Investment Opportunity In North West London
Chipotle West End Lane West Hampstead
US parent Company Acting as Guarantor
THE OPPORTUNITY
- The property is held freehold and is currently subject to a 10 year lease to Chipotle from January 2022 with a rental income of £97,500 pa, with The US parent Company are acting as Guarantor. There is an upwards only rent review on every 5th anniversary of the Contractual Term.
- There are five apartments on the upper floors which have been sold off on long leases at a peppercorn ground rent.
- We have been instructed to seek offers of £1.5m (One million five hundred thousand pounds), subject to contract.
- A purchase at this level reflects a 1% NIY.
- Located within the affluent North West London area of West Hampstead. The property extends to 360 sq m (3,830 sq ft) NIA (ground and basement). The uppers have been sold off.
LOCATION
208 West End Lane is located in the heart of West Hampstead in the London Borough of Camden, Northwest London. The property occupies a prominent corner plot with a frontage onto West End Lane and Fawley Road. The subject property is well positioned in regards to public transport; it’s approximately 0.1 miles from West Hampstead Station, providing over-ground railway services and 0.3 miles from West Hampstead Underground station, served by the Jubilee Line.
West Hampstead is a predominately residential area; a large number of the Victorian terraces on either side of West End Lane have been converted into two or three flats. In the immediate vicinity of the property there are a variety of shops, cafe-restaurants and bars. The property is also within walking distance of Kilburn High Street which has a greater commercial offering.
The London Borough of Camden is home to the second highest number of businesses in London, after Westminster, specialising in highly skilled, high value parts of the economy such as law, management consultancy and advertising. Geographically, 17% of Camden’s jobs are located in north- western employment sites including Hampstead, Kentish Town and Swiss Cottage.
COVENANT
Chipotle Mexican Grill UK Limited (Co. No. 06708087) has reported the following figures:
The company’s financial results were adversely affected by the Covid-19 pandemic with all of its restaurants forced to close for several months in 2020. The US parent company, Chipotle Mexican Grill Inc. pledged continued financial support to Chipotle Mexican Grill UK Limited through the pandemic and beyond.
Chipotle Mexican Grill develops and operates fast-casual restaurants which serve a focused menu of burritos, tacos, burrito bowls and salads. When the first restaurant opened in Denver, Colorado in 1993, the idea was simple; show that food served fast did not have to be a typical “fast-food” experience. Using high-quality real ingredients, classic cooking techniques, and distinctive interior design, the company brought features from the realm of fine dining to the world of quick-service restaurants. There are currently has 17 restaurants across the UK with 15 in London.
Chipotle had over 3,000 restaurants as of 30th June 2022, in the United States, Canada, the United Kingdom, France and Germany and is the only restaurant company of its size that owns and operates all its restaurants. Chipotle trades on the New York Stock Exchange and is ranked on the Fortune 500, recognized on the 2022 list for Fortune’s Most Admired Companies. With over 100,000 employees, Chipotle is an innovator and leader in the food industry, committed to making its food more accessible to everyone while continuing to be a brand with a demonstrated purpose as it leads the way in digital, technology and sustainable business practices.
For the year ending 31st December 2021 Chipotle Mexican Grill Inc reported a Revenue of $7.55 billion, Net Income of $652.98 million and Pre-Tax Income of $812.76 million. On 26th July 2022 the company announced its second quarter 2022 results and said the total revenue increased 17.0% to $2.2 billion.
FURTHER INFORMATION
Planning
The property is situated in the London Borough of Camden.
EPC
A copy of the EPC is available on request.
Proposal
We have been instructed to seek offers of £1.5m (One million five hundred thousand pounds), subject to contract. A purchase at this level reflects a 6.1% NIY.
For further information, please contact
Craig Van Straten
Tel: 07763 928 238
Email: craigvanstraten@johndwood.com
Jacob Haftel
Tel: 07864789306
Email: jacobhaftel@johndwood.com
George Cracknell
Tel: 07384 897647
Email: georgecracknell@johndwood.com
