An extremely rare opportunity to purchase an income-producing commercial freehold, with potential to add considerable value (stpp), located in the sought after area of Rye Lane, Peckham SE15.
Existing Building
The existing building comprises a single storey lock up shop with rear yard. The building itself measures circa 1,350 sqft GIA, whilst the yard to the rear measures a further circa 1,800 sqft. The property is currently let to a high street casino business (albeit they are not trading from the premises), and was previously occupied by Coral Bookmakers LTD. The use class is therefore Sui Generis.
Existing Lease
The existing commercial lease commenced on 20th August 2021 for a 10 year term, and therefore has approximately 8 years unexpired. The passing rent is £41,250 per annum, and there is an open market upward only rent review on the fifth anniversary (in August 2026). There are no break options, albeit the tenant is not trading from the premises, and as such wishes to terminate the lease. The lease is Fully Repairing & Insuring (FRI).
Please note the market rental value of the unit is in the region of £45,000 per annum. This is how much most of the surrounding commercial units are achieving.
Potential
The property fronts Rye Lane which is the main road running through Peckham. Most properties on Rye Lane comprise commercial premises over ground floor, and 3 storeys of self-contained residential apartments above (first - third floors).
Both neighbouring properties are similarly arranged, with 180 Rye Lane comprising a commercial unit over ground floor and 4 self-contained flats directly above (first & second floors only).
The other neighbouring property (184 Rye Lane) was granted planning in February 2019 for the "demolition of existing building and erection of a new four storey building to provide a commercial unit on the ground floor and 5 self-contained flats above (first - third floors)". The site is currently under construction. Please click here to view details of the consent.
To the rear of each neighbouring property (180 & 184 Rye Lane) sit a block of 4 self-contained flats, however the rear boundary of this property (182 Rye Lane) is in-line with the front build-line of these rear blocks. Please see image to the left.
The subject property has no relevant planning history, is not listed, and sits within the 'Rye Lane Peckham' conservation area.
