GALLERY
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Summary
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A multi-let retail & office investment
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Located in an attractive, popular Cathedral City
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Prominent position directly opposite Hereford Cathedral
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45% of the income secured against HCR, a Top-70 UK law firm
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Active management opportunities
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Freehold
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£2,200,000, subject to contract
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8.44% Net Initial Yield
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Capital value of £141 per sq ft / £1,520 per sq m
Location
Hereford is an attractive Cathedral City situated on the River Wye, approximately 257 km (160 miles) north-west of London, 26 km (16 miles) east of the border with Wales, 43 km (27 miles) south-west of Worcester and 53 km (33 miles) north-west of Gloucester.
Hereford benefits from good road communications being served by the A49 (running from north to south), A438 (running from east to west) and A4103 to Worcester. Junction 11 of the M5 Motorway is approximately 56 km (35 miles) to the south-east and Junction 1 of the M50 Motorway is approximately 24 km (15 miles) to the south. In addition, the city is connected to the national railway network with a fastest journey time to London Paddington of 2 hours 40 minutes.
The City of Hereford with its iconic Cathedral and its numerous attractions is the major location in the county of Herefordshire for employment, administration, health, education facilities and shopping.
Situation
The property occupies a highly prominent corner position within the heart of Hereford city centre on Broad Street at its junction with King Street.
Hereford Cathedral is immediately opposite, therefore providing significant pedestrian footfall in and around the property. The Cathedral is home to the Mappa Mundi and Chained Library Exhibition which draws visitors and scholars from across the world. The Hereford Mappa Mundi is the largest medieval world map to survive and the Chained Library holds over 1,500 rare books, including 229 medieval manuscripts.
The property is adjacent to Hereford City Library and is also situated within the city’s central business area. Other occupiers on Broad Street include A-Plan Insurance, NatWest, Greggs and Oxfam.
The city’s principle shopping area is centred around High Town and High Street, a mere five minute walk to the north-east. British Land’s Old Market Hereford, a 310,000 sq ft open-air shopping centre is less than 0.5 miles to the north. Occupiers include Waitrose, TK Maxx, River Island, Odeon, Next, Jack Wills and H&M. Hereford’s other shopping centre, Maylords Orchards, is a short walk to the north-east and is home to retailers including Wilko, Boots, Sports Direct and Body Shop.
Description
The property comprises a three-storey mixed use building.
At ground floor the building offers seven retail/ office areas, five of which are currently occupied. These ground floor units are maintained in good condition, with frontages onto both Broad Street and King Street.
Off King Street there are double doors providing access to two upper floor offices occupied by two different tenants.
On the corner of King Street and Broad Street is the ground floor reception of Harrison Clark Rickerbys Solicitors (HCR). This well-established firm of solicitors occupy the ground floor area as well as the majority of office accommodation on both first and second floors. The offices are all well-presented with the tenant having fitted these out to meet their requirements.
At the rear of the property there are 11 parking spaces accessed off Aubrey Street. These spaces are included in the various leases of Thorpe House. Off the car park at lower ground floor level is a meter room where electric and gas meters for the various units can be found.
As shown from the aerial photographs, the surrounding properties are significantly higher than the subject property. Therefore, it is suggested that there is development potential, subject to appropriate consents.
Accommodation
The property has been measured by BKR Floor Plans and provides the following net internal areas:
| Unit 24A (Vacant) | ||
|---|---|---|
| Net Frontage | 4.11 m | 13’6” |
| Gross Frontage | 4.95 m | 16’3” |
| Zone A | 58.71 sq m | 632 sq ft |
| Zone B | 15.89 sq m | 171 sq ft |
| ITZA | 718 | |
| Total | 74.60 sq m | 803 sq ft |
| Unit 24B (Maless Barbers) | ||
| Net Frontage | 4.50 m | 14’9” |
| Gross Frontage | 5.03 m | 16’6” |
| Zone A | 30.10 sq m | 324 sq ft |
| Zone B | 19.79 sq m | 213 sq ft |
| ITZA | 431 | |
| Total | 49.89 sq m | 537 sq ft |
| Unit 26 (Café Bodega) | ||
| Net Frontage | 6.55 m | 21’6” |
| Gross Frontage | 6.86 m | 22’6” |
| Zone A | 40.13 sq m | 432 sq ft |
| Zone B | 25.27 sq m | 272 sq ft |
| ITZA | 568 | |
| Total | 65.40 sq m | 704 sq ft |
| Unit 27 (Vacant) | ||
| Net Frontage | 3.58 m | 11’9” |
| Gross Frontage | 6.17 m | 20’3” |
| Zone A | 31.12 sq m | 335 sq ft |
| Zone B | 21.55 sq m | 232 sq ft |
| ITZA | 451 | |
| Total | 52.67 sq m | 567 sq ft |
| Unit 29 (Pear-Laine Lingerie) | ||
| Net Frontage | 4.04 m | 13’3” |
| Gross Frontage | 4.80 m | 15’9” |
| Zone A | 28.71 sq m | 309 sq ft |
| Zone B | 32.98 sq m | 355 sq ft |
| Zone C | 4.27 sq m | 46 sq ft |
| ITZA | 498 | |
| Total | 65.96 sq m | 710 sq ft |
| Unit 30 (Framing Centre) | ||
| Net Frontage | 4.34 m | 14’3” |
| Gross Frontage | 5.56 m | 18’3” |
| Zone A | 28.80 sq m | 310 sq ft |
| Zone B | 28.06 sq m | 302 sq ft |
| Zone C | 1.49 sq m | 16 sq ft |
| ITZA | 465 | |
| Total | 58.34 sq m | 628 sq ft |
| Broad Street (HCR) | ||
| Basement | 6.13 sq m | 66 sq ft |
| Ground Floor | 99.22 sq m | 1,068 sq ft |
| First Floor (Suite 3, Broad Street) | 63.36 sq m | 682 sq ft |
| First Floor (Suite 4,Broad Street) | 124.11 sq m | 1,336 sq ft |
| Second Floor (Broad Street) | 125.04 sq m | 1,346 sq ft |
| Total | 417.86 sq m | 4,498 sq ft |
| 25 King Street, Suite 1 (Mobile Care) | ||
| First Floor | 125.51 sq m | 1,351 sq ft |
| 25 King Street, Suite 2 (Rees & Co) | ||
| First Floor | 165.73 sq m | 1,784 sq ft |
| King Street, Suites 3&4 (HCR) | ||
| Second Floor, Suite 3 | 129.60 sq m | 1,395 sq ft |
| Second Floor, Suite 3 | 241.54 sq m | 2,600 sq ft |
| Total | 371.14 sq m | 3,995 sq ft |
| TOTAL | 1,447.10 sq m | 15,577 sq ft |
A set of floor plans is available to download and the measured survey report will be re-addressed to a purchaser at a cost of £895 + VAT.
Rateable Value
| Accommodation | Description | Rateable Value |
|---|---|---|
| 24A King Street | Shop & Premises | £17,250 |
| 24B King Street | Shop & Premises | £11,000 |
| 26 King Street | Shop & Premises | £15,250 |
| 27 King Street | Offices & Premises | £12,750 |
| 29 Broad Street | Shop & Premises | £12,500 |
| 30 Broad Street | Shop & Premises | £13,000 |
| 29 Broad Street (Upper Floors) | Offices & Premises | £30,000 |
| 25 King Street (First Floor) |
Offices & Premises | £14,000 |
| Suite 3 | Offices & Premises | £10,750 |
| Suite 4 | Offices & Premises | £10,000 |
The Uniform Business Rate is 51.2 pence per pound for rateable values of £51,000 and above, and 49.9 pence per pound for rateable values below £51,000.
Tenure
Freehold.
Tenancies
The property is currently multi-let to seven tenants on eight leases in accordance with the attached tenancy schedule. There are four retail tenants and three office tenants.
Two ground floor retail units are currently vacant – 24A King Street and 27 King Street. The vendor will provide a 12-month rental guarantee on these units.
Therefore, an investor will benefit from a total income of £197,500 per annum.
Market Commentary
Hereford is the county City of Herefordshire. It is therefore the employment and shopping centre of the County. The local market was of course impacted by the coronavirus pandemic, but has seen strong recovery in the time since. Notably 29 Broad Street was successfully let to a retail occupier in December 2021, while the popular La De Kitchen have recently opened in the large former bank opposite Thorpe House having signed a long-term lease in January 2022.
The immediate area around Thorpe House is well established as the main business district of the City. Nearby there are a number professional occupiers such as estate agencies, but there are also retailers such as florists and high end clothing stores. The presence of on street parking, as well as the proximity of local landmarks such as Hereford Cathedral and the River Wye, mean this area of the City is expected to remain a strong location in the future.
Service Charge
The service charge budget for the year ending 25th March 2023 is £43,038. The Service Charge Accounts and the Service Charge Budgets are available to download.
Covenants
Harrison Clark Rickerbys Solicitors (HCR)
Harrison Clark Rickerbys Limited (Co. No. 07033248) has reported the following figures:
| 31st March 2021 | 31st March 2020 | |
|---|---|---|
| Turnover | £40,407,206 | £39,031,559 |
| Pre-Tax Profits | £8,659,073 | £5,071,647 |
| Net Assets | £13,465,039 | £11,212,868 |
With roots going back to 1796, Harrison Clark Rickerbys Solicitors (HCR) is an award-winning Top 70 UK law firm with more than 800 employees across 11 locations including London, Birmingham, Cambridge, Cardiff, Cheltenham, Hereford, Milton Keynes, Northampton, Thames Valley, Worcester and Wye Valley.
The Hereford office opened in 2017 following a merger with Gordon Lutton solicitors, creating the largest firm in the city. The Hereford office offers a wide range of services for both individuals and businesses. For personal issues, the company provides advice on family law, divorce law. Residential conveyancing, wills, trusts and estate planning. The Hereford team of solicitors also specialise in alternate dispute resolution and family mediation. For organisations in the area, their lawyers specialise in commercial law, commercial property, corporate law, employment, restructuring and insolvency and dispute resolution services.
The firm also boasts some of Herefordshire’s leading solicitors in agriculture and rural affairs, defence and security, education, construction and engineering, finance and financial services, health and social care and technology. For further information see www.hcrlaw.com.
Pear-Laine Lingerie Limited
Pear-Laine Lingerie is Hereford’s only independent lingerie boutique. The family-run company was incorporated in August 2021, therefore their first accounts made up to 31st August 2022 are not due until May 2023. The lease is guaranteed by Anna Barnes and a rent deposit of £3,600 is held by the Landlord.
La Bodega Hereford LLP
La Bodega is a family run café serving fresh homemade breakfasts, lunches and afternoon teas. For the year ending 31st March 2021 the company reported Shareholders’ Funds of £78,785.
Rees & Co Insurance Brokers Limited
Rees & Co specialise in business insurance, looking after the insurance needs of small to medium sized businesses. The company’s good long trading history and consistent growth has allowed them to develop strong working relationships with leading insurers and their membership of Compass Network, the UK's leading broker network gives them access to competitively priced cover that is not always available elsewhere. For the year ending 31st March 2022 the company reported Shareholders’ Funds of £341,518. For further information see www.reesinsurance.com.
Mobile Care
Mobile Care is part of Mobile Care & Domestic Services Ltd, and has been one of the preferred providers of home care services in Herefordshire since 1998. For further information see www.mobilecarehereford.co.uk.
30 Broad Street - Herbert & Minshall, t/a Hereford Framing Centre
Established in 1988, Hereford Framing Centre is a reputable, independent family-run business offering premium high-quality framing and mounting services across the Herefordshire area. For further information see www.herefordframingcentre.co.uk.
24B King Street – Ms Trumper, t/a Maless Barbers
Maless is a popular barbers shop which was opened in 2018 by two Herefordshire individuals who graduated from the London School of Barbering with years of experience running barbers’ shops in Gloucestershire.
The company accounts are also available to download.
VAT
The property has been registered for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
Proposal
We are instructed to seek offers of £2,200,000 (Two Million, Two Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 8.44%, assuming standard purchaser’s costs of 6.32% and a capital value of £141 per sq ft / £1,520 per sq m.
Please note that a purchaser will be re-charged the costs of the measured survey (£895 + VAT) and searches (£593.33 + VAT) which are provided in the data room.
Please note that a purchaser will be charged a Transaction Fee of £10,000 plus VAT.
Investment Considerations
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An opportunity to acquire a freehold mixed-use investment in an attractive, popular Cathedral City;
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Multi-let with 45% of the income secured against HCR, a Top-70 UK law firm;
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The property benefits from an attractive aspect overlooking Hereford Cathedral;
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Asset management opportunities;
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Development potential, subject to the necessary consents, with adjoining properties significantly higher;
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A purchase at the asking price will provide an investor with an attractive net initial yield;
Data Room and clicktopurchase®
Access to the data room and for the ability to purchase online with speed and ease, please click the clicktopurchase® “C” icon or the clicktopurchase® side bar. Purchasers will be able to access the complete legal package, clear verification and submit legally-binding offers to acquire the property.
Purchasers benefit from the trust, security and transparency provided by the platform. All activities, including the online contract execution, will form part of the electronic audit trail which is anchored in the clicktopurchase® Blockchain.
clicktopurchase® provides the opportunity for any investor, whether located UK or abroad, to uniquely purchase online with ease and certainty. To learn more about clicktopurchase®, click here.
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Contact Us
| Singer Vielle | +44 (0) 207 935 7200 | |
|---|---|---|
| Dale Henry | dale@singervielle.co.uk | +44 (0) 203 701 1356 |
| Neil Singer | neil@singervielle.co.uk | +44 (0) 203 478 9120 |
Vendors Solicitor
| Fladgate LLP | +44 (0) 785 204 0596 | |
|---|---|---|
| Julian Scharfer | jscharfer@fladgate.com | |
Joint Agent
| Sunderlands | +44 (0) 143 227 6202 | |
|---|---|---|
| James Dillon | james.dillon@sunderlands.co.uk | +44 (0) 785 467 9811 |
