central london - Buchanan Bond Exchange

Well Secured South East Office Investment
Flair Leisure Products plc
Anne Boleyn House, 9-13 Ewell Road, Cheam, SM3 8BZ
INVESTMENT SUMMARY
Attractive UK headquarter office building totalling 17,023 sq ft
(1,581.5 sq m).
Strategically located in the centre of Cheam 1.2 miles west of Sutton,
3.6 miles east of Epsom and 15.3 miles south of London’s West End.
Freehold.
New 10 year lease to Flair Leisure Products plc (D&B 2A1) on
internal repairing and insuring terms from 7th June 2011, expiring
6th June 2021, and subject to open market rent reviews in year 5.
Part of the accommodation is subject to a tenant only break option
on the 7th June 2016.
Average weighted unexpired term of 6.5 years to break and 9.5 years
to lease expiry.
Current rent is £202,164 per annum reflecting a low average rent
of £11.88 per sq ft (£127.83 per sq m) overall, providing good
prospects for future rental growth.
Car parking for 38 cars providing an excellent in-town ratio of 1:448 sq ft.
Recently refurbished by the tenant to a high specification.
Most recent accounts dated 30th June 2010 show a sales turnover
of £48.9m, pre-tax profit of £3.98m and net worth of £5.79m.
Potential future asset management initiatives to include retail/
convenience store use to the ground floor, residential conversion to
the upper parts and redevelopment of the car parking areas, all
subject to the necessary planning consents.
We are seeking offers in excess of £2,300,000 (Two Million, Three
Hundred Thousand Pounds), subject to contract and exclusive of
VAT.
A purchase at this level reflects a Net Initial Yield of 8.30%,
assuming normal purchaser’s costs of 5.80%, and a low capital
value rate of £135 per sq ft (£1,454 per sq m).

LOCATION
Cheam is strategically located close to the boundary of Greater London and Surrey,
falling within the M25 motorway, approximately 1.2 miles (1.9 km) west of Sutton, 3.6
miles (5.8 km) east of Epsom and 15.3 miles (24.6 km) south of London’s West End.
Cheam benefits from excellent road communications. Anne Boleyn House lies on
Ewell Road (A232) just off the A217, which leads directly to Junctions 8 and 9 of the
M25 motorway located approximately 6.5 miles (10.5 km) and 8 miles (12.9 km) away
respectively. The A3 is within 3.75 miles (6 km) providing the main arterial route into
London and the South West corridor.
National railway services are provided from Cheam railway station which is on the
London, Brighton and South Coast railway line with a fastest journey time to London
Victoria and London Bridge of approximately 35 minutes.
SITUATION
The subject property is situated just off Cheam High Street ideally positioned to benefit
from a range of amenities from local and national retailers to include, Sainsbury’s Local,
Little Waitrose, Pizza Express, a number of banks, WH Smith and Boots and The Harrow
Inn.
THE AVENUE
W
WOOD
HOLM
Cheam
Park
Nonsuch
High School
for Girls
CLOSE
JUBILEE ROAD
ROBERTS
CLOSE
EWELL ROAD
Cricket
Ground
CHEAM ROAD
TUDOR CLOSE
VILLIERS
GROVE
12
A3
2
TUDOR CLOSE
CHEAM PARK WAY
For Identification Purposes
EWELL ROAD
St Dunstan’s
C of E
Primary
School
QUEENS ACRE
15
4B
ANNE BOLEYN’S WALK
STAINES
M3
FROMONDES
ROAD
MALDEN ROAD
POND
HILL
GARDENS
MICKLEHA
GARDEN
M
S
PARK LANE
10
PARK LAN E
ANNE BOLEYN’S WALK
Cheam
Sports
Club
A24
War
Memorial
Whitehall
LUMLEY ROAD
CO O K ES
PARKSIDE
PEACHES CLOSE
GLEBE ROAD
UXBRIDGE
LANE
CHURCH
ROAD
KINGSWAY
ROAD
FORGE LANE
OLD BARN
CLOSE
LUMLEY
GARDENS
PARK ROAD
THE BROADWAY
M4
HEATHROW
AIRPORT
M25
STATIO N WAY
H CHURC
FARM
LANE
St Dunstan’s
Church
Cheam
Library
Cheam
Baptist
Church
MANSIONS
A3
CHEAM
LEATHERHEAD
SPRING CLOSE
LANE
LOV E LANE
PARK ROAD
CHEAM
SANDY LANE
KINGSTON
STAFFORD CLO SE
DALLAS
ROAD
HIGH STREET
GARDENS
SCOTSDALE
CLOSE
Subway
STATION
APPROACH
THE L AWNS
A24
ASHTEAD
ST DUNSTA N’S HILL
GATWICK
AIRPORT
A217
CHAMPNEYS
CLOSE
QUARRY PARK ROAD
TABOR
UPPER MULGRAVE ROAD
BURDON LANE
Seears
Park
REDHILL
SUBJECT PROPERTY
CHEAM
CENTRAL
LONDON
EPSOM
GARDENS
QUARRY R I SE
SALISBURY
AVENUE
BELMONT RISE
ARUNDEL ROAD
BURDON PARK
SUMMERVILLE
MA N OR RO AD
GREBE CO U RT
QU ARRY PARK ROAD
WHYTE MEWS
REVELL ROAD
MANOR ROAD
CECIL ROAD
ARUNDEL ROAD
Flair Leisure Products plc, Anne Boleyn House, 9-13 Ewell Road, Cheam SM3 8BZ
FAIRHOLME ROAD
CHEAM ROAD
HILLSIDE ROAD
BELMONT RIS
CARLISLE ROAD
ROSEBERY ROAD
BERESFORD ROAD
ANTROBUS
CLOSE
MULGRAVE ROAD
Sports
Glaisdale
Ground
School
For Identification Purposes For Identification Purposes
7
A22
SUTTON
A23
8 6
M23
EWELL ROAD
Stevenson
House
51.8m
22 to 27
1 to 12
Dairy Court
A205
Glencot
16
A22
CATERHAM
30
31
Linslade
22
DERRY ROAD
G REEN L ANE
CORNWALL ROAD
YORK ROAD
TATE ROAD
Sutton
Christian
Centre
Sutton
Cricket
Club
BRIDGEFIELD ROAD
YORK ROAD
SALISBURY AVENUE GROVE ROAD
15 to 25
CROYDON
Flair Leisure Products, Anne Boleyn House, Ewell Road, Cheam
Parkview
Taynton
5
A22
5
22a
Fund House
15
Mallow
20
LB
The Knoll
Car Park
A21
Parkside
Works
Anne Boleyn House
1
Club
12
10
EVESHAM
CLOSE
WORCESTER ROAD
3
A13
A2
A20
M25
SEVENOAKS
GRANGE ROA D
Y O RK ROAD
HEATHER
GARDENS
YORK ROAD
El Sub Sta
KINGSWAY ROAD
11
9
2
8
6
Bank
7
4
Cheam Court Flats
3
1
Bank
2
1 to 12
1
17
1
3
15
2
THE BROADWAY
Century House
7
M20
M26
4
TCBs
El Sub Sta
6
16
CHEAM
54.4m
26
30
30a
12
10
GP
55.6m
1
Tygan House
2
7
2
11
15
2b
19

Flair Leisure Products plc, Anne Boleyn House, 9-13 Ewell Road, Cheam SM3 8BZ

Description
Anne Boleyn House comprises a mid terrace headquarter office building
constructed in mid 1980’s. The building is of reinforced concrete frame with
a mock Tudor façade under a pitched tiled roof, to provide accommodation
totalling 17,023 sq ft (1,581.50 sq m), arranged over ground and two upper
floors.
Internally the property is arranged with a main core area to the eastern elevation
with each floor providing predominantly open plan accommodation. Internally
the building benefits from the following high quality specification:-
Fully accessible raised floors (first and second floors only)
VAV air-conditioning system
Suspended acoustic tiled ceiling with integrated Category II lighting
Floor to ceiling height of 2.56 metres
8 person passenger lift
Male & Female WC’s on each floor with a disabled WC provided in the
reception area
Externally the property benefits from car parking to the rear providing 38 spaces,
7 of which are under cover, providing an excellent in-town car parking ratio of
1:448 sq ft (1:41.8 sq m). The car parking is accessed off Anne Boleyn’s Walk.
The site area, to include the demised car park, totals 0.403 acres (0.163
hectares).
ACCOMMODATION
The property has been measured in accordance with the RICS Code of Measuring
Practice (6th Edition), and provides the following net internal areas (NIA):
Accommodation Floor Sq m Sq ft
Office/Product Storage Ground 479.8 5,165
Office/Showroom First 548.9 5,909
Office Second 552.7 5,949
TOTAL 1,581.5 17,023
TENURE
Freehold.
TENANCY
The property is let in its entirety to Flair Leisure Products plc on three seperate internal repairing and insuring leases for a term of 10 years from 7th June 2011,
expiring on 6th June 2021. The ground and second floors are subject to tenant only break clauses in year 5 with 6 months written notice and 12 months rent penalty.
The average weighted unexpired term to lease expiry is therefore approximately 9.5 years and 6.5 years to break.
The total passing rent is £202,164 per annum which reflects £11.88 per sq ft (£127.83 per sq m) on an overall basis.
The leases are on internal repairing and insuring terms. The external repairs are covered by a service charge agreement which is currently managed by Flair Leisure
Products plc being the sole occupier of the building. Should Flair Leisure Products plc vacate any of the floors the landlord will take control of the service charge
agreement.
Tenant Floor Lease Start Lease Expiry Rent Review Break Date Rent PA Rent Per Sq Ft
Flair Leisure Products plc Ground 07/06/2011 06/06/2021 07/06/2016 07/06/2016 £36,155 £7.00
Flair Leisure Products plc First 07/06/2011 06/06/2021 07/06/2016 n/a £82,726 £14.00
Flair Leisure Products plc Second 07/06/2011 06/06/2021 07/06/2016 07/06/2016 £83,286 £14.00
TOTAL £202,164 £11.86
Flair Leisure Products plc, Anne Boleyn House, 9-13 Ewell Road, Cheam SM3 8BZ

COVENANT INFORMATION
Flair Leisure Products plc
Flair Leisure Products plc is a British distributor for
children’s toys. Flair’s core business is concentrated on
heritage brands, art & craft and boys toys. Brands include
household names such as Sylvanian Families, Gormiti, Plasticine, Shaker Maker
are all found within the company portfolio.
Flair Leisure Products plc have a D&B Rating of 2A1, reflecting a ‘minimum’
risk of business failure.
The last three years of reported accounts for Flair Leisure Products plc are as
follows:
30/06/2010
£000’s
30/06/2009
£000’s
30/06/2008
£000’s
Sales Turnover 48,948 30,742 29,554
Profit/(Loss) Before Taxes 3,984 (276) 327
Net Worth 5,799 2,764 3,082
Flair Leisure Products plc is part of the Giochi Prezios Group.
Giochi Prezios Group is as a toy wholesaler, distributing the production of toys
across foreign markets. The Giochi Prezios Group has associated offices in Italy,
Greece, France, Spain and Germany.
During the fiscal year 2008-2009, the Group posted €865.3 million consolidated
net revenues (+12.2% on previous year), with an EBITDA of €100.2 million
(+6.1%) and a net operating result (EBIT) of €41.1 million.
For more information please visit www.flairplc.co.uk
Flair Leisure Products plc, Anne Boleyn House, 9-13 Ewell Road, Cheam SM3 8BZ

Flair Leisure Products plc, Anne Boleyn House, 9-13 Ewell Road, Cheam SM3 8BZ

VAT
The property is elected for VAT and it is intended that the transaction will be
treated as a TOGC.
PROPOSAL
We are seeking offers in excess of £2,300,000 (Two Million, Three
Hundred Thousand Pounds), subject to contract and exclusive of VAT.
A purchase at this level reflects a Net Initial Yield of 8.30%, assuming
normal purchaser’s costs of 5.80%, and a low capital value rate of £135
per sq ft (£1,454 per sq m).
Further Information
Should you require further information or wish to view the property please
contact either:-
STEVEN POLLACK WILLIAM IKIN
T: 0207 499 7666 T: 020 7297 5285
M: 07530 424 019 M: 07775 728772
E: steven@buchananbond.com E: william@buchananbond.com
Heathcote House,
20 Savile Row,
London W1S 3PR
www.buchananbond.com
Misrepresentation Act 1967 & Declaration
Buchanan Bond Real Estate Ltd, for themselves and for the vendors of this property whose agents they are,
give notice that:
i) The particulars are set out as a general outline only for the guidance of intending purchasers, and do not
constitute, nor constitute part of, an offer or contract.
ii) All descriptions, dimensions, references to condition and necessary permission for use and occupation
and other details are given in good faith and are believed to be correct, but any intending purchasers
should not rely on them as statements or representations of fact and must satisfy themselves by
inspection or otherwise as to the correctness of each of them.
iii) No person in the employment of Buchanan Bond Real Estate LLP has any authority to make or give any
representation or warranty in relation to this property.
January 2012