• 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

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.

Freehold.

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.

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:

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.

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

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%.

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