93-99 QUEENSWAY 1-9 DUKE’S COURT - Allsop€¦ · and Kensington Gardens to the south. The building occupies a prominent corner position on the western side of Queensway, at its

93-99 QUEENSWAY ✦ 1-9 DUKE’S COURTLONDON W2

INVESTMENT SUMMARY✦ Prominent Freehold corner site

✦ Situated on the prime Queensway pitch adjacent to Bayswater London Underground station

✦ Substantial ongoing investment and regeneration of the immediate surrounding area

✦ Retail, leisure and one residential unit totalling 9,038 sq ft (839.7 sq m) arranged over basement, ground and first floors, remaining residential uppers (eight flats) are sold off on long leases

✦ Fully let to excellent covenants - Barclays Bank and Spirit Pub Company

✦ Pub lease guaranteed by 5A1 covenant Spirit Group Parent Ltd, a wholly owned subsidiary of Green King Plc

✦ WAULT of 21.5 years to lease expiries (no breaks)

✦ Total passing rent of £555,310 per annum

✦ Lapsed 2016 Planning Consent for three additional flats provides an opportunity to add massing and value

✦ Residential uppers (sold off) comprise nine flats of which six have under 65 years remaining

✦ Opportunity to realise lease extension premiums on the majority of the residential units

✦ No VAT applicable

✦ Offers are invited in excess of £10,950,000 (Ten Million Nine Hundred and Fifty Thousand Pounds), subject to contract. Pricing at this level reflects a Net Initial Yield of 4.75% assuming full purchaser’s costs of 6.70%.

93-99 QUEENSWAY ✦ 1-9 DUKE’S COURT 93-99 QUEENSWAY ✦ 1-9 DUKE’S COURTLONDON W2 LONDON W2

BAYSWATER QUEENSWAY

MARYLEBONE

ST. JAMES’S

THE SERPENTINE

HYDE PARK

MAYFAIR

FITZROVIA SOHO

THE CITY

PADDINGTON


LOCATION & SITUATIONThe property is located in Queensway in central London. Queensway is bordered by Notting Hill (west), Kensington (south), Paddington / Marylebone (east) and Maida Vale (north).

The location is internationally recognised as one of London’s most desirable and affluent neighbourhoods, characterised as a premier retail, residential and leisure destination, home to fashionable boutiques, restaurants, markets and bars. Tourism is a significant driver of the local economy with nearby Portobello Road market and the Notting Hill Carnival attracting millions of visitors each year.

Whiteleys Shopping Centre has traditionally been the focus of Queensway’s retailing, which closed in 2018 and is now undergoing a £1 billion redevelopment by

Meyer Bergman that includes new retail, residential and leisure amenities. Significant stakeholders investing in the area’s regeneration project also include GMS Estates and Bourne Capital.

Queensway is a desirable residential location due to its proximity to London’s open green spaces of Hyde Park and Kensington Gardens to the south.

The building occupies a prominent corner position on the western side of Queensway, at its junction with Moscow Road, and benefits from being immediately adjacent to Bayswater London Underground Station. Queensway acts as a strategic link between Westbourne Grove and Bayswater Road.

Hatherley

Inve

rne

ss Terra

ce

WESTWAY A40

K N I G H T S B R I D G E

B E L G R AV I A

W E S TK E N S I N G T O N

PA D D I N G T O N

B AY S WAT E R

N O T T I N G H I L L

K E N S A LT O W N

M A R Y L E B O N E

M A I D A VA L E

M AY F A I R

K E N S I N G T O N

Edgware Road

Edgware Road

Baker StreetMarylebone

Regent’s Park

Maida Vale

Paddington

Marble Arch

Bond Street

Kensington Olympia

Shepherd’s Bush

Ladbroke Grove

Holland Park

Queensway

Bayswater

Royal Oak

Warwick Avenue

Knightsbridge

South KensingtonGloucester Road

High Street Kensington

SloaneSquare

Hyde Park Corner

Blythe Road

Portobello R

oad

Ladbroke Road

Chepstow Villa

s

Ab

oo

tsbury Road

Ad

dison Roa

d

Ho

lland

Villa

s Roa

d

Ca

mp

den H

ill Road

Phillimore G

ard

ens

Kensing

ton Pa

lac

e G

ard

ens

Earls’s C

ourt Ro

ad

Ma

rloe

s Ro

ad

Vic

toria

Ro

ad Qu

ee

n’s G

ate

Exhib

ition

Ro

ad

Prince Consort Road

Thurloe Place

South Carriage Drive

Belgra

ve SquareBelgrave Place

Eccleston Stree

t

Gro

sven

or C

res

Ebur

y St

reet

Elizabeth St

Constitution Hill

Curzon Street

New

Bond Street

Craven Road Connaught Street

Seym

our Pla

ce

Portman SqUpper Berkeley Street

George Street

Paddington StreetYork St

Glo

uce

ster Pla

ce

Devonshire Street

Weymouth Street

New Cavendish Street

Oxford Gardens

Kensal Road

Golb

orne R

oad

Ashm

ore

Road

Fern

he

ad

Ro

ad

Ilbert Street

Droop Street

Shirland Road

Shirland Road

Sutherland Avenue

Lauderdale Road

Abercorn

Place

Lower Belgrave Street

Easton Place

Eaton Terrace

Bourne Street

Draycott Avenue Drayc

ott Place

Walto

n Stre

et

Hans Road

Kinne

rto n Stree

t

Ca

do

ga

n Pla

ce

Ca

do

ga

n La

ne

Pavilio

n R

oa

d

Pavilio

n Ro

ad

Motc

omb St

Eato

n Pla

ce

Chapel Stre

et

Princes Gardens

Ennismore Gdns

Harrington Gardens

Colling

ham

Road

Gloucester Roa

d

Laverton Pla

ce

Elvaston Place

Cornwall Gardens

Wrig

hts Lane

Lexham Gardens

Ho

rnton Street

Pala

ce

Ave

nue

Pala

ce

Ga

rde

ns Terra

ce

Brunswic

k Gd

ns

Bedford Gardens

Kensington Place

Uxbridge Street

Peel Street

Duchess of Bedford’s Walk

Phillimore W

alk

Pem

bro

ke V

illas

Melbury Road

Holland Park Road

Edwardes Sq

Holland Park

Holland Park Mews

Holland Pa

rk

Lansd

owne Ro

ad

Ladbroke Square

Portland

Road

Pottery Lane

Princeda

le Road

Queensdale Road

St James’s Gardens

Wilsham Street

Sirda

r Roa

d

Wa

lma

r Roa

d

Elgi

n C

resc

ent

Blen

heim

Cresc

ent

Co

rnw

all C

resc

ent

Dawson Place

Che

psto

w Pla

ce

Ga

rwa

y Roa

d

Moscow Road

Pembridge C res

Westbourne Grove

Talbot Road

Westbourne Park Villas

Porc

hester R d

Tavistock Road

Lancaster Road

Colville Terrace

Lonsdale Road

Lanc

aste

r Road

St An

n’s Roa

d

Cambridge Gardens

Bassett Road

St Charles Square

Chesterton Road

Bolingbro

ke Road

Sinclair RoadM

ilson RoadMa

sbro

Ro

ad

Gird

lers

Road

Blyt

he R

d

Russell Road

Avonmore Road

Pelham Street

Lodge Road

Penfold Street

Broadley S

treet

Harewood A

venue

Outer Circle

Outer Circle

Chester RoadInne

r Circle

St John’s Wood High Street

Crawford StreetYork Street

BROMPTON RD

EDGW

ARE ROAD

MAID

A VALE

HOLLAND RO

AD

MARYLEBONE ROAD

CROMWELL RD

MA

IDA

VALE A

5

HARROW ROAD A404

HARROW ROAD A404

ELGIN AVENUE

GR

OV

E END

ROAD

LISSON G

ROV

E

PARK ROAD

WIGMORE STREET

MA

RYLEBON

E HIG

H STR

EET

BAKER STREET

GLO

UC

ESTER PLAC

E

OXFORD STREET

PARK LA

NE

PRAED ST

REET

SUSS

EX G

ARDENS

BAYSWATER ROAD

BAYSWATER ROAD

BISHOP’S BRIDGE ROAD

WESTBO

URNE TERRACE

PEM

BRO

KE V

ILLAS

WESTBOURNE GROVE

CH

EPSTOW

ROA

D

WESTBOURNE PARK ROAD

LAD

BROKE G

ROV

E

KENSINGTON PARK GROVE

CLA

REND

ON

ROA

D

HOLLAND PARK AVENUE

LAD

BROKE G

ROV

E

BARLBY ROAD

WESTWAY A40

H AMMERSMITH ROAD

WARW

ICK RO

AD

KENSINGTON HIGH STREET

KEN

SING

TON

C

HURCH STREET

KENSINGTON ROAD

KENSINGTON GOREKNIGHTSBRIDGE

GL O

UC

ESTER R

OA

D

WEST CROMWELL ROAD

WA

RWIC

K GA

RDENS

PONT STREET

SLOA

NE STR

EET

GRO

SVENOR PLAC

E

EATO

N GATE

BUC

KIN

GH

AM

PA

LAC

E RO

AD

RANDOLPH AVENUE

LANARK ROA

D

SUTH

ERLAND AVENUE

WA

RR

ING

TON

CRE

S

WARWICK AVENUE

CASTELLAIN RD

BOURNE TERRACE

WARWICK AVE

BLOM

FIELD

ROAD

MAID

A AVENUE

WALT

ERTO

N RO

AD C

HIPPEN

HA

M R

OA

D

KILB

URN

PA

RK R

OA

DMA

LVERN R

OA

D

SALTRAM CRESCENT

RAN

DO

LPH AVENUE

LAN

ARK RO

AD

HAM

ILTON

TERRAC

E

CIR

CUS

RO

ADO

RCHA

RDSO

N STR

EET

FRA

MPT

ON

STR

EET

ST MARY’S TERRAC

E

LEINSTER G

AR

DEN

S

GRANTULLY

ROAD

GRE

AT

WES

TERN

RD

POR

TNA

LL RO

AD

BRAVIN

GTO

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OA

D

MARBAN RD

FIFT

H A

VEN

UE

SIX

TH A

VEN

UE

THIR

D A

VEN

UE

KNIGHTSBRIDGE

Que

en

swa

y

Grand Union Canal – Paddington A rm

LittleVenice

BoatingLake

The Serpentine

RoundPond

HollandPark

Hyde Park

Regent’s Park

Lord’s CricketGround

PaddingtonRecreation

Ground

Kensington Gardens

Buckingham PalaceGardens

V & A

ScienceMuseum

KensingtonPalace

Natural HistoryMuseum

St Mary’s Hospital

SerpentineGallery

Wallace Collection

Harrods

HarveyNichols

Selfridges

Portobello Market

Madame Tussauds

Imperial College

Royal Albert

Hall


CONNECTIVITYQueensway’s transport communications are excellent, with Bayswater London Underground station (District & Circle lines) being situated immediately adjacent to the property.

Additional nearby stations include Queensway (Central line), Notting Hill Gate (Central, District & Circle lines) and Paddington (Bakerloo, District & Circle, Hammersmith & City lines).

Paddington provides access to the UK’s wider national rail services and express rail services to Heathrow. Communications will be further improved when the Elizabeth line (Crossrail) opens at the station.

Approximate walking times.

BAYSWATER District & Circle Lines 1 MIN

QUEENSWAY Central Line 2 MINS

NOTTING HILL GATE Central, District & Circle Lines 9 MINS

PADDINGTON Bakerloo, Hammersmith & City, Circle & District LinesNational RailElizabeth Line (Crossrail) 14 MINS

CGI of Paddington Station, Elizabeth line.

Romford

Brentwood

HaroldWood

GideaPark

CustomHouse

ChadwellHeath

Goodmayes

SevenKings

ManorPark

IlfordForestGateStratford

WhitechapelFarringdonIverSloughTaplowBondStreet

ActonMain Line

WestEaling

TottenhamCourt Road

CanaryWharf

LiverpoolStreet

Langley WestDrayton

HeathrowAirport

EalingBroadwayHanwell

Southall

Hayes &Harlington

AbbeyWood

Maryland

Woolwich

BurnhamMaidenhead

PAD

DIN

GTO

N


Surface line

Tunnel

Portal (tunnel entrance and exit)

LOCAL DEVELOPMENTS

Whiteleys Shopping Centre – Meyer BergmanWhiteleys is undergoing a £1 billion regeneration to transform Queensway into the ‘Covent Garden of the West’. The mixed-use scheme will enhance the area with over 150 new homes, a cinema, boutique hotel, and retail and leisure offerings.

Meyer Bergman’s additional scheme opposite (114-150 Queensway) seeks to provide further retail and restaurant offerings along with residential.

103-131 Queensway – GMS EstatesPlanning pending for £30 million masterplan to restore the 1.4 acre site and the wider Queensway area to its ‘former glory’. The mixed-use scheme includes retailing, residential and public realm works.

Streetscape Together, the substantial investment from Queensway’s key stakeholders and Westminster City Council will enhance the area’s public realm to deliver a semi-pedestrianised environment to Queensway.

The Queensway Estate – Bourne CapitalThe multi-million pound investment programme includes 65 luxury apartments, over 45,000 sq ft of offices and major public realm improvements. Queensway Walk will provide over 135,000 sq ft of retail, restaurant and leisure space.

Source: Design and Access Statement for 114-150 Queensway (Queensway Parade)

Whiteleys Shopping Centre

114-150 Queensway

The Queensway Estate

Queensway

Bayswater

Queensway

103-131 Queensway



ACCOMMODATIONThe property provides the following areas as measured by Lane & Frankham.

Unit Floor Use Sq Ft Sq M ITZA Sq Ft

93-97 Queensway

First Offices 1,359 126.3 -

Ground Banking Hall 2,529 234.9 1,768

Basement Storage 1,708 158.7 -

Sub-Total 5,596 519.9 -

99 Queensway

Ground Pub / Restaurant 1,045 97.1 -

Basement Storage 1,353 125.7 -

Sub-Total 2,398 222.8 -

Flat 2, Duke’s CourtFirst Residential 1,044 97.0 -

Sub-Total 1,044 97.0 -

TOTAL 9,038 839.7

RETAILThe 5,596 sq ft retail unit (93-97 Queensway) is arranged as a ground floor banking hall, with first floor offices and basement storage.

PUBThe 2,398 sq ft public house (99 Queensway) is arranged as a ground floor bar / restaurant, with basement storage.

RESIDENTIALThe property also includes nine flats, known as 1-9 Duke’s Court, accessed separately from Moscow Road, which are arranged over first to third floors. Flat 2, totalling 1,044 sq ft, is let on a co-terminus lease with the pub. The remaining flats have been sold off on individual long leasehold interests.

To the property’s rear is a car park, accessed from Moscow Road, with space for approximately six cars.

The property occupies a prominent corner site and comprises a five-storey retail, leisure and residential building.


TENANCY SCHEDULE

Unit Tenant Use Floor(s) Area SQ FT (ITZA)

Lease Start Lease Expiry Next Review Rent £PA Rent £PSF / £ZA

Comment

93-97 Queensway Barclays Bank UK Plc Retail First, Ground & Basement 5,596 (1,944)

24 Jun 1965 23 Jun 2028 24 Jun 2021 £357,500 £183.90 Lease Inside the 1954 Act. 14 year rent review pattern.

99 Queensway Spirit Pub Company (Managed) Limited

Pub Ground & Basement 2,398 24 Jun 1965 23 Jun 2064 24 Jun 2028 £167,500 £69.85 Lease Inside the 1954 Act. Surety from Spirit Group Parent Limited. 21 year rent review pattern.

Sub-Total 7,994 £525,000

1 Individual Residential First - 25 Dec 1984 25 Dec 2173 - Peppercorn - -

2 Spirit Pub Company (Managed) Limited

Residential First 1,044 24 Jun 1965 23 Jun 2064 24 Jun 2028 £26,000 - -

3 Individual Residential Second - 25 Dec 1984 25 Dec 2173 - Peppercorn - -

4 Individual Residential Second - 25 Dec 1984 24 Dec 2083 24 Jun 2050 £150 - Fixed rental uplift to £225 PA.

5 Carrington Estates Inc Residential Second - 25 Dec 1984 24 Dec 2083 24 Jun 2050 £100 - Fixed rental uplift to £150 PA.

6 Individual Residential Second - 25 Dec 1984 24 Dec 2083 24 Jun 2050 £100 - Fixed rental uplift to £150 PA.

7 Individual Residential Third - 25 Dec 2013 24 Dec 2138 25 Dec 2038 £550 - Fixed rental uplift to £900 PA.

8 Individual Residential Third - 25 Dec 1984 24 Dec 2083 24 Jun 2050 £150 - Fixed rental uplift to £225 PA.

9 Individual Residential Third - 25 Dec 1984 24 Dec 2083 24 Jun 2050 £200 - Fixed rental uplift to £300 PA.

Fire Escape Barclays Bank UK Plc Fire Escape - - 29 Sep 1989 23 Jun 2028 24 Jun 2023 £1,500 - -

Car Parking Individual Car Parking - - - - - £1,560 - Licence dated 07 Jul 2004.

Sub-Total 1,044 £30,310

TOTAL 9,038 £555,310

COVENANTS

Barclays Bank is one of the UK’s largest, most recognisable, brand names with over 1,600 branches. Barclays also provides global financial services in over 50 countries worldwide with in excess of 130,000 employees. The company has a primary listing on the London Stock Exchange and is a member of the FTSE 100.

Barclays is graded low risk by ICC and Dun & Bradstreet reports a 5A 1 rating.

Spirit Pub Company was acquired by Greene King PLC in 2015 for £774 million, to form the UK’s largest managed pub company.

Combined, the groups operate over 3,000 public house, restaurants and hotels. Greene King operates brands including Hungry Horse, Loch Fyne Seafood & Grill and Old English Inns.

Green King is listed on the London Stock Exchange and is a FTSE 250 company. Dun & Bradstreet reports a 5A1 rating for Spirit Group Parent Limited.



PLANNINGThe property is situated in the London Borough of Westminster and sits within both the Queensway and Bayswater Conservation Areas. The building is not listed.

Planning Permission (15/07000/FULL) was granted in May 2016 for a single storey roof extension, providing three flats (1 x 1 bed, 1 x 2 bed & 1 x3 bed) totalling 2,454 sq ft, all with their own terraces. The BuckleyGrayYeoman designed scheme also includes a new entrance to the residential and façade alterations.

The consent has now expired, however the exercise has identified the potential to add extra massing to the building and has established a precedent for future development.

TENUREFreehold.

DEVELOPMENT OPPORTUNITY

Proposed Townscape View (CGI)

Site outline for indicative purposes only

Proposed Massing Model Proposed Fourth Floor Plan

cylin

der

APARTMENT2 BED APARTMENT

3 BED

APARTMENT1 BED


RETAIL OCCUPATIONAL MARKETLondon’s retail market is one of the world’s most robust, benefitting from wealth, occupier demand (both domestic and international), and high levels of consumer spending power from both overseas tourists (20 million in 2018) and domestic footfall. London’s ‘local’ retail markets are predominantly supported by domestic consumers, particularly in affluent residential areas with high disposable incomes.

Queensway, and neighbouring Notting Hill, is an established London retail sub-market benefitting from solid tenant demand and low vacancy rates due to the locations ability to appeal to retailers requiring sizeable flagship units and those seeking a boutique outfit.

The vibrancy and appeal of Queensway has further been enhanced by a number of high end gyms, including Barry’s Bootcamp and BodyWorksWest, providing first-class health and fitness offerings to local residents, workers and fitness fanatics, which has driven footfall in the area.

Queensway offers a significant discount to other major London retail destinations both in terms of rents and rateable values. Retail business rates have remained static, making the location more affordable and promoting future rental growth in Queensway.

Date Address Transaction Tenant Rent £ZA

Jan 19 86 Queensway, W2 Assignment Forexchange £192

Mar 18 233 Westbourne Grove, W2 OML Sézane £208

Sep 17 107 Queensway, W2 OML Screwfix £200

Aug 17 11 Queensway, W2 OML Urban Barista £250

May 17 21 Queensway, W2 OML Pret a Manger £250

Mar 17 127 Queensway, W2 RR Pret a Manger £205

INVESTMENT MARKETLondon’s real estate investment market remains robust in a market environment of low interest rates, weakened sterling and a healthy debt market. The market continues to be characterised by a shortage of available investment product with many investors reluctant to sell in a market with attractive fundamentals.

Total West End investment volume during 2018 reached approximately £7.6 billion, which is in line with 2017’s total and illustrates sustained investor appetite for London’s West End market.

Overseas investors continue to dominate accounting for 65% of transactions in the London’s West End in 2018. The geographic origin of this capital remains diverse, whilst there has been a notable increase from Asian and Middle Eastern investors, European (including UK buyers) remain very active.

Strong demand from investors (both domestic and overseas) combined with a limited number of sellers, means long dated income, to secure institutional grade covenants continue to be a particularly attractive investment opportunity in the market.

Date Address Tenant(s) Price NIY

Jun 19 118-120 Wigmore Street, W1 Wigmore Street Kitchens Halcyon Interiors

£8,300,000 4.24%

Jan 19 Shakespeare’s Head, 29 Great Marlborough Street, Soho, W1

Greene King (Spirit Pub Company Guarantee)

£17,550,000 3.63%

Oct 18 42-46 Westbourne Grove, Notting Hill, W2

Planet Organic Alounak Faber

£7,000,000 3.49%

Apr 18 145 Kensington Church Street, Kensington, W8

Savills UK £7,380,000 4.00%

Mar 18 Prince of Wales, 150-151 Drury Lane, Covent Garden, WC2

Greene King £10,450,000 2.52%

Feb 18 The Builders Arms, 13 Britten Street, Chelsea, SW3

Ei Group £4,370,000 3.22%

Sep 17 137-143 Notting Hill Gate, Notting Hill, W11

Pizza Express Leyland

£5,000,000 3.85%

Aug 17 The Old Swan, 206 Kensington Church Street, Notting Hill, W8

Greene King £4,500,000 1.82%

Mar 17 Grove House, 90 Westbourne Grove, Notting Hill, W2

Sainsbury’s King Media Deliberate PR

£12,000,000 4.21%




FURTHER INFORMATION

VATThe property is not elected for VAT and therefore VAT

will not be chargeable on the purchase price.

EPCEPCs are available in the data room.

DATA ROOMPlease contact Allsop for access to the data room.

PROPOSAL Offers are invited in excess of £10,950,000

(Ten Million Nine Hundred and Fifty Thousand Pounds), subject to contract. Pricing at this

level reflects a Net Initial Yield of 4.75% assuming full purchaser’s costs of 6.70%.

CONTACTS

allsop.co.uk

Nick Pemberton020 7543 6775

[email protected]

Chloe Newton020 7543 6886

[email protected]

Mark Ibbotson020 7543 6879

[email protected]

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. The market statistics, rental and investments comparables have been supplied by third parties and their accuracy cannot be guaranteed. Design CommandD www.commandHQ.co.uk 07.19

Documents

93-99 QUEENSWAY 1-9 DUKE’S COURT - Allsop€¦ · and Kensington Gardens to the south. The building occupies a prominent corner position on the western side of Queensway, at its