Secure Town Centre VAT Free Retail Investment – New 5 year lease

40 High Street | Weston-super-Mare | Somerset | BS23 1JA

£317,500

subject to contract

FOR SALE

Summary

  • Freehold retail investment

  • Prime retailing pitch

  • Let to Shoe Zone Retail Ltd

  • New 5 year lease at a rebased rent

  • Highly secure income – Turnover of £160.6 million

  • Offers in the region of £317,500, subject to contract

  • 7% net initial yield

weston-super-mare_somerset_property_investment_bs23_1ja_-_3132.2

Location

Weston-Super-Mare is a tourist destination and is the biggest seaside location on the Somerset Coast. Attractions include its long sandy beach, The Weston-Super-Mare Museum, The Grand Pier, SeaQaurium aquarium and the Wheel of Weston.

Weston-Super-Mare is located approximately 23 miles (37 km) south west of Bristol, 25 miles (40 km) north west of Glastonbury and 135 miles (217 km) west of Central London. The town is located approximately 4 miles (6.44 km) from Junction 21 of the M5 Motorway which provides a direct route to Birmingham (north) and to Exeter (south).

The town is also connected to the National Railway Network with Weston-Super-Mare Station providing a fastest journey time direct to London’s Paddington of approximately 2 hours and direct to Bristol Temple Meads in approximately 20 minutes.

The town is the administrative centre for North Somerset County Council with a resident population of approximately 76,000 (2011 Census). Extensive residential developments have taken place between Weston-Super-Mare and Worle in recent years so it is anticipated that the resident population has increased since 2011.

Situation

The property occupies a prime retailing pitch on the east side of the pedestrianised High Street near its junction with Regent Street.

Nearby occupiers include WHSmith and Carphone Warehouse (adjacent), Marks and Spencer (opposite) Tony & Guy, Boots, Café Nero, Costa Coffee and CEX. WHSmith (adjacent) are currently refurbishing their property.

The town centre’s retailing provision is focused around the High Street and the Sovereign Shopping Centre which is in close proximity to the property. The shopping centre provides approximately 130,000 sq ft / 12 077 sq m of retail accommodation and car parking for 876 vehicles.

Weston-super-Mare Somerset property retail investment BS23 1JA
Weston-super-Mare Somerset property retail investment BS23 1JA

Description

The property comprises a retail unit arranged over ground, basement and two upper floors. Internally, the retail area has been fitted out to a high standard by the tenant.

The ground and first floors provide sales areas and the second floor provides ancillary accommodation.

The property benefits from a secure rear yard and fire escapes to the rear at each level.

Accommodation

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

Net Frontage 14.2 ft 4.32 m
Gross Frontage 15.6 ft 4.72 m
Zone A 253 sq ft 23.5 sq m
Zone B 249 sq ft 23.13 sq m
Zone C 102 sq ft 9.48 sq m
ITZA   403.5
Ground Floor Total 604 sq ft 56.11 sq m
First Floor 542 sq ft 50.35 sq m
Second Floor 684 sq ft 63.54 sq m
     
Total 1,830 sq ft 170.01 sq m

The total Gross Internal floor area is 2,020 sq ft / 187.66 sq m.

The measured survey report is available to download and will be assigned to a purchaser at a cost of £395 + VAT.

Weston-super-Mare Somerset property retail investment BS23 1JA
Weston-super-Mare Somerset property retail investment BS23 1JA

Planning

The property is not listed and sits within the Great Weston Conservation Area.

Tenure

Freehold.

Weston-super-Mare Somerset property retail investment BS23 1JA
Weston-super-Mare Somerset property retail investment BS23 1JA

Tenancy

The property is let to Shoe Zone Retail Limited on a full repairing and insuring lease for a term of 5 years from 1st December 2018.

The passing rent is £23,000 per annum, equating to £45 per square foot ITZA.

At the lease renewal in December 2018, the rent was rebased from £33,000 per annum to £23,000 per annum.

Covenant

Shoe Zone Retail Limited (Company No. 148038) has reported the following trading figures.

  30th September 2018 30th September 2017
Turnover £160,615,000 £157,777,000
Pre-Tax Profit £11,433,000 £9,670,000
Shareholders’ Funds £39,128,000 £31,696,000

Shoe Zone Retail Limited is the UK’s leading value footwear retailer and operates from over 500 stores in the UK and Ireland and employs approximately 4,000 employees. The company sell approximately 20 million pairs of footwear each year.

For further information visit www.shoezone.com.

Weston-super-Mare Somerset property retail investment BS23 1JA
Weston-super-Mare Somerset property retail investment BS23 1JA

VAT

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

Proposal

We are instructed to seek offers in the region of £317,500 (Three Hundred and Seventeen Thousand, Five Hundred Pounds), subject to contract, reflecting net initial yield of 7.00%, assuming purchasers’ costs of 3.49%.

Please note that a purchaser will be re-charged the costs of searches and surveys which are provided in the data room.

Please note a purchaser will be charged a Transaction Fee of £2,500 + VAT.

Weston-super-Mare Somerset property retail investment BS23 1JA
Weston-super-Mare Somerset property retail investment BS23 1JA

Investment Considerations

  1. An opportunity to acquire a freehold town centre investment;

  2. The property occupies a prime retailing pitch;

  3. Attractive lot size to an investor;

  4. VAT Free investment;

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

  6. Let to the highly secure covenant of Shoe Zone Retail Ltd (Turnover of £160.6 million);

  7. The tenant recently signed a new 5 year lease;

  8. The rent has recently been rebased from £33,000 to £23,000 pa;

Data Room and clicktopurchase®

Access to the data room and for the ability to purchase online, please see the clicktopurchase® “C” icon or side bar.

Contact Us

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

Vendors Solicitor

Knights Plc +44 (0) 116 242 1258
Rebecca Horgan Rebecca.Horgan@knightsplc.com
Tom Bower tom.bower@knightsplc.com
customer service