Attractive Leisure/Restaurant South East Investment Opportunity
65-71 Goldsworth Road | Woking | Surrey | GU21 6LJ
subject to contract
Affluent South East town
Ten years unexpired to Pizza Express
Prominent site with large surface car park offering medium term development potential
Offers in the region of £1,250,000, subject to contract
7.5% Net Initial Yield
Woking is an affluent South East town in Surrey which forms part of the London commuter belt. It is approximately 48 km (30 miles) south-west of Central London, 39 km (24 miles) south-east of Reading and 10 km (6 miles) north of Guildford.
Woking benefits from extensive transport communications and is approximately 8 km (5 miles) south-west of Junction 11 of the M25 Motorway. Junction 3 of the M3 Motorway is some 11 km (7 miles) to the north-west. The town is also served by the A3 which is approximately 6.4 km (4 miles) to the south.
Heathrow Airport is situated approximately 22 km (14 miles) to the North and Gatwick Airport 48 km (30 miles) to the south-east. There is a direct, mainline rail service to London Waterloo plus fast, regular services to the south coast and the South West. Trains depart for the capital every few minutes, throughout the day, and the journey takes 25 minutes.
Woking is a dynamic growth town, ranked in the top 20% of UK local authorities for economic vibrancy. Over the last decade, Woking’s population has grown by 9% (NOMIS) with 56.1% of those working in the town in managerial, professional and technical occupations; 11% above the British average. Moreover, 45.7% of the population is qualified to NVQ Level 4 and above; 8.6% above the British average. Several global names have invested in their operations in the town, including McLaren, Asahi, Petrofac, Cap Gemini, WWF-UK and Mustang Engineering. Woking has one of the largest concentrations of knowledge sector businesses in the UK (Source: Woking Works).
The subject property occupies a prominent position on the corner of Goldsworth Road and Oaks Road. Woking Train Station and Woking Shopping Centre are both less than 0.8 km (0.5 miles) away.
Nearby occupiers close by include Zizzi (opposite), Kwik Fit.
Victoria Square Development
The subject property is within 300 metres of the Victoria Square development which is on track for phased completion in 2020. Sir Robert McAlpine is spearheading the £500 million pound transformation, which is a joint venture between Woking Borough Council and Moyallen Group.
At 34 and 32 storeys high, the two residential towers will feature over 400 high specification apartments which will benefit from full concierge facilities, an external garden, and an amenity space for residents.
The 23 storey third tower will be home to a 189 room flagship Hilton Hotel which will include senior and junior suites, a new lobby bar, all-day dining restaurant, sky bar, conference facilities and an on-site café.
The new development will be anchored by 11,612 sq m (125,000 sq ft) of commercial space featuring a new Marks & Spencer food and clothing store across 4,645 sq m (50,000 sq ft), multi-storey car park, a medical centre and two public plazas.
In addition to the new car park, sited under the M&S and retail units, the project has also incorporated the demolition and redevelopment of the Shoppers’ Red car park. When combined, the rebuilt 1,382 space Shoppers’ Red car park and the new M&S car park, will provide an additional 740 car parking bays for Woking town centre. (Source: Woking.gov.uk)
The property comprises a prominent terrace, of restaurant, bar and residential accommodation, arranged over ground and two upper floors, occupying a prominent corner position.
The ground floor comprises a Pizza Express restaurant at 65-67 Goldsworth Road and “Archee’s” bar at 69-71 Goldsworth Road.
The upper floors provide five self-contained residential flats accessed from the rear of the property. Three have been sold off on long leases (but these are within the lease of the entire property to Pizza Express).
Furthermore, the property benefits from a large surface car park at the rear.
The property has been measured by BKR Floor Plans and provides the following Net Internal Areas:
|No 65 – 67|
|Gross Frontage||48 ft 1 inch||14.65 m|
|Net Frontage||44ft 6 inches||13.56 m|
|Gross Frontage||40ft 9 inches||12.42 m|
|Net Frontage||37 ft 11 inches||11.56 m|
|No 65 – 67: Ground Floor|
|Zone A||638 sq ft||59.27 sq m|
|Zone B||846 sq ft||78.59 sq m|
|Zone C||435 sq ft||40.41 sq m|
|Remainder||7 sq ft||0.65 sq m|
|Total Net Internal Area||1,926 sq ft||178.93 sq m|
|Total Gross Internal Area||2,257 sq ft||209.68 sq m|
|No 65b: First Floor|
|Gross Internal Area||576 sq ft||53.51 sq m|
|No 65a: Second Floor|
|Gross Internal Area||304 sq ft||28.24 sq m|
|No 69 - 71: Ground Floor|
|Zone A||758 sq ft||70.42 sq m|
|Zone B||518 sq ft||48.12 sq m|
|Zone C||414 sq ft||38.46 sq m|
|Total Gross Internal Area||5,278 sq ft||490.33 sq m|
A set of floor plans is available to download and the measured survey report will be assigned to a purchaser at a cost of £550 + VAT.
With the exception of Number 67 Goldsworth Road, the entire property is held freehold.
Number 67 Goldsworth Road is held on a 200 year leasehold from 1st March 1991 at a fixed rent of £16,000 per annum.
The entire accommodation, including the residential upper floors, is let on full repairing and insuring terms to Pizza Express Limited (Co. no 01404552) for a term of 25 years from 30th June 2004 expiring 29th June 2029. The current passing rent is £115,207.61 per annum with the lease providing for five yearly upward only rent reviews.
Hence, the total investment gross income for a purchaser will be £115,207.61 per annum and the net income £99,207.61 per annum.
The ground floor accommodation at 65/67 Goldsworth Road has been sublet to Pizza Express Restaurants Limited under a sublease dated 21 December 1994 between S Long and K Chapman (1) Pizza Express (Soho ) Limited ( company no. 00646528 ) (2) for a term expiring on 28 September 2019. This sublease is now vested in Pizza Express (Restaurants) Limited (company no. 02805490 )
The ground floor accommodation at 69/71 Goldsworth Road has been sub-let by Pizza Express Limited to Archees Bar & Restaurant Limited (Co. no. 04286065) from 4th January 2017 to 14th June 2029 at a rent of £32,000 per annum, subject to rent reviews on 30th June 2019 and 30th June 2024.
The residential accommodation at numbers 65a and 65b Goldsworth Road, which is let to Pizza Express, has a subtenant (AST) in respect of No 65a paying £725 per month. We are advised that Flat 65b is vacant.
Summary of Tenure, Tenancy and Occupation
|Ownership||Ground Floor||First Floor (Flat a)||Second Floor (Flat b)|
|Occupation||Ground Floor||First Floor (Flat a)||Second Floor (Flat b)|
|No 65||Pizza Express||Individual||Individual|
|No 67||Pizza Express||sold off||sold off|
|No 69||Archees||sold off||sold off|
|No 71||Archees||sold off||sold off|
|Letting||Ground Floor||First Floor (Flat a)||Second Floor (Flat b)|
|No 65||Pizza Express||Pizza Express||Pizza Express|
|No 67||Pizza Express||Pizza Express||Pizza Express|
|No 69||Pizza Express||Pizza Express||Pizza Express|
|No 71||Pizza Express||Pizza Express||Pizza Express|
|Sub-Letting||Ground Floor||First Floor (Flat a)||Second Floor (Flat b)|
|No 67||N/A||sold off||sold off|
|No 69||Archees||sold off||sold off|
|No 71||Archees||sold off||sold off|
Pizza Express opened its first restaurant in London on Wardour Street in 1965. The company floated on the London Stock Exchange in 1993, become private again in 2003, before re-floating in 2005. The company was acquired in 2007 by private equity group Cinven and more recently acquired in 2014 by Hony Capital at a figure reported of £900m. It is reported that the company has 470 restaurants across the United Kingdom with a further 100 overseas.
For the year ending 31st December 2017, Pizza Express (Restaurants) Limited (Co. no 02805490) reported a pre-tax profit of £68.473m on turnover of £396.559m, with a balance sheet of £713.637m.
For the year ending 31st December 2017, Pizza Express Limited (Co. no 01404552) reported a pre-tax loss of -£4.519m. The accounts report that the loss is based upon the disposal of Firezza Holdings including a write off of intercompany balances and costs which amounted to -£11.295m. In the meantime, the balance sheet is reported at £106.198m.
For further information see www.pizzaexpress.com
Archees Bar & Restaurant Limited (Co. no. 04286065) has reported for the year ending 30th November 2017 shareholder’s funds of -£13,161.
The property is elected for VAT. We anticipate that the sale should be capable of being treated as a Transfer of Going Concern (TOGC).
We are instructed to seek offers in the region of £1,250,000 (One million, Two hundred and Fifty Thousand Pounds), subject to contract, reflecting a net initial yield of 7.50%, assuming standard purchaser’s costs of 5.96%.
Please note that a purchaser will be re-charged the costs of searches and surveys which are provided in the data room.
Please note that a purchaser will be charged a Transaction Fee of £5,000 plus VAT.
An opportunity to purchase an investment in an affluent South East town
Ten years unexpired lease term to Pizza Express
Prominent site with a large surface car park offering medium term development potential
There is an opportunity to obtain vacant possession of the two residential flats above Number 65 Goldsworth Road at lease expiry. We suggest that the potential value of these flats is in the region of £400-500,000
£1,250,000, subject to contract
7.50% Net Initial Yield
Data Room and clicktopurchase®
Access to the data room and for the ability to purchase online, please see the clicktopurchase® “C” icon or side bar.