• Attractive London Investment

• New development

• New 15 year lease

• £550,000, subject to contract

• Net initial yield 6.0%

The property is situated in a prominent location on the northern side of Kingston Road between the junctions of Rothesay Avenue and Sandringham Avenue adjacent to a Tesco Express and Wimbledon Chase railway station. The station is served by Thameslink trains on Sutton Loop Line within Zone 3.

The surrounding area is a blend of high density residential houses and apartments plus commercial uses providing a range of local amenities.

The interest for sale comprises a ground floor unit within a new contemporary commercial and residential development.

The unit also benefits from 2 car parking spaces within a private garage at the rear behind automated roller shutters included in the tenants lease. At the time of the letting these were not rentalised. There are two other spaces which have recently been sold for £25,000 each. Therefore, based upon this evidence there is underlying value of £50,000 for the benefit of a purchaser.

The tenant has spent in the order of £245,000 fitting out the unit to 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 new 999 year lease at an annual ground rent of £150 with rent reviews during the term.

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.

The guarantor, Tala & Maya Limited (Co. No. 06369760), is also a Costa coffee franchise partner which has reported the following figures;

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).

Our client is seeking offers in the region of £550,000 (Five Hundred and Fifty Thousand Pounds), subject to contract, reflecting a net initial yield of 6.0% (assuming standard purchasing costs of 4.89%).

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

2. The unit is situated within a new residential and commercial development adjacent to a Tesco Express and Wimbledon Chase train station;

3. The property occupies a highly visible position fronting a busy road;

4. Underlying value in the car parking spaces to the benefit of a purchaser;

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

6. Attractive lot size for an investor.