Retail for sale - Tesco, 206 Regents Park Road, London, N3 3HP

<strong>Description</strong><br>The property has been converted from an E-class unit to provide a convenience store at ground floor level, with ancillary space and two HMO flats with a total of 10 lettable rooms above. Planning consent for the conversion was granted by Barnet Council under reference 24/1644/FUL on 16 October 2024. The works have been completed and Tesco opened the store on 21st August 2025.<br /> <br /> Internally, the first floor provides ancillary space for the convenience store. In addition, there is residential accommodation comprising a four-bedroom HMO, each with ensuite facilities, and an open-plan kitchen and living room. Two terraces serve the flats at the rear of the property.<br /> <br /> The second floor contains a six-bedroom HMO, also with ensuite facilities and an open-plan kitchen and living room.<br><br><strong>Tenancy</strong><br>The ground floor and part first floor of the property is let to the Tesco Stores Limited for a term of 15 years (no breaks).<br /> <br /> The rent passing is £125,000 per annum exclusive. Rent is subjected to CPI linked upward only rent reviews at the fifth and tenth anniversaries of the lease with a collar and cap of 1-3% compounded annually.<br /> <br /> The HMO rooms are let on individual AST's and generate an average rent per calendar month of £1,325 per unit. Overall rent role for the HMO's is therefore in the order of £160,000 per annum (gross). Due to building efficiencies we envisage a net rent position of £150,000 per annum.<br><br><strong>Tenure</strong><br>Freehold (MX471426).<br /> <br /> The convenience store investment will be sold at a 999 year lease at a peppercorn rent.<br><br><strong>Covenant</strong><br>Tesco Stores limited has been given a ‘5A2’ D&B Rating and is owned by its parent company Tesco Plc and we summarise their performance for the year ending February 2025. The tenant can therefore be considered of a strong undoubted covenant strength.<br><br><strong>EPC</strong><br>Convenience Store rating – B27<br /> HMO (Flat 1) rating – A4<br /> HMO (Flat 2) rating – A2<br /> The EPC’s will be provided to interested parties upon request.<br><br><strong>Guide Price</strong><br>We are seeking offers in the order of £2,250,000 for the convenience store, which reflects a 5.22% NIY.<br /> <br /> Separately, we are seeking offers in the order of £2,100,000 for the HMO, which is currently under offer.<br><br><strong>VAT</strong><br>The investment will be sold as a TOGC and will therefore be exempt from paying VAT.<br><br><strong>Anti-Money Laundering Regulations</strong><br>In accordance with Anti-Money Laundering Regulations, the preferred purchaser will be required to provide identification and proof of address, prior to exchange.<br><br><strong>Viewing</strong><br>Viewing strictly via appointment with the following:<br><br>