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High Road, Loughton, IG10

£1,300,000

Property Description

Key features

  • INVESTMENT PROPERTY
  • RESTAURANT
  • LOUGHTON HIGH STREET
  • 16 MILES FROM CENTRAL LONDON
  • CLOSE TO LOUGHTON CENTRAL LINE STATION
  • EXPERIAN CREDIT CONFIDENCE RATING OF: VERY LOW RISK
  • NET INITIAL YIELD OF 6.17%

Full description

Tenure: Freehold

INVESTMENT SUMMARY

 Freehold restaurant and residential property occupying a prominent High Street
location in the affluent Home Counties town of Loughton.

 Well let to the secure covenant of Loch Fyne Restaurants Limited (a wholly
owned subsidiary of Greene King plc) until January 2026 (14 years unexpired).

 Providing a well configured ground floor unit of circa 3,400 sqft (316.15 sqm).

 Current rental income of £84,800 per annum, equating to £24.83 psf (£267 psm)
overall for the restaurant.

 Offers are sought in the region of £1,300,000 (One Million, Three Hundred
Thousand Pounds), which reflects a net initial yield of 6.17% assuming usual
purchaser’s costs of 5.8%.


LOCATION

Located in the County of Essex, 16 miles (26 km) north east of Central London, 11
miles (18 km) south of Harlow and 22 miles (35 km) west of Chelmsford, Loughton is
an affluent Home Counties town that benefits from excellent road and rail
communications to Greater London and the South East.

Both the M11 (Junction 5) and M25 motorways (Junctions 26 and 27) are easily
accessible, as is the A406 (North Circular Road), some 5 miles (8 km) to the south
west.

The City (Liverpool Street) is directly accessed in 27 minutes via the London
Underground (Central Line) as is Westfield’s Stratford City Shopping Centre (17
minutes).

London City airport is 15 miles (24 km) to the south with London Stansted airport 26
miles to the north (42 km).


DEMOGRAPHICS

Loughton is situated in the heart of Epping Forest which has a district population of
circa 120,000 people and a catchment population of circa 720,000 within 10 km
(2001 Census).

The area performs well in the CACI Lifestyle indexing with over 40% of the
population falling into the categories of ‘Wealthy Executive and Flourishing/Secure
Families’. Over 50% of the workforce is employed in higher and intermediate
managerial and professional roles and circa 75% of the population of Loughton are
owner occupiers.

Loughton itself has a resident population of circa 30,000 people and an affluent and
cosmopolitan feel that has attracted many City workers and their families to live in
the area.


SITUATION

The property is situated towards the northern end of Loughton High Road, just south
of King’s Green and opposite Loughton Cricket Club, in a small parade of retail and
restaurant units. Other nearby restaurant occupiers includes Zizzi (situated just
north of King’s Green) with Cafe Spice (Indian), Wo-Fat (Chinese), the Olive Tree
(Mediterranean), Pizza Express (Italian) and Brasserie Gerrard (French) all situated
to the south of the subject property.

Loughton High Road is an established shopping area and the busiest retail centre in
the Epping Forest district, with a number of National retailers being represented
including Marks & Spencer, Morrisons, WH Smith, New Look and Boots.
The position of the subject property is shown shaded red on the attached Goad plan,
with other nearby restaurants shaded blue.


TENURE

The property is held freehold.


TENANCY

The ground floor retail unit is let to Loch Fyne Restaurants Ltd (with a guarantee
from Loch Fyne Restaurants plc) on a 25 year effective full repairing and insuring
lease from 30 January 2001, expiring 29 January 2026.

The lease provides for five yearly upward only rent reviews, with the next review due
on 30 January 2016.

The annual passing rent (which was set on review in 2006) is £84,500 per annum
equating to £24.83 psf (£267 psm) overall.

The two flats are each sold off on 125 year leases from 1 February 2001 at a fixed
ground rent of £150 per annum.

The total annual rent receivable from the property is therefore, £84,800 per annum.


COVENANT

Loch Fyne Restaurants Limited is a wholly owned subsidiary of Green King plc and
operates 42 restaurants throughout the UK.


GREENE KING

The Loch Fyne restaurant business was acquired in 2007 by the Suffolk based pub,
restaurant and hotel company, Greene King plc for a sum of £64.2 million. Greene
King is the country’s leading pub retailer and brewer, owning or operating circa 2,500
pubs, restaurants and hotels in the UK and employing circa 20,000 people.

During 2011 Greene King plc delivered a 4.9% increase in like for like sales, with an
8.1% increase in food retail sales across the Group.


VAT

The property has been elected for VAT, therefore allowing the property to be sold by
way of a TOGC.


PRICE

Offers are sought in the region of £1,300,000 (One Million, Three Hundred
Thousand Pounds), which reflects a net initial yield of 6.17% assuming usual
purchaser’s costs of 5.8%.


"GOAD PLAN PICTURE"
(The property comprises a large, well configured, rectangular, double fronted ground
floor restaurant unit with two floors of residential accommodation above.
The residential element is accessed via the rear of the building and has been sold off
on 125 year leases from February 2001.)

To view this property or request more details, contact:

Bell & Co Estate Agents Ltd, Harlow

5A Westgate House West Gate, Harlow, CM20 1JN

01279 425999 Local call rate

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Disclaimer

Property reference 00000000002130. The information displayed about this property comprises a property advertisement. Rightmove.co.uk makes no warranty as to the accuracy or completeness of the advertisement or any linked or associated information, and Rightmove has no control over the content. This property advertisement does not constitute property particulars. The information is provided and maintained by Bell & Co Estate Agents Ltd, Harlow. Please contact the selling agent or developer directly to obtain any information which may be available under the terms of The Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007 or the Home Report if in relation to a residential property in Scotland.