East Ham - 104-106 HigH strEEt NortH
East Ham - 104-106 High Street North High yielding retail unit with two vacant residential flats Sat Nav Ref: E6 2HT
Investment Considerations • • • • • • • • • •
East Ham provides the foremost retail offering in the London borough of Newham High Street North is host to several popular national multiples including Primark, Argos, Wilko’s, JD Sports and Sports Direct Let to Sam 99p Limited for a term expiring 1st October 2019. The property comprises ground floor sales accommodation as well as two large residential apartments over first and second floors, with separate access. Low capital value of £176 per sq ft Opportunity to increase income via the letting of two vacant residential units Leasehold, with fixed ground rent of £600 per annum. Total Current Income: £80,000 per annum Price: £720,000 Net Initial Yield: 10.50%
2 | Fawcett Mead East Ham – 104-106 High Street North
Retail property expertise
Subject Property
High Street North hosts several popular national multiples including Primark, Argos, Wilko’s, JD Sports and Sports Direct Location East Ham is a suburban district of London, and part of the London Borough of Newham. The district is located seven miles east of the City of London, midway between West Ham and Barking. The area is well connected to the Greater London railway network. The District and Hammersmith & City Lines provide regular services through East Ham tube station. Furthermore, road connections are good with the A13 lying to the south and the A406 (North Circular Road) running parallel to the east.
3 | Fawcett Mead East Ham – 104-106 High Street North
Demographics The resident population of East Ham is approximately 76,186 (Source: Experian), which makes the East Ham constituency the second largest by population size in the UK, which helps provide consistently high footfall in this popular shopping destination. The London Borough of Newham displays a very young and diverse population. Newham as a whole is expected to benefit significantly over the next decade from a particularly high proportion of working age individuals.
Retail property expertise
Retailing in East Ham High Street North is considered the foremost shopping destination in East Ham, therefore attracting many popular national retailers, including:
The prime retail pitch is part pedestrianised and stretches from the junction with Clements Road to the north and Barking Road to the south.
Situation The property comprises a well configured retail unit at ground with residential upper parts benefiting from self-contained access. The property is situated in the 100% prime retail pitch on High Street North.
Description The property is arranged on ground, first and second floors. The ground floor offers well configured retail accommodation, with ancillary space to the rear. The uppers provide for two large two bedroom apartments. The property is of traditional construction with full height glazed frontage at ground floor level. Access for the residential uppers is via a separate entrance at the rear of the property.
4 | Fawcett Mead East Ham – 104-106 High Street North
Retail property expertise
Tenure
Accommodation Floor
Use
sq ft
sq m
Leasehold – The property is held on a long leasehold expiring 2044, leaving 28 years unexpired.
Ground
Sales
2,388
221.85
There is a current ground rent fixed at £600 per annum.
Ancillary
262
24.34
ITZA
1,189
First
Residential
702
65.21
Second
Residential
722
67.07
4,074
368.47
Total (NIA)
5 | Fawcett Mead East Ham – 104-106 High Street North
Tenancies The property is let to Sam 99p Limited for a term of 10 years commencing 2nd October 2009 and expiring on 1st October 2019. The total rent is £80,000 per annum. We understand the residential accommodation at first and second floors is not demised to the retail tenant.
Retail property expertise
Covenant Sam 99p Limited have filed the last three years reported abbreviated accounts:
Turnover
31/08/2015
31/08/2014
31/08/2013
£16,684,966
£16,121,162
£14,562,108
Pre Tax Profit
£152,038
£81,235
£83,675
Net Worth
£538,106
£419,413
£352,844
Rental Evidence We calculate that the current passing rent equates to £75 Zone A, allowing a 10% discount for reduced ancillary space at ground floor level. The rental tone in this pitch displays clear signs of rental growth, with recent evidence reaching £87.50 Zone A. Given such evidence it is our opinion that the subject property has excellent prospects of rental growth.
Residential Opportunity The vacant residential units offer the opportunity to increase the income from the property. We understand that two bed residential units currently let for c.£1,350 per calendar month. If both units were let on assured shorthold tenancies, we would anticipate an additional £32,400 per annum from the vacant residential.
6 | Fawcett Mead East Ham – 104-106 High Street North
Retail property expertise
EPC A copy of the EPC is available upon request.
VAT The property has been elected for VAT purposes. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
Proposal We are instructed to seek offers of £720,000 (Seven Hundred and Twenty Thousand Pounds) subject to contract and exclusive of VAT, for our client’s leasehold interest in the property. A purchase at this level will reflect a net initial yield of 10.50%, assuming purchasers costs at 5.34%.
Further information For further information or to arrange an inspection, please contact the sole agent: Tom Heptonstall 020 7182 7484 07714 255 245 [email protected] Joe Baio 020 7182 7489 07515 889 649 [email protected] www.fawcettmead.co.uk Misrepresentation Act: The particulars in this brochure are believed to be correct, but accuracy cannot be guaranteed and they are expressly excluded from any contract. Designed by Graphic Outlines Ltd 2016 SUBJECT TO CONTRACT
Investment Considerations • • • • • • • • • •
East Ham provides the foremost retail offering in the London borough of Newham High Street North is host to several popular national multiples including Primark, Argos, Wilko’s, JD Sports and Sports Direct Let to Sam 99p Limited for a term expiring 1st October 2019. The property comprises ground floor sales accommodation as well as two large residential apartments over first and second floors, with separate access. Low capital value of £176 per sq ft Opportunity to increase income via the letting of two vacant residential units Leasehold, with fixed ground rent of £600 per annum. Total Current Income: £80,000 per annum Price: £720,000 Net Initial Yield: 10.50%
2 | Fawcett Mead East Ham – 104-106 High Street North
Retail property expertise
Subject Property
High Street North hosts several popular national multiples including Primark, Argos, Wilko’s, JD Sports and Sports Direct Location East Ham is a suburban district of London, and part of the London Borough of Newham. The district is located seven miles east of the City of London, midway between West Ham and Barking. The area is well connected to the Greater London railway network. The District and Hammersmith & City Lines provide regular services through East Ham tube station. Furthermore, road connections are good with the A13 lying to the south and the A406 (North Circular Road) running parallel to the east.
3 | Fawcett Mead East Ham – 104-106 High Street North
Demographics The resident population of East Ham is approximately 76,186 (Source: Experian), which makes the East Ham constituency the second largest by population size in the UK, which helps provide consistently high footfall in this popular shopping destination. The London Borough of Newham displays a very young and diverse population. Newham as a whole is expected to benefit significantly over the next decade from a particularly high proportion of working age individuals.
Retail property expertise
Retailing in East Ham High Street North is considered the foremost shopping destination in East Ham, therefore attracting many popular national retailers, including:
The prime retail pitch is part pedestrianised and stretches from the junction with Clements Road to the north and Barking Road to the south.
Situation The property comprises a well configured retail unit at ground with residential upper parts benefiting from self-contained access. The property is situated in the 100% prime retail pitch on High Street North.
Description The property is arranged on ground, first and second floors. The ground floor offers well configured retail accommodation, with ancillary space to the rear. The uppers provide for two large two bedroom apartments. The property is of traditional construction with full height glazed frontage at ground floor level. Access for the residential uppers is via a separate entrance at the rear of the property.
4 | Fawcett Mead East Ham – 104-106 High Street North
Retail property expertise
Tenure
Accommodation Floor
Use
sq ft
sq m
Leasehold – The property is held on a long leasehold expiring 2044, leaving 28 years unexpired.
Ground
Sales
2,388
221.85
There is a current ground rent fixed at £600 per annum.
Ancillary
262
24.34
ITZA
1,189
First
Residential
702
65.21
Second
Residential
722
67.07
4,074
368.47
Total (NIA)
5 | Fawcett Mead East Ham – 104-106 High Street North
Tenancies The property is let to Sam 99p Limited for a term of 10 years commencing 2nd October 2009 and expiring on 1st October 2019. The total rent is £80,000 per annum. We understand the residential accommodation at first and second floors is not demised to the retail tenant.
Retail property expertise
Covenant Sam 99p Limited have filed the last three years reported abbreviated accounts:
Turnover
31/08/2015
31/08/2014
31/08/2013
£16,684,966
£16,121,162
£14,562,108
Pre Tax Profit
£152,038
£81,235
£83,675
Net Worth
£538,106
£419,413
£352,844
Rental Evidence We calculate that the current passing rent equates to £75 Zone A, allowing a 10% discount for reduced ancillary space at ground floor level. The rental tone in this pitch displays clear signs of rental growth, with recent evidence reaching £87.50 Zone A. Given such evidence it is our opinion that the subject property has excellent prospects of rental growth.
Residential Opportunity The vacant residential units offer the opportunity to increase the income from the property. We understand that two bed residential units currently let for c.£1,350 per calendar month. If both units were let on assured shorthold tenancies, we would anticipate an additional £32,400 per annum from the vacant residential.
6 | Fawcett Mead East Ham – 104-106 High Street North
Retail property expertise
EPC A copy of the EPC is available upon request.
VAT The property has been elected for VAT purposes. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
Proposal We are instructed to seek offers of £720,000 (Seven Hundred and Twenty Thousand Pounds) subject to contract and exclusive of VAT, for our client’s leasehold interest in the property. A purchase at this level will reflect a net initial yield of 10.50%, assuming purchasers costs at 5.34%.
Further information For further information or to arrange an inspection, please contact the sole agent: Tom Heptonstall 020 7182 7484 07714 255 245 [email protected] Joe Baio 020 7182 7489 07515 889 649 [email protected] www.fawcettmead.co.uk Misrepresentation Act: The particulars in this brochure are believed to be correct, but accuracy cannot be guaranteed and they are expressly excluded from any contract. Designed by Graphic Outlines Ltd 2016 SUBJECT TO CONTRACT
