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