stop high-yielding-long-income-investment-for-sale-clitheroe - Singer Vielle Sales

High Yielding, Long Income Investment For Sale

The Original Factory Shop |  Clitheroe | BB7 1NA

£415,000

subject to contract

EXCHANGED

Summary

  • To be sold by clicktopurchase® online auction - 13th June, 3:00pm

  • Prominent position immediately opposite Lidl

  • 11.25 years unexpired lease term

  • Fixed rental uplifts

  • Let to The Original Factory Shop

  • Trading from this property since 1999

  • Guide Price £415,000, subject to contract

  • 8.5% Net Initial Yield

  • Guaranteed Reversionary Yield:
    • 9.3% in Aug 2019
    • 10.3% in Aug 2024

Location

Clitheroe is a historic town in Lancashire, located approximately 48 km (30 miles) north of Manchester, 24 km (15 miles) north-east of Preston and 16 km (10 miles) north-west of Burnley.

The town benefits from good road communications being situated 1.6 km (1 mile) west of the A59 which in turn links with Junction 7 of the M65 Motorway some 11 km (7 miles) to the south. Clitheroe is connected to the national railway network with regular services to Preston (journey time 1 hour) and a fastest journey time to Manchester Victoria of approximately 1 hour 10 minutes.

The town is also near the Forest of Bowland, an Area of Outstanding Natural Beauty, and is often used as a base for tourists visiting the area.

Situation

The property occupies a prominent corner position fronting Shawbridge Street, at its junction with Taylor Street.

The property is immediately opposite a Lidl supermarket and adjacent to Clitheroe Football Club. A large Tesco superstore is less than 200 metres to the north-west and other nearby occupiers include Sainsbury’s, Homebase and Howdens. Clitheroe station is less than 0.8 km (0.5 miles) to the north-west.

Description

The property comprises a single storey building of brick construction set beneath a pitched roof. There is a customer car parking area to the front and side of the building.

Internally, the property has been fitted out by the tenant to their usual corporate style to provide a main retail area along with ancillary accommodation.

Accommodation

The property has been measured by BKR Floor Plans and provides the following Net Internal Areas;

Ground Floor Sales 555.63 sq m 5,981 sq ft
Ground Floor Ancillary 55.93 sq m 602 sq ft
Total 611.56 sq m 6,583 sq ft

A set of floor plans is available to download and the measured survey report can be re-addressed to a purchaser.

Tenure

The property is held on a part Freehold and part Long Leasehold basis.

The two 999 year long-leasehold elements have 842 years and 858 years unexpired respectively, with a combined nominal ground rent of £27 per annum.

Tenancy

The property is entirely let to The Factory Shop Ltd, (t/a The Original Factory Shop) at a passing rent of £36,676 per annum (£59.97 per sq m / £5.57 per sq ft).

The tenant has been in occupation since 1999 and such is their long term commitment to the property in August 2011 they entered into a reversionary Full Repairing and Insuring lease expiring 12th August 2029 (11.25 years unexpired lease term).

The lease benefits from the following fixed rental increases:

13th August 2019 to
12th August 2024
£40,343.60 per annum
13th August 2024 £44,377.96 per annum

Covenant

The Factory Shop Ltd (Co. No. 4176887), has reported the following figures;

  2nd April 2017 2nd April 2016
Turnover £190,195,000 £184,496,000
Pre-Tax Profits £4,735,000 £6,337,000
Exceptional Items -£7,062,000 -£322,000
Profit after Exceptional Items -2,327,000 £6,015,000
Shareholders’ Funds £47,739,000 £49,879,000

The Original Factory Shop was founded in 1969 and comprises around 200 ‘mini’ department stores across the UK, as well as a trading website. The business sells a wide range of branded and own sourced products across fashion, footwear, and household departments at significant discounts to a broad customer base. Stores are most often in market towns and tourist locations where they act as both a shopping destination and the major non-food retailer in the immediate locality. The group has continued its store opening program, with 5 new stores opened in the latest financial year. For further information please visit www.tofs.com.

VAT

The property has been elected for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

Proposal

Guide price £415,000 (Four Hundred and Fifteen Thousand Pounds), subject to contract, reflecting a net initial yield of 8.5%, rising to 9.3% in August 2019 and 10.3% in August 2024, assuming standard purchaser’s costs of 3.97%.

Investment Considerations

  1. The investment is let to an established tenant, The Factory Shop Limited - Shareholders’ Funds £47.7 million;

  2. 11.25 years unexpired lease term;

  3. The lease benefits from guaranteed rental uplifts;

  4. The tenant has been trading from this property since 1999;

  5. The property occupies a prominent position within a popular market town;

  6. A purchase at the asking price reflects an attractive yield profile;

  7. The investment provides a purchaser with an attractive lot size.

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
Ed Jeffs ed@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

Vendor Solicitors

Asserson Law Offices +44 (0) 20 3150 1302
David Prais david.prais@asserson.co.uk
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