FOR SALE Prime High Street Retail Investment
FOR SALE Prime High Street Retail Investment 75 Linthorpe Road Middlesbrough TS1 5BU
July 2014
100% prime prominent retail investment on fully pedestrianised high street situated immediately opposite Arcadia and New Look flagship stores.
Well configured building arranged as ground floor sales with fully glazed frontage, two upper floors and basement storage.
Re-based rent set in September 2010 of £55,000 p.a. reflecting a low Zone A rate of £76 per sq ft
Let until September 2020 to Parisia Ladies Wear, with tenant break option in January 2016.
Offers of £575,000 are sought reflecting an attractive net initial yield of 9.04%, allowing for purchasers’ costs taken at 5.8%
gva.co.uk/6574
Location Middlesbrough is the principal retail and service centre within the Teesside conurbation. The town has an estimated urban area population of approximately 150,000 and an estimated weight catchment population of circa 295,000. The town is located approximately 40 miles south of Newcastle, 22 miles east of Durham and 52 miles north of York. By rail Darlington and York provide connecting services from Middlesbrough to London with a fastest journey time of 2 hours and 50 minutes. Durham Tees Valley Airport is located approximately 12 miles to the south west providing domestic and European flights.
Situation The subject property occupies a 100% prime position in the southern section of Linthorpe Road on the west side of the street immediately opposite the Cleveland Centre. The property lies just south of Gilkes Street and the approach to the Captain Cook Square Centre. National multiple retailers within the immediate vicinity include Boots, Maplin, Top Shop, New Look, The Car Phone Warehouse, Virgin Media, Natwest, McDonalds, Lloyds TSB, Nobles Amusements, Everything Everywhere, Game, Santander Select, River Island, Vodafone, Starbucks, BHS, House of Fraser and many other national regional and local retailers.
The lease provides for an upwards only open market rent review in September 2015, and the tenant has the option to determine the lease on 15 January 2016 subject to 3 months rent penalty. The tenant advises they trade well from the unit in a location with a number of other fashion retailers.
Occupier Market Prime rents have fallen significantly in recent years with a number of rents having been re-based forming the new established rental tone of £70-£80 per sq ft Zone A. Recent lettings along the street and within the Cleveland Shopping Centre support the subject property’s rental level, which provides genuine opportunity for future growth. There are no vacancies in the central prime section of the street.
Description/Accommodation The premises comprise a mid terrace 3-storey brick building with a pitched slate covered roof. Whin Street immediately to the rear of the property provides access for servicing. Internally the property is arranged as ground floor sales with 1st, 2nd floor and basement ancillary space. The property has the following net internal floor areas. Ground floor ITZA Grd floor sales 100.37m² 35.77m² 1st floor ancillary 46.73m² 2nd floor ancillary Basement ancillary 40.82m²
688 units (1,080 sq ft) ( 385 sq ft) ( 503 sq ft) ( 439 sq ft)
TOTAL NIA
(2,407 sq ft)
223.69m2
Tenure Freehold
Tenancy The property is let in its entirety to Iftikar Ahmed (t/a Parisia Ladies Wear) for a term of 10 years from the15 September 2010 on full repairing and insuring terms at an initial rent of £55,000 p.a., reflecting £76 per sq ft Zone A.
gva.co.uk
Sales Evidence 53-57 Linthorpe Road comprises 3 large rental units let to River Island, USC and Select with an AWULT of 6 years to break and produces £410,500 p.a. (ERV £295,000 p.a.). The property was bought for £4,550,000 reflecting an 8.5% NIY (6% return on true ERV). 79 Linthorpe Road let to Everything Everywhere Ltd was sold in February 2012 with 9 years unexpired at a level reflecting 8.61% net initial yield. The lease provides for open market rent reviews and the current rental level reflects £135 per sq ft Zone A, approximately 75% higher than the subject property.
VAT The property is not elected for VAT.
EPC The property has an EPC rating of D.
Terms We are instructed to seek offers for our client’s freehold interest of £575,000 (Five Hundred and Seventy Five Thousand Pounds) excluding VAT, reflecting an attractive net initial yield of 9.04%, after deducting for purchasers’ costs at 5.8%.
Viewing For further information or an appointment to view please contact: Luke Symonds T: 0191 269 0095 E: [email protected] Simon Beanland T: 0191 269 0512 E:[email protected]
gva.co.uk
GVA is the trading name of GVA Grimley limited, conditions under which particulars are issued by GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. (ii) all descriptions, dimensions, references to condition and necessary permission for use and occupation, and other details, are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. (iii) no person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property. (iv) all rentals and prices are quoted exclusive of VAT Reproduced by courtesy of the Controller of HMSO Crown Copyright reserved. Licence No 774359. If applicable, with consent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map Co Ltd and/or The Automobile Association. For identification purposes only.
gva.co.uk
July 2014
100% prime prominent retail investment on fully pedestrianised high street situated immediately opposite Arcadia and New Look flagship stores.
Well configured building arranged as ground floor sales with fully glazed frontage, two upper floors and basement storage.
Re-based rent set in September 2010 of £55,000 p.a. reflecting a low Zone A rate of £76 per sq ft
Let until September 2020 to Parisia Ladies Wear, with tenant break option in January 2016.
Offers of £575,000 are sought reflecting an attractive net initial yield of 9.04%, allowing for purchasers’ costs taken at 5.8%
gva.co.uk/6574
Location Middlesbrough is the principal retail and service centre within the Teesside conurbation. The town has an estimated urban area population of approximately 150,000 and an estimated weight catchment population of circa 295,000. The town is located approximately 40 miles south of Newcastle, 22 miles east of Durham and 52 miles north of York. By rail Darlington and York provide connecting services from Middlesbrough to London with a fastest journey time of 2 hours and 50 minutes. Durham Tees Valley Airport is located approximately 12 miles to the south west providing domestic and European flights.
Situation The subject property occupies a 100% prime position in the southern section of Linthorpe Road on the west side of the street immediately opposite the Cleveland Centre. The property lies just south of Gilkes Street and the approach to the Captain Cook Square Centre. National multiple retailers within the immediate vicinity include Boots, Maplin, Top Shop, New Look, The Car Phone Warehouse, Virgin Media, Natwest, McDonalds, Lloyds TSB, Nobles Amusements, Everything Everywhere, Game, Santander Select, River Island, Vodafone, Starbucks, BHS, House of Fraser and many other national regional and local retailers.
The lease provides for an upwards only open market rent review in September 2015, and the tenant has the option to determine the lease on 15 January 2016 subject to 3 months rent penalty. The tenant advises they trade well from the unit in a location with a number of other fashion retailers.
Occupier Market Prime rents have fallen significantly in recent years with a number of rents having been re-based forming the new established rental tone of £70-£80 per sq ft Zone A. Recent lettings along the street and within the Cleveland Shopping Centre support the subject property’s rental level, which provides genuine opportunity for future growth. There are no vacancies in the central prime section of the street.
Description/Accommodation The premises comprise a mid terrace 3-storey brick building with a pitched slate covered roof. Whin Street immediately to the rear of the property provides access for servicing. Internally the property is arranged as ground floor sales with 1st, 2nd floor and basement ancillary space. The property has the following net internal floor areas. Ground floor ITZA Grd floor sales 100.37m² 35.77m² 1st floor ancillary 46.73m² 2nd floor ancillary Basement ancillary 40.82m²
688 units (1,080 sq ft) ( 385 sq ft) ( 503 sq ft) ( 439 sq ft)
TOTAL NIA
(2,407 sq ft)
223.69m2
Tenure Freehold
Tenancy The property is let in its entirety to Iftikar Ahmed (t/a Parisia Ladies Wear) for a term of 10 years from the15 September 2010 on full repairing and insuring terms at an initial rent of £55,000 p.a., reflecting £76 per sq ft Zone A.
gva.co.uk
Sales Evidence 53-57 Linthorpe Road comprises 3 large rental units let to River Island, USC and Select with an AWULT of 6 years to break and produces £410,500 p.a. (ERV £295,000 p.a.). The property was bought for £4,550,000 reflecting an 8.5% NIY (6% return on true ERV). 79 Linthorpe Road let to Everything Everywhere Ltd was sold in February 2012 with 9 years unexpired at a level reflecting 8.61% net initial yield. The lease provides for open market rent reviews and the current rental level reflects £135 per sq ft Zone A, approximately 75% higher than the subject property.
VAT The property is not elected for VAT.
EPC The property has an EPC rating of D.
Terms We are instructed to seek offers for our client’s freehold interest of £575,000 (Five Hundred and Seventy Five Thousand Pounds) excluding VAT, reflecting an attractive net initial yield of 9.04%, after deducting for purchasers’ costs at 5.8%.
Viewing For further information or an appointment to view please contact: Luke Symonds T: 0191 269 0095 E: [email protected] Simon Beanland T: 0191 269 0512 E:[email protected]
gva.co.uk
GVA is the trading name of GVA Grimley limited, conditions under which particulars are issued by GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. (ii) all descriptions, dimensions, references to condition and necessary permission for use and occupation, and other details, are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. (iii) no person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property. (iv) all rentals and prices are quoted exclusive of VAT Reproduced by courtesy of the Controller of HMSO Crown Copyright reserved. Licence No 774359. If applicable, with consent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map Co Ltd and/or The Automobile Association. For identification purposes only.
gva.co.uk
