High Yielding Leisure/Office Investment

Station House | New Hall Hey Road | Rawtenstall | Lancashire | BB4 6AJ

£900,000

subject to contract

FOR SALE

Summary

  • Attractive leisure / office investment

  • Let to an established tenant

  • Approximately 8.75 years unexpired lease term

  • Well located next to New Hall Hey Retail Park

  • Freehold

  • £900,000, subject to contract

  • 11.6% net initial yield

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Location

Rawtenstall is a town at the centre of the picturesque Rossendale Valley in Lancashire. The town lies 31 km (19 miles) north of Manchester, 32 km (20 miles) east of Preston,18 km (11 miles) north-east of Bolton and 15 km (9 miles) south-east of Blackburn.

The town benefits from good road communications being served by the A56 which links directly with the M65 Motorway 13 km (8 miles) to the north and the M66 Motorway approximately 8 km (5 miles) to the south. Manchester Airport is approximately 55 km (34 miles) to the south.

Rawtenstall is benefitting from a significant amount of regeneration with a scheme to radically redesign the town centre currently underway. Initial works for the £5.5 million Spinning Point development, which will transform the former Valley Centre, have already been completed. The Town Hall has been renovated and reopened as office space and works planned for the future are a new bus station and a possible new leisure development with a hotel, spa and retail space.

In November 2018 it was reported that Rawtenstall recorded the UK’s fifth highest rise in house prices.

Situation

The subject property occupies a prominent position on New Hall Hey Road which is accessed via Bury Road. The A682 is immediately adjacent.

The property is adjacent to a Ford car showroom and in close proximity to the New Hall Hey Retail Park where occupiers include Marks & Spencer, Iceland, TK Maxx, Pets at Home, Aldi, Home Bargains, Card Factory, Dominos and Costa. Other surrounding occupiers include Tesco and McDonald’s.

The property benefits from being adjacent to a large car park.

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Description

The property comprises a detached stone built building with a pitched slate roof and comprises a self-contained restaurant and bar on the ground and first floor with multi-let offices on the second and third floors. The office suites on the upper floors have their own separate access and have been refurbished to a good standard throughout and include shared kitchen and WC facilities.

The ground and first floor restaurant & bar is occupied by The Village Stores (Helmshore) Ltd. t/a The Firepit Restaurant who has been trading from this location since 2014. The upper floor office suites have been sub-let.

Accommodation

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

Gross Internal Area    
Ground Floor Restaurant 341.59 sq m 3,677 sq ft
First Floor Bar 301.09 sq m 3,241 sq ft
Second Floor Offices 298.02 sq m 3,208 sq ft
Third Floor Offices 95.50 sq m 1,028 sq ft
Total 1036.21 sq m 11,154 sq ft

 

Net Internal Area    
Ground Floor Restaurant 281.58 sq m 3,031 sq ft
First Floor Bar 208.93 sq m 2,249 sq ft
Second Floor Offices 178.28 sq m 1,919 sq ft
Third Floor Offices 82.31 sq m 886 sq ft
Total 751.10 sq m 8,085 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 £395 + VAT.

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Planning

The property is not a Listed building. It is within the Rawtenstall Town Centre Conservation Area.

Tenure

Freehold.

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Tenancy

The property is entirely let to The Village Stores (Helmshore) Ltd (t/a The Firepit Restaurant) on a Full Repairing and Insuring lease for a term of 10 years from 1st March 2018, expiring on 28th February 2028 (approximately 8.75 years unexpired lease term).

The lease is personally guaranteed by Clare Louise Novak and the Landlord holds a rent deposit of £27,500.

The current passing rent is £110,000 per annum (£9.86 per sq ft / £106 per sq m) and is subject to three yearly upward only rent reviews, the next being on 1st March 2021.

The upper floor office suites have been sub-let.

The permitted use is as a restaurant and drinking establishment within Use Class A3 and/or A4 on the ground and first floors of the building and use as offices within Use Class B1 on the second and third floors of the building.

Covenant

The Firepit is a family business with restaurants in Rawtenstall and Southport. The lease is personally guaranteed by the Director, Claire Louse Novak. The Landlord also holds a £27,500 rent deposit. For further information see www.thefirepitrestaurant.co.uk.

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VAT

The property has been registered for VAT. It is anticipated that the transaction will be treated as a Transfer of a Going Concern (TOGC).

Proposal

We are instructed to seek a figure of £900,000 (Nine Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 11.6%, assuming purchaser’s costs of 5.63%.

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 £3,750 + VAT.

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Investment Considerations

  1. An opportunity to acquire a freehold leisure / office investment;

  2. The property benefits from an unexpired lease term of approximately 8.75 years;

  3. The property is let to an established tenant;

  4. The property is well located in the attractive Lancashire town of Rawtenstall;

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

  6. 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

Hurtwood Holdings   
Alvin Pinder alvin.pinder@hurstwoodholdings.com +44 (0) 161 220 1999
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