High Yielding VAT-Free Retail Investment

2 & 3 Prince Street and 6 Cliff Street | Bridlington | East Yorkshire | YO15 2NH

£300,000

subject to contract

FOR SALE

Summary

  • VAT free investment

  • Established tenants including William Hill

  • William Hill have occupied for 30+ years and recently renewed their lease, demonstrating their commitment to the property

  • Prominent town centre retailing pitch

  • Freehold

  • £300,000, subject to contract

  • 11.24% Net Initial Yield

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Location

Bridlington is a seaside town in East Yorkshire, approximately 68 km (42 miles) north-east of York, 27 km (17 miles) south of Scarborough and 42 km (26 miles) north of Kingston upon Hull.

The town benefits from good road communications with the A614 providing direct access to the M62 Motorway approximately 64 km (40 miles) to the south-west. The A165 also links with Scarborough to the north and Hull to the south. Leeds Bradford International Airport is approximately 112 km (70 miles) to the west and the town is served by Bridlington Railway Station on the Yorkshire Coast Line that runs between Hull and Scarborough.

With award winning beaches, areas of natural beauty and family attractions, the town is a popular tourist seaside resort.

Situation

The subject property is situated in Bridlington town centre, approximately 0.8 km (0.5 miles) from the train station and in close proximity to Bridlington Harbour.

Nearby occupiers include Shoe Zone, H Samuel, Boots, Three and Subway.

The town is currently benefitting from a significant amount of regeneration.  One phase of these regeneration plans includes the re-landscaping of Bridlington sea-front.  In addition, the multi-million pound ‘Integrated Transport Plan’, funded by East Riding of Yorkshire Council and the Humber Local Enterprise Partnership, will improve vehicle and pedestrian access around the town centre and help support future development in the town.  For further information see here.

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Description

The property, which benefits from frontages to both Cliff Street and Prince Street, comprises three ground floor retail units. William Hill occupy the unit facing Cliff Street with the two other units facing Prince Street.

The upper floors comprise eight residential flats, self-contained and accessible from Cliff Street, which have been sold off on a long lease.

Accommodation

The property has been measured by BKR Floor Plans and provides the following Net Internal floor areas:

6 Cliff Street (William Hill)
Net Frontage 8.94m 29’4”
Gross Frontage 9.19m 30’2”
     
Zone A 53.14 sq m 572 sq ft
Zone B 51.84 sq m 558 sq ft
Zone C 2.04 sq m 22 sq ft
ITZA   857
Total 107.02 sq m 1,152 sq ft

 

2 Prince Street (Nathan Long)
Net Frontage 5.41m 17’9”
Gross Frontage 5.69m 18’8”
     
Zone A 31.12 sq m 335 sq ft
Zone B 32.05 sq m 345 sq ft
Zone C 50.63 sq m 545 sq ft
Remainder 10.03 sq m 108 sq ft
ITZA   657
Total 123.84 sq m 1,333 sq ft

 

3 Prince Street (Antonraja Marianathan)
Net Frontage 5.26m 17’3”
Gross Frontage 5.49m 18’0”
     
Zone A 32.05 sq m 345 sq ft
Zone B 16.63 sq m 179 sq ft
ITZA   434
Total 48.68 sq m 524 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 £575 + VAT.

Bridlington property retail investment YO15 2NH
Bridlington property retail investment YO15 2NH

Rateable Value

According to the Valuation Office website the rateable value for the property is as follows:

Address Description Rateable Value
6 Cliff Street Betting Shop & Premises £16,750
2 Prince Street Restaurant & Premises £13,750
3 Prince Street Shop & Premises £10,500

The business rate multiplier is 48.0 pence per pound for rateable values below £51,000.

Tenure

Freehold.

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Bridlington property retail investment YO15 2NH

Tenancies

6 Cliff Street – Ground Floor

Let to William Hill Organization Limited on a full repairing and insuring lease for a term of 10 years from 4th June 2018, expiring on 3rd June 2028. There is a tenant’s break option on 3rd June 2023, subject to 6 months’ prior notice. The current passing rent is £17,750 per annum. The lease benefits from an upwards only rent review on 4th June 2023.

The tenant has been in occupation since at least 1990 and entered into a lease renewal in 2018, demonstrating their desire to remain in the property.

2 Prince Street – Ground Floor

Let to Nathan Long (t/a Mighty Lancer Games) on a full repairing and insuring lease for a term of 5 years from 1st June 2018, expiring on 31st May 2023. There is a tenant’s break option on 1st June 2020, subject to 6 months’ prior notice. The current passing rent £7,000 per annum. The lease benefits from an upwards only rent review on 1st June 2020.

3 Prince Street – Ground Floor

Let to Antonraja Marianathan (t/a P&P Newsagents) on a full repairing and insuring lease for a term of 15 years from 10th July 2018, expiring on 24th March 2033 (in excess of 13.75 years unexpired). The current passing rent £10,000 per annum. The lease benefits from 5 yearly upwards only rent reviews.

The basement and four upper floors are let on a 125 year lease from 29th September 2002 at an annual ground rent of £90.00 per annum, increasing to £225.00 per annum in 2052.  This Head Lease has been transferred in part to Harbour Flats (Bridlington) Management Company Limited and to Prince Street Flats (Bridlington) Management Company Limited.

Therefore, an investor will benefit from a total income of £34,840 per annum.

Covenant

William Hill Organization Limited is a subsidiary of William Hill PLC. Founded in 1934, William Hill is one of the worlds’ leading betting and gaming companies. Employing more than 15,500 people in twelve countries, it is the UK’s largest land-based bookmaker with 2,319 licensed betting shops in the UK. For the year ending 1st January 2019 the company reported Net Assets of £298.9 million.

William Hill Organization Limited (Co. No. 278208) has reported the following figures:

  26th December 2017 27th December 2016
Revenue £897.9 million £879.0 million
Pre-Tax Profits (Loss) (£230.4 million) £231.7 million

The Company has net liabilities of £126.4 million at 26th December 2017. The reason for the Company moving to a net liability position is due to an exceptional £332.7m impairment charge of the investments in the Company’s Australian subsidiaries. The Company has since sold its business in Australia to CrownBet for £176 million.

For further information, please visit www.williamhillplc.com.

Nathan Long (t/a Mighty Lancer Games) is an established local tenant who has operated in Bridlington for many years. Antonraja Marianathan (t/a P&P Newsagents) is also an established tenant who has two stores in Bridlington.

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Bridlington property retail investment YO15 2NH

VAT

The property has been not registered for VAT and therefore VAT is not applicable.

Proposal

We are instructed to seek a figure of £300,000 (Three Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 11.24%, 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 £2,500 plus VAT.

Bridlington property retail investment YO15 2NH
Bridlington property retail investment YO15 2NH

Investment Considerations

  1. An opportunity to acquire a freehold retail investment;

  2. The property occupies a prominent position in the town centre;

  3. VAT free investment;

  4. Established tenants including William Hill;

  5. William Hill have been in occupation for 30+ years and renewed their lease last year, demonstrating their commitment to the property;

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

  7. Attractive lot size to an investor.

Data Room and clicktopurchase®

Access to the data room and for the ability to purchase online with speed and ease, please click the clicktopurchase® “C” 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®, click here.

Finance

We have partnered with a leading finance adviser to provide loan services. To learn more, please visit our “Finance” section.

finance

Contact Us

Singer Vielle   +44 (0) 207 935 7200
Dale Henry dale@singervielle.co.uk +44 (0) 203 701 1356
Neil Singer neil@singervielle.co.uk +44 (0) 203 478 9120
Daniel Elia daniel@singervielle.co.uk +44 (0) 203 701 1353

Vendors Solicitor

Yugin & Partners    
Michele Marrafino mm@yuginlaw.com +44 (0) 208 954 2410
customer service