Location

Catford is a well populated south east London district and the administrative centre of the London Borough of Lewisham. The area is identified in the London Plan as one of the 35 major centres in Greater London.

Catford is conveniently located along the A205 (South Circular Road) providing easy access to other parts of London and the motorway network. The area is located approximately 7 miles (11 km) from the West End of London and London City Airport. Heathrow Airport is located approximately 20 miles (32 km) to the west.

The area is well served by Catford Railway Station and Catford Bridge Railway Station.

Whilst Catford is a busy commercial location, the area is popular amongst families, professionals and students.

Nearby attractions include Mountsfield Park, Waterlink Way, Catford Mews, Broadway Theatre, Catford Food Market and Catford Broadway Market Stalls.

Summary

Located within a densely populated area of London
Extensively refurbished in 2018
Let to Dynasty Investments Ltd t/a German Doner Kebab
Parent company – Hero Brands Ltd (Turnover £34.8m, Balance Sheet £4.48m)
Over 10 years unexpired with no breaks
Fully repairing and insuring lease
£10,000 rent deposit held and to be passed on to the purchaser
4 yearly upwards only rent reviews
£615,000, subject to contract
Net Initial Yield of 7%

Situation

The property is situated on the East Side of Rushey Green, set back from the road and to the south of its junction with Ringstead Road.

An eclectic mix of national and local operators are situated on Rushey Green, including KFC, Subway, Greggs, Nando’s, Costa Coffee, Superdrug, Specsavers, Aldi, Halfords, Poundland, Pure Gym, High Street Banks and Estate Agencies.

The immediate vicinity benefits from a highly dense residential and commercial population making it an ideal site for a German Doner Kebab. The vicinity is also a sought-after place to live and benefits from an exceptionally strong residential rental market. There are ample bus routes which pass through Rushey Green.

Description

The property comprises a ground floor and basement commercial premises benefiting from front and rear access.

The property has been fitted out by the tenant to their usual corporate style as a fully functioning dine in, takeaway and delivery premises. The property benefits from outdoor seating, customer seating to the front, an open kitchen in the middle and prep / storage towards the rear and in the basement.

The extraction flue runs through the commercial and residential parts of the building.

The property was extensively refurbished in 2018.

Asset Management

The next upwards only rent review on the commercial element is effective in October 2026 and offers an opportunity for a purchaser to achieve a rental uplift at the rent review.

Accommodation

The property has been measured by BKR Floor Plans and provides the following net initial floor areas:

Net Frontage	15’6”	4.72m
Gross Frontage	18’	5.47m

Ground Floor	818 sq ft	75.99 sq m
Basement	456 sq ft	42.36 sq m
Total Commercial	1,274 sq ft	118.35 sq m

Total GIA	1,752 sq ft	162.76 sq m

A set of floor plans is available to download and the measured survey report will be re-addressed to a purchaser at a cost of £540 + VAT.

Tenure

999-year long leasehold, from 25th October 2019, at a peppercorn rent.

Tenancy

The property is let to Dynasty Investments Limited (t/a German Doner Kebab) on a full repairing and insuring lease for a term of 15 years from 12th July 2018, expiring 11th July 2033. The passing rent is £45,000 per annum. The lease benefits from 4 yearly upwards only rent reviews to open market value.

Therefore, there are in excess of 10 years unexpired with no break clauses.

The lease originally provided the tenant with a right to break the lease on July 2022 and July 2026, however, following successful trading, the tenant agreed to remove the break clauses in exchange for 3.5 months’ rent free, demonstrating their commitment to this location.

The next upwards only rent review is effective 12th July 2026 and offers the purchaser an opportunity to increase the rent.

A rent deposit of £10,000 is held by the vendor and will be passed on to the purchaser.

Covenant

German Doner Kebab is a gourmet kebab business operating from restaurants across the UK, USA, UAE, Sweden, Canada, Ireland and Saudi Arabia.

There are over 130 restaurants in England with over 35 being in London.

The company has spent the last 30 years refining its recipes and processes and is now a well-known brand around the world. This gourmet kebab concept offers a unique experience with the best ingredients and appeals to a broad market of consumers.

German Doner Kebab sell a wide range of gourmet kebabs, sandwiches, salads and meal boxes. They also sell a range of sides, drinks and desserts.

Sales are channelled mainly through in store dining, in store takeaway, click and collect, Uber Eats, Deliveroo and Just Eat.

According to TripAdvisor, German Doner Kebab was crowned as the number one place to eat in London, 2019.

Dynasty Investments Limited are a franchisee and reported Fixed Assets of £526,672 and Net Assets of £290,3000 in their April 2022 accounts. The tenant has been successfully trading from this location since 2018, so much so that they agreed to remove the 2022 and 2026 break clauses in exchange for 3.5 months’ rent free.

A rent deposit of £10,000 is held by the vendor and will be passed on to the purchaser.

Hero Brands Ltd are the parent company and have reported the following figures:

	31st December 2021	31st December 2020
Revenue	£34,831,966	£20,068,679
Pre-Tax Profits	£2,526,334	£1,660,216
Balance Sheet	£4,482,368	£2,769,976

For further information visit www.germandonerkebab.com.

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).

Proposal

We are instructed to seek offers in excess of £615,000 (Six Hundred and Fifteen Thousand Pounds), subject to contract, reflecting a net initial yield of 7%, assuming standard purchasers’ costs of 5.09%.

The purchase price reflects just £371 per sq ft / £3,993 per sq m overall.

Please note that a purchaser will be re-charged the costs of the measured survey (£590 + VAT) and searches (£900), which are provided in the data room.

Please note that a purchaser will be charged a Transaction Fee of 0.5% of the Purchase Price plus VAT.

Investment Considerations

An opportunity to acquire a property in an affluent London borough;
Highly prominent property, set back from the main road;
Revenue of tenant’s parent company in excess of £34m;
Over 10 years unexpired lease term with no breaks;
Break clauses removed, demonstrating the tenant’s commitment to the property;
Upwards only rent reviews every 4 years on the commercial element;
£10,000 rent deposit to be passed on to a purchaser;
Opportunity to increase the rent at the next rent review in July 2026;
Opportunity to acquire a property let to an established and growing brand;
Attractive lot size to an investor;
Attractive yield for a London asset.

Contacts

Singer Vielle
Singer Vielle	+44 (0) 207 935 7200
Dale Henry	+44 (0) 203 701 1356 dale@singervielle.co.uk
Neil Singer	+44 (0) 207 935 7200 neil@singervielle.co.uk
Vendor's Solicitor Firm
Joelson LLP	+44 (0) 207 580 5721
Andrew Clissold	+44 (0) 207 438 0988 andrew.c@joelsonlaw.com

See website for full details : https://singervielle.com

Disclaimer

This disclaimer applies to www.singervielle.com (the “Site”) which is owned by Singer Vielle Limited (“Singer Vielle”) and operated under licence by Singer Vielle 2 LLP.

All Properties are listed subject to contract and the prices shown are exclusive of VAT if applicable.

London – Long Let Investment