Property overview

SGN Portfolio, Stamford Hill and Plumstead, London

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Feb 2021

LondonMetric, represented by Atlas Real Estate, has recently completed the off-market acquisition of two prime modern petrol filling station and convenience stores in London.

The properties are located in Stamford Hill and Plumstead and comprises modern petrol filling stations and convenience stores on sites of 0.3 acres.

The properties were sold by sales and leaseback to T.G Convenience Stores Ltd, guaranteed by SGN Ltd, for a term of 20 years from February 2021.  The leases are both held on full repairing and insuring terms subject to 5 yearly upward only rent reviews to CPIH, collared at 1% and capped at 3% per annum compounded.  The total income across both sites is £280,000 per annum.

The properties were acquired for £5,438,500 which reflects a net initial yield of 4.79%.  Barber Wadlow represented the vendor, SGN.

Ben Blackwall, Director at Atlas Real Estate comments ‘The two properties are excellently located in the affluent London towns of Stamford Hill and Plumstead.  Whilst let to the strong covenant of SGN for 20 years with index linked growth the added attraction was the alternative use underpin which underwrote the pricing by 84%.  The vacant possession values of the sites also underwrote the pricing by 91%.’