South East Mixed Use City Centre Investment
1/1A Moulsham Street & Kings Head Walk | Chelmsford | CM2 0HR
subject to contract
Coronavirus Act 2020
The property is sold with the benefit of a six month rent guarantee to ensure an investor has no issues receiving income in light of the Coronavirus Act 2020 Part 1 Section 82. Please refer to the Special Conditions of Sale for details of the provision.
A multi-let retail & office investment
Prominent city centre position
Affluent city located in the London commuter belt
Active management opportunities
Potential change of use to residential on upper floors, subject to planning
£1,200,000, subject to contract
12.5% net initial yield
£128 per sq ft / £1,374 per sq metre (gross internal area)
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
Chelmsford is a popular city within the London commuter belt, situated approximately 53 km (33 miles) north east of London, 21 km (13 miles) south of Braintree and 40 km (25 miles) south west of Colchester.
The city benefits from good road communications being situated adjacent to the A12 which provides direct access to Central London and Junction 28 of the M25 Motorway within 21 km (13 miles). Junction 7 of the M11 Motorway is approximately 27 km (17 miles) to the west, accessed via the A414.
In addition, the city is connected to the national railway network with regular train services operating from London Liverpool Street with a journey time of 32 minutes. Chelmsford railway station is the busiest two-platform station in the UK outside of London, with an estimated 8.5 million passenger trips completed per year.
Stansted International Airport is located approximately 29 km (18 miles) to the north-west.
Chelmsford is the principal city of Essex, providing the county’s main commercial and administrative centre.
The property is situated in a prominent position in the heart of the city centre at the northern end of the pedestrianised Moulsham Street immediately to the south of High Street, the principal retail thoroughfare for Chelmsford.
The property is a short walk from Bond Street Chelmsford, an open-air shopping and leisure destination on High Street which opened in 2016. Anchored by a 120,000 sq ft John Lewis department store the scheme includes 30 retail units, 7 riverside restaurants and cafes, a luxury cinema and a 288 space underground car park. Occupiers include The White Company, Joules, Jack Wills, Jojo Maman Bebe, The North Face, Byron, Bill’s and Wagamama.
Opposite Bond Street Chelmsford is High Chelmer Shopping Centre, comprising over 80 shops plus a 980 space multi-storey car park. Retailers include Primark, Next, Boots, JD Sports, River Island, Topman and Bang & Olufsen.
The Meadows Shopping Centre is also immediately to the north of the subject property. With over 200,000 sq ft of retail space, occupiers include Wilko, Superdrug, Card Factory, Warren James, Costa and Burger King.
The property comprises a mixed-use building with two retail units fronting Moulsham Street with offices above on first and second floors. There is a modern extension to the rear housing a retail unit fronting Kings Head Walk with offices above on first and second floors.
The retail accommodation has been fitted by the tenants to their individual corporate designs. The offices provides good quality air-conditioned accommodation as shown in the photo gallery.
The property has been measured by BKR Floor Plans and provides the following Net Internal Areas:
|1 Moulsham Street, Grnd Floor (Love Toast)|
|Zone A||44.96 sq m||484 sq ft|
|Zone B||26.94 sq m||290 sq ft|
|Total||71.90 sq m||774 sq ft|
|1 Moulsham Street, Grnd Floor (Vacant storage - undemised)|
|201 sq ft||18.67 sq m|
|1A Moulsham Street, Grnd Floor (Supercuts)|
|Zone A||37.90 sq m||408 sq ft|
|Zone B||28.52 sq m||307 sq ft|
|Total||66.42 sq m||715 sq ft|
|Kings Head Walk, Grnd Floor (Coco Nails)|
|Zone A||37.72 sq m||406 sq ft|
|Zone B||38.27 sq m||412 sq ft|
|Zone C||9.20 sq m||99 sq ft|
|Total||85.19 sq m||917 sq ft|
|1A Moulsham Street, Part 1st Floor (Vacant)|
|57.23 sq m||616 sq ft|
|1/1A Moulsham Street, Part 1st & Part 2nd Floor (Reed)|
|203.54 sq m||2,191 sq ft|
|Kings Head Walk, 1st Floor (Better Agency)|
|96.99 sq m||1,044 sq ft|
|Kings Head Walk, 2nd Floor (Elite Management)|
|96.99 sq m||1,044 sq ft|
|Total Net Internal Area||696.94 sq m||7,502 sq ft|
Please refer to the tenancy schedule for information on the rates payable.
The property is multi-let in accordance with the tenancy schedule provided, producing a total current income of £163,750 per annum.
It is encouraging to note the recent letting of 1 Moulsham Street at £40,000 per annum and the first floor office letting . Full details are provided on the attached schedule.
It should be noted that the current arrears position is as follows:
|Reed Specialist Recruitment||£8,333.79|
|Coco Nails Chelmsford||£30,000.48|
|Better Agency Limited||£43,745.26|
|Elite Management Agency||£0.70|
|UK Hairdressers 2911 Limited||£13,303.19|
(As at 12th May 2021)
The purchaser is to use reasonable endeavours to collect the arrears and pass back to the vendor. Please refer to the Special Conditions of Sale for full details of the contract provision.
It should be noted that there is a court claim pending against Better Agency Limited for the non-payment of rent, insurance and service charge amounting to £42,075. The purchaser will take over the court claim. UPDATE at 24th May: Please note that correspondence has been received from the tenant seeking to settle the arrears. This has been uploaded to our legal data area at Clicktopurchase®.
The tenants are required to contribute towards a service charge which for the year ending December 2021 totals £49,511. The Service Charge Accounts and Budgets are available to download.
Note that the recent letting to Obex Recuitment Limited is inclusive of service charge which for this letting amounts to £4,741.
Love Toast Limited was newly incorporated in November 2019 so their first accounts have not yet been filed at Companies House. A £10,000 + VAT rent deposit is held by the landlord.
UK Hairdressers 2911 Limited was newly incorporated in December 2019 so their first accounts have not yet been filed at Companies House.
Obex Recruitment – a rent deposit of £2,500 + VAT is held by the landlord.
Reed Specialist Recruitment Limited (Co. No 06903140) has reported the following figures:
|30th June 2019||30th June 2018|
The company is a specialist provider of permanent, contract, temporary and outsourced recruitment solutions. The ultimate parent company is Reed Global Limited. Established in 1960, REED has become the biggest family run recruitment business in the world. For further information visit www.reed.com.
Coco Nails Chelmsford Limited – a rent deposit of £17,523 + VAT is held by the landlord.
Better Agency Limited (Co. No. 08276373) was established in 2012 and is an experienced digital marketing agency that works with a divers range of global brands and SMEs including Lamborghini, Kelly Hoppen, Bentley Motors and Dura Digital PR. For the year ending 31st December 2019 the company reported Shareholders’ Funds of £7,865. For further information visit www.betteragency.co.uk. A rent deposit of £1,809 is held by the landlord
Elite Management Agency Limited (Co. No. 07810784) is an experienced agency which represents footballers throughout the Football Leagues. The services they offer include career development/management, financial planning, contractual negotiations, loan moves, media advice etc. For the year ending 31st October 2019 the company reported Shareholders’ Funds of £842,345. A rent deposit of £3,900 is held by the Landlord. For further information visit www.elite.gd. A rent deposit of £3,261 + VAT is held by the landlord.
The property has been elected for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
Our client is seeking a figure of £1,200,000 (One Million, Two Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 12.5%, after allowing for standard purchaser’s costs of 5.93% taking into account the service charge shortfall of £4,741).
This amounts to a capital value of £128 per sq ft / £1,374 per sq m on the net internal area.
Please note that a purchaser will be re-charged the cost of the searches (£820.03) and the measured survey (£550 + VAT).
Please note a purchaser will be charged a Transaction Fee of £10,000 plus VAT.
An opportunity to acquire a freehold retail & office investment in an affluent city within the London commuter belt;
The property occupies a prominent position in the heart of the city centre;
Active management opportunities;
Potential change of use to residential on the upper floors, subject to planning;
A purchase at the asking price reflects an attractive net initial yield and attractive capital value;
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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