High Yielding Town Centre Retail Investment
Snappy Snaps | Unit 2 | 42 Fleet Street | Torquay | Devon | TQ2 5DW
subject to contract
Popular retail and tourist location
Prominent town centre retailing pitch
Let to Snappy Snaps Franchises Ltd, part of The Timpson Group
5.5 years unexpired lease term
£190,000, subject to contract
8.8% net initial yield
Torquay is a seaside town in Devon located in the district of Torbay, approximately 35 km (22 miles) south of Exeter and 53 km (33 miles) east of Plymouth.
The town benefits from good road communications, being served by the A380 which in turn links with the M5 Motorway approximately 29 km (18 miles) to the north. The town is also connected to the national railway network with a fastest journey time to London Paddington of 2 hours 45 minutes. Exeter Airport is some 42 km (21 miles) to the north-east and serves a number of UK and European destinations.
Torquay forms part of the ‘English Riviera’ and is a popular tourist resort, attracting a large number of visitors each year. Situated on the South Devon Coast, the town is famous for its sandy beaches and family attractions. The population of Torquay is boosted significantly during the summer months.
The property is located on the western side of Fleet Street, one of the principal pedestrianised shopping streets in the heart of Torquay town centre. Nearby retailers include The Edinburgh Woollen Mill, Santander, William Hill (adjacent), Tesco Metro, Subway and Superdrug.
The Fleet Walk Shopping Centre is immediately to the south. Home to over 50 high street names together with a mix of specialist and independent shops, the centre also benefits from 414 car parking spaces. Retailers include Sportsdirect.com, Bonmarche, Starbucks, Greggs and TK Maxx.
Union Street, the prime retailing pitch for the town, is immediately to the north. Occupiers include Primark, H&M, River Island, WHSmith, JD Sports and Carphone Warehouse.
The property comprises a retail unit arranged over ground floor and basement. Internally, the retail floor area is predominately open plan with ancillary areas and has been fitted out by the tenant to their usual corporate style.
The upper floors, which are self-contained and accessible from Fleet Street, have been sold off on a long lease.
The property has been measured by BKR Floor Plans and provides the following Net Internal floor areas:
|Gross Frontage||4.93 metres||16’2”|
|Net Frontage||4.55 metres||14’11”|
|Zone A||27.68 sq m||298 sq ft|
|Zone B||27.31 sq m||294 sq ft|
|Zone C||19.32 sq m||208 sq ft|
|Remainder||0.19 sq m||2 sq ft|
|Total||74.51 sq m||802 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 located in the Torquay Harbour conservation area.
A new 999 year long leasehold interest at a peppercorn rent.
The ground floor and basement is let to Snappy Snaps Franchises Limited (t/a Snappy Snaps), on a full repairing and insuring lease for a term of 10 years from 24th June 2013, expiring on 23rd June 2023. The current passing rent is £17,000 per annum, payable monthly in advance.
In accordance with a Deed of Variation dated 16th November 2017, the rent has been reduced from £19,000 per annum and the tenant’s break option dated 23rd June 2018 removed from the lease. In return, the tenant has been granted an 8 month rent free period expiring on 15th July 2018. In order that a purchaser does not suffer an income shortfall the vendor will top up the rent on completion by way of an adjustment to the purchase price.
The upper floors have been let on a 199 year lease from 26th April 2017 at a peppercorn rent.
Snappy Snaps Franchises Limited (Co. No. 02632020) has reported the following figures:
|1st October 2016||26th September 2015|
Snapps Snaps was founded in 1983 and has become one of the leading UK franchises. It is the UK’s fourth largest photo service chain predominantly based in the South of England with 120 franchise stores.
In 2013 it became part of The Timpson Group, the UK’s leading retail service provider employing over 3,400 staff. For the year ending 1st October 2016, Timpson Group PLC reported a Turnover of £205,165,000, Pre-Tax Profits of £20,182,000 and Shareholders’ Funds of £53,440,000. For further information please visit www.timpson.co.uk.
The property has been registered for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
On completion the Buyer will become a shareholder and director of a Management Company and following the disposal of all four shop units comprised in the Seller’s title and the upper parts of the Property on long leases, the Seller will transfer the freehold reversion to such Management Company for the sum of £10.00.
We are instructed to seek offers in the region of £190,000 (One Hundred and Ninety Thousand Pounds), subject to contract, reflecting a net initial yield of 8.8%, assuming purchaser’s costs of 1.27%.
An opportunity to acquire a town centre retail investment;
The property occupies a prominent retailing pitch;
Let to Snappy Snaps Franchises Ltd, part of The Timpson Group (Shareholders’ Funds £53.4 million);
Approximately 5.5 years unexpired lease term;
The rent has been re-based;
Attractive lot size to an investor;
A purchase at the asking price reflects an attractive net initial yield.
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