Freehold Leisure Investment - For Sale Investment Summary Prominent corner position in prime town centre leisure location Adjacent to Pizza Express Newly fitted cocktail bar and coffee house Ten-year term from August 2016 with no break Rent 68,000pa Rent Deposit and Personal Guarantees held Price 775,000 Yield 8.32% net Freehold (uppers sold off)
THE TOWN Darlington is a busy market town in County Durham and is located some 37 miles south of Newcastle-upon-Tyne and 63 miles north of Leeds. The town has excellent transport links being situated close to the A1(M) junctions 57, 58 & 59 and the A66(M). The railway station is on the East Coast Main Line, there being regular services to London and Edinburgh. SITUATION The property is located on a prominent corner position to the southern end of Skinnergate at its junction with Blackwellgate/Corniscliffe Road. The area is a popular location for bars and restaurants of all types including the adjacent Pizza Express and a number of independent establishments. Darlington s prime retail pitch is only a short walk from the property and the House of Fraser store on Blackwellgate is immediately visible from outside the property. ACCOMMODATION The unit was refurbished prior to the current letting; this included a new glazed frontage and entrance. The Bar unit offers the following approximate areas: Ground Floor 3,606 sq ft (335 sq m) Basement 3,014 sq ft (280 sq m) Total 6,620 sq ft (615 sq m) The upper parts were acquired on a long lease by Aveem Property Developments with the view of converting to residential but as yet no works have commenced. The previous use was offices. TENURE The property is held Freehold with the upper floors having been sold off on a 999-year peppercorn interest from May 2016. TENANCY The ground floor and basement have been let to Number One Champagne Bar Limited for a term of 10 years from 19.08.2016 on effective FR&I terms. There is to be a rent review to open market value after the 5 th year. RENT 68,000per annum. RENT DEPOSIT & PERSONAL GUARANTEES The Landlord holds a rent deposit of 39,000 +VAT (held until August 2018). The three original Directors of the tenant company have signed as personal guarantors to the lease. More details on request. TENANT COVENANT Number One Champagne Bar Limited (Company number 10268548) was set up in 2016 by three Directors who saw the potential for a new concept bar at the subject property. See https://www.numberonebar.co.uk Since opening, the bar has been a great success. Abbreviated accounts are available on request.
Planning The property is Listed Grade II and also lies within the Town Centre Conservation Area. EPC The property has a D Energy Performance Asset Rating. A certificate can be suppled on request. VAT It is assumed the sale and purchase can be treated as a TOGC PRICE & YIELD I have been instructed to seek offers of 775,000 (seven hundred and seventy five thousand pounds) subject to contract and exclusive of VAT. A purchase at this level would, after standard purchase costs, provide an attractive net initial yield of 8.32% MORE DETAIL For more detail or to arrange a viewing please contact the sole agent: Richard Fisk BSc (Hons) MRICS Consultant (Investment) Pudney Shuttleworth 31 Park Square West, Leeds, LS1 2PF DDI: 0113 203 1134 Mob: 07767 796788 rjf@pudneyshuttleworth.co.uk www.pudneyshuttleworth.co.uk
Freehold Leisure Investment - For Sale