FOR SALE COMMERCIAL INVESTMENT PROPERTY

Transcription

1 FOR SALE COMMERCIAL INVESTMENT PROPERTY Town centre location High quality fully modernised building Let to North Lincolnshire Homes Limited FRI terms expiring November 2024 Current rent 37,847 pax 3 yearly index linked rent reviews Ideal easy to manage investment COLE STREET SCUNTHORPE NORTH LINCOLNSHIRE DN15 6QY

2 LOCATION Scunthorpe has a population of approximately 76,000 and is located about 30 miles south west of Hull and 20 miles east of Doncaster. The town is located at the junction of the A1077 with the A159, 5 miles north of the M180 motorway which links with the M18 at J5, 16 miles west of the town centre. SITUATION The property is situated close to the junction of Cole Street and Fenton Street on the fringe of the pedestrianised section of Scunthorpe town centre. The Parishes Shopping Centre is situated adjacent to the property, and the principal shopping street, High Street, is close by. There are a variety of well known occupiers trading close by including Primark, Hinds Jewellers, Cash Generator and Deichmann Shoes, plus a host of local traders. DESCRIPTION The property is situated in a terrace and is of principally 2 storey brick construction with a pitched blue slate roof, and includes a full width modern aluminium/glazed shop front with double central entrance door. Modern sealed unit double glazed windows are installed. The building has been extensively refurbished and presents itself in very good condition. The property is let as a customer service centre and has been neatly fitted-out by the tenant to provide excellent open plan ground floor office and meeting space with rear toilet and staff facilities. Similarly at first floor level the accommodation has been neatly fittedout to provide a mixture of general and individual offices and meeting rooms plus additional toilet facilities. The fit-out also includes a passenger lift between floors. The fit-out specification throughout includes carpet tiles, suspended ceilings, neat decoration, modern lighting and comfort cooling units, all of which is to a high standard. Outside at the rear there is a small yard with parking for two to three cars. ACCOMMODATION The property has the following net lettable floor area:- Ground floor sq m 2534 sq ft First floor sq m 2605 sq ft Total sq m 5139 sq ft

3 TENANCY DETAILS The property is let to North Lincolnshire Homes Limited by way of separate leases of the ground floor and first floor. Both leases expire on 16 November 2024 and the total rent roll is currently 37,847 pax. The leases are on effectively full repairing and insuring terms and incorporate provision for rent reviews at the end of every third year by reference to the Retail Price Index. RENT REVIEW COMMENT The ground floor lease has rent reviews due on 17 November 2012 and every three years thereafter. The initial rent of 25,000 pa was reviewed with effect from 17 November 2012 to 28,347 pa. The subsequent review due on 17 November 2015 has not been activated. By reference to RPI the rent should have increased to 29,986 pa. The first floor lease has rent reviews on 16 July 2013 and every three years thereafter. The initial rent was 9,500 pa. Neither the rent review due 16 July 2013 or 16 July 2016 have been implemented. By reference to RPI the rent should have been revised from 16 July 2016 to 11,191 pa. If the rents were reviewed based on the RPI at May 2017 (the latest available figure) the rent payable would be 31,359 pa (ground floor), and 11,544 pa (first floor), a total of 42,903 pa. COVENANT INFORMATION In 2007 North Lincolnshire Council transferred its housing stock to North Lincolnshire Homes Limited. North Lincolnshire Homes Limited is a private business which trades as Ongo, and is the largest housing provider in North Lincolnshire offering quality affordable homes for rent and sale. They also provide a range of property management and maintenance services to private and business customers. The profit they make is re-invested into improving neighbourhoods and creating opportunities for local people. TENURE Freehold subject to the terms of the tenancy described herein. PROPOSAL We are instructed to seek offers in the region of 475,000 subject to contract. A purchase at this price would show the buyer a net initial return of 7.62% allowing for usual purchaser s costs at 4.54%. This is a reversionary situation and based on our calculation of the rent at the latest RPI figures as above would equate to a reversionary yield of 8.64%.

4 VAT The property is not elected for VAT purposes. ENERGY PERFORMANCE CERTIFICATES The property has an energy performance rating in Band D (96). A copy of the Energy Performance Certificate is available from the selling agents. FURTHER INFORMATION / VIEWING Via the sole selling agents - contact David Towler Tel: davidtowler@cartertowler.co.uk (REF: CDT.CM.17589) Details prepared August 2017

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