ST LEONARDS-ON-SEA26/28 London Road & 35 Shepherd Street, East Sussex TN37 6ANWELL SECURED MIXED-USED INVESTMENT WITH POTENTIAL FOR RESIDENTIAL DEVELOPMENT. PREDOMINATELY SECURED ON THE COVENANTS OF CO-OP & SECRETARY OF STATE FOR HOUSING, COMMUNITIES AND LOCAL GOVERNMENT

ST LEONARDS-ON-SEA26/28 London Road & 35 Shepherd Street, East Sussex TN37 6AN

INVESTMENT SUMMARY■ Prominent location 100m

from sea front.

■ Mostly secured on undoubted covenants of the Co-op and the Government.

■ Potential scope for future residential conversion/development.

■ Price – Offers in excess of £1,150,000

■ 7.38% net initial yield

ST LEONARDS-ON-SEA26/28 London Road & 35 Shepherd Street, East Sussex TN37 6AN

LOCATIONSt Leonards-on-Sea is located on the East Sussex Coast one mile to the west of Hastings, 16 miles east of Eastbourne and 55 miles to the south of London.

It is connected to the national road network via the A21 linking to junction 5 of the M25 and A259 South Coast Road leading to Eastbourne to the west and Folkestone to the east.

The town also lies on the A27 west to east coastal route (Old Salisbury to Pevensey) which between Portsmouth and Lewes, is one of the busiest trunk roads in the UK providing direct access to Eastbourne, Brighton and Portsmouth.

The town is served by two railways stations, St Leonards (Warrior Square) and West St Leonards. One line from Charing Cross and London Bridge via Tunbridge Wells serves both stations and another from Victoria via Eastbourne serves just St Leonards (Warrior Square). London Gatwick Airport is 39 miles to the north and the Port of Dover (40 miles) and the Channel Tunnel (36 miles) are to the east.

The town has plenty of the charm one associates with Victorian Seaside resorts and caters for both day and weekend trippers. The focus is undoubtedly the stunning vista of the 3 mile shingle beach and Promenade connecting nearby Hastings complete with cycle track.

50 metres

St Leonards

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CARPARK

Experian Goad Plan Created: 24/05/2019Created By: Smith Price

Copyright and confidentiality Experian, 2019. © Crown copyright and databaserights 2019. OS 100019885

ST LEONARDS-ON-SEA26/28 London Road & 35 Shepherd Street, East Sussex TN37 6AN

SITUATIONThe property is prominently situated on London Road close to its junction with Grand Parade which forms the sea front.

London Road represents the main pedestrian route between the thriving retail heart of the town based around Kings Road & Warrior Square Station to the north and the Sea Front 100m to the south. Other occupiers in close proximity include Boots the Chemists, The Post Office, Nationwide Building Society etc.

ST LEONARDS-ON-SEA26/28 London Road & 35 Shepherd Street, East Sussex TN37 6AN

TENUREThe property is Freehold.

DESCRIPTIONThe property comprises purpose built retail units to the ground floor arranged as a single corner shop unit on ground and part 1st floors, and a larger convenience store. (The convenience store extends into an adjoining unit not forming part of the sale). There are two floors of self-contained offices over with access from the side on Shepherd Street.

In addition there is also a separate 20 space surface car park, let with the offices located on the opposite side of Shepherd Street, which is included in the sale.

Shepherd Street Car Park

TENANCY SCHEDULE

ST LEONARDS-ON-SEA26/28 London Road & 35 Shepherd Street, East Sussex TN37 6AN

ADDRESS TENANT FLOOR AREA Net Floor Areas

LEASE RENT REVIEWS BREAK RENT P.A.

Ground Floor, 20-28 London Rd

Co-operative Group Food Limited

Internal width 80 ft. 15 years from 5th June 2017

5th & 10th years 5th June 2027 £40,000

Ground Floor 3,109 sq. ft.

1st & 2nd Floor Offices, 20-28 London Rd & Car Park, 35 Shepherd Street

Secretary of State for Housing, Communities and Local Government. The property is occupied by Hastings Probation Office.

1st Floor Offices

3,870 sq. ft. 10 years from 29th April 2019

Subject to an upward rent review at the 5th year

29th April 2024 £42,500

2nd Floor Offices

3,803 sq. ft.

20 car parking spaces in Shepherd St.

20 London Road Ms Helen Dorling (trading as Urban Hair)

Zone A 322 10 years from 13th May 2019

Subject to upward rent review at the 5th year

13th May 2024 £7,400

Zone B 36

Grd Flr Sales 358 sq. ft.

ITZA 340 sq. ft.

Rear Stock 46 sq. ft.

1st Floor 404 sq. ft.

TOTAL RENTAL INCOME: £89,900pa.

ST LEONARDS-ON-SEA26/28 London Road & 35 Shepherd Street, East Sussex TN37 6AN

TENANTS’ COVENANTSThe Co-operative Group Food Limited (Company Number: IP26715) is the UK’s fifth largest food retailer with almost 2,800 local convenience and medium sized stores employing over 69,000 people.

They have a Tangible Net Worth of £1.385 billion and a D&B rating of Minimum Risk Status.

A summary of their latest company accounts is provided below:

6th January 2018 31st December 2016

Turnover £7.159 billion £6.933 billion

Pre-Tax Profits £195.4 million £148.2 million

Net Current Assets £1.875 billion £1.805 billion

Co-Operative Group Food Limited are a wholly owned subsidiary of The Co-Operative Group Ltd which was established in 1844 and now operates over 7,000 outlets with over 70,000 employees and an annual turnover of £9.5 billion. The Co-Operative Group Ltd has a D&B rating of 5A1.

Further information is available at: www.co-operativefood.co.uk

The Secretary of State for Housing, Communities and Local Government are a government body and therefore represent an undoubted covenant.

LIFT

Cupboard

Living Room

Bathroom

Bedroom 1

Kitchen

Dining R

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Cupboard

Living Room

Kitchen

Dining R

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Living Room

BathroomBedroom

1

Bathroom

Bedroom 1

Kitchen

Dining R

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Bedroom 1

Bathroom

Kitchen

Kitchen

Dining R

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Living Room

Closet

Living Room

Bathroom

Dining R

oom

Bathroom

Bedroom 1

Bedroom 2

Kitchen

Dining R

oom

Living Room

Draw

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ScaleD

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Project Title

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Report all discrepancies, errors and om

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Verify all dimensions on site before com

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All materials, com

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62 Burgate, Canterbury

Kent CT1 2BH

01227 762060

01582 765102

4th Floor, 99 Charterhouse Street

London EC1M

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0203 597 6112

1 Kinsbourne Court, Luton R

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St. LeonardsEast Sussex

Proposed First & Second Floor PlanO

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February 2016KE

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ST LEONARDS-ON-SEA26/28 London Road & 35 Shepherd Street, East Sussex TN37 6AN

DEVELOPMENT POTENTIALIn our view, with its outlook towards the sea front, the building is potentially suited for residential conversion of the upper floor offices in the future. (Subject to obtaining vacant possession & necessary consents).

Additionally the surface car park on Shepherd Street, also included in the sale is ideally suited for either commercial or residential development.

Some purely indicative potential schemes are shown here.

EPC’sCertificates are available on request.

Indicative potential residential scheme (1st & 2nd Floors, 26/28 London Road)

Indicative potential residential scheme Shepherd Street Car Park

WC

SingleGarage

Cycle Storage

Kitchen

C

Family /DiningRoom

Hall

WC

SingleGarage

Cycle Storage

Kitchen

C

Family /DiningRoom

Hall

WC

SingleGarage

Cycle Storage

Kitchen

C

Family /DiningRoom

Hall

Bathroom

Bedroom 2

En-suite

LivingRoom

Bedroom 3

HallBathroom

Bedroom 2

En-suite

LivingRoom

Bedroom 3

Hall Bathroom

Bedroom 2

En-suite

LivingRoom

Bedroom 3

Hall

Bedroom 1

Bedroom 4

Bedroom 1

Bedroom 4

En-suite En-suite

Bedroom 1

Bedroom 4

En-suite

WC

SingleGarage

Cycle Storage

Kitchen

C

Family /DiningRoom

Hall

WC

SingleGarage

Cycle Storage

Kitchen

C

Family /DiningRoom

Hall

WC

SingleGarage

Cycle Storage

Kitchen

C

Family /DiningRoom

Hall

Bathroom

Bedroom 2

En-suite

LivingRoom

Bedroom 3

HallBathroom

Bedroom 2

En-suite

LivingRoom

Bedroom 3

Hall Bathroom

Bedroom 2

En-suite

LivingRoom

Bedroom 3

Hall

Bedroom 1

Bedroom 4

Bedroom 1

Bedroom 4

En-suite En-suite

Bedroom 1

Bedroom 4

En-suite

GROUND FLOOR

FIRST FLOOR

SECOND FLOOR

PROPOSALWe are instructed to seek offers in excess of £1,150,000 to reflect a net initial yield of 7.38% after standard purchaser’s costs.

VATThe property is registered for VAT and it is anticipated that the sale will be dealt with by way of a TOGC (Transfer of a Going Concern).

FURTHER INFORMATIONPlease Contact:

MISREPRESENTATION ACTThese particulars are intended only as a guide to prospective purchasers to enable them to decide whether to make further inquiries with a view to taking up negotiations but they are otherwise not intended to be relied upon in any way or for any purpose whatsoever and accordingly neither their accuracy nor the continued availability of the property is in any way guaranteed and they are furnished on the express understanding that neither the agent nor the vendor is to be, or come, under any liability or claim in respect of their contents. The vendor does not hereby make or give nor does any Partner or employee of Smith Price RRG LLP have any authority to make or give any representation or warranty whatsoever as regards the property or otherwise. Any prospective purchaser or lessee or other person in any way interested in the property should satisfy himself by inspection or otherwise as to the correctness of each statement contained in these particulars. In the event of the agents supplying any further information or expressing any opinions to a prospective purchaser, whether oral or in writing, such information or expression of opinion must be treated as given on the same basis as these particulars. These particulars do not form part of any contract and, except where expressly otherwise stated, offers will be considered only subject to contract.Smith Price RRG LLP is a limited liability partnership registered in England and Wales.Registered number: OC318959. Registered office: 5/7 John Princes Street, London W1G 0JN

SUBJECT TO CONTRACT

ST LEONARDS-ON-SEA26/28 London Road & 35 Shepherd Street, East Sussex TN37 6AN

BILL STEPHENS Tel: 020 7318 5628 Email: billstephens@sprrg.co.uk

SIMON GREGORY Tel: 020 7318 5626 Email: sgregory@sprrg.co.uk