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30-48 LONDON ROAD FOREST HILL, SE23 3HF

DOMINANT GREATER LONDON FOOD STORE INVESTMENT IN EXCESS OF 11.5 YEARS UNEXPIRED (WITHOUT BREAK)

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INVESTMENT SUMMARY

• Forest Hill is a commuter suburb of rising prosperity within South East London.

• Highly accessible location with links to Canary Wharf in 12 minutes, London Bridge in 17 minutes and Green Park in 22 minutes.

• Dominant food store and unit shop let to Sainsbury’s Supermarkets Ltd until May 2031.

• Well secured income with in excess of 11.5 years unexpired (without break).

• Extremely limited local competition with only a single competitor occupied store >10,000 sq ft within a 10 minute drivetime.

• 5 yearly upwards only open market rent reviews.

• Ground rents receivable from 11 residential dwellings developed above part.

• Producing £1,040,260 per annum.

• Freehold.

• Further residential development potential (subject to necessary consents).

• We are instructed to seek offers in excess of £19,500,000, reflecting 5.00% NIY, after the deduction of purchaser’s costs at 6.74%.

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LOCATION

Forest Hill is a thriving residential suburb of South East London situated

approximately 7 miles to the south east of central London, in the London

Borough of Lewisham. Located on the South Circular road, Forest Hill is

approximately 1.8 miles south east of East Dulwich and 1.7 miles north of

Sydenham.

REGENT’SPARK

PRIMROSE HILL

HYDEPARKKENSINGTON

SHEPHERD’SBUSH

ACTON

WEMBLEY

CHISWICK

HEATHROWAIRPORT

CHELSEA

WIMBLEDON

RICHMOND

KINGSTONUPON THAMES

BRENTFORD

TWICKENHAM

HAMPTON

WANDSWORTH

CANARYWHARF

WOOLWICH

CITY OFLONDON

WEST END

WIMBLEDONPARK

CLAPHAMCOMMON

RICHMONDPARK

BUSHYPARK

HAM HOUSE GARDENS

HAMPTONCOURT PARK

STOKENEWINGTON

HACKNEY STRATFORD

EPPINGFOREST

CAMDENTOWN

King’s Cross St Pancras International

HAMPSTEADHOLLOWAY

HIGHGATE

MARYLEBONE

BURGESSPARK GREENWICH

PARK

HACKNEYMARSH

CLISSOLDPARK

FINSBURYPARK

HIGHBURYFIELDS

HAMPSTEADHEATH

BRENTRESERVOIR

GLADSTONEPARK

ROUNDWOODPARK

FOREST HILL

BROMLEY

EAST DULWICH

STREATHAM

WEST NORWOOD

BRIXTON

GREENWICHCLAPHAM

Forest Hill Station

Sloane Square

Earls Court

Victoria

Waterloo

Liverpool Street

London BridgeGreen Park

Paddington

Knightsbridge

Bank

Euston

Camden

Swiss Cottage

East Finchley

St John’s Wood

West Hampstead

Hampstead

Hammersmith

GATWICKAIRPORT

SOUTHWARK

North Greenwich

Elephant & Castle

Vauxhall

South Hampstead

Clapham Junction

Willesden Green

NeasdenWembley Stadium

Wembley Central

Wembley Park

Canada Water

SYDENHAM

M4

M3

M1

M2

M1

A1(M)

M25

M25

M20

M23

M25

M40

M25

A20

A23

A24 A22

A20

A2

A3

A3

A1

A2

A13

A13

M25

M25

M11

M11

Heathrow

Horsham

Uckfield

HaywardsHeath

BurgessHill

LONDON

Luton

Stanstead

Gatwick

Watford

Staines

Maidenhead

High

Wycombe

Bracknell

Richmond

WimbledonBromley

Chiswick

Epsom

Dartford

Chelmsford

HertfordSt Albans

HemelHempstead

Braintree

Maidstone

Brentwood

Chatham

Sittingbourne

Epping

Croydon

FOREST HILL

Sevenoaks

Guildford

Leatherhead

Reigate Redhill

Crawley

Tonbridge

Canary Wharf

A12

A12

A12

A10

A41

A40

A316

A406

A205

A414

A414

A602

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CONNECTIVITY

Road

Forest Hill benefits from excellent road communications. The

A205 South Circular road runs through the centre of Forest Hill.

The A23 and A20 to the west and east provide ready access to the

M25 and national motorway network.

Rail

The strength of Forest Hill’s rail connections are a key catalyst

to the area’s growth as a popular commuter location. Fast and

frequent London Overground and National Rail services connect

to Canada Water in 12 minutes, London Bridge in 17 minutes

and Green Park via Canada Water (London Underground) in

22 minutes.

Air

Both Heathrow and Gatwick, the UK’s two largest airports, are

easily accessed in just over an hour’s drive from Forest Hill.

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SITUATION

The property occupies a prominent position fronting

London Road, 150 metres to the west of Forest Hill

rail station. The property benefits from vehicular

access to the rear from David’s Road.

London Road is characterised by a community

and convenience focused retail offer provided by

a vibrant mix of national and local independent

operators. The surrounding area is dominated by

residential dwellings.

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LOCAL AUTHORITYOWNED

(60 SPACES)

UNDERCROFTCAR PARK

(36 SPACES)

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FOODSTORE COMPETITION

The property benefits from extremely limited local

competition with only a single competitor occupied

store of >10,000 sq ft falling within a 10 minute

drive time.

Catchment

10 minutes20 minutes

Foodstoresby fascia

AldiAsdaCo-opIcelandLidl

Marks & SpencerMorrisonsSainsbury'sTescoWaitrose

by sales area (sqft)

> 20,00010,000 to 20,000

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CATCHMENT & DEMOGRAPHICS

• Forest Hill is a suburb of increasing affluence. An

estimated population of 197,827 people live within

a 10-minute drive time, increasing to 932,249

people within a 20-minute drive time.

• Acorn Affluence Categories show that households

of rising prosperity are the most prevalent

group with 55% of households in the immediate

catchment falling within this category compared

to the London average of 36%.

• Healthy population growth is forecast with a

projected increase of 9,300 people in the next 5

years and 17,854 in the next 10 years.

Food stores >10,000 sq ft within 10 and 20 minute drive times

Source: Savills Research

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DESCRIPTION

The property comprises a modernised and extended

food store and unit shop with on site customer

parking and 11 residential dwellings above part.

The food store comprises 48,808 sq ft and is

arranged over three levels taking advantage of the

local topography.

The food store sales accommodation is at grade

level to the London Road frontage, whilst the lower

level ancillary accommodation and loading bays are

at grade level to the rear. Customer lifts facilitate

access from the car parking.

The property benefits from approximately 96 car

parking spaces. 36 of these are within the property’s

ownership and the remainder provided by the

adjacent, council owned, surface level car park

located to the rear of the property. Sainsbury’s

and Lewisham Borough Council have entered

into a car park agreement governing the overall

operation of the car park. A pay and display system

is in operation Monday - Saturday 08:00-18.30 and

the first two hours of parking are currently free of

charge. Further details are available on request.

The unit shop fronts London Road and is a ground

floor lock-up unit.

There is potential for further residential and

alternative use development, subject to necessary

planning consents.

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ACCOMMODATION

The commercial elements of the property have been measured by Plowman Craven to have the following approximate floor areas:

Demise Floor Use Area ( GIA Sq ft)

32-48 London RoadSainsbury’s Supermarket Ltd

Lower Ground Loading & Ancillary 15,591

Ground Floor Sales 26,796

First Floor Staff 6,421

Total 48,808

30-32 London RoadSainsbury’s Supermarket Ltd (Sublease: Sue Ryder)

Ground Floor Retail 1,395 *

ITZA Units 975

Customer Car Parking Lower Ground 36 spaces (additional 60 spaces available in adjacent local authority owned car park)**

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TENANCIES

The commercial elements of the property are entirely let to Sainsbury’s Supermarkets Ltd on two separate leases expiring in May 2031.

The residential premises are each subject to 125 year leases with a ground rent receivable.

Lease Start Date Lease Expiry Date Rent Review Passing Rent (£ pa) Devaluation Comments

32-48 London RoadSainsbury’s Supermarkets Ltd

11/05/2006 10/05/203111/05/202111/05/2026

£1,003,400 £18.69 psf * Open market reviews.

30-32 London RoadSainsbury’s Supermarkets Ltd (Sublease: Sue Ryder)

11/05/2006 10/05/203111/05/202111/05/2026

£35,760 £36.68 ITZASub-let to Sue Ryder at £33,500 pa.

(Flats 1-11, 26-28 London Road) Private Individuals

01/01/2006 31/12/2131 01/01/2031 £1,100 -£100 pa per flat, doubles every 25 years.

Total £1,040,260

* NIA

** All 96 on site car parking spaces are subject to a car park agreement

between Lewisham Borough Council and Sainsbury’s.

* Devaluation reflects a 10% addition for fitted specification.

48.9m57.7m

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LONDON R OAD

3

12

71

16

43

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53

24

69

El

57

55

PH

51a

18

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26

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45

Sub Sta

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33

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Shelter

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WALD

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DA

VID'S R

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24

21

18

68

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8

29

Horniman G range

17

17

to

26

22

1

17

to

9

11

28

13

25

to

Fairlawn

45

9

Annexe

P rimary

70

43

16

8

1

41

24

10

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15

35

32

S chool

30El Sub Sta

149

3937

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GlassHouse

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HousePearce�eld

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17

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LOC

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26

6Freehold.

Subject to a 999 year leasehold interestat ground floor level only.

TENURE

The property is held Freehold. The approximate extent

of the title is identified by the orange line.

The area outlined blue is subject to a 999 year lease at

ground floor level only granted in favour of the Mayor

and Burgesses of the London Borough of Lewisham

from the 24th April 2006 (TGL274198).

NOTE: Reproduced from the Ordnance Survey Map with the permission of the Controller of H.M. Stationery Office. © Crown copyright licence number 100024244 Savills (UK) Ltd.

Published for the purposes of identification only and although believed to be correct accuracy is not guaranteed.

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EPC

34-48 London Road, Sainsbury’s Supermarket, has an EPC rating

of C-63.

A copy of the EPCs will be provided on enquiry.

VAT

The property has been elected for VAT purposes. It is anticipated that

the sale will be treated as a Transfer of a Going Concern (TOGC).

FURTHER INFORMATION

Further information is available on our secure dataroom:

https://sites.savills.com/sainsburysforesthill

PROPOSAL

We are instructed to seek offers in excess of £19,500,000 (exclusive

of VAT) for the benefit of our client’s freehold interest. Adopting

purchaser’s costs of 6.74%, a purchase at this level would reflect a

5.00% NIY.

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£000s 10th March 2018 11th March 2017 12th March 2016

Turnover 23,606,000 23,234,000 23,168,000

Pre-Tax Profits 187,000 342,000 406,000

Tangible Net Worth 4,562,000 5,353,000 4,458,000

COVENANT

Founded in 1869, Sainsbury’s has grown exponentially to become the third largest food

retailer in the UK with a 15.3% market share.

With 608 supermarkets, 191 Argos stores and 3.9 million active customers at Sainsbury’s

Bank and Argos Financial Services, the company has recently reported total group sales

have grown 9% with like for like sales up 1.3%.

Sainsbury’s Supermarkets Ltd benefit from an Experian/Delphi credit score of 100/100

showing very low risk of financial failure and a D&B rating of 5A1.

CONTACT

James Stratton

+44 (0) 20 7409 8880

+44 (0) 7787 513060

james.stratton@savills.com

Olivia Hoareau

+44 (0) 20 7557 9994

+44 (0) 7866 203453

olivia.hoareau@savills.com

Important Notice

Important Notice

Savills, their clients and any joint agents give notice that:

1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact.

2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise.

Designed and Produced by Savills Commercial Marketing: 020 7499 8644 | October 2019