of total retail spend between 2017 and 2022.
The strength in demand has been witnessed by recent lettings to Pret a Manger
and Holland & Barrett at 3 and 5/9 Mitcham Road, which reflect a headline
Zone A rent of £155 per sq ft and a net Zone A rent of £145 per sq ft.
The letting to Holland & Barrett at 5/9 The Broadway showed a circa 28.5%
increase on the previous passing rent which was a lease renewal effective
December 2013.
There is currently a paucity
of available retail space in
Tooting and pent up demand
which will assist in maintaining
rental growth.
Outstanding tenant requirements include:
50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN
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The property comprises a rare standalone site totalling approximately 0.5 acres. To the south east of the site there is a two-storey commercial
DESCR I PT I O N
building. The property provides a terrace of 4 retail units, fronting onto Tooting High Street. There are an additional two retail units fronting onto
the A217/ Garratt Lane. The first-floor upper parts provide a mix of independent office space as well as a variety of ancillary accommodation.
50 – 52 High Street (Halifax) provides a two-storey corner unit with return
frontage onto the A217. The ground floor is arranged as a banking hall, with
additional meeting rooms and ancillary accommodation on the first floor.
54 High Street (formerly Snappy Snaps) provides a retail unit at ground floor
with offices on the first floor, which benefit from a self contained access from
High Street.
56A High Street (J D Wetherspoon) is arranged as a public house on ground
floor only, benefitting from a kitchen and storage area to the rear.
56 High Street (HSBC) comprises a large corner unit arranged as a bank with
a return frontage onto Garratt Terrace, where a number of ATM machines
are installed. The unit presents well and has recently benefitted from a
refurbishment.
1st Floor, 56 High Street (NHS) provides modern office accommodation,
currently arranged as several meeting / consultation rooms. The property
benefits from its own access on Garratt Terrace and has a passenger lift installed.
986 Garratt Lane & 984 Garratt Lane provide 2 lock up retail units with frontage
onto the busy A217, with 986 Garratt Lane benefitting from first floor ancillary
accommodation.
1st Floor, 984 Garratt Lane provides office accommodation at first floor,
benefitting from a self contained entrance from Garratt Lane.
The remainder of the site comprises an open car parking area, currently offering
21 spaces, and a loading yard, benefitting from direct road access on two sides,
the A217/ Garratt Lane and Garratt Terrace.
Tooting
50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN
08
10
81 10
83
T ENUR E & T ENA NCY
10
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6
97 85
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For indicative purpose only.
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For indicative purpose only.
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Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:661
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This plan is published for the convenience of
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identification only and although believed to be dw
correct is not guaranteed and it does not form ay
TENURE any part of any contract. © Crown Copyright.
All rights reserved. Licence Number LIG0074.
Freehold.
T E N A N C IE S
The property currently provides a net income of
£580,850 pa, on the basis that the vendor will be pro-
viding a 12 month rental and rates guarantee on 54
PY S
High Street and a 12 month rental guarantee on the 3
AP PP
SN NA
S
vacant car parking spaces on the small rear car park.
The individual tenancy information is set out in the
tenancy and accommodation schedule attached.
AREAS
The floor areas are set out in the tenancy schedule on
the next page.
50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN
09
Lease Expiry Rental Value
Address Tenant Date Rent (PAX) Rent Review (PAX) Areas sq ft Comments
T ENA NCY SC H EDUL E
Ground Floor Sales 2,204
Bank of Scotland Plc £125,000 £205,000 ITZA 1,141 5% for return/prominence. 75% of first floor
50/52 High Street 28/12/2031 29/12/2021
t/a Halifax (£94 ZA) (£150 ZA) First Floor Office/Ancillary 1,928 at £15 psf and remainder at A/20.
Total 4,132
Car park site to rear of
£3,600 £3,600 12 month rental guarantee.
Halifax potential for 3 spaces
Ground Floor 1,361
54 High Street Vacant £97,000 £97,000 Shop currently vacant. 12 month rental
N/A Ground ITZA 695
Ground Floor (Rental Guarantee) (£140 ZA) (£140 ZA on retail) guarantee to be provided by vendor.
Total 1,361
54 High Street £26,750 £26,750 First Floor In discussions with an office occupier and
Rental guarantee TBC N/A 1,337
First Floor (£20) (£20) s/c offices close to agreeing terms.
Ground Floor 2,723 Lease includes 4 car parking spaces. Valued
£75,000 £135,250
56A Tooting High Street 29/09/2030 29/09/2020 ITZA 932 at £1,200 each. Property to be used for any
(£75 ZA) (£140 ZA)
Total 2,723 use within Class A1, A2 or A3.
Ground Floor 3,589 5% applied to return to Zones A and B. Lease
£119,000 £184,500
56B Tooting High Street HSBC Bank Plc 23/06/2022 - ITZA 1,284 includes 4 car parking spaces valued at
(£90.45 ZA) (£135 ZA)
Total 3,589 £1,200 each.
56/56A Tooting High Street South West London and Outside security of tenure provisions of the
£67,500 £94,580
(First Floor & self St George’s Mental Health 05/04/2022 N/A First Floor 4,189 Landlord & Tenant Act 1954. Lease includes 9
(£13.53 p sq ft) (£20 p sq ft)
contained office) NHS Health Trust car spaces valued at £1,200 each.
Ground Floor 447
Rolling mutual break on 9 months notice
Shazwa Siddique £28,000 £35,850 ITZA 339
986 Garratt Lane 26/11/2022 27/11/2020 Outside security of tenure provisions of
t/a Printing Place (£78 ZA) (£100 ZA) First Floor Acillary/Offices 390
the Landlord & Tenant Act 1954.
Total 837
Ground Floor 435 Rolling mutual break on 9 months notice
Samir Cherifi £22,600 £31,200
984 Garratt Lane 26/11/2022 27/11/2020 ITZA 312 Outside security of tenure provisions of
t/a Café Manal (£72.44) (£100 ZA)
Total 435 the Landlord & Tenant Act 1954.
Rolling landlords break on dates: 13/09/18,
984 Garratt Lane
£11,700 £11,700 13/06/19, 13/03/20, 13/12/21 and 13/06/222.
(first floor self Mr J A Khan 12/12/2022 13/12/2020 First Floor Office 498
(£23.50 psf) (£23.50) Outside security of tenure provisions of the
contained office)
Landlord & Tenant Act 1954.
3 Car Park Spaces Broadway Veterinary Clinic 31/05/2019 £3,500 £3,500 3 car parking spaces 1 year licence. 3 spaces.
1 Car Park Space Thompson Lawyer £1,200 £1,200 1 car parking space 1 year licence agreement to be documented.
Total Rent Total
£580,850 £830,130 Total Area NIA (sq ft) 19,101 Total Area GIA (sq ft) 21,394
Passing Rental Value
The rear car parking area is camera monitored with fines levied on illegal parking, currently averaging £7,500 pcm.
Our clients have been in receipt of substantial unsought rental offers for use of roofspace areas for A3 use seating, as well as advertising uses. More details available on request.
A Lane and Frankham measured areas survey report is available, providing a full break down of GIA areas and floor plans.
50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN
010
R ENTA L VA LUE
It is our opinion that the estimated rental value as of October 2018 would lie
in the region of £830,130 pa as detailed in the tenancy schedule.
The most salient retail rental evidence can be set out as follows:
3 Mitcham Road (Pret a Manger)
Open market letting September 2018 at a headline Zone A of
£155 per sq ft and a net Zone A of £145 per sq ft.
5/9 Mitcham Road (Holland & Barrett)
Open market letting September 2018 at a headline Zone A of
£155 per sq ft and a net Zone A of £145 per sq ft.
22 Mitcham Road (Snappy Snaps)
Open market letting February 2018 agreed at a rent of £35,000
pa. reflecting a net Zone A of £123 per sq ft.
49 Tooting High Street (Vapourz Lounge)
Open market letting November 2017 at a rent of £71,000 which
reflected a net Zone A of £136.50 per sq ft.
Current prime office rents in this
area of South West London stand at
approximately £30 psf, depending on
location and specification.
We are of the opinion that the ERV for the
office space at the subject property is in
the region of £20 psf.50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN
011
Below we summarise the covenant strength of the key tenants:
COVE N A NT I NFO R MAT I O N
Bank of Scotland t/a Halifax, accounts for 22% of the total income. As a leading UK High Street Bank and wholly owned subsidiary of Lloyds
Banking Group, they provide an undoubted covenant and have a Creditsafe score of 87. Their most recent financial results are summarised below:
31/12/2017 31/12/2016 31/12/2015
Turnover £10,171,000,000 £11,091,000,000 £11,457,000,000
Pre Tax Profit’s £2,804,000,000 £3,395,000,000 £2,653,000,000
Shareholder’s Funds £13,512,000,000 £13,755,000,000 £15,111,000,000
HSBC Bank plc accounts for 21% of the total income. As one the largest banking and financial services organisations in the world they provide
an undoubted covenant and have a Creditsafe score of 86. Their most recent financial results are summarised below:
31/12/2017 31/12/2016 31/12/2015
Turnover 19,760,000,000 £18,994,000,000 £18,630,000,000
Pre Tax Profit’s £2,370,000,000 £874,000,000 £2,971,000,000
Shareholder’s Funds £43,462,000,000 £39,930,000,000 £37,497,000,000
JD Wetherspoon plc accounts for 13% of the total income. As one of the leading pub companies across the UK, with over 1,000 outlets they
provide an excellent covenant strength and have a Creditsafe score of 75. Their most recent financial results are summarised below:
30/07/2017 24/07/2016 26/07/2015
Turnover £1,660,750,000 £1,595,197,000 £1,513,923,000
Pre Tax Profit’s £76,364,000 £66,049,000 £58,732,000
Shareholder’s Funds £228,823,000 £58,732,000 £222,893,00050 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN
012
Due to the excellent location, substantial size, and regular shape of the site, with three roadside frontages the property offers considerable
PLA NNI NG
potential for redevelopment. An increase in site coverage and density, with greater massing through height is achievable, subject to the
necessary consents. The location lends itself to many different uses including residential, student housing, retail, office, hotel and leisure.
Student accommodation in Tooting currently achieves between £190 - £250 per week for ensuite accommodation with shared kitchen facilities.
Alternatively, residential rental values in Tooting are approximately £1,500 pcm for well located 1 bed apartments.
The vendor has recently commenced a pre-application process to assess the planning options for the site, including residential, hotel and
student housing options, within a seven-storey structure. We anticipate initial feedback will be received in the next few weeks.
According to the Wandsworth local plan Tooting is classified as a Major Centre “where
retailing, services, employment, leisure and housing should be promoted along with
opportunities for mixed development”. The council is committed to the regeneration and
redevelopment of brownfield sites in order to generate new jobs and new homes.
computer generated image50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN
013
PR O PO SA L
Investment Comparables EPC
Recent sales of comparable London redevelopment sites: EPC ratings are available within the dataroom.
Area Capital Capital
Address Date (sq ft) Value Value (psf) NIY
Ilford Retail Park, Ilford Sep 2018 32,081 £17,650,000 £550.17 2.50%
VAT
The property is registered for VAT purposes.
Shop Stop, Clapham Junction Jun 2018 74,500 £133,000,000 £1,785.24 3.00%
It is anticipated that the investment sale will
Brixton Market, Brixton Mar 2018 41,461 £37,250,000 £898.43 3.03% be treated as a Transfer of A Going Concern
Zennor Trade Park, Balham Sep 2017 - £30,100,000 - 2.90% (TOGC).
Halfords, 316/324 Balham High Road Sep 2017 - £8,000,000 - 3.04%
PROPOSAL
We are instructed to seek offers in excess of
£17,000,000 (Seventeen Million Pounds)
subject to contract and exclusive of VAT for our
client’s freehold interest, which reflects the
following yield profile, assuming acquisition
standard costs of 6.74%:
Net Initial Yield 3.20%
Reversionary Yield 4.57%
The sale price reflects a capital value of £795
per sq ft for the existing building, on a GIA basis.
The property provides a purchaser with a
unique opportunity for comprehensive re-
development, within the short/medium term
whilst also providing a well secured income
return, with significant reversionary prospects.50 – 56 Tooting High Street ■ 984 – 986 Garratt Lane ■ Tooting Broadway ■ London ■ SW17 0RN
014
F U RT H E R IN FO RMAT I O N & CO NTACT DETA I LS
Further information and documents are available
within a dataroom. For access to the dataroom or
to arrange an inspection please contact any of the
following at joint agents JLL or Jackson Criss:
Neville Pritchard T 020 7087 5370
neville.pritchard@eu.jll.com M 07889 896872
Sarah Martin T 020 7852 4439
sarah.martin@eu.jll.com M 07814 613379
Frankie Maddox T 020 7399 5744
frankie.maddox@eu.jll.com M 07525 872749
Florence Clark T 020 7852 4293
florence.clark@eu.jll.com M 07710 860253
Philip Hay T 020 7637 7100
phay@jacksoncriss.co.uk M 07770 580590
Liam Jones T 020 3714 0501
ljones@jacksoncriss.co.uk M 07472 143 369
MISREPRESENTATION ACT
JLL and Jackson Criss, for themselves and for the vendors of this property, whose agents they are, give notice that (i) the particulars and any further information communicated by any means to potential purchasers of the property described in the particulars, or their
advisers, in connection with the possible sale of the property are provided solely for the purpose of assisting potential purchasers in deciding whether they wish to proceed with further investigation of the property and do not constitute either the whole or any part of
an invitation, offer or contract for sale of the property; (ii) 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 as at the date of the particulars (or
the date of the relevant information if earlier). However, potential purchasers are not entitled to rely on them as statements or representations of fact but should satisfy themselves by searches, enquiries, surveys and inspections or otherwise with regard to the accuracy
of such details. No responsibility or liability is or will be accepted by JLL and Jackson Criss, the vendor(s) of the property or any of their respective subsidiaries, affiliates, directors, officers, representatives, employees, advisors, or agents for any loss or damage suffered
by any party, resulting from reliance on the particulars or any other information communicated by any means to that party, or its advisers, in connection with the possible sale of the property. No person in the employment of Jones Lang LaSalle or the vendor(s) has
authority to make or give any representation or warranty, express or implied, in relation to the property. References to JLL include any joint agents acting with Jones Lang LaSalle. Designed by Graphic Outlines Ltd. 2018You can also read
