Description
Property
Comprising a full terrace of Grade II Listed town houses converted in the 1990’s to provide a medical centre. The property extends onto 5 floors with lift access to all principal floors. The premises benefit from rear car parking accessed off Steels Lane.
EPC
C62
LOCATION
Located in the ever-improving Whitechapel/Shadwell district of East London fronting the A13, a short distance from the City of London.
The property sits adjacent to a major Comprehensive School and Sixth Form College and is a short distance from the Royal London Hospital and surrounding regeneration projects, including The Silk District.
The surgery benefits from being just a few metres from bus stops on Commercial Road, a 5 minute walk from Shadwell DLR station and a 15 minute walk to Whitechapel Station – Elizabeth, Hammersmith & City and District Lines, and overground.
The Borough of Tower Hamlets has a growing population of 310,300, an increase from 254,100 in 2011 – source ONS 2021 Census.
Services
We understand that mains water, electricity and drainage supplies are available and connected to the property. These have not been tested and interested parties are advised to make their own investigations to the relevant utility service providers.
Town & country planning
We understand that the property has consent for uses falling within Class E (Commercial, Business & Services Use) of the Town and Country Planning (Use Classes) Order 1987 (as amended).
Class E now encompasses a number of uses formerly known as A1 (Shops), A2 (Professional & Financial Services), A3 (Restaurant & Cafés), B1 (Business) and D1 (Clinics, Health Centre, Crèche & Day Nurseries).
Interested parties are advised to make their own investigations with the Local Planning Authority.
Tenure
The Freehold interest is For Sale. Please refer to Title documentation within the Property Information Pack, available on request.
Practice Profile
With a current list size of 14,500, Jubilee Medical Centre is rated “Outstanding” by the CQC. The surgery moved into the premises in 1998. Since that time, the team at Jubilee Medical Centre has gained an Award winning reputation for a forward thinking approach to the delivery of Primary Care in the Tower Hamlets area.
Please refer to: https://jubileestreetpractice.nhs.uk/
Tenancy
The property is let in its entirety to Jubilee Street Practice Ltd following an assignment dated 12th July 2023 for a term of 15 years from 6th July 2023 at a rent of £264,200 per annum, with 5 yearly rent reviews and incorporating a tenant only option to determine upon the 10th anniversary of the term.
The lease is drafted on an enhanced Tenant Internal Repairing basis – the Landlord is responsible for the building insurance, the structure and external parts of the property, excluding decoration which is a tenant responsibility.
A copy of the lease is available for inspection within the Property Information Pack.
Covenant
The Jubilee Street Practice Ltd (TJSP) (Company No. 14539276), a company set up by the GPs practising from the surgery- TJSP have a contract with the Integrated Care Board to deliver Primary Care (General Medical Services) from the premises- the contract provides for the NHS to reimburse the rent (and other costs) to the tenant in line with the General Medical Services Costs Directions 2013.
The lease is therefore effectively “guaranteed” by the NHS. The NHS have an undeniable covenant.
Proposal
We are seeking offers in excess of £5,000,000 (Five Million Pounds) for our client’s Freehold interest in the property. A purchase at this level shows an initial yield of 4.96% after deducting costs of 6.59% and a low capital value of £433 per sq ft.
VAT
The property is registered for VAT. It is intended to treat the sale as a TOGC
Further Information
A property information pack is available by contacting Christine Downes at Eddisons- christine.downes@bankslong.com
For all other enquiries, please contact Tim Bradford on 07788 587 939 or tim.bradford@bankslong.com.