A well established neighbourhood shopping centre laid out to provide a Spar convenience store and 6 smaller units, let to a variety of retailers including regional bakers, Cooplands. Other operators within the centre include a variety of take-aways and a hairdressers.
The units sit around the rear of the front part of the site, with a tarmac surfaced car park serving these located to the front. There is a further car parking area to the rear of the units served off Pinfold Lane.
In total the site area extends to just under 1 acre (0.40 hectares).
The property occupies a prominent location on Waltham Road in the affluent suburb of Scartho, which lies to the south of Grimsby/Cleethorpes.
The character of the surrounding area is residential in nature with the housing being predominantly good quality detached private dwellings.
Grimsby town centre is located approximately 2 miles to the north and Cleethorpes about 3 miles to the north east. Scartho is a popular suburb of Grimsby/Cleethorpes with a population of circa 11,000.
There is limited competition from other neighbourhood centres in the vicinity of the property.
ACCOMMODATION & EPCS
See the attached Schedule for details of the accommodation for each unit together with the EPC rating for each.
TOWN AND COUNTRY PLANNING
We understand that the property has consent for uses falling within Classes A1 (Retail), A2 (Financial & Professional Services) and A5 (Hot Food Take-away) of the Town and Country Planning (Use Classes) Order 1987 (as amended).
The property is not listed nor is it situated within a Conservation Area.
The property will be acquired Freehold, subject to the existing tenancy agreements in place.
Full details of these are set out on the attached Schedule. This Schedule also contains the rateable value for each unit.
Each unit is let on a Full Repairing lease via a service charge.
The total rental income from the property is currently £138,479 per annum increasing to £158,480 per annum on the letting of the vacant unit.
The centre has historically had a low vacancy rate and the current WAULT is 7.06 years.
As can be seen in the Schedule attached, the majority of the rental income (55%) generated by this investment is secured against the AF Blakemore & Son covenant, on a lease expiring in December 2028. The lease has RPI Linked rent review provisions compounded annually, subject to a 1% collar and 4% cap.
AF Blakemore & Son Ltd have a current Creditsafe rating of 73/100 (very low risk) and the latest accounts for the year ending 30/04/2019 show the Company having a turnover of £1,135,638,000, generating an operating profit of £9,431,000, having shareholder funds of £78,505,000 and a net worth of £52,679,000.
Further details are available on request.
Offers are invited in excess of £2,000,000 for the benefit of our client’s Freehold interest.
A purchase at this level would show a purchaser a net initial blended yield of 7.46% on the ERV, based on the standard costs.
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.