WOODFORD GREEN TRAVELODGE - 735 CHIGWELL ROAD, IG8 8AS - Allsop
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TRAVELODGE WOODFORD GREEN 735 CHIGWELL ROAD, IG8 8AS LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP
WOODFORD GREEN TRAVELODGE, 735 CHIGWELL ROAD, IG8 8AS INVESTMENT CONSIDERATIONS PROPOSAL ■ Attractive purpose-built hotel providing ■ Contracted rent of £233,794 per annum Offers sought in excess of £3,660,000 (Three Million Six Hundred and Sixty Thousand 34 rooms totaling 11,260 sq ft (GIA) Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a ■ Lease subject to 5 yearly uncapped rent ■ 15 minute walk from Chigwell reviews, with RPI indexation Net Initial Yield of 6.00% assuming standard purchaser’s costs and a low capital rate Underground Station, providing of only £325 psf. ■ Excellent potential to provide an Central Line Services alternative residential focused use, Yield profile assumes 2.5% uplifts per annum ■ 1.3 miles from Junction 4 of the M11 Motorway subject to vacant possession and providing direct access to the M25 Motorway, necessary consents Review Date Running Yield Bishops Stortford and Cambridge ■ Residential studio rents in the area 2025 6.79% ■ Let to Travelodge Hotels Limited on an FRI achieving £800 pcm (£9,600 p.a.) which lease expiring 09/08/2035, thus having potentially could provide a total income 2030 7.68% 14.4 years unexpired for the property of £326,400 per annum 2035 8.69% ■ Landlord option to require the tenant assuming they were let on this basis to enter into a reversionary lease of ■ Residential sales are achieving £500 psf 5 years, 11 months and 7 days from in the area DATAROOM 10/08/2035 which if exercised provides For access to the Allsop Marketing Data Room, please use the following link: a term of 20.3years unexpired ■ Leasehold. 225 years from 10/08/2010, providing an unexpired term of 214 years https://datarooms.allsop.co.uk/register/travelwoodfoodgreen at a ground rent of £10 per annum. LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP
A505 Stevenage Dunstable Stanste Luton A418 LUTON A5 A10 A1(M) A602 A44 M1 A34 Aylesbury WOODFORD GREEN Harpenden Hertford A40 TRAVELODGE, 735 CHIGWELL ROAD, IG8 8AS A414 M11 A41 Hemel Harlow OXFORD Hatfield Hempstead St Albans A4142 Thame M10 A414 A420 J21 A404 Chesham Epping Chipping A4010 J20 J23 Ongar J25 J19 M25 J27 High Borehamwood Buckhurst Hill M25 Watford A1 Enfield Wycombe A355 M1 WOODFORD Chigwell Beaconsfield GREEN A413 Harefield J28 M40 Walthamstow A404 J2 Snaresbrook A12 Marlow Ruislip J29 J16 Hampstead A10 Romford Ilford LONDON Wembley Hurley Maidenhead Uxbridge A40 A34 SLOUGH A13 M25 D A404(M) Southall London Eton J15 M4 City Windsor Hounslow A2 READING Heathrow Clapham M4 Dartford A329(M) Egham Ashford Bracknall Kingston J2 A20 Upon Thames LOCATION Ascot J12 A23 Bromley M3 J3 Woodford Green is a busy and affluent A322 Woodford Green is surrounded by Chingford (approximately 1 mile), Buckhurst Hill (approximately 1 mile), Loughton (approximately Croydon Walton-on-Thames residential area. The town is strategically 2 miles) and Chigwell (approximately 2 miles) The area is famed for being part of Essex’s’A232 A21 Golden Triangle with many Premiership footballers living in the area and Tottenham Hotspur’s training facilities situated in the immediate Sutton vicinity. M25 M20 located between London (approximately Sandhurst M25 Epsom Woodford has excellent road communications being situated at the bottom of the M 11 Motorway, where it meets the A 406 North 12 miles to the south west) and Chelmsford Circular Road. Woodford Green and Chigwell J10 A217 on the Central Line and provides direct access WokingUnderground Stations are both situated A339 Biggin Hill (approximately 18 miles to the north east). to Liverpool Street Station in approximately 20 mins and the West EndJ9of London in approximately A2232 mins. All of London’s airports M26 J5 M3easily reached via the M11 and M25 London Orbital. are BASINGSTOKE Fleet M25 A331 A3 J8 J7 J6 A34 Oxted Aldershot Reigate GUILDFORD Dorking Redhill Famham A21 A24 ROAD Godalming RAIL (from Chigwell Underground Station) AIR M23 To A303 Horley M11 1.3 mile Bank Station 33 mins Luton Airport 39 milesRoyal Gatwick Tunbridge Alton Witley M25 12 miles Holborn Station Cranleigh 38 mins Heathrow Airport 30 miles Wells A31 A406 6.8 miles City Thameslink Crawley 44 mins London City 9 miles Three Bridges A12 8 miles St Pancras International 51A264 mins Stansted Airport 28 miles Horsham LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP A23 Haywards Heath
WOODFORD GREEN TRAVELODGE, 735 CHIGWELL ROAD, IG8 8AS WEST HATCH D OA HIGH SCHOOL HR HIG FOR EST LANE 11 M ST JOHN’S ROMAN CATHOLIC SCHOOL ASHTON PLAYING FIELDS 113 DA NEW FOREST LANE OA LR EL GW HI 3 B17 C AD R RO NO SPORTS MA TO MS GROUND WO OD RO AD ROAD WELL CHIG N NE ING LA SPORTS FACILITY SITUATION DESCRIPTION D RO The property is strategically situated The property is of traditional construction clad externally with brickwork under a pitched tiled adjacent to Chigwell Golf Club on the roof It is arranged over ground and first floors providing a total of 34 en suite bedrooms. A 113 which links the North Circular The hotel benefits from shared car parking with the adjoining public house. Road with Junction 4 of the M 11 Motorway The surrounding area is TENURE mainly high quality residential uses with some light commercial use. Leasehold 225 years from 10/08/2010 providing an unexpired term of 214 years at £10 per annum. © Crown Copyright, ES 100004106. For identification purposes only. ACCOMMODATION & TENANCY SCHEDULE Tenant Floor Area GIA Area GIA No. of Rooms Lease Start Rent Review Lease Expiry Passing Rent £ pa Comments (sq ft) (sq m) Travelodge Hotels Limited Ground 5,734 532.71 34 10/08/2010 10/08/2030 09/08/2035 £233,794 5 yearly uncapped rent reviews, First 5,526 513.38 (14.4 years unexpired) with RPI indexation Total 11,260 1,046.09 £233,794 *There is an option for the landlord to require the tenant to enter into a reversionary lease of 5 years, 11 months and 7 days from 10/10/2035 which if exercised provides 20.3 years unexpired. Subject Property Demise ––––––– Mitchells & Butlers Demise (excluded from sale) –––––––– LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP
WOODFORD GREEN TRAVELODGE, 735 CHIGWELL ROAD, IG8 8AS COVENANT KEY STATISTICS (FY 2019) 588 44,832 80.6% Hotels Rooms Occupancy KEY HIGHLIGHTS Travelodge Hotels Limited • UK’s second largest hotel brand based on number of hotels and rooms • Positioned in the attractive value segment £51.82 £41.75 £727.9m with 588 hotels and serving 19m business ADR RevPAR Revenue and leisure customers • Well invested modernised hotel portfolio • Well balanced approximately even business / leisure customer split • Almost 90% booking direct, with c. 80% £337.8m £129.1m £129.1m 1.6x through own websites EBITDAR EBITDA Rent Cover EBITDA • Low upfront capex leasehold model 2020 TRAVELODGE CVA TRAVELODGE UK HOTEL DISTRIBUTION (AS OF MARCH 2020) On 19/06/2020, Travelodge creditors voted to approve a Company Voluntary Arrangement (CVA) UNITED KINGDOM INTERNATIONAL to restructure leases, to enable Travelodge to navigate the short-term challenges faced as a London Regions Spain Ireland business as a result of the COVID-19 situation. • 76 hotels • 498 hotels • 5 hotels • 11 hotels 06/11/2020 Travelodge has confirmed that its share- • 9,802 rooms • 33,756 rooms • 621 rooms • 858 rooms holders will go ahead with the £30m equity contribution. • 22% of total rooms • 75% of total rooms • 1% of total rooms • 2% of total rooms LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP
WOODFORD GREEN TRAVELODGE, 735 CHIGWELL ROAD, IG8 8AS FLOORPLANS GF FF Subject Property Demise –––––––– LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP
WOODFORD GREEN TRAVELODGE, 735 CHIGWELL ROAD, IG8 8AS A505 Stevenage Dunstable Stansted FASTEST LONDON A418 LUTON Luton A120 RESIDENTIAL SALES MARKET A10 TRAVEL TIMES A5 A602 M1 A1(M) Situated in East London, Redbridge is one A131 WalthamstowAylesbury 18 minutes A130 of London’s greenest boroughs with 40% of its Harpenden Ilford 18 minutes Hertford land devoted to open spaces. Ambitious plans A414 M11 are underway to redevelop Redbridge’s main Snaresbrook 26 minutes A41 Harlow A12 Hemel St Albans Hatfield town and administrative centre; Ilford, driven by Woodford Thame 31 minutes Hempstead M10 A414 Chelmsford A138 the arrival of three new Elizabeth Line stations. Dagenham 32 minutes J21 A414 Buckhurst HillA4010 34 minutes A404 Chesham J20 Epping Chipping Average J23 Ongar Chigwell 42 minutes J19 J25 M25 J27 Flat Price High Wycombe A355 M25 Watford Borehamwood A1 Enfield Buckhurst Hill £350,000 (£500 psf) M1 WOODFORD Chigwell A130 Beaconsfield Billericay GREEN House price growth A413 Harefield J28 Wickford M40 A404 J2 Walthamstow over last five years Snaresbrook A12 A127 Marlow J16 Ruislip Hampstead A10 Ilford Romford J29 Basildon 41% LONDON Wembley Hurley Maidenhead Uxbridge A40 Southend-on-Sea SLOUGH Canvey Average price growth A13 M25 Dagenham A404(M) Southall London Island 5-year forecast Eton 17% J15 City M4 Windsor Hounslow A2 READING Heathrow Clapham M4 Dartford A329(M) Ashford Gravesend For Comparative Purposes Only. Sheerness Egham Kingston Bracknall A20 J2 Upon Thames Ascot Bromley J12 A23 FUTURE DEVELOPMENT A322 WOODFORD M3 GREEN RESIDENTIALCroydon J3 RESIDENTIAL Rochester LETTING MARKET Gillingham Walton-on-Thames POTENTIAL MARKET OVERVIEW A232 A21 M25 Woodford M2 M20 Green is a popular commuting destination Sandhurst M25 Sutton EXISTING RENTAL ASSETS ON THE Epsom Sittingbourne Strong residual value with excellent The property sits in Redbridge, a primarily residential borough, with excellent access to the M11, The North Circular Snodland MARKET ARE COMMANDING RENTAL J10 future redevelopment potential. inWoking North East London. A217 Biggin Hill Road and Central Line Underground services. Existing LEVELS WITHIN THE REGION OF: A22 M26comprises a goodM20 The propertyM3 comprises a purpose J9 J5 stock mix of house and apartment The borough benefits from excellent Central London transport links BASINGSTOKE Fleet within built hotel investment A331 M25 buildings, albeit of dated build with relatively limited including A3 the Central Line and TfL Rail, which J7 will improve further Maidstone an established residential area J8 J6 Oxted new build accommodation due to consistent land Aldershot with the introduction of Crossrail.Reigate A26 in recent decades. Studios One Beds directly neighboring the Three Jolly GUILDFORD supply shortages Dorking Redhill £800 pcm The borough benefits from the 4th highest projected percentage £1,000 pcm Wheelers Pub. Famham Due A21 to location outside of the North Circular Road, increase in population, amongst A24 English Local Authorities. Two Beds M23 Woodford Tonbridge Green has historically traded at a discount Given the nature of construction Godalming £1,350 pcm The borough also recently recorded the 2nd largest average Horley to more London Paddock centric urban conurbations. Following and already highly efficient internal Royal Wood Staplehurst household size amongst English Local Gatwick Authorities (2014). improvements to transport links in recent years, Tunbridge layout, Altonthe property would lend Witley Cranleigh Wells itself to alternative uses, including Redbridge Local Authority has consistently under-delivered against this gap continues to narrow and the location is A229 A31 its housing targets since 2007/08.Crawley residential, subject to necessary Three Bridges increasingly popular with commuters given close consents. A264annum with a limited current The current target is 1,123 homes per proximity to Central Line services. The potential exists supply of developmentHorsham sites. to benefit from increasing rental values through the delivery of a high quality rental product, of which, is The Local Planning Authority has implemented a strategy of proactive currently in short supply within the locality. engagement with developers and land owner engagement. A23 Haywards Heath LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP
EPC The property has an EPC rating of C(63). VAT The property is elected for VAT and it is anticipated that the transaction will be treated as transfer of a going concern (TOGC). ANTI-MONEY-LAUNDERING A successful bidder will be required to provide information to satisfy the AML requirements when Head of Terms are agreed. DATAROOM For access to the Allsop Marketing Data Room please use the following link: https://datarooms.allsop.co.uk/register/travelwoodfoodgreen PROPOSAL Offers sought in excess of £3,660,000 (Three Million Six Hundred and Sixty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 6.00% assuming standard purchaser’s costs and a low capital rate of only £325 psf. Yield profile assumes 2.5% uplifts per annum Review Date Running Yield 2025 6.79% 2030 7.68% 2035 8.69% For further information or to make arrangements for viewing please contact: National Investment Lottie Hayward Andrew Wise 07817 549 237 07535 045 149 lottie.hayward@allsop.co.uk andrew.wise@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 03.21
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