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Asset Management
The next upwards only rent review on the commercial element is effective in October 2026 and offers an opportunity for a purchaser to achieve a rental uplift at the rent review.
Accommodation
The property has been measured by BKR Floor Plans and provides the following net initial floor areas:
| Net Frontage | 15’6” | 4.72m |
| Gross Frontage | 18’ | 5.47m |
| Ground Floor | 818 sq ft | 75.99 sq m |
| Basement | 456 sq ft | 42.36 sq m |
| Total Commercial | 1,274 sq ft | 118.35 sq m |
| Total GIA | 1,752 sq ft | 162.76 sq m |
A set of floor plans is available to download and the measured survey report will be re-addressed to a purchaser at a cost of £540 + VAT.
Tenure
999-year long leasehold, from 25th October 2019, at a peppercorn rent.
Tenancy
The property is let to Dynasty Investments Limited (t/a German Doner Kebab) on a full repairing and insuring lease for a term of 15 years from 12th July 2018, expiring 11th July 2033. The passing rent is £45,000 per annum. The lease benefits from 4 yearly upwards only rent reviews to open market value.
Therefore, there are in excess of 10 years unexpired with no break clauses.
The lease originally provided the tenant with a right to break the lease on July 2022 and July 2026, however, following successful trading, the tenant agreed to remove the break clauses in exchange for 3.5 months’ rent free, demonstrating their commitment to this location.
The next upwards only rent review is effective 12th July 2026 and offers the purchaser an opportunity to increase the rent.
A rent deposit of £10,000 is held by the vendor and will be passed on to the purchaser.
Covenant
German Doner Kebab is a gourmet kebab business operating from restaurants across the UK, USA, UAE, Sweden, Canada, Ireland and Saudi Arabia.
There are over 130 restaurants in England with over 35 being in London.
The company has spent the last 30 years refining its recipes and processes and is now a well-known brand around the world. This gourmet kebab concept offers a unique experience with the best ingredients and appeals to a broad market of consumers.
German Doner Kebab sell a wide range of gourmet kebabs, sandwiches, salads and meal boxes. They also sell a range of sides, drinks and desserts.
Sales are channelled mainly through in store dining, in store takeaway, click and collect, Uber Eats, Deliveroo and Just Eat.
According to TripAdvisor, German Doner Kebab was crowned as the number one place to eat in London, 2019.
Dynasty Investments Limited are a franchisee and reported Fixed Assets of £526,672 and Net Assets of £290,3000 in their April 2022 accounts. The tenant has been successfully trading from this location since 2018, so much so that they agreed to remove the 2022 and 2026 break clauses in exchange for 3.5 months’ rent free.
A rent deposit of £10,000 is held by the vendor and will be passed on to the purchaser.
Hero Brands Ltd are the parent company and have reported the following figures:
| 31st December 2021 | 31st December 2020 | |
|---|---|---|
| Revenue | £34,831,966 | £20,068,679 |
| Pre-Tax Profits | £2,526,334 | £1,660,216 |
| Balance Sheet | £4,482,368 | £2,769,976 |
For further information visit www.germandonerkebab.com.
VAT
The property has been registered for VAT and it is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
Proposal
We are instructed to seek offers in excess of £615,000 (Six Hundred and Fifteen Thousand Pounds), subject to contract, reflecting a net initial yield of 7%, assuming standard purchasers’ costs of 5.09%.
The purchase price reflects just £371 per sq ft / £3,993 per sq m overall.
Please note that a purchaser will be re-charged the costs of the measured survey (£590 + VAT) and searches (£900), which are provided in the data room.
Please note that a purchaser will be charged a Transaction Fee of 0.5% of the Purchase Price plus VAT.
Investment Considerations
An opportunity to acquire a property in an affluent London borough;
Highly prominent property, set back from the main road;
Revenue of tenant’s parent company in excess of £34m;
Over 10 years unexpired lease term with no breaks;
Break clauses removed, demonstrating the tenant’s commitment to the property;
Upwards only rent reviews every 4 years on the commercial element;
£10,000 rent deposit to be passed on to a purchaser;
Opportunity to increase the rent at the next rent review in July 2026;
Opportunity to acquire a property let to an established and growing brand;
Attractive lot size to an investor;
Attractive yield for a London asset.
