Wimbledon retail park handed £34m price tag

2nd May 2024 | Jack Oliver

Plough Lane Retail Park in Wimbledon has been placed on the market, with Morgan Williams instructed to seek offers in the region of £34,150,000.

The freehold asset comprises six units across three buildings totalling 82,589 sq ft on a site extending to approximately 5.5 acres.

The scheme’s long-term income is secured to anchor retailers including Lidl, Wickes, Pets at Home, and Hobbycraft, with a weighted average unexpired lease term of 10.5 years. The current contracted rent is £2,013,881 per annum, equating to £24.38 per sq ft, and offers guaranteed uplifts and medium-term reversions.

The retail park, located six miles south west of Central London, is prominently situated fronting Plough Lane, which connects the A217 and A218. It is surrounded by residential and other commercial uses with an affluent catchment population.

Morgan Williams said that almost all of the surrounding retail warehouse supply has been redeveloped over the last five years for residential purposes, leaving little local competition.

The asset effectively has a Class E Food and Non-Food consent, however its freehold status means there is scope for residential development.

Morgan Williams said the asking price of £34,150,000 reflects a net initial yield of 5.5%, rising to an estimated minimum of 5.72% in April 2026 due to an uplift in Lidl’s rent, assuming purchaser’s costs of 6.78%.

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