• Attractive London Investment

• New development

• New 15 year lease

• RPI Rent Reviews

• Highly visible location

• £370,000, subject to contract

• Net initial yield 5.50%

The property is situated in a prominent position on Morden Road at the junction where Merton High Street and Kingston Road merge diagonally opposite South Wimbledon Underground Station on the boundary between Zone 3 and Zone 4 of the Northern Line.

The surrounding area is a blend of high density residential houses and apartments plus commercial uses providing a range of local amenities including a Tesco Express, which is adjacent the property, as well as various retail, convenience, food and banking occupiers.

The property comprises a self-contained ground floor unit within a new contemporary commercial and residential development. The unit has recently opened following a full fit out by the tenant in Costa’s latest corporate style.

The ground floor retail unit benefits from permission for Mixed Use Class A1/A3. A copy of the planning permission is available to download in the legal data room.

The interest for sale is a 999 year lease from 30th October 2015 at a peppercorn ground rent.

The tenant, Yasir & Eamon Limited (Co. No. 08651539), is a Costa coffee franchise partner with shops in North Cheam, Sunbury Cross and South Wimbledon plus this unit. For the year ending 31st October 2015 the company reported Cash at bank and in hand of £116,648 and negative Shareholders’ Funds of £29,882.

According to Costa’s website due to the popularity of their Costa Full Store Franchise offer they are only working with large businesses that have an opportunity for a minimum of 10 store locations or more. In addition, the company is not recruiting any new UK Individual Franchise’s and nor are there any ‘new’ franchise regions currently available anywhere in the United Kingdom.

Costa was founded in 1971 and is now the largest and fastest growing coffee chain in the UK, currently with over 1,900 coffee shops in the UK, over 1,100 stores in 29 international markets and over 4,200 Costa Express self-serve units. Costa created 1,900 new UK jobs during the last financial year and opened 176 net new UK stores. The Costa Coffee Club has around 2.5 million active card holders.

Since 2007/08 Costa has grown its total system sales from £0.3 billion to £1.4 billion and aims to grow this to around £2.5 billion by 2020.

For more details go to www.costa.co.uk.

VAT will be payable on the purchase price. However, it is envisaged the transaction will be treated as a Transfer of a Going Concern (TOGC).

1. An opportunity to acquire an attractive new London Costa Coffee investment;

2. The unit is situated in a highly prominent positon on Morden Road at the junction where Merton High Street and Kingston Road merge adjacent to a Tesco Express and diagonally opposite South Wimbledon Underground Station;

3. The lease benefits from rent reviews in line with the Retail Price Index (RPI);

4. A purchase at the asking price will provide an investor with an attractive net initial yield;

5. Attractive lot size for an investor.