High Yielding VAT-Free Retail Investment
288 High Street | Bangor | North Wales | LL57 1UL
subject to contract
VAT free investment
Let to Betfred
Tenant has committed to a new lease during COVID-19
New 10 year lease from March 2020; tenant break option March 2025
Prominent town centre retailing pitch
£300,000, subject to contract
9.7% Net Initial Yield
The Cathedral and University City of Bangor is located in North-West Wales, approximately 96 km (60 miles) west of Chester and 100 km (62 miles) north-west of Wrexham. The city is also within easy reach of Liverpool and Manchester.
The city benefits from good road communications, being served by the A5 and A55 which links with the M56 Motorway to the east. Bangor is also connected with to the national railway network with a fastest journey time to London Euston of 3 hours and 38 minutes.
Situated on the doorstep of the Snowdonia National Park and with beaches, areas of natural beauty and family attractions in close proximity Bangor is a popular tourist destination, particularly in the summer months.
Bangor University has over 10,000 students and contributes significantly to the local economy. According to its website it is ranked in the top 40 in the UK for research with the most recent National Student Survey (NSS 2019) results placing Bangor amongst the UK’s top 10 universities for student satisfaction.
The property is prominently located in the heart of the city centre, within the pedestrianised section of the High Street. Surrounding occupiers include KFC (adjacent), H&M, Costa, Boots, JD Sports and Barclays.
There is a large public car park immediatelty to the rear of the subject property.
The Deiniol Shopping Centre is within close proximity to the subject property. Comprising over 20 stores with 120 car parking spaces, retailers include Iceland, H Samuel, Carphone Warehouse, Vodafone, Specsavers, Vision Express, Subway and Timpson.
The property comprises a ground floor retail unit. Internally, the retail floor area has been fitted out by the tenant to their usual corporate style and is predominantly open plan with ancillary areas.
The upper floors have been comprehensively refurbished and comprise self-contained residential accommodation which has been sold off on a long lease.
The property has been measured by BKR Floor Plans and provides the following Net Internal floor areas:
|Net Frontage||5.94 m||19’6”|
|Gross Frontage||6.55 m||21’6”|
|Zone A||35.30 sq m||380 sq ft|
|Zone B||33.82 sq m||364 sq ft|
|Zone C||25.64 sq m||276 sq ft|
|Total||94.76 sq m||1,020 sq ft|
A set of floor plans is available to download and the measured survey report will be re-addressed to a purchaser at a cost of £213 + VAT.
The ground floor unit is let to Done Brothers (Cash Betting) Limited, t/a Betfred on a full repairing and insuring lease for a term of 10 years from 25th March 2020, expiring on 24th March 2030. There is a tenant’s break option on 24th March 2025, subject to six months’ prior written notice.
The current passing rent is £30,000 per annum. The lease benefits from an upwards only rent review on 25th March 2025.
The tenant has been in occupation since at least 2009 and entered into a lease renewal in June 2020, demonstrating their desire to remain in the property. The rent has been rebased from £35,000 per annum to £30,000 per annum.
The tenant currently benefits from a rent free period which expires on 1st October 2020. The vendor will “top-up” the income by an appropriate adjustment on the completion sum in order that a purchaser does not suffer an income shortfall.
The first and second floors have been let on a 999 year lease from 1st April 2011 at a peppercorn rent.
The tenant, Done Brothers (Cash Betting) Limited (Co. No. 01277703), has reported the following figures;
|30th September 2018||30th September 2017|
|Pre-Tax Profits (Loss)*||(£42,723,000)||£18,403,000|
*The accounts state that there were exceptional costs of £86.5 million in relation to an impairment following the Government’s decision to reduce the maximum stake on fixed odds betting terminal machines (FOBT’s) from £100 to £2. The impairment was presented as exceptional due to its material and one-off nature.
The ultimate parent company is Betfred Group Limited. For the year ending 30th September 2018 the company balance sheet reported Shareholders’ Funds of £113,015,000.
The company trades under the Betfred name. Fred Done and his brother Peter started the chain with a single betting shop in Salford in 1967 and have since built it into one of the largest businesses within the gambling industry. Betfred is now one of the biggest and most well-known brands on the high street with over 1,550 shops throughout the United Kingdom (as of January 2020).
The current name Betfred was established in 2004 after a rebranding from the original name; Done Bookmakers. In 2004, Betfred launched their digital platform Betfred.com and offer sports betting, online casino, online games, bingo, lotto, online poker and virtual sports. Betfred’s retail expansion continued in the coming years with shops opening up and down the country. Betfred reached a milestone in 2005 when its 500th shop opened its doors in Cardiff. In the same year, the company opened its first racecourse shop at local track Haydock Park on Merseyside.
In 2006 Betfred became official betting partner of Manchester United and the recently renovated Wembley Stadium. In 2013, the company established Betfred TV, an in-house channel that is available in all shops both on the high street and on the racecourse. This was the first of its kind in the UK.
Betfred is the leading sponsor of sporting events such as the Betfred World Snooker Championship, Betfred British Masters, Betfred World Matchplay and Betfred Super League.
The property has not been registered for VAT and therefore VAT is not applicable.
We are instructed to seek a figure of £300,000 (Three Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 9.7%, assuming standard purchaser’s costs of 3.3%.
Please note that a purchaser will be re-charged the costs of surveys and searches which are provided in the data room.
Please note that a purchaser will be charged a Transaction Fee of £5,000 plus VAT.
An opportunity to acquire a VAT-free investment;
The property occupies a prominent position in the town centre;
New letting at a re-based rent;
Let to Betfred, one of the largest and most recognised businesses within the gambling industry;
Betfred have been in occupation since at least 2009 and renewed their lease during COVID-19, demonstrating their commitment to the property;
A purchase at the asking price reflects an attractive net initial yield;
Attractive lot size to an investor.
Data Room and clicktopurchase®
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