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10% London Multi-Let Retail Parade Investment
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exchanged
Private Treaty
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£
390,000
Subject to contract
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Location
Morden is located within the London Borough of Merton in Southwest London, approximately 15 km (9 miles) south-west of Central London, 3.2 km (2 miles) south of Wimbledon and 9.6 km (6 miles) east of Kingston Upon Thames. The area forms part of the Southwest London commuter belt.
The area benefits from strong transport connectivity with Morden Underground Station (Northern Line) providing direct services to London Bridge (approximate 25 minute journey time), Bank, Moorgate and The West End.
South Merton Railway Station (Thameslink) provides services north to London Blackfriars and St Pancras International and south towards Sutton and Wimbledon.
Morden benefits form excellent road communications, being served by the A24 (London Road), which runs through Morden and connects with Central London to the north and Epsom and Dorking to the south. The A3 trunk road is approximately 3 miles to the west, providing direct access to Central London and Junction 10 of the M25 motorway approximately 14.5 km (9 miles) to the south-west.
Heathrow Airport is approximately 42 km (26 miles) to the north-west and Gatwick Airport approximately 37 km (23 miles) to the south.
Summary
- Multi-let retail investment
- Located within the London Borough of Merton
- Prominent retailing pitch
- Fully let, producing a total income of £40,500 per annum
- £390,000, subject to contract
- 10% Net Initial Yield
Situation
The property occupies a prominent position on Martin Way, a mere 300 metres from South Merton Train Station and 1.1km (0.7 miles) from Morden Underground Station.
An established local retail parade, the property benefits from being in a densely populated residential area and serves the surrounding neighbourhood.
Martin Way connects directly with the A24 (London Road) approximately 0.8 km (0.5 miles) to the east. There are also numerous bus routes operating along Martin Way.
Description
192-196 Martin Way comprises a terrace of three ground floor retail units. In addition, there is an advertising unit at the front of the property.
198–202 Martin Way (t/a Sainsburys) and the entire 1st floor 192-202 Martin Way (residential) have been sold off on long leases.
Accommodation
The property provides the following accommodation:
| Address | Sq M | Sq Ft |
| 192 Martin Way | 45.99 | 495 |
| 194 Martin Way | 48.59 | 523 |
| 196 Martin Way | 52.49 | 565 |
| 198-202 Martin Way (“sold off”) | 328.51 | 3,536 |
Ratable Value
According to the Valuation Office website the rateable value for the property is as follows:
| Address | Description | Rateable Value |
| 192 Martin Way | Cafe & Premises | £8,300 |
| 194 Martin Way | Shop & Premises | £6,600 |
| 196 Martin Way | Shop & Premises | £7,000 |
The business rates multiplier is 49.9 pence.
Tenure
Virtual Freehold (999 year lease from 26th May 2016 at a peppercorn rent).
198–202 Martin Way (t/a Sainsburys) and the residential upper parts have been “sold off” on long leases expiring in May 3015 (989 years unexpired).
Tenancy
The property is multi-let, producing a total passing rent of £40,500 per annum.
192 Martin Way
Let to Kugan Vageesan (t/a New Favriite Chicken) for a term of 15 years from 25th June 2018, expiring on 24th June 2033. The current passing rent is £11,000 per annum. A rent deposit of £6,600 is held by the Landlord.
194 Martin Way
Let to Erhan Karapinar (t/a Ero’s Barbers) for a term of 10 years from 20th January 2025, expiring on 19th January 2035. The current passing rent is £14,500 per annum. The lease includes a break option and rent review on 20th January 2030. A rent deposit of £3,975 is held by the Landlord.
The tenant has been in occupation since 2016 and signed a new lease in January 2025, demonstrating their commitment to this location.
196 Martin Way
Let to Sophia Soltani, guaranteed by Sarhad Soltani (t/a Brown’s Glass & Glazing), for a term of 15 years from 16th June 2017, expiring on 15th June 2032. The current passing rent is £14,000 per annum and the lease benefits from five yearly RPI-linked rent reviews, the next being on 16th June 2027. A rent deposit of £4,200 is held by the Landlord.
The tenant has a right to use one car parking space at the rear of the property.
Advertising Unit
Let to Primesight Ltd for a term of 2 years from 8th March 2016, and thereafter from year to year until either party gives the other six months written notice to determine the Agreement. The passing rent is £1,000 per annum.
198–202 Martin Way
Sold off on a long lease to K Z Holdings Ltd (t/a Sainsburys) for a term of 999 years from 2nd April 2020, expiring on 16th May 3015 at a peppercorn rent.
1st Floor, 192-202 Martin Way
Sold off on a long lease to Roseshire Properties Limited for a term of 999 years from 26th May 2016, expiring on 25th May 3015 at a peppercorn rent.
All rental payments are up to date with no arrears. A payment history is provided in the data room.
EPC Ratings
| 192 Martin Way | D | Valid until October 2031 |
| 194 Martin Way | C | Valid until April 2033 |
| 196 Martin Way | B | Valid until April 2033 |
| 198–202 Martin Way | B | Valid until May 2033 |
VAT
The property is VAT elected. It is anticipated (subject to the purchaser’s VAT status) that the sale will be treated as a Transfer of a Going Concern (TOGC).
Proposal
We are instructed to seek a figure of £390,000 (Three Hundred and Ninety Thousand Pounds), subject to contract, reflecting a Net Initial Yield of 10%.
Please note that a purchaser will be re-charged the costs of the searches (£1,585.84 incl. VAT) which are provided in the data room.
Please note that a purchaser will be charged a Transaction Fee of 1.0% of the Purchase Price plus VAT.
Investment Considerations
An opportunity to purchase a multi-let retail investment;
The property is located within a London borough;
Prominently located within a densely populated residential area;
Fully let and income producing;
Attractive net initial yield;
Attractive lot size for an investor.
Contacts
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Singer Vielle
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Vendor's Solicitor Firm
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All Properties are listed subject to contract and the prices shown are exclusive of VAT if applicable.
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