stop high-yielding-retail-investment-for-sale-ulverston - Singer Vielle Sales

High Yielding Retail Investment For Sale

The Original Factory Shop | The Gill | Ulverston | Cumbria  | LA12 7BN

£635,000

subject to contract

EXCHANGED

Summary

  • Freehold retail investment opportunity

  • Prominent town centre position

  • In excess of 13.25 years unexpired lease term

  • Fixed rental uplifts

  • Let to The Original Factory Shop

  • Trading from this property since 1999

  • Guide Price £635,000, subject to contract

  • 8.5% Net Initial Yield

  • Guaranteed Reversionary Yield:
    • 9.6% in Sept 2019
    • 10.9% in Sept 2024

Location

Ulverston is an attractive market town and popular tourist area on the south west fringe of the Lake District in Cumbria. The town is located approximately 16 km (10 miles) north-east of Barrow-in-Furness, 16 km (10 miles) south-west of Lake Windemere and 29 km (18 miles) south-west of Kendal.

The town benefits from good road communications being situated on the A590 which links with Junction 36 of the M6 Motorway some 37 km (23 miles) to the north-east. Ulverston is connected to the national railway network with regular services to Lancaster (journey time 40 minutes) and a fastest journey time to London Euston of approximately 3 hours 20 minutes.

The town attracts a large number of visitors due to its proximity to the Lake District.

Situation

The property occupies a prominent position in Ulverston town centre, within short walking distance of Market Street, the town's principal retail thoroughfare. National retailers in the town include Costa, Boots, Tesco, Greggs, Co-op and Santander.

A Pay and Display public car park is situated immediately to the rear of the subject property.

Description

The property comprises a double storey detached building of brick construction set beneath a pitched roof. There is a customer car park/loading area to the 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 on ground floor along with ancillary accommodation at first floor, with a goods lift.

There is a car parking area to the front and side of the property.

Accommodation

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

Ground Floor Sales 578.40 sq m 6,226 sq ft
Ground Floor Ancillary 11.43 sq m 123 sq ft
First Floor Ancillary 436.63 sq m 4,700 sq ft
Total 1,026.45 sq m 11,049 sq ft

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

Site

We understand the property is located within the Ulverston conservation area but is not listed.

Tenure

Freehold.

Tenancy

The property is entirely let to The Factory Shop Ltd, (t/a The Original Factory Shop) at a passing rent of £56,570 per annum (£55.11 per sq m / £5.11 per sq ft).

The tenant has been in occupation since 1999 and such is their long term commitment to the property in July 2011 they entered into a reversionary Full Repairing and Insuring lease expiring 23rd September 2031 (in excess of 13.25 years unexpired lease term).

The lease benefits from the following fixed rental increases:

24th September 2019 to
23rd September 2024
£64,003 per annum
24th September 2024 £72,413 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 £635,000 (Six Hundred and Thirty Five Thousand Pounds), subject to contract, reflecting a net initial yield of 8.5%, rising to 9.6% in September 2019 and 10.9% in September 2024, assuming standard purchaser’s costs of 4.85%.

Investment Considerations

  1. An opportunity to acquire a freehold retail investment;

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

  3. In excess of 13.25 years unexpired lease term;

  4. The lease benefits from guaranteed rental uplifts;

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

  6. The property occupies a prominent position within Ulverston town centre;

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

  8. 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

Vendors Solicitor

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