An Exceptional A3 Opportunity
For many years it has been planning policy to grant no new A3 usage approvals in this part of Lambeth. Consequently, it has not been possible for outside operators to gain a presence in the area, unless existing units with restaurant use were relinquished by the incumbents. However, the granting of A3 approval was achieved by the overturning of a major local policy preventing any outside operators from entering the market within the borough. The historical A3 use was then reinstated. As a result, a unique window of opportunity has become available to increase net worth for any potential parties.
The two properties, which have never previously been on the market together, are the last of their kind to remain on a prime commercial parade. This offers a double fronted unit in a high footfall location, with no competition from other A3 alternatives nearby.
Existing A3 operators strive to increase visibility by expanding into neighbouring properties, in order to attain the double frontage crucial for meeting the increasing demands of the present market. This lack of A3 units for sale/lease in Clapham Common has resulted in a high retail space premium, especially for a sensitive pitch.
This location offers huge, unrivalled potential for a new flagship operation to gain an immediate and substantial presence in this flourishing area. It is prominent in both position and scale for passing traffic, local residents and outside visitors and has the additional convenience of parking possibilities unavailable elsewhere.
The size and space exceeds any blue chip operator's revenue target requirements. Current operators within the High Street have recognised the unique nature of this site, given that The Pavement comprises a high quality commercial promenade. There are approximately 130 covers inside and approximately 20+ covers can be sited outside on The Pavement.
Interested parties that have previously enquired, submitted offers and whose business models correspond well with the project, include high street operators of well-known brands as well as a reputable hedge fund. The due diligence carried out before enquiries were made, confirms that this corner plot can accommodate the establishment of a flagship operation, which will immediately tap into a lucrative food and drinks market that will continue to grow as forecast. A recognition that the underlying valuation takes into account the revenue stream generated from the A3 use should be evident in the profiles of interested parties.
The site is unsuited to short term strategies, i.e. development followed by selling on. The strong preference is for a long term investment strategy that seeks to generate an ongoing high rate of return.