Sainsbury’s Locai, Morden, Greater London

Property Description

• Virtual Freehold Blue-Chip Supermarket Investment in London.
• The property comprises a ground floor convenience store (3,536 sq ft) as part of a 3 storey building, the upper floors comprise 12 residential units which are sold off on long leases.
• The ground floor unit comprises a convenience store with triple unit frontage.
• There is on street parking at the front of the property that services the parade. Deliveries are handled via the front of the store and the side, which is accessed via a communal service yard off Ashridge Way.
• Property benefits from car parking spaces.

Location Description

• The affluent suburb of Morden is located approximately 8 miles (12.9 km) south west of Central London, 1.5 miles (2.4 km) west of Mitcham and 2.5 miles (4 km) north of Sutton.
• The property is situated in a prominent position fronting Martin Way (B286) close to its junction with Ashridge Way.
• Morden has an excellent provision of parks and green spaces. Morden Hall Park is approximately 125 acres and run by the National Trust.
• This attractive residential area of south-west London is very well connected with Morden Underground Station located on the Northern Line, regular tram link services between Croydon and Wimbledon, as well as Overground rail services from South Merton along the Southern & Thameslink lines offering routes to London Blackfriars, Farringdon and St Pancras International.
• Heathrow International airport is located 13.5 miles (21.7 km) west of the subject property.
• The property is part of a local retail parade comprising a café, barber and glazing shop.

Tenancy

• The property is let in its entirety to Sainsbury’s Supermarkets Limited for a term of 15 years (no breaks) from 24th August 2015 at a current passing rent of £78,923.52 per annum.
• The lease provides for five yearly upward only rent reviews, calculated on a compound annual basis, linked to RPI with an average based collar and cap of 1% and 3.5%. Based on RPI figures for the past 3 years and projecting 2019 and 2020 at 2.5% we estimate an increase in rent to approximately £90,773.24 in August 2020.

Additional Notes

• The property is held on a Virtual Freehold lease (995 years remaining) peppercorn ground rent.