Bournemouth, 98 Old Christchurch Road
Bournemouth, 98 Old Christchurch Road Freehold Retail and Residential Investment Commercial Element Let To Eurochange Ltd
INVESTMENT SUMMARY • Eurochange Ltd occupys the commercial element under a 10 year lease from 24 March 2016 (8 years unexpired) • Rent payable for retail element £22,000 pax which is rack rented in our opinion • Upper parts vacant. First floor would form a studio/one bedroom apartment. On the second and third floors is an existing 2 bedroom maisonette needing refurbishment • Asset management opportunity to create a further studio at basement level, subject to variation of the lease • Attractive lot size and intact freehold in a town with limited availability of freeholds • Guide price £400,000 subject to contract • No VAT
LOCATION Within the wider sub-region Bournemouth is a key location for tourism, culture, higher education and office based employment. The town is a focus of economic investment regionally. The wider conurbation has an operational maritime port and international Airport. It also has two strong Universities; Bournemouth University and Arts University Bournemouth with over 20,000 students bringing further spend to the area. Bournemouth benefits from seven miles of beaches which have traditionally helped underpin a strong tourist industry. Tourism in the town is complemented by nearby attractions, such as the New Forest National Park and World Heritage Jurassic Coastline.
RETAILING IN BOURNEMOUTH The town has a primary catchment of 436,000 persons and an estimated shopping population of 165,000 persons. The town attracts spending from the surrounding area, particularly to the west from Poole and ranks 48th in terms of volume of comparison retail spend (PROMIS). Bournemouth is projected to see above average growth in population over the period 2014-2019. The sub regional town is moderately affluent with an over representation of the most affluent AB and C1 social group. In contrast, the least affluent D and E social groups are particularly under represented. The position of the unit is at the upper end of the pedestrianised sector of Old Christchurch Road in a good secondary retailing position. The pitch is known for its abundance of A2 retailers and other occupiers in the area include Halifax and Co-Operative Banks, Bath Travel Agents, various estate agents and independent retailers.
DESCRIPTION
LEASE TERMS
The subject premises comprises a mid-terrace retail property with retail accommodation at ground floor and with ancillary storage accommodation at basement level. There are three floors of vacant accommodation above on first/second and third floors benefiting from residential use. Access to the basement is provided for at the rear of the property which also provides access to the upper parts.
The ground and basement are let to Eurochange Ltd from 24 March 2016 by way of a 10 year effectively full repairing and insuring lease at a rent of £22,000 pax. The tenant has the option to determine the lease on the seventh anniversary, subject to 6 months written notice. There is an open market (upward only) rent review on the fifth anniversary of the lease.
The upper parts comprise an office at first floor which has a Certificate of Lawful Proposed Use or Development for residential use and would form a studio/ one bedroom apartment. The second and third floors are already currently laid out as a two bedroom apartment. The accommodation needs refurbishment.
ACCOMMODATION We have measured and calculate the accommodation to have the following approximate net internal floor area for the shop and basement and GIA on the upper floors: NIA Gross Frontage of
4.37 m
14 ft 4 ins
4.00 m 11.40 m 40.78 sq m
Net Frontage of Shop Depth Total Sales Units in terms of Zone A Basement
34.02 sq m
13 f 2 ins 37 ft 5 ins 439 sq ft 348 sq ft 366 sq ft
GIA First Floor Second Floor Third Floor
38.50 sq ft 34.00 sq m 34.00 sw m
414 sq ft 366 sq ft 366 sq ft
181.30 sq m
1,951 sq ft (NIA/GIA)
Total Building
COVENANT INFORMATION The tenant company is Eurochange Ltd (company reg no. 02519424). This company has over 125 branches throughout the UK and is a specialist foreign exchange expert providing both online and branch service. It has a credit recommendation of £607,500 (Dunn & Bradstreet). Further financial information is set out below for the year end 30.06.2016: D & B Rating 3A 1 Turnover Profit before Tax Net Assetts
£26,523,000 £7,135,000 £17,493,000
EPC
PROPOSAL
We understand the shop has an EPC rating of F and the flat to has a rating of D 57.
We are instructed to sell the freehold interest in the property, subject to the occupational lease.
PLANNING
Guide price £400,000 (Four Hundred Thousand Pounds), subject to contract.
We understand that the ground floor retail unit benefits from A2 planning consent within the Use Classes Order 1987 (as amended).
VAT
A Certificate of Lawful Proposed Use or Development (7-2015-2742s) has been issued confirming that it is considered that the proposed change of use to residential for the first floor is considered permitted development.
VAT is not applicable to the sale.
The 2nd and 3rd floors are already residential.
BUSINESS RATES AND COUNCIL TAX Rateable Value: £29,000 Council Tax Band A (2nd and 3rd Floor flat)
FURTHER INFORMATION Mark Minchell
m.minchell @flude.com 01243 929136
Flude Commercial for themselves and for the vendors or lessors of this property whose agents they are give notice that: i) these particulars are set out in good faith and are believed to be correct but their accuracy cannot be guaranteed and they do not form any part of any contract; ii) no person in the employment of Flude Commercial has any authority to make or give any representation or warranty whatsoever in relation to this property.
LOCATION MAPS
PLANS
ADDITIONAL PHOTOS OF UPPER FLOORS
INVESTMENT SUMMARY • Eurochange Ltd occupys the commercial element under a 10 year lease from 24 March 2016 (8 years unexpired) • Rent payable for retail element £22,000 pax which is rack rented in our opinion • Upper parts vacant. First floor would form a studio/one bedroom apartment. On the second and third floors is an existing 2 bedroom maisonette needing refurbishment • Asset management opportunity to create a further studio at basement level, subject to variation of the lease • Attractive lot size and intact freehold in a town with limited availability of freeholds • Guide price £400,000 subject to contract • No VAT
LOCATION Within the wider sub-region Bournemouth is a key location for tourism, culture, higher education and office based employment. The town is a focus of economic investment regionally. The wider conurbation has an operational maritime port and international Airport. It also has two strong Universities; Bournemouth University and Arts University Bournemouth with over 20,000 students bringing further spend to the area. Bournemouth benefits from seven miles of beaches which have traditionally helped underpin a strong tourist industry. Tourism in the town is complemented by nearby attractions, such as the New Forest National Park and World Heritage Jurassic Coastline.
RETAILING IN BOURNEMOUTH The town has a primary catchment of 436,000 persons and an estimated shopping population of 165,000 persons. The town attracts spending from the surrounding area, particularly to the west from Poole and ranks 48th in terms of volume of comparison retail spend (PROMIS). Bournemouth is projected to see above average growth in population over the period 2014-2019. The sub regional town is moderately affluent with an over representation of the most affluent AB and C1 social group. In contrast, the least affluent D and E social groups are particularly under represented. The position of the unit is at the upper end of the pedestrianised sector of Old Christchurch Road in a good secondary retailing position. The pitch is known for its abundance of A2 retailers and other occupiers in the area include Halifax and Co-Operative Banks, Bath Travel Agents, various estate agents and independent retailers.
DESCRIPTION
LEASE TERMS
The subject premises comprises a mid-terrace retail property with retail accommodation at ground floor and with ancillary storage accommodation at basement level. There are three floors of vacant accommodation above on first/second and third floors benefiting from residential use. Access to the basement is provided for at the rear of the property which also provides access to the upper parts.
The ground and basement are let to Eurochange Ltd from 24 March 2016 by way of a 10 year effectively full repairing and insuring lease at a rent of £22,000 pax. The tenant has the option to determine the lease on the seventh anniversary, subject to 6 months written notice. There is an open market (upward only) rent review on the fifth anniversary of the lease.
The upper parts comprise an office at first floor which has a Certificate of Lawful Proposed Use or Development for residential use and would form a studio/ one bedroom apartment. The second and third floors are already currently laid out as a two bedroom apartment. The accommodation needs refurbishment.
ACCOMMODATION We have measured and calculate the accommodation to have the following approximate net internal floor area for the shop and basement and GIA on the upper floors: NIA Gross Frontage of
4.37 m
14 ft 4 ins
4.00 m 11.40 m 40.78 sq m
Net Frontage of Shop Depth Total Sales Units in terms of Zone A Basement
34.02 sq m
13 f 2 ins 37 ft 5 ins 439 sq ft 348 sq ft 366 sq ft
GIA First Floor Second Floor Third Floor
38.50 sq ft 34.00 sq m 34.00 sw m
414 sq ft 366 sq ft 366 sq ft
181.30 sq m
1,951 sq ft (NIA/GIA)
Total Building
COVENANT INFORMATION The tenant company is Eurochange Ltd (company reg no. 02519424). This company has over 125 branches throughout the UK and is a specialist foreign exchange expert providing both online and branch service. It has a credit recommendation of £607,500 (Dunn & Bradstreet). Further financial information is set out below for the year end 30.06.2016: D & B Rating 3A 1 Turnover Profit before Tax Net Assetts
£26,523,000 £7,135,000 £17,493,000
EPC
PROPOSAL
We understand the shop has an EPC rating of F and the flat to has a rating of D 57.
We are instructed to sell the freehold interest in the property, subject to the occupational lease.
PLANNING
Guide price £400,000 (Four Hundred Thousand Pounds), subject to contract.
We understand that the ground floor retail unit benefits from A2 planning consent within the Use Classes Order 1987 (as amended).
VAT
A Certificate of Lawful Proposed Use or Development (7-2015-2742s) has been issued confirming that it is considered that the proposed change of use to residential for the first floor is considered permitted development.
VAT is not applicable to the sale.
The 2nd and 3rd floors are already residential.
BUSINESS RATES AND COUNCIL TAX Rateable Value: £29,000 Council Tax Band A (2nd and 3rd Floor flat)
FURTHER INFORMATION Mark Minchell
m.minchell @flude.com 01243 929136
Flude Commercial for themselves and for the vendors or lessors of this property whose agents they are give notice that: i) these particulars are set out in good faith and are believed to be correct but their accuracy cannot be guaranteed and they do not form any part of any contract; ii) no person in the employment of Flude Commercial has any authority to make or give any representation or warranty whatsoever in relation to this property.
LOCATION MAPS
PLANS
ADDITIONAL PHOTOS OF UPPER FLOORS
