Attractive Newly-constructed Retail Investment Let to Boots Opticians
69 Sycamore Road | Amersham | HP6 5EQ
subject to contract
Highly affluent town within the London commuter belt
Prominent retailing pitch
Part of new commercial and residential development
Main shopper’s car park immediately to the rear
Let to Boots Opticians – Net Assets £150 million
£905,000, subject to contract
6.0% net initial yield
Amersham is an affluent town which forms part of the London commuter belt. It is situated approximately 45 km (28 miles) north-west of Central London, 18 km (11 miles) east of Watford and 13 km (8 miles) north-east of High Wycombe.
The town benefits from good road communications being served by the A413 which provides direct access to the M25 Motorway approximately 13 km (8 miles) to the south-east. The M40 Motorway is approximately 9.6 km (6 miles) to the south. The town is also connected to the national railway network with direct services into London Marylebone with a fastest journey time of 30 minutes. London Underground Metropolitan Line trains run direct from Aldgate to Amersham, via Baker Street, with a journey time of approximately 50 minutes.
Heathrow Airport is approximately 29 km (18 miles) to the south and Luton Airport is 35 km (22 miles) to the north-east.
The property comprises part of the new Regent Place development, occupying a prominent, retail pitch on Sycamore Road in the heart of Amersham town centre. Amersham railway station is 0.3 km (0.2 miles) to the south. Nearby occupiers include Superdrug, Waterstones, little Waitrose, Marks & Spencer, Holland & Barrett, Greggs, WH Smith and Caffe Nero.
The Sycamore Road car park, a large 265 space public car park, is situated immediately to the rear of the subject property. Access to Sycamore Road from the car park runs immediately adjacent to Regent Place.
The property comprises “Retail Unit 2” within the new Regent Place development, a recently completed scheme of three retail units on ground floor plus 36 highly specified studio, one and two bedroom apartments on the upper floors, along with a basement car park. The first new build in Amersham for over 15 years, Regent Place is a new landmark in the town. www.regentplaceamersham.com.
The property comprises a retail unit on ground floor which has been fitted out by the tenant to their usual corporate style. The adjoining units in Regent Place have recently been let to FatFace and Gatsby & Miller hairdressers.
Architect plans are provided within the data room from which we calculate the property to provide the following areas.
|Gross Frontage||10.01 m||32 ft 10 inches|
|Built Width||9.55 m||31 ft 4 inches|
|Built Depth||19.70||64 ft 7 inches|
|Ground Floor Net Internal Area||186.74 sq m||2,010.05 sq ft|
The property is held on a 999 year leasehold at a peppercorn, with obligations to pay a fair proportion of the service charge and building insurance.
The current cost of building insurance for Regent Place is £14.620 . The long leaseholder’s share of this costs is £851 which is included in the total service charge detailed below. The service charge estimate for the year ending 31st December 2019 is £82,209 including the building insurance . The long leaseholder’s share is anticipated to be £3,452
Note that the costs of insurance and service charge are passed to the occupying tenant. Details of the insurance and service charge are held within the data room.
It should also be noted that the freeholder benefits from a latent defects insurance policy and construction warranties, providing full comfort in respect of the freeholder’s obligations.
The ground floor is let on an effective Full Repairing and Insuring lease to Boots Opticians Professional Services Limited (t/a Boots Opticians) for a term of 10 years from 15th May 2019, expiring on 14th May 2029 (in excess of 9.5 years unexpired). The lease incorporates a tenant’s break option on 15th May 2024.
The current rent is £57,500 per annum (equating to £52 Zone A). The lease benefits from five yearly upwards only rent reviews, the next being on 15th May 2024. As part of the letting, the tenant benefits from an 18 month rent free period, hence expiring 15th November 2020. The vendor will “top-up” the rent-free period by an appropriate deduction on completion to ensure that an investor does not suffer an income shortfall.
Boots Opticians re-located to the property from another location within Amersham town centre.
Boots Opticians Professional Services Limited (Co. No 6779221) has reported the following figures:
|31st August 2018||31st August 2017|
Boots Opticians is one of the leading opticians in the UK with 618 practices of which around 167 operate on a franchise basis (figures as of 31st August 2018). In 2013, it became the first multiple optician in the UK to include digital retinal photography as a standard element of its eye test for customers of all ages.
Established over 165 years ago and a household name, Boots is the UK’s largest pharmacy-led health and beauty chain. As of August 2018, the company had 2,485 stores, 618 Boots Opticians practices and 503 Boots Hearingcare locations. Boots employs around 56,000 people and over 90% of the UK population is within 10 minutes of one of its stores. Boots is part of the Retail Pharmacy International Division of Walgreens Boots Alliance, the largest retail pharmacy, health and daily living destination across the U.S. and Europe. For further information visit www.boots-uk.com.
The property has been elected for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
Our client is seeking a figure of £905,000 (Nine Hundred and Five Thousand Pounds), subject to contract, reflecting a net initial yield of 6.0%, after allowing for standard purchaser’s costs of 5.64%.
Please note that a purchaser will be re-charged the cost of the searches which are provided in the data room.
Please note a purchaser will be charged a Transaction Fee of £5,000 plus VAT.
An opportunity to acquire a retail investment in a highly affluent town within the London commuter belt;
Let to the secure covenant of Boots Opticians (Net Assets £150 million);
The property occupies a prominent retailing pitch in front of the main shopper’s car park;
The property forms part of a prestigious new commercial and residential development;
A purchase at the asking price reflects an attractive net initial yield;
Attractive lot size for an investor.
Data Room and clicktopurchase®
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