• Attractive London Retail Investment

• Highly secure income - let to Costa Limited

• Pre-Tax Profits £127m, Shareholders’ Funds £450m

• New letting

• No VAT payable

• £665,000, subject to contract

• Net initial yield 5.0%

The property is situated in a prominent retailing pitch on the eastern side of Norwood Road (A215), in the heart of West Norwood. Surrounding occupiers include Iceland, Subway, Superdrug, KFC, The Co-Operative Food, Tesco, Ladbrokes, Greggs and B&Q.

There is short-term free parking outside the unit and on side roads nearby.

Norwood Road leads to onto the South Circular (A205) to the north via the centre of Tulse Hill. The South Circular connects Dulwich and Streatham and provides access into Brixton Hill (A23) or Tulse Hill (A204) to Brixton.

Tulse Hill Station is less than half a mile to the north and provides a service into both London Bridge within 17 minutes and Blackfriars within 15 minutes. West Norwood Station is less than a quarter of a mile to the south providing a service into London Victoria within 23 minutes as well as London Bridge.

The property also benefits from being directly opposite ‘The Loft’, a new development of nine 2 & 3 bedroom duplex apartments by pedder New Homes.

The property comprises a ground floor unit, which has been recently fitted out by Costa Coffee in their new corporate style. There is rear access via a mews link back on to Norwood Road.

The first and second floors comprise a 2-bedroom residential flat with its own access from the rear mews, which has been sold off on a long lease.

Freehold

Tenancy

The ground floor is let to Costa Limited on a full repairing and insuring lease for a term of 10 years from 8th October 2015, expiring 7th October 2025. There is a tenant’s break option on 7th October 2021, subject to 6 months’ written notice.

The current passing rent is £35,000 per annum and the lease benefits from an upward only rent reviews on 8th October 2020.

The first and second floor residential flat is let on a long lease from 1st January 2016 expiring 31st December 2190 at a ground rent of £100 per annum, rising to £700 across the term. The long leaseholder pays a fair proportion of the building insurance and building maintenance.

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.

Costa Limited (Co. No. 1270695) has reported the following figures:

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.

The ultimate parent undertaking is Whitbread PLC, the UK’s largest hotel, restaurant and coffee shop operator with 45,000 employees. It is one of the UK’s most successful FTSE 100 companies. For the year ending 26th February 2015 the company reported:

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

1. An opportunity to acquire an attractive London retail investment;

2. The investment provides very secure income, let to Costa Limited; Pre-Tax Profits £127m, Shareholders’ Funds £449.5m;

3. The property benefits from Mixed Use Class A1/A3 planning consent;

4. The property occupies a prominent retailing position in the heart of West Norwood;

5. No VAT payable;

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

7. Attractive lot size for an investor.