Attractive Freehold Investment Let to Bank of Scotland Plc - 9%

117-119 The Parade | Sutton Coldfield | Birmingham | B72 1PU

£875,000

subject to contract

FOR SALE

Summary

  • VAT Free investment

  • Highly secure income – let to Bank of Scotland

  • Prominent town centre position

  • Property benefits from car parking to the rear

  • Freehold

  • Offers in excess of £875,000, subject to contract

  • 9.00% net initial yield

  • The property occupies a substantial site – see photo gallery

  • Capital value of approx.. £135 per sq ft / £1,445 per sq m

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Location

The Royal Town of Sutton Coldfield is a sought after suburb in Birmingham. Initial plans for a £500 million redevelopment of the town centre were revealed by the council in November 2018. The plans detail a £35 million investment into new infrastructure, a proportion of which is presumed to be a £20 million transport hub, funded by the HS2 development. This will link bus and rail passengers directly to the town centre.

Sutton Coldfield is located in close proximity to the A38, A452, M6, M42 and M6 Toll. The town is approximately 115 miles (185 km) north west of London, 8 miles (12.8 km) north east of Birmingham, 40 miles (64.4 km) south west of Nottingham and 75 miles (120.7 km) south of Manchester. The town is also connected to the National Railway Network with Sutton Coldfield providing a fastest journey time to London’s Euston of approximately 2 hours.

The town is located approximately 10 miles (16 km) north west of Birmingham Airport, 23 miles (37 km) north west of Coventry Airport and 30 miles (48.3 km) south west of East Midlands airport.

Sutton Coldfield is characterised by relatively high levels of household income, low levels of unemployment and good levels of education attainment. https://www.suttoncoldfieldtowncouncil.gov.uk/discover-sutton-coldfield/

Situation

The property is prominently located in the heart of the town centre on the eastern side of The Parade and by the roundabout which links Queen Street, Manor Road, Brassington Avenue and Birmingham Road.

Nearby occupiers include Scrivens Opticians (adjacent), Pizza Express, Betfred, Yates, ASK Italian, William Hill and Oxfam. Other high street banks in close proximity include, Bank of Cyprus, Lloyds, RBS, Barclays and NatWest.

The property benefits from being adjacent to both the Gracechurch Shopping Centre and Newhall Walk Retail Park. Occupiers within the Gracechurch Centre include Boots, Ernest Jones, Clarks, EE, H&M, Holland & Barrett, JD Sports, Pandora, Swarovski, WHSmith, Café Nero, Greggs, Costa, Nandos and Superdrug. Retailers within Newhall Walk include TK Maxx, Aldi and TGI Fridays.

Sutton Coldfield station is located just 0.4 miles (0.64 km) from the property.

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Description

The property is an attractive 2 storey double fronted building with an ATM on the exterior. The banking hall is arranged over ground floor with office and ancillary accommodation on the first and second floors.

There is a service road and car parking to the rear of the property.

Accommodation

We are advised that the property provides the following approximate floor areas.

Floor Use Sq.M. Sq.Ft.
Ground Banking Hall / Ancillary 293.11 3,155
First Offices / Ancillary 280.10 3,015
Second Ancillary (restricted access) 31.96 344
Total   605.17 6,514

 

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Planning

The property is not listed and is not within a Conservation Area.

Tenure

Freehold

A Deed dated 17th June 1986 grants rights for the benefit of the property to use car parking spaces on the service road to the rear.

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Tenancy

The property is let to Bank of Scotland Plc t/a Halifax Bank on a full repairing and insuring basis for a term of 15 years from 14th November 2007, expiring 13th November 2022.

The passing rent is £83,000 per annum.

The tenant benefits from designated car parking to the rear of the property.

Covenant

Bank of Scotland Plc t/a Halifax Bank (Company No. SC327000) has reported the following figures:

  31st December 2017 31st December 2016
Total Income £6,893 million £7,254 million
Pre-Tax Profit £2,804 million £3,395 million
Total Assets £376,575 million £359,340 million

Bank of Scotland Plc is a wholly owned subsidiary of Lloyds Banking Group Plc which operates under Halifax, Lloyds Bank and Bank of Scotland. For the year ending 31st December 2017, Lloyds Banking Group Plc reported a profit before tax of £5,275,000,000 and a net worth of £43,998,000,000. For further information visit www.lloydsbankinggroup.com.

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VAT

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

Proposal

We are instructed to seek offers in excess of £875,000 (Eight Hundred and Seventy Five Thousand Pounds), subject to contract, reflecting a net initial yield of 9.00%, assuming purchasers’ costs of 5.60%.
Please note that a purchaser will be re-charged the costs of searches which are provided in the data room.

Please note a purchaser will be charged a transaction fee of £5,000 + VAT.

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Investment Considerations

  1. The investment provides highly secure income – let to Bank of Scotland Plc;

  2. The property occupies a substantial town centre site.

  3. VAT free investment;

  4. Benefit of car parking to the rear of the property;

  5. Prominently located in the heart of Sutton Coldfield town centre;

  6. Located just 0.4 miles from Sutton Coldfield station;

  7. Attractive net initial yield;

  8. Attractive lot size to an investor.

Contact Us

Singer Vielle   +44 (0) 207 935 7200
Daniel Elia daniel@singervielle.co.uk +44 (0) 203 701 1353
Dale Henry dale@singervielle.co.uk +44 (0) 203 701 1356
Neil Singer neil@singervielle.co.uk +44 (0) 203 478 9120
Faye Langoulant faye@singervielle.co.uk +44 (0) 203 478 9122
Louanne Malan louanne@singervielle.co.uk +44 (0) 203 701 1386

Vendors Solicitor

Paschalis Law +44 (0) 330 311 2910
Costas Paschalis costas@paschalislaw.com
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