442/446 HOLLOWAY ROAD, LONDON N7 6LX

Transcription

1 442/446 HOLLOWAY ROAD, LONDON N7 6LX PRIME REVERSIONARY LONDON FOODSTORE RETAIL INVESTMENT

2 INVESTMENT SUMMARY The North London suburb of Holloway is an established residential and commercial centre, located within the London Borough of Islington, approximately 3 miles (4.8 km) north east of Central London. Substantial well configured retail store of approximately 25,000 sq ft with potential to convert the upper floors to residential use. Well secured to Iceland until September Excellent future reversionary rental prospects. Our clients are seeking offers in excess of 4.7m (Four Million, Seven Hundred Thousand Pounds), which reflects a net initial yield of 5.03% and a reversionary yield of 5.51%, assuming purchasers costs at 5.8%. 442/446 HOLLOWAY ROAD, LONDON N7 6LX PRIME REVERSIONARY LONDON FOODSTORE RETAIL INVESTMENT 2

3 LOCATION The North London suburb of Holloway is an established residential and commercial centre located within the London Borough of Islington, approximately 3 miles (4.8 km) north east of Central London. The main A1 Holloway Road provides direct and convenient road access to Central London and the M25 Motorway. The area is also well served by public transport with Archway (Northern Line) and Holloway Road (Piccadilly Line) London Underground Stations and Holloway Mainline Station all located within the immediate vicinity. Holloway Road is also well served by the London bus network with numerous bus routes alighting immediately outside the property. The Borough has a resident population of 175,797 (Source: 2001 Census) and a population within a 20 km radius of the Centre of 5,968,372. RETAILING IN HOLLOWAY Retail provision in Holloway is estimated at approximately 630,000 sq ft (58,529 sq m) and is predominantly focused along Holloway Road and Seven Sisters Road. These roads form a dominant shopping location in Islington known as Nags Head Town Centre, primarily serving the immediate surrounding areas of Holloway, Archway and Finsbury Park. The prime retailing in the area is centred on the Holloway Road which is further complimented by the Nags Head Shopping Centre, which is anchored by the James Selby Department Store and Morrisons Supermarket and a two level free 310 space car park. Other key retailers with representation within the vicinity include Waitrose, Marks & Spencer, Mothercare, Holland & Barrett, New Look, Peacocks, Clarks, Argos and Superdrug. 442/446 HOLLOWAY ROAD, LONDON N7 6LX PRIME REVERSIONARY LONDON FOODSTORE RETAIL INVESTMENT 3

4 GOAD N 442/446 HOLLOWAY ROAD, LONDON N7 6LX PRIME REVERSIONARY LONDON FOODSTORE RETAIL INVESTMENT 4

5 SITUATION The property is situated in a 100% prime trading location on Holloway Road, close to its junction with Seven Sisters Road. The property is adjacent to Mothercare, whilst in close proximity to Marks & Spencer, Boots and New Look. DESCRIPTION The property comprises a 5 storey mid terraced property, arranged on ground, basement and three upper floors. The ground and basement floors are connected internally whilst the upper floors are accessed externally at the rear of the premises by an integrated staircase. The property has the benefit of rear servicing off Hertslet Road, adjacent to the Nags Head Shopping Centre. ACCOMMODATION We have inspected the property and measured in accordance with the 6th Edition of the RICS Code of Measuring Practice and we set out our floor areas below: Gross Frontage 49 ft 6 ins (15.08 m) Net Frontage 47 ft 0 ins (14.32 m) Internal Width 48 ft 5 ins (14.75 m) Shop/Built Depth 151 ft 3 ins (46.90 m) Ground Floor Sales 8,150 sq ft ( sq m) ITZA 2,159 units Basement Ancillary 7,363 sq ft ( sq m) First Floor 7,239 sq ft ( sq m) Second Floor 2,204 sq ft ( sq m) Third Floor 408 sq ft (37.90 sq m) Total Area 25,364 sq ft (2, sq m) The upper floors are accessed from an enclosed external staircase to the rear of the property and have no internal access. The floors are unoccupied and part of the first floor is used for air conditioning plant. 442/446 HOLLOWAY ROAD, LONDON N7 6LX PRIME REVERSIONARY LONDON FOODSTORE RETAIL INVESTMENT 5

6 TENURE The property is held freehold. TENANCY The entire property is let to Iceland Foods Limited on a Full Repairing and Insuring lease for a term of 15 years from 29th September 2010 at a current rent of 220,000 pax. The property is subject to a rent review on 29th September 2015 with a fixed rental increase to 250,000 pax. The property is subject to 5 yearly upward only rent reviews to the open market rental value thereafter. Our clients propose to top up the rent to 250,000 pax which becomes effective on 29th September COVENANT INFORMATION Iceland Foods Limited have an Equifax 2015 credit score of A, representing excellent. A summary of their accounts can be set out as follows: 28/03/2014 GBP /03/2013 GBP /03/2012 GBP 000 Turnover 2,689,000 2,605,000 2,553,000 Pre-Tax Profit 161,000 N/A 174,000 Net Worth 656, , , /446 HOLLOWAY ROAD, LONDON N7 6LX PRIME REVERSIONARY LONDON FOODSTORE RETAIL INVESTMENT 6

7 RENTAL VALUE In our opinion, the fixed increase of 250,000 pax devalues to a Zone A rent of on the basis that 3.50 per sq ft is applied to the basement area and 3.00 to half of the first floor area. We have applied no value to the second or third floors. The estimated rental value as of today s date would lie in the region of 274,000 pax, which devalues to a Zone A rent of 110 per sq ft. The most salient rental evidence can be set out as follows: 412 HOLLOWAY ROAD (BOOTS) Open market letting September 2013 for a term of 10 years at a rent of 75,000, reflecting a Zone A rent of 113 per sq ft. 416/418 HOLLOWAY ROAD (NEW LOOK) Lease renewal 7th March 2014 has been agreed at a rent of 115,000 pax, reflecting a Zone A rent of 105 per sq ft. The rent increased from a previous level of 85,000 pax. 408 HOLLOWAY ROAD (SANTANDER) Lease renewal June 2014 agreed at a rent of 77,500pax which reflects a Zone A rent of 112 per sq ft. VAT The property is registered for VAT and therefore VAT will be payable on the purchase price and dealt with by way of a TOGC. EPC The property has an EPC rating of C62 and is available upon request. 442/446 HOLLOWAY ROAD, LONDON N7 6LX PRIME REVERSIONARY LONDON FOODSTORE RETAIL INVESTMENT 7

8 PROPOSAL We are instructed to seek offers in excess of 4,700,000 (Four Million, Seven Hundred Thousand Pounds), subject to contract and exclusive of VAT for the benefit of our client s freehold interest. A purchase at this level reflects the following yield profile net of purchasers costs at 5.8%: Initial Yield: 5.03% Reversionary Yield: 5.51% Equivalent Yield: 5.39% True Equivalent Yield: 5.57% FURTHER INFORMATION For further information or to arrange an inspection, please contact: Philip Hay phay@jacksoncriss.co.uk Designed by TCC 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 or 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. JC0062. February /446 HOLLOWAY ROAD, LONDON N7 6LX PRIME REVERSIONARY LONDON FOODSTORE RETAIL INVESTMENT 8