Secure supermarket and ground rent investment in wealthy seaside town
6,030 sq ft (GIA) retail unit over ground floor sales and basement storage
Prominent corner location fronting the town's prime retailing street
The property is held on a 999-year leasehold interest (879 years unexpired) with an £88 fixed annual ground rent
Let to the undoubted covenant of Sainsbury's Supermarkets Limited - over £23bn turnover
Excellent trading record benefits from significant boost during the busy summer season and the Lytham Festival
Let for a term of 15 years with effect from 29th April 2013, expiring 28th April 2028 (9.2 years unexpired)
Tenant option to determine in April 2023 (4.2 years unexpired)
This represents a very low rent ITZA of just £25 psf (recent deals suggest market rent at c. £45 psf ITZA)
5 yearly upward only rent reviews linked to RPI – Next review due in April 2023 (collared and capped at 1%-4%)
Benefits from ground rent income on the residential uppers totalling £500 per annum
Total rental income of £45,260 per annum
Current ERV of £46,285 per annum and reversionary to £51,308 per annum (assuming RPI of 3%)
Offers in excess of £740,000 (STC)
5.80% Net Initial Yield, 6.58% Reversionary Yield (2023)
