Located 35 miles to the south of central London and 40 miles to the north of Gatwick Airport.
Established location 7 miles to the south of the Croydon town centre off the A23 Purley Way.
The building has been extensively refurbished and upgraded.
Floor area 40,000 sq ft / 3,715 sq m (Est. GIA)
Site area 1.72 acre (approximately.
Let to Selco Trades Centres Ltd for a term of 15 years from 28 June 2016 subject to 5 yearly upwards only rent reviews.
Rent £400,000 per annum exclusive.
89 year unexpired Head lease for sale subject to 10 yearly upwards only rent reviews to 15% OMV, next review 2022, Current Rent payable £32,000 per annum.
We are instructed to seek offers in excess of £6,500,000.
A purchase at this level reflects a net yield of 5.35%.
Tenure
The property is held on a long leasehold interest for a term of 125 years from 25 December 1982. The lease is subject to upwards only rent reviews every 10 years to 15% of the open market rental value the next review being in 2022. The current rent payable to the freeholder is £32,000 per annum exclusive.
Lease
The premises are let to Selco Trad Centres Limited (company number 02182671) for a term of 15 years from 28 June 2016. The lease is drawn of full repairing and insuring terms subject to a Schedule of Condition. The lease contains upwards only rent reviews at the end of the 5th and 10th years.
Covenant Information
Selco Trade Centres originated in 1895 as Sewell & Co (Timber) a family owned business in Birmingham. In 1982 the company changed its name to Selco and in 1998 was purchased by Grafton Group Plc. It currently has over 60 branches throughout England and Wales. For the year ending December 2016 turnover was in excess of £399 million, in the order of 13% on the previous year. The pre-tax profit for he year ending December 2016 was in the order of £46.5 million.
Proposal
Our clients are seeking offers in excess of £6,500,000 exclusive of VAT for the benefit of their Head leasehold interest.
A purchase at this level based upon a net income of £368,000 per annum (after deducting payment of the head lease rent) reflects a yield of 5.35% assuming purchasers cost of 5.8%.
Listed Features
- Refurbished
