Buckingham, Chandos Road, MK18 1AL BUCKINGHAM Buckingham is an affluent and attractive university...

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Transcript of Buckingham, Chandos Road, MK18 1AL BUCKINGHAM Buckingham is an affluent and attractive university...

  • Buckingham, Chandos Road, MK18 1AL Well Secured Prominent Freehold Convenience Store Investment Sainsbury’s Local

  • BUCKINGHAM Buckingham 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).

    LOCATION The 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.

    TENURE The property is held freehold.

    ACCOMMODATION The 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

    A303 A39

    A487

    A487 A49

    A55 A158

    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

    M69 M1

    M6

    M6

    A1(M)

    A1(M)

    A1(M)

    A1(M)

    A74 (M)

    M62

    M62

    M74

    M90

    M8

    M9

    M8

    M1

    M18 M1

    M1

    Dover

    Margate

    Hastings Brighton

    Portsmouth

    Isle of Wight

    Southampton

    Winchester

    Bournemouth

    Torquay Plymouth

    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

    Wolverhampton Birmingham

    Reading

    High Wycombe

    Croydon

    Buckingham

    Cambridge

    Coventry

    Leicester

    Northampton

    Milton Keynes

    Bicester

    Banbury

    Bury St Edmunds

    Colchester

    Ipswich

    Southwold

    Ya

    Peterborough

    Nottingham Derby

    Newark-on-Trent

    Mansfield

    Chesterfield Lincoln

    Sheffield

    Stoke-on-Trent

    Peak District

    ManchesterLiverpool

    Preston Leeds

    Huddersfield

    Hull

    York

    Kendal Scarborough

    Middlesbrough

    Sunderland Newcastle Upon Tyne

    Carlisle

    Glasgow

    Edinburgh

    Stirling

    Perth

    Dundee

    Stranraer

    Great rmouth

    Norwich

    GATWICK

    STANSTED AIRPORT

    AIRPORT

    S’HAMPTON AIRPORT

    HEATHROW AIRPORT

    M11A1(M)

    M1

    M2

    BUCKINGHAM TOWN CENTRE

  • Buckingham, Chandos Road, MK18 1AL Well Secured Prominent Freehold Convenience Store Investment | Sainsbury’s Local

    TENANCY The 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 INFORMATION Sainsbury’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).

    VAT The property is elected for VAT.

    EPC Full details are available on the website.

  • Buckingham, Chandos Road, MK18 1AL Well Secured Prominent Freehold Convenience Store Investment | Sainsbury’s Local

    RETAIL RENTAL VALUE The 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 COMPARABLES Please 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 Common Sainsbury’s plus

    office above 5 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.

    CONTACTS To 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 membe