Highly Secure Retail Investment
8 Station Road | Ashington | NE63 9HJ
offers in excess of
Prominent Town Centre location
Highly secure income - let EE Ltd (Net Assets over £6,000million)
Tenant leases entire building
Let until May 2026 – no breaks
Offers in excess of £320,000, subject to contract
Attractive Net initial Yield of 7.55%
The property is located in Ashington, a former mining town located approximately 18 miles north of Newcastle upon Tyne. The town benefits from good transport links providing direct access to the A189 Spine Road and is also situated approximately 6 miles to the east of the A1.
The property occupies a prominent position on Station Road which is Ashington’s main retail thoroughfare. New Look and Ramsdens occupy units immediately adjacent whilst Lloyds and Superdrug are located opposite the property. Other retailers in the immediate vicinity include Barclays, Subway, Greggs and Poundland.
The building is a two storey traditional mid-terraced brick building with pitched slate roof. The building has been extended to the rear. The unit has a modern powdered aluminium glazed frontage with corporate display fascia.
Internally the unit is fitted to a high standard with the tenant’s corporate fitout, including tiled floor, plasterboard/painted walls and suspended ceiling with fluorescent light fittings and air conditioning units installed.
There is open plan sales area with rear office and staff toilet. An internal stair leads to the first floor which comprises additional storage.
We have been provided with the following net internal floor areas:
|Ground Floor||124.49 sq m||1,340 sq ft|
|First Floor||56.86 sq m||612 sq ft|
|ITZA||72.93 sq m||785 sq ft|
The entire property is let on a 10 year lease to EE Ltd (Co No 02382161) on a Full Repairing and Insuring basis until 12th May 2026. The tenant had a break option effective 12th May 2020, which required 6 months’ notice. The break option has not been exercised and there are no further breaks.
The current rent is £25,000pa (£31.85/sq ft) and there is a rent review on 12th May 2021.
EE Ltd (Co No 02382161) has reported the following trading figures;
|31st March 2020||31st March 2019|
|Turnover||£7,264 million||£7,149 million|
|Pre-Tax Profit||£1,643 million||£1,440 million|
|Net Assets||£6,070 million||£5,191 million|
EE was acquired by BT Group Plc in January 2016 and is the largest and most advanced digital communications company in Britain, delivering mobile and fixed communication services. EE has approximately 553 retail stores, and services more than 31 million connections across its mobile, fixed and wholesale networks. For further information, please visit www.ee.co.uk.
The property is elected for VAT and it is anticipated the transaction will take place by way of a TOGC (Transfer of Going Concern).
We are instructed to seek offers in excess of £320,000 (Three Hundred and Twenty Thousand Pounds), subject to contract. This price reflects a net initial yield of 7.55%, assuming purchasers’ costs of 3.22%.
Please note that a purchaser will be re-charged the cost of searches which are provided in the data room.
Attractive net yield of 7.55%;
Highly secure tenant – Pre-tax profits of £1,643 million;
Prominent town centre location;
Tenant committed to location – break option not exercised;
Ideal lot size for private investors and SIPP purchasers;
Entire building for sale.
|Burnetts||+44 (0) 122 855 2244|