For Sale - Under OfferFreehold Retail Warehouse Investment

Wickes, Outer Circle Road, Lincoln, Lincolnshire, LN2 4HU

Description

The property is a purpose built retail warehouse of steel portal frame construction, with part brick and profile steel cladding, with customer car park, garden centre and storage compound.

ACCOMMODATION

Having measured the property in accordance with the prevailing RICS Code of Measuring Practice, we calculate that it provides the following floor area:

Ground Floor : 2,327 sq m  (25,049 sq ft)
First Floor : 81.3 sq m   (875 sq ft)

Total : 2,408.3 sq m (25,924 sq ft)

Site Area : 0.2 hectares (2 acres)

EPC Rating: 119 E

UPGRADING/IMPROVEMENT WORKS

The Vendor has appointed a building contractor to remodel the access into the car park from Outer Circle Road to allow entry and exit traffic movements to take place.  A copy of the approved scheme is available upon request.

In return for the sum of £194,325 plus VAT, the Tenant has programmed a scheme of internal and external upgrading works to include a refit of the store. Further details are available upon request.

The highway works will be completed prior to completion of a sale. The Landlord contribution will be deducted from the sale proceeds and held in an Escrow account and paid to the Tenant upon the completion of the works.

LOCATION

Strategically located at the junction of Outer Circle Road and Greetwell Road, surrounded by a mix of motor dealerships, trade counter occupiers and close to the busy Allenby Road Trading Estate.

The property now benefits from a direct link to the newly opened (December 2020) Lincoln Eastern Bypass which has opened up access to the affluent large residential settlements to the south of the city.

Lincoln has a catchment population of over 545,000 and is the County Town of Lincolnshire.

The city benefits from excellent road communications and is located 40 miles north east of Nottingham, 50 miles north of Peterborough and 48 miles south east of Sheffield.

PLANNING

We understand that the property has Planning Permission allowing the following range of goods to be sold:

“The sale of DIY, builders merchants and home improvements goods, furniture and furnishings, carpets, floor and wall coverings, electrical goods, bicycles and spare parts and motor accessories, boats and caravans, and garden supplies and accessories and for no other purpose in Class A1 of the Town & Country Planning (Use Classes) Order 1987”.

TENANCY

The property is Let to Wickes Building Supplies Limited for a term extended by way of a reversionary lease expiring 28th September 2031 at a rent of £259,100 per annum, on Full Repairing and Insuring terms, with the next rent review scheduled for 29th September 2026.

COVENANT STRENGTH

Wickes Building Supplies Limited provide an excellent covenant and have an Experian Rating of 100, representing a very low risk of business failure. 

                                              2017                  2018                   2019
Sales Turnover :    £1,236,400   £1,199,600     £1,292,400
Pre-tax Profit :          £   56,000         £ 25,800           £ 49,200
Net Worth :               £ 239,900      £ 209,700        £ 250,800

Further details are available upon request.

PRICE

Offers are invited in excess of £3,800,000 for the Freehold interest, which would show a net initial yield of 6.4% after allowing for standard Purchaser’s costs.

The property is elected for VAT and the sale will be treated as a TOGC.

AGENT’S NOTE

The property is subject to covenants restricting the use of the site to the following:

1. Retail - excluding pets or motor vehicles
2. Office
3. Light industrial
4. Warehouse

The covenant refers to allowing uses within the 1972 Use Classes Order, namely Classes I, II, III and X.

LEGAL COSTS

Each party is to be responsible for their own legal costs incurred in documenting the transaction.