freehold supermarket investment

C O -O P E R AT I V E G R O U P F O O D L I M I T E D 224-226 H A M P TO N R OA D, T W I C K E N H A M T W2 5N J

Freehold Supermarket Investment

224-226 HAMPTON ROAD, T WICKENHAM T W2 5NJ

CGI

2CO-OPERATIVE SUPERMARKET INVESTMENT 224-226 HAMPTON ROAD, T WICKENHAM T W2 5NJ

B 3 5 8 / S I X T H C R O S S R O A D

B 3 5 8 / S O U T H R O A D

A311

/ HA

MP

TO

N R

OA

D

TO T WICKENHAM


Indicative internal photograph

Investment Summary• Prominent convenience retail parade and ground rent investment

• New build parade comprising a convenience supermarket, retail unit and 3 residential ground rents

• Located in an affluent London commuter town

• Well configured supermarket providing 3,500 sq ft over ground and basement

• Let to Co-Operative Group Food Limited – Undoubted Covenant D&B rated 5A1

• New 15 year lease at £100,000 per annum

• Five yearly upwards only rent reviews linked to RPI compounded – collared and capped at 1% and 4% per annum

• Three apartments let on new 250 year leases producing £1,050 per annum with 5 yearly RPI reviews

• Retail unit let to local tenant at £14,800 per annum

• Total net rent of £115,850 per annum

• The property provides an AWULT of 16.09 years

• Freehold

• Offers over £2,185,000 (Subject to Contract)

• 5% Net Initial Yield


Twickenham is located 8 miles south west of central London, 4 miles from Kingston and 6 miles from Heathrow Airport. The A316 links directly to Junction 1 of the M3.

Twickenham has a population of approximately 97,000 which includes many professionals working in Central London.

Twickenham benefits from excellent communication links with the nearby Fulwell mainline station providing a service to London Waterloo in 39 minutes. Numerous bus routes also serve the location.

Twickenham is world renowned for Twickenham Stadium, the home of English Rugby with a capacity of 82,500. As well as the venue for England rugby internationals, the stadium hosts many other sporting events, concerts and conferences attracting tens of thousandsto the town on a regular basis.

Location Twickenham is located within the affluent south west quadrant of Greater London within the London Borough of Richmond-upon-Thames.

L O N D O N

E D G W A R E

H A R R O W

C R O Y D O N

B R O M L E Y

T W I C K E N H A M

K I N G S T O NU P O N T H A M E S

L E A T H E R H E A D

W O K I N G

F A R N B O R O U G H

W O K I N G H A M

M A I D E N H E A D

H E A T H R O WA I R P O R T

S L O U G H

W E M B L E Y

L O N D O N

E D G W A R E

H A R R O W

C R O Y D O N

B R O M L E Y

T W I C K E N H A M

K I N G S T O NU P O N T H A M E S

L E A T H E R H E A D

W O K I N G

F A R N B O R O U G H

W O K I N G H A M

M A I D E N H E A D

H E A T H R O WA I R P O R T

S L O U G H

W E M B L E Y

M3

M3

M3

M4

M1

M4

M4

M25

A33 A3

A3

A3

A40

A40

A1

A2

A12

A13

A20

A23

A24

A23

A30

A406

A503

A102

A232

A217

A240

A243

A331

A205

A214

A312

A404

A406

M25

M25

M25

M40

A404(M)

A329(M)


Situation

CHERTSEY R

D

HAMPTON CT RD

GREAT SOUTH-WEST RD

LONDON RD

CO

UNTRY WAY

S CIRCULAR ROAD

RO

EHA

MP

TON LN

Strawberry Hill

Hounslow

Richmond

Fulwell

Teddington

Hampton

Strawberry Hill

TwickenhamTwickenhamWhittonWhitton

Fulwell

Hampton

Hampton Court

Kempton Park

Feltham

Heathrow T4 Hounslow

Richmond

St MargaretsSt Margarets

Wimbledon

New MaldenNew Malden

Kempton Park

Feltham

Heathrow T4

Heathrow T2&3Heathrow T2&3Heathrow T5Heathrow T5

Hampton Court

WimbledonTeddington

A P E XR E T A I L P A R K

H A M P T O N C O U R TP A L A C E

R I C H M O N DP A R K

I V Y B R I D G ER E T A I L P A R K

T W I C K E N H A MS T A D I U M

R I C H M O N DP A R K

A P E XR E T A I L P A R K

H A M P T O N C O U R TP A L A C E

I V Y B R I D G ER E T A I L P A R K

T W I C K E N H A MS T A D I U M

H E AT H R O W A I R P O R TH E AT H R O W A I R P O R T

C E N T R A L L O N D O N

M3

M4

M25

M25

A30

A308A3

A3

A316

A307

A308

A4

R I V E R T H A M E S

The property is one mile to the southwest of Twickenham Town centre opposite Brouge Gastropub and immediately adjacent to a Wickes retail warehouse, Volkswagen car showroom and the award winning Squires Garden Centre.

The property occupies an extremely prominent location at the junction of Hampton Road and Sixth Cross Road forming part of a vibrant retail parade serving the densely populated residential area.


The property comprises an impressive new corner building arranged over basement, ground and two upper floors of brick construction under a pitched roof and a rear surface car park. The entire property extends to 6,964 sq ft.

Internally, Unit 1 provides an open plan supermarket over ground and basement which will be fitted out in Co-Op’s latest trading format. Externally there will be an ATM on the side elevation. To the rear of the property, accessed from Sixth Cross Road, is a surface car park with 9 spaces, 6 of which are dedicated to the Co-Op store. The property benefits from rear servicing. Unit 2 comprises a smaller format convenience store occupied by a local tenant. At first and second floors within the Freehold demise there will be three independently accessed two bedroom apartments sold on 250 year Long Leaseholds. Anticipated Practical completion will be in late September 2018.

Description


Tenancy & Accommodation

Unit Area (sq ft) Tenant Term Lease Start Rent Review Lease Expiry Rent (PSF) Comments

Unit 1(Basement: 1,300) Ground Floor: 2,200 Total: 3,500

Co-Operative Ground Food Limited 15 1/10/18 1/10/23 30/9/33 £100,000 5 yearly RPI (1-4% Collar/Cap)

Unit 2 796 Mr & Mrs Ruparel & Mr Shanmugarajah 15 15/1/10 14/1/25 £14,800 No further reviews

Flat A 872 Twickenham Assets Limited 250 1/10/18 1/10/23 30/9/68 £350 5 yearly RPI (All Items)

Flat B 907 Twickenham Assets Limited 250 1/10/18 1/10/23 30/9/68 £350 5 yearly RPI (All Items)

Flat C 889 Twickenham Assets Limited 250 1/10/18 1/10/23 30/9/68 £350 5 yearly RPI (All Items)

Total 6,964 sq ft £115,850

The property is let in accordance with the tenancy schedule below on full repairing and insuring leases.

S I T E The freehold property extends to 0.2 acres, and includes a tarmacked car park to the rear of the property.


Retail 1Basement1300sqft

(Co-op fit out)Retail 1

Basement1300sqft

(Co-op fit out)

Tenure

Basement Level

Ground Floor

S I X T H C R O S S R O A D

HA

MP

TO

N R

OA

D

The property is held Freehold.

B 3 5 8 / S I X T H C R O S S R O A D

A311

/ HA

MP

TO

N R

OA

D


Co-operative Group Food Limited (Company Number: IP26715R) is a wholly owned subsidiary of The Co-operative Group Ltd which was established in 1844 and now operates 4,500 outlets with almost 90,000 employees and has an annual turnover of £10.50 billion.

Co-operative Group Food is the UK’s 5th largest food retailer with almost 2,800 local, convenience and medium sized stores employing over 69,000 people. The company has been undertaking a rationalisation of its stores over the last 24 months with the disposal of a number of its larger stores and smaller stores (McColls disposal) with the focus on retaining and expanding the convenience stores within its estate. The company opened over a 100 new convenience stores in 2016 at a cost of £70m.

Covenant Status

Co-Operative Group Ltd 31/12/2016 31/12/2015

Turnover £9,472,000,000 £9,201,000,000

Pre Tax Pro ts £132,000,000 £23,000,000

Shareholder Fund £3,029,000,000 £2,937,000,000

Experian Delphi Rating 100 (Very Low Risk) Dun & Bradstreet Rating 5A1. Further information is available at www.co-operativefood.co.uk

A summary of Co-operative Group Limited accounts is set out below.




VAT The property has been elected for VAT purposes and the sale is intended to be treated as a Transfer of a Going Concern (TOGC). Anti-Money Laundering RegulationsIn accordance with Anti-Money Laundering Regulations, two forms of identification and confirmation of the source of funding will be required from the successful purchaser

Energy Performance CertificateTo be provided on request.

We have been instructed to seek offers in excess of £2,185,000 (Two Million One Hundred and Eighty Five Thousand Pounds) subject to contract, for our client’s freehold interest. Our client would consider offers for a combination of the different income streams. A purchase at this level reflects the following yield profile, after deduction of purchase costs:

Net Initial Yield 5% Reversionary Yield (2023): 5.65% Reversionary Yield (2028): 6.45%

We have applied an average RPI rate of 3% as an estimate of future rental growth and yield performance.

MISREP: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein is not guaranteed and is for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy. Christopher Dee, Savills, nor any of its employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable or fulfilling its intended function. Prospective tenants/ purchasers should satisfy themselves as to the fitness of such equipment for their requirements. September 2018.

F U R T H E R I N F O R M A T I O N

Adam Bullas 023 8071 [email protected]

Piers Cook 020 7877 4666 [email protected]

Proposal

Rob Steward07768 108 [email protected]

Daniel Campbell07741 593 [email protected]

Christoper Dee 315 Linen Hall 162-168 Regent Street London W1B 5TD

For further information or to arrange an inspection, please contact:

Savills (UK) Ltd33 Margaret Street London W1G 0JD

freehold supermarket investment

Documents