Well-established neighbourhood shopping centre laid out to provide a parade of six retail units anchored by a Spar convenience store sitting towards the rear of the site, with an area of tarmac surface parking to the front and side. Servicing to the units is available to the rear.
The site area is about 0.19 hectares (0.46 acres).
The property occupies a prominent location on Hardys 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 approximately 2½ miles to the north west.
The surrounding area to the north-west and south of the centre comprises high density private housing, whilst to the east on the opposite side of Hardys Road is the Signhills Academy and beyond that the Cleethorpes Cricket Club.
The southern end of Cleethorpes seafront is a short walk to the north east. There is limited competition from other neighbourhood centres in the vicinity of the property.
ACCOMMODATION & EPCS
See the schedule attached 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), A5 (Hot Food Takeaway) and D1 (Non-Residential Institutions) 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 in the Schedule attached.
The total rental income from the property is currently £107,828.19 per annum.
The centre has historically had a very low vacancy rate and the current WAULT to lease expiring is 5.38 years.
All of the leases are drawn on full Repairing and Insuring Terms by way of a service charge.
The majority of the rental income (52.50%) is secured against the AF Blakemore & Son Ltd covenant, on a lease expiring in December 2028. The lease has RPI 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.
AF Blakemore & Son Ltd have a Creditsafe rating of 73/100 (very low risk) and the latest accounts for the year ending 30th April 2019 show it having generated a turnover of £1,135,638,000, 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 £1.35m for the benefit of the Freehold interest.
A purchase at this level would show a purchaser a net initial blended yield of 7.64%, based on standard acquisition 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.