Sainsbury’s Foodstore Investment
Orchard Plaza | 39 High Street | Poole | Dorset | BH15 1EG
subject to contract
Prominent town centre retailing pitch
Let to Sainsbury’s
Highly Secure Income – Pre-Tax Profits £409m
£1,200,000, subject to contract
6.7% net initial yield
Poole is situated on the South Coast of England within the county of Dorset. The town is located approximately 177 km (110 miles) south-west of London, 59 km (37 miles) south-west of Southampton and 9 km (6 miles) west of Bournemouth. Sandbanks, which has some of the highest land values in the world, is approximately 8 km (5 miles) to the south-east.
The town benefits from good road communications and is served by the A350 and the A31 which connects with the M27 Motorway approximately 43 km (27 miles) to the north-east. To the east, the A338 leads to Lymington and the New Forest. The town is connected to the national railway network with a fastest journey time to London Waterloo of approximately 2 hours. Bournemouth Airport is approximately 18 km (11 miles) to the north-east.
Poole is a hugely successful tourism destination, known for its large natural harbour, Poole Harbour, which is the second largest in the world behind Sydney. Poole’s natural coastal setting provides three miles of award winning blue flag beaches with some of the best water sport facilities to be found on the south coast.
Poole town centre stretches from the water’s edge at Poole Quay up to the Dolphin Shopping Centre. The subject property occupies a prominent corner position in the town centre, on the south side of High Street at the junction with Old Orchard. Surrounding occupiers include Pizza Express, Lush, Slug & Lettuce, Ladbrokes, along with numerous independent and boutique cafes, restaurants and shops.
Pool Quay and Poole Harbour are immediately to the south of the subject property, making the area extremely popular with visitors to Poole. The Dolphin Shopping Centre is less than 0.8 km (0.5 miles) to the north. Totalling approximately 40,000 sq m (430,000 sq ft) this is Dorset’s largest indoor shopping centre with over 140 stores and 1,400 parking spaces. Around 11 million shoppers visit the centres a year, attracted by stores including Marks & Spencer, Primark, Next, River Island, Boots and H&M.
The Strand Street multi-storey car park is immediately to the rear of the subject property and is open 24 hours a day providing 550 spaces.
The property comprises a highly prominent ground floor corner retail unit with significant frontage to High Street and Old Orchard.
Internally, the unit provides a modern convenience store which has been fitted out to a high standard in the tenant’s corporate style.
The upper parts comprise 115 luxury apartments which do not form part of the sale.
The property has been measured by BKR Floor Plans and provides the following Gross Internal Areas;
|Ground Floor||411.73 sq m||4,432 sq ft|
Floor plans are available to download and the measured survey report is available for assignment to a purchaser.
Long leasehold for a term of 125 years from 15th September 2009, expiring 31st December 2133 (115.5 years unexpired) at a peppercorn rent.
The property is entirely let to Sainsbury’s Supermarkets Limited on a full repairing and insuring lease for a term of 15 years from 7th October 2008, expiring 6th October 2023.
The current passing rent is £84,747 per annum which was agreed at the 7th October 2018 rent review.
Sainsbury’s Supermarkets Limited (Co. No. 03261722) has reported the following figures:
|10th March 2018||10th March 2017|
|Revenue||£28,456 million||£26,224 million|
|Pre-Tax Profits||£409 million||£503 million|
|Total Equity||£7,411 million||£6,872 million|
Sainsbury’s is Britain’s second largest supermarket group with over 185,000 employees and over 2,000 stores. In April 2018 it was announced that Sainsbury’s had agreed terms to merge with Walmart-owned Asda. If approved by the Competition and Markets Authority, this will create the biggest food retailer in the UK. For further information please visit www.sainsburys.co.uk.
The property has been registered for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
Our client is seeking offers of £1,200,000 (One Million, Two Hundred Thousand Pounds), subject to contract. This reflects a net initial yield of 6.7% assuming purchasers’ costs of 5.93%.
An opportunity to acquire a modern convenience store investment in a prominent town centre location;
The investment is let to the AAA covenant of Sainsbury’s Supermarkets Limited;
In excess of 4.75 years unexpired lease term;
Attractive lot size to an investor;
A purchase at the asking price reflects an attractive net initial yield.
|Mills Chody||+44 (0) 208 909 0400|