137 Lewisham High Street, Lewisham, London Borough of Lewisham – Betting Office Investment

Description
The property comprises a three storey building of brick construction with flat roof coverings. The building was constructed in the early 20th century. The accommodation is arranged at ground floor, first floor and second floor level. Internally the property is currently fitted our as a bookmakers with a sales area at ground floor with office and staff room at first floor; the second floor accommodation is used for storage.

There is a concrete yard area to the rear / car parking use (1 or 2 cars).

Location
The property is located on Lewisham High Street in Lewisham. Lewisham is a popular commercial centre in South East London within the London Borough of Lewisham, 5.9 miles south-east of Central London, 1.5 miles south of Grennwich and 1.1 miles west of Blackheath.

The property is located in a prime high footfall retail location on the northern side of Lewisham High Street, less than half a mile from Lewisham National Rail and DLR Station. There are several bus stops within a short proximity of the property, with bus routes across Greater London.

Lewisham is undergoing significant private and public sector investment. The first phase of the Lewisham Gateway has now been completed. This phase involved redevelopment of land close to the stations with major infrastructure improvements to the roads. On site construction has now begun for the second phase of Lewisham Gateway, which will include the construction of 649 homes for rent, office and working spaces, and leisure facilities including a gym and multiplex cinema. You can find out more about the Lewisham Gateway development here: https://www.lewishamgateway.co.uk/

Nearby occupiers include Marks & Spencer, H&M, Iceland, McDonald's, Superdrug, Three, Regus, Timpsons and many more. Lewisham Shopping Centre is located directly opposite.

Tenure
The property is offered for sale on a Freehold basis.

Freehold - Title Number 413781

Tenancy Details
The whole property at 137 Lewisham High Street is let on the following basis:

Lease Dated: 24th April 2020
Tenant: Joe Jennings Bookmakers Ltd
Term: 6 year lease from 24th April 2020
Rent: £42,000 pa (until end of the lease)
Tenant Repair Covenant: FRI
Tenant Break: Tenant break option at the end of 3rd year with 4 months written notice

Joe Jennings Bookmakers operates from 15 stores in the South of England, Jersey and the Isle of Man. (https://joejennings.co.uk/find-us-stores/).

Further details are available by request.

Asset Management Potential
The current lease was agreed during the initial onset of the March 2020 covid lockdown and therefore we are of the view that there should be some margin for an uplift in the rental level at the next lease event.

We are of the opinion, should the tenant use the break option or vacate at the end of the lease, there is likely to be an opportunity to convert the upper floors to residential use whilst retaining the ground floor for commercial / retail use.

There also may be scope for an additional floor or extension at 1st and/or second floor levels for residential use. We would advise interested parties to make their own enquiries with their professional advisers on this matter.

Price
£750,000, reflecting a net initial yield of 5.33%, assuming standard purchaser’s costs. We understand VAT is not payable on the purchase price.