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London, 421 Lordship Lane, N17 6AGWell Secured Prominent Freehold Convenience Store InvestmentSainsbury’s Local
LORDSHIP LANELordship Lane is located within the London Borough of Harringay in north London. Lordship Lane is the main arterial link road connecting Wood Green, Tottenham High Road, Bruce Grove and White Hart Lane.
Lordship Lane is approximately 4 miles north of central London. Its nearest transport links include Wood Green Underground Station (Picadilly Line) and Bruce Grove Overground Station. Wood Green Station provides a direct link to the West End with services to Piccadilly Circus taking approximately 25 minutes.
The London Borough of Harringay has a resident population of approximately 270,000 people. Over the next 10 years the population of the Borough is expected to increase by approximately 11%. The Borough has a higher than average proportion of those people within the highest AB and C1 social groups in the UK.
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.
LOCATIONThe property is situated in a busy and highly prominent corner location at the junction of Lordship Lane (A109) and Downhills Way (B155). The surrounding area is dominated by residential dwellings.
Lordship Lane is the main arterial link road connecting Wood Green, Tottenham High Road, Bruce Grove and White Hart Lane.
DESCRIPTION The property comprises a single storey convenience store of frame construction with glazed and brick elevations under a flat roof.
TENUREThe property is held freehold.
ACCOMMODATION The property has the following dimensions and gross internal floor areas:
■ Affluent north London suburb and busy thoroughfare
■ Highly prominent trading location in a densely populated area
■ Well secured to Sainsbury’s Supermarkets Limited
■ The property is NOT elected for VAT
■ Offers in excess of £1,285,000■ A purchase at this level will show a net initial
yield of 5.5% after normal purchaser’s costs, assuming the rent rises to £75,000 pa following the outstanding rent review negotiations.
INVESTMENT CONSIDERATIONS
London, 421 Lordship Lane, N17 6AGWell Secured Prominent Freehold Convenience Store Investment | Sainsbury’s Local
Gross Frontage 55 ft 6 ins 16.92 m
Net Frontage 54 ft 9 ins 16.38 m
Splay/Return Frontage 38 ft 6 ins 11.74 m
Ground Floor 3,718 sq ft 345.41 sq m
Total 3,718 sq ft 345.41 sq m
M25
M11
M25
M25
M25
M25
M40
M4
M3
M23
M20
A1M
M1
M26
Croydon
Epsom
Richmond
Potters Bar
Twickenham
Woking
Weybridge
Guildford
Bromley
Dartford
Dorking
Redhill
Sevenoaks
Tonbridge
Slough CentralLondon
Wembley
Harrow
Sainsbury’s
Sutton
Wimbledon
Chigwell
Walthamstow
Enfield
Stratford
Wood Green
Finsbury Park
Holloway
Watford
Sidcup
Orpington
Caterham
TENANCYThe entire property is let to Sainsbury’s Supermarkets Ltd for a term of 15 years from 16th July 2012 (approximately 7.8 years unexpired) at a current passing rent of £70,000 per annum.
The lease benefits from 5 yearly upwards only rent reviews to open market rental value. The July 2017 rent review is currently being negotiated, and it is expected that the rent will rise to approximately £75,000 per annum. The next review is then due on 16th July 2022.
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 throughout the country and employs around 161,000 people.
Sainsbury’s Supermarkets Limited (company number: 3261722) reported the last three years results:
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, which may provide the opportunity to re-gear the lease and extend the term length.
There may also be the opportunity in the future to further develop the site and build additional floors above the store (subject to the relevant permissions).
VATThe property is NOT elected for VAT.
EPCThe property has an EPC rating of B-44.
London, 421 Lordship Lane, N17 6AGWell Secured Prominent Freehold Convenience Store Investment | Sainsbury’s Local
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
RENTAL VALUEThe anticipated July 2017 reviewed rent of £75,000 per annum would equate to a rate of approximately £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:
INVESTMENT COMPARABLESPlease see below some recent convenience store investment comparables.
London, 421 Lordship Lane, N17 6AGWell Secured Prominent Freehold Convenience Store Investment | Sainsbury’s Local
Address Date Tenant Rent Rent psf
Ravenscourt Park, 108-111 Arches Apr 19 Sainsbury’s £105,000 £29.47
Battersea, Battersea Exchange Apr 19 Sainsbury’s £125,000 £30.40
Bromley, 37-41 High Street Jan 19 Sainsbury’s £100,000 £26.39
Wraysbury, 31 Windsor Road Jan 19 COOP £92,500 £28.46
Surbiton, 120 Villiers Avenue, London Sep 18 COOP £140,000 £28.57
Twickenham, 224-226 Hampton Road Sep 18 COOP £115,000 £33.10
Location Tenant Term Certain Tenure Yield Date
Twickenham COOP 15 years F/H 4.79% Feb 19
Caledonian Road Iceland 3 years F/H 3.6% Feb 19
Clapham North Sainsbury’s 11 years L/LH 3.99% Dec 18
East Dulwich M&S 15 years F/H 4.5% Oct 18
Catford Sainsbury’s 15 years L/LH 4.25% Sep 18
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
PROPOSAL Offers in excess of £1,285,000 are sought for the freehold interest.
A purchase at this level will reflect a net 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.
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 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 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:
Or our joint agents TDB Real Estate:-
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. September 2019.
Jack Brown [email protected] T 020 7908 7032 M 07969 291660
Jeremy Lovell [email protected] T 020 7908 7037 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
London, 421 Lordship Lane, N17 6AGWell Secured Prominent Freehold Convenience Store InvestmentSainsbury’s Local
Mark Brown [email protected] T 01604 604020 M 07730 416964
TDB Real Estate 8 Queensbridge Bedford Road, Northampton, NN4 7BF
T: 01604 604020 | www.tdbre.co.ukWALPOLE ROAD
DOWNHILLS WAY (B155)
THE ROUNDWAY (A1080)
WOOD GREEN
BRUCE GROVE &
WHITE HART LANE
LORDSHIP LANE (A109)
