29-31 George Street Croydon Surrey CR0 1LB Retail / office investment opportunity with future development potential subject to vacant possession of the upper parts and necessary consents Multi-let to 4 tenants with 67% of the income secured against Ladbrokes, Adecco and Blue Arrow Total rental income of: 126,500 per annum The property is not elected for VAT Net initial yield of 5.95% Freehold Investment For Sale making property work
LOCATION Croydon is a well-established retail centre, approximately 9 miles to the south of Central London. The town has excellent transport links with East Croydon Station providing fast and frequent direct trains to London as well as regular services to the South Coast and Gatwick Airport. Croydon Tramlink provides further services to Beckenham Junction and Wimbledon. The M23/M25 motorway intersection which gives access to the national motorway network is approximately 8 miles to the south of Central Croydon. The property is situated on George Street, a busy retail pitch with surrounding occupiers including Pizza Express, JD Weatherspoon, Santander and Tesco Express. Just to the west of the subject property, Westfield and Hammerson (The Croydon Partnership) have secured planning permission for a major re-development of the Whitgift Shopping Centre, which would reinforce Croydon as a major retail destination. DESCRIPTION The premises comprises two adjacent buildings containing ground floor and basement retail units and self-contained first and second floor office premises. Approximate net internal floor areas are detailed in the following tenancy schedule: GEORGE STREET FACING EAST
TENANCY SCHEDULE UNIT TENANT SIZE LEASE LEASE RENT NOTES START END PA 29 Ladbrokes Betting and Gaming Ltd Retail: 1,472 sq ft (136.7 sq m) 29.09.2011 28.09.2021 62,500 Tenant s break 28.09.2016 (not served). Rent review 28.09.2016. Basement: 782 sq ft (72.6 sq m) 31 Herb China Ltd Retail: 316 sq ft (29.4 sq m) 01.12.2015 31.11.2025 42,000 There is 4 month rent deposit held. Basement: 695 sq ft (64.6 sq m) 1 st Floor Adecco UK Ltd 1,034 sq ft (96.1 sq m) 11.07.2013 10.07.2018 11,000 Tenant s break 11.07.2016 (not served). 2 nd Floor Blue Arrow Ltd 1,043 sq ft (96.9 sq m) 03.02.2015 02.02.2020 11,000 Outside of the Landlord and Tenant Act 1954. Internal Schedule of Condition. Service charge cap. Tenant s break 02.02.2018. TOTAL 126,500 The above leases are held on effective FRI terms.
COVENANT INFORMATION Ladbrokes Betting and Gaming Ltd 0775667 A UK based Limited company which operates High Street betting shops. Incorporated in 1963. Herb China Ltd 06515991 A retailer specialising in alternative therapies. Incorporated in 2008. Limited information relating to covenant was available although we are advised a rent deposit is held. DATE TURNOVER PRE-TAX SHAREHOLDER S PROFIT FUNDS 31.12.2014 824,322,403 57,140,725 1,869,535,889 DATE CURRENT SHAREHOLDER S ASSETS FUNDS 31.08.2015 3,948 1,290 Adecco UK Ltd 00593232 A UK based Limited company providing HR solutions in the UK and Ireland. Incorporated in 1957. Blue Arrow Ltd 00641659 A UK based Limited company specialising in employment and recruitment agency. DATE TURNOVER PRE-TAX PROFIT SHAREHOLDER S FUNDS 31.12.2015 506,750,000 8,137,000 48,783,000 DATE TURNOVER PRE-TAX PROFIT SHAREHOLDER S FUNDS 02.01.2015 382,276,000 10,677,000 49,167,000 INTERESTED PARTIES SHOULD VERIFY THE ABOVE COVENANT INFORMATION
TENURE Freehold. PROPOSAL We are instructed to seek offers in excess of 2,000,000 for the freehold interest, subject to contract and inclusive of VAT. A purchase at this level will show a net initial yield of 5.95% after deducting standard purchaser s costs. VAT We are advised that the property is not elected for VAT. EPCs The Energy Performance Certificates show asset rating of Bands D-96 for 29 George Street and C-73 for 31 George Street.