A Surrey retail parade owned by the grandchildren of the developer who built it in the 1930s will go under the hammer at the Barnett Ross sale next month.
The lot, made up of 14 shops with 13 flats above, makes up the majority of the Ace Parade in Chessington and is offered with a reserve below £3.75m.
The total income is £221,950 per annum, with two shops and two flats vacant.
“A new owner might break it up as individual units, perhaps selling to the tenants,” said auctioneer Steven Grossman.
“The vacant flats could be sold off on 125-year leases and the shops below let out, or the shops and uppers could be sold as a single freehold.”
The guide price reflects an average of £268,000 per shop and flat, which Grossman said he expects the lot to exceed.
Two of the units are let to an Indian restaurant, which has just signed a new 15-year lease at £35,000 per annum with five-yearly rent reviews.
Other tenants include a funeral director, a barber, a hairdresser, a fire alarm and security showroom and Powerhouse Fitness, one of a chain of fitness equipment shops.
Some of the retailers are subletting the flats included in their lease in order to supplement their income.
“That makes a big difference for a sole trader,” said Grossman. “Some of these units have a rateable value below £12,000, so if they are let to a sole trader they don’t pay rates.”
The sale will take place at the Radisson Blu Portman Hotel, W1, on 13 December.
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