Highly Secure London Bank Investment - Santander

22-24 The Broadway | Southall | London | UB1 1PS


subject to contract

Click To Purchase


  • Located in a vibrant London borough, only 10 minutes journey time from Heathrow Airport

  • Key Crossrail Beneficiary in 2022

  • Undoubted Income - let to Santander UK PLC

  • New 5 year lease from December 2020; open market rent renewal

  • Tenant has been in occupation since the 1970’s

  • VAT-free investment

  • The only Santander in Southall

  • Potential future redevelopment of the upper parts, subject to planning

  • Freehold

  • £4,000,000, subject to contract

  • 5.0% Net Initial Yield



Southall is a lively and diverse area of West London, situated in the London Borough of Ealing. Southall sits approximately 21 km (13 miles) west of Central London and 8 km (5 miles) north-east of Heathrow Airport, the largest and busiest airport in the UK.

Southall railway station sits just three stops from London Paddington in Zone 4 on the Great Western Railway main line, enabling passengers to connect with Central London in approximately 15 minutes. Journey times to Heathrow Airport are approximately 10 minutes. Junction 3 of the M4 Motorway is approximately 4.8 km (3 miles) to the south-west. Frequent bus services link Southall with all neighbouring suburbs and Heathrow Airport

Significant Infrastructure Enhancements

Southall is set to benefit from the highly anticipated Crossrail and will be served by the Elizabeth line. Scheduled to start operating in the first half of 2022, Southall station is benefitting from major improvements in preparation for the new services. These include a redeveloped station entrance and façade, 200+ metre long platforms and improvements to the area around the station. When the full route opens there will be ten Elizabeth line services an hour in each direction, making it even quicker and easier to get to destinations across London, South Bucks and Berkshire. The travel time to Heathrow Airport is expected to be cut to just eight minutes.

The Southall area is experiencing significant regeneration. One of the most ambitious projects is The Green Quarter, where Berkeley is transforming an 88-acre former gasworks site into a new community including 3,750 high-quality new homes, 13 acres of parkland, schools, shops and restaurants.


The property occupies a prime retailing pitch on the northern side of The Broadway, Southall’s main retailing thoroughfare, close to its junction with Greenford Avenue. Southall train station is less than 0.8 km (0.5 miles) to the south.

The Broadway provides a diverse range of both local and national multiple retailers including Superdrug, Lloyds Bank, HSBC, Holland & Barrett, Poundland and The Post Office.



The property comprises a ground floor retail unit configured as an open-plan banking area that has been fitted out by the tenant, Santander, in their usual corporate style.

The first and second floors are accessed via a staircase located towards the front of the ground floor and provide a combination of office, staff and ancillary accommodation.

We believe there may be an opportunity, subject to planning, to enhance value by creating residential accommodation on the first and second floors should the property be redeveloped in the future.


The property has been measured by Plowman Craven and provides the following net internal floor areas;

Zone A   59.8 sq m 644 sq ft
Zone B   59.4 sq m 639 sq ft
Zone C   52.2 sq m 562 sq ft
Zone D   13.1 sq m 141 sq ft
ITZA     1,122
Total Ground Floor Retail 184.5 sq m 1,986 sq ft
First Floor Office/Ancillary 60.20 sq m 648 sq ft
Second Floor Office/Ancillary 76.65 sq m 825 sq ft
TOTAL   321.35 sq m 3,459 sq ft

A copy of the floor areas and floor plans is available to download.





The property is entirely let to Santander UK PLC on a full repairing and insuring basis for a term of 5 years from 25th December 2020, expiring on 24th December 2025. The lease is within the Landlord and Tenant Act 1954 and so has security of tenure.

The current passing rent is £216,000 per annum which, based on our analysis, equates to £181.00 Zone A, allowing £12 per sq ft / £129 per sq m on the first floor and £6.00 per sq ft / £65 per sq m on the second floor.

The tenant has been in occupation since the 1970's. The most recent lease renewal took place in December 2020. The fact that the tenant has extended their lease during COVID-19 demonstrates their desire to remain in the property.


Rental Value

The passing rent for the subject property at £216,000 per annum equates to £181.00 Zone A.  Being set recently in December 2020, clearly this rent represents the open market rental value given it was negotiated between landlord and tenant.

We understand that a lease renewal at 23-25 The Broadway (Lloyds Bank) effective in December 2016 was agreed at £234,500 per annum reflecting £181.25 Zone A. In addition, lease renewals at 19-21 The Broadway (Superdrug) and 40/4A The Broadway (Halifax) in June 2018 were both agreed at Zone A rates of £181.25. The tone of rents in Southall is well established at these levels.

Asset Management

By assessing the rental value in relation to the ground floor area at £203,275 per annum (having allowed the above-mentioned figures for the first and second floors), the pro-rate value for the upper areas of the property (based upon our asking price) is £185,000 equating to only £125 per sq ft / £1,345 per sq m. This stands at a significant discount to resale values in the area – for example, properties at the Green Quarter nearby are being marketed at between £639 per sq ft / £6,878 per sq m and £726 per sq ft / £7,815 per sq m.

As a result, we suggest that there exists potential to enhance value in relation to the upper floors.



Santander UK PLC (Co No.02294747) has reported the following figures:

  31st December 2020 31st December 2019
Total Operating Income £3,958 million £4,170 million
Pre-Tax Profits £552 million £981 million
Shareholders’ Equity £15,848 million £15,946 million

Santander UK is a large retail and commercial bank based in the UK and a wholly owned subsidiary of the major global bank Banco Santander. In 2020 the company had 14.3 million active customers and provided £170 billion customer loans. For further information visit www.santander.co.uk.


The property has not been registered for VAT and, therefore, VAT is not applicable on the purchase price.


Investment Evidence

Parties are invited to refer to the following recent sales evidence for properties let to Santander:

Property Date Sold Lease Expiry Sale Price NIY
35 Old Church Road, Chingford, London Feb 2021 Dec 2025 £561,000 3.99%
115 Station Road, Edgware, London Feb 2021 Dec 2025 £777,000 4.15%
49 Woodcote Road, Wallington, Surrey Feb 2021 Dec 2025 £727,000 4.31%
330 Wimborne Road, Bournemouth Feb 2021 Dec 2025 £450,000 4.68%
42 Town Street, Horsforth, Leeds March 2021 Dec 2025 £290,000 4.8%
138 Brighton Road, Coulsdon, Surrey March 2021 Dec 2023 £534,000 4.82%
6-8 Flixton Road, Urmston, Manchester March 2021 Dec 2025 £336,000 5.02%


We are instructed to seek a figure of £4,000,000 (Four Million Pounds) subject to contract, reflecting a net initial yield of 5.0%, assuming standard purchaser’s costs of 6.51%.

Please note that a purchaser will be re-charged the costs of the searches which are provided in the data room.


Investment Considerations

  1. An opportunity to acquire a London investment in a vibrant Borough;

  2. A key beneficiary of Crossrail, servicing Heathrow Airport in less than 10 minutes;

  3. Undoubted income – let to Santander UK PLC (Pre-Tax Profits £552 million);

  4. New 5 year lease from December 2020;

  5. Santander has been in occupation since the 1970’s and renewed their lease during COVID-19, demonstrating their commitment to the property;

  6. VAT-free investment;

  7. The property is the only Santander bank in Southall;

  8. The property occupies a prime retailing pitch;

  9. Potential future redevelopment of the upper parts, subject to planning;

  10. Freehold;

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

  12. Attractive lot size to an investor.

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Contact Us

Singer Vielle   +44 (0) 207 935 7200
Neil Singer neil@singervielle.co.uk +44 (0) 203 478 9120
Dale Henry dale@singervielle.co.uk +44 (0) 203 701 1356

Vendors Solicitor

Addleshaw Goddard  +44 (0) 161 934 6241
Ashley Raine ashley.raine@addleshawgoddard.com
Josh Bragg josh.bragg@addleshawgoddard.com