Description
The property comprises a substantial mixed use retail/office investment situated in a very strong secondary trading location on Lincoln High Street, close to a wide variety of national retail multiples.
The property is laid out to provide a ground floor and basement retail premises and a separate self-contained office suite on the first and second floors, with direct access from the High Street.
The property has a full width glazed frontage to the High Street and is sandwiched between Caffè Nero to the south and to the north by Carousel, a large bar and entertainment venue.
TENURE
The property is available For Sale Freehold, subject to the two Tenancy Agreements that are currently in place. The details of these are as follows:
Retail Unit laid out over Ground Floor and Basement Let to Luxury Leisure Limited trading as Admiral Casino (Company number 02448035) on a 10 lease that commenced on 29 July 2023, subject to an upward only rent review on 29 July 2028. The passing rent is £67,500 per annum and the lease is drawn on the equivalent of Full Repairing and Insuring terms by way of a Service Charge.
Upper Floors
Let to Louise White trading as Body Lipo on a 7 year lease, which commenced on 11th August 2020. The current rent of £10,644 per annum is due to increase to £11,430 per annum from 11th August 2024, £12,216 per annum from 11th August 2025 and then £13,000 per annum from 11th August 2026. The lease is drawn on the equivalent of Full Repairing and Insuring terms by way of a Service Charge. The two leases have a WAULT to lease expiry of circa 8 years and 2 months.
COVENANT STRENGTH
The tenant of the ground and basement, Luxury Leisure Limited, have a Creditsafe rating of 99A (very low risk).
The latest set of trading accounts for the company for the year end 31 December 2022 report a turnover of £111,269,288, an operating profit of £15,090,483 and shareholder funds of £45,911,971.
The tenant of the upper floors provides a local covenant but has been trading from the property for many years.
PRICE & VAT
The Vendors are seeking a price of £950,000 for the property, subject to the tenancies set out above which, after standard acquisition costs, reflect a Net Initial Yield of 7.94% and an equivalent yield of 8.43%.
We understand that the property is elected for VAT. Therefore, VAT will be charged on top of the purchase price.
However, the Vendors are happy to consider a sale by way of a TOGC.
TOWN & COUNTRY PLANNING
We understand that the property has consent for the current uses falling within a Sui Generis use in respect of the ground floor and basement casino unit and Class E (Commercial, Business and Services) of the Town and Country Planning (Use Classes) Order 1987 (as amended 2020) for the upper floors.
The property is not Listed but is situated within a Conservation Area.
Interested parties are advised to make their own investigations with the Local Planning Authority, City of Lincoln Council, should they have any queries with regard to the planning position.
LOCATION
The property is situated in a very strong secondary trading location at the northern end of Lincoln’s pedestrianised precinct. Nearby retailers include House of Fraser, Blacks, Poundland and Greggs, as well as a good range of national restaurant operators, including Caffè Nero, TGI, Walkabout and Mowgli. The 100% prime retail pitch is situated about 100 metres to the south, running south from The Stonebow.