Commercial property for sale in Millharbour, London E14

Key Points

Description

The property occupies the ground floor and benefits from outside seating. There are residential apartments above and a private basement car-park below with 7 parking spaces allocated to this unit. The tenant air-conditioning plant is also situated within the car-park area.

Yo Home carried out an extensive fit-out when they moved into the property in 2022 consisting of the supermarket area along with a café area serving light snacks and drinks.

Location

The property is located in the South Quay district of the London Docklands accessed via Millharbour road or by foot along the dock walkway.

Canary Wharf is within a 5 minute walk comprising of over 20 million sq. Ft. Of offices and 200 shops, restaurants and bars with plans to expand a further 5 Million sq.ft at Wood Wharf, Riverside South and North Quay.

By train, South Quay DLR station is within 2 minute walk which is one stop from the Jubilee Line at Canary Wharf. The new Elizabeth Line (Crossrail) can also be accessed at Canary Wharf.

Availability_Text

The accommodation comprises the following area:

Tenancy Details

The property is leased for 10 year from 23rd February 2022 thus expiring in 2032 on a Full Repairing and Insuring basis paying £165,000 pa (equivalent to £26 per sq.ft) with an upwards only rent review on 22nd February 2027.

Commercial Market

With the increase in local residential population there is a good level of demand for ground floor commercial units.

Recent leasing evidence on inferior units without the benefit of dock frontage are at an average of £30 per sq.ft with dockside units in Harbour Exchange Square (opposite) quoting a rent of £35 per sq.ft.

Recent sales evidence is dominated by selling vacant units to owner occupiers where we have either agreed or are currently marketing units in a range of £450-600 per sq.ft.

Situation

The property is situated on the ground floor of a modern 22 storey high-rise residential development of 270 apartments adjacent to Millwall Dock.

Over the last 20 years the Isle of Dogs has witnessed significant regenerative development dominated by high-rise commercial led buildings on the Canary Wharf estate to the north and residential mixed-use schemes in the surrounding South Quay area.

The building sits next to Ballymore Properties consented development at Millharbour Village which is a 2.6 hectare mixed-use scheme that will include 1,690 new apartments and two parks creating over 43,000 sq ft of green space, one of which will sit immediately to the north of this property.

Price

The long-leasehold interest is for sale with the benefit of the income from the tenant at an asking price of £2,300,000 (+ VAT) the equivalent of £362 per sq.ft. A sale at this level represents a 6.76% Net Initial Yield after allowing for standard purchasers costs and a triple net yield of 6.6% after allowing for the additional payment of annual ground rent.

Tenure & Ground Rent

The property is held on a 125 year long-leasehold from 2009 thus having 111 unexpired.

The headlease being offered pays the freeholder a ground rent of £2,500 pa with reviews every 10 years (next in 2031) increasing the rent in line with the Retail Price Index (rpi).