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


subject to contract



  • 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


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.


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.


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.


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.


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.


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


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


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


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 +44 (0) 203 478 9120
Dale Henry +44 (0) 203 701 1356
Ed Jeffs +44 (0) 203 701 1353
Faye Langoulant +44 (0) 203 478 9122
Louanne Malan +44 (0) 203 701 1386

Vendor Solicitors

Asserson Law Offices +44 (0) 20 3150 1302
David Prais
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