PRIME HIGH STREET RETAIL INVESTMENT STOKE NEWINGTON ICELAN, 142-146 HIGH STREET LON, N16 7JL
INVESTMENT CONSIATIONS Prime retail unit fronting Stoke Newington High Street. Comprises a mid-terrace period building arranged over basement, ground and two upper floors extending to 16,097 sq ft (1,495.46 sq m). Freehold. Well secured to Iceland Foods Limited (5A1 covenant) until 24th ecember 2025. Current passing rent of 100,000 per annum reflecting a low 6.21 per sq ft overall. Excellent future rental growth prospects at forthcoming rent review on 25th ecember 2015. Significant future redevelopment potential of upper parts into residential (subject to planning). Offers sought in excess of 2,225,000 (Two Million, Two Hundred and Twenty Five Thousand Pounds) subject to contract and exclusive of VAT. This reflects a net initial yield of 4.25%, after deduction of purchase costs of 5.80%. STOKE NEWINGTON ICELAN, 142-146 HIGH STREET, LON, N16 7JL
Finsbury Springfield 142-146 HIGH ST LOCATION Stoke Newington is an established residential and commercial centre located within the London Borough of Hackney, approximately 4.7 miles (7.5 km) north-east of Central London. The A10 (Stoke Newington High Street) provides direct access to the City of London 3 miles (4.8 km) A5 to the south and Junction 25 of the M25 9.3 miles (14.9 km) to the north. The area is well served by public transport with direct rail services from Stoke Newington and Rectory Road into Liverpool Street Station every 15 minutes. Numerous bus routes are also in operation along Stoke Newington High Street and Church Street. ISLINGTON PRIMROSE HILL Millennium SHOREITCH HOLBORN A12 Cemetery Mile End A11 FITZROVIA SOHO STOKE River Thames NEWINGTON R SH IP K E N E W I N G T O N C H U RC H STRE E T HW NE R N R TO BA UN L TAY ES ALE FO OS R TH W OL R GE L ES TR YR OT UR RC MA NA RF OR R BRO OKE IG UR YR ING R R EV ING ON EV LR EV HT A MA THA LE R RECTORY ROA ON LESWIN R VE VICT ORIA N GRO NEV ILL R EVING R BEN R T Y SS EN R B ROOKE RO ROA N BRO JEN RR A VO ROA ARVIL NE OKE BAYST Y ON HIGH STREET N R RE RY RO ASTO LESWIN R R NEVI LL R BION OLF IRL R 4 AL L R R B10 BA RB AU OL ECTO A10 R K SLEY R EFOE R KYN UMONT R R R AM RT ICELAN 142-146 HIGH ST A10 S TO KE N EWINGT B104 STO RETAIL PITCH R KYV A10 ST R Stoke Newington and Rectory Road Railway Stations are located 0.3 miles (0.4 km) to the north and 0.4 miles (0.6 km) to the south east respectively. VE TO IE R YR LE UV AK BO YO A201 C KH ABNEY PARK CEMETY TRUST E AZ NE R WATLOO St James s A100 VICTORIA POPLAR A1203 Green LIMEHOUSE A13 CITY OF LON MAYFAIR LO Church Street, located 100m to the north, is well known for its café culture and largea4 number of restaurants, shops and independent fashion boutiques. National retailers in this pitch include Whole Foods, Foxtons and JoJo Maman Bébé. A118 A501 Regent s A40 Kensington The quality of the pitch is likely to improve as the area continues to become increasingly aspirational.hyde Gardens Evidence of this is already happening with independent restaurants China Plate Espresso (155 High Street), The Haberdashery (170 High Street) and Tatreez (188 High Street) all opening in the subject KENSINGTON pitch. & CHELSEA Victoria A10 HOXTON A404 PAINGTON The property occupies a prominent position on the eastern side of Stoke Newington High Street with nearby retailers including Sports irect, Halfords, Sainsbury s Local, Santander and KFC. STRATFOR ALSTON A1 CAMEN TOWN Queen Elizabeth Olympic HACKNEY AL SITUATION A12 HIGH STREET KILBURN Stoke Newington has experienced significant gentrification in recent years and is an increasingly ST JOHNS WOO desirable residential location with values reaching 1,000 per sq ft. Much of this has been driven by an A5 influx of young professionals and is focused around High Street and Church Street which boast a large MAIA VALE variety of independent and national retailers. A41 A503 A400 Hackney Marsh LOW CLAPTON A10 WINGTO N A41 HOLLOWAY KENTISH TOWN HAMPSTEA LEYTON A107 STOKE NEWINGTON OKE NE BRONESBURY A104 R MANSE R SYN R PRIME HIGH STREET RETAIL INVESTMENT R IN G R
ESCRIPTION The property comprises a mid-terrace period building arranged over basement, ground and two upper floors extending to 16,097 sq ft (1,495.46 sq m). The tenant trades over ground floor only whilst the upper floors and basement are used as ancillary and storage. It is apparent that the majority of the two upper floors and part of the basement are currently underutilised by the tenant offering the opportunity to rationalise this space and redevelop the upper floors into residential (subject to planning). Furthermore, there is a large area of undeveloped roof space which could be developed on to increase massing (subject to planning). The property has the benefit of rear servicing from Lawrence Buildings. ACCOMMOATION The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and comprises the following gross internal floor areas: Floor Level escription Sq Ft Sq M Ground Retail 6,531 606.75 Basement Storage / Ancillary 5,664 526.20 1st Floor Storage / Ancillary 2,484 230.77 2nd Floor Storage / Ancillary 1,418 131.74 Total 16,097 1,495.46 Gross frontage 14.88 m (48 ft 9 in) Net frontage 14.74 m (48 ft 3 in) Site area 0.17 acres TENURE The property is held freehold. PLANNING The property has the benefit of an open A1 planning consent. STOKE NEWINGTON ICELAN, 142-146 HIGH STREET, LON, N16 7JL
TENANCY ETAILS The property is let entirely to Iceland Foods Limited on a full repairing and insuring lease for a term of 25 years from 25th ecember 1990 to 24th ecember 2015. A reversionary lease was agreed in 2011 extending the term by a further 10 years from expiry, thereby providing an unexpired term of 10.35 years. The passing rent is 100,000 per annum, which devalues to approximately 6.21 per sq ft overall. The next rent review is on 25th ecember 2015 to open market value. ESTIMATE RENTAL VALUE Greater London food store rents have increased significantly as demand from retailers has grown coupled with a limited amount of well-located and available stores in London. There has been particular pressure from Aldi and Lidl who have been rapidly expanding their portfolios, with strong competition from Co-op, Iceland and M&S. The current passing rent of 100,000 per annum devalues to an overall rate of 6.21 psf. The most salient rental evidence for comparable stores are set out as follows: Iceland, 149 Mare Street, Hackney Rent review March 2014. Settled at 87,250 pax, reflecting 16.76 psf on 4,500 sq ft and 8.38 psf on 1,960 sq ft. Sainsbury s, 238 244 Hackney Road, Hackney OML February 2013. Let at 72,000 pax, reflecting 16.76 psf overall. Iceland, 572 574 Roman Road, Bow Lease renewal September 2013. Agreed at 62,000 pax, reflecting 14.74 psf on ground and 2.50 psf on first floor. Sainsbury s, 279-285 Mare Street, Hackney OML April 2012. Let at 62,000 pax, reflecting 16.60 psf overall. Iceland, 333 337 Mare Street, Hackney Lease renewal ecember 2013. Agreed at 245,000 pax, reflecting 11.07 psf overall. PRIME HIGH STREET RETAIL INVESTMENT
COVENANT INFORMATION Iceland is one of the UKs most recognisable and fastest growing supermarkets, specialising in the sale of frozen foods. Iceland has over 830 stores throughout the UK and in 2014 was officially recognised by the Sunday Times as the most improved big company and the best company to work for in the UK. www.lewisellis.co.uk Iceland Foods Ltd has a un & Bradstreet rating of 5A1 representing minimal business risk and has reported the following results for the past 3 periods. Year Ending 28/03/2014 (000 s) 29/03/2013 (000 s) 30/03/2012 (000 s) Turnover 2,689,000 2,605,000 2,553,000 Pre-Tax Profit 161,000 N/A 174,000 Tangible Net Worth 656,000 517,000 365,000 VAT The property is elected for VAT and it is proposed that the sale will be treated as a Transfer of Going Concern (TOGC). ENGY PFORMANCE CTIFICATE The property has an EPC rating of E and a score of 117. A copy of the EPC is available on the Lewis Ellis data room. ASSET MANAGEMENT OPPORTUNITIES There are a number of asset management opportunities to explore as follows: Undertake the forthcoming rent review on 25th ecember 2015 Negotiate with Iceland to take back the upper parts which are under utilised Redevelop upper parts for residential use (subject to planning) Potential to increase massing (subject to planning) ATA ROOM There is a data room for the property with key tenancy information, floor plans and the EPC. Access to it can be obtained (on request) via the current sales page on the Lewis Ellis website. STOKE NEWINGTON ICELAN, 142-146 HIGH STREET, LON, N16 7JL
PROPOSAL We are seeking offers in excess of 2,225,000 (Two Million, Two Hundred and Twenty Five Thousand Pounds) subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 4.25%, after deduction of the usual purchaser s costs of 5.80%. FURTH INFORMATION Should you require further information or wish to view the property please contact either: Julian Gallagher Tel: 020 7493 3330 Mob: 07941 413 299 Email: jgallagher@lewisellis.co.uk avid Kos Tel: 020 7493 3330 Fax: 07709 813 267 Email: dkos@lewisellis.co.uk STOKE NEWINGTON ICELAN, 142-146 HIGH STREET, LON, N16 7JL Lewis Ellis LLP for themselves or nominees or lessors of this property whose agents they give notice that: (1) the particulars are set out as a general outline only for the guidance of the intending purchasers or lessees, and do not constitute part of an offer or contract; (2) 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; (3) no person in the employment of Lewis Ellis LLP has any authority to make or give any representation or warranty whatever in relation to the property. esigned and Produced by Creativeworld. Tel: 01282 858200. September 2015.