Tesco Express, 350-354 Malden RoadWorcester Park, KT4 7NW

Description
The property comprises a two storey mid terraced building with brick elevations beneath a pitched tile roof. There is a single storey extension to the rear of the ground floor.

The ground floor extends to 3,197sq ft and provides the primary sales area as well as ancillary space to the rear which includes an office, bakery, walk in fridge, walk in freezer, staff toilet and stores.

The upper floor comprise four apartments with separate access from Malden Road which have all been sold off on long leases.

Tenure & Planning
Freehold

The property is not listed nor is it situated within a conservation area.

Tenancy
The ground floor of the property is let on a 20 year full repairing and insuring lease to Tesco Stores Limited (Company Number 00519500) expiring on 31st July 2032 at a current rent of £56,361 per annum subject to five yearly annually compounded rent reviews with a cap of 4% and a collar of 0%. The next rent review is on 1st August 2022 and the vendor will top up the rent to £65,618 per annum.

The upper floors have been sold off on four separate long leases all for a term of 999 years from 1st August 2012 at a ground rent of £350 per annum per apartment which doubles every 25 years. The combined apartment ground rents total £1,400 per annum.

Covenant
The property is let to Tesco Stores Limited, a subsidiary of Tesco Plc which was founded in 1919 and is currently the UK’s largest retailer with over 2,750 outlets and 360,000 employees in the UK. Tesco Stores Limited parent company, Tesco Plc is currently listed on the London Stock Exchange in the FTSE 100 Index with a market capitalisation of £21.09bn as of 3rd November 2021. Tesco Stores limited have been given a Dun and Bradsteet rating of 5A2 and an ICANS™ score of 76/100 which represents a low risk of business failure.

Terms & VAT
We are instructed to invite offers in excess of £1,333,000 with a sale at this level reflecting 4.75% NIY, assuming the usual purchasers costs and total income of
£67,018 per annum.

It is envisaged that the property will be sold as a TOGC so the transaction should therefore be exempt from VAT.

Money Laundering Regulations & Viewing
Money laundering regulations require Savills to conduct checks upon all purchasers. Prospective purchasers will need to provide proof of identity and residence.

All viewings must be made by prior appointment and under no circumstances should any direct approach be made to any of the occupational tenants staff.