303 - 320 KING'S ROAD II - Clay Street Property€¦ · W CROM W ELL D AM ROAD MARKS & SPENCER OL D B R OM P T R O AD RIVER THAMES BATERSEA PARK BROMPTON CHELSEA EARL’S FULHAM BATTERSEA

TITLE

Central London RetailLeasehold Investment

KING’S ROADCHELSEA SW3 5EP

303-323


KING’S ROADCHELSEA SW3

303-3232

INVESTMENT SUMMARY

� Located on the King’s Road in fashionable Chelsea.

� An unbroken parade of 12 retail units fronting King’s Road

opposite the Bluebird Café.

� Multi let to 12 tenants with a WAULT of 5.5 years to expiry.

� Total net rent passing of £663,975 per annum; current rents

range from £132 Zone A to £174 Zone A.

� New established rental tone of £174 Zone A providing

reversionary rental growth.

� Potential to extend the long leasehold interest.

� We are inviting offers in excess of £12,500,000 subject to

contract and exclusive of VAT. A purchase at this level will

provide a Net Initial Yield of 5.00% allowing for purchaser’s

costs of 6.72% and a reversionary yield of 5.30%.

Attractive retail parade extending over ground floor and basement providing 9,204 sq ft of retail accommodation



303-3233

LOCATION

The Royal Borough of Kensington

and Chelsea is one of London’s most

exclusive areas. King’s Road is a

leading retail destination, benefiting

from one of the most affluent

residential catchments in the UK.

King’s Road draws a large amount of tourists attracted by a selection of landmark

institutions. Key attractions on the King’s Road include Saatchi Gallery, Duke of York

Square and Peter Jones department store (John Lewis).

Fashion Brands represented on the King’s Road include; Cos, & Other Stories,

Russell & Bromley, Kurt Geiger, MAC, Kooples, American Vintage, Space NK,

Zadig & Voltaire, All Saints, Joseph, Whistles, LK Bennett, Jigsaw, Reiss, Jaeger, Nike,

Sweaty Betty and Lululemon Athletica. The King’s Road has attracted many

well-known leisure retailers including; Bluebird Café, Marco Pierre White’s King’s Road

Steakhouse & Grill, Eight over Eight, Beaufort House, The Big Easy, Juju, Raffles and

The Ivy Garden Chelsea.

The King’s Road is also home to high end supermarkets such as Marks & Spencer,

Waitrose and Bluebird Food Store.



303-3234

SITUATION & DEMOGRAPHICS

Immediately opposite the property is the famous

Bluebird Café. Other nearby occupiers include Busaba

Eathai, Tri Yoga, Beaufort House, Big Easy and Duck and

Dry Hairdressing.

The Royal Borough of Kensington and Chelsea is one of

the most affluent Boroughs in the UK with a population

of 84,971 within a 5 minute drivetime. The Borough

has an affluent catchment with 81% of the population

categorised in the AB and C1 group comparing to the

national average of 53%. ‘City Sophisticates’ represent

66% of the population within a 5 minute drive time.

The Royal Borough benefits from a large tourist

expenditure. Visitors are a significant driver of the local

economy, with over £3 billion per annum coming into the

Borough from non-resident spend and where nearly half

of the visitor spend is on retail.

SOUTH KENSINGTON

EARL’S COURT

FULHAM

BROADWAY

SLOANE

SQUARE

CROSSRAIL 2

PROPOSED SITE

GLOUCESTER ROAD

CHELSEA EMBANKMENT

CH

ELSEA EM

BANKMENT

FINB

OR

OU

GH

RO

AD

GU

NTE

R G

RO

VE

WA

RW

ICK

RO

AD

EA

RLS

CO

UR

T RO

AD

RE

DC

LIFFE R

OA

D E

DITH

GR

OVE

K

ING’S

ROAD

KIN

G’S R

OAD

K

ING’S

ROAD

KIN

G’S R

OAD

FULHAM R

OAD

DR

AYTO

N G

AR

DE

N B

EA

UFO

RT S

TRE

ET B

ATTE

RS

EA

BR

IDG

E

LIL

LIE R

OAD

ON

SLO

W G

AR

DE

NS

OLD

CH

UR

CH

ST

ALB

ER

T BR

IDG

E

R

OYAL HOSPIT

AL ROAD

PELHAM STREET SLOANE AVENUE

LO

WE

R S

LO

AN

E S

TRE

ET

F

ULHAM R

OAD

GLO

UC

ES

TER

RO

AD

W

CROM

WELL R

OAD

FULHAM R

OAD

OLD BROM

PTON ROAD

RIVER THAMES

BATERSEAPARK

BROMPTONCEMETARY

CHELSEA

EARL’SCOURT

FULHAM

BATTERSEA

WAITROSEMARKS & SPENCER

JOHN LEWISPARTNERSHIP

CHELSEAFOOTBALL CLUB

BLUEBIRD

CAFÉ

The period property is located on the south side of the King’s Road, between Beaufort Street and Paultons Square

303-320 KING’S ROAD



303-323

King’s Road benefits from good communications, with

access to the underground network at Sloane Square

(District and Circle Lines), South Kensington (Piccadilly,

Circle and District Lines) and Fulham Broadway (District

Line). There are many buses that run along King’s

Road with 11, 19, 22, 49 and 319 stopping close to the

subject property serving the City, Midtown and West End

districts.

Crossrail 2

The proposed Crossrail 2 scheme includes plans for a

new station on the King’s Road which will be part of the

£27bn scheme which will run north to south through

Central London.

The proposal would connect the National Rail networks

in Surrey and Hertfordshire via new tunnels and

stations between Wimbledon, Tottenham Hale and New

Southgate, linking with London Underground, London

Overground, Crossrail 1 (Elizabeth Line), national and

international rail services. The proposed Crossrail 2

King’s Road station would be located 0.5 miles

(6 minute walk) east along King’s Road from the subject

property.

5

TRANSPORT

CROSSRAIL 2

ELIZABETH LINE

HS2

CROSSRAIL 2

ELIZABETH LINE

M1

A1(M)

M25

M11

M20

M26

M23

M25

M3

M4

M40

HEATHROWAIRPORT

STANSTED AIRPORT

GATWICK AIRPORT

CITY AIRPORT

EPSOM

ABBEY WOOD

TO READING

TO SHENFIELD

TO CHESHUNT

TO BIRMINGHAM

CLAPHAM JUNCTION

CANARYWHARF

WATERLOO

VICTORIA

KING’S CROSS

CHELSEAKING’S ROAD



303-3236

DESCRIPTION

The King’s Road, built for Charles II, remained a private

Royal road until 1830

The period parade comprises 12 retail units fronting the south side of King’s Road,

forming part of a mansion block which is not included in the sale. The boutique sized

units are arranged over ground and basement levels with four of the 12 units trading

from the basement.



303-3237

TENURE

The interest is held for 99 years from Argyll Mansions Ltd expiring 20th June 2076. The head rent is £500 per

annum until 23rd June 2019 and then £1,000 per annum thereafter, subject to revision on the 57th year (2034)

where rents will be to the greater of: (i) 1% of the market rent or (ii) the yearly rent payable immediately before

the revision date. The freeholder is Cadogan Holdings Ltd.

The property is heldLong-Leasehold

Freehold

Superior LandlordCadogan Holdings Ltd

Head Lease of Whole

BuildingArgyll Mansions Ltd

Superior Lease of Ground

Floor and BasementSubject Lease For Sale



303-3238

TENANCIES & ACCOMMODATION

Address TenantLeaseStart

LeaseEnd

BreakOption

NextRR

1954Act

ITZA Basement Composite

ITZA* Ground

FloorTotal Floor

AreaRent

PassingZone A

ERV(pa)

ERV (ZA)

303 Kings Road Octavia Housing and Caret/a Octavia Foundation

24-May-06 23-May-21 - 24-May-21 Inside 333 534 359 410 944 £62,500 £174.00 £62,500 £174.00

305 Kings Road New Culture Revolution Ltd t/a New Culture Revolution

29-Sep-95 28-Sep-20 - 28-Sep-20 Inside 453 450 475 588 1038 £82,650 £174.00 £82,650 £174.00

307 Kings Road Space NK Limitedt/a Space NK Apothecary

21-Dec-13 20-Dec-18 - 21-Dec-18 Outside 340 430 361 413 843 £58,500 £162.05 £62,814 £174.00

309 Kings Road Z for Z Enterprises Ltd t/a Zaeem Jamal

23-Aug-12 22-Aug-22 23-Aug-17 23-Aug-17 Outside 395.5 506 435 563 1069 £57,500 £132.18 £75,690 £174.00

309a Kings Road Pretty London Ltd t/a Pretty Ballerinas

14-Jan-13 13-Jan-23 - 14-Jan-18 Outside 137 - 137 170 170 £22,000 £160.58 £23,838 £174.00

311 Kings Road VOS Beauty Salon Ltd t/a VOS Beauty Salon

15-May-14 14-May-24 - 15-May-19 Outside 377 426 415 462 888 £67,500 £162.65 £72,210 £174.00

313 Kings Road Andrew Lionel Millmore andSusan Catherine Wilsont/a Limelight Movie Art

01-Nov-10 31-Oct-20 - - Inside 397 470 435 468 938 £72,500** £166.67 £75,690 £174.00

315 Kings Road Perfect 10 Spa Ltd t/a Keo Spa

28-Sep-15 27-Sep-30 - 28-Sep-20 Outside 318.7 292 332.7 410 702 £58,000 £174.33 £58,000 £174.00

317 Kings Road J F Stone Investments Limited t/a American Dry Cleaning Company

24-Jan-11 23-Jan-21 - 24-Jan-21 Inside 226 279 237.5 299 578 £41,325 £174.00 £41,325 £174.00

319 Kings Road Kings Road Grooming Lounge Ltd t/a Haks Oscar

06-Jun-14 05-Jun-29 5-Jun-24 06-Jun-19 Outside 214 270 227 228 498 £37,500 £165.20 £39,498 £174.00

321 Kings Road Rococo Chocolates Limitedt/a Rococo Chocolates

26-Jul-13 25-Jul-23 26-Jul-18 26-Jul-18 Outside 253 346 270 295 641 £42,000 £155.56 £46,980 £174.00

323 Kings Road French Sole Limitedt/a French Sole

19-Feb-08 18-Feb-18 - 18-Feb-18 Inside 358 424 400 471 895 £62,500 £156.25 £69,600 £174.00

Total 3,801 4,427 4,084 4,777 9,204 £664,475 163.410 £710,795

LLH payment £500 £500

Net Rent £663,975 £710,295

* Composite ITZA incorporates basement sales at A/10 and basement storage at A/20

** Limelight Movie Art half rent payable from 1st August 2020 to 31st October 2020



303-3239

TENANT’S COVENANTS

303 King’s Road - Octavia Housing and Care,

T/A Octavia Foundation

Registered charity no (1065817), Octavia Foundation

connect people affected by unemployment, ill health,

social isolation or low incomes in central and west

London with opportunities for positive personal change.

The foundation currently has 20 shops in London.

305 King’s Road - New Culture Revoultion Ltd,

T/A New Culture Revolution

A noodle and dumpling bar, who produce high quality

food. The restaurant has been trading at this location

since 1995.

New Culture Revolution strongly emphasises the proper

combination of fresh ingredients promoting health, long

life and increased energy by achieving a delicate balance

of fibre, protein and vegetables.

307 King’s Road - Space NK Ltd,

T/A Space.NK.apothecary

A British cosmetics retailer which offers beauty products

from around the world. The chain was started in 1993

and has 62 locations in the UK.

Space NK has traded at this shop since 1998. In the last

financial year the company turnover was over £80 million.



303-32310


309 King’s Road - Z for Z Enterprises Ltd,

T/A Zaeem Jamal

A female fashion brand selling luxury evening gowns and

cocktail dresses.

Zaeem offers a personalized and exclusive bespoke

design service, offering choices from the finest hand-

embroidered craftsmanship, intricately woven into the

very best laces, silk satins, chiffons, and crepes, master

crafted into stunning, graceful and flowing silhouettes.

309a King’s Road - Pretty London Ltd,

T/A Pretty Ballerinas

Pretty Ballerinas launched their online boutique in 2005

and following huge demand, stores were opened in

London. With over 1,200 styles, some 300,000 pairs are

made each year.

They currently have seven stores in London and a further

63 other stores worldwide.

311 King’s Road - VOS Beauty Salon Ltd,

T/A VOS Beauty Salon

VOS is a female hairdressing and beauty salon with

an award-winning salon team offering manicures,

pedicures, facial treatments, spray tanning and waxing.

The business operates from this location and one other

retail unit in Fulham.

313 King’s Road - Andrew Lionel Millmore and Susan

Catherine Wilson, T/A Limelight Movie Art

A shop and gallery, offering original film posters and

lobby cards.

The shop features original pieces displayed over two

floors.

315 King’s Road - Perfect 10 Spa Ltd,

T/A Keo Spa

A hand and foot spa offering manicures and pedicures.

The salon has one other shop on Sloane Avenue and

focuses on high end bespoke beauty treatments



303-32311


317 King’s Road - J F Stone Investments Ltd,

T/A American Dry Cleaning Company

Founded in 1990, they specialise in high quality, service-

led dry cleaning, including tailoring and alterations. The

company has over 36 branches across London and the

South East.

American Dry Cleaning Company provides premier

corporate dry cleaning and laundry service operating

from your resident building, place of work, hotel or

office building. Their specialist service provides services

to inhabitants and employees using state-of-the art

technology. The turnover for the business was £6.9

million for the last financial period.

319 King’s Road - King’s Road Grooming Lounge,

T/A Haks Oscar

A gentleman’s grooming room with a very traditional

theme.

Haks mission is to create a relaxed, fun salon

environment whilst giving their customers a highly

professional modern gentlemen’s hair and shave

experience.

321 King’s Road - Rococo Chocolates Ltd,

T/A Rococo Chocolates

Founded in 1983. Award-winning luxury chocolates and

handmade chocolate gifts delivered across the UK. They

trade from 5 stores in the UK.

The brand has been trading at 321 King’s Road since

September 1996.

323 King’s Road - French Sole Ltd,

T/A French Sole

Founded in 1989, French Sole designs classic ballet and

flat footwear brands. The company has five stores in the

UK, the other four being located in Brook Street, Ellis

Street, Marylebone Lane and an outlet store on Lambs

Farm Business Park, Swallowfield, Berkshire.



303-32312

ERV

We are of the opinion that the current ERV of the property is £710,795 per annum. We have assumed an ERV of £174 Zone A for the retail units due to the most recent evidence at

303, 305, 315 and 317 King’s Road. This sits at a 50 % discount to prime King’s Road.

£500

£450

£400

£350

£300

£250

£200

£150

£100

£50

£02006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Prime Zone A Rents 2006 - 2016

Kings Road Brompton Cross Marylebone High Street Westbourne Grove

King’s Road benefits from an affluent residential population and strong retailing

reputation. Whilst international premium operators prefer to be located in the units

closer to Sloane Square, this location on the King’s Road is attractive to small high class

operators, boutiques and independent retailers seeking to benefit from the prosperous

catchment at what remains an affordable rent.

Occupational demand remains strong as operators seek to capitalise on this location

and demographic. This demand has been demonstrated by the rental growth achieved

across the asset, meanwhile the nature of the units allows global rents to remain

affordable.

OCCUPATIONAL MARKET

CURRENT ERV OF SUBJECT PROPERTY



303-32313

VAT

The property has been elected for VAT purposes and it is

expected that the investment sale will be treated as a

Transfer of a Going Concern (TOGC).

EPC

Energy Performance Certificates are available upon

request.

The property is located within the Royal Borough of

Kensington and Chelsea. The property is not listed and it

is not located in a conservation area.

PLANNING

INVESTMENT MARKET

Address Tenant Tenure Date Price NIY Comments

383 King’s Road,

SW10Chicama Ltd FH Exchanged £5.85

4.07%

Retail

2 vacant flats

above included

60 Parsons Green

Lane

Co-Operative Group Ltd

and Le Pain Quotidien LtdFH Sep-16 £6.37m 3.75%

857/859 Fulham

Road, SW6

Carphone Warehouse /

Roundhouse Design

2 Residential Units

FH May-16 £1.90m 3.45%Residential upper

floors included

168-174 Kensington

High Street, W8

Kathmandu UK Ltd /

Columbia Sportswear

Company Ltd

Wilko Retail Limited

FH Jan-16 £19.00m 4.20%

200 Fulham Road,

SW10Savills

LLH

(122 years)Dec-15 £2.80m 4.22%

Residential upper

floors sold off

600-606 Kings Road,

SW6

Various, incl. Leather

Chairs of Bath,

Deidre Dyson, Orchid

Furniture

FH Aug-15 £9.58m 3.48%Residential upper

floors included



303-32314

PROPOSAL

We are inviting offers in excess of £12,500,000 subject to contract and exclusive of VAT for our client’s leasehold interest. A purchase at this level will provide a Net Initial Yield of 5.00% allowing for purchaser’s costs of 6.72% and reflects a reversionary yield based on our current ERV of 5.30%.



303-32315

CONTACT

An electronic Data Room for the property can be accessed by contacting

JLL / Clay Street on the details below.

Richard Brown Chris Dickin

T: +44 (0)207 318 7818 T: +44 (0)207 935 2831

M: +44 (0)7957 626566 M: +44 (0)7795 114686

[email protected] [email protected]

Megan Hutchinson George Freeman

T: +44 (0)207 087 5715 T: +44 (0)207 935 2831

M: +44 (0)7540 141952 M: +44(0)7787 541437

[email protected] [email protected]

Disclaimer

JLL and Clay Street Property Consultants for themselves and for the vendors or lessors of this property whose agents they are, give

notice that:-

a. the particulars are set out as a general outline only for guidance and do not constitute, nor constitute part of, an offer or contract;

b. all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details

are believed to be correct, but any intending purchasers, tenants or third parties should not rely on them as statements or

representations of fact but satisfy themselves that they are correct by inspection or otherwise;

c. no person in the employment of JLL or Clay Street Property Consultants has any authority to make or give any representation or

warranty whatever in relation to the property;

d. Any images may be computer generated. Any photographs show only certain parts of the property as they appeared at the time

they were taken.

© 2017 Jones Lang LaSalle IP, Inc / Clay Street Property Consultants.

Documents

303 - 320 KING'S ROAD II - Clay Street Property€¦ · W CROM W ELL D AM ROAD MARKS & SPENCER OL D B R OM P T R O AD RIVER THAMES BATERSEA PARK BROMPTON CHELSEA EARL’S FULHAM BATTERSEA