stop well-secured-high-yielding-retail-investment-southport - Singer Vielle Sales

Well Secured, High Yielding Retail Investment

143-153 Lord Street | Southport | PR8 1PY

£1,560,000

subject to contract

EXCHANGED

Summary

  • Freehold retail investment opportunity

  • Prominent town centre retailing pitch

  • Let to The Edinburgh Woollen Mill Ltd

  • Highly secure income – Shareholders’ Funds £145 million

  • £1,560,000, subject to contract

  • 10.0% net initial yield

Location

Southport is a large seaside town in Merseyside, located approximately 29 km (18 miles) north of Liverpool and 59 km (37 miles) north-west of Manchester.

The town benefits from good road communications being served by the A565, running south to Liverpool and north-east to Preston, and the A570 which links directly to Junction 3 of the M58 Motorway approximately 21 km (13 miles) to the south-east. In addition, Southport railway station provides regular direct train services to Liverpool and Manchester with a journey time of 45 minutes and 1 hour 12 minutes respectively.

With 35 km (22 miles) of coastline, beaches, seaside amusements and many family attractions, Southport is a popular tourist destination.

Situation

The subject property is situated in a prominent retailing pitch within the heart of Southport on Lord Street. Pedestrian footfall in the vicinity of the property is high, being one of the primary shopping streets within the town centre. National high street brands along Lord Street include Bonmarche (adjacent), Argos, Starbucks, Beales Department Store and B&M Bargains. The town’s other principal retailing thoroughfares, Chapel Street and Eastbank Street, are a mere 300 metres to the east and are home to occupiers including Primark, Marks & Spencer, Boots, Holland & Barrett and JD Sports.

Southport Station is less than 0.8 km (0.5 miles) to the east and the popular tourist attraction of Southport Pleasureland is less than 0.8 km (0.5 miles) to the north-west.

Description

The property comprises a retail unit arranged over ground, first and second floors.

Internally, the property has been fitted out by the tenant to their usual corporate style to provide a main retail area on ground floor with further sales, café and storage accommodation on first floor and ancillary accommodation on second floor.

The store offers a wide selection of brands and has been part-fitted out as The Golf Company, an exclusive brand of The Edinburgh Woollen Mill which provides golfwear for men and women.

We understand the property is Grade II Listed and situated within the Lord Street Conservation Area.

Accommodation

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

Zone A 107.39 sq m 1,156 sq ft
Zone B 109.53 sq m 1,179 sq ft
Zone C 111.02 sq m 1,195 sq ft
Remainder 115.10 sq m 1,239 sq ft
ITZA   2,199
Total Ground Floor Sales 443.04 sq m 4,769 sq ft
     
First Floor 325.34 sq m 3,502 sq ft
Second Floor 396.78 sq m 4,271 sq ft
     
Total 1,165.15 sq m 12,542 sq ft

A set of floor plans is available to download and the measured survey report can be re-addressed to a purchaser.

In accordance with the lease, it is assumed that the Premises have the following Net Internal Floor Areas for rent review purposes:

Zone A 124.12 sq m 1,336 sq ft
Zone B 107.40 sq m 1,156 sq ft
Zone C 110.46 sq m 1,189 sq ft
Remainder 117.43 sq m 1,264 sq ft
Total Ground Floor 459.41 sq m 4,945 sq ft
ITZA   2,369 units
     
Outside Store 14.03 sq m 151 sq ft
First Floor Sales 117.52 sq m 1,265 sq ft
First Floor Potential 88.82 sq m 956 sq ft
Total First Floor Sales 206.34 sq m 2,221 sq ft
First Floor Stock Room 81.10 sq m 873 sq ft
First Floor Storeroom 11.61 sq m 125 sq ft
First Floor Office 10.03 sq m 108 sq ft
First Floor Staffroom 24.62 sq m 265 sq ft
First Floor Food Prep 10.22 sq m 110 sq ft
Total First Floor NIA 344.02 sq m 3,703 sq ft

Tenure

Freehold.

Tenancy

The property is entirely let to The Edinburgh Woollen Mill Limited for a term of 25 years from 17th August 1998, expiring on 16th August 2023. The current passing rent is £165,000 per annum which we analyse equates to £63 Zone A, adopting the floor areas to be used at rent review. The lease benefits from 5 yearly upwards only rent reviews, the next being on 17th August 2018.

The lease is subject to a minor Schedule of Condition relating to the unused second floor only.

Covenant

The Edinburgh Woollen Mill Limited (Co. No. 24081) has reported the following figures;

  27th February 2016 28th February 2015
Turnover £168,701,000 £166,230,000
Pre-Tax Profits £24,680,000 £24,912,000
Shareholders’ Funds £144,853,000 £125,629,000

Founded in 1946, The Edinburgh Woollen Mill is a retailer specialising in clothing, along with interests in homewares and destination shopping for tourists. According to their website, The Edinburgh Woollen Mill has 265 mainstream high street stores, 88 speciality tourist shops and 27 destination sites throughout the United Kingdom.

The Group has continued to invest in acquisitions and in recent years has added to its portfolio. It acquired the assets of Ponden Mill and Rosebys (which have been re-branded as Ponden Home), Proquip and several other brands including Peacocks, Jaeger and Austin Reed. In May 2017 the Group opened the first Days department store, which will house Peacocks, Edinburgh Woollen Mill, Ponden Home, Jane Norman and Austin Reed brands. This is intended to be the first of a chain of Day's department stores. For further information, please visit www.ewm.co.uk.

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 in the region of £1,560,000 (One Million, Five Hundred and Sixty Thousand Pounds), subject to contract, reflecting a net initial yield of 10.0%, assuming purchaser’s costs of 6.13%.

Investment Considerations

  1. An opportunity to acquire a freehold retail investment;

  2. The investment provides highly secure income, being let to The Edinburgh Woollen Mill Ltd (Pre-Tax Profits £24.7m, Shareholders’ Funds £144.85m).

  3. The property occupies a prominent retailing pitch on one of the principal shopping streets within the heart of Southport town centre;

  4. Approximately 6 years unexpired lease term;

  5. A purchase at the asking price reflects an attractive net initial yield.

Contact Us

Singer Vielle   +44 (0) 207 935 7200
Neil Singer neil@singervielle.co.uk +44 (0) 203 478 9120
Dale Henry dale@singervielle.co.uk +44 (0) 203 701 1356
Richard Wolfryd richard@singervielle.co.uk +44 (0) 203 701 1353
Faye Langoulant faye@singervielle.co.uk +44 (0) 203 478 9122
Louanne Malan louanne@singervielle.co.uk +44 (0) 203 701 1386

Vendors Solicitor

Osborne Clarke LLP +44 (0) 117 917 4274
Nichola Jenner nichola.jenner@osborneclarke.com
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