75- 89 WALLIS ROAD HACKNEY WICK LONDON E9 5LN - Allsop
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
75 - HACKNEY WICK WALLIS ROAD 89 LONDON E9 5LN VIRTUAL FREEHOLD CONVENIENCE STORE LET TO SAINSBURY’S SUPERMARKETS LTD ON A NEW 15 YEAR LEASE
Current Site (July 2020)
Computer Generated Image
INVESTMENT CONSIDERATIONS
Hackney Wick is a rapidly improving East London Lease due to commence in September 2020 Virtual freehold 999 year lease
neighbourhood having benefitted from an influx of
new residential and commercial accommodation
Close proximity to Hackney Wick Railway Station Offers are sought in excess of £2,350,000
(1 min walk) (Two Million Three Hundred and Fifty
Situated on the eastern side of Wallis Road with
Agreement for Lease in place to Sainsbury’s Thousand Pounds) subject to contract
prominent return frontage onto Berkshire Road
Supermarkets Ltd for a new 15 year lease with and exclusive of VAT. A purchase at this
Ground floor convenience store totalling 4,321 sq ft a tenant only option to determine at year 10 level reflects an attractive net initial yield
forming part of a newly constructed residential
Initial rent of £125,000 p.a. (£28.92 psf) with 5 yearly of 5.00% after allowing for purchaser’s
development of 39 flats
RPI linked rent reviews with a cap at 3% per annum costs of 6.35%.
WALLIS ROAD VIRTUAL FREEHOLD CONVENIENCE STORE LET TO
SAINSBURY’S SUPERMARKETS LTD ON A NEW 15 YEAR LEASE
HACKNEY WICK, LONDON E9 5LN
LOCATION
LOCATION
Hackney Wick is a neighbourhood in Wick Overground Station which has direct making up 25% of its population. There is a
To Time
east London within the south-eastern part links to Stratford Mainline Station (Central strong creative and industrial heritage to the
of the London Borough of Hackney. Line & Jubilee Lines / Overground / Greater area which is now perceived as a destination
Highbury & Islington 10 mins
Anglia). Stratford will benefit from Crossrail for the creative industries as well as the
Hackney Wick is located approximately 5.5
which is scheduled to open late 2020 tech and media sectors. Notable office Stratford International 15 mins
miles (8.8 km) north east of Central London,
providing access into the West End. occupiers include Powster, HSSMI and WallWik
3 miles (4.8 km) east of Shoreditch and 1 mile
plus highly regarded food and beverage Oxford Circus 23 mins
(1.6 km) west of Stratford.
Hackney has a population of approximately operators including Cornerstone, Crate
This attractive residential area of east London 246,300 residents and benefits from Brewery, Truman Brewery, Foreman Kings Cross 24 mins
is well connected, being served by Hackney favourable demographics with young adults & Sons and Breakfast Club.
WALLIS ROAD VIRTUAL FREEHOLD CONVENIENCE STORE LET TO
SAINSBURY’S SUPERMARKETS LTD ON A NEW 15 YEAR LEASE
HACKNEY WICK, LONDON E9 5LN
COPPER STREE T
HACKNEY WICK REGENERATION
AD
REGENERATION AREA
RO
RO AD
RIDGE
TROWB
IR E
Hackney Wick was earmarked by the 2012 London Olympic Committee as a regeneration
SH
ERK
area and has subsequently undergone significant transformation in the last 12-18 months T
AD S
FELSTE ROAD
W ALLI S Copper Box
B
with several mixed use developments delivering thousands of new homes and a mix Arena
of retail and office commercial accommodation. 1
The property forms part of the larger Hackney Wick Central Regeneration programme, aiming
75
-
D
OA
to protect the legacy of the Queen Elizabeth Olympic Park by developing nearby areas through
89
SR
taking advantage of the existing infrastructure facilities.
LLI
WA
The scheme is expected to deliver 850 new homes, along with low-cost and affordable workspace Hackney Wick
for artists, creative and tech businesses, retail, restaurants, bars and community facilities. New routes
and public spaces will improve the area’s connectivity.
CH
AP
D
OA QUEEN’S YARD
MA
Developments within the Hackney Wick Regeneration Scheme and nearby: LI SR
AL 6 ANE
N
W ST L CA RPE NTE RS R OA D
PO
ROA
IT E 4 NE Queen
The Wallis at 75-89 Wallis Street (Subject Property) 5 Aspext, Wick Lane, E3 – 175 New homes WH
3 E PO
ST LA Elizabeth
D
– 39 new residential units and commercial space and 25,000 sq ft of commercial space. WHIT Olympic Park
on the ground floor. This is the development 2 Headquarters
6 34-38 Wallis Road – New hotel development
Rive
which the subject property forms part of.
to include 240 high quality hotel rooms,
CAD
D
R OA 7
1 UR Y
r Le
Stone Studios, Wallis Road, E9 – 110 new co-working lobby, ground floor retail, HB
HE
OGA
ROT
PS
homes and 10 affordable, plus over food and beverage space and a feature RD
eN
VEY
CO
N TE
53,000 sq ft of commercial space. restaurant at mezzanine level. DA
TT
avi
MA R
AD
RRA
RD
RO
gat
2 The Bagel Factory, White Post Lane, E9 – 7 Former BT depot 1.5 acre site – planning GO
SH G A
CE
T RE
181 warehouse style apartments and approved for four buildings with 145 high-
ion
TE LA
70,000 sq ft of commercial space. quality apartments, of which 50 will be
WA
affordable. In addition, the plans include
NE
3 Stonemasons Yard, Hepscott Street, E9 – Over
NS B
23,000 sq ft of commercial space at ground
8,700 sq ft of offices and 30 PRS residential units.
ECK
level and facilities, including parking spaces
A12
4 and cycle storage as well as a 24-hour
RO
Queens Yard, White Post Lane, E9 – 5
AD
143 new homes and over 43,000 sq ft concierge, communal garden, balconies,
of commercial space. and a residents’ viewing room.
Computer Generated Image Computer Generated Image
Stone Studios The Bagel Factory Stonemasons Yard Queens Yard
WALLIS ROAD VIRTUAL FREEHOLD CONVENIENCE STORE LET TO
SAINSBURY’S SUPERMARKETS LTD ON A NEW 15 YEAR LEASE
HACKNEY WICK, LONDON E9 5LN
SITUATION
The property is situated on the corner
of Wallis Road benefitting from a return
frontage onto Berkshire Road within 150
yards to the north of Hackney Wick Station.
The A12 arterial road is 0.2 miles to the
west of the property providing access to
Central London and the M25 motorway.
Hackney Wick Station is currently undergoing
refurbishment to include a new entrance
facing onto Wallis Road and the property
itself. This is expected to dramatically
increase the already high footfall.
Currently the zenith of all things creative,
Hackney has attracted a large amount of
attention in recent years, as its strong industrial
and creative heritage is seen as one of
London’s most vibrant creative districts.
The property is situated adjacent to the
International College of Musical Theatre
and in the vicinity of a large number
of independent creative and tech
companies including Lion Works, Liquid
Studios, Woodmill Studios Flipout HQ,
Vibes Studios and Powster.
DESCRIPTION
The property comprises a ground floor
convenience store (GIA 4,321 sq ft)
which forms part of a newly constructed
residential development (39 units including
studio, one, two and three bedroom
flats) with approximately 12,000 sq ft of
commercial A1 / B1 / D1 accommodation.
The property benefits from a prominent
frontage onto Wallis Road with a return
frontage onto Berkshire Road.
To the rear of the property, an attractive
courtyard will link the subject property to
the additional commercial space.
Computer Generated Image
WALLIS ROAD VIRTUAL FREEHOLD CONVENIENCE STORE LET TO
SAINSBURY’S SUPERMARKETS LTD ON A NEW 15 YEAR LEASE
HACKNEY WICK, LONDON E9 5LN
TENURE
Virtual freehold by virtue of a new 999 year lease from Practical
Completion, which is expected to occur in September 2020,
at a peppercorn ground rent.
TENANCY
The property is let by way of Agreement for Lease to Sainsbury’s
Supermarkets Limited for a term of 15 years (with a tenants only
break option in year 10) from Practical Completion at a rent of
£125,000 per annum (£28.92 psf), subject to a measured survey.
Practical completion is due in September 2020 at which point
the tenant will commence their internal fit out.
The lease provides for five yearly upward only RPI linked rent reviews
Computer Generated Image Computer Generated Image
subject to a cap of 3%, calculated on a compound annual basis.
COVENANT
Founded in 1869, Sainsbury’s has grown exponentially Sainsbury’s Local remains a thoroughly profitable
11 Mar 2017 10 Mar 2018 9 Mar 2019
to become the second largest food retailers in the segment of the Sainsbury’s brand and in 2018,
UK. Across 2,400 stores, Sainsbury’s have 28.1 million the ‘Local’ sales were up 7.5%, making it the best Turnover (£) 23,234,000,000 23,606,000,000 24,030,000,000
customer transactions per week across the Sainsbury’s performing channel within its business, including
Profit before tax (£) 342,000,000 187,000,000 174,000,000
and Argos channels. In the Financial Services business, online (up 6.3%).
they have 2.1 million active Sainsbury’s Bank customers Total Net Worth (£) 4,353,000,000 4,562,000,000 5,669,000,000
and 2.2 million Argos Financial Services customers.
IN 2019/2020
General
Achieved
£255M £359M 56%
Merchandise
10.5%
sales up
increase
in grocery sales
7.2%
(including Argos sales
statutory profit
before tax –
up by 26 %
donated
to several
chairites
increase on Retail
operating cash flow
from 2018
up 10.7 per cent)
WALLIS ROAD VIRTUAL FREEHOLD CONVENIENCE STORE LET TO
SAINSBURY’S SUPERMARKETS LTD ON A NEW 15 YEAR LEASE
HACKNEY WICK, LONDON E9 5LN
INVESTMENT RATIONALE
INVESTMENT COMPARABLES
MARKET COMMENTARY
Property Sale Date Tenant Earliest NIY Sale Price
Significant rise in investor demand for Supermarkets since Determination
the start of the Covid pandemic with £322M Supermarkets New Bath Road, Charvil, Reading May 20 Co-Operative 7.25 years 6.00% £2,300,000
sold since March 2020.
Loampit Vale, Lewisham, SE13 June 20 Sainsbury’s Local 10.5 years 5.10% £1,750,000
One of the few sectors to benefit from lockdown with
supermarket sales up 14.3% in the 12 weeks to 17 May: 1 Holborough Road, Snodland, Kent ME6 July 20 Co-Operative 9.6 years 5.25% £1,550,000
- the fastest since records began according to research
company Kantar. 44/48 High Street, Whitstable, Kent Feb 19 Sainsbury’s Local 7.8 years 5.34% £1,350,000
Investors see supermarkets as a safe haven as unlike some Conisholme Road North Somercotes Feb 19 Co-Operative 14.8 years 5.27% £1,430,000
national retailers supermarket tenants have continued to
pay rent during Covid. 99-407 Clapham Road, SW9 Dec 18 Sainsbury’s Local 11 years 3.99% £2,600,000
Supermarket trade expected to remain strong as Middlegate Manby, Grimoldby, Lincolnshire Jul 18 Co-Operative 14.8 years 4.78% £1,420,000
consumers are restricted in their use of restaurants,
bars and catering businesses even after the restrictions 62 High Street, London, SW19 2BY Jul 18 Co-Operative 14.4 years 4.75% £1,730,000
are lifted.
Co-Op, Stoke Gifford, Bristol Jun 18 Co-Operative 10.6 years 5.12% £2,200,000
The rise of in-home eating, and the ‘treat’ culture has
resulted in consumers spending more on luxury and good
quality goods to consume at home, often bought from
a supermarket.
Investor demand has strengthened for long income assets
during Covid and the yield gap between Supermarkets
let on shorter leases and those let on longer leases has
widened.
Supermarket investments let on long leases have
achieved record yields during Covid.
VAT ANTI-MONEY-LAUNDERING
The property is elected for VAT and we A successful bidder will be required to provide the usual
would expect the transaction to be information to satisfy the AML requirements when Head
treated as a Transfer of a Going Concern of Terms are agreed.
(TOGC).
DATAROOM
EPC For access to the Allsop dataroom please use the
Please see dataroom. following link:
https://datarooms.allsop.co.uk/register/hackneywick
PROPOSAL
Offers are sought in excess of £2,350,000 (Two Million Three
Hundred and Fifty Thousand Pounds) subject to contract
and exclusive of VAT. A purchase at this level reflects an
attractive net initial yield of 5.00% after allowing for purchaser’s
costs of 6.35%.
For further information or to make arrangements for viewing please contact:
Andrew Wise Gergo Petrovics Jonathan Cuthbert Jamie Mackenzie
07535 045 149 07961 234 029 020 7614 0901 020 8509 4404
andrew.wise@allsop.co.uk gergo.petrovics@allsop.co.uk jon.cuthbert@strettons.co.uk jamie.mackenzie@strettons.co.uk
allsop.co.uk strettons.co.uk
Misrepresentation Act: 1. Allsop LLP and Strettons on its own behalf and on behalf of the instructing party of this portfolio whose agent Allsop and Strettons is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to
the property are to be relied on as statements or representations of fact; and (c) the instructing party does not make or give, and neither Allsop or Strettons nor any of their members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only
representations, warranties, undertakings and contractual obligations to be given or undertaken by the instructing party are those contained and expressly referred to in the written contract for sale or agreement for lease between the instructing party and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised
to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry
out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design: Command D - www.commandHQ.co.uk 07.20
You can also read
