• Located in an affluent and vibrant London area

• Newly developed in 2019

• The property forms the ground floor retail offering for a prestige, award-winning development (Residential units sold in excess of £800,000)

• Let to Majestic Wine (Net Assets £80.45m)

• Majestic Wine is owned by the global investment group Fortress

• In excess of 13 years unexpired lease term (over 8 years to break)

• Excellent payment history with no payment delays during lockdown

• £1,750,000, subject to contract

• Net Initial Yield 5.35%

The property lies within the Blackheath Conservation area and occupies a highly prominent position fronting Lee Terrace, just moments away from the village’s vibrant high street, train station and Blackheath common. 

The property also benefits from being in a densely populated residential area.

Situated on the site of a former car showroom, the property forms the commercial element of “Forbury” a prestige, contemporary development by Berkeley Homes completed in 2019.  The residential element comprises 24 luxury properties with 14 of these homes being apartments and 10 being townhouses. 

The highly attractive scheme was voted “Best Small Development” by the Evening Standard New Homes Awards and awarded Silver in the 2020 Best Luxury Development award by WhatHouse?

The investment comprises the ground floor which has been fitted out by the tenant to a high specification and benefits from extensive glass floor-to-ceiling frontage. 

The property has an EPC rating of A. A copy of the EPC is held within the data room.

Under the terms of the Headlease the property may be used as a BMW car showroom, a Majestic Wine retail store or other upmarket wine merchant for the retail sale of wines, spirits, beers and ancillary items normally sold in Majestic Wine retail stores or other high class use within Classes A1, A2 or B1 (A) of the Schedule to the Town & Country (Use Classes) Order 1987 Part II (as in force at 1^st August 2015). 

The following uses are expressly prohibited: Retail Warehouses, Funeral directors, Dry cleaners, Pet Shops, Charity shops, Betting shops and establishments, Payday Loan shops, Off-licences save as permitted above, Sex shops, erotic dancing premises or stores for the sale of products of disrepute and any use in connection with drug or criminal rehabilitation or management.

Planning use is as a retail warehouse (use class A1).

Virtual Freehold.  999 year lease from 15^th July 2019 at a peppercorn rent.

The long leaseholder has a right to use five car parking spaces.

For the year ending 1st April 2019, Majestic Wine Warehouses Limited (Co. No. 01594599) reported the following figures:

Majestic Wine is the UK’s largest specialist wine retailer. Originally founded as ‘Majestic Vintners’ by Sheldon Graner in 1980, the first warehouse was opened in Harringay, North London. There are now over 200 stores in the UK and another two in France. For further information visit www.majestic.co.uk.

In December 2019 Majestic Wine completed the sale of its business to US investment firm Fortress Investment Group for £95 million. Fortress is a leading, highly diversified global investment manager with approximately $52.7 billion of assets under management as of 31st December 2020. Founded in 1998, Fortress manages assets on behalf of approximately 1,800 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies. With headquarters in New York, the company has approximately 840 employees. For further information see www.fortress.com.

Majestic Wine is bucking the retail trend with new store openings. The company has revealed a new expansion strategy as it targets future growth across the UK and has said it recorded a “transformational year” which has seen the launch of new branding, a 65 per cent change in the products stocked, a new website and core systems and two other new stores. The company also reported that the number of new customers rose by 70 per cent, with a “significant online growth” in the past 12 months. New developments that further link the digital and store experience will launch later this year as the business remains committed to a nationwide network of physical stores, which also act as hubs for home delivery. Chief Executive John Colley has been quoted as saying that the company is “in a very strong position….our model is truly omnichannel, with a strong online presence backed up by the only national chain of wine, beer and spirits stores”. (Source: Retail Gazette)

Majestic Wine was named as one of the Best Places to Work in 2020 after receiving a Glassdoor Employees’ Choice Award, ranking at number 19 in the Top 50 and being the highest ranked retailer on the list. 

The property has been registered for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

1. An opportunity to acquire a flagship retail investment in an affluent London borough;

2. The investment provides very secure income, being let to Majestic Wine (Net Assets £80.45m), owned by the global investment group Fortress ($52.7 billion of assets under management);

3. Long income investment with over 13 years unexpired lease term and over 8 years to break;

4. The property forms part of a prestige, award winning development by Berkeley Homes;

5. As an indication of the attractiveness of the Blackheath area, it has been reported on Zoopla that the average price paid for a house in Blackheath over the past 12 months is approximately £730,000;

6. A purchase at the asking price reflects an attractive net initial yield.

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