Capita Symonds Real Estate - Property
 

Description
The premises comprise a prominent corner retail unit with a return frontage along Adam and Eve Mews. The tenant trades over ground floor with the basement currently utilised as storage accommodation, although it could lend itself for sales purposes.

The first and second floors provide spacious residential accommodation occupied under regulated tenancies with separate access along the attractive Adam and Eve Mews.

We understand the residential tenants are at approximately retirement age.

Accommodation
The following floor areas have been provided by the vendor.

Description Use Sq Ft Sq M
Basement Ancillary 1,303 121.05
Ground Floor Sales 1,769 164.34
ITZA   1,132 105.17
First Floor Residential 1,146 106.47
Second Floor Residential 1,141 106.00
Total   5,359 497.87

Tenancy Schedule
Please click here to view the Tenancy Schedule.

Tenure
Freehold, with an element of flying freehold over Adam and Eve Mews as hatched.

Covenant Information
Hotel Chocolat is a national multiple who trade from 55 branches throughout the UK. They have a network of international branches in the Middle East, Caribbean and United States. They also operate from 32 concessions within John Lewis Department stores

Their revenue has increased year on year as per the following financial summary:

  Fiscal Non Consolidated 27 June 2010 Fiscal Non Consolidated 28 June 2009 Fiscal Consolidated 29 June 2008
Sales Turnover 24,645,011 21,788,334 18,383,911
Profit/(Loss) Before Tax (195,145) (533,282) 543,713
Tangible Net Worth 370,054 542,772 1,069,197
New Assets (Liabilities) (864,825) (1,381,655) (1,494,786)

Hotel Chocolat took an assignment of a lease from DSG Retail Limited who is rated 5 A1 by Dun & Bradstreet, with the following financial summary:

Fiscal Non Consolidated 27 June 2010 (000's) Fiscal Non Consolidated 28 June 2009 (000's) Fiscal Consolidated 29 June 2008 (000's)
Sales Turnover 4,110,495 4,173,987 4,657,198
Profit/(Loss) Before Tax (2,136) (86,879) 140,141
Tangible Net Worth 285,700 518,975 763,720
New Assets (Liabilities) 413,687 485,705 601,022

DSG Retail Limited are liable under an AGA agreement.

Planning
We understand the current use on the subject property falls within the use Class A1 as defined by the Town and Country Planning (Use Classes) order 1987 (as originally enacted).

The property is within the Royal Borough of Kensington & Chelsea (Planning 020 7361 3012 ). We understand the property is not listed although within a conservation area. Interested parties should make their own enquiries.

Residential
There are 2 large two bed flats occupying the first and second floors with a dedicated entrance along the attractive Adam and Eve Mews. These are subject to regulated tenancies, both producing £7,748 pa which is substantially below a market rent. There are therefore opportunities to drive income or dispose of the residential element to a specialist regulated tenancy investor.

The premises also fall below the building line of adjacent properties and could therefore lend themselves towards further sympathetic residential development, subject to obtaining the necessary consents. Indicative architects plans are available for guidance purposes.

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