browns - assets.savills.com

26 Shad ThameS • London Se1 2aS

BrownS

Virtual freehold restaurant investment for sale, currently let to Mitchells and Butlers

Licensed Leisure www.savills.co.uk/licensedleisure

InveSTmenT Summary

+ Prominent River Thames frontage

+ Close to Tower Bridge and City Hall

+ Let to Mitchells and Butlers Retail Limited

+ Current rent £335,000 per annum

+ Next review September 2018

+ Occupational lease expires September 2028

+ Ground and basement GIA - 1,367.9 sq m (14,724 sq ft)

+ 999 year lease from December 2003

+ We are seeking offers in excess of £6,950,000 (4.52% NIY)

+ Business unaffected by sale

BrownS 26 Shad ThameS, London Se1 2aS

FENCHURCH STREET

DO

CK

ST

RE

ET

CABLE STREET

WAPPING

WA

PP

ING

LA

NE

A200

ST

JAM

ES

’S R

OA

D

PA

RK

RO

AD

SO

UT

HW

AR

K

A200

A2206

A2206A2

A2198

ABBEY STREET

TOOLEY STREET

LOWER THAMES STREET

B20

3

HIGHSTREET

TO

WE

R B

RID

GE

RO

AD

A20

1

A10

0

A1203

A210

Bermondsey

LondonBridge

Tower Hill

Monument

Tower ofLondon

CityHall

TowerBridge

Maltby StreetMarket

St KatharineDocks

Browns


LocaTIon

Located in the heart of London’s South Bank in the Butlers Wharf Riverside development. Browns occupies a prominent position fronting the River Thames and overlooking Tower Bridge with nearby occupiers including All Bar One, Ask Italian and Le Pont de la Tour. The property is a short walk from City Hall, the Tower of London and Borough Market.

Browns occupies a prominent riverside location and forms part of the luxury Butlers Wharf development comprising more than a million square feet of retail, cultural, work and living space. Public transport communications are available from Bermondsey (Jubilee Line) and London Bridge (Overground, Jubilee and Northern Lines).


deScrIPTIon

The property occupies an historic seven storey building with Browns arranged over ground and basement levels. The upper floors have been converted to luxury apartments and fall outside of our clients ownership.

accommodaTIon

Ground FLoorCustomer trading area with modern bar servery to the rear and seating on a mix of loose tables, chairs, sofas and fixed benches. There is a private dining room to the far end of the main trading area and a disabled toilet at the end of the bar.

BaSemenTCustomer toilets, trade kitchen, cellar and a number of storage/plant rooms.

exTernaLExtensive terrace to the front elevation overlooking the River Thames with seating for c.170 customers.


InTernaL conFIGuraTIon

Ground Floor

Basement

aPProxImaTe FLoor areaS

The property has the following approximate gross internal floor areas.

Ground 615.3 sq m (6,623 sq ft)

Basement 752.6 sq m (8,101 sq ft)

Total 1,367.9 sq m (14,724 sq ft)

Mud

MLW

4.6m

4.1m

4.1m

4.3m

FB

Jetty

Chy

FB

TCB

Bollard

Bollard

Bolla

rd

FB

Mooring

Posts

Posts

MA

GU

IRE

STR

EE

TS

HA

DT

HA

ME

S

St S

avio

ur's D

ock

1 to

84

Cinna

mon

Wha

rf

16

Wharf

9

18

1 to 6312

Saffron

Wharf

20

20

Vogans Mill

Mill W

harf

23

22

Java Wharf

St Andrew's

24

6 to 54

101

to 8

02

13

St Saviour's Wharf

Pumping

Station

1 to 21

10

6

CorianderCourt

1 to 25

Clove

Building

26

Tea Trade Wharf

198

to 2

06

28

5

1 to 50

New

Con

cord

ia W

harf

4

Mill Stairs

4.2m

Mooring Posts

Jacobs Island Pier

FB

Reeds Wharf

China

Wharf

Providence

Square

1 to

47

1

207

33

31

28

29

30 to 34

Coles Upper Wharf

Spice Quay

101 to 716

Coventry's Wharf

Heights

Boro Const and LB Bdy

0m 10m 20m 30m

Browns, Tea Trade Wharf, 26 Shad Thames, London, SE1 2AS

Ordnance Survey © Crown Copyright 2017. All rights reserved.Licence number 100022432. Plotted Scale - 1:1250


PLannInG

Our initial enquiries of the local authority have revealed that the property is not listed but it is located within the Tower Bridge Conservation Area.

ePc

C-65

Tenure and Tenancy

The ground and basement is held on a 999 year lease from December 2003 at a peppercorn rent.

The occupational lease of the ground and basement is let for a term of 25 years to Mitchells & Butlers Retail Limited (Company Number 00024542) expiring 28 September 2028 at a current rent of £335,000 per annum subject to five yearly upwards only rent reviews, with the next review on 29 September 2018.


The marKeT

London continues to be recognised as one of the worlds safe havens for property investors. Its status as a leading global financial centre and as one of the most visited cities by tourists continues to drive investor and occupier demand.

The most recent research released by the Office for National Statistics indicated that the number of international visits to London increased by 20% between 2010 and 2015 to 18.6 million with separate research by Oxford Economics predicting that the capital will welcome 35.6 million visitors by 2020. Visitor spend in London has also increased significantly with £15 billion spent on hotels, restaurants and attractions, an increase of 35% when compared with 2010.

Investor demand for London assets remains incredibly strong particularly for buildings which are let to strong covenants on long leases. Occupier demand for premises in prime London locations continues to push rental growth in the capital. The strength of demand has led to investment yields sharpening in recent years as can be seen from the schedule of comparable transactions below.

comParaBLe InveSTmenT TranSacTIonS

Property Tenant Price yield (nIy) date

Bills & Paul, wc2 Bills Restaurant Limited/ Paul U.K Limited

£7.50M 3.80%February

2018

Franco manca, Tw9 Franco Manca 2 UK Limited £3.25M 4.05%February

2018

cote, w5 Cote Restaurants Limited £2.95M 4.00%July 2017

Pizza express, w1 Pizza Express (Restaurants) Limited £4.70M 3.50%April 2017

nando’s, Sw4 Nando’s Chickenland Limited £2.50M 3.30%January

2017

Published for the purposes of identification only and although believed to be correct its accuracy is not guaranteed. Reproduced from the Ordnance Survey Map with the permission of the Controller of H.M. Stationery Office © Crown copyright licence number 100024244 Savills (L&P) Limited.Savills, their clients and any joint agents give notice that:

1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact.

2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise.

march 2018

vIewInG and conTacTS

All viewings must be made by prior appointment and under no circumstances should any direct approach be made to any of the occupational tenants staff.

For further information and all viewing requests please contact the sole selling agents Savills.

Paul Breen +44 (0) 207 877 4555 [email protected]

Stuart Stares +44 (0) 207 299 3088 [email protected]

TermS

We are instructed to invite offers in excess of £6,950,000 (4.52% NIY) assuming purchasers costs of 6.65%.

covenanT

Mitchells and Butlers is a leading operator of managed restaurants, pubs and bars throughout the UK with over 1,700 outlets. Their brands include All Bar One, Browns, Harvester, Miller & Carter, O’Neills and Vintage Inns.

For the 12 months to 30 September 2017 Mitchells and Butlers reported a turnover of £2,180 million and an EBITDA of £429 million.

For the same period Mitchells and Butlers Retail Limited reported a turnover of £1,656 million and an operating profit of £236 million.

browns - assets.savills.com

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