Cheam Road - Cheam Road Development, Ewell, SRY

The property comprises a three storey detached building of timber frame and brick construction. The building is currently under construction, with fit out of the ground floor retail unit due in Quarter 4 2011 and the completion of the 28 upper residential dwellings due for Quarter 1 2012. The total GIA of the retail space is 5,715 sq ft, giving an NIA of around 5144 sq ft.
The property is located fronting Cheam Road, at the junction with High Street (A232). The Ewell bypass (A240) is close by, providing links to Epsom town centre to the south and the A3 to the north.

Sale Notes:
The investment opportunity comprises a new development, due for completion in two stages between October 2011 and March 2012. The development is located in a central position in Ewell, close to Epsom town centre, and is pre-let to the excellent covenant of Sainsburys Supermarkets Ltd on a 15 year lease at £65,000 per annum. There are 28 residential dwellings which have been sold off on 999 year long leaseholds at a ground rent of £6,800 per annum.
Offers for the freehold interest are sought in excess of £1,200,000, which would give a net initial yield of 5.65% after acquisition costs of 5.8%. The ground floor retail unit is let on a new 15 year lease to Sainsburys Supermarkets Ltd, with a tenant only break option at the tenth year and five yearly compounded RPI linked rent reviews, capped at 3.5%. The residential units have been sold off on 999 year long leaseholds and are subject to an initial ground rents of £6,800 per annum, with reviews at each subsequent 33 years with provision to double the rent at each review.