Highly Secure, Attractive City Centre Investment in Major Tourist Destination

6 King’s Square | York | YO1 8BH

£575,000

subject to contract

EXCHANGED

Summary

  • Highly secure income “Millie’s Cookies”

  • Covenant - Pre-Tax Profits £72.3m, Net Assets £428m

  • Located in the cathedral city of York, a major tourist destination

  • Prominent retailing position in the heart of the city centre

  • Tenant in occupation since 1986

  • Freehold

  • £575,000 plus VAT, subject to contract

  • 5.5% net initial yield

Location

York is located approximately 314 km (195 miles) north of London, 290 km (180 miles) south of Edinburgh, 40 km (25 miles) north east of Leeds, 105 km (65 miles) north east of Manchester and 35 km (22 miles) east of Harrogate.

The City benefits from good road communications, being situated approximately 21 km (13 miles) south east of Junctions 44, 45, 46 and 47 of the A1(M), accessed via the A19, A154 and the A64. The A1 (M) provides further access to the M1 and M62 motorways.

The City is connected to the national railway network with a fastest journey time to London Kings Cross of approximately 1 hour 45 minutes. Leeds / Bradford International Airport is situated approximately 38 km (24 miles) to the south west.

York is a highly popular tourist destination and a historic cathedral city located on the Ouse and Foss rivers, reportedly founded by the Romans in the first century AD, then taken over by the Vikings. The city has played a key role throughout British history. York is reportedly one of the UK’s most popular tourist towns, boasting numerous attractions including York Minster, Yorkshire Museum, York Castle Museum, York City Walls, the Jorvik Viking Centre, Betty’s Tea Rooms, the National Railway Museum, York Art Gallery and York’s Chocolate Story.

Situation

King’s Square is located in the heart of York City Centre, close to one end of one of the city’s most famous streets, the York Shambles. York railway station is less than 1.6 km (1 mile) to the south-west.
King’s Square is home to York’s Chocolate Story, one of the city’s main tourist attractions, contributing to the heavy pedestrian flow through the square.

The subject property occupies a prominent retail trading position on the southern side of the part-pedestrianised King’s Square, alongside York’s Chocolate Story. Nearby retailers include Boots, Caffe Nero, Ladbrokes, Tesco, Wagamama and Reiss.

Description

The property comprises a three storey Grade II Listed mid-terraced retail unit. Internally, the accommodation is arranged as retail and food preparation space on the ground floor with storage/ancillary space on first floor and toilets on the second floor.

Access to the premises is provided directly from the partly pedestrianised King’s Square. Access to the rear of the property is via a shared passageway, also accessible from King’s Square.

Planning

The property is Grade II Listed and located within Character Area 10 ‘Medieval Streets’ of the York Central Historic Core Conservation Area.

Accommodation

The property has been measured by BKR Floor Plans and provides the following net internal floor areas;

  Sq m  Sq ft
Zone A 21.83  235
Zone B 20.72 223
Total Retail 42.55 458
ITZA   347
Ground Floor Total 42.55 458
First Floor 42.46 457
Second Floor 9.57 103
TOTAL 94.98 1,017


The measured survey report is available to download and will be assigned to a purchaser at a cost of £325 + VAT.

Site

A Desktop Phase 1 Environmental Audit was undertaken by Malcolm Hollis in March 2018 which concluded that “there is a low risk of the site, in its current use, attracting attention of the regulatory authorities or being identified as representing a significant risk to site users or to other receptors due to contamination”. A copy of this report is available to download.

Tenure

Freehold.

Tenancy

The property is let to Select Service Partner UK Limited (t/a Millie’s Cookies) on a full repairing and insuring lease for a term of 5 years from 1st April 2017, expiring on 31st March 2022.

The current passing rent is £33,500 per annum, equating to £89 Zone A.

The tenant has been in occupation since 1986.

Covenant

Select Service Partner UK Limited (Co. No. 05687183) has reported the following figures:

  2017  2016
Turnover: £684,882,000 £657,890,000
Pre Tax Profit: £72,322,000 £56,921,000
Net Assets: £428,247,000 £412,818,000


Select Service Partners UK Limited is a wholly owned subsidiary of SSP Financing Limited, which itself is a wholly owned subsidiary of SSP Group PLC.

SSP Group PLC (Co. No. 05735966) has reported the following figures:

  2017 2016
Turnover: £2,379,100,000 £1,990,300,000
Pre Tax Profit: £144,800,000 £105,600,000
Net Assets: £465,000,000 £382,700,000


SSP Group PLC specialises in the operating of food and beverage travel concession businesses. According to their website, the group employ approximately 35,000 staff, have over 450 different brands in their portfolio and are reportedly a leading operator, active throughout 30 different countries across the Europe, North America, the Middle, the Far East and Australia. In the UK, SSP operates over 600 retail and catering outlets at 20 airports and 115 rail stations. In its portfolio are brands including M&S Simply Food, Starbucks, Burger King, as well as its own names such as Upper Crust and Millie’s Cookies. For further details please visit: https://www.foodtravelexperts.com/international/

VAT

The property has been registered for VAT. VAT will be payable on the purchase price.

Proposal

We are instructed to seek offers in the region of £575,000 (Five Hundred and Seventy Five Thousand Pounds) plus VAT, subject to contract, reflecting a net initial yield of 5.50%, assuming purchaser’s costs of 5.97%.

Please note that a purchaser will be re-charged the costs of searches which are provided in the data room.

Please note a purchaser will be charged a transaction fee of £2,000 + VAT.

Investment Considerations

  1. An opportunity to acquire an attractive freehold city centre investment;

  2. Located in the Cathedral city of York, a major tourist destination;

  3. Let to the highly secure covenant of Select Service Partners UK Limited (Pre-Tax Profits £72.3 million, Net Assets £428 million);

  4. The property occupies a highly prominent trading location in the heart of the city centre;

  5. The rent of £89 Zone A is at a significant discount to prime rents in York which we understand are in the region of £170 - £180 Zone A;

  6. Attractive lot size to an investor;

  7. A purchase at the asking price reflects an attractive net initial yield.

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

Greenberg Traurig LLP +44 (0) 203 349 8700
Ashia Danga dangaa@gtlaw.com
customer service