Long Let and Highly Secure Freehold Investment in London

386-388 Mare Street | London | E8 1HR

£2,400,000

subject to contract

FOR SALE

Summary

  • Highly Secure investment let to Boots UK Limited – Turnover of £6.79 billion

  • New 10 year lease from February 2019, without breaks

  • Boots have been in occupation for over 25 years

  • Prime retailing location

  • £2,400,000, subject to contact

  • 4.51% net initial yield

London Hackney property retail investment E8 1HR

Location

Hackney Central is the administrative heart of the Borough of Hackney and the second most populated borough in London. House prices are increasing at a faster rate than the London average with this location earmarked for further investment and development.

Hackney Central sits approximately 4 miles (6.44 km) north east of Central London and is served by 17 bus routes, with six of London’s 10 most popular routes starting, ending and moving through the area. This totals over 80 million journeys per year, (www.hackney.gov.uk). London City Airport is approximately 6.7 miles (10.78km) south east of Hackney Central.

Hackney Central station has benefitted from £1bn of investment to the London Overground network, with a frequent service linking Hackney Central to large parts of the rest of London and to underground connections at Highbury & Islington and Stratford stations. An eastern line of Crossrail 2 is in the consultation stage and would travel through Hackney Central and Hackney Wick stations.

Hackney Central is a vibrant location experiencing major rejuvenation, partly driven by an increasing number of start-up businesses in the creative media and fashion industries, (www.london.gov.uk).

In recent years, over £150 million of inward investment has been secured against major regeneration projects in Hackney Central, with no other London borough undertaking as many transport, street and urban design improvements, (www.designcouncil.org.uk).

Investment from the mayors regeneration fund and Hackney council has been allocated to refurbish 12 railway arches and to enhance shop frontages along Mare Street, Narrow Way and Clarence Road. This is set to further enforce the traditional role of Hackney Central as a retail location.

The Hackney Central masterplan improves the viability of the town centre by creating space for 3,000 new jobs, 1,000 new homes and supporting the location as a retail destination. An example of this includes the plans to redevelop the Tesco Superstore on Morning Lane, 150 metres from the property. Plans will see the construction of three, nine and 13 storey buildings, providing retail, office and leisure accommodation. Further proposals include 134 new homes, 414 car parking spaces and 252 cycle spaces and landscaping works, (www.london.gov.uk).

Situation

The property occupies a prime retailing position on the east side of the pedestrianised part of Mare Street, the main retail thoroughfare in Hackney, opposite its junction with Kenmure Road. Hackney Central and Hackney Downs stations are respectively 300m and 400m from the property.

National operators nearby include; Primark, Greggs, McDonald’s, Holland & Barrett, Vodafone, Sainsbury’s Local, Tesco Superstore, Santander, Halifax, Shoezone and Timpson.

The Hackney Gardens development sits directly to the rear of the property and we understand will comprise 58 luxury apartments split between three buildings surrounded by landscaped pathways and gardens. The focal point of the development will be Prodigal Square, a semi-public space, accessed from Dispensary Lane, adjacent to the subject property.

Mare Street is at the heart of Hackney Central with an excellent offer of leisure, retail and creative businesses all grouped around Mare Street corridor, which links Shoreditch and Hackney Central.

London Hackney property retail investment E8 1HR
London Hackney property retail investment E8 1HR

Description

The property comprises a retail unit arranged over ground and one upper floor. Internally the sales area is at ground floor level with ancillary accommodation to the first floor.

The property has been fitted out by Boots to their usual corporate style

Accommodation

We are advised that the property provides the following net internal floor areas. These areas have been agreed between the landlord and Boots.

Gross Frontage 35’ 9” 10.94 m
Net Frontage 27’ 2” 8.29 m
Shop Depth 55'1" 16.80m
Zone A 549.28 sq ft 51.03 sq m
Zone B 564.35 sq ft 52.43 sq m
Zone C 576.19 sq ft 53.53 sq m
Ground Remaining 120.56 sq ft 11.20 sq m
Ground Office 165.33 sq ft 15.36 sq m
Ground Floor Total 1,975.71 sq ft 183.55 sq m
First Floor 545.62 sq ft 50.69 sq m
     
Total 2,521.33 sq ft 234.27 sq m

Scaled floor plans are available to download.

London Hackney property retail investment E8 1HR
London Hackney property retail investment E8 1HR

Planning

The property is not listed and sits within a Conservation Area.

The property benefits from planning permission, granted 18th August 2017, to demolish the existing building and construct a new four storey building to provide retail space (Use Class A1) at ground and basement with five self-contained dwellings (Use Class C3) on the upper floors comprising 1 x one bedroom and 4 x two bedroom units. Planning Ref: 2016/2407.

Given the property currently benefits from planning permission for red-development, the opportunity exists to redevelop in a gentrifying location at the end of the current lease.

Tenure

Freehold.

London Hackney property retail investment E8 1HR
London Hackney property retail investment E8 1HR

Tenancy

The property is let on a renewed lease to Boots UK Limited on a full repairing and insuring basis for a term of 10 years from 17th February 2019, expiring 16th February 2029.

The passing rent is £115,000 per annum. There is an upwards only rent review in February 2024.

Covenant

Boots UK Limited (Company No. 00928555) has reported the following figures.

  31st August 2018 31st August 2017 31st August 2016
Total Income £6,790,000,000 £6,948,000,000 £6,876,000,000
Pre-Tax Profit £398,000,000 £498,000,000 £523,000,000
Net Assets £1,872,000,000 £1,772,000,000 £1,204,000,000

Boots is the UK’s largest pharmacy-led health and beauty chain with over 55,000 employees and close to 2,500 stores ranging from local community pharmacies to large destination health and beauty stores. Boots also provide optician and hearing care within shops and as standalone practices. Boots run a highly successful loyalty card programme called the Boots Advantage Card offering personalised deals to its customers, facilitating market leading levels of customer retention.

London Hackney property retail investment E8 1HR
London Hackney property retail investment E8 1HR

VAT

The property has been registered for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

Proposal

We are instructed to seek £2,400,000 (Two Million Four Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 4.51%, assuming purchasers’ costs of 6.36%.

Please note that a purchaser will be re-charged the costs of searches which are provided in the data room.

London Hackney property retail investment E8 1HR
London Hackney property retail investment E8 1HR

Investment Considerations

  1. The investment provides highly secure income being let to Boots UK Ltd;

  2. Property occupies a prominent site within a London regeneration area

  3. Located just 0.2 miles from Hackney Central station;

  4. Boots have been in occupation for over 25 years;

  5. Boots signed a new 10 year lease with no breaks or incentives;

  6. Given the property currently benefits from planning permission for red-development, the opportunity exists to redevelop in a gentrifying location at the end of the current lease.

Data Room and clicktopurchase®

Access to the data room and for the ability to purchase online with speed and ease, please click the clicktopurchase® “C” icon or the clicktopurchase® side bar. Purchasers will be able to access the complete legal package, clear verification and submit legally-binding offers to acquire the property.

Purchasers benefit from the trust, security and transparency provided by the platform. All activities, including the online contract execution, will form part of the electronic audit trail which is anchored in the clicktopurchase® Blockchain.

clicktopurchase® provides the opportunity for any investor, whether located UK or abroad, to uniquely purchase online with ease and certainty. To learn more about clicktopurchase®, click here.

Finance

We have partnered with a leading finance adviser to provide loan services. To learn more, please visit our “Finance” section.

finance

Contact Us

Singer Vielle   +44 (0) 207 935 7200
Daniel Elia daniel@singervielle.co.uk +44 (0) 203 701 1353
Dale Henry dale@singervielle.co.uk +44 (0) 203 701 1356
Neil Singer neil@singervielle.co.uk +44 (0) 203 478 9120

Vendor's Solicitors

Barnett Alexander Conway Ingram LLP  
David Conway D.Conway@bacisolicitors.co.uk +44 (0) 208 349 7680
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