Chopsticks-selling up

[karter]

MacRoban, you missed this one ( or has this been posted already?)

Very good location for a restaurant but i wonder if a chain would be interested.

Hindwoods Hunter Payne

[James]

Has anyone told the lady who wanted to set up a Vietnamese on Lordship Lane but couldn't find premises!?

[karter]

Good idea james, i think her edf name was kat.

[macroban]

Thanks, karter, I missed this one.

?195k premium (even when negotiated down) is strange in the current climate.

?30k rent can only be a high starting point for negotiations.

[karter]

MacRoban, these are east dulwich commercial prices, i think its reasonable for a brand new lease.

[macroban]

A premium should be regarded as advance rent. For a cash purchaser this is an opportunity cost of c?12.5k p.a. This makes the effective rental c?42.5k p.a.

To borrow money to pay the premium would be a suicide pill.

Perhaps the Hindwoods' staff are too young to remember East Dulwich when premiums were non-existant or small.

[karter]

macRoban i disagree that it would be a suicide pill. The busy restaurants in the area could repay that premium back in a small number of years plus profit, that's why they are valued so high. Remember the Tulip being just a working mans cafe' sold for ?130k, leasehold 26k p.a including the flat above. There are other expamples i could give but i would be here all day. :)