WOODFORD GREEN TRAVELODGE - 735 CHIGWELL ROAD, IG8 8AS - Allsop
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TRAVELODGE
WOODFORD GREEN
735 CHIGWELL ROAD, IG8 8AS
LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP
WOODFORD GREEN
TRAVELODGE, 735 CHIGWELL ROAD, IG8 8AS
INVESTMENT CONSIDERATIONS PROPOSAL
■ Attractive purpose-built hotel providing ■ Contracted rent of £233,794 per annum Offers sought in excess of £3,660,000 (Three Million Six Hundred and Sixty Thousand
34 rooms totaling 11,260 sq ft (GIA) Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a
■ Lease subject to 5 yearly uncapped rent
■ 15 minute walk from Chigwell reviews, with RPI indexation Net Initial Yield of 6.00% assuming standard purchaser’s costs and a low capital rate
Underground Station, providing of only £325 psf.
■ Excellent potential to provide an
Central Line Services
alternative residential focused use, Yield profile assumes 2.5% uplifts per annum
■ 1.3 miles from Junction 4 of the M11 Motorway subject to vacant possession and
providing direct access to the M25 Motorway, necessary consents Review Date Running Yield
Bishops Stortford and Cambridge
■ Residential studio rents in the area 2025 6.79%
■ Let to Travelodge Hotels Limited on an FRI achieving £800 pcm (£9,600 p.a.) which
lease expiring 09/08/2035, thus having potentially could provide a total income 2030 7.68%
14.4 years unexpired for the property of £326,400 per annum 2035 8.69%
■ Landlord option to require the tenant assuming they were let on this basis
to enter into a reversionary lease of ■ Residential sales are achieving £500 psf
5 years, 11 months and 7 days from in the area DATAROOM
10/08/2035 which if exercised provides For access to the Allsop Marketing Data Room, please use the following link:
a term of 20.3years unexpired ■ Leasehold. 225 years from 10/08/2010,
providing an unexpired term of 214 years https://datarooms.allsop.co.uk/register/travelwoodfoodgreen
at a ground rent of £10 per annum.
LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP
A505 Stevenage
Dunstable Stanste
Luton
A418 LUTON
A5 A10
A1(M) A602
A44 M1
A34 Aylesbury
WOODFORD GREEN Harpenden
Hertford
A40 TRAVELODGE, 735 CHIGWELL ROAD, IG8 8AS
A414 M11
A41 Hemel Harlow
OXFORD Hatfield
Hempstead St Albans
A4142 Thame
M10 A414
A420 J21
A404 Chesham Epping Chipping
A4010 J20
J23 Ongar
J25
J19 M25 J27
High Borehamwood Buckhurst Hill
M25 Watford A1 Enfield
Wycombe A355
M1 WOODFORD Chigwell
Beaconsfield
GREEN
A413 Harefield J28
M40 Walthamstow
A404 J2
Snaresbrook A12
Marlow Ruislip J29
J16 Hampstead A10 Romford
Ilford
LONDON
Wembley
Hurley Maidenhead Uxbridge A40
A34
SLOUGH A13 M25 D
A404(M) Southall London
Eton J15
M4 City
Windsor Hounslow A2
READING Heathrow Clapham
M4 Dartford
A329(M) Egham Ashford
Bracknall Kingston J2
A20
Upon Thames
LOCATION Ascot J12 A23
Bromley
M3 J3
Woodford Green is a busy and affluent A322
Woodford Green is surrounded by Chingford (approximately 1 mile), Buckhurst Hill (approximately 1 mile), Loughton (approximately
Croydon
Walton-on-Thames
residential area. The town is strategically 2 miles) and Chigwell (approximately 2 miles) The area is famed for being part of Essex’s’A232 A21
Golden Triangle with many Premiership
footballers living in the area and Tottenham Hotspur’s training facilities situated in the immediate
Sutton vicinity. M25 M20
located between London (approximately Sandhurst M25
Epsom
Woodford has excellent road communications being situated at the bottom of the M 11 Motorway, where it meets the A 406 North
12 miles to the south west) and Chelmsford Circular Road. Woodford Green and Chigwell
J10
A217 on the Central Line and provides direct access
WokingUnderground Stations are both situated
A339 Biggin Hill
(approximately 18 miles to the north east). to Liverpool Street Station in approximately 20 mins and the West EndJ9of London in approximately
A2232 mins. All of London’s airports M26
J5
M3easily reached via the M11 and M25 London Orbital.
are
BASINGSTOKE Fleet M25
A331 A3
J8 J7 J6
A34 Oxted
Aldershot Reigate
GUILDFORD Dorking Redhill
Famham A21
A24
ROAD Godalming
RAIL (from Chigwell Underground Station) AIR
M23 To
A303
Horley
M11 1.3 mile Bank Station 33 mins Luton Airport 39 milesRoyal
Gatwick Tunbridge
Alton Witley
M25 12 miles Holborn Station
Cranleigh 38 mins Heathrow Airport 30 miles Wells
A31 A406 6.8 miles City Thameslink Crawley
44 mins London City 9 miles
Three Bridges
A12 8 miles St Pancras International 51A264
mins Stansted Airport 28 miles
Horsham
LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP
A23 Haywards
Heath
WOODFORD GREEN
TRAVELODGE, 735 CHIGWELL ROAD, IG8 8AS
WEST HATCH D
OA
HIGH SCHOOL HR
HIG
FOR
EST LANE
11
M
ST JOHN’S ROMAN
CATHOLIC SCHOOL
ASHTON PLAYING
FIELDS
113
DA
NEW FOREST LANE
OA
LR
EL
GW
HI
3
B17
C
AD
R RO
NO
SPORTS MA
TO
MS
GROUND WO
OD
RO
AD
ROAD
WELL
CHIG
N
NE
ING LA
SPORTS
FACILITY
SITUATION DESCRIPTION
D
RO
The property is strategically situated The property is of traditional construction clad externally with brickwork under a pitched tiled
adjacent to Chigwell Golf Club on the roof It is arranged over ground and first floors providing a total of 34 en suite bedrooms.
A 113 which links the North Circular The hotel benefits from shared car parking with the adjoining public house.
Road with Junction 4 of the M 11
Motorway The surrounding area is TENURE
mainly high quality residential uses
with some light commercial use. Leasehold 225 years from 10/08/2010 providing an unexpired term of 214 years at £10 per annum.
© Crown Copyright, ES 100004106. For identification purposes only.
ACCOMMODATION & TENANCY SCHEDULE
Tenant Floor Area GIA Area GIA No. of Rooms Lease Start Rent Review Lease Expiry Passing Rent £ pa Comments
(sq ft) (sq m)
Travelodge Hotels Limited Ground 5,734 532.71 34 10/08/2010 10/08/2030 09/08/2035 £233,794 5 yearly uncapped rent reviews,
First 5,526 513.38 (14.4 years unexpired) with RPI indexation
Total 11,260 1,046.09 £233,794
*There is an option for the landlord to require the tenant to enter into a reversionary lease of 5 years, 11 months and 7 days from 10/10/2035 which if exercised provides 20.3 years unexpired.
Subject Property Demise –––––––
Mitchells & Butlers Demise (excluded from sale) ––––––––
LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STPWOODFORD GREEN
TRAVELODGE, 735 CHIGWELL ROAD, IG8 8AS
COVENANT KEY STATISTICS (FY 2019)
588 44,832 80.6%
Hotels Rooms Occupancy
KEY HIGHLIGHTS
Travelodge Hotels Limited
• UK’s second largest hotel brand based on
number of hotels and rooms
• Positioned in the attractive value segment
£51.82 £41.75 £727.9m
with 588 hotels and serving 19m business ADR RevPAR Revenue
and leisure customers
• Well invested modernised hotel portfolio
• Well balanced approximately even
business / leisure customer split
• Almost 90% booking direct, with c. 80%
£337.8m £129.1m
£129.1m 1.6x
through own websites EBITDAR EBITDA Rent Cover
EBITDA
• Low upfront capex leasehold model
2020 TRAVELODGE CVA TRAVELODGE UK HOTEL DISTRIBUTION (AS OF MARCH 2020)
On 19/06/2020, Travelodge creditors voted to
approve a Company Voluntary Arrangement (CVA)
UNITED KINGDOM INTERNATIONAL
to restructure leases, to enable Travelodge to
navigate the short-term challenges faced as a
London Regions Spain Ireland
business as a result of the COVID-19 situation. • 76 hotels • 498 hotels • 5 hotels • 11 hotels
06/11/2020 Travelodge has confirmed that its share- • 9,802 rooms • 33,756 rooms • 621 rooms • 858 rooms
holders will go ahead with the £30m equity contribution. • 22% of total rooms • 75% of total rooms • 1% of total rooms • 2% of total rooms
LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STPWOODFORD GREEN
TRAVELODGE, 735 CHIGWELL ROAD, IG8 8AS
FLOORPLANS
GF
FF
Subject Property Demise ––––––––
LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STPWOODFORD GREEN
TRAVELODGE, 735 CHIGWELL ROAD, IG8 8AS
A505 Stevenage
Dunstable Stansted
FASTEST LONDON
A418 LUTON
Luton A120
RESIDENTIAL SALES MARKET
A10
TRAVEL TIMES A5
A602
M1 A1(M) Situated in East London, Redbridge is one
A131
WalthamstowAylesbury
18 minutes A130
of London’s greenest boroughs with 40% of its
Harpenden
Ilford 18 minutes Hertford land devoted to open spaces. Ambitious plans
A414 M11 are underway to redevelop Redbridge’s main
Snaresbrook 26 minutes A41 Harlow A12
Hemel
St Albans Hatfield town and administrative centre; Ilford, driven by
Woodford
Thame 31 minutes Hempstead
M10 A414 Chelmsford A138 the arrival of three new Elizabeth Line stations.
Dagenham 32 minutes
J21 A414
Buckhurst HillA4010 34 minutes
A404 Chesham J20 Epping Chipping
Average
J23 Ongar
Chigwell 42 minutes J19 J25
M25 J27 Flat Price
High
Wycombe A355
M25 Watford
Borehamwood
A1 Enfield
Buckhurst Hill
£350,000 (£500 psf)
M1 WOODFORD Chigwell A130
Beaconsfield Billericay
GREEN House price growth
A413 Harefield J28 Wickford
M40
A404 J2 Walthamstow over last five years
Snaresbrook A12 A127
Marlow J16
Ruislip
Hampstead A10 Ilford
Romford
J29 Basildon
41%
LONDON
Wembley
Hurley Maidenhead Uxbridge A40 Southend-on-Sea
SLOUGH Canvey Average price growth
A13 M25 Dagenham
A404(M) Southall London Island 5-year forecast
Eton
17%
J15 City
M4
Windsor Hounslow A2
READING Heathrow Clapham
M4 Dartford
A329(M) Ashford Gravesend
For Comparative Purposes Only. Sheerness
Egham Kingston
Bracknall A20 J2
Upon Thames
Ascot Bromley
J12 A23
FUTURE DEVELOPMENT
A322 WOODFORD
M3
GREEN RESIDENTIALCroydon
J3
RESIDENTIAL Rochester
LETTING MARKET
Gillingham
Walton-on-Thames
POTENTIAL MARKET OVERVIEW A232 A21
M25 Woodford
M2
M20 Green is a popular commuting destination
Sandhurst M25 Sutton EXISTING RENTAL ASSETS ON THE
Epsom Sittingbourne
Strong residual value with excellent The property sits in Redbridge, a primarily residential borough, with excellent access to the M11, The North Circular
Snodland MARKET ARE COMMANDING RENTAL
J10
future redevelopment potential. inWoking
North East London.
A217
Biggin Hill Road and Central Line Underground services. Existing LEVELS WITHIN THE REGION OF:
A22 M26comprises a goodM20
The propertyM3 comprises a purpose J9 J5 stock mix of house and apartment
The borough benefits from excellent Central London transport links
BASINGSTOKE Fleet within
built hotel investment A331 M25 buildings, albeit of dated build with relatively limited
including
A3 the Central Line and TfL Rail, which J7
will improve further Maidstone
an established residential area
J8 J6
Oxted new build accommodation due to consistent land
Aldershot with the introduction of Crossrail.Reigate A26 in recent decades. Studios One Beds
directly neighboring the Three Jolly GUILDFORD supply shortages
Dorking Redhill £800 pcm
The borough benefits from the 4th highest projected percentage £1,000 pcm
Wheelers Pub. Famham Due
A21 to location outside of the North Circular Road,
increase in population, amongst
A24 English Local Authorities. Two Beds
M23 Woodford Tonbridge
Green has historically traded at a discount
Given the nature of construction Godalming £1,350 pcm
The borough also recently recorded the 2nd largest average
Horley to more London Paddock
centric urban conurbations. Following
and already highly efficient internal Royal Wood Staplehurst
household size amongst English Local
Gatwick Authorities (2014). improvements to transport links in recent years,
Tunbridge
layout,
Altonthe property would lend Witley
Cranleigh Wells
itself to alternative uses, including Redbridge Local Authority has consistently under-delivered against this gap continues to narrow and the location is
A229
A31 its housing targets since 2007/08.Crawley
residential, subject to necessary Three Bridges increasingly popular with commuters given close
consents. A264annum with a limited current
The current target is 1,123 homes per proximity to Central Line services. The potential exists
supply of developmentHorsham
sites. to benefit from increasing rental values through the
delivery of a high quality rental product, of which, is
The Local Planning Authority has implemented a strategy of proactive
currently in short supply within the locality.
engagement with developers and land owner engagement.
A23 Haywards
Heath
LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STPEPC
The property has an EPC rating of C(63).
VAT
The property is elected for VAT and it is anticipated that the transaction
will be treated as transfer of a going concern (TOGC).
ANTI-MONEY-LAUNDERING
A successful bidder will be required to provide information to satisfy the AML
requirements when Head of Terms are agreed.
DATAROOM
For access to the Allsop Marketing Data Room please use the following link:
https://datarooms.allsop.co.uk/register/travelwoodfoodgreen
PROPOSAL
Offers sought in excess of £3,660,000 (Three Million Six Hundred
and Sixty Thousand Pounds) subject to contract and exclusive of VAT.
A purchase at this level reflects a Net Initial Yield of 6.00% assuming
standard purchaser’s costs and a low capital rate of only £325 psf.
Yield profile assumes 2.5% uplifts per annum
Review Date Running Yield
2025 6.79%
2030 7.68%
2035 8.69%
For further information or to make arrangements for viewing please contact:
National Investment
Lottie Hayward Andrew Wise
07817 549 237 07535 045 149
lottie.hayward@allsop.co.uk andrew.wise@allsop.co.uk
allsop.co.uk
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars
as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to
the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant.
2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order;
(d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 03.21You can also read
