38-42 South End comprises 3 ground floor commercial units together with an upper part comprising 4 self-contained flats, one of which is sold under a long lease. All flats are large and capable of potential sub-division subject to any necessary consents. There is a lapsed planning consent for a further floor of residential which offers development potential.
Location
The property is situated fronting South End within the “restaurant quarter” of South Croydon and just to the south of Croydon town centre. Croydon is a popular commercial environment which is undergoing significant levels of inward investment and set to become a major commercial centre. Transport facilities in Croydon are extensive including East and West Croydon mainline stations, a tram link service linking to Wimbledon and the Tube network and innumerable bus routes. South End is an exceptionally busy thoroughfare linking Croydon town centre with Purley and the block benefits from a good deal of passing vehicular traffic at most times of day, but particularly heavy during rush hour traffic. There are short-term pay and display car parking spaces in the vicinity together with a longer-term pay and display car park nearby.
Accommodation
Ground Floor
No.38 - 505 sq ft approx
No.38A - 700 sq ft approx
Nos. 40/42 - 3,550 sq ft approx
Externally - Good sized Rear Yard servicing 38A and 40-42
Upper Parts
Flat A - sold off on a long lease
Flat B - 3 bedroom flat totalling approximately 75.89m² (815ft²) approx.
Flat C - 3 bedroom flat totalling 75.89m² (815ft²) approx.
Terms
Tenure - The property is to be offered freehold subject to a long leasehold interest in respect of Flat A and subject to the following commercial tenancies:
38A – Jade Car Ltd T/A Havana, a 15 year lease from 24/12/2015 subject to 5 yearly upward only rent reviews and at a passing rent of £19,000 pa exclusive.
38 – William Hill Bookmakers, 20 year lease from 26/12/2012 subject to 5 yearly upward only rent reviews at a passing rent of £19,500 pa exclusive.
40/42 – Currently vacant but in advanced negotiations with Co-op Food Stores to take a 15 year lease subject to a tenant’s option to determine the lease at the end of the 10th year and subject to 5 yearly upward only rent reviews in accordance with the annual CPI (Consumer Price Index) compounded over each tranche and subject to a cap of 3% pa and a collar of 1% pa. This lease is to be subject to a 6 months’ rent free period in lieu of tenant’s works of fit-out and establishment. An initial rent of £60,000 pa exclusive.
Flat B – let on an assured shorthold tenancy which expired on 19/10/2017 and, therefore, holding over at a current passing rent of £15,600 pa exclusive.
Flat C – subject to an assured shorthold tenancy expiring 31/01/19 at a passing rent of £14,100.
Flat D – an assured shorthold tenancy for a term of 3 years from 25/05/2017 expiring on 25/04/2020 at a passing rent of £16,200 pa exclusive.
Total estimated rental value £144,400 p.a.x.
Price - £2,950,000 (Two million nine hundred and fifty thousand pounds) Freehold Interest subject to the various tenancies highlighted.
Use/Planning - We understand the property falls within Class A3/A5 (catering) in respect of no. 38, A2 (retail/office) in respect of 38A and currently A3 (restaurant) in respect of 40-42. The intended occupier of 40-42 will be an A1 retailer (Co-op Food Store) and will revert to A1 use under Permitted Development. We understand the upper floors have use as currently arranged, which is as residential flats.
The property was granted consent on 20/04/2009 for the erection of an additional mansard floor to provide 3 additional flats comprising 2 no. 1 bedroom flats and 1 no. 2 bedroom flat. This planning was not implemented and has now lapsed but provides further potential for a purchaser.
EPC Rating - The following EPC Ratings are registered: Flat A, 65 within Band D; Flat B, 69 within Band C; Flat C, 60 within Band D; Flat D, 58 within Band D. Commercial: 38, 71 within Band C; 38A, 58 within Band C; 40-42, 93 within Band D.
Legal Costs - party is to bear its own legal costs.
VAT - All rental and capital figures quoted within these details are exclusive of V.A.T. unless otherwise stated.