Freehold Leisure Investment Opportunity
- A prominently located mixed use building providing 1,597 sq ft(148.36 sq m) of ground floor leisure (D2) accommodation.
- Situated directly opposite the entrance to Wandsworth Town RailwayStation enjoying exceptionally high levels of daily footfall.
- A recently upgraded modern dance studio facility in a highly affluentarea of South-West London.
- Let to Barrecore Limited on a 10 year lease from May 2017 at apassing rent of £45,000 per annum.
- Barrecore trade from 12 dance studios in popular Central London locations as well as Bristol, Harrogate and Alderley Edge.
- Offers are invited in excess of £750,000 (Seven Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT. This reflects a Net Initial Yield of 5.75%, assuming normal purchaser’s costs of 5.38% and a capital value of £465 per sq ft.
The property is located within the affluent London Borough of Wandsworth approximately 5 miles (8 km) south west of Central London.
The borough has a population of approximately 306,995 of which 64% are aged 25-44 and 31% have a professional occupation. Wandsworth is home to Clapham Junction railway station, the country’s busiest station.
The borough also features some of London’s most well-known open spaces, including Wimbledon Common, Battersea Park and Wandsworth
Road communications are excellent with the A217 providing a direct link into Wandsworth Town Centre to the south, which in turn links to the A3 providing direct access to Junction 10 of the M25 20 miles (32 km) to the south west.
Rail services include Wandsworth Town railway station, which provides easy access to Clapham Junction, Vauxhall and Waterloo Stations with a journey time of approximately 20 minutes.
The London Heliport, London’s main and busiest heliport, is also situatedin Wandsworth borough just beyond Battersea Park.
The property is located on Old York Road and forms part of a local retail parade which includes The Alma Public House and a number of local retailers.
The property is immediately visible from the exit of Wandsworth Town railway station and the recent enhancements to the roadscape have made access to the unit easy for all.
Wandsworth Town Railway Station had an estimated 4,000,000 entries and exits during 2016 highlighting the high level of footfall this area enjoys (Source: Office of Rail and Road, Feb 2018)
The immediate surrounding area comprises a mix of commercial occupiers including Costa, Sainsbury’s, The Alma, Brew, Pizza Express and a number of estate agents as well as a large number of terraced residential dwellings to the south.
The Wandsworth Borough has experienced a large number of sizeable mixed use developments in recent years and this trend is continuing with the redevelopment of The Ram Quarter, the regeneration of the Winstanley and York Road Estate, the former Homebase site within 300 yards of the subject property and proposed development of the B&Q site on Smugglers Way.
501 Old York Road currently provides ground floor D2 leisure accommodation with self contained residential accommodation on the upper floors. The ground floor offers a recently modernised 25 person air-conditioned barre fitness studio, changing rooms, a retail area for “fitness lifestyle essential” and a reception area. There is a fire escape door to the rear that provides access to Lovett’s Place.
The property occupies a site area of 0.04 acres (0.0165 ha).
We have been provided with the total floor area which we understand has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) on a net internal area (NIA) basis.
The ground floor unit is let to Barrecore Limited for a term of 10 years from 24th May 2017 until 23rd May 2027 at a current passing rent of £45,000 per annum. The lease is subject to a tenant only break option at the expiry of the 5th year of the term, subject to 6 months prior written notice.
The lease also provides for an open market rent review on 24th May 2022, should the tenant decide not to break.
There is a rent deposit of £11,250 plus VAT held by the existing owner. The lease is outside the Security of Tenure provisions of the Landlord and Tenant Act 1954.
The first and second floors have been sold off on a long leasehold basis for a term of 999 years from 1st February 2001.
Barrecore Limited launched in 2011 and was the first specialist barre fitness studio in the UK. Barrecore has grown since their first studio opened in Chelsea. Backed by Octopus Ventures, they now have 12 Studios across the UK, with nine in London including Chiswick, Hampstead, Notting Hill and Mayfair. They are continuing to expand bringing Barrecore to even more locations.
Barrecore Limited currently have a D&B rating of A1 reflecting a “minimum” risk of business failure. The last three years of reported accounts for Barrecore Limited are as follows:
It is the intention of the vendor to treat this transaction as a Transfer of a Going Concern (TOGC).
We are instructed to seek offers in excess of £750,000 (Seven Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. This reflects a Net Initial Yield of 5.75%, assuming normal purchaser’s costs of 5.38% and a capital value of £465 per sq ft
MISREPRESENTATION ACT 1997 & DECLARATION
Buchanan Bond Real Estate Ltd, for themselves and for the vendors of this property whose agents they are, give notice that:
i) The particulars are set out as a general outline only for the guidance of intending purchasers, and do not constitute, nor constitute part of, an offer or contract.
ii) All descriptions, dimensions, references to condition and necessary permission for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements or representations of fact and must satisfy themselves by inspection or otherwise as to the correctness of each of them.
iii) No person in the employment of Buchanan Bond Real Estate Ltd has any authority to make or give any representation or warranty in relation to this property.