A property sell-off by Sainsbury’s could lead to a major new flat development in central Eltham.
The shopping arcade, St Mary’s, running between its store and the High Street, is being marketed for £2m.
Purchasers are being asked to consider the possibility of adding extra floors, possibly levelling up to the height of the adjacent cinema.
The sale of the nine retail units and the historic community centre fronting the High Street, is part of a nationwide rationalisation of Sainsbury’s estate to pay off debts.
The future of the struggling Moss Bros, one of the tenants, will be raised although the store itself, refurbished last year, seems safe at the moment, despite losing ground to the discounter stores Aldi and Lidl locally.
The advert for the site reads:
St Mary’s Place, Eltham, London SE9 – High Yielding Greater London Retail Investment
Please find details attached on the above high yielding, Greater London retail investment that we are instructed to sell. The salient points are as follows:
- Eltham is a busy London suburb within the Royal Borough of Greenwich.
- A retail and leisure scheme in the heart of the town centre adjacent to the town’s new leisure complex and Sainsbury’s.
- Nine units providing 14,193 sq ft on around half an acre
- Let to a diverse range of retail and leisure occupiers.
- Rents are set at affordable levels with a total current rent receivable of £194,064 pa.
- Reversionary to £232,500pa
- Offers invited in the region £2,000,000 (Two Million Pounds). Assuming standard purchasers’ costs of 6.28%, a purchase at this level would reflect and attractive Net Initial Yield of 9.13%