Attractive Newly-constructed Retail Investment
FatFace | 71 Sycamore Road | Amersham | HP6 5EQ
subject to contract
The property is sold with the benefit of a 12 month rent guarantee from the vendor to ensure an investor has no issues receiving income in light of the Coronavirus Act 2020 Part 1 Section 82. This is no reflection upon the tenants ability to meet their rental obligations but an understandable protection for a purchaser.
Highly affluent town within the London commuter belt
Prominent retailing pitch
Part of new commercial and residential development
Main shoppers’ car park immediately to the rear
Lease expiring October 2028; tenant break option May 2025
Let to Fat Face
Open to offers, guiding £700,000, subject to contract, reflecting 9.2% net initial yield
Guide price represents a significant discount to the capital value sale figure recently achieved on the adjoining retail unit
The property is sold with the benefit of a 12 month rent guarantee from the vendor to ensure an investor has no issues receiving income in light of the Coronavirus Act 2020 Part 1 Section 82
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 1” 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 Boots Opticians 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||10.29 m||33ft 9 inches|
|Return Frontage||18.57 m||60 ft 11 inches|
|Built Width||9.55 m||31 ft 4 inches|
|Built Depth||21.65 m||71 ft 0 inches|
|Ground Floor Net Internal Area||205.25 sq m||2,209.29 sq ft|
|ITZA (10% allowance for return)||1252.07|
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 £935 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 £3,794
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 Fat Face Limited for a term of 10 years from 29th October 2018, expiring on 28th October 2028, subject to a tenant’s break option on 14th May 2025.
By way of a Deed of Variation dated 14th May 2020, the rent of £67,500 per annum has been reduced for six months from 1st April 2020 to £33,750 per annum and the tenant’s break option on 29th October 2023 has been moved to 14th May 2025.
The “headline” rent of £67,500 per annum equates to £53 Zone A. The lease benefits from five yearly upwards only rent reviews, the next being on 29th October 2023. As part of the original letting, the tenant benefitted from a 12 month rent free period and a £30,000 contribution to the shop-fitting costs. The rent is paid monthly.
The Deed of Variation also provided for advance service charge payments for the period March 2020 to June 2020 to be reduced by 50%.
The vendor will “top-up” the income so a purchaser effectively receives income at £67,500 per annum from the date of purchase.
Fat Face Limited (Co. No 02954734) has reported the following figures:
|2nd June 2018||3rd June 2017|
It should be noted that FatFace’s latest accounts are overdue. We have been advised by the company directly that this is the result of a delay in the completion of an agreed re-financing so this information can be included in the published accounts.
Established in 1988, FatFace is one of the UK’s most recognised multi-channel retail brands stocking a wide range of womenswear, menswear, childrenswear, footwear, and accessories, designed in-house at their headquarters in Havant, Hampshire.
There are currently over 230 FatFace stores in the UK, Ireland and the USA – located in market towns, holiday locations, high street shopping centres and high footfall travel hubs.
For further information please visit www.fatface.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 open to offers, guiding a figure of £700,000 (Seven Hundred Thousand Pounds, subject to contract, reflecting a net initial yield of 9.2%, after allowing for standard purchaser’s costs of 5.81%.
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.
The adjoining property let to Boots Opticians was sold in November 2019. Let until May 2029 with a tenant break option in May 2024 (4.5 years hence), the property was sold at £830,000 reflecting a net initial yield of 6.56% and a £413 per sq ft. In comparison, the guide price for the FatFace unit is £317 per sq ft, a 23% discount to the sale price achieved on the Boots Opticians unit.
An opportunity to acquire a retail investment in a highly affluent town within the London commuter belt;
Let to the secure covenant of Fat Face Limited (Net Assets £156 million);
The property occupies a prominent retailing pitch in front of the main shoppers’ car park;
The property forms part of a prestigious new commercial and residential development;
An unexpired lease term of just under 8.5 years and a tenant break option in May 2025;
A purchase at the asking price reflects an attractive net initial yield and capital value at a discount to the sale price achieved recently on the adjoining shop unit;
Attractive lot size for an investor.
Data Room and clicktopurchase® "Best Offers" 3:00 pm June 30th 2020
Access to the data room and for the ability to purchase online with speed and ease, please click the clicktopurchase® icon or the clicktopurchase® side bar. Purchasers will be able to access the complete legal package, clear verification and submit legally-binding offers to acquire the property.
Purchasers benefit from the trust, security and transparency provided by the platform. All activities, including the online contract execution, will form part of the electronic audit trail which is anchored in the clicktopurchase® Blockchain.
clicktopurchase® provides the opportunity for any investor, whether located UK or abroad, to uniquely purchase online with ease and certainty. To learn more about clicktopurchase®, view clicktopurchase guides where ample videos and guides are available.
Note: offers submitted by clicktopurchase® are legal offers to treat. Should our client instruct us to accept the highest offer, an exchange of contracts will occur. In order to be able to submit an offer, you need to be provided with clearance to do so. Therefore, please note that interested parties should clear the verification process as soon as possible, regardless as to whether you choose to submit an offer. Please do not leave this to the last minute as this may prevent you from being able to submit your proposal.
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