39-43 SOUTH STREET, ROMFORD
- 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.
Offers sought in excess of £13,250,000 subject to contract and exclusive of VAT.
|Net Initial Yield||6.01%|
Yields based on the topped up September 2019 rent.
Yields are net of purchaser’s costs of 6.72%.
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.
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).
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.
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.