London, 421 Lordship Lane, N17 6AG Well Secured Prominent Freehold Convenience Store Investment Sainsbury’s Local London, 421 Lordship Lane, N17 6AG Well Secured Prominent Freehold Convenience Store Investment | Sainsbury’s Local
A1M INVESTMENT Potters Bar M11 CONSIDERATIONS M25 M25 Enfield Watford M1 M25 ■ Affluent north London suburb and busy Chigwell thoroughfare Sainsbury’s ■ Highly prominent trading location in a Wood Green Walthamstow densely populated area M40 Harrow Finsbury Park ■ Well secured to Sainsbury’s Supermarkets Limited Wembley Stratford ■ The property is NOT elected for VAT Holloway ■ Offers in excess of £1,285,000 Slough Central ■ A purchase at this level will show a net initial M4 London yield of 5.5% after normal purchaser’s costs, assuming the rent rises to £75,000 pa following Richmond the outstanding rent review negotiations. Dartford Twickenham Wimbledon
Sidcup Bromley
M3 Croydon Weybridge Orpington M25 M20 LORDSHIP LANE LOCATION ACCOMMODATIONSutton Lordship Lane is located within the London Borough of Harringay in The property is situated in a busy and highly prominent corner location The property has theEpsom following dimensions and gross internal north London. Lordship Lane is the main arterial link road connecting at the junction of Lordship Lane (A109) and Downhills Way (B155). floor areas: Wood Green, Tottenham High Road, Bruce Grove and White Hart Lane. The surrounding area is dominated by residential dwellings.Woking Caterham Lordship Lane is approximately 4 miles north of central London. Lordship Lane is the main arterial link road connecting Wood Green, Gross Frontage 55 ft 6 ins 16.92 m M26 Its nearest transport links include Wood Green Underground Tottenham High Road, Bruce Grove and White Hart Lane. Net Frontage 54 ft 9 ins 16.38 m M25 Sevenoaks Station (Picadilly Line) and Bruce Grove Overground Station. Wood Dorking Green Station provides a direct link to the West End with services Splay/Return Frontage 38 ft 6 ins 11.74 m to Piccadilly Circus taking approximately 25 minutes. DESCRIPTION Redhill Ground Floor 3,718 sq ft M23 345.41 sq m The London Borough of Harringay has a resident population The property comprises a single storey convenience Guildfordstore of frame of approximately 270,000 people. Over the next 10 years the construction with glazed and brick elevations under a flat roof. Total 3,718 sq ft 345.41 sq m Tonbridge population of the Borough is expected to increase by approximately 11%. The Borough has a higher than average proportion of those TENURE people within the highest AB and C1 social groups in the UK. The property is held freehold. Lorship Lane is in close proximity to several schools and sports stadiums, including the Tottenham Hotspur Stadium, Woodside High School, Duke’s Aldridge Academy and the London Academy of Excellence. London, 421 Lordship Lane, N17 6AG Well Secured Prominent Freehold Convenience Store Investment | Sainsbury’s Local
TENANCY COVENANT INFORMATION ASSET MANAGEMENT The entire property is let to Sainsbury’s Supermarkets Ltd for a term Sainsbury’s is one of the UK’s leading food store operators currently of 15 years from 16th July 2012 (approximately 7.8 years unexpired) accounting for approximately 15.4% of the UK’s total grocery market OPPORTUNITIES at a current passing rent of £70,000 per annum. (Kantar – Oct 18). The company was founded in 1869 and currently We understand that Sainsbury’s trade well from this store, which trades from over 1,200 supermarkets and convenience stores The lease benefits from 5 yearly upwards only rent reviews to open may provide the opportunity to re-gear the lease and extend the throughout the country and employs around 161,000 people. market rental value. The July 2017 rent review is currently being term length. negotiated, and it is expected that the rent will rise to approximately Sainsbury’s Supermarkets Limited (company number: 3261722) There may also be the opportunity in the future to further develop £75,000 per annum. The next review is then due on 16th July 2022. reported the last three years results: the site and build additional floors above the store (subject to the There is a tenant only break in the 10th year subject to 6 months prior relevant permissions). written notice. 10/03/2018 11/03/2017 12/03/2016
Turnover £23,606,000,000 £23,234,000,000 £23,168,000,000 VAT The property is NOT elected for VAT. Pre Tax Profit £187,000,000 £342,000,000 £406,000,000 Shareholder Funds £4,712,000,000 £4,498,000,000 £4,608,000,000 EPC The property has an EPC rating of B-44. Sainsbury’s Supermarkets Limited have a Creditsafe rating of “73/100” – indicating a “Very Low Risk” of business failure. London, 421 Lordship Lane, N17 6AG Well Secured Prominent Freehold Convenience Store Investment | Sainsbury’s Local
RENTAL VALUE INVESTMENT COMPARABLES The anticipated July 2017 reviewed rent of £75,000 per annum would equate to a rate of approximately Please see below some recent convenience store investment comparables. £20.17 psf. This still sits at a discount to other comparable convenience stores, presenting an investor with good reversionary prospects. Please see the schedule below:
Address Date Tenant Rent Rent psf Location Tenant Term Certain Tenure Yield Date
Ravenscourt Park, 108-111 Arches Apr 19 Sainsbury’s £105,000 £29.47 Twickenham COOP 15 years F/H 4.79% Feb 19
Battersea, Battersea Exchange Apr 19 Sainsbury’s £125,000 £30.40 Caledonian Road Iceland 3 years F/H 3.6% Feb 19
Bromley, 37-41 High Street Jan 19 Sainsbury’s £100,000 £26.39 Clapham North Sainsbury’s 11 years L/LH 3.99% Dec 18
Wraysbury, 31 Windsor Road Jan 19 COOP £92,500 £28.46 East Dulwich M&S 15 years F/H 4.5% Oct 18
Surbiton, 120 Villiers Avenue, London Sep 18 COOP £140,000 £28.57 Catford Sainsbury’s 15 years L/LH 4.25% Sep 18
Twickenham, 224-226 Hampton Road Sep 18 COOP £115,000 £33.10 Colliers Wood COOP 15 years L/LH 4.90% May 18
Farnham Common Sainsbury’s plus office 5 years F/H 5.35% May 18 London, 421 Lordship Lane, N17 6AG Well Secured Prominent Freehold Convenience Store Investment Sainsbury’s Local
PROPOSAL WOOD GREEN Offers in excess of £1,285,000 are sought for the freehold interest. A purchase at this level will reflect anet initial yield of 5.5% after allowing for normal purchaser’s costs and assuming the rent rises to £75,000 per annum following the outstanding rent review negotiations. (A109) LANE LORDSHIP It is anticipated that by exchange of contracts the outstanding July 2017 rent review will have been documented. However if the review has not been finalised the seller will reduce the purchase price on a THE ROUNDWAY (A1080) pro rata basis, based on the offer yield (multiplier) bid. Following settlement the buyer will then ‘top up’ the purchase price on the same basis off the new rent agreed with the seller retaining the additional back up to completion. CONTACTS DOWNHILLS WAY (B155) To view copies of the lease, information on title, the EPC and other information please visit our website, http://www.hrhretail.com/property/london1 To register interest and to carry out an internal inspection please contact:
Jack Brown Jeremy Lovell [email protected] [email protected] T 020 7908 7032 T 020 7908 7037 M 07969 291660 M 07949 619657
HRH Retail Portland House 4 Great Portland Street, London W1W 8QJ T: 020 7499 5399 | F: 020 7580 6291 | www.hrhretail.com
Or our joint agents TDB Real Estate:- Mark Brown [email protected] T 01604 604020 M 07730 416964
TDB Real Estate 8 Queensbridge Bedford Road, Northampton, NN4 7BF WALPOLE ROAD T: 01604 604020 | www.tdbre.co.uk
DISCLAIMER NOTICE: Whilst every care is taken in the preparation of these particulars Harmer Ray Hoffbrand LLP, any joint agents involved and the vendor take no BRUCE GROVE responsibility for any error, mis-statement or omission in these details. Measurements are approximate and for guidance only. These particulars do not constitute an & offer or contract and members of the Agent’s firm have no authority to make any representation or warranty in relation to the property. September 2019. WHITE HART LANE