• Prime retailing pitch

• Ground floor let to Waterstones (Net Assets £63.4m)

• Rent rebased from £79,000pa to £65,000pa

• The Store has traded as a bookshop since 1997 (initially as Ottakar’s and then under the Waterstones brand after their takeover in 2006

• Vacant first floor offering a residential conversion opportunity

• Freehold

• £760,000, subject to contract

• Net Yield 8.12%

• Based upon 9% for the ground floor commercial income and £50 per sq ft for the vacant first floor.

The subject property occupies a prime retailing pitch within the heart of Barnstaple town centre on the High Street, in between the two entrances to the Green Lanes Shopping Centre. Totalling approximately 131,000 sq ft of retail and leisure space with over 40 units and a 400+ space car park, the centre has a range of stores including TK Maxx, Wilko, River Island and New Look.

Other surrounding occupiers include Santander (adjacent), Superdrug (opposite), Boots, Primark, JD Sports, Clarks, Greggs and The Body Shop.

The property also benefits from being in close proximity to Barnstaple’s historic Pannier Market, one of Britain’s largest indoor markets and a popular visitor attraction.

The property is arranged over ground and first floors. The ground floor comprises a retail unit which has been fitted out by the tenant, Waterstones, in their usual corporate style to provide a mainly open plan sales area with ancillary accommodation at the rear.

The first floor is vacant and was previously occupied by Ladbrokes. This accommodation sits over the front of the ground floor and benefits from a separate entrance via the High Street. It comprises an open plan trading area with ancillary accommodation.

The property has rear access for servicing and fire escape at ground and first floor via the service yard belonging to the shopping centre. There are permanent rights to use these routes.

Freehold.

The ground floor is let to Waterstones Booksellers Limited on effectively a full repairing and insuring for a term of 5 years from 16th January 2020, expiring on 15th January 2025.

The current passing rent is £65,000 per annum which, based on our analysis, equates to £56.50 Zone A.

The Property has been occupied by a bookseller since 1997 (initially as Ottakar’s and then under the Waterstones brand after their takeover in 2006). A lease renewal in November 2019 demonstrates Waterstones desire to remain in the property. The rent was rebased from £79,000 per annum to £65,000 per annum.

The first floor is currently vacant. Up until recently it was occupied by Ladbrokes who exercised a break option in their occupational lease dated 19th April 2022. The previous passing rent was £18,000 per annum.

The Tenant has the right to use a rear service yard area under the lease subject to payment of a service charge pursuant to a 1991 Deed of Grant.

Waterstones Booksellers Limited (Co. No. 00610095), has reported the following figures;

Waterstones was established in 1982 and is a leading retailer of books, stationery and other related products through a chain of bookshops in the United Kingdom, the Republic of Ireland, Isle of Man, Jersey, Holland and Belgium, and online through the Waterstones.com e-commerce website. According to its website the company employs 3,000 staff across over 280 bookshops. Waterstones sells coffee and food from cafes and restaurants within some of its shops, hosts public and private events and supports a large number of literary festivals.

Demand for books was strong immediately prior to the enforced closure of shops due to the Covid-19 Pandemic. After the closures, the online business performed strongly. The Company successfully repurposed the distribution centre as an online fulfilment operation and the overall impact on profitability was substantially mitigated by early action to curtail costs. For further information please visit www.waterstones.com.

The property is elected for VAT. We anticipate that the sale should be capable of being treated as a Transfer of Going Concern (TOGC).

1. An opportunity to acquire a freehold commercial property investment in the heart of Barnstaple town centre;

2. The property occupies a prime retailing pitch;

3. Ground floor securely let to Waterstones (Net Assets £63.4m);

4. Rent rebased from £79,000pa to £65,000pa;

5. Tenant has been in occupation since 1997 (as Ottakars with the lease being vested in Waterstones in 2014 after the renewal. They have subsequently renewed their lease in January 2020, demonstrating their commitment to this location;

6. Vacant self-contained first floor providing an opportunity to re-let or convert to residential use, subject to planning, to enhance value;

7. A purchase at the asking price will provide an investor with an attractive net initial yield and low capital value in relation to the upper parts;

8. Attractive lot size for an investor;

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