30-48 london road forest hill, se23 3hf · • well secured income with in excess of 11.5 years...
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30-48 LONDON ROAD FOREST HILL, SE23 3HF
DOMINANT GREATER LONDON FOOD STORE INVESTMENT IN EXCESS OF 11.5 YEARS UNEXPIRED (WITHOUT BREAK)
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INVESTMENT SUMMARY
• Forest Hill is a commuter suburb of rising prosperity within South East London.
• Highly accessible location with links to Canary Wharf in 12 minutes, London Bridge in 17 minutes and Green Park in 22 minutes.
• Dominant food store and unit shop let to Sainsbury’s Supermarkets Ltd until May 2031.
• Well secured income with in excess of 11.5 years unexpired (without break).
• Extremely limited local competition with only a single competitor occupied store >10,000 sq ft within a 10 minute drivetime.
• 5 yearly upwards only open market rent reviews.
• Ground rents receivable from 11 residential dwellings developed above part.
• Producing £1,040,260 per annum.
• Freehold.
• Further residential development potential (subject to necessary consents).
• We are instructed to seek offers in excess of £19,500,000, reflecting 5.00% NIY, after the deduction of purchaser’s costs at 6.74%.
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LOCATION
Forest Hill is a thriving residential suburb of South East London situated
approximately 7 miles to the south east of central London, in the London
Borough of Lewisham. Located on the South Circular road, Forest Hill is
approximately 1.8 miles south east of East Dulwich and 1.7 miles north of
Sydenham.
REGENT’SPARK
PRIMROSE HILL
HYDEPARKKENSINGTON
SHEPHERD’SBUSH
ACTON
WEMBLEY
CHISWICK
HEATHROWAIRPORT
CHELSEA
WIMBLEDON
RICHMOND
KINGSTONUPON THAMES
BRENTFORD
TWICKENHAM
HAMPTON
WANDSWORTH
CANARYWHARF
WOOLWICH
CITY OFLONDON
WEST END
WIMBLEDONPARK
CLAPHAMCOMMON
RICHMONDPARK
BUSHYPARK
HAM HOUSE GARDENS
HAMPTONCOURT PARK
STOKENEWINGTON
HACKNEY STRATFORD
EPPINGFOREST
CAMDENTOWN
King’s Cross St Pancras International
HAMPSTEADHOLLOWAY
HIGHGATE
MARYLEBONE
BURGESSPARK GREENWICH
PARK
HACKNEYMARSH
CLISSOLDPARK
FINSBURYPARK
HIGHBURYFIELDS
HAMPSTEADHEATH
BRENTRESERVOIR
GLADSTONEPARK
ROUNDWOODPARK
FOREST HILL
BROMLEY
EAST DULWICH
STREATHAM
WEST NORWOOD
BRIXTON
GREENWICHCLAPHAM
Forest Hill Station
Sloane Square
Earls Court
Victoria
Waterloo
Liverpool Street
London BridgeGreen Park
Paddington
Knightsbridge
Bank
Euston
Camden
Swiss Cottage
East Finchley
St John’s Wood
West Hampstead
Hampstead
Hammersmith
GATWICKAIRPORT
SOUTHWARK
North Greenwich
Elephant & Castle
Vauxhall
South Hampstead
Clapham Junction
Willesden Green
NeasdenWembley Stadium
Wembley Central
Wembley Park
Canada Water
SYDENHAM
M4
M3
M1
M2
M1
A1(M)
M25
M25
M20
M23
M25
M40
M25
A20
A23
A24 A22
A20
A2
A3
A3
A1
A2
A13
A13
M25
M25
M11
M11
Heathrow
Horsham
Uckfield
HaywardsHeath
BurgessHill
LONDON
Luton
Stanstead
Gatwick
Watford
Staines
Maidenhead
High
Wycombe
Bracknell
Richmond
WimbledonBromley
Chiswick
Epsom
Dartford
Chelmsford
HertfordSt Albans
HemelHempstead
Braintree
Maidstone
Brentwood
Chatham
Sittingbourne
Epping
Croydon
FOREST HILL
Sevenoaks
Guildford
Leatherhead
Reigate Redhill
Crawley
Tonbridge
Canary Wharf
A12
A12
A12
A10
A41
A40
A316
A406
A205
A414
A414
A602
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CONNECTIVITY
Road
Forest Hill benefits from excellent road communications. The
A205 South Circular road runs through the centre of Forest Hill.
The A23 and A20 to the west and east provide ready access to the
M25 and national motorway network.
Rail
The strength of Forest Hill’s rail connections are a key catalyst
to the area’s growth as a popular commuter location. Fast and
frequent London Overground and National Rail services connect
to Canada Water in 12 minutes, London Bridge in 17 minutes
and Green Park via Canada Water (London Underground) in
22 minutes.
Air
Both Heathrow and Gatwick, the UK’s two largest airports, are
easily accessed in just over an hour’s drive from Forest Hill.
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SITUATION
The property occupies a prominent position fronting
London Road, 150 metres to the west of Forest Hill
rail station. The property benefits from vehicular
access to the rear from David’s Road.
London Road is characterised by a community
and convenience focused retail offer provided by
a vibrant mix of national and local independent
operators. The surrounding area is dominated by
residential dwellings.
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LOCAL AUTHORITYOWNED
(60 SPACES)
UNDERCROFTCAR PARK
(36 SPACES)
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FOODSTORE COMPETITION
The property benefits from extremely limited local
competition with only a single competitor occupied
store of >10,000 sq ft falling within a 10 minute
drive time.
Catchment
10 minutes20 minutes
Foodstoresby fascia
AldiAsdaCo-opIcelandLidl
Marks & SpencerMorrisonsSainsbury'sTescoWaitrose
by sales area (sqft)
> 20,00010,000 to 20,000
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CATCHMENT & DEMOGRAPHICS
• Forest Hill is a suburb of increasing affluence. An
estimated population of 197,827 people live within
a 10-minute drive time, increasing to 932,249
people within a 20-minute drive time.
• Acorn Affluence Categories show that households
of rising prosperity are the most prevalent
group with 55% of households in the immediate
catchment falling within this category compared
to the London average of 36%.
• Healthy population growth is forecast with a
projected increase of 9,300 people in the next 5
years and 17,854 in the next 10 years.
Food stores >10,000 sq ft within 10 and 20 minute drive times
Source: Savills Research
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DESCRIPTION
The property comprises a modernised and extended
food store and unit shop with on site customer
parking and 11 residential dwellings above part.
The food store comprises 48,808 sq ft and is
arranged over three levels taking advantage of the
local topography.
The food store sales accommodation is at grade
level to the London Road frontage, whilst the lower
level ancillary accommodation and loading bays are
at grade level to the rear. Customer lifts facilitate
access from the car parking.
The property benefits from approximately 96 car
parking spaces. 36 of these are within the property’s
ownership and the remainder provided by the
adjacent, council owned, surface level car park
located to the rear of the property. Sainsbury’s
and Lewisham Borough Council have entered
into a car park agreement governing the overall
operation of the car park. A pay and display system
is in operation Monday - Saturday 08:00-18.30 and
the first two hours of parking are currently free of
charge. Further details are available on request.
The unit shop fronts London Road and is a ground
floor lock-up unit.
There is potential for further residential and
alternative use development, subject to necessary
planning consents.
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ACCOMMODATION
The commercial elements of the property have been measured by Plowman Craven to have the following approximate floor areas:
Demise Floor Use Area ( GIA Sq ft)
32-48 London RoadSainsbury’s Supermarket Ltd
Lower Ground Loading & Ancillary 15,591
Ground Floor Sales 26,796
First Floor Staff 6,421
Total 48,808
30-32 London RoadSainsbury’s Supermarket Ltd (Sublease: Sue Ryder)
Ground Floor Retail 1,395 *
ITZA Units 975
Customer Car Parking Lower Ground 36 spaces (additional 60 spaces available in adjacent local authority owned car park)**
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TENANCIES
The commercial elements of the property are entirely let to Sainsbury’s Supermarkets Ltd on two separate leases expiring in May 2031.
The residential premises are each subject to 125 year leases with a ground rent receivable.
Lease Start Date Lease Expiry Date Rent Review Passing Rent (£ pa) Devaluation Comments
32-48 London RoadSainsbury’s Supermarkets Ltd
11/05/2006 10/05/203111/05/202111/05/2026
£1,003,400 £18.69 psf * Open market reviews.
30-32 London RoadSainsbury’s Supermarkets Ltd (Sublease: Sue Ryder)
11/05/2006 10/05/203111/05/202111/05/2026
£35,760 £36.68 ITZASub-let to Sue Ryder at £33,500 pa.
(Flats 1-11, 26-28 London Road) Private Individuals
01/01/2006 31/12/2131 01/01/2031 £1,100 -£100 pa per flat, doubles every 25 years.
Total £1,040,260
* NIA
** All 96 on site car parking spaces are subject to a car park agreement
between Lewisham Borough Council and Sainsbury’s.
* Devaluation reflects a 10% addition for fitted specification.
48.9m57.7m
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LONDON R OAD
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DA
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24
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68
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Horniman G range
17
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26
22
1
17
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9
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Fairlawn
45
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Annexe
P rimary
70
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8
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15
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6Freehold.
Subject to a 999 year leasehold interestat ground floor level only.
TENURE
The property is held Freehold. The approximate extent
of the title is identified by the orange line.
The area outlined blue is subject to a 999 year lease at
ground floor level only granted in favour of the Mayor
and Burgesses of the London Borough of Lewisham
from the 24th April 2006 (TGL274198).
NOTE: Reproduced from the Ordnance Survey Map with the permission of the Controller of H.M. Stationery Office. © Crown copyright licence number 100024244 Savills (UK) Ltd.
Published for the purposes of identification only and although believed to be correct accuracy is not guaranteed.
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EPC
34-48 London Road, Sainsbury’s Supermarket, has an EPC rating
of C-63.
A copy of the EPCs will be provided on enquiry.
VAT
The property has been elected for VAT purposes. It is anticipated that
the sale will be treated as a Transfer of a Going Concern (TOGC).
FURTHER INFORMATION
Further information is available on our secure dataroom:
https://sites.savills.com/sainsburysforesthill
PROPOSAL
We are instructed to seek offers in excess of £19,500,000 (exclusive
of VAT) for the benefit of our client’s freehold interest. Adopting
purchaser’s costs of 6.74%, a purchase at this level would reflect a
5.00% NIY.
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£000s 10th March 2018 11th March 2017 12th March 2016
Turnover 23,606,000 23,234,000 23,168,000
Pre-Tax Profits 187,000 342,000 406,000
Tangible Net Worth 4,562,000 5,353,000 4,458,000
COVENANT
Founded in 1869, Sainsbury’s has grown exponentially to become the third largest food
retailer in the UK with a 15.3% market share.
With 608 supermarkets, 191 Argos stores and 3.9 million active customers at Sainsbury’s
Bank and Argos Financial Services, the company has recently reported total group sales
have grown 9% with like for like sales up 1.3%.
Sainsbury’s Supermarkets Ltd benefit from an Experian/Delphi credit score of 100/100
showing very low risk of financial failure and a D&B rating of 5A1.
CONTACT
James Stratton
+44 (0) 20 7409 8880
+44 (0) 7787 513060
Olivia Hoareau
+44 (0) 20 7557 9994
+44 (0) 7866 203453
Important Notice
Important Notice
Savills, 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 Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise.
Designed and Produced by Savills Commercial Marketing: 020 7499 8644 | October 2019