RETAIL & RESIDENTIAL INVESTMENT 44-46 High Street, Lyndhurst, Hampshire, SO43 7BG
Investment Summary Lyndhurst is an attractive village in the heart of the New Forest National Park. Prime position along the High Street. Modern detached mixed use retail and residential block. Freehold. A combined 1356.9 sq ft (126.1 sq m) of retail space let to two tenants, Pages of Lyndhurst and Kards and Kapers (Southern) Limited. 44 High Street is let on a 20 year effective FRI lease from 17th May 2011, at a rent of 17,000 pa. 46 High Street is let on a 10 year effective FRI lease from 19th July 2016, at a rent of 15,000 pa with fixed uplifts. Five residential apartments, two let on ASTs and three currently vacant, providing a gross rent of 12,120 pa, and a reversion to 28,320 pa (based on previous rents). Asset management potential. The current rental income of 44,120 pa, and an ERV of 67,420 pa. Offers in excess of 800,000 (Eight Hundred, Thousand Pounds), subject to contract and exclusive of VAT. This reflects a net initial yield of 5.23% and an estimated reversionary yield of 8%, assuming net purchaser s costs of 5.19%. 2
Location Lyndhurst is an attractive village, situated in the heart of the New Forest National Park. It has a population size in excess of 3,000 and is a popular tourist destination with many independent shops, art galleries, cafés/ restaurants, museums, pubs and hotels. Lyndhurst is situated approximately 9 miles to the west of the Southampton and about 20 miles to the east of Bournemouth. Ashurst railway station is approximately 2.5 miles to the east, which provides regular direct rail services to Southampton, Bournemouth and London. Lyndhurst is the meeting point of the A35 and A337. The A35 links Southampton to Bournemouth and the A337 runs between Lymington (which houses a ferry port for the Isle of Wight) and Cadnam (Junction 1 of the M27). Lyndhurst 3
Situation 44-46 High Street forms part of the High Street (A337/A35) which is the principal retail pitch in Lyndhurst and is a thoroughfare for both pedestrian and vehicle traffic through the village. The property is situated at the exit to the main village car park, with 300 car spaces, and is adjacent to the New Forest Centre and Museum and a short distance from the village library and community centre. Local occupiers of note include Costa Coffee, Bugden s, Lloyds Bank, Maserati & Ferrari, Prezzo, Austin & Wyatt and Greene King. 4
Description The property comprises a modern detached retail and residential building of brick built construction under a pitched tiled roof. The ground floor retail units benefit from glazed floor to ceiling shop fronts. Internally, the property provides 1,356.9 sq ft (126.1 sq m) of retail space to the ground floor, which is divided to provide two self contained retail units. To the first and second floor there are five self contained residential apartments accessed from the rear via an external staircase. Apartments 1 to 4 each have two bedrooms, a living room, bathroom and kitchen. Apartment 1a has a bedroom, lounge with kitchenette and bathroom. Externally there are bin stores and a rear car parking area for at least 4 cars. Accomodation Schedule of commercial areas: Description Sq ft Sq m ITZA 44 High Street (Pages) 792.2 73.6 508.9 46 High Street (Kards & Kapers) 564.7 52.5 487.8 Total Retail Area 1,356.9 126.1 Measured on an NIA basis. 5
Tenancies Unit 44 is let to Pages of Lyndhurst by way of an effective full repairing and insuring lease for a term of twenty years from 17th May 2011. There are break clauses and rent reviews after every 5th year of the term. The passing rent is 17,000 pa, which equates to a Zone A rate of 33.40 psf. Unit 46 is let to Kards and Kapers (Southern) Limited by way of an effective full repairing and insuring lease for a term of ten years from 19th July 2016. There is a break clause and rent review after the 5th year of the term. The current passing rent is 15,000 pa rising in increments to 17,000 pa from 18th July 2020, which equates to a Zone A rate of 34.85 psf. Two of the five residential apartments are let on Assured Shorthold Tenancies; the three remaining apartments are vacant providing potential for refurbishment. Covenant Information Kards and Kapers (Southern) limited trading as Kards and Kapers (registration number 09853355). The company was established in November 2015 and is an independent retailer of cards and gifts for special occasions. Pages of Lyndhurst was established in 1991 and is a family run business which is open 7 days a week selling novelty gifts, food, flavoured teas, coffees and alcoholic beverages. Tenancy Schedule Unit Tenancy Description Passing Rent/ERV pa 44 High Street Effective FRI 20 year lease expiring 16th May 2031 Ground floor retail unit 17,000 46 High Street Effective FRI 10 year lease expiring 18th July 2026 Ground floor retail unit 15,000 rising to 17,000 in 2020 Apartment 1a Periodic AST from 21.11.2012 1 bedroom apartment 5,100 Apartment 1 Vacant 2 bedroom apartment 7,080* Apartment 2 Vacant 2 bedroom apartment 7,500* Apartment 3 Periodic AST from 28.03.2015 2 bedroom apartment 7,020 Apartment 4 Vacant 2 bedroom apartment 6,720* Total Passing 44,120 ERV 67,420 *Previous Rental Values 6
Service Charge The commercial tenants are responsible for a set proportion of the buildings maintenance and insurance, payable by way of a service charge. The landlord is responsible for the residential element of the building. Further information is available in the data room. VAT The property not is elected for VAT. EPC The commercial unit has two energy performance ratings of C with scores of 61 and 72 and the residential units each have D ratings with scores of 68, 61, 72, 73 and 70. Copies are in the data room. Proposal Offers are sought in excess of 800,000 (Eight Hundred, Thousand Pounds), subject to contract and exclusive of VAT. This reflects a net initial yield of 5.23% and an estimated net reversionary yield of 8%, assuming purchaser s costs of 5.19%. Further information To arrange inspections contact: Julian Walker jwalker@vailwilliams.com 023 8082 0905 07836 774 406 Robert Lee rlee@vailwilliams.com 023 8082 0920 07880 362 951 MISREPRESENTATION ACT 1967 Vail Williams as for the vendors themselves give notice that: 1) These particulars do not constitute an offer, or contract or any part thereof. 2) The statements contained in the particulars are made in good faith but are issued without responsibility on the part of Vail Williams or vendors and are not to be relied upon as statements or representations of fact. 3) Intending purchasers or lessees must satisfy themselves by inspection or otherwise as to the correctness of each of the statements made herein. 4) The vendor does not make or give, nor is Vail Williams or its staff authorised to give, any representation or warranty in respect of the property. 5) All negotiations are subject to contract and exclusive of VAT unless otherwise specifically stated. Sep 2016. 7