Waterfront Retail / Leisure Investment

Sixty8 At The Marina | Newfoundland Way | Portishead | Bristol | BS20 7FT

£2,800,000

offers in the region of

SOLD

Summary

  • Highly attractive waterfront location at Portishead Marina

  • Five ground floor retail / leisure units

  • Multi-let, anchored by a Co-op convenience store

  • Fully income producing generating £224,963 per annum

  • WAULT of 13.85 years to expiry and 6.71 years to breaks

  • Offers in the region of £2,800,000, subject to contract

  • 7.55% Net Initial Yield

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Location

Portishead is a rapidly expanding coastal town in North Somerset with a resident population of circa 24,000. It is becoming an increasingly popular residential location and satellite to Bristol, which is approximately 11 km (7 miles) to the east. Cardiff is approximately 64 km (40 miles) to the west and London is 201 km (125 miles) to the east.

Bristol is the fifth largest city in the UK and is the regional capital of the south west of England. The city was voted, the “Best city to live in Britain 2017” by the Sunday Times.

Portishead is well served by a good mix of local shops and supermarkets including a large Waitrose and Sainsbury’s. The town has a small industrial base due to its proximity to Portbury.

Road communications are excellent, with Junction 9 of the M5 Motorway approximately 3.2km (2 miles) to the east, subsequently giving access to the M4 and wider motorway network. The A369 road links Portishead to Junction 19 and Bristol city centre. There are regular bus links to Bristol City Centre as well as the Mall at Cribbs Causeway. Plans are in place to reopen the Portishead Train Station as part of the £100+ million MetroWest infrastructure Project. This will restore the direct rail link into Bristol and improve connectivity to the town.

Situation

Sixty8 at the Marina is located in the former docks with the scheme forming part of the master-planned redevelopment of Portishead Quays. The Marina attracts many visitors on foot, and holds 150 yachts. The area has recently been developed to feel like an old fishing village with a contemporary edge. The Victorian town is just half a mile walk away which offers a variety of shops, cafes and bars.

The property is in the centre of the new Marina development, a bustling area which offers modern waterfront apartments, cafes, shops and leisure facilities, attracting many visitors throughout the year. In the immediate vicinity visitors can participate in leisure activities in and around the Marina as well as visit nearby attractive restaurants and pubs.

One new development in close proximity to the subject property is Marina Gardens, a landmark scheme of 6 retirement blocks by PegasusLife comprising a collection of one and two bedroom apartments.

The property is just a 10 minute drive to Junction 18 of the M5 Motorway consequently connecting the town to other surrounding areas.

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Description

The property forms the ground floor commercial element of a mixed use waterfront block known as Sixty8 at the Marina. The building was developed by Crest Nicholson in 2012 and forms one of the later phases of a much wider residential led Marina development.

The property comprises of 5 retail/leisure units which all have the benefit of A1, A2, A3 and A4 planning use consent.

The upper floors provide 68 one and two bedroom apartments including 8 two bedroom penthouses which were all sold privately.

Accommodation

The property has been measured by BKR Floor Plans and provides the following Gross Internal Areas;

Unit 1 348.84 sq m 3,755 sq ft
Unit 2 191.37 sq m 2,060 sq ft
Unit 3 151.98 sq m 1,636 sq ft
Unit 4 158.02 sq m 1,701 sq ft
Unit 5 259.75 sq m 2,796 sq ft
Total 1,109.97 sq m 11,948 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 £595 + VAT.

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Tenure

Long leasehold for a term of 125 years from 12th June 2013 at a peppercorn rent (119 years unexpired).

Tenancies

The property is fully let to 5 tenants on effectively full repairing and insuring terms in accordance with the attached tenancy schedule. The weighted average unexpired lease term (WAULT) is 13.85 years to expiry and 6.71 years to tenant break options.

An investor will benefit from a total income of £224,963 per annum.

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Service Charge

The service charge budget for 2019 is £11,428.81. The Service Charge Accounts and the Service Charge Budgets are available to download.

Covenants

The Southern Co-operative Limited

Year Ending 27th January 2019 27th January 2018
Turnover £450,851,000 £431,190,000
Pre-Tax Profits (Before Exceptional Items) £2,763,000 £2,431,000
Net Assets £125,566,000 £121,591,000

Established in Portsmouth, Hampshire over 145 years ago, Southern Co-Op is an independent business owned by its own members. The company runs more than 250 food stores and funeral homes across eleven counties in southern England. For further information see www.thesouthernco-operative.co.uk.

South West Coffee Limited

South West Coffee Limited (Co. No. 06540150) is a Costa coffee franchise partner which, according to its 2018 accounts, operates 10 branches. For the year ending 31st December 2018 the company reported a Turnover of £3,285,000, a Pre-Tax Loss of £534,000 and Shareholders’ Deficit of £1,309,000. The Landlord benefits from a £18,000 rent deposit.

The ultimate parent company is Kout Food Group K.S.P.C, a company which until recently was listed on the Kuwaiti Stock Exchange. Founded in 1982, The Kout Food Group manages and operates internationally recognised brand names including Burger King, Pizza Hut and Taco Bell.

Costa was founded in 1971 and is the largest coffee chain in the UK with over 2,200 stores nationwide and operating in more than 30 countries. In January 2019 The Coca-Cola Company acquired Costa Limited from Whitbread PLC in a deal worth $4.9 billion.
For more details visit www.costa.co.uk.

The Thirsty Pine Limited (t/a The Siren’s Calling)

The Siren’s Calling opened in May 2018 and is a community focused pub which hosts regular live music sets, beer festivals and tastings. The owners are experienced in this sector, having run other successful craft beer businesses in Bristol. For further information see www.sirenscalling.co.uk.

The Landlord benefits from a £17,000 rent deposit.


Searock Portishead Limited

Searock Portishead Limited was newly incorporated in January 2019. The owner is an experienced restauranteur who has successfully run a gastro pub in Wiltshire prior to re-locating to Portishead. The Landlord benefits from a £10,164 rent deposit.


Jacobs Coffee House Limited (t/a Mokoko)

Mokoko Coffee & Bakery was established in 2011 and has four branches in Bristol, Southgate Bath, Bath and Portishead. It was recently voted the best café at the Food Reader Awards 2019 and has been voted one of the UK’s top 25 coffee businesses by The Sunday Times. For further information see www.mokokocoffee.com.

For the year ending 31st December 2017, Jacobs Coffee House Limited (Co. No. 07431828) reported Shareholders’ Funds of £204,712. The Landlord benefits from a £33,564 rent deposit.

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VAT

The property has been registered for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

Proposal

We are instructed to seek offers of £2,800,000 (Two Million, Eight Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 7.55%, assuming standard purchaser’s costs of 6.43%.

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

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Investment Considerations

  1. An opportunity to acquire a multi-let retail / leisure investment;

  2. Highly attractive waterfront location overlooking Portishead Marina;

  3. Modern, purpose built development;

  4. Fully let and income producing, anchored by a Co-op convenience store;

  5. The property provides an attractive, lengthy weighted unexpired lease term (WAULT) of 13.85 years to expiry;

  6. A purchase at the asking price will provide an investor with an attractive net initial yield;

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
Dale Henry dale@singervielle.co.uk +44 (0) 203 701 1356
Neil Singer neil@singervielle.co.uk +44 (0) 203 478 9120

Vendors Solicitor

Thrings LLP   +44 (0) 117 930 9500 
Robert Barnes rbarnes@thrings.com +44 (0) 117 930 9537
Caitlin Mills cmills@thrings.com +44 (0) 117 930 9584

 

Joint Agent

Oliver Stretton - ostretton@alderking.com +44 (0) 117 317 1121
Lucy Costain - lcostain@alderking.com +44 (0) 117 317 1108

customer service