Springer Nicolas
The Grange and Premier Inn Hotel, 100 High Street, Southgate, London N14 6BN
Office/Hotel Investment Opportunity with Development Potential- Prominent 1.77 acre site situated on the east side of High Street, directly opposite Southgate underground station and bus station.
- Southgate is an affluent London suburb approximately 10 miles north of Central London.
- The Grange comprises an attractive office building, partly refurbished in 2019, providing 61,088 sq ft (5,675.3 sq m) of office accommodation arranged over ground and five upper floors with 154 on-site car parking spaces.
- The Premier Inn hotel comprises 90 bedrooms and a licensed bar and a restaurant arranged over ground and five upper floors totalling 37,657 sq ft (3,498.4 sq m) with 43 on-site demised car parking spaces.
- The Grange is multi let to six office tenants with a total topped-up current rental income of £1,343,043 per annum which equates to an average passing rent of £21.99 per sq ft.
- The hotel is let to Premier Inn Hotels Limited, guaranteed by Whitbread Group Plc with 13.9 years term certain, subject to five yearly upwards only rent reviews to CPI with an annual collar of 0% and cap of 4%. The current rent is £596,813 per annum which equates to £6,631 per room.
- Total current rent of the property is £1,939,856 per annum.
- Wide ranging asset management initiatives including conversion to residential and building additional floors, subject to planning.
- Freehold.
- The vendor is seeking offers in excess of £22,500,000 (Twenty-Two Million, Five Hundred Thousand Pounds) subject to contract and exclusive of VAT, which reflects a net initial yield of 10.2% on The Grange, a net initial yield of 5.5% on the Premier Inn Hotel and a low capital value of £228 per sq ft, after allowing for purchaser’s costs of 6.8%.
