15 Years Undoubted Income

Bank of Scotland plc | 16/26 (even) Bank Street | Carlisle | CA3 8HE


subject to contract



  • Undoubted Income - Let to Bank of Scotland plc t/a Halifax

  • 15 years term certain

  • Assignment to undoubted covenants only

  • Thriving University Cathedral City

  • Freehold

  • VAT free

  • Guide Price £1,485,000

  • Net Initial Yield 5.5%


The city of Carlisle is located within the county of Cumbria, approximately 488 km (305 miles) north west of Central London, 187 km (117 miles) north of Manchester, 293 km (183 miles) north of Birmingham, 93 km (58 miles) west of Newcastle, 154 km (96 miles) south east of Glasgow and 146 km (91 miles) south of Edinburgh.

The city benefits from good road communications being situated approximately 3 km (2 miles) west of Junction 43 and 5 km (3 miles) south of Junction 44 of the M6 Motorway. The A74, which leads into the A74(M), is approximately 5 km (3 miles) to the north and provides direct access to the M74 and Glasgow to the north west. In addition, the A7 and A69 link Carlisle City Centre directly with Edinburgh to the north and Newcastle to the east respectively.

The city is connected to the national railway network by Carlisle Station. Journey times are approximately 3 hours 25 minutes to London Euston, 2 hours 45 minutes to Birmingham New Street, 1 hour 20 minutes to Edinburgh, 1 hour 14 minutes to Glasgow Central, 1 hour 55 minutes to Manchester Piccadilly and 1 hour 20 minutes to Newcastle. Newcastle International Airport is approximately 91 km (57 miles) east of Carlisle and is accessed via the A69.

The University of Cumbria is headquartered in Carlisle with a history dating back to 1882. In addition, Carlisle is home to a castle and a cathedral hence it is a city rich in both culture and heritage.


Bank Street links Lowther Street with the pedestrianised English Street which is the prime retail destination for the city. Bank Street itself is occupied mainly by banks and building societies including Barclays Bank, HSBC and Skipton Building Society together with a number of specialist retailers.

English Street is home to various national retailers including Boots the Chemist, B&M Bargains, Clintons, House of Fraser, Marks & Spencer, River Island, Tesco Metro and Topshop.

Carlisle’s principal retail centre and anchor for the city is The Lanes Shopping Centre, which provides over 70 retail and restaurant units with many of the national, multiple high street retailers present. These include Debenhams, H&M, JD Sports, New Look, Next and Monsoon. There is also dedicated car parking for 600 vehicles.


The entire property is let on an overriding lease to Bank of Scotland plc and comprises a three storey plus basement building with a traditional brick façade providing two fully glazed contemporary ground floor retail units either side of a self-contained entrance to part of the upper floors.

16/24 Bank Street comprises the main retail unit for the property trading under the Halifax brand and has been fitted out by the bank in their high quality corporate image. The ground floor provides the main open-plan customer area together with a series of consultation / meeting rooms. In addition, two ATM’s are provided. The first floor provides additional high quality office accommodation and the second floor provides training and staff facilities. The upper floor specification includes suspended ceilings incorporating recessed lighting and gas fired central heating. The basement provides storage accommodation and there is also an attic which is unused.

26 Bank Street comprises a small retail unit arranged over ground and basement which has been sub-let to an independent premium menswear retailer. The unit is finished to a good standard with a laminate floor, plaster painted walls and recessed lighting. The self-contained upper floor accommodation above the retail shop, with direct access from Bank Street, provides a number of individual rooms with integral kitchen area and WC’s on first floor and the second floor provides open plan space. Benefitting from good natural light, gas central heating, carpeting and toilet facilities the accommodation is suitable for both offices and training.


We are advised the property provides the following net internal floor areas;

Floor  Sq M Sq Ft
Ground 276.85 2,980
First 210.80 2,269
Second 160.16 1,724
Attic 40.97 441
Basement 190.27 2,048
Bank of Scotland ITZA 166.30 1,790
Sub-let ITZA 57.51 619
Total 879.05 9,462





The entire property is let to Bank of Scotland plc t/a Halifax from 29th December 2016 until 28th December 2031 providing 15 years term certain at an initial rent of £86,670 per annum, upon full repairing and insuring terms. The lease benefits from an upwards only rent review on 29th December 2021 and 29th December 2026.

The tenant is only able to assign the lease for the full term to the Government, a Local or Public Authority, or a company which has had a Dunn & Bradstreet rating of 5A1 or better for three years.

26 Bank Street is let on a sub-lease from Bank of Scotland plc to A. F. Wernham and L. Wernham t/a Room 26 for a term of 10 years from 1st September 2015 expiring on 31st August 2025 at a current passing rent of £27,750 per annum. There is a rent review on 1st July 2018 and 1st July 2023 plus the sub-tenant has a break option on 1st July 2020.


Bank of Scotland plc (Co. No. SC327000) has reported the following figures;

  31st December 2015 31st December 2014
Net Interest Income £ 6,668 million £ 6,445 million
Pre-Tax Profit £ 2,663 million £ 3,400 million
Total Assets £341,333 million £381,130 million
Total Equity £ 15,119 million £ 21,343 million

Bank of Scotland plc is a direct subsidiary of HBOS plc and a wholly owned subsidiary of Lloyds Banking Group plc. It is one of the main operating companies of the Group.


The property has not been registered for VAT. Therefore, VAT will not be payable by a purchaser.

Market Commentary

Parties are invited to refer to the following investment transactions:

Address Tenant Rent Lease Expiry Price Date Sold
28 Bank Street
Bank of
Scotland PLC
per annum
28th Dec 2031 £1.2m
5.0% NIY
Feb 2017
31 High Street 
Bank of
Scotland PLC
per annum
Dec 2031
5.45% NIY
Feb 2017
31 Queen Street
Bank of
Scotland PLC
per annum
Dec 2031
5.3% NIY
Feb 2017
30-36 Middlewood Road,
Bank of
Scotland PLC
per annum
Dec 2031
5.31% NIY
Feb 2017
22-24 Park View
Whitley Bay
Bank of
Scotland PLC
per annum
Dec 2031
5.32% NIY
Feb 2017
3-7 Channel St
Bank of
Scotland PLC
per annum
Dec 2031
5.5% NIY

Feb 2017

2/3 Mill Street 
Bank of
Scotland PLC
per annum
Dec 2031
5.16% NIY

Mar 2017

In addition, the passing rent of £86,670 per annum for the subject property compares favourably with other banks in the immediate vicinity. For instance, the Barclays bank at 33 English Street, which is three buildings along from the subject property, comprises a traditional hard frontage bank building of 950.30 sq m (10,229 sq ft) and is let at a current passing rent of £205,000 per annum on a lease expiring in August 2026.


Auction Guide Price, £1,485,000 (One million, four hundred and eighty-five thousand pounds), subject to contract reflecting a net initial yield of 5.5% after purchasers’ costs of 6.09%.

Investment Considerations

  1. Investment opportunity let to the undoubted covenant of Bank of Scotland plc;

  2. 15 years term certain from 29th December 2016;

  3. The tenant is only able to assign the lease to the Government, a Local or Public Authority, or a company which has had a Dunn & Bradstreet rating of 5A1 or better for three years.

  4. The property occupies a strong position within the city centre close to the prime retailing pitch;

  5. VAT free investment;

  6. A purchase at the asking price will provide an investor with an attractive net initial yield for a highly secure freehold investment.

Contact Us

Singer Vielle   +44 (0) 207 935 7200
Neil Singer neil@singervielle.co.uk +44 (0) 203 478 9120
Dale Henry dale@singervielle.co.uk +44 (0) 203 701 1356
Richard Wolfryd richard@singervielle.co.uk +44 (0) 203 701 1353
Faye Langoulant faye@singervielle.co.uk +44 (0) 203 478 9122
Louanne Malan louanne@singervielle.co.uk +44 (0) 203 701 1386

Vendors Solicitor

Fladgate LLP +44 (0) 203 036 7000
Gavriel Cohen GCohen@fladgate.com  
Philip Turner PTurner@fladgate.com  

Joint Agent

Phil Hay                phay@jacksoncriss.co.uk        +44 (0) 20 7637 7100
Brook Wannop  brookw@jacksoncriss.co.uk  +44 (0) 20 3714 0502

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