Unit C1, Brunel Street Works, Canning Town, London, E16 4HQ
Key features
- Situated within a wider scheme (Brunel Street Works) that will be providing a new 152 bed hotel, 975 residential units and just over 32,000 sq ft GIA.
- Offers in excess of ?1,499,000, which represents a Net Initial Yield of 4.401%, after deducting purchaser's costs of 6.08%
- Agreement to lease in place to Sainsbury's Supermarkets Limited for a new 15 year lease, with a tenant only break clause on the 10th year of the term, at a rental of ?70,000 per annum exclusive.
- Lease due to commence in May 2021.
- Ground floor retail premises providing approximately 4,973 sq ft GIA.
- 250 year long leasehold, minus 3 days.
- 5 yearly RPI linked reviews, collared and capped at 1% and 4%, compounded annually.
Description
The unit is located on the ground floor of the development in Block C and is part of a new mixeduse scheme with residential above. The approximate floor area of the commercial space on the ground floor is 4,973sq ft GIA.
The Brunel Street Works development sits within the Canning Town Regeneration Area, which is made up of a number of sites across an area approximately 62 acres in size. Immediately adjacent to Canning Town Underground Station, the overall scheme will provide over 32,000 sq ft of creative commercial space, a 152 Bedroom hotel let to Premier Inn and 975 residential units. The area has seen the development of a substantial number of new residential units over the last 10 years and is now seeing a growing creative business community being established together with expanding retail and leisure facilities.
An agreement to lease is in place for a new 15 year lease, with a tenant only break option on the 10th anniversary of the term, at a rent of ?70,000 per annum exclusive, reflecting an economical rent of ?14.07 per sq ft on a GIA basis. The lease provides for 5 yearly RPI linked reviews, collared and capped at 1% and 4%, compounded annually. Lease start date from construction practical completion, anticipated May 2021. The tenant has been granted 3 months rent free at the commencement of the lease. This shall be topped up by the vendor if it has not expired by the time of the sale.