CROYDON Q-PARK SURREY STREET, CR0 1TR - Allsop
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Q-PARK
CROYDON
SURREY STREET, CR0 1TR
SALE AND LEASEBACK LONG INCOME INVESTMENT
THAT WILL BE LET TO Q-PARK LTD WITH ANNUAL RPI UPLIFTS
FOR A MINIMUM OF 35 YEARS
Q-PARK
CROYDON
SURREY STREET, CR0 1TR
SALE AND LEASEBACK LONG INCOME INVESTMENT THAT WILL BE LET TO
Q-PARK LTD WITH ANNUAL RPI UPLIFTS FOR A MINIMUM OF 35 YEARS
INVESTMENT
CONSIDERATIONS
Prime multi-storey car park located in the
very heart of one of London’s
largest boroughs
Sale and leaseback to the strong covenant
of Q-Park Ltd for a minimum term of
35 years
Freehold
Total proposed rent of £518,000 pa
subject to annual RPI linked rent reviews
with a 1% collar and 4% cap
Large strategic town centre site providing
679 parking spaces arranged over
8 levels with a site area of approximately
0.8 acres (0.32 hectares)
The A232 is less than a minute’s drive
south, providing access to the M25 via
Junction 4
Based on a purchase at asking terms
the property has a very low capital value
of only £60 psf
Offers sought in excess of £10,790,000
(Ten Million Seven Hundred and Ninety
Thousand Pounds) subject to contract
and exclusive of VAT. This reflects a
net initial yield of 4.50%, after allowing
for purchaser’s costs of 6.70%.
Q-PARK
CROYDON
SURREY STREET, CR0 1TR
SALE AND LEASEBACK LONG INCOME INVESTMENT THAT WILL BE LET TO
Q-PARK LTD WITH ANNUAL RPI UPLIFTS FOR A MINIMUM OF 35 YEARS
LOCATION
Croydon is located 10.1 miles (16.3 km) south of Central
London, and is the largest London Borough in terms of
A505
Stansted Population with a catchment of c. 363,378 (2011 Census).
Luton A120
A418
A5 A10 Croydon benefits from excellent transport communications
A1(M) A602
A44 M1
A130
A131 located along the A212 and within close proximity to the
A34
A213, A236 and A232. The A23 is located c. 1.0 miles
A40
A414 M11 (1.6 km) to the west and provides direct access to Central
A41 A12
A4142
London.
M10 A414 A138
A420 J21 A414 Croydon has excellent rail connections served by West
A4010 A404 J20
J23
J25
Croydon, East Croydon and South Croydon Rail Stations,
TO CENTRAL LONDON
J19 M25 J27
RO
AD AND UNDERGROUND
M25
operating London Overground and Tramlink services. Direct
A1
ILL M1 M11 A130 services run to destinations including Brighton, London
DM A355 A413
R OA D
IN
W Gatwick and Central London, with average journey times
RD
J28
M40
M
OAD
ES T ER
to London Bridge in c. 15 minutes and London Victoria in c.
NH A
A10 A127
A12
D AV ID SON R
J29
G LO UC
SY D E
A404 J16
17 minutes.
A40
LONDON
LO
A34
Gatwick and Heathrow Airport are located 18.2 miles
ND
RD
AD
LO W
ER A13 M25
RO
ON
RD
TA VI STO CK
ADD A404(M) London
IS CO
(29.3 km) south of Croydon and 22.2 miles (35.7 km)
D
M
MBE
D
J15
I EL
M4
RO
City
NH A
ROA
E R OA
KF
D A2
AD
north west of Croydon respectively, providing domestic
OA
SY D E
M4 Heathrow
A2
OW N
A316
AD and international flight services.
35
D P AR K
A329(M)
RO
L A N SD
OR A20 J2
DF RD D
BE AR A23
D I NGW A L L
WEST
AM
R OAD
NH
CROYDON J12 A309 CROYDON
R RY ORCH
AD E A3
M3
WE
DE RB Y RO YD
S A322 J3
LL
A232 A21 M2
ES
NO
Whitgift M25 M20
M25
LE
CH E
RT H
DI
Shopping Jurys Inn
NG
Y
Centre Hotel
E ND
J10
A217
W
RO
EAST
A D D I SCO MB E R D
AL
A339
T ravelodge
CROYDON A22
(ped
M20
LR
M26
AD
Croydon
Centrale J9 J5
Central
M3
D
estri
Shopping
A 232
M25
anis
Centre G E ST A331 A3
GE O R
ed)
J8 J7 J6
Holiday Inn
Express
A34 Croydon
R A26
D
Park Hotel W
INK O
CH EP ST
L
TR A M
H I GH ST R E E T
Latitude
Serviced FIE L D RD A21
Apartments FA I R A24
RD M23
BARCL AY
OL D T
A303
R A 232 Gatwick
OW
L Y OV E
D ON F A264
OY A229
N
CR A31
E
TH
A264
Q-PARK
CROYDON
SURREY STREET, CR0 1TR
SALE AND LEASEBACK LONG INCOME INVESTMENT THAT WILL BE LET TO
Q-PARK LTD WITH ANNUAL RPI UPLIFTS FOR A MINIMUM OF 35 YEARS
SITUATION
The property is situated on the western side of Surrey Street
and is accessed via Charles Street, close to its intersection with
Overtons Yard. The property is located 0.1 miles (0.2 km) north of
the A323, a main arterial road that runs west from South London
into Surrey.
The car park is centrally located within the Town Centre, fronting
Surrey Street, the pedestrianised retail thoroughfare that runs
parallel to the High Street, with nearby occupiers including
Nando’s, Sainsburys Local and Argos.
The immediate surrounding area provides a popular mix of retail
and leisure facilities including Vue Cinema, Surrey Street Market
and The Museum of Croydon, attracting an annual footfall of
c. 1 million people. Additionally, Q-Park is located only
0.4 miles (0.6 km) south of Croydon’s Centrale Shopping Centre
and adjacent to the Croydon Conference Centre which hosts up
to 500 guests at any one time.
DESCRIPTION
The property is arranged as a standalone multi-storey car park
over lower ground, ground and 5 upper floors, including one
level of rooftop parking. Levels 1 to 6 comprise Q-Park branded
parking providing 679 spaces, with car wash facilities to level 1
and pay stations at levels 1 and 4. There are two stairwells to
the east and west of the property with the primary stairwell to the
east, incorporating two customer lifts serving levels 1 to 6. The
Q-Park is accessed via level 1, with additional facilities including
a customer lobby, service area and staff office located along the
eastern side of the level 1.
The lower ground floor provides a residential car park of 51
spaces which forms part of the freehold demise. This has been
sold off by way of a long leasehold to King Charles Court
Management Limited. Additional space at lower ground level has
been sub-let to Croydon Council which is used as a loading area
for Croydon Market – the council are currently holding over. A
further 60 spaces have been sold off on long leases inside the
car park – further information is provided within the data room.
The property provides a site area of 0.84 acres (0.34 Hectares).
Q-PARK
CROYDON
SURREY STREET, CR0 1TR
SALE AND LEASEBACK LONG INCOME INVESTMENT THAT WILL BE LET TO
Q-PARK LTD WITH ANNUAL RPI UPLIFTS FOR A MINIMUM OF 35 YEARS
on
Croyd s
West n 0.2 mile
Statio
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RE
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© Crown Copyright, ES 100004106. For identification purposes only.
Q-PARK
CROYDON
SURREY STREET, CR0 1TR
SALE AND LEASEBACK LONG INCOME INVESTMENT THAT WILL BE LET TO
Q-PARK LTD WITH ANNUAL RPI UPLIFTS FOR A MINIMUM OF 35 YEARS
PROPOSED LEASE TERMS
ACCOMMODATION
PROPOSED PROPOSED
TENANT GUARANTOR RENT REVIEWS OPTION TO EXTEND LEASE
TERM RENT
LEVELS** SQ FT SQ M SPACES
Annual retail price index Option to renew the tenancy for
Q-Park Holding B.V.
35 years £518,000 pa linked rent reviews with two further periods of 10 years
Q-Park Limited (KvK number: 1-6 179,602 16,685 679
from completion (£763 per space) a collar of 1% and cap on identical terms at the passing
68805934)
of 4%. rent.
179,602 16,685 679 £518,000 pa
*Measurements are approximate and for indication only – not to be fully relied upon. Any interested party should carry out their own measured survey. Note: The lease will be outside the security of tenure in Part II of the 1954 Landlord and Tenant Act.
**The lower ground floor level has been sublet and is not included in the measurements
Q-PARK
CROYDON
SURREY STREET, CR0 1TR
SALE AND LEASEBACK LONG INCOME INVESTMENT THAT WILL BE LET TO
Q-PARK LTD WITH ANNUAL RPI UPLIFTS FOR A MINIMUM OF 35 YEARS
TENANT COVENANT INFORMATION
Q-Park is a leading car park operator, with c. 900,000 spaces operating from Q-Park Limited has a D&B rating of 3A1 and an Experian Credit Rating of 80
over 6,500 parking facilities across the UK and Europe. reflecting ‘Below Average Risk’.
Since its establishment in 1998, Q-Park has grown to become Number 2 Q-Park Limited produced the following financial records over a three year period:
in the European parking market, active in 10 countries including Germany,
Netherlands, Sweden, Finland, Norway and the UK. 31/12/2015 31/12/2016 31/12/2017
Over its lifetime, Q-Park has undergone a number of growth strategies Turnover £64,049,631 £68,701,295 £71,930,492
including acquiring Universal Parking, BCP, Epolia and the purchase of
Pre-Tax Profit £835,734 -£2,670,274 £8,883,470
285,000 spaces in 270 car parks from Bridgepoint. Most recently, the Dutch
car park operator was acquired for €3 billion in May 2017 by KKR, a leading Shareholders Funds £2,506,495 -£460,570 £7,660,887
global investment firm.
GUARANTOR COVENANT INFORMATION
Q-Park Limited is guaranteed by Q-Park Holding B.V., a limited private
company. Formed under Dutch law, the company was established in May
2017 for the purchase of the Q-Park Group, acquiring 100% of the Group’s
shares in October 2017.
Previously trading as Byzantium Acquisition MidCo 2 B.V., Q-Park Holding B.V.
and its affiliated Group, hold their Headquaters in Amsterdam and are primarily
involved with providing off and on-street parking services within strategic
locations across Europe and the UK.
Q-Park Holding B.V. displays the following financial information:
31/12/2017 31/12/2018
Total Assets £4,630,300,000 £4,505,000,000
Group Equity £1,210,500,000 £1,113,300,000
Net Revenue £231,600,000 £877,900,000
881,465 Prominent Over
parking spaces UK locations 15 million customers
across 10 northwest European Counties including London, Reading, Gatwick, in the UK and Ireland
Glasgow, Manchester and Dublin
Unique distinct brand Over 2,500 people 6,579
serving 15 million customer across employed globally parking facilities
the UK and Ireland
Q-PARK
CROYDON
SURREY STREET, CR0 1TR
SALE AND LEASEBACK LONG INCOME INVESTMENT THAT WILL BE LET TO
Q-PARK LTD WITH ANNUAL RPI UPLIFTS FOR A MINIMUM OF 35 YEARS
CROYDON REGENERATION
Croydon is currently the largest growth centre in London, with a £5.2 billion
regeneration programme for the development of 10,500 new homes, 28
million sq ft of new Grade A office space, 7 new hotels and 2m sq ft of retail
and leisure space. The development forms part of the Croydon Opportunity
Area scheme, an initiative targeted at repositioning the Town towards a
cultural and tech hub. The scheme includes major developments such as
Croydon Boxpark and Ruskin Square, a mixed use development actioned
under the Croydon Vision 2020 and the imminent construction of Westfield
Croydon. The new Westfield shopping centre scheme is due to start works
in Q1 2020 and represents one of the largest regeneration projects within
Europe, with £1.5 billion invested into the Unibail-Rodamco-Westfield and
Hammerson development.
Q-PARK
CROYDON
SURREY STREET, CR0 1TR
SALE AND LEASEBACK LONG INCOME INVESTMENT THAT WILL BE LET TO
Q-PARK LTD WITH ANNUAL RPI UPLIFTS FOR A MINIMUM OF 35 YEARS
DRIVER DEMAND
CENTRE OF CROYDON CROYDON MARKET
Conveniently located in Croydon The car park is directly linked with
Town Centre adjacent to the Croydon Croydon’s historic seven days a week
Conference Centre, Croydon’s Shopping market, with part of the basement used
Centre and main retailing pitch. for loading.
CROYDON REGENERATION WELL CONNECTED
Croydon is one of Europe’s largest The A232 is less than a minute’s drive
regeneration projects at an estimated cost south, providing direct access to the M25
of £5.25 billion. via Junction 4.
GRANT CENTRE’S PARKING WESTFIELD CROYDON
The car park is connected by way of a Westfield’s £1.5 billion Croydon
walkway to the Grant Centre, offering a development is located less than
20% discount to customers using Nuffield 500 m from Q-Park, providing over
Health Centre and Vue Cinema. 500,000 sq ft of new retailing space.
Q-PARK
CROYDON
SURREY STREET, CR0 1TR
SALE AND LEASEBACK LONG INCOME INVESTMENT THAT WILL BE LET TO
Q-PARK LTD WITH ANNUAL RPI UPLIFTS FOR A MINIMUM OF 35 YEARS
CAR PARK INVESTMENT MARKET
The recent sales of long dated RPI linked Car Park Investments have proved particularly popular to investors as they provide an attractive secured income stream with excellent rental growth and strong underlying fundamentals. The supply of
car parks in general has contracted of late as they have been redeveloped to other more valuable residential/commercial uses. Local Authorities have also attempted to restrict supply to town and city centre car parking in the backdrop of an
anticipated decrease in car ownership.
Investment in the car park sector has been strong as demonstrated by the recent highlighted sales below:
ADDRESS TOWN DATE TENANT NO. OF SPACE RENT RENT PER SPACE UNEXPIRED LEASE TERM PRICE NIY (%)
Sovereign Square Leeds Jun-19 Q-Park 500 £900,000 £1,800.00 35 years £19,840,000 4.25%
Mount Street Nottingham Aug-18 NCP 514 £931,366 £1,812.00 19 years £22,450,000 4.20%
Montgomery Street Belfast Jul-18 NCP 472 £821,568 £1,740.61 19 years £18,393,915 4.18%
Dublin Road Belfast Jul-18 NCP 547 £514,272 £940.17 19 years £9,895,078 4.87%
Vernon Street, Moorfields Liverpool May-18 NCP 702 £798,149 £1,136.96 29 years £14,500,000 3.50%
1-21 The Martlets Crawley Apr-18 NCP 60 £80,000 £1,333.33 19 years £1,675,000 4.50%
New Southgate Bradford May-17 NCP 430 £260,000 £604.65 21 years £5,000,000 4.88%
Mitchell Street Glasgow Mar-17 NCP 220 £482,566 £2,193.48 20 years £10,600,00 4.40%RUNNING YIELD ASSUMING AN ANNUAL Year Rent NIY Year Rent NIY
AVERAGE RPI LINKED UPLIFT OF 3%, COMPLETION 2020 £533,540 4.63% 2025 £618,519 5.37%
IN 2019 AND A PURCHASE AT 4.5% NIY. 2021 £549,546 4.77% 2026 £637,075 5.53%
2022 £566,033 4.92% 2027 £656,187 5.70%
2023 £583,014 5.06% 2028 £675,873 5.87%
2024 £600,504 5.22% 2029 £696,149 6.05%
PROPOSAL
TENURE
Offers sought in excess of £10,790,000 (Ten Million Seven Hundred and
Freehold.
Ninety Thousand Pounds) subject to contract and exclusive of VAT. This reflects
VAT a net initial yield of 4.50%, after allowing for purchaser’s costs of 6.70%.
The property has been elected for VAT.
DATAROOM
For access to the Allsop dataroom please use the following link:
https://datarooms.allsop.co.uk/register/Q-ParkCroydon For further information or to make arrangements for viewing please contact:
Jeremy Hodgson Liam Stray
020 7543 6709 020 7543 6769
jeremy.hodgson@allsop.co.uk liam.stray@allsop.co.uk allsop.co.uk
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to
be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties,
undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as
to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary
searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 06.19allsop.co.uk
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