Sainsbury’s Supermarkets Ltd, Haydons Road, London SW9 – SOLD
Investment Summary
- Wimbledon is an affluent South West London suburb with excellent communication links.
- Situated in a prominent residential area amongst various retailers in close proximity.
- Ground floor commercial unit forming part of a newly constructed private residential scheme of 14 apartments built to a high standard and specification.
- Agreement for Lease signed and contracts exchanged with Sainsbury’s Supermarkets Ltd on a new 15 year FR&I lease with tenant’s option to break in the 10th year at a commencing rent of £65,000 pax.
- 5 yearly rent review patterns based on the Retail Prices Index, capped at 3.5%.
- The property will be held long leasehold at a peppercorn ground rent.
- We are instructed to seek offers in excess of £1,118,000, subject to contract, and exclusive of VAT for our client’s long leasehold interest. A purchase at this level would reflect a net initial yield of 5.50% after allowing for standard purchaser’s costs of 5.75%.
Alternative Opportunity
We have been advised that our clients would consider disposing of the residential upper parts comprising of 14 private apartments. This could either be carried out in conjunction with the ground floor commercial unit as a block sale, or alternatively in isolation excluding the commercial unit. Please note that all the apartments are currently let on AST’s expiring on various dates throughout this year.
