TRAVELODGE I BRENT CROSS - Prime North London Hotel DENMARK HOUSE I LONDON I NW9 7BW - Amazon AWS
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TRAVELODGE I BRENT CROSS
Prime North London Hotel
D E N M A R K H O U S E I LO N D O N I N W 9 7 B W
TRAVELODGE
BRENT CROSS I NW9 7BW Prime North London Hotel
Investment Summary
• Opportunity to acquire a newly refurbished
128 bed Travelodge hotel and office in a highly
accessible North London location
• The hotel is let to Travelodge Hotels Ltd for
25 years from November 2017
• The office accommodation is let to the
Secretary of State for Communities and Local
Government until September 2023, with a
break date in September 2020
• The Secretary of State for Communities and
Local Government have expressed interest in
removing their break clause in September 2020
• Travelodge rent is subject to 5 yearly rent
reviews linked to CPI with a collar and cap
of 1% and 4%
• Travelodge passing rent is £655,922 per annum
reflecting a low rate of £5,124 per bed per annum
• Secretary of State for Communities and
Local Government passing rent is £186,200
per annum
• Total rent roll of £842,122 per annum
• A substantial car park with allocated spaces
• Freehold
We are seeking offers in excess of £16,000,000
(Sixteen Million Pounds) exclusive of VAT,
reflecting a Net Initial Yield of 4.93% after
purchasers costs of 6.74%
TRAVELODGE
BRENT CROSS I NW9 7BW Prime North London Hotel
BRENT CROSS TESCO BRENT SOUTH STAPLES CORNER STAPLES CORNER THE CITY
TUBE STATION SUPERSTORE SHOPPING PARK RETAIL PARK BUSINESS PARK
BRENT CROSS HOLIDAY INN LONDON VAUXHALL TRAINS TO BIG YELLOW
SHOPPING CENTRE - BRENT CROSS STAPLES CORNER CENTRAL LONDON SELF STORAGE
AERIAL TBS
NORTH CIRCULAR
ROAD
HENDON TRAIN
STATION
M1
A5
TRAVELODGE
BRENT CROSS I NW9 7BW Prime North London Hotel
A5183
A418 8 A120
10
A41
A10
Aylesbury A1M
Location Regeneration
9
M1
Hertford Witham
A418 M11
A41
4 A414
Harlow
Brent Cross is on the western edge of Brent Cross is about to undergo major 8A
regeneration, Chiltern Hills
AONB 8
St Albans 3
7
A41 A10
the London Borough of Barnet, close with Hammerson and Aberdeen Standard 21
A414
A414
20 Epping
to the boundary with the Borough of developing a new £4.5bn town centre which will be A4010 Potters Bar Cheshunt
6
A413 23
Amersham 5 25 27
Brent. The area is bordered by Hendon known as Brent Cross Cricklewood. A fundamental M40 Watford
Barnet
Loughton
M25 M1
Way to the east, the M1 to the west and element to the scheme is the £1.4bn redevelopment Wycombe High
4
A1 M11 M25 A12
A130
3 Brentwood
the North Circular that connects the of Brent Cross Shopping Centre, which will include 4 Edgware
2
A406 28
A4130 M40
two roads and bisects the area. a 592,000 sq ft extension to accommodate 150 Brent Cross A10
28
A127
Basildon
Rayleigh
1 Romford 29 A127
new shops, 50 new restaurants and other leisure A404
16 1
Wembley A41
A12
A406
Brent Cross Shopping Centre, is a major A4074 A40
A406 Dagenham
businesses including a luxury cinema. John Lewis, Maidenhead CENTRAL LONDON London Southend
scheme which covers c. 800,000 sq ft Hayes A312
Brentford A13 City Airport
DP World
London -on-sea
which is the anchor tenant at the shopping centre,A321 8
A13 Gateway
Rive
and includes prime retailers such as 15 1
A4
30
Port Tham
has recently announced that it has signed a new Windsor Heathrow A2
A102 of
John Lewis, Zara and Marks & Spencer’s; M4
Reading M4
Dartford
Tilbury
lease and will refurbish its store as part of the A316 Lewisham
it is located approximately 0.5 miles 10 Twickenham
A205
Gravesend
redevelopment. 11 Bracknell 1
A23
A20 2
to the east of the property. There is Ascot 12
M3 Kingston
Upon Thames
A24
Bromley
A2
1
a major regeneration planned for the The wider Brent Cross Cricklewood scheme will cover
3
Weybridge Croydon 2
A322
M3 A232
area which focuses on the shopping circa 141 hectares (370 acres) and provide 7,500
A33 3 M25
A3 4 M20
Rainh
Camberley A243 Epsom M2
centre. Brent Cross Bus Station is new homes, 4m sq ft of new office space, three new
3
4 Woking 10
9 A217
located within the Centre. schools, new public realm, enhanced community Leatherhead
A22
5
M26 2A 4
6
7
M3 A331 A23
facilities and significant transport improvements,
Basingstoke
A3
M25 Sevenoaks A228
Given the proximity of the hotel to Hendon 8 7
6 Maidstone
such as the creation of an additional train station on
6
Aldershot Guildford
HENDON WAY
Redhill
central London the surrounding areas A5 A21
the Midland Mainline. The development is expected to A26
N CIRCULAR RD A229
are predominantly residential with some M1
Dorking
create 27,000 new jobs and to complete in 2022. London M23
Gatwick Tonbridge
industrial use adjacent to the major roads. A31 A24 Airport
A22
Brent
A3
BRENT Royal Cross
Tunbridge
CROSS
Situation Crawley Wells
BRENT PARK RD BRENT CROSS
The site is located between Edgware FLYOVER
Road (A5) and the M1 just north of the 1
North Circular and its major junctions EDGEWARE RD A41
with the A5 and M1. The property is
next to a significant Vauxhall dealership A406
to the south, and to the north there
are properties with industrial and retail
warehouse use. The area designated
for redevelopment is within 500m N CIRCULAR RD A5
HENDON WAY
walking distance.
CGI OF BRENT CROSS REGENATION
TRAVELODGE
BRENT CROSS I NW9 7BW Prime North London Hotel
Connectivity
RAIL
The immediate area is served by Brent Cross and Hendon
Central Underground Stations, both of which are on the
Northern line and located approximately 1 mile east and
north east of the property respectively.
Hendon Train Station is located approximately 0.5 miles
to the north of the property, providing direct lines to London
Blackfriars Station (30 mins) and London St Pancras
International (20 mins) to the south and Luton Airport
(30 mins) to the north via the Thameslink Line.
A new train station is planned on the Midland Mainline as
part of the Brent Cross development.
BUS
There is a bus station within the shopping centre that
provides a number of routes to both central London and
the immediate area.
ROAD
The site, which fronts onto the A5, can be easily accessed
via Junction 1 of the M1 or from the North Circular, the
junctions for which are less than 150m from the property.
Barnet Council, The Highways Agency and Transport for
London are working with developers to improve transport
in the area with £200 million to be invested on road
infrastructure. Improvements will include two new road and
five new pedestrian bridges, which will significantly improve
access to parts of the area that are currently difficult to reach.
TRAVELODGE
BRENT CROSS I NW9 7BW Prime North London Hotel
Description
The hotel accommodation is on the top two floors
of the original building and within the entire extension.
The ground floor of the extension contains the reception,
bar café and back office areas. The hotel’s 128 bedrooms
are on the top two floors.
The property, a former office has been converted to
provide both office and hotel accommodation. The ground
floor of the original building remains as office space and is
separated by a central foyer. The accommodation splits
into 5,293 sq ft (North) and 8,366 sq ft (West) providing
a total of 13,659 sq ft. The north section is fitted out with
interview rooms and waiting areas with the west wing
containing open plan offices and meeting rooms.
Investment Comparables Tenure
Date Property Structure Rooms Term Review Structure Price Yield Freehold
Avail. Travelodge London, Leytonstone FF 51 25 years 5 yearly RPI (1% & 4%) £10.00m 4.50%
U/O Travelodge London, Whitechapel FC 88 25 years 5 yearly CPI (0% & 4%) £18.65m 4.40% Tenancy
Travelodge & Halfords The hotel is let to Travelodge Hotels Ltd for 25 years
U/O Built 96 17 years 5 yearly RPI (uncapped) £13.70m 4.50%
Whestone, London from November 2017 until November 2042. The rent
Jun 2018 Travelodge Dagenham Built 82 25 years 5 yearly CPI (1% & 4%) £10.06m 4.65% is subject to five yearly rent reviews linked to CPI with
an annual collar of 1% and cap of 4%. The passing rent is
Jan 2018 Travelodge London, Harrow FC 102 34 years 5 yearly RPIX (uncapped) c. £16.00m 3.83% £655,922 per annum reflecting a rate of £5,124 per bed.
The ground floor office accommodation is let to Secretary
Rental Comparables of State for Communities and Local Government until
September 2023 with a break in September 2020.
Date Property Rooms Deal Type Rent Per Bed
The passing rent is £186,200 per annum and is ‘subject
Q2 2018 Travelodge Dagenham East 78 New Letting £4,811 to five yearly upwards only open market rent reviews.
Q2 2018 Travelodge Dagenham 82 New Letting £5,706 The SSCLG have expressed interest in removing their
break clause in September 2020.
Q1 2018 Travelodge Leytonstone 51 New Letting £6,932
Q4 2017 Travelodge Whitechapel 88 New Letting £9,000
TRAVELODGE
BRENT CROSS I NW9 7BW Prime North London Hotel
Covenant
Travelodge Secretary of State for Communities
and Local Government
Travelodge Hotels Ltd is the UK’s largest independent hotel brand
boasting over 558 hotels and 42,000 bedrooms across the UK as well The Secretary of State for Communities
as 5 hotels in Spain and 12 franchises in Ireland. The budget hotel chain and Local Government (also known as The
has recently announced plans to open 20 properties during 2018. Secretary of State for Housing, Communities
and Local Government) is responsible for
In 2012, Golden Tree Asset Management, Avenue Capital Group
a range of UK government policy including
and Goldman Sachs took ownership of the business. Since then, a
community projects, regeneration, local
significant investment program has taken place with close to £100
government, planning and housing.
million deployed in order to modernise 35,000 rooms across all
hotels. Furthermore, Travelodge continue to invest in the quality The office space is used by The London
of their hotels, which has seen the roll out of the new SuperRoom Community Rehabilitation Company Limited
concept, which feature a more stylish décor and extra amenities. whose main role is to manage the majority
of offenders under probation supervision. It
The latest results indicate that total revenue was up by 6.60% in 2017
works with the National Probation Service,
to £637.1m, compared to the previous year. While occupancy rates
which manages offenders who have been
were “maintained” at 76.1% this increase was driven by strong revenue
assessed as presenting high risk of harm to
per available room (RevPAR) growth of 2.90% to £40.49. As a result,
others, and helps to prevent reoffending and
earnings before interest, tax, depreciation and amortisation (EBITDA) in
make London safer by working together with
2017 were £112.4m.
other criminal justice agencies, such as the
Travelodge Hotels Ltd currently has a ‘minimum risk of business Police, Prisons and Courts.
failure’ advised by Dun & Bradstreet (D&B) with a resultant rating of
We consider this to be an undoubted covenant.
‘5A1’. The most recent financial figures are highlighted below.
31st December 31st December 31st December
2017 2016 2015
Turnover (£) £624,000,000 £587,700,000 £552,100,000
Pre-Tax Profit £45,200,000 £46,800,000 (£545,300,000)
Net Current £411,800,000 £369,900,000 £329,200,000
Assets
Tangible £316,100,000 £271,600,000 £224,600,000
Net Worth
TRAVELODGE
BRENT CROSS I NW9 7BW Prime North London Hotel
EPC VAT Proposal Contact Information
Available upon request The property is elected for VAT and we We are seeking offers in excess of Shaun Roy
anticipate the sale will be treated as TOGC £16,000,000 (Sixteen Million Pounds) T: 020 7861 1222
exclusive of VAT, reflecting a Net Initial M: 07957 342 285
Yield of 4.93% after purchasers costs E: shaun.roy@knightfrank.com
of 6.74%
Hector Ahern
T: 020 7861 1749
M: 07976 577 214
E: hector.ahern@knightfrank.com
Luke Shackleton
T: 020 7861 1112
M: 07976 729 924
E: luke.shackleton@knightfrank.com
KnightFrank.co.uk
55 Baker Street, London, W1U 8AN
Important notice. Particulars: These particulars are not an offer
or contract, nor part of one. You should not rely on statements
by Knight Frank LLP in the particulars or by word of mouth or
in writing (“information”) as being factually accurate about the
property, its condition or its value. Neither Knight Frank LLP has
any authority to make any representations about the property,
and accordingly any information given is entirely without respon-
sibility on the part of the agents, seller(s) or lessor(s). Photos etc:
The photographs show only certain parts of the property as they
appeared at the time they were taken. Areas, measurements
and distances given are approximate only. Regulations etc: Any
reference to alterations to, or use of, any part of the property
does not mean that any necessary planning, building regulations
or other consent has been obtained. A buyer or lessee must find
out by inspection or in other ways that these matters have been
properly dealt with and that all information is correct. VAT: The
VAT position relating to the property may change without notice.
Knight Frank LLP is a limited liability partnership registered in
England with registered number OC305934. Our registered office
is 55 Baker Street, London W1U 8AN, where you may look at a list
of members’ names. September 2018.
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