Well Secured Retail Investment – 7.0%
29-31 Market Place | Hyde | Greater Manchester | SK14 2LX
subject to contract
Let to Specsavers Optical Stores Limited
Secure income – Net Assets £86 million
Extensive return frontage
Pedestrianised town centre retailing pitch
Let until June 2026
Upcoming rent review in June 2021
£411,000, subject to contract
7.00% Net Initial Yield
The town of Hyde is located within Tameside Metropolitan Borough and forms part of the Greater Manchester Metropolitan area. Hyde is situated 1.6 km (1 mile) east of Denton and approximately 13 km (8 miles) east of Manchester City Centre.
Hyde benefits from excellent communications being located to the south of Junction 3 of the M67 motorway, which links to the A57 and M60 to the east, connecting Hyde to regional town and cities such as Stockport, Bury, Sheffield and Manchester.
The town has strong rail links from Hyde Central Station providing services to Manchester Piccadilly and London Euston with a fastest journey time of 2 hours 45 minutes. The Station has benefitted from an increase in passenger of 5% year on year for the last 4 years (Source: Office of Rail and Road).
The property is located at the start of the pedestrianised section of Market Place, the principal retail pitch in Hyde town centre. Occupiers in the vicinity include Costa Coffee, Post Office, Halifax, Betfred, Farmfoods and Poundstretcher.
Clarendon Square Shopping Centre, with more than 50 stores and a 270-space car park, is directly opposite the property and Hyde open air market is located at the end of Market Place, some 100 metres (110 yards) to the west. The open-air market is open 6 days a week, boasts 48 all-weather stalls and has been running for approximately 75 years. Hyde Central Station is located approximately 800 metres (880 yards) to the west of the property.
The property comprises a ground floor retail unit with a number of partitioned consultation rooms. At first floor level there are additional consultation rooms with ancillary accommodation including staff office, WC’s and storage. There is a basement area with a sub-1.5m head height which is not included within the floor areas.
Internally, the property has been fitted out by the tenant to their usual corporate style with consultation rooms fitted with the latest eye care equipment. Externally the property benefits from a return frontage with signage onto both Market Place and Russell Street as well as a small yard area to the rear, accessed via Russell Street .
The property has been measured by BKR Floor Plans and provides the following Net Internal floor areas:
|Net Frontage||8.31 m||27’3”|
|Gross Frontage||8.99 m||29’6”|
|Zone A||51.65 sq m||556 sq ft|
|Zone B||44.22 sq m||476 sq ft|
|Zone C||17.19 sq m||185 sq ft|
|Total Ground Floor||113.06 sq m||1,217 sq ft|
|First Floor Ancillary||96.62 sq m||1,040 sq ft|
|Total||209.68 sq m||2,257 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.
The property is held Good Leasehold from Mr Joseph Sidebotham and Mr Joseph Booth for a term of 999 years from 10th June 1823, expiring 9th June 2822 at a ground rent of £2.75 per annum.
The headlease, although granted in 1823, was first registered at the Land Registry in 1975. The class of registered Title is Good Leasehold. The reason for this is that the freehold title was not produced to the Land Registry at the time. This could be rectified, and the title upgraded to Absolute Leasehold if the freehold title were available to produce to Land Registry, but the freehold title is not registered, freehold unregistered title is not available and the seller does not know who the freeholder is. The seller has assignable Title indemnity insurance in place, further details are available in the legal pack.
Within the Title demise a small element of the first floor has been let for the residue of the headlease term (less 1 day) at a fixed rent of £1 per annum. The area is first floor only with no access from the ground floor of 29-31 Market Place and no current access at first floor level. Access is gained from the first floor of the adjoining property, 27 Market Place. For all intents and purposes this is not in effect part of the property. This lease does not contain any obligation on the tenant to contribute towards the maintenance of the structure of the building above or below these first-floor premises .
The adjoining occupier has rights over the yard for the parking of vehicles to the rear and they are currently exercising this right.
The entire property is let to Specsavers Optical Superstores Limited on a full repairing and insuring lease for a term of 10 years from 2nd June 2016, expiring on 1st June 2026.
The current passing rent is £30,000 per annum which, based on our analysis, equates to a Zone A rate of £26.40 per sq ft. This is based upon £7.50 per sq ft on the first floor.
The tenant has an excellent payment record with no rent payment delays during lockdown. All rents are paid and up to date, with no arrears. A copy of the rental payment history is available within the legal pack.
Specsavers Optical Superstores Limited (Co. No. 01721624) has reported the following figures:
|29th February 2020||29th February 2019|
Established in 1983, the family-run business provides optometry, audiology and other healthcare services for its customers. The company can be found in the UK, Ireland, Netherlands, Norway, Sweden, Denmark, Finland, Spain, Australia and New Zealand, employing over 32,500 people who work across 1,978 stores, as well as in support offices and throughout the supply chain (www.specsavers.co.uk).
The property has been registered for VAT. It is anticipated that the sale of this property will be treated as a Transfer of a Going Concern (TOGC).
We are instructed to offers in the region of £411,000 (Four Hundred and Eleven Thousand Pounds), subject to contract, reflecting a net initial yield of 7.00%, assuming standard purchaser’s costs of 4.25%.
Please note that a purchaser will be re-charged the costs of the measured survey (£345 + VAT) and searches (£770.50) which are provided in the data room.
Please note that a purchaser will be charged a Transaction Fee of 1.00% plus VAT of the final agreed sale price.
The property occupies a prominent position in the town centre;
Imminent rent review in June 2021;
Let to the strong covenant of Specsavers Optical Superstores Limited;
Internet proof tenant providing a physical service to the local community;
A purchase at the asking price reflects an attractive net initial yield;
Attractive lot size to an investor.
Data Room and clicktopurchase®
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