stop well-secured-retail-investment-opportunity-doncaster - Singer Vielle Sales

Well-Secured Retail Investment Opportunity - 8.0%

22 Baxtergate | Doncaster  | DN1 1LD

£860,000

subject to contract

SOLD

Summary

  • Freehold retail investment opportunity

  • Prominent town centre retail location

  • Secure Income - Let to Ann Summers Limited

  • £860,000, subject to contract

  • 8.0% net initial yield

Location

Doncaster is one of the largest commercial centres in South Yorkshire, located approximately 273 km (170 miles) north of London, 56 km (35 miles) south-east of Leeds and (35 km) 22 miles north-east of Sheffield.

The town benefits from good road communications being situated approximately 4.0 km (2.5 miles) east of the A1 (M) and 4.8 km (3.0 miles) north of Junction 3 of the M18 Motorway which in turn link with the wider national motorway network.

Doncaster is connected to the national railway network with a fastest journey time to London King’s Cross of 1 hour 35 minutes. There are also regular direct services to Leeds, York and Hull. Doncaster Sheffield Airport is located approximately 10 km (6 miles) to the south east and is the UK’s newest purpose built international airport handling over 865,000 passengers in 2015 and flights to over 40 destinations. In early 2016, phase 1 of the Finningley and Rossington Regeneration Route Scheme link road was completed, which will see journey times to the airport dramatically improved.

Situation

The subject property is situated in a prominent position within the very heart of Doncaster town centre on Baxtergate. Pedestrian footfall in the vicinity of the property is high, being one of the principal pedestrianised retailing pitches within the town centre. National high street brands surrounding the property include House of Fraser, Primark, Greggs, Marks & Spencer, Costa, Carphone Warehouse and The Body Shop.

The Frenchgate Shopping Centre is immediately to the west. Comprising in excess of 74,322 sq m (800,000 sq ft) with over 140 retailers and 1,800 car parking spaces within its multi-storey car park, the centre benefits from a 19.6 million footfall (375,000 weekly) with 1.6 million people living within Frenchgate’s catchment area (Source: www.frenchgateshopping.co.uk). Occupiers include Debenhams, Next, New Look, Sainsbury’s, Boots, River Island, H&M, Lush and Schuh.

In addition, the award-winning Doncaster Market is located immediately to the east. One of Britain’s biggest markets, it comprises some 400 shops, stalls and stands.

Description

An attractive brick built building, the property comprises ground floor sales together with ancillary accommodation at first and second floor. Internally, the property has been fitted out to a high standard in the tenant’s corporate image.

Accommodation

The property has been measured by Commercial Measured Surveys Limited and provides the following Net Internal floor areas:

Gross Frontage 7.81 metres 25 ft 7 inches
Net Frontage 6.96 metres 22 ft 10 inches
Shop Depth 25.50 metres 83 ft 8 inches
Shop Width 7.76 metres 25 ft 6 inches
     
Ground Floor Sales    
Zone A 45.9 sq m 494 sq ft
Zone B 50.2 sq m 540 sq ft
Zone C 36.1 sq m 389 sq ft
Zone D 36.1 sq m 389 sq ft
Remainder 2.1 sq m 23 sq ft
ITZA   911
     
Total Ground Floor 170.4 sq m 1,835 sq ft
     
First Floor Storage 64.3 sq m 692 sq ft
     
Second Floor Storage 37.1 sq m 399 sq ft
     
TOTAL 271.8 sq m 2,926 sq ft

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

Tenure

Freehold

Tenancy

The property is let to Ann Summers Limited at a passing rent of £72,500 per annum which, based on our analysis, equates to £74 Zone A.

The tenant has been in occupation since 2000 and such is their long term commitment to the property in October 2012 they entered into a reversionary Full Repairing and Insuring lease for a term of 8 years from 25th December 2016, expiring on 24th December 2024 (7.75 years unexpired lease term). The lease benefits from an upwards only rent review on 25th December 2021.  The tenant pays rent monthly in accordance with a side letter to their occupational lease. 

Covenant

Ann Summers Limited (Co. No. 01034349), has reported the following figures;

  27th June 2015 27th June 2014
Turnover £104,818,310 £101,212,066
Pre-Tax Profit £1,025,990 (£3,928,273)
Total Shareholders’ Funds £47,844,808 £46,975,132

Established in 1972, Ann Summers is a multi-national retailer which operated from 135 stores in the last financial year. The company posted a 17.2% rise in its overall sales year-on-year in the week to 26th December 2016. In-store sales were up 12.5% during the period and overall sales for the month of December were up 5%. For further information visit www.annsummers.com.

Value Added Tax

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

Proposal

Our client is seeking offers in the region of £860,000 (Eight Hundred and Sixty Thousand Pounds), subject to contract, reflecting a net initial yield of 8.0% assuming purchasers’ costs of 5.58%.

Investment Considerations

  1. An opportunity to acquire a freehold retail investment;

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

  3. The investment provides secure income;

  4. In excess of 7.75 years unexpired lease term;

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

  6. The investment provides a purchaser with an attractive lot size.

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

Nabarro LLP  +44 (0)114 279 4069
Amy Smith ab.smith@nabarro.com  
customer service