A well-established neighbourhood shopping centre laid out to provide a Convenience Store operated as a Spar and 3 adjoining smaller retail units with parking for around 13 vehicles to the front and side of the property.
The site area is about 0.11 hectares (0.28 acres).
The property occupies a prominent location on Trinity Road within the popular seaside resort of Cleethorpes. The resort has a resident population of circa 40,000 and sits adjacent to the much larger town of Grimsby which lies about 2½ miles to the north west.
The surrounding area to the north, south, west and east comprises high density housing, with the Highgate Children’s Centre located a short distance to the north west. The seafront is located about 3/4 of a mile to the north east.
There is limited competition from other neighbourhood schemes in this area.
TOWN AND COUNTRY PLANNING
We understand that the property has consent for uses falling within Class A1 (Retail) and A5 (Hot Food Takeaway) of the Town and Country Planning (Use Classes) Order 1987 (as amended).
The property is not listed and nor is it in a Conservation Area.
The property will be acquired Freehold, subject to the existing tenancy agreements in place.
Full details of these are set out in the attached Tenancy Schedule. The Schedule also contains the rateable value for each unit.
Each unit is let on a Full Repairing and Insuring terms by way of a service charge.
The majority of the rental income (67.12%) is secured against the AF Blakemore & Son Ltd covenant, under a lease expiring in December 2028. The lease has RPI Linked rent review provisions compounded annually, subject to a 1% collar and 4% cap.
The remainder of the units are let to a range of local occupiers who have been in occupation for a number of years.
The total rental income from the property is £66,918 per annum.
The centre has historically had a low vacancy rate and the current WAULT to lease expiry is 6.81 years.
AF Blakemore & Son Ltd have a Creditsafe rating of 73/100 (very low risk). The company’s latest accounts for the year ending 30th April 2019 show it as having generated a turnover of £1,135,638,000, a net operating profit of £9,431,000, having shareholder funds of £78,505,000 and a net worth of £52,679,000.
£975,000 for the benefit of the Freehold interest. A purchase at this level would show a purchaser a net initial blended yield of 6.5%, based on standard acquisition cost.
The property is elected for VAT. However, the sale of the property will be treated as a TOGC and therefore VAT will not be payable on the purchase price.
Each party is to be responsible for their own legal costs incurred in documenting the transaction.