• South East retail investment opportunity

• Affluent Sussex market town

• Let to expanding retailer Waterstones

• September 2017 lease renewal

• Re-based rent

• Attractive lot size - £540,000, subject to contract

• 7.0% net initial yield

• To be sold by clicktopurchase Best Offers by 3.00pm Thursday 1st February 2018, unless sold prior

The property is situated in a prime retailing pitch on London Road, East Grinstead’s main retail thoroughfare. London Road is the centre of activity for the town and national retailers trading alongside the tenant include EE, The Carphone Warehouse, Shoe Zone, M&Co as well as The Edinburgh Woollen Mill, Costa Coffee, Boots, O2, Clarks and Poundland.

The town is set to benefit from the redevelopment of Queens Walk. Sitting alongside London Road works are underway to redevelop the site into a mixed-use scheme to provide approximately 130 new homes plus commercial accommodation and associated public realm. As part of the scheme Martells Department Store relocated from Queens Walk to new premises on Whitehall Parade and the new store opened in May 2017.

The property comprises a retail unit arranged on ground floor only. Internally, the retail floor area is predominately open plan with ancillary areas and has been fitted out by the tenant to their usual corporate style.

The upper parts are being converted into residential flats which will enhance the quality of the overall property. Copies of the plans are available to download for information.

A term of 999 years less 3 days from 21st March 2017 at a peppercorn.

The property is let to Waterstones Booksellers Limited on a Full Repairing and Insuring lease for a term of 10 years from 26th September 2017 expiring on 25th September 2027 at a passing rent of £40,000 per annum which equates to £48.19 Zone A.

The tenant benefits from a 6 month rent free period until 26th March 2018; an adjustment will be made to the purchase price on completion in order that a purchaser does not incur an income shortfall.

In addition, the tenant may terminate the lease on 26th September 2022 by serving no less than 6 month’s written notice and the lease benefits from a rent review at the same juncture if the option to break is not exercised.

The tenant has been in occupation since at least 2012 and entered into a new lease as above demonstrating its desire to remain in this property and this location. The rent under the previous lease was £58,000 per annum.

A service charge is in place for repair, maintenance and insuring the common parts which is fully recoverable from the tenant.

VAT will be payable on the purchase price due to the sale not being treated as a Transfer of a Going Concern (TOGC).

We are instructed to seek offers in the region of £540,000 (Five hundred and forty thousand pounds), subject to contract, reflecting a net initial yield of 7.0%, assuming purchaser’s costs of 4.88%.