BrownS - Savills
Browns 26 Shad Thames • London SE1 2AS 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
A210
CH
ST
UR
H NC
FE
CABLE STREET
DOC
LOWE RT
Tower Hill
HAME
S STR
EET
Tower of London A100
St Katharine Docks
Tower Bridge
City Hall London Bridge
A1203 WAPPING LANE
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. TO O
LE
Y
ST R
Browns
EE
T
WAPP IN
GH
OAD
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).
T REE
Location
K ST
Monument
GE R 19
A2
00 A200
TREET BBEY S
A
6
OAD
20
2
KR K PAR
AD S’S RO
E ST JAM
A2
A
Bermondsey
B2
326 Shad Thames, London SE1 2AS
03
01
A2
Browns
SOUTHWAR
TOW ER
8
STREE T
Maltby Street Market
BRID
A2
IGH
A2206
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 Floor Customer 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. Basement Customer toilets, trade kitchen, cellar and a number of storage/plant rooms. External Extensive terrace to the front elevation overlooking the River Thames with seating for c.170 customers.
Browns
326 Shad Thames, London SE1 2AS
Internal Configuration
Approximate Floor Areas The property has the following approximate gross internal floor areas. Ground
615.3 sq m (6,623 sq ft) Browns, Tea Trade Wharf, 26 Shad Thames, London, SE1 2AS
Basement
752.6 sq m (8,101 sq ft)
Total
1,367.9 sq m (14,724 sq ft)
Coventry's Wharf
Ground Floor 101 to 716
Spice Quay
Coles Upper Wharf
Heights 30
to
34
LW
M
Posts 28
TCB
Mud 26
Pumping Station
Mooring Posts
MA GU IR
4
ES TR EE T
Tea Trade Wharf
Clove Building
Jacobs Island Pier
9
FB Mooring Posts Bollard
5 24
d
FB
ar
ll Bo 6 Coriander Court
d
ar
ll Bo
am
nn
i
Jetty
co rd ia
C
on
29
13
4.1m
to
ha W
Mill Stairs
1
to
Reeds Wharf 33
1
84
28
Saffron Wharf
Chy
47 1 to
4.1m
30m 6 20 19
8 to
Ordnance Survey © Crown Copyright 2017. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250
23
21
St Andrew's Wharf
326 Shad Thames, London SE1 2AS
1 to 50
St Saviour's Wharf
W ha rf
SHA D
20m
1 to 63
12
Browns
FB
10m
Java Wharf
Mi ll
1 to
0m
4.3m
6 to 54
16
FB
10
THAM
ES
18
St Sa v
io ur
's
20
7
D
20
oc k
Ne
w
Co n
4.6m
31
4.2m
W ha rf
1
10
1 to 25
20
22
Basement
China Wharf
rf
2
80
Vogans Mill
Providence Square
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.
Browns
326 Shad Thames, London SE1 2AS
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
Browns
326 Shad Thames, London SE1 2AS
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
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.
Terms We are instructed to invite offers in excess of £6,950,000 (4.52% NIY) assuming purchasers costs of 6.65%.
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]
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. T hey 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. A ny 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
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
A210
CH
ST
UR
H NC
FE
CABLE STREET
DOC
LOWE RT
Tower Hill
HAME
S STR
EET
Tower of London A100
St Katharine Docks
Tower Bridge
City Hall London Bridge
A1203 WAPPING LANE
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. TO O
LE
Y
ST R
Browns
EE
T
WAPP IN
GH
OAD
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).
T REE
Location
K ST
Monument
GE R 19
A2
00 A200
TREET BBEY S
A
6
OAD
20
2
KR K PAR
AD S’S RO
E ST JAM
A2
A
Bermondsey
B2
326 Shad Thames, London SE1 2AS
03
01
A2
Browns
SOUTHWAR
TOW ER
8
STREE T
Maltby Street Market
BRID
A2
IGH
A2206
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 Floor Customer 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. Basement Customer toilets, trade kitchen, cellar and a number of storage/plant rooms. External Extensive terrace to the front elevation overlooking the River Thames with seating for c.170 customers.
Browns
326 Shad Thames, London SE1 2AS
Internal Configuration
Approximate Floor Areas The property has the following approximate gross internal floor areas. Ground
615.3 sq m (6,623 sq ft) Browns, Tea Trade Wharf, 26 Shad Thames, London, SE1 2AS
Basement
752.6 sq m (8,101 sq ft)
Total
1,367.9 sq m (14,724 sq ft)
Coventry's Wharf
Ground Floor 101 to 716
Spice Quay
Coles Upper Wharf
Heights 30
to
34
LW
M
Posts 28
TCB
Mud 26
Pumping Station
Mooring Posts
MA GU IR
4
ES TR EE T
Tea Trade Wharf
Clove Building
Jacobs Island Pier
9
FB Mooring Posts Bollard
5 24
d
FB
ar
ll Bo 6 Coriander Court
d
ar
ll Bo
am
nn
i
Jetty
co rd ia
C
on
29
13
4.1m
to
ha W
Mill Stairs
1
to
Reeds Wharf 33
1
84
28
Saffron Wharf
Chy
47 1 to
4.1m
30m 6 20 19
8 to
Ordnance Survey © Crown Copyright 2017. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250
23
21
St Andrew's Wharf
326 Shad Thames, London SE1 2AS
1 to 50
St Saviour's Wharf
W ha rf
SHA D
20m
1 to 63
12
Browns
FB
10m
Java Wharf
Mi ll
1 to
0m
4.3m
6 to 54
16
FB
10
THAM
ES
18
St Sa v
io ur
's
20
7
D
20
oc k
Ne
w
Co n
4.6m
31
4.2m
W ha rf
1
10
1 to 25
20
22
Basement
China Wharf
rf
2
80
Vogans Mill
Providence Square
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.
Browns
326 Shad Thames, London SE1 2AS
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
Browns
326 Shad Thames, London SE1 2AS
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
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.
Terms We are instructed to invite offers in excess of £6,950,000 (4.52% NIY) assuming purchasers costs of 6.65%.
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]
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. T hey 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. A ny 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
