High Yielding Investment in Affluent South Coast Location
68 Poole Road | Westbourne | Bournemouth | BH4 9DZ
subject to contract
Coronavirus Act 2020
The property is sold with the benefit of a rent guarantee from the vendor to ensure an investor has no issues receiving income in light of the Coronavirus Act 2020 Part 1 Section 82. This is no reflection upon the tenants’ ability to meet their rental obligations but an understandable protection for a purchaser. The guarantee is to end the earlier of the end of the rent moratorium, or a period of 6 months, whichever is the sooner;
Busy and attractive south coast resort town
Freehold retail investment opportunity with self-contained offices
Let to Hays Property Services Ltd (Net Assets £10.3m)
£45,000 per annum
Prime position within affluent suburb of Westbourne
Let until September 2026
£540,000, subject to contract
8.0% Net Initial Yield
Potential for extension (subject to consents)
The property is sold with the benefit of a rent guarantee from the vendor to ensure an investor has no issues receiving income in light of the Coronavirus Act 2020 Part 1 Section 82
Bournemouth is a busy and attractive seaside resort town situated approximately 161 km (100 miles) south-west of London, 35 km (22 miles) west of Southampton and 9.6 km (6 miles) to the east of Poole. The town benefits from good road communications being served by the A338 which links with the A31 and in turn the M27 Motorway. Regular rail services are good with the journey from Bournemouth to London Waterloo having a fastest journey time of approximately 1 hour 50 minutes.
Bournemouth is a major centre for tourism being situated on the South Coast of England and directly to the east of the Jurassic Coast, a world heritage site. It is home to the UK’s best beach, as voted in TripAdvisor’s Travellers’ Choice awards for the second year in a row in 2019.
Bournemouth also benefits from a substantial and growing student population with more than 19,000 students at the University, ranked as one of the top 100 young universities in the world (The Young University Rankings 2020).
The subject property is situated within the affluent suburb of Westbourne, approximately 1.6 km (1 mile) west of Bournemouth Town Centre. A thriving area, often seen as the ‘fashion district’ of Bournemouth, Westbourne’s unique appeal has attracted a varied number of cosmopolitan restaurants, bars, delicatessens, cafes, food stores and boutique shops.
The subject property occupies a prominent position on Pool Road, in the centre of Westbourne. Nearby occupiers include Boots (adjacent), Bang & Olufsen, Iceland, Starbucks, Lloyds Bank and Subway.
The Milburn Road public car park is immediately to the rear, providing approximately 88 car parking spaces.
The property comprises a ground floor retail unit, along with offices on the first and second floors which are self-contained, benefitting from an independent rear access to the car parking area.
The property benefits from a substantial rear area and off-street parking, accessed via Milburn Road.
It is suggested that there is potential for future re-configuration / extension, subject to appropriate consents, to provide an ability to sell/independently let the rear office accommodation.
The property has been measured by BKR Floor Plans and provides the following Net Internal Areas:
|Gross Frontage||5.84 m||19 ft 2 inch|
|Net Frontage||5.33 m||17 ft 6 inch|
|Sq M||Sq Ft|
|Total Ground Floor||204.19||2,198|
|First Floor Offices||133.68||1,439|
|Second Floor Officers||49.42||532|
|Total Net Internal Area||387.30||4,169|
A set of floor plans is available to download and the measured survey report will be re-addressed to a purchaser at a cost of £375 + VAT.
The entire property is let on full repairing and insuring lease to Hays Property Services Limited (t/a Hays Travel) for a term of 15 years from 29th September 2011, expiring on 28th September 2026.
The current passing rent is £45,000 per annum, equating to £38.75 Zone A. This is based upon £7.61 per sq ft on the first floor and second floor offices. There is an upwards only rent review on 29th September 2024.
The first and second floor offices are sub-let to Wexas Limited from 31st October 2019 until 20th September 2026 at £15,000 per annum (£7.61 per sq ft). The lease contains an option to determine on 6th February 2023 and 6th February 2025, subject to 6 months notice.
Hays are liable for quarterly rent payments under the terms of the lease of £11,250 + VAT, hence £13,500.
In respect of the March and June rents which are in arrears due to the “lockdown”, it has been agreed to accept repayment by the tenant monthly over twelve months, with the first instalment starting on 1st October 2020 and last 1st September 2021 (hence, £2,250 per month). For the quarterly rents due from September 2020 onwards, it has been agreed that rent will be paid monthly (£4,500 per month) on the 1st of each following month although Hays have paid the full quarter’s rent for December 2020.
Hence, receipts from Hays during 2020/2021 have been as follows:
|Date Rent Paid||Amount inc VAT|
|1 October||£4,500 (rent monthly)|
|1 October||£2,250 (back rent)|
|2 November||£4,500 (rent monthly)|
|2 November||£2,250 (back rent)|
|1 December||£4,500 (rent monthly)|
|1 December||£2,250 (back rent)|
|21 December||£13,500 (December qtr rent)|
|4 January||£2,250 (back rent)|
Hence, the arrears as at 06/01/2021 are £18,000, consisting of 8 months of repayments. Arrears will vest with the vendor. We include within the legal package a full payment history including those relating to insurance premiums.
Hays Property Services Limited (Co. No. 00288713) has reported the following figures:
|31st October 2019||31st October 2018|
The company is a wholly owned subsidiary of Hays Travel.
Established in 1980, Hays Travel is the UK’s largest independent travel agent specialising in providing good value, quality holidays. According to its website the company employs over 7,500 people with more than 548 retail shops and over 290 travel agents who work from their homes. The company has been included in the Sunday Times' 100 Best Companies to Work For in the UK for three consecutive years.
In October 2019 the company acquired the entire retail portfolio of 555 former Thomas Cook stores after Thomas Cook was placed into compulsory liquidation. The acquisition provided re-employment opportunities for a significant number of former Thomas Cook employees who were made redundant following the collapse, and has trebled the size of the Hays Travel company. The company’s founders John and Irene Hays were hailed ‘heroes of the high street’ after saving thousands of jobs.
The company also runs the Hays Travel Independence Group; a consortium of independent travel retailers who benefit from Hays Travel's buying power, technology and back office expertise. For further information see www.haystravel.co.uk.
The property is elected for VAT. We anticipate that the sale should be capable of being treated as a Transfer of Going Concern (TOGC).
We are instructed to seek offers in the region of £540,000 (Five Hundred and Forty Thousand Pounds), subject to contract, reflecting a net initial yield of 8.0%, assuming standard purchaser’s costs of 4.86%.
Please note that a purchaser will be re-charged the costs of searches and surveys which are provided in the data room.
Please note that a purchaser will be charged a Transaction Fee of 1.0% of the Purchase Price plus VAT.
An opportunity to acquire a freehold retail investment;
The property is located within an affluent suburb of Bournemouth, in a prominent position on Pool Road, in the centre of Westbourne;
Let to the established covenant of Hayes Property Services Limited (Net Assets £10.3m);
A purchase at the asking price will provide an investor with an attractive net initial yield of 8.0%;
Potential reconfiguration / redevelopment of the rear area to provide an enlarged self-contained office unit;
Attractive lot size for an investor;
The property is sold with the benefit of a rent guarantee from the vendor to ensure an investor has no issues receiving income in light of the Coronavirus Act 2020 Part 1 Section 82.
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