Ground Floor, Orchard House, Commercial Road, Southampton SO15 1GG

Transcription

1 Prominent City Centre Retail For Sale Ground Floor, Orchard House, Commercial Road, Southampton SO15 1GG

2 INVESTMENT SUMMARY Virtual freehold 999 years Southampton Central Rail Station within walking distance Situated adjacent to the Station Quarter regeneration project The ground floor of Orchard House comprising two large recently developed retail units totalling 8,515 sq ft (791 sq m) Newly let to Nisbets Plc & Reed Specialist Recruitment Ltd Total of 13 designated private car parking spaces for both retail units Strong tenant covenants Total Income: 105,000 per annum Price: 1,350,000 (one million three hundred and fifty thousand pounds) subject to contract Net Initial Yield: 7.51% after purchaser s costs of 5.5% The property is registered for VAT. VAT will be payable on the purchase price unless acquired by way of a transfer of a going concern

3 LOCATION Southampton is a large coastal town located in the south west of England with a population of over 235,000 people. Conveniently located in the heart of Southampton city centre the property is situated on Commercial Road an access road between Hill Lane to the west and Cumberland Place to the east. The property benefits from good transport links and road communications with the A33, M27 and M3 all in close proximity. Direct access is afforded via Mountbatten dual carriageway to the M27 towards the west and M3 further north which heads towards south west London. Southampton Central Station is situated 200 metres walking distance from the retail premises and provides regular services into London Waterloo. SITUATION The property is situated in a prominent position on the corner of Commercial Road and Morris Road within a vibrant mixed use location. The retail premises are strategically located on Commercial Road and benefit from being situated 200 metres walk to Southampton Central Station, several retail units and recognised local attractions such as the Mayflower Theatre. Locally, the area is populated with numerous occupiers that include national organisations such as Bond Dickinson, PwC, Old Mutual Wealth and Maritime & Coastguard Agency. Most Recently Commercial Road has benefitted from the completion of the newly developed Mayflower Halls development. A 70 million scheme providing over 1,000 units of student accommodation. Maritime & Coastguard Agency Offices Old Mutual Wealth Offices Commercial Road PwC & Bond Dickinson Offices Southampton Central Station Mayflower Theatre Mayflower Halls

4 DESCRIPTION Unit 1 Comprises an A1 retail unit approximately 5,307 sq ft with frontages onto Commercial Road and Morris Road, occupied by Nisbets Plc. Internally, the retail unit has been fitted out to a trademark Nisbets layout, with an open plan retail sales area covering the majority of the floor plate. Ancillary to the main sales area is a disabled access compliant WC, staff changing room, staff office, kitchen and storage room. The specification of the premises includes a laminated floor finish, painted plaster walls and ceilings, comfort cooling cassettes, air conditioning, Cat II fluorescent strip and tracked spot lighting. To the rear of the property there are 8 private car parking spaces designated to Unit 1. UNIT 1 NISBETS Unit 2 Comprises a A2 retail unit approximately 3,208 sq ft with a frontage onto Commercial Road, occupied by Reed Specialist Recruitment. Similarly to Unit 1 internally the retail unit has been fitted out to a trademark Reed Specialist Recruitment layout with a designated reception area and open plan office configuration. Ancillary to the central office area are four WC s, large partitioned meeting room, several smaller partitioned meeting rooms and kitchen with canteen area. The current layout provides accommodation for over 23 designated desks. The specification of the retail unit includes a laminated floor finish to the front reception area, carpeted flooring throughout the remainder of the office, painted plaster walls, suspended ceilings, air conditioning and Cat II fluorescent strip lighting throughout. To the rear of the property there are 5 private car parking spaces designated to Unit 2. UNIT 2 REED SPECIALIST RECRUITMENT

5 UNIT 1 MAIN SALES AREA ACCOMODATION Both retail units have been measured in accordance with the RICS Code of Measuring Practice (6th edition) to provide the following net internal floor areas. Retail Unit Floor Sq Ft Sq M Unit 1 Ground 5, Unit 2 Ground 3, UNIT 2 OPEN PLAN OFFICE AREA Total 8, TENURE 999 year lease from Stonewater Ltd dated the 18th February 2014 at a peppercorn ground rent.

6 Unit 1 TENANCIES Unit 1 is let to Nisbets Plc for a term of 10 years from 20 th August 2015 at a rent of 60,000 per annum. The lease contains full repairing and insuring terms, a provision for a rent review on the 5 th year of the term and service charge recovery for the common areas. The tenant has an option to break after the 5 th year of the term and there is also a service charge cap of 3,000 plus VAT per annum for the maintenance of the common areas. Unit 2 Unit 2 is let to Reed Specialist Recruitment Ltd for a term of 5 years from 30 th October 2015 at a rent of 45,000 per annum. The lease contains full repairing and insuring terms with service charge recovery for the maintenance of the common areas. There is an agreement that through the duration of the lease Reed Executive Ltd is the designated guarantor. The tenant has an option to break after the 3 rd year of the term. UNIT 2 REAR OFFICE AREA COVENANTS Nisbets Plc is one of the largest catering equipment companies in the UK and Europe with over 500,000 customers globally. This store in Southampton forms part of a national coverage that spans over 15 stores employing in excess of 600 in store employees. Nisbets have an Experian rating of 100 and a very low risk rating. A credit report is available in the data room. Reed Specialist Recruitment Ltd is a bespoke provider of recruitment opportunities and solutions to a customer base of over 7 million people. Reed currently operates from 350 offices globally and employs over 3,000 people. The Reed office on Commercial Road is the primary branch in Southampton. Reed Specialist Recruitment Limited have an Experian rating of 77 and a below average risk rating. A credit report is available in the data room. UNIT 2 RECEPTION UNIT 1 MAIN SALES AREA COMMERCIAL ROAD

7 SITE PLAN UNIT 1 DEMISE UNIT 2 DEMISE WHOLE SITE PLAN ENTRANCE TO REAR CAR PARK Unit 2 Demise Unit 1 Demise UNIT 2 CAR PARKING

8 Proposal Price: 1,350,000 (one million three hundred and fifty thousand pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 7.51% after purchaser s costs of 5.5 %. VAT The property is registered for VAT. VAT would be payable on the purchase prices unless acquired by way of a transfer of a going concern. EPC Unit 1 EPC rating of 49 (B) and Unit 2 EPC rating 47 (B). EPC documents available in the Data Room. Data Room Documentation relating to the property is available in the Data Room access available on request. Please contact Liz Dixon: ldixon@vailwilliams.com Further Information All inspections must be arranged through joint agents Vail Williams & Holt Consult Julian Walker jwalker@vailwilliams.com Arbnor Salihi asalihi@vailwilliams.com Vail Williams LLP Meridians House 7 Ocean Way, Ocean Village Southampton, SO14 3TJ Roger Holt roger@holtconsult.co.uk Vail Williams & Holt Consult joint agents Misrepresentation Act 1967 Vail Williams for themselves and for the vendors or lessors of this property, whose agents they are, give notice that: 1. The particulars are set out as a general outline only for the guidance of intended purchasers or lessees and do not constitute nor constitute part of an offer or contract. 2. All descriptions, dimensions, reference to condition and necessary permissions for use and occupation, and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them. 3. No person in the employment of Vail Williams has any authority to make any representation or warranty whatsoever in relation to this property. Finance Act 1989 Unless otherwise stated, all prices and rents are quoted exclusive of Value Added Tax (V.A.T.). Any intending purchasers or lessees must satisfy themselves independently as to the incidence of V.A.T. in respect of any transaction. January 2016