2/4 East Street and Ditton Street Ilminster Somerset TA19 0AJ Somerset House 18 Canynge Road Clifton Bristol BS8 3JX 0117 923 9234 F 0117 923 9237 www.htc.uk.com Hartnell Taylor Cook LLP is a Limited Liability Partnership registered in England and Wales OC 313211 Offices in London, Bristol, Plymouth Hartnell Taylor Cook LLP is Regulated by RICS September 2013
INVESTMENT SUMMARY LOCATION Freehold multi-let retail and residential investment including 7 lock-up garages. Ilminster benefits from an affluent residential population. Prime pedestrianised pitch. Retail units are let to two strong national multiple retailers. Asset management and break up opportunities. We are instructed to seek offers of 1,000,000 (One Million Pounds,), representing a net initial yield of circa 7%. Ilminster is a thriving and attractive market town in South West Somerset, with a population of around 6,000. The town is situated some 12 miles east of Taunton and 14 miles from Yeovil. It benefits from good road communications situated on the intersection of the A303 (London to Exeter) and the A358 (Taunton to Chard and Axminster). There are currently no vacant retail units on East Street, or Silver Street, the main retail thoroughfare in Ilminster demonstrating that there is a high demand for retail space in this area, with a large number of unsatisfied requirements. SITUATION The property occupies a prominent site on the prime south side of East Street, Ilminster s main retailing pitch, at its junction with Ditton Street. Ilminster is supported by major retail occupiers including Coop, Boots, NatWest, Lloyds TSB and the Post Office. There is also a wealth of individual retailers, cafes and coffee shops, as well as additional service occupiers including McKinlays Estate Agent, Minster Estate Agents, Poole & Co Solicitors and Robert Stone Accountants. The subject property is in close proximity to a Tesco Superstore. There is limited off street free parking on East Street. Page 1
DESCRIPTION The property comprises two substantial properties situated at the end of a terrace of traditional brick construction with brick and part rendered elevations, arranged under pitched slate and tile clad roofs. This substantial corner block of property is arranged as retail accommodation on the ground floor, with storage/servicing at the rear, with 5 separately accessed self-contained residential apartments situated at first and second floor above. The flats are accessed via a separate rear staircase off Ditton Street, and comprise a mixture of 1, 2 and 3 bed apartments. The retail unit on the corner is occupied by Martin McColl s Convenience Store (2 East Street), with Boots Pharmacy (4 East Street) occupying the adjacent unit. The main entrance into the Boots unit is via the adjacent property (6 East Street), which is also occupied by Boots and held in separate ownership and does not form part of this sale. The property includes 7 lock-up garages accessed off Ditton Street, of brick construction arranged under pitched tile clad roofs. These are let to McColls, local occupiers and a number of the flat occupiers. PLANNING The property is situated within the Ilminster Conservation Area. 2 East Street (McColl s), and Flats 1-4 are Grade II Listed. 4 East Street (Boots) and Flat 5 (maisonette) are not listed. COVENANTS Boots UK Limited Boots is the UK s leading pharmacy led health and beauty retailer, with close to 2,500 stores from local community pharmacies to large destination health and beauty stores. Page 2
Smile Stores Limited Smile Stores are a wholly owned subsidiary of Martin McColl Retail Group, the leading neighbourhood retailer in the independent managed sector running 1,268 convenience and newsagent stores. McColl s operate 653 McColl s branded UK convenience stores as well as 615 newsagents branded Martin s. They have doubled their number of convenience stores over the last 7 years and are ranked 3 rd in number of owned convenience stores in the UK. FINANCIAL INFORMATION Smile Stores Limited Boots UK Limited 25/11/12 27/11/11 28/11/10 31/03/12 31/03/11 31/03/10 000 000 000 000 000 000 Turnover 57,221 55,526 55,817 Turnover 6,354,000 6,372,000 6,303,000 Pre-tax Profit 1,700 2,438 1,620 Pre-tax Profit 240,000 220,000 337,000 Net Worth 3,366 754-2,125 Net Worth 234,000 217,000 313,000 TENANCY SCHEDULE A Tenancy Schedule is attached Page 3
SUMMARY The property comprises a prominent well located retail/residential investment offering asset management opportunities including:- Re-gearing lease to Boots UK Limited. Driving residential and garage rents higher. Selling off individual residential units. Selling off garages as a whole or individually. 4 East Street was formerly two retail units offering the opportunity to split this element and let separately. There are no vacant retail units in central Ilminster, offering an excellent opportunity for rental growth. PROPOSAL We are instructed to secure offers of 1,000,000 (One Million Pounds) representing a net initial yield of circa 7% after costs. VAT The property is not registered for VAT and VAT is not payable on the purchase price. EPC EPC s available upon request. Page 4
VIEWINGS AND ENQUIRIES For further information or to arrange an inspection of this property, please contact. Ian Lambert BSc MRICS Partner Tel: 0117 946 4525 E-mail: ian.lambert@htc.uk.com Polly Goodman Trainee Surveyor Tel: 0117 946 4529 E-mail: polly.goodman@htc.uk.com Hartnell Taylor Cook LLP Somerset House 18 Canynge Road Clifton Bristol BS8 3JX Hartnell Taylor Cook LLP for themselves and for the vendor or lessor of this property, whose agent they are, give notice that: These particulars are set out as a general outline only for the guidance of intending purchasers or lessees and do not constitute part or whole of an offer or contract; All descriptions, dimensions, photographs, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but intending purchasers or lessees should not rely on them as statements or representations of fact and must satisfy themselves as to their correctness; No person in the employment of Hartnell Taylor Cook LLP has any authority to make or give any representation or warranty whatsoever in relation to this property or these particulars nor enter into any contract on behalf of the vendor or lessor; Unless otherwise stated, all prices, rents and other charges are quoted exclusive of VAT. Any intending purchasers or lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction; All plant, machinery, equipment, services and fixtures and fittings referred to in these particulars were present at the date of publication. They have not been tested and we give no warranty as to their condition or operation; No responsibility can be accepted for any expenses incurred by intending purchasers or lessees in inspecting properties that have been sold or withdrawn; Hartnell Taylor Cook LLP is a Limited Liability Partnership registered in England and Wales OC 313211. Page 5
Tenancy Schedule 2/4 East Street and, Ditton Street, Ilminster, Somerset, TA19 0AJ Address Tenant Description Area sq ft Lease Rent per annum Comments 4 East Street Boots UK Limited Retail GF sales 1,184 GF rear anc 603 10 years from 17/12/2010 22,000 Rent increases to 22,500 pa on 17/12/2013 Tenant option to break 17/12/2015 2 East Street Smiles Stores Limited Retail GF sales 1,175 GF rear sales 778 GF anc 327 25 years from 03/11/1994 18,000 Number 1 Mr Aldridge & Miss Maber 2 bed flat Assured shorthold tenancy 6,300 One month deposit held Number 2 Number 3 Number 4 Mr P Thomas 3 bed flat Assured shorthold tenancy 6,000 Rent hasn t been increased for 3 years 1 bed flat Assured shorthold tenancy 4,500 New tenant occupying 30/09/2013 Mr Carvell 1 bed flat Assured shorthold tenancy 4,800 One month deposit held Number 5 2/3 bed maisonette Assured shorthold tenancy 8,100 Newly refurbished in negotiation with potential tenant. 7 Garages Various 7 single storey garages Licences 3,640 Each garage is let at 10 per week Total 73,340 Hartnell Taylor Cook LLP is Regulated by RICS Page 1 of 1 Property 2/4 East Street &, Ditton Street, Ilminster, Somerset, TA19 0AJ September 2013
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