39-43 SOUTH STREET, ROMFORD

Investment Considerations

  • Romford is a key retailing destination in Greater London; just 17 minutes to London Liverpool Street.
  • Key Crossrail commuter town within the M25.
  • Prime location benefitting from prominent frontage on South Street and forming one of the key anchor stores within the Liberty Shopping Centre.
  • A well configured and established store arranged over three floors with a total area of 89,351 sq ft (8,301 sq m).
  • Provides a long-term residential development opportunity STPP.
  • Significant proportion of ground floor sales space dedicated to M&S Foodhall.
  • Let to the 5A1 covenant of Marks and Spencer Group PLC until March 2027, with restricted alienation and a tenant option to renew for a further 40 years from expiry.
  • Benefits from fixed annual rental uplifts of 1.95% on 29 September each year.
  • Current passing rent of £833,171 per annum (£8.88 per sq ft) rises to £849,418 per annum (£9.05 per sq ft) at the next fixed uplift on 29 September 2019.
  • Freehold.

PROPOSAL

Offers sought in excess of £13,250,000 subject to contract and exclusive of VAT.

Net Initial Yield 6.01%
Equivalent Yield 6.67%
Reversionary Yield 6.88%

Yields based on the topped up September 2019 rent.
Yields are net of purchaser’s costs of 6.72%.

Description

A key anchor tenant for The Liberty Shopping Centre

The property comprises an 89,351 sq ft retail store arranged over ground and two upper floors. Trading space is located on the entirety of the ground floor and part of the first floor. Customer access is facilitated by escalators and a customer lift. The store provides a full-line retail offer, with a large Foodhall, menswear, womenswear and childrenswear, together with a very popular M&S Café.

The store benefits from dual frontage onto pedestrianised South Street and the central mall of the Liberty Shopping Centre, Romford’s prime managed scheme, for which M&S acts as a key anchor tenant. Servicing is provided to the rear of the store via a loading bay at first floor level, utilising the Liberty Shopping Centre access road.

TENANCY

The property is let in its entirety to Marks and Spencer PLC for a term commencing 6 July 2001 and expiring 31 March 2027.

The current rent of £833,171 per annum (£8.88 per sq ft) is subject to fixed annual uplifts on 29th September by 1.95%. The passing rent will increase to £849,418 per annum on 29th September 2019 which reflects £9.05 per sq ft (incorporating an addition of 5% for fittings).

The alienation provisions are restrictive and highly beneficial to the landlord; the tenant can only assign to a company “of no less financial standing” than Marks and Spencer PLC as at the start of the lease in 2001, i.e. an investment grade rating of ‘A’ or better.

The lease is FRI and is outside the L&T Act 1954.

On expiry, the tenant has the right to renew the lease for a term of 40 years, at open market rent, with a break at the 15th year (31st March 2042).

TENURE

The property is held freehold under title number EGL422517.

The air space 14 feet above ground level upwards of the area (shaded in red on the title plan) is included within the freehold title of The Liberty Shopping Centre.

Location

The property is located in the London Borough of Havering in the major suburb of Romford. The town is located 7 miles (11.3 km) south of Brentwood, 8 miles (12.9 km) north east of Stratford and 12 miles (19.3 km) north east of Central London.

Contacts

For further information please contact:

Becky Hance

020 7344 6841
becky.hance@colliers.com

Hannah Greenland

020 7344 6559
hannah.greenland@colliers.com

James Bryer

020 3758 8261
james.bryer@hpfour.co.uk

Jeremy Roger

020 3758 8262
jeremy.roger@hpfour.co.uk


Colliers International

Colliers International

50 George Street
London W1U 7GA

www.colliersretailcapitalmarkets.com

HP Four

HP Four

128 Wigmore Street
London W1U 3SA

http://www.hpfour.co.uk


Misrepresentation Act
Colliers International and HP Four Investment LLP gives notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Party should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person employed or engaged by Colliers International or HP Four Investment LLP has any authority to make any representation or warranty whatsoever in relation to this property. (May 2019). Colliers International is the licensed trading name of Colliers International Property Advisors UK LLP which is a limited liability partnership registered in England and Wales with registered number OC385143. Our registered office is at 50 George Street, London W1U 7GA. August 2019.

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