Da Long Yi Hot Pot5 Berners Street, London, W1T 3LA

Description
The premises occupies the ground and basement floor of a large seven storey mid-terrace building with exposed stone elevations beneath a mansard roof.

Situation
5 Berners Street occupies a prominent mid-terrace position along Berners Street just off Oxford Street, a short walk to both Oxford Circus and Tottenham Court Road Underground Station which provides access to the Elizabeth, Central, Victoria and Bakerloo lines. The surrounding area comprises a mix of residential, hotel, offices.

Tenure and Tenancy
The property is held long leasehold (Title Number NGL967371) on a 999 year lease from 24 January 2017 at a rent of £1 per annum.

The ground and basement floors are let to Zshy Limited (Company Number 14167304) for a 20 year term expiring 18 April 2043 at a current rent of £170,000 per annum which is subject to 5 yearly reviews to the greater of open market rent or annually compounded RPI with a collar of 2% and cap of 4%. The next rent review is on 19 April 2028. A rent deposit of £42,500 is held by the landlord and there is a tenant break option on 19 April 2038 upon not less than 6 months written notice.

Planning
Our initial enquiries of the local authority have revealed that the property is not listed although it is situated within the East Marylebone Conservation Area.

Covenant
Zshy Limited (Company Number 14167304) is a franchisee of Da Long Yi Hot Pot who were founded in Chengdu, Sichuan, China in 2013 and have now opened more than 400 franchised restaurants worldwide including in Toronto, New York, Los Angeles, Sydney, London, Auckland and Singapore. Da Long Yi Hot Pot owns a number of brands including:
. Dalong Shabu Hot Pot
. Dalong Shabu Portable Pot
. Liu Hot Pot Hot Pot
. Pao Bao Po Hot Pot Pickled Vegetables

The Market
The leisure and hospitality sectors have continued to perform strongly as they benefit from robust consumer demand. The resilient operator performance and typical long leases have continued to drive investor demand in the sector.

London continues to be recognised as one of the worlds safe havens for property investors. Its status as a leading global financial centre and as one of the most visited cities by tourists continues to drive strong investor and occupier demand seeking investments let to strong covenants.

VAT
It is envisaged that the property will be sold as a TOGC so the transaction should therefore be exempt from VAT on the basis the purchasing entity is VAT registered.

Energy Performance Certificate
D - 85.

Fixtures & Fittings
The fixtures and fittings are currently owned by the occupational tenant.

Terms
We are instructed to invite offers in excess of £2,660,000 (6.00% NIY) assuming usual purchaser’s costs.

The business will continue to trade unaffected from the premises during the marketing of the property and post completion of the sale.

Money Laundering
Money Laundering Regulations require Savills to conduct checks upon all purchasers. Prospective purchasers will need to provide proof of identity and residence.

Viewing and Contacts
All viewings must be made by prior appointment and under no circumstances should any direct approach be made to any of the occupational tenants staff.

For further information and all viewing requests please contact the sole selling agents Savills.