Commercial property for sale in Millharbour, London E14
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Property description
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.
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).
Property info
09082021 Layouten Ground Floor Condenser Location Highlighted.pdf View original
View Floorplan 1(Opens in a new window)
* Sizes listed are approximate. Please contact the agent to confirm actual size.
For more information about this property, please contact
Cherryman Ltd, E14 on +44 20 8022 7458 * (local rate)
Disclaimer
Property descriptions and related information displayed on this page, with the exclusion of Running Costs data, are marketing materials provided by Cherryman Ltd, and do not constitute property particulars. Please contact Cherryman Ltd for full details and further information. The Running Costs data displayed on this page are provided by PrimeLocation to give an indication of potential running costs based on various data sources. PrimeLocation does not warrant or accept any responsibility for the accuracy or completeness of the property descriptions, related information or Running Costs data provided here.