Prime High Yielding Retail Investment
3 Highgate | Kendal | LA9 4EJ
subject to contract
Kendal is a popular Lake District market town
Located in a prime retailing pitch
Let to the secure covenant of Savers Health & Beauty Ltd
Pre-Tax Profits £49 million
Passing rent equates to £43.50 Zone A with recent nearby letting evidence at £70.00 Zone A
£545,000, subject to contract
8.0% net initial yield
Kendal is an attractive market town situated on the edge of the Lake District and known as the gateway to the Lakes being situated approximately 32 km (20 miles) north of Lancaster, 53 km (33 miles) north-east of Barrow in Furness and 75 km (47 miles) south of Carlisle.
Kendal benefits from good road communication being situated 9.6 km (6 miles) west of Junction 37 of the M6 Motorway. The town is served by the A65 from North Yorkshire to South, the A591 from Barrow to Ulverston to the North and the A685 from Appleby to the North East. Oxenholme Train Station which is situated on the West Coast main railway line is located 4.8 km (3 miles) to the south-east, providing direct services to London Euston (2 hours 50 minutes) and Glasgow (1 hour 50 minutes).
The town is the third largest settlement in Cumbria, the administrative centre for South Lakeland District Council and a popular centre for tourism.
The property occupies a prime position on the eastern side of Highgate, one of the principal retail locations within the town centre, close to its junction with Finkle Street. Nearby occupiers include Mountain Warehouse, Tesco Express, Phase Eight, TK Maxx, Fat Face, Pavers, Barclays and Halifax.
The property comprises a retail unit on ground and part first floor which has been fitted out by the tenant to their usual corporate style and is predominantly open plan.
The upper floors comprise residential accommodation on part first, second and third floors which have been sold off on a long lease.
The property has been measured by BKR Floor Plans and provides the following Net Internal Areas:
|Gross Frontage||9.47 m||31’ 1”|
|Net Frontage||7.98 m||26’ 2”|
|Zone A||49.61 sq m||534 sq ft|
|Zone B||51.28 sq m||552 sq ft|
|Zone C||40.88 sq m||440 sq ft|
|Remainder||83.05 sq m||894 sq ft|
|Total Ground Floor||224.82 sq m||2,420 sq ft|
|First Floor||31.96 sq m||344 sq ft|
|Total||256.78 sq m||2,764 sq ft|
A set of floor plans are available to download and the measured survey report will be re-addressed to a purchaser at a cost of £495 + VAT.
According to the Valuation Office website the rateable value for the property is as follows:
|3 Highgate, Kendal||Shop and premises||£41,500|
The business rate multiplier is 49.1 pence per pound.
The ground floor and part first floor is let on a Full Repairing and Insuring lease to Savers Health and Beauty Limited for a term of 10 years from 12th June 2017, expiring on 11th June 2027. There is a tenant’s break option on 12th June 2022, subject to six months’ notice.
The current passing rent is £46,000 per annum which, based on our analysis, equates to £43.50 Zone A. The lease benefits from five yearly upwards only rent reviews, the next being on 12th June 2022.
The part first, second and third floors are let on a 999 year lease from 16th July 2010 at a peppercorn rent.
The current passing rent of £46,000 per annum equates to £43.50 Zone A. There is a shortage of available retail units in Kendal town centre and we are aware of the following evidence:
8 Highgate – in close proximity to the subject property, a ground floor retail unit with a net sales area of 736 sq ft, an ITZA of 583 sq ft plus 741 sq ft ancillary accommodation on first floor. Let to Greggs on a 10 year lease from April 2019, subject to a tenant break option at year 5, and a six month rent free period. The passing rent is £42,500 per annum equating to £70.00 Zone A.
Savers Health and Beauty Limited (Co. No 02202838) has reported the following figures:
|29th December 2018||30th December 2017|
Savers is a leading health, home and beauty retailer, currently trading from over 460 stores. The company is part of the A.S. Watson Group which also includes Superdrug Stores Plc and The Perfume Shop in the UK.
Savers was voted 4th in The Sunday Times Best Big Companies to work for 2019.
For further information visit www.savers.co.uk.
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 £545,000 (Five Hundred and Forty Five Thousand Pounds), subject to contract, reflecting a net initial yield of 8.0%, after allowing for standard purchaser’s costs of 4.87%.
Please note that a purchaser will be re-charged the cost of the searches and surveys which are provided in the data room.
Please note a purchaser will be charged a Transaction Fee of 1% of the Purchase Price plus VAT.
An opportunity to acquire a freehold retail investment in a popular Lake District market town;
Let to the secure covenant of Savers Health & Beauty Limited (Pre-Tax Profits £49m);
The property occupies a 100% prime retailing pitch;
The current passing rent equates to £43.50 Zone A with recent letting evidence in close proximity to the subject property at £70.00 Zone A
A purchase at the asking price reflects an attractive net initial yield;
Attractive lot size for an investor.
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