Long Income Supermarket Investment with Fixed Rental Increases
Description
The subject property is prominently situated on London Road (A2047), a major arterial route that runs north-south through Portsmouth. The area is a well-established retail destination with a mix of national and independent retailers, providing a strong draw for local shoppers. The property is situated on the midpoint of the London Road (A2047). There is a customer car park to the rear which comprises approximately 113 spaces providing a ratio of 1:204. This is accessed via Derby Road on the northern side and Heathfield Road to the south. The car park is camera controlled. It is free for 15 minutes or 90 minutes for Lidl customers.
Key Points
- Portsmouth is a coastal city located southwest Hampshire, 19 miles southeast of Southampton and 70 miles southwest of London.
- Highly visible unit located along a major arterial route that runs north-south through Portsmouth in Portsmouth.
- Let to one of Europe’s leading discount supermarket operators, Lidl Great Britain Limited, on a 25-year lease, expiring 10th July 2042, with approximately 18 years unexpired, 13 years to break.
- Large captive catchment, with 340,840 people (146,148 households) within a 15-minute drive of the property.
- The property comprises 24,650 sq ft GIA (2,290 sq m) with a 113-space surface car park, providing a convenient parking ratio of 1:204.
- The lease benefits from fixed rental increase at 2% per annum compounded, offering an attractive and stable income growth profile for investors.
- Dominant foodstore with minimal superstore competition within the highly residential area.
- The unit currently has a passing rent of £320,183, reflecting a rate of £12.98 psf, with a NOI of £286,734 after deduction of the car park outgoings.
- Secure covenant - Lidl Great Britain Limited has a D&B Rating of 5A2 reflecting a ‘lower than average risk’.
- The property is held freehold with carparking to the rear held by way of a long leasehold title.
Rates
Rateable Year: details on request
Rateable Value: details on request
Rates Payable: details on request
UBR: details on request
EPC Rating
Location
Portsmouth is a dynamic coastal city located on the south coast of England, approximately 70 miles southwest of London and 19 miles southeast of Southampton. Renowned for its rich maritime history, Portsmouth is home to a population exceeding 215,000, making it one of the largest cities in Hampshire. Portsmouth’s economy is diverse; with strengths in maritime, defence, and advanced manufacturing sectors, bolstered by the presence of the University of Portsmouth, which attracts students and professionals from around the world. The city is undergoing significant regeneration, with several key developments aimed at enhancing its retail, leisure, andresidential offerings.