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Buckingham, Chandos Road, MK18 1ALWell Secured Prominent Freehold Convenience Store InvestmentSainsbury’s Local
BUCKINGHAMBuckingham is an affluent and attractive university town in Buckinghamshire. Buckingham lies approximately 61 miles north west of London, 30 miles north east of Oxford, 21 miles south of Northampton and 13 miles west of Milton Keynes.
The town benefits from excellent road communications located on the A421 linking the town directly to the A3 and M40 to the west, and the A5 and M1 to the east.
Buckinghamshire has a resident population of approximately 506,000 people. This is expected to rise by approximately 10% by 2026. 66% of the population of Buckinghamshire are classed as being within the most affluent AB and C1 social classes, well above the UK average (ONS).
Buckingham University was awarded the Times University of the Year for Teaching Quality in 2016 and is ranked 38 overall out of all 129 UK universities. It boasts over 2,500 students and was ranked 1st out of 129 universities for student satisfaction in 2018 (The Complete University Guide).
Over the last 20 years the average house values in Buckingham have increased by over 230% (Zoopla).
LOCATIONThe property is situated in a highly prominent corner location at the junction of London Road and Chandos Road. London Road is a main arterial route into Buckingham leading from the A421 into the centre of the town. The surrounding area is dominated by residential dwellings as well as the George Grenville Academy, Buckingham School and Buckingham University.
DESCRIPTION The property comprises a purpose built single story unit of portal frame construction with brick elevations under a pitched roof.
The premises comprise a ground floor supermarket with a 15 space car park.
TENUREThe property is held freehold.
ACCOMMODATIONThe property has the following dimensions and gross internal floor areas:
Gross Frontage 29 ft 7 ins 9.01 m
Ground Floor 4,528 sq ft 420.66 sq m
Total 4,528 sq ft 420.66 sq m
■ Buckingham is an affluent and attractive university town in Buckinghamshire
■ Highly prominent trading location in a densely populated area
■ Well secured to Sainsbury’s Supermarkets Limited
■ RPI linked rent reviews
■ Offers in excess of £1,475,000
■ A purchase at this level will show a net initial yield of 5.5% on the anticipated reviewed rent after normal purchaser’s costs
INVESTMENT CONSIDERATIONS
Buckingham, Chandos Road, MK18 1AL Well Secured Prominent Freehold Convenience Store Investment | Sainsbury’s Local
A303
A303A39
A487
A487 A49
A55A158
A66
A69
A595
A39
A30 A35
A34
A34
A272
A75
A9
A82
M25
M3
M23
M40
M4
M3
M27M5
M5
M50
M4
M4
M4
M48
M40
M54
M6
M69M1
M6
M6
A1(M)
A1(M)
A1(M)
A1(M)
A74 (M)
M62
M62
M74
M90
M8
M9
M8
M1
M18M1
M1
Dover
Margate
HastingsBrighton
Portsmouth
Isle of Wight
Southampton
Winchester
Bournemouth
TorquayPlymouth
Launceston
Falmouth
Newquay
Ilfracombe
Exeter
Truro
Taunton
Bristol
Swindon
Basingstoke
Guildford
Canterbury
LONDON
Cheltenham
Oxford
Gloucester
Cardiff
Pembroke
Swansea
Aberystwyt
BreconCarmarthen
Merthyr Tydfil
h
Holyhead
Wrexham
Shrewsbury
WolverhamptonBirmingham
Reading
High Wycombe
Croydon
Buckingham
Cambridge
Coventry
Leicester
Northampton
Milton Keynes
Bicester
Banbury
Bury St Edmunds
Colchester
Ipswich
Southwold
Ya
Peterborough
NottinghamDerby
Newark-on-Trent
Mansfield
ChesterfieldLincoln
Sheffield
Stoke-on-Trent
Peak District
ManchesterLiverpool
PrestonLeeds
Huddersfield
Hull
York
KendalScarborough
Middlesbrough
SunderlandNewcastle Upon Tyne
Carlisle
Glasgow
Edinburgh
Stirling
Perth
Dundee
Stranraer
Great rmouth
Norwich
GATWICK
STANSTED AIRPORT
AIRPORT
S’HAMPTONAIRPORT
HEATHROWAIRPORT
M11A1(M)
M1
M2
BUCKINGHAM TOWN CENTRE
Buckingham, Chandos Road, MK18 1AL Well Secured Prominent Freehold Convenience Store Investment | Sainsbury’s Local
TENANCYThe entire property is let to Sainsbury’s Supermarkets Limited (t/a Sainsbury’s Local) on a 15 year full repairing and insuring lease from 16th June 2014 (approximately 10.25 years unexpired) at a current rent of £77,000 per annum.
The lease is subject to five yearly RPI based upward only rent reviews capped and collared at 4% and 1%, with the next review due on 16th June 2019.
Based on the most recent RPI forecast we estimate that the reviewed rent will increase to approximately £86,285 per annum (Oxford Economics). Our clients will ‘top up’ the rent to this rate from completion until the rent review on 16th June 2019.
There is a tenant only break in the 10th year subject to 6 months prior written notice.
COVENANT INFORMATIONSainsbury’s is one of the UK’s leading food store operators currently accounting for approximately 15.4% of the UK’s total grocery market (Kantar – Oct 18). The company was founded in 1869 and currently trades from over 1,200 supermarkets and convenience stores through out the country and employs around 161,000 people.
Sainsbury’s Supermarkets Limited (company number: 3261722) reported the last three years results:
10/03/2018 11/03/2017 12/03/2016
Turnover £23,606,000,000 £23,234,000,000 £23,168,000,000
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
Sainsbury’s Supermarkets Limited have a Creditsafe rating of “73/100” – indicating a “Very Low Risk” of business failure.
ASSET MANAGEMENT OPPORTUNITIES We understand that Sainsbury’s trade well from this store. There may therefore be a future opportunity to extend the lease term and possibly remove the 2024 break clause.
There may also be the opportunity in the future to further develop the site, enhancing the retail offer and perhaps adding residential accommodation (subject to the relevant permissions).
VATThe property is elected for VAT.
EPCFull details are available on the website.
Buckingham, Chandos Road, MK18 1AL Well Secured Prominent Freehold Convenience Store Investment | Sainsbury’s Local
RETAIL RENTAL VALUEThe anticipated reversionary rent of £86,285 per annum equates to a rate of approximately £19 psf GIA. This sits at a discount to other comparable stores, presenting the investment as revisionary, even following the forthcoming rent review. Please see the rental schedule below:
INVESTMENT COMPARABLESPlease see below some recent convenience store investment comparables:
Address Date Tenant Rent Rent psf
Weymouth, 67 Portland Road, Wyke Regis 2018 Tesco £85,000 £21.43
Chistlehurst, White Horse Hill April 2017 Co-op £94,000 £25.76
Loughton, Church Hill Jun-16 Sainsburys £90,000 £23.87
Iver, 9 High Street Nov-15 Co-op £100,000 £30.36
Shepherds Bush, 258-264 Goldhawk Road Jul- 15 Co-op £135,000 £34.22
Milton Keynes, Willen Centre Apr- 15 Sainsburys £95,000 £20.72
Location Tenant Term Certain Tenure Yield Date
Wraysbury COOP 15 years F/H 5.12% Feb 2019
Clapham North Sainsbury’s 11 years L/LH 4% Dec 2018
Catford Sainsbury’s 15 years L/LH 4.5% Sept 2018
Weymouth COOP + Papa John’s 15 years F/H 5.58% Oct 2018
Farnham CommonSainsbury’s plus
office above5 years F/H 5.35% May 2018
SAINSBURY’S
PROPOSAL Offers in excess of £1,475,000 (one million, four hundred and seventy five thousand pounds) are sought for the freehold interest.
A purchase at this level will reflect a net initial yield of 5.5% assuming the rent rises to £86,285 per annum following the June rent review (Oxford Economics), after allowing for normal purchaser’s costs.
Please note that all prospective purchasers will need to be verified for anti-money laundering purposes prior to a sale contract being agreed.
CONTACTSTo view copies of the lease, information on title, the EPC and other information please visit our web site www.hrhretail.com/property/buckingham
To register interest and to carry out an internal inspection please contact:
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 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. April 2019.
Jeremy Lovell jeremy@hrhretail.com T 020 7908 7037 M 07949 619657
Jack Brown jack@hrhretail.com T 020 7908 7032 M 07969 291660
HRH Retail Portland House 4 Great Portland Street, London W1W 8QJ
T: 020 7499 5399 | F: 020 7580 6291 | www.hrhretail.com
Buckingham, Chandos Road, MK18 1ALWell Secured Prominent Freehold Convenience Store InvestmentSainsbury’s Local
Plan shown for indicative purposes only
BUCKINGHAM TOWN CENTRE
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