Description
Multi-let restaurant investment situated in prime location on Lincoln City Centre Leisure Circuit.
Units Let to Prezzo, Nando’s and Lincoln Burger Limited, trading as Handmade Burger.
Nearby Units let to Ask, Zizzi, Wagamama, The Square Sail and an Odeon Multi Screen Cinema.
Total rental income £265,100 per annum.
WAULT - 10 years and 8 months.
Purchase price £3.25 million - reflecting a net initial yield after standard acquisition costs of 7.65%.
OVERVIEW
A substantial Grade II Listed converted garage, designed by locally renowned Architect, Sam Scorer, and constructed in 1959 for the Lincolnshire Motor Company Ltd.
The building is Listed for amongst other reasons its hyperbolic paraboloid roof, which is one of a number of buildings in the area designed by Sam Scorer around this time. The property was converted in the mid-2000s by local developers, Lindum, to create three restaurant units, which are currently let to Prezzo, Nando’s and Lincoln Burger Ltd, trading as Handmade Burger.
The units are predominantly laid out on ground floor only, with a small element of first floor space in the corner unit occupied by Prezzo.
Each unit has an attractive outside seating area to the front, facing southwards over Brayford Pool, towards the University of Lincoln’s main City Campus.
Both Nando’s and Prezzo have been the only occupiers of their units since completion of the refurbishment works in the mid-2000s.
Mirroring the market conditions we are seeing on a wider national level within the restaurant/casual dining sector, since coming out of various lockdowns at the start of 2022, the market in Lincoln has recovered quickly and there now exists quite a number of outstanding restaurant requirements, from a mix of top end restaurant operators within the City.
LOCATION
The property enjoys a high profile and prominent position on Brayford Wharf North, the prime leisure destination on the City of Lincoln Leisure Circuit. Nearby occupiers include amongst others Wagamama, Ask, Zizzi, Square Sail and a 9 screen Odeon Cinema.
The Brayford Pool has developed over the past twenty years into the prime leisure pitch within Lincoln City Centre, enjoying an attractive waterside location opposite the University of Lincoln City Campus.
Lincoln is the administrative and main shopping centre for the county of Lincolnshire and is ranked 4th in the East Midland Experian Rankings, behind Nottingham, Leicester and Derby. It is a famous Cathedral City, with Lincoln Cathedral recognised as one of the finest examples of Gothic architecture in Europe and attracts over 3 million tourists each year.
The City has an estimated catchment population of circa 550,000 and an established total catchment spend of £984.40 million.
It is also a growing University City, with close to 15,000 students and academic staff based at the City’s main campus, contributing an estimated £250 million to the local economy.
PLANNING
The property has a long established Planning Permission for its current use as 3 restaurant units, which is a use falling within Class E (Commercial, Business and Service Uses) of the Town and Country Use Class Orders 1987, (as amended in 2020).
The property is also Grade II Listed and situated within a Conservation Area.
TENANTS
1 Prezzo Trading Limited
Originally set up in 2000, Prezzo is one of the best known restaurant brands in the UK with 150 stores across the country employing close to 3000 people.
2 Nando’s Chickenland Limited
Trading from over 450 restaurants in the UK, Nandos is one of the largest restaurant operators in the Country. The Company’s last set of trading accounts prior to Covid reported a turnover of £801,490,000, a net profit of £53,666,000 and net assets/shareholder funds of £155,959,000.
3 Lincoln Burger Limited, T/A Handmade Burger Following the recent closure of Handmade Burger, discussions are ongoing with a number of national operators interested in taking a new lease of the building on better terms than one currently in place. Further information is available on request.
PRICE
The Freehold interest in the property is being offered for sale, subject to the 3 tenancies referred to on the previous page, at a price of £3,250,000.
A purchase at this level would provide a Net Initial Yield of 7.65% for the purchaser after allowing for standard acquisition costs.
VAT
The property is elected for VAT. However, the vendors are prepared to consider a sale of the property by way of a TOGC.