Summary
London Investment within the prestigious Hallsville Quarter
Located in the heart of a major regeneration project
Newly developed in 2018
Let to Superdrug Stores Plc (Revenue £1. 16 billion, Net Worth £345 million)
Over 5 years unexpired with no breaks
Tenant did not exercise the 2023 break clause
Nearby businesses include Pret A Manager, Starbucks and McDonald’s
150 metres from Canning Town Station
Income of £110, 000 per annum
Upwards only rent review in October 2023
250 Long Leasehold at a peppercorn rental
£1, 480, 000, subject to contract
7% Net Initial Yield
Location
Canning Town is located within the London Borough of Newham and situated
approximately 7 miles (11 km) east of Central London, 2. 3 miles (3. 7 km) east
of Canary Wharf, 3. 2 miles (5. 1 km) South of Stratford, 9. 6 miles (15. 4 km)
south of Romford and 17. 4 miles (28 km) north east of the Dartford Crossing.
The area benefits from good road communications being located along the A13
Newham Way, 3. 5 miles (5. 6 km) east of the North Circular Road and 20 miles
(32 km) east of Junction 31 of the M25 Motorway. The intersection of the M25
Motorway and the M20 Motorway is 18 miles (29. 9 km) to the south east and the
intersection of the M25 Motorway and the A12 is approximately 21 miles (33. 7
km) to the north east.
The location is served by Canning Town underground station (Jubilee Line and
DLR), providing a journey time to London Liverpool Street in approximately 19
minutes and to Bond Street in approximately 24 minutes. It is just 2 minutes
from North Greenwich and The 02. Canning Town is served by multiple bus routes
in all directions.
London City Airport is located approximately 2. 5 miles (4 km) to the South,
London Heathrow Airport is approximately 20 miles (32 km) to the West, London
Stansted Airport is approximately 32 miles (51. 4 km) to the north east and
Southend Airport is approximately 35. 3 miles (56. 8 km) to the East.
The Canning Town and Custom House Masterplan is a phased regeneration scheme
which will see new developments, public squares, parks, improved road networks
and infrastructure around Canning Town and Custom House. (Source: ).
The London Borough of Newham is estimated to have a population of 307, 984, the
highest figure of all inner London boroughs and the seventh highest in Greater
London. According to gla projections, Newham’s population is due to reach
approximately 428, 500 by 2041. (Source: )
Hallsville Quarter
Click Here and scroll down to see all the nearby businesses and street traders
plan for all phases.
Hallsville Quarter is one of the largest London town centre regeneration
projects, a partnership between Linkcity and the London Borough of Newham.
This project forms part of the £3. 7 billion Canning Town and Custom House
Regeneration Programme.
The scheme is being delivered over five phases and will provide approximately
1, 100 new homes, 30, 000 sq. m / 322, 917 sq ft of retail and leisure
accommodation, new pedestrian links, cyclist provisions and 1, 100 parking
spaces.
After successfully opening Phases 1 and 2 of the development, Hallsville
Quarter is now an active location, benefitting from a high level of footfall,
partly supported by the 12 million annual footfall at Canning Town Station
(opposite).
Phase 3 is currently underway, and the first phase completes in July 2023.
This phase brings a further 620 new homes a new large food store, additional
retail accommodation, and a 3 - screen boutique cinema.
This is an exciting and brand - new neighbourhood in the heart of Canning Town
which is already exceptionally busy and set to grow as the last three phases
complete.
Situation
The property occupies one of the best positions within Hallsville Quarter
directly next door to a Morrisons Superstore.
Other businesses in the vicinity include Pret A Manager, Starbucks,
McDonald’s, Ibis Hotel, Wok & Go and The Gym to name a few.
Hallsville Quarter has become a convenient pedestrianised cut through route to
other parts of Canning Town. The property sits within the heart of the
Hallsville Quarter regeneration project and benefits from destination led
visitors as well as general passersby.
Canning Town Station is approximately 150 metres from the property and Newham
Way (A13) is approximately 130 metres north of the property and is the main
route to the M25 and to other parts of London.
Description
The property comprises a recently developed (2018) open plan retail unit
arranged over ground floor only.
The ground floor comprises sales accommodation to the front of the shop and
ancillary accommodation, storage, WCs, an office and a staff area to the rear.
There is a fire escape at the back of the property.
The property benefits from an impressive awning to the front and has been
fitted out by Superdrug in the usual corporate style.
Accommodation
The property has been measured by bkr Floor plans and provides the following
net initial floor areas:
Net Frontage 7. 67 m 7. 67 m
Gross Frontage 8. 31 m 27’3”
Ground Floor NIA 297, 74 sq m 3, 205 sq ft
Zone A 45. 43 sq m 489 sq ft
Zone B 46. 26 sq m 498 sq ft
Zone C 46. 64 sq m 502 sq ft
Remainder 159. 42 sq m 1, 716 sq ft
Total gia 306. 20 sq m 3, 296 ft
A measured survey and set of floor plans are available to download. This will
be assigned to a purchaser at a cost of £590 + VAT.
Tenure
The property is held on a long leasehold for 250 years less 10 days from 14th
December 2012, expiring 4th December 2262 at a peppercorn rental. Therefore,
there are over 239 years unexpired.
Further information can be downloaded from the data room.
Tenancy
The property is let to Superdrug Stores Plc on a new full repairing and
insuring lease for a term of 10 years from 17th October 2018, expiring 16th
October 2028.
The lease incorporates a tenant break option in October 2023, however the
tenant did not exercise the break option. This demonstrates the tenant’s
commitment to the location and property.
There is an upwards only rent review effective 17th October 2023.
Therefore, there are in excess of 5 years unexpired with no breaks.
The passing rent is £110, 000 per annum.
Covenant
Superdrug Stores Plc (co. No. 00807043), has reported the following figures.
1 January 2022 26 December 2020 28 December 2019
Revenue £1, 167, 828, 000 £1, 111, 403, 000 £1, 303, 797, 000
Pre - Tax Profits £45, 282, 000 £18, 763, 000 £89, 398, 000
Net Worth £345, 407, 000 £321, 635, 000 £316, 911, 000
Founded in 1964, Superdrug is the second largest beauty and health retailer in
the UK, with over 795 stores across the UK and Republic of Ireland – including
200 in - store pharmacies.
The company’s online channel saw significant growth over the last year with a
48. 5% increase. Superdrug utilise their stores as centralised distribution
centres for online business as well as retail shops. The company have also
incorporated a ‘store to door’ delivery service providing customers with local
deliveries within 2 hours. The Company’s pharmacy is also an important part of
the customer offering with 198 nhs pharmacies across the UK.
For further information see .
Superdrug is part of the A. S. Watson Group, the world’s largest international
health and beauty retailer with over 16, 000 stores in 28 markets.
**VAT**
The property has been registered for VAT and it is anticipated that the sale
will be treated as a Transfer of a Going Concern (togc) so that VAT will not
be payable on the purchase price.
Proposal
We are instructed to seek offers of £1, 480, 000 (One Four Hundred and Eighty
Thousand Pounds), subject to contract, reflecting a net initial yield of 7%,
assuming standard purchaser’s costs of 6. 09%.
Please note that a purchaser will be re - charged the costs of the measured
survey (£590 + VAT), the searches (£1, 985) which are provided in the data room
and a Transaction Fee of £5, 000 plus VAT.
Investment Considerations
An opportunity to acquire a property in the heart of one of London’s biggest
regeneration schemes;
Well located property just 150 metres from Canning Town Station;
Next door to a Morrisons Superstore;
Superdrug Stores Plc reported – Revenue of £1. 16 billion, Pre - Tax Profit of
£45 million and a Net Worth of £345 million;
Over 5 years unexpired with no beaks remaining;
Superdrug did not exercise the October 2023 break option;
There are 3 more phases planned for Hallsville Quarter set to further improve
Canning Town, the immediate vicinity and property;
The property was developed in 2018;
For full details please visit our website or view PDF brochure below
* Sizes listed are approximations. Please contact the agent to verify actual sizes.

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