EAST HAM 2-10 MYRTLE ROAD & 2-6 ST JOHNS ROAD, E6 1HU

PRIME FREEHOLD FOOD STORE INVESTMENT WITH RESIDENTIAL DEVELOPMENT POTENTIAL EAST HAM 2-10 MYRTLE ROAD & 2-6 ST JOHNS ROAD, E6 1HU PRIME FREEHOLD LONDON FOOD STORE INVESTMENT WITH RESIDENTIAL DEVELOPMENT POTENTIAL

INVESTMENT SUMMARY

zz Prominent standalone food store

zz Located in a vibrant and well connected suburb, identified within the as one of the 35 major centres

zz Situated in a prominent position on Myrtle Road adjacent to the entrance to East Ham Market Hall (to be comprehensively redeveloped) and in close proximity to High Street North in the heart of East Ham’s Town Centre

zz Freehold

zz Provides 30,017 sq ft of accommodation arranged over ground and first floors

zz Trading from the premises since 1994, Sainsburys have recently concluded a new 10 year FRI lease at a rent of £400,000 pa

zz Excellent transports links with both the District and the and City underground lines accessed from East Ham Underground Station, giving access to Stratford (15 minutes) and Liverpool Street Station (20 minutes)

zz Large population living in and around East Ham with a district population of around 76,000 and a primary catchment population of 222,000

zz Site extends to 0.44 acres (1,800m2)

zz Excellent potential for redevelopment of the site for residential (with a planning consent already granted prior to the tenant completing a lease renewal)

zz 10 year income without break

zz Exceptional covenant strength of J Sainsbury’s Supermarkets Limited

zz Offers are sought in excess of £6,820,000 (Six Million Eight Hundred and Twenty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level provides a net initial yield of 5.5%, after allowing for acquisition costs of 6.65% EAST HAM 2-10 MYRTLE ROAD & 2-6 ST JOHNS ROAD, E6 1HU PRIME FREEHOLD LONDON FOOD STORE INVESTMENT WITH RESIDENTIAL DEVELOPMENT POTENTIAL

LOCATION AND EAST HAM COMMUNICATIONS

East Ham is a continually improving, lively and popular suburb situated within the , North of the . The district has an estimated population of approximately 76,000 alongside a primary catchment population of 222,000. The area was identified within the London Plan as one of 35 major centres.

East Ham is conveniently located between Barking and the City of London with easy access to the West End, , The Olympic Stadium, Westfield Stratford, The O2 Arena and the Excel M Exhibition Centre.

EE EAETH S M A EAST HAM East Ham benefits from excellent communications by road, with the EST HAM E H STAM T H A13 situated in close proximity to the South and the A406 (North

Circular Road) running parallel to the East. Both the District and

A A A A Hammersmith and City underground lines can be access via the East A Ham underground station offering regular services to Stratford (15 H AST H EHAM minutes) and Liverpool Street Station (20 minutes). There are also

ME a number of citywide bus routes within the local vicinity. A A A London City Airport is located 2 miles to the South East and Stanstead A

Airport is approximately 30 miles to the North. T ET

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AA HA AA TE T A EAST HAM 2-10 MYRTLE ROAD & 2-6 ST JOHNS ROAD, E6 1HU PRIME FREEHOLD LONDON FOOD STORE INVESTMENT WITH RESIDENTIAL DEVELOPMENT POTENTIAL

DEMOGRAPHICS AND RETAIL PROVISION

East Ham is an established retail centre with a total population within the primary catchment area of 222,000. The area benefits from a young population which includes a particularly high proportion of adults aged 25-44 within the primary catchment. East Ham is projected to see an above average growth in population over the 2017-2021 period and the area is already experiencing an above average rise in residential values, driving the pipeline residential developments.

East Ham is a popular retailing location with the majority of the national multiple representation located upon High Street North, the principal retailing pitch for the town. There are a large number of multiple occupiers along the street including Primark, Footlocker, Holland & Barrett, Wilko, Boots, Argos, McDonalds and Costa Coffee.

The subject property is located upon Myrtle Road, immediately adjacent to the East Ham market and joins High Street North, one block from Primark. The subject property benefits from a strong Public Transport Accessibility Level (PTAL) score of 6a (best score of 6b), based upon 2018 Transport for London data.

The East Ham market hall is particularly popular with it’s unique mix of local and international market stalls. The market is part of an extensive mixed use redevelopment application by Land Management and Dransfield Developments (East Ham Regeneration Limited). EAST HAM 2-10 MYRTLE ROAD & 2-6 ST JOHNS ROAD, E6 1HU PRIME FREEHOLD LONDON FOOD STORE INVESTMENT WITH RESIDENTIAL DEVELOPMENT POTENTIAL

FOODSTORE COMPETITION

There are only 3 competing foodstores within 5 minutes of the subject providing a relatively low level of competition. The main competition comes from Lidl, Tesco Express at Plaistow and Tesco Superstore at Highbridge Road, Barking. Within 10 minutes there are several larger stores including the Asda in Barking, Tesco Extra, Asda and Sainsbury’s at , and

Sainsbury’s in .

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1 MILE EAST HAM 2-10 MYRTLE ROAD & 2-6 ST JOHNS ROAD, E6 1HU PRIME FREEHOLD LONDON FOOD STORE INVESTMENT WITH RESIDENTIAL DEVELOPMENT POTENTIAL

DESCRIPTION

The property comprises a 30,017 sq ft (2,789 sq m) purpose built supermarket constructed in 1974 with a two storey in- situ reinforced concrete frame. The external envelope is formed from masonry infill panels.

The sales accommodation is at ground floor with ancillary storage accommodation above arranged as follows:-

Ground Floor 16,160 sq ft First Floor 13,779 sq ft Second Floor 78 sq ft

The store is fitted out to the tenants corporate format.

Customer access is from Myrtle Road, with service access to the rear from St Johns Road. EAST HAM 2-10 MYRTLE ROAD & 2-6 ST JOHNS ROAD, E6 1HU PRIME FREEHOLD LONDON FOOD STORE INVESTMENT WITH RESIDENTIAL DEVELOPMENT POTENTIAL

NORTH

TO BE REDEVLOPED (EAST HAM REGENERATION LIMITED)

For Identification purposes only EAST HAM 2-10 MYRTLE ROAD & 2-6 ST JOHNS ROAD, E6 1HU PRIME FREEHOLD LONDON FOOD STORE INVESTMENT WITH RESIDENTIAL DEVELOPMENT POTENTIAL

TENANCY

The property is leased to Sainsburys Supermarkets Ltd for a term of 10 years from 10 August 2018 expiring 9 August 2028. The lease is contracted within the security of tenure provisions of the Landlord and Tenant Act, 1954.

The lease is drawn on full repairing and insuring terms and there is an upwards only rent review upon 10 August 2023.

The current passing rent is £400,000 pax, reflecting a rate of £13.33 psf based upon a floor area of 30,017 sq ft. EAST HAM 2-10 MYRTLE ROAD & 2-6 ST JOHNS ROAD, E6 1HU PRIME FREEHOLD LONDON FOOD STORE INVESTMENT WITH RESIDENTIAL DEVELOPMENT POTENTIAL

TENANT COVENANT

Sainsbury’s is one of the top supermarket operators in the UK, with a market share of 16.5% (Kantar) January 2017.

The company operated from approximately 1,374 stores in the UK and has 161,000 employees.

In September 2016, J Sainsbury’s Plc acquired Argos from the Home Retail Group for £1.3bn, in a strategic move which boosted the groups non-food and online retail presence.

Sainsbury’s Supermarkets Limited is the principal operating company in the UK for the J Sainsbury Plc Groups supermarket operations.

The company provides the strongest Dun and Bradstreet rating of 5A1, representing a minimum risk of business failure. The accounts are summarised as follows.

Year End Sales Turnover Pre-text Profit Net Worth

March 2015 £23,443,000,000 -£206,000,000 £4,224,000,000

March 2016 £23,168,000,000 £406,000,000 £4,458,000,000

March 2017 £23,234,000,000 £342,000,000 £4,353,000,000 EAST HAM 2-10 MYRTLE ROAD & 2-6 ST JOHNS ROAD, E6 1HU PRIME FREEHOLD LONDON FOOD STORE INVESTMENT WITH RESIDENTIAL DEVELOPMENT POTENTIAL

RESIDENTIAL DEVELOPMENT OPPORTUNITY

The subject property is located in close proximity to a number of sites that will be redeveloped for mixed use/residential.

The London plan and core strategy both promote development and encourage investment particularly to protect and enhance the viability and vitality of Town Centres.

The core strategy highlights the importance of realising the early generation of parts of East Ham Town Centre and encouraging new development particularly in the Southern part of the centre to provide for the renewal of existing floor space and a better quality and mix of offer during the day and into the evening together with complementary high density residential development.

Prior to the recent lease renewal with Sainsbury’s the vendor engaged architects to develop a scheme for the redevelopment of the site. In the first instance this was to accommodate a downsized food store. EAST HAM 2-10 MYRTLE ROAD & 2-6 ST JOHNS ROAD, E6 1HU PRIME FREEHOLD LONDON FOOD STORE INVESTMENT WITH RESIDENTIAL DEVELOPMENT POTENTIAL

A TE M

HH STEET Planning consent was ultimately obtained (17/02737/FUL) for the EAST HAM EEEAT T development of 36 residential units above a refurbished retail unit and some public realm improvements.

This consent was for a 5 and 7 storey development, which we consider could be significantly improved upon in due course in the form of a whole scale redevelopment of the site given the adjacent application upon the East Ham Market (East Ham Regeneration Ltd) with a range A of blocks up 15 storeys high (to include up to 277 residential units). Also, A ST HS TE the consented St Johns Road car park development (Helical Retail Ltd) M HEA ETAHH TSTEET with a scheme of 2-11 storeys to comprise 2 retail units, a gym and 98 EAST HAM EEEAT T EEMET residential units to be operated within the private rented sector.

A ST HS HEA ETA T EEMET

East Ham Regeneration Ltd Helical Retail Ltd (Resolution to Grant)

East Ham Regeneration Ltd Helical Retail Ltd (Resolution to Grant) EAST HAM 2-10 MYRTLE ROAD & 2-6 ST JOHNS ROAD, E6 1HU PRIME FREEHOLD LONDON FOOD STORE INVESTMENT WITH RESIDENTIAL DEVELOPMENT POTENTIAL

C&W Architects were instructed to prepare a high level massing study for the EXISTING CONSENT HIGHLIGHTED potential redevelopment of the site to provide a new multi storey residential block with potential for retail space at ground level.

A sketch study was drawn on the assumption of being able to demolish the existing Sainsburys store with the indicative scheme summarised as follows;

1. NEW RETAIL ACCOMMODATION EAST HAM EEEAT T a. Total Ground floor Retail Space GIA 1, 275 sq m 13,700 sq ft EEMET b. Store frontage to Myrtle Road 22 m 72 ft

2. NEW RESIDENTIAL ACCOMMODATION

a. Two Lifts with two separate cores and entrances. Main entrance is on St John’s Road.

b. Storey Height 7 storeys c. Estimated no. of residential units 74

d. Estimated residential GIA 4,510 sq m 48,570 sq ft S M e. Residential Flat minimum areas GIA 1 BED 2 BED 50 sq m (540 sq ft) 70 sq m (750sq ft) f. Suggested Residential Mix 1 BED 2 BED 36 no. 38 no. 48% 52%

This massing and preliminary design scheme has been prepared to form an indicative future context and potential for future development. The massing and design study is available upon request. S H M The London housing market remains woefully undersupplied particularly at the more affordable price point. There is a shortage of new build residential within central East Ham and alongside the developments adjacent and to the rear of the subject property, we consider there will be considerable demand for residential units in this location, particularly given the town centre setting. EAST HAM 2-10 MYRTLE ROAD & 2-6 ST JOHNS ROAD, E6 1HU PRIME FREEHOLD LONDON FOOD STORE INVESTMENT WITH RESIDENTIAL DEVELOPMENT POTENTIAL

EPC Available upon request. VAT The subject property has been elected for the purpose of VAT and it is anticipated the sale will be treated as a Transfer of Going Concern. PROPOSAL Our clients are seeking offers in excess of £6,820,000 (Six Million, Eight Hundred and Twenty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level produces a net initial yield of 5.5%, after allowing for acquisition costs of 6.65%.

For further information, please contact: JONATHAN MILBURN 020 7637 7100 [email protected] Jackson Criss, West End House, 11 Hills Place, London W1F 7SE

Messrs. Jackson Criss for themselves and for the vendors or lessors of this property whose agents they are to give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements of representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Messrs. Jackson Criss has any authority to make or give any representation or warranty whatever in relation to this property. 100902. Designed by TCC 08/18.