Secure VAT Free Retail Investment at a Rebased Rent

105-106 High Street | Gosport | Hants | PO12 1DS

£355,000

subject to contract

FOR SALE

Summary

  • VAT Free investment

  • Let to Edinburgh Woollen Mill Ltd – Net Assets £161m

  • Tenant in occupation since 2006

  • Rebased rent

  • Prime retailing pitch

  • Situated approximately 300m from Gosport Ferry Terminal

  • Freehold

  • £355,000, subject to contract

  • 6.25% net initial yield

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Location

Gosport forms part of the Solent conurbation on the south coast of England, and on the western side of Portsmouth Harbour. The town is one of the most densely populated areas in the South East region with the number of households projected to increase by almost 10% over the next 10 years, (Gosport Borough Council).

Over the last 10 years the Ministry of Defence has sold land holdings in Gosport which has led to mixed-use and employment schemes being developed, such as at Royal Clarence Yard. There are plans for the MOD to release further land set to generate further development and business creation.

The town is across the harbour from Portsmouth, a 52 minute hovercraft ride from Isle of White, approximately 20 miles (32 km) south east of Southampton and 7 miles (11.25 km) south of the M27 Motorway (Junction 10).

Southampton Airport is approximately 18 miles (29 km) north east of Gosport and Heathrow airport is approximately 73 miles (117 km) to the north east.

Gosport has become a touristic destination with attractions including the Museum of the Royal Navy, the Submarine Museum and Gosport Driving Museum.

Situation

The property is situated in a prime position on the pedestrianised part of the High Street just 300 meters from the busy Gosport Ferry terminal, with 25% of passengers using the ferry for shopping, (www.gosportferry.co.uk). As a result the property benefits from a high level of footfall.

Nearby national operators include, Vision Express (adjacent), Specsavers, Greggs, McDonalds, Boots, Holland & Barratt, Superdrug and Costa Coffee.

There is a large Morrisons Supermarket, Halfords, Iceland and Lidl close by.

Every Tuesday and Saturday the High Street benefits from a busy street market, attracting residents and visitors alike.

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Description

The property comprises a retail unit arranged over ground, first and second floors. Internally, the sales areas is at ground floor level with ancillary accommodation on the upper floors.

The property has been fitted out by Edinburgh Woollen Mill in their usual corporate style.  The property benefits from roller shutter loading doors to the rear of the property.

Accommodation

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

Net Frontage 6.88 m 22.7 ft
Gross Frontage 7.69 m 25.3 ft
Zone A 39.95 sq m 430 sq ft
Zone B 39.02 sq m 420 sq ft
Zone C 48.87 sq m 526 sq ft
Remainder 25.73 sq m 277 sq ft
Ground Floor Total 153.56 sq m 1,653 sq ft
     
First Floor 43.38 sq m 467 sq ft
Second Floor 52.49 sq m 565 sq ft
     
Total NIA 249.44 sq m 2,685 sq ft

The total Gross Internal floor area is 3,028 sq ft / 281.30 sq m.

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

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Planning

The property is not listed and sits within the High Street Gosport Conservation Area.

It is suggested that there is potential to increase the massing of the upper parts, subject to planning permission.

Tenure

Freehold.

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Tenancy

The property is let to Edinburgh Woollen Mill Ltd on a full repairing and insuring basis for a term of 5 years from 17th May 2018, expiring 16th May 2023.

The tenant has been in occupation since 2006.
The current passing rent is £23,000 per annum equating to an ITZA rate of £25 per square foot.

At the lease renewal in May 2018, the rent was rebased from £37,000 per annum to £23,000 per annum.

Covenant

Edinburgh Woollen Mill Ltd (Company No. SC024081) has reported the following figures.

  25th February 2017 27th February 2016 28th February 2015
Total Income £171,307,000 £168,701,000 £166,230,000
Pre-Tax Profit £23,627,000 £24,680,000 £24,912,000
Net Current Assets £160,673,000 £142,854,000 £124,300,000

Edinburgh Woollen Mill operate from over 260 stores, 88 speciality tourist shops and 27 destination shops within the UK. Founded in 1946 the company evolved from a yarn dying company into a leading retailing group by 1970. Over the years the company has acquired Ponden Mill, Proquip, Jane Norman and Rosebys and is controlled by billionaire businessman Phillip Day.

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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 £355,000 (Three Hundred and Fifty Five Thousand Pounds), subject to contract, reflecting a net initial yield of 6.25%, assuming purchasers’ costs of 3.84%.

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

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Investment Considerations

  1. The investment provides highly secure income – Edinburgh Woollen Mill Ltd;

  2. Tenants have been in occupation for over 13 years;

  3. VAT free investment;

  4. Located close to Gosport Ferry Terminal;

  5. There is potential to increase the massing of the upper parts, STPP;

  6. Attractive lot size to an investor;

  7. Rent has been rebased from £37,000 pa to £23,000 pa.

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
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

Vendors Solicitor

Solomon Taylor & Shaw    
Maurice Esterkin Maurice@solts.co.uk +44 (0) 207 431 1912
customer service