Highly Secure South East Bank Investment
53 Week Street | Maidstone | Kent | ME14 1QT
subject to contract
Undoubted Income – Let to Bank of Scotland plc t/a Halifax
10.75 years unexpired lease term (5.75 years term certain)
Tenant recently extended their occupation at a re-based rent
Tenant has been in occupation for 25 years
100% prime retailing pitch
Affluent South East town
£1,380,000, subject to contact
6.5% net initial yield
Maidstone is the administrative centre of Kent, located approximately 38 miles (61 km) south east of London, 20 miles (32 km) north west of Ashford, 27 miles (43 km) west of Canterbury and 38 miles (61 km) north east of Crawley.
Maidstone benefits from excellent road communications being situated within 2 miles of Junctions 5, 6 and 7 of the M20. The M20 runs along the north of the town and connects to the M25 which in turn provides direct access to the wider motorway network.
The town is served by three railway stations, Maidstone East, Maidstone West and Maidstone Barracks. The town benefits from regular and direct journeys to London Victoria and London St Pancreas with fastest journey times being approximately 1 hour.
London City Airport is located 37 miles (59 km) north-west of Maidstone and London Gatwick is located 41 miles (66 km) south west.
Maidstone has a large catchment population of approximately 330,000 persons and has a fast growing population, expected to exceed the UK average growth forecasts of 8% by 2025, (www.maidstone.gov.uk).
The property occupies a 100% prime retailing pitch on the pedestrianised Week Street, directly opposite Primark. Nearby occupiers include Bill’s Restaurant (adjacent), Superdrug, Marks & Spencer, WH Smith, EE, Co-Op and Specsavers.
The property benefits from being next to the main entrance to Fremlin Walk, Maidstone’s primary shopping centre comprising approximately 33,000 sq m (350,000 sq ft) of retail and restaurant accommodation. Built on the site of an old Kentish brewery, this centre elevated Maidstone into the United Kingdom’s top 50 shopping destinations. The scheme is anchored by House of Fraser and benefits from 760 car parking spaces. Occupiers include Pret a Manager, Pizza Express, Five Guys, Costa, H&M, JD Sport, Hotel Chocolat, Pandora, River Island, Superdry and Zara.
In addition to Fremlin Walk the town benefits from The Mall Shopping Centre located at the southern end of Week Street. The Mall comprises approximately 49,700 sq m (535,000 sq ft) of retail and restaurant accommodation. Occupiers including, Boots, Card Factory, Greggs, Holland & Barrett, Mc Donalds, KFC, Iceland and Wilko.
The property comprises an attractive two storey building with ATM machines on the exterior. The banking hall is arranged over ground floor with office and ancillary accommodation on the first, second and lower ground floors.
The property has been measured by BKR Floor Plans and provides the following Net Internal Areas:
|Gross Frontage||29’7”||9.02 m|
|Net Frontage||27’10”||8.49 m|
|Zone A||414 sq ft||38.46 sq m|
|Zone B||516 sq ft||47.94 sq m|
|Zone C||501 sq ft||46.54 sq m|
|Ground Remaining||502 sq ft||46.64 sq m|
|ITZA||860 sq ft|
|Basement||1,080 sq ft||100.33 sq m|
|Ground Floor||1,933 sq ft||179.58 sq m|
|First Floor||1,678 sq ft||155.89 sq m|
|Second Floor||863 sq ft||80.17 sq m|
|Total||5,554 sq ft||515.97 sq m|
The measured survey report is available to download and will be assigned to a purchaser at a cost of £395 + VAT.
The property is not listed and is located within a conservation area.
The property is currently let to Halifax Plc on a full repairing and insuring basis, for a term expiring on 24th March 2020 at a passing rent of £149,000 per annum.
A reversionary lease to Bank of Scotland Plc (t/a Halifax) was entered into on 20th May 2019 for a term of 10 years from 25th March 2020, expiring on 24th March 2030 at a re-based rent of £95,000 per annum (£82.00 Zone A). The lease is subject to a tenant’s break option on 24th March 2025 and an upwards only rent review on 25th March 2025.
Therefore there are 10.75 years to expiry and 5.75 years to break.
The tenant will receive a five month rent free period from 24th June 2019. The vendor will “top-up” the income by an appropriate adjustment on the completion sum in order that a purchaser does not suffer an income shortfall.
Therefore, an investor will benefit from an income of £95,000 per annum.
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.
The property has been registered for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
We are instructed to seek offers in the region of £1,380,000 (One Million Three Hundred and Eighty Thousand Pounds), subject to contract, reflecting a net initial yield of 6.5%, assuming purchasers’ costs of 6.04%.
Please note that a purchaser will be re-charged the cost of searches and surveys which are provided in the data room.
Please note a purchaser will be charged a Transaction Fee of £5,000 + VAT.
An opportunity to acquire a South East investment;
Let to the undoubted covenant of Bank of Scotland Plc;
The tenant has been in occupation for 25 years;
As a sign of their commitment to the subject property the tenant has recently entered into a new reversionary lease;
The rent has been re-based from £149,000 per annum to £95,000 per annum;
The property occupies a 100% prime retailing pitch adjacent to the main entrance of Fremlin Walk Shopping Centre and directly opposite Primark;
A purchase at the asking price reflects an attractive net initial yield.
Data Room and clicktopurchase®
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|Jonathan Jacobemail@example.com||+44 (0) 207 353 1313|