Highly Secure Bank Investment - Santander
1 Fore Street | Taunton | Somerset | TA1 1HH
subject to contract
Located in an attractive, popular Somerset town
Undoubted Income - let to Santander UK PLC
New 5 year lease from December 2020
Tenant has been in occupation since 1963
100% prime retailing pitch, adjoining the Orchard Shopping Centre
The only Santander in Taunton
£1,000,000, subject to contract
9.0% net initial yield
Taunton is the County town of Somerset, located approximately 55 km (34 miles) north-east of Exeter, 79 km (49 miles) south-west of Bristol and 45 km (28 miles) west of Yeovil.
The town benefits from good road communications, being located 2.5 miles west of Junction 25 of the M5 Motorway and connected via the A38 and A358. Taunton Railway Station provides a direct and regular service to Exeter, Bristol, Cardiff and London with a
fastest journey time to London Paddington of approximately 1 hour 40 minutes.
Bristol International Airport is 58 km (36 miles) to the north east and Exeter International Airport 48 km (30 miles) to the south-west.
With a National Park and two Areas of Outstanding Natural Beauty, pretty market towns and a dramatic coastline, Somerset West and Taunton offers visitors some of the finest landscapes in South West England to explore and enjoy. In 2017 Taunton was awarded Garden Town status from the Government.
The property occupies a highly prominent position, 100% prime retailing position in Fore Street, in the heart of the town centre. The pedestrianised Paul Street runs alongside the property Nearby occupiers include WH Smith (opposite), JD Sports, Holland & Barrett, TK Maxx, Joules and Vision Express.
The subject property integrates with the Orchard Shopping Centre with direct access into the mall. Comprising 13,006 sq m / 140,000 sq ft, the centre has nearly 60 stores including a variety of shops and eateries. The scheme benefits from a 300+ space multi-storey car park. Occupiers include Superdrug, Vision Express, Ernest Jones, Greggs, Game, Jack Wills, Anytime Fitness, Hotel Chocolat and Bill’s.
A multimillion-pound re-development of Taunton Railway Station, which is situated 1.6 km (1 mile) to the north of the property, is nearing completion. Improvements to the station include a new multi-storey car park, a new ticket office and entrance, improved bus and taxi interchange and easier access to the town centre.
The property comprises a ground floor retail unit configured as an open-plan banking area which has been fitted out by the tenant, Santander, in their usual corporate style. A staircase from the Fore Street side leads to the first floor where a combination of offices and ancillary accommodation is provided.
The property provides an extensive frontage along Paul Street. Furthermore, an entrance directly into the Orchard Shopping Centre adds to the unit’s visibility.
A servicing / rear access area is provided from the first floor to the car parking area of the shopping centre.
The property has been measured by Plowman Craven and provides the following net internal floor areas;
|Zone A||91.0 sq m||980 sq ft|
|Zone B||84.7 sq m||912 sq ft|
|Total Ground Floor||Retail||175.7 sq m||1,892 sq ft|
|First Floor||Office/Ancillary||330.3 sq m||1,664 sq ft|
|Total||321.35 sq m||3,556 sq ft|
A copy of the floor areas and floor plans is available to download. . (Note that Plowman Craven have provided measurements based upon Zone A areas combined for Fore Street and the shopping centre mall.)
Freehold. The freeholder contributes 1.346% of the service charge costs for the shopping centre (£8,549.51); these costs are recovered from the tenant, Santander UK PLC.
The property is entirely let to Santander UK PLC on a full repairing and insuring basis for a term of 5 years from 25th December 2020, expiring on 24th December 2025. The lease is within the Landlord and Tenant Act 1954 and so has security of tenure.
The current passing rent is £95,000 per annum. We suggest that this equates to an overall Zone A rate of £60 per sq ft, after allowing £3.00 per sq ft on the first floor and 5% for the return fontage.
The tenant has been in occupation since 1963. The most recent lease renewal took place in December 2020. The fact that the tenant has extended their lease during COVID-19 demonstrates their desire to remain in the property.
Santander UK PLC (Co No.02294747) has reported the following figures:
|31st December 2020||31st December 2019|
|Total Operating Income||£3,958 million||£4,170 million|
|Pre-Tax Profits||£552 million||£981 million|
|Shareholders’ Equity||£15,848 million||£15,946 million|
Santander UK is a large retail and commercial bank based in the UK and a wholly owned subsidiary of the major global bank Banco Santander. In 2020 the company had 14.3 million active customers and provided £170 billion customer loans. For further information visit www.santander.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).
Parties are invited to refer to the following recent sales evidence for properties let to Santander:
|Property||Date Sold||Lease Expiry||Sale Price||NIY|
|35 Old Church Road, Chingford, London||Feb 2021||Dec 2025||£561,000||3.99%|
|115 Station Road, Edgware, London||Feb 2021||Dec 2025||£777,000||4.15%|
|49 Woodcote Road, Wallington, Surrey||Feb 2021||Dec 2025||£727,000||4.31%|
|330 Wimborne Road, Bournemouth||Feb 2021||Dec 2025||£450,000||4.68%|
|42 Town Street, Horsforth, Leeds||March 2021||Dec 2025||£290,000||4.8%|
|138 Brighton Road, 138 Brighton Road||March 2021||Dec 2023||£534,000||4.82%|
|6-8 Flixton Road, Urmston, Manchester||March 2021||Dec 2023||£336,000||5.02%|
Our client is seeking offers in the region of £1,000,000 (One Million Pounds) subject to contract, reflecting a net initial yield of 9.0%, after allowing for standard purchaser’s costs of 5.75%.
Please note that a purchaser will be re-charged the cost of the searches which are provided in the data room.
An opportunity to acquire a freehold town centre investment;
Undoubted income – let to Santander UK PLC (Pre-Tax Profits £552 million);
New 5 year lease from December 2020;
Santander has been in occupation since 1963 and renewed their lease during COVID-19, demonstrating their commitment to the property;
The property is the only Santander bank in Taunton;
The property occupies a 100% prime retailing pitch, opening directly into the Orchard Shopping Centre;
A purchase at the asking price reflects an attractive net initial yield;
Attractive lot size for an investor.
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