• Freehold retail investment opportunity in the principal agricultural centre of Lincolnshire

• Let to WH Smith (who have occupied for over 50 years)

• Highly secure income - Net Assets: £614m

• Tenant has committed to a new lease during COVID-19

• New 5 year lease from January 2021

• Rent recently rebased to 67% of previous rent, from £61,500 pa to £41,000 pa

• Prime town centre retailing pitch

• One of only two Post Office facilities in Central Boston

• £490,000, subject to contract

• 8.00% Net Initial Yield

The subject property is at the entrance to Boston’s prime pedestrianised retail pitch on Strait Bargate with the Pescod Square Shopping Centre directly accessible to the rear of the property.

Strait Bargate, Wide Bargate and Market Place combine to form the prime reatiling locations in Boston with the neighbouring 71,000 sq ft Pescod Square Shopping Centre further increasing footfall in the area. To the rear of the property is the historic Pescod Hall which dates from 1450. To the east of the property is both Cattle Market Car Park and Boston Car Park providing a positive amount of footfall from those using these facilities. Surrounding occupiers include Santander, Clintons, Specsavers and Next.

Every Wednesday and Saturday there is a market on Strait Bargate close to the property thereby driving additional footfall past the building.

The property comprises a terraced retail unit with extensive accommodation at ground floor level with staff and ancillary/storage accommodation on the first and second floors. The property benefits from a goods service door on the east side of the property. The property provides a typical retail width through to Zone D but then widens considerably which is very well suited for the Post Office at the rear.

Internally the unit has been fitted out to the typical corporate style of both WH Smith and The Post Office.

Freehold.

The entire property is let on a full repairing and insuring lease to WH Smith Retail Holdings Limited (t/a WH Smith & Post Office) for a term of 5 years from 15th January 2021, expiring on 14th January 2026. The lease is subject to a tenant only break option on 15th January 2025, subject to not less than 6 month’s notice.

The current passing rent is £41,000 per annum, which we equate to a Zone A of £43.29 per sq ft, allowing for £2.00 per sq ft on the first and second floors (as agreed at lease renewal).

As part of entering into a new lease, the tenant benefits from a rent-free period expiring on 15th October 2021. The vendor will “top-up” the income by way of an appropriate adjustment on the completion sum in order that a purchaser does not suffer an income shortfall.

We understand the tenant has been in occupation for over 50 years and entered into a lease renewal in 2021, demonstrating their desire to remain in the property. The rent has been rebased from £61,500 per annum to £41,000 per annum.

WH Smith Retail Holdings Limited (Co. No. 00471941) has reported the following figures:

WH Smith has a major High Street presence and operates over 1,700 stores, comprising circa 590 UK travel units, over 580 international outlets and over 560 High Street stores, as at 31 August 2020. The company currently employs approximately 11,695 people.

WH Smith’s offer is complemented in over 200 of their High Street stores with their partnership with Post Office Limited. This agreement has been in place since 2006 and permits customers to access the Post Office facility for seven days a week and longer trading hours, in line with WH Smith trading hours. (www.whsmithplc.co.uk).

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 retail investment in the heart of Boston town centre;

2. New letting at a re-based rent;

3. Let to the strong covenant of WH Smith Retail Holdings Limited (Net Assets £614m);

4. WH Smith have been in occupation for over 50 years and renewed their lease during COVID-19, demonstrating their continued commitment to the property;

5. The tenant is one of only two Post Office’s in the town centre and given its close proximity to public car parking, is a convenient facility for the local population;

6. A purchase at the asking price will provide an investor with an attractive net initial yield of 8.00%;

7. The internal configuration of the unit suits the tenants demands very well;

8. Attractive lot size for an investor.

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