CONVENIENCE STORE INVESTMENT OPPORTUNITY - 47A STREATHAM HILL, LONDON SW2 4TS
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CONVENIENCE STORE INVESTMENT OPPORTUNITY 47A STREATHAM HILL, LONDON SW2 4TS
47A STREATHAM HILL, LONDON SW2 4TS INVESTMENT SUMMARY Long leasehold (999 years) convenience store investment Located on the busy Streatham Hill, a short walk from Streatham Hill Station Single let to Sainsburys Supermarkets Limited with circa 11.5 years unexpired Current rent of £64,250 per annum (£18.09 per sq ft GIA) Rent review in October 2021 GIA of 3,551 sq ft The tenant has been in occupation since 2006 Recently agreed reversionary lease illustrating the tenants’ commitment to the location Reversionary rent with excellent further growth prospects We are instructed to seek offers in excess of £1,155,000 (One Million One Hundred and Fifty Five Thousand Pounds) subject to contract and exclusive of VAT, reflecting a net initial yield of 5.25%, assuming purchasers’ costs of 5.89% Click HERE to view the 3D walkthrough of the property www.altitude-investments.com
47A STREATHAM HILL, LONDON SW2 4TS LOCATION Streatham is a densely populated South London suburb situated in the London Borough of Lambeth, some 6 miles south of Central London. Located between Tooting to the west, Brixton to the north, Crystal Palace in the east and Croydon in the south the area 47a Streatham Hill, London SW2 4TS benefits from excellent transport links. The A23 runs through the heart of Streatham and leads directly to the M23 and M25, which are both 12 miles further south. Numerous bus services run along Streatham Hill, 47a Streatham Hill serving Central London and the immediate area. Streatham Hill Rail Station is a 5 minute walk from the property and provides frequent National Rail services into London Bridge and London Victoria, with fastest journey times of 18 minutes. Streatham also benefits from two further stations, Streatham and Streatham Common, which are served by Southern and Thameslink. SITUATION The property is located in a prominent location on the eastern side of Streatham Hill (A23), between its junctions with Downton Avenue and Wyatt Park Road. The property benefits from significant passing volumes of vehicular traffic and pedestrian flows generated by nearby Streatham Hill station and the surrounding retail businesses. Streatham’s retail mix comprises a both established local businesses and national retailers serving the local population. DESCRIPTION The property comprises a double fronted retail unit forming the ground floor of Wheatley Court, a block of apartments completed in 2003. It is currently arranged as a single retail space with storage at the rear of the retail area serviced via a private side road. Click HERE to view the 3D walkthrough of the property. www.altitude-investments.com
47A STREATHAM HILL, LONDON SW2 4TS
TENURE RENTAL EVIDENCE
The property is held by way of a 999 year lease from 28th July 2004 at a We are aware of the following recent convenience store rental transactions:
peppercorn.
Address Date Tenant Rent Rent PSF
Surbiton, 120 Villiers Avenue Aug 19 COOP £140,000 £31.44
ACCOMMODATION Ravenscourt Park, 108-111 Arches Apr 19 Sainsbury’s £105,000 £29.47
Battersea, Battersea Exchange Apr 19 Sainsbury’s £125,000 £30.40
The property extends to an approximate GIA of 3,551 sq ft. Bromley, 37-41 High Street Jan 19 Sainsbury’s £100,000 £26.39
Wraysbury, 31 Windsor Road Jan 19 COOP £92,500 £28.46
Twickenham, 224-226 Hampton Road Sep 18 COOP £115,000 £33.10
TENANCY
The current passing rent on the subject property equates to approximately
The property is let to Sainsbury’s Supermarkets Limited on a full repairing lease
£18.09 per sq ft.
expiring on 31st October 2021 followed by a reversionary lease for a further
ten years expiring 31st October 2031. Therefore, the unexpired term is 11.7
years, with no breaks. COVENANT
The current passing rent is £64,250 per annum which will be subject to Sainsbury’s Supermarkets Limited is one of the leading food store operators
review on an upwards only open market basis on 30th October 2021 and 30th within the UK and is one of the ‘Big Four’ supermarket chains dominating the
October2026. The tenant is currently benefitting from a period of half rent UK grocery market. Sainsbury’s is the second largest chain of supermarkets in
expiring on 17th August 2021 which will be topped up by the vendor. the UK, with a 15.3% market share of the supermarket sector (as at 08.09.2019).
The company occupies c. 23.2 million sq ft of retail space in the UK across
1,414 stores (600 supermarkets and 814 convenience stores) and employs over
186,900 employees. The covenant is one of the strongest in the supermarket
sector with a Dun & Bradstreet rating of 5A1 representing a ‘minimum risk of
business failure’. A summary of the last three years of accounts is set out below:
09/03/19 10/03/18 11/03/17
Turnover (000’s) £24,030,000 £23,606,000 £23,234,000
Pre-Tax Profit (000’s) £174,000 £187,000 £342,000
Shareholders’ Funds (000’s) £5,838,000 £4,712,000 £4,498,000
www.altitude-investments.com
47A STREATHAM HILL, LONDON SW2 4TS VAT The property is elected for VAT. We envisage the sale would be treated as a transfer of a going concern. EPC Available on request. INVESTMENT CONSIDERATIONS London convenience store investment Recently extended lease with circa 11.5 years unexpired Potential for strong reversion at the 2021 rent review Busy location with excellent transport links Strong internationally recognised covenant PROPOSAL We are instructed to seek offers in excess of £1,155,000 (One Million One Hundred and Fifty Five Thousand Pounds), subject to contract and exclusive of VAT, reflecting a net initial yield of 5.25%, assuming purchasers’ costs of 5.89%. www.altitude-investments.com
FURTHER INFORMATION Tom Vantreen George Turnbull M 07772 328 273 M 07815 867 807 D 01392 660 000 D 0203 770 2828 E tom@altitude-am.com E george.turnbull@altitude-investments.com Important Notice Altitude Investment, their clients and any joint agents give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Altitude Investment have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. Q1 2020
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