INVESTMENT SUMMARY

• The unit forms part of Phase 1 of the East Wick and Sweetwater scheme, at the western side of the 560-acre Queen Elizabeth Olympic Park, and just to the east of the River Lee Navigation canal near Hackney Wick.
• Phase 1 includes 302 new homes. Upon completion of the final phase around 1,800 new homes will have been built.
• Hackney Wick Overground station is approximately 250m to the south west of the property.
• Phase 2 is currently under construction and will comprise 210 homes. 165 units will be for open market sale, with a further 45 affordable homes to rent. Two public gardens will also be delivered.
• Here East, a 1.2m sq. ft. business and educational campus is located approximately 100m to the north. The new V&A Storehouse Museum is also scheduled to open at Here East in 2025.
• The property is held on a long leasehold interest of 250 years from 1st December 2017 at a peppercorn ground rent.
• The property was originally let to the Co-operative Group Food Limited on a 15-year lease commencing 10th January 2023 without breaks. The lease has since been assigned to Tesco Stores Limited, completing in October 2023.
• The rent is to be reviewed at the fifth and tenth anniversaries, index linked to RPI, annually compounding, with a cap of 4% and collar of 1%.
• Passing rent of £89,880 per annum exclusive, equating to approximately £23.96 per sq. ft. based on the GIA.
• The lease provides for two rental uplifts that are triggered in line with the following:
• First Rent uplift to £94,860.85 per annum, payable upon the first anniversary date of the Term Commencement Date, and practical completion of Phase 1 and Phase 2. Phase 2 is currently under construction with an estimated practical completion date of 2025.
• The second rent uplift to £99,879.15 per annum, payable upon the second anniversary of the Term Commencement Date, and practical completion of Phase 3. The vendor currently estimates Phase 3 will practically complete in 2028. However, construction is yet to commence.

• We are instructed to seek offers in the region of £1,750,000 subject to contract and exclusive of VAT which reflects a net initial yield of 4.85%, rising to 5.12% when the rent increases to £94,860.85 per annum in 2025 upon practical completion of Phase 2, assuming purchaser’s costs of 5.90%.