PREMIER INN BISHOP'S STORTFORD STATION ROAD, HERTS - Prime Hotel Forward Funding Investment Opportunity - AWS
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
PREMIER INN
BISHOP’S
STORTFORD
STATION ROAD, HERTS
Prime Hotel Forward Funding
Investment Opportunity
PREMIER INN BISHOP’S STORTFORD
STATION ROAD, HERTS
INVESTMENT
SUMMARY
• Forward funding opportunity to acquire a new
85-bedroom Premier Inn Hotel with a 839 sq. ft.
ground floor retail unit
• Located in the centre of Bishop’s Stortford, an
affluent market town with excellent transport links
to central London
• Situated within a six hectare mixed-use regeneration area
located adjacent to Bishop’s Stortford train station
• The hotel will be let to Premier Inn Hotels Ltd for a term
of 25 years from practical completion with a tenant break
in year 20
• The hotel’s initial rent will be £378,250 (£4,450 per bed)
per annum and is subject to 5 yearly CPI linked
rent reviews
• We anticipate the retail unit being let for £16,780 per
annum during the construction period. The developer will
provide a two year rent guarantee from PC if required
• Freehold
• PC due September 2020. Planning permission granted
& Agreement for Lease signed
We are seeking offers in excess of £8,690,000 (Eight Million
Six Hundred and Ninety Thousand Pounds) on a traditional
forward funding basis subject to contract and exclusive
of VAT. A purchase at this level would reflect a Net Initial
Yield of 4.42% assuming purchasers costs of 2.77% and
a low capital value per bed of only £99,500.
North-east corner of the hotel
PREMIER INN BISHOP’S STORTFORD
STATION ROAD, HERTS
BISHOP’S STORTFORD
MUSEUM
TOWN CENTRE/
JACKSON SQUARE
SHOPPING
RIVER STORT 5 MIN WALK
ANCHOR STREET
LEISURE PARK
GOODS YARD
DEVELOPMENT SITE
NEW BUS STATION
PREMIER INN SITE
STATION ROAD
BISHOP’S STORTFORD
TRAIN STATION
ALDI
WARWICK ROAD
LONDON CAMBRIDGE
LIVERPOOL STREET 45 MIN DRIVE
35 MIN TRAIN 40 MIN TRAIN
JOURNEY JOURNEY
STANSTED AIRPORT
12 MIN DRIVE
12 MIN TRAIN JOURNEY
A1
A5
A43
Banbury A6
Milton Keynes
PREMIER INN BISHOP’S STORTFORD Saffron Walden
A131
A421 A10
STATION ROAD, HERTS M1
A44
Leighton Buzzard Stevenage
BISHOP’S
Bicester Luton STORTFORD Braintree
A120
A41
A1(M)
LOCATION SITUATION
Aylesbury A414
A40
St Albans Harlow
Oxford A41
Chelmsford
A4010 M11 A414
Bishop’s Stortford is an affluent and historic market town located in A12
Situated at the northern edge of the
A420 Watford Enfield
Hertfordshire, halfway between Cambridge and London, within the commuter High Wycombe
M25
M25 Goods Yard development scheme, the
A34
belt close to the M11. The town has a resident population of 35,000, with 78,000 A10
Premier Inn hotel is approximately
living within 6 miles and 322,000 within 12 miles. The population has shown M40
Romford Basildon 50m from the entrance of Bishop’s
Henley-on-Thames
strong growth in recent years, much of which has been stimulated by the A40 Leytonstone Stortford Train Station. The site fronts
Slough A13
continuing development at Stanstead Airport. onto Station Road to the north and onto
M4 LONDON Anchor Street to the west. This is a
Dartford
Bishop’s Stortford is 45 km (28 miles) south of Cambridge and 56 km (35 miles) prominent part of the site that is visible
Bracknell
north of Central London, and benefits from excellent transport connections,
Newbury
A20
from the train station and fronts the
Croydon
making it a desirable commuter town. A33
M3 M2 primary route to the town centre which
Woking
A23
is approximately a 5 minute walk from
M20
the hotel.
ROAD A34 M25
Maidstone
Junction 8 of the M11 motorway is approximately 2 miles from Guildford Reigate The northern edge of the hotel runs
Andover
Bishop’s Stortford Town Centre and provides access to the M25 A120 M23 Tonbridge parallel to a bus station and the
A24
motorway and London to the south. It is also located on the A120, western side faces the Anchor Street
M11
providing access to Braintree and Colchester to the east. A31 A3
Leisure Park which includes a cinema,
fast food retailers, a bar and a Nuffield
RAIL
A22
B1383 A120
Salisbury
Winchester
STANSTEAD
AIRPORT
Health Club. The eastern façade of the
Bishops Stortford train station provides regular rail services to BISHOP’S building is opposite a proposed
London Liverpool Street station, with the quickest journey time STORTFORD multi-storey car park and will open out
of 35 minutes. The station also links directly into Tottenham Hale A1250 onto the new station square which is
Underground Station on the Victoria Line with a fastest journey A1250
J8 A120 the approach to the new development.
time of 24 minutes, providing direct access to the West End and A1184 A1250
the wider London Underground network. M27 In addition to the retail offering
B1004 PREMIER
INN proposed as part of the Goods Yard
AIR RAILWAY
STATION development scheme, Jackson Square
Located 5 km (3 miles), 12 minute drive, to the east of Bishops shopping centre is approximately a
Stortford is London Stanstead Airport which handles circa 24.3 5 minute walk from the hotel.
million passengers annually and is the UK’s fourth biggest airport. A1060
M11
The airport is London’s third busiest airport and predominately
provides domestic and European flights.
A1184
PREMIER INN BISHOP’S STORTFORD
STATION ROAD, HERTS
BISHOP’S STORTFORD
GOODS YARD
The 6 hectare site will be developed over the next
10 years and will comprise of approximately 586
new homes, 3,000 sqm of office space, 1,500 sqm of
retail space, a 55 bed care home, two multi-storey
car parks and the subject hotel. In addition, the
scheme will also create a high quality public square
at Bishop’s Stortford station with hard and soft
landscaping and new vehicle, pedestrian and
cycle routes that connect the site with the
wider community.
KEY:
Premier Inn
Residential
Offices
Multi-storey Car Park
Carehome
Retail & Residential
Train Station
PREMIER INN BISHOP’S STORTFORD
STATION ROAD, HERTS
DESCRIPTION
Retail Unit
The property will be arranged over ground and three upper floors comprising
of four bedrooms on the ground floor and 27 bedrooms on each of the upper
GROUND FLOOR SECOND & THIRD FLOOR
floors, with 85 bedrooms in total. All rooms will be fitted to the latest Premier
Inn specifications and will include a range of double and family rooms.
On the ground floor there will be a reception, a restaurant and a 600 sq. ft.
retail unit with corner frontage and separate access on Station Road and
Anchor street that is well positioned to be used as a shop or café.
Hotel guests will be able to (subject to a charge) use the parking facilities in the
proposed multi-storey car park adjacent to the subject property.
FIRST FLOOR STATION ROAD ELEVATION
SITE JACKSON SQUARE
SHOPPING CENTRE
The site for the self-contained hotel is configured in a broadly rectangular shape.
Adjacent to the hotel will be a multi-story car park and the first phase of TOWN CENTRE
residential development.
PLANNING
The vision for The Goods Yard is established in the revised Masterplan which was
adopted in September 2017.
PREMIER INN SITE
Planning submissions for the current version of the scheme outlined in the SOUTH ST
(MAIN TOWN
Masterplan were formally submitted in November 2017, and granted formal HIGH ST)
approval, in May 2018 The application reference is 3/17/2588/OUT. BISHOP’S STORTFORD
TRAIN STATION
Full planning details and documents can be found in the Data Room.
View over River Stort towards development
PREMIER INN BISHOP’S STORTFORD
STATION ROAD, HERTS
TENURE
The property is sold freehold.
TENANCY
The property will be let on full repairing and insuring terms to Premier Inn Hotels
Ltd from practical completion for a term of 25 years with a tenant only break in
year 20. The tenant has the option to renew for a further 25 years on expiry.
The agreed rent is £378,250 per annum, reflecting £4,450 per bed, which will
be subject to five yearly upward only rent reviews linked to the Consumer
Price Index (CPI), compounded annually with a collar and cap of 0% & 4%.
The developer will provide a two year rental guarantee of £12,000 per year from
PC on the retail unit if it remains vacant.
COVENANT
Premier Inn Hotels Limited operates over 70,000 rooms, having increased by
over 4,000 rooms per year since 2010 and continues to target new hotels. As of
December 2017, Premier Inn had a total of 771 hotels and just over 10% of the
entire UK hotel market. In recent brand surveys, Premier Inn has extended its
Typical Reception
lead over other hotel brands in both quality and value. As a result, Premier Inn
has continued to grow its market share alongside an increase in RevPAR.
Typical Room Premier Inn Hotels Limited is rated 5A1 100% Minimum Risk by Dun & Bradstreet.
02/03/2017 03/03/2016 26/02/2015
Turnover £812,000,000 £743,195,000 £374,540,000
Pre-Tax Profit (Loss) £268,397,000 £255,471,000 £148,523,000
Tangible Net Worth £1,143,116,000 £923,100,000 £744,335,000
Artist impression of new high street
PREMIER INN BISHOP’S STORTFORD
STATION ROAD, HERTS
DEVELOPER DEVELOPMENT TIMETABLE
SOLUM Conditional exchange of land
December 2018
Established in July 2008, Solum is a partnership & funding contract
between Network Rail and Kier Property formed
to attract private investment into the rail network
and build much needed new homes close to
transport hubs. March 2019 Site purchased for £1.9m
To date Solum have completed schemes at Epsom,
Kingswood, Christchurch and Haywards Heath.
Construction of the scheme at Walthamstow
has completed and Solum are on the last phase June 2019 1st drawdown/Construction start
of construction at Twickenham. Solum have a
number of sites in the pipeline.
September 2020 Practical Completion
PROFESSIONAL TEAM
Soloum, as developer, have appointed a full
professional team and will be in a position to
provide a fully institutionally acceptable collateral
warranties package to a funding party.
Architect Pollard Thomas Edwards
Project Manager Mace
Quantity Surveyors Faithful & Gould
Planning Consultant Savills
North view with new residential on right
PREMIER INN BISHOP’S STORTFORD
STATION ROAD, HERTS
VAT DATA ROOM PROPOSAL CONTACTS
The property will be elected for VAT. Access to a secure online data We are seeking offers in excess A purchase at this price would produce Charles Fletcher
room is available upon request. of £8,690,000 (Eight Million Six the following running yield. +44 (0) 20 7861 1450
Hundred and Ninety Thousand Fixed Rent Running +44 (0) 78 3857 5063
CAPITAL Pounds) on a traditional forward
funding basis subject to contract and
Date (£ p.a.) Yield charles.fletcher@knightfrank.com
ALLOWANCES exclusive of VAT. A purchase at this
Sep-19
Sep-24
£390,250
£398,055
4.40%
4.84%
Hector Ahern
level would reflect a Net Initial Yield +44 (0) 20 7861 1749
of 4.42% assuming purchasers costs Sep-29 £406,016 5.33% +44 (0) 7976 577 214
Any unclaimed plant and machinery
of 2.77% and a low capital value per Sep-34 £414,136 5.86% hector.ahern@knightfrank.com
allowances will be made available to
bed of only £99,500.
the purchaser by way of separate Sep-39 £422,419 6.45%
negotiation.
*assuming CPI growth of 2% p.a.
KnightFrank.co.uk
55 Baker Street, London, W1U 8AN
IMPORTANT NOTICE. Particulars: These particulars are not an offer or
contract, nor part of one. You should not rely on statements by Knight Frank
LLP in the particulars or by word of mouth or in writing (“information”)
as being factually accurate about the property, its condition or its value.
Neither Knight Frank LLP has any authority to make any representations
about the property, and accordingly any information given is entirely without
responsibility on the part of the agents, seller(s) or lessor(s). Photos etc:
The photographs show only certain parts of the property as they appeared
at the time they were taken. Areas, measurements and distances given are
approximate only. Regulations etc: Any reference to alterations to, or use of,
any part of the property does not mean that any necessary planning, building
regulations or other consent has been obtained. A buyer or lessee must find
out by inspection or in other ways that these matters have been properly dealt
with and that all information is correct. VAT: The VAT position relating to the
property may change without notice. Knight Frank LLP is a limited liability
partnership registered in England with registered number OC305934. Our
registered office is 55 Baker Street, London W1U 8AN, where you may look at
a list of members’ names. September 2018. carve-design.co.uk 13691.
You can also read
