• Busy and attractive south coast resort town

• Freehold retail investment opportunity with self-contained offices

• Let to Hays Property Services Ltd (Net Assets £10.3m)

• £45,000 per annum

• Prime position within affluent suburb of Westbourne

• Let until September 2026

• £540,000, subject to contract

• 8.0% Net Initial Yield

• Potential for extension (subject to consents)

• The property is sold with the benefit of a rent guarantee from the vendor to ensure an investor has no issues receiving income in light of the Coronavirus Act 2020 Part 1 Section 82

The subject property is situated within the affluent suburb of Westbourne, approximately 1.6 km (1 mile) west of Bournemouth Town Centre. A thriving area, often seen as the ‘fashion district’ of Bournemouth, Westbourne’s unique appeal has attracted a varied number of cosmopolitan restaurants, bars, delicatessens, cafes, food stores and boutique shops.

The subject property occupies a prominent position on Pool Road, in the centre of Westbourne. Nearby occupiers include Boots (adjacent), Bang & Olufsen, Iceland, Starbucks, Lloyds Bank and Subway.

The Milburn Road public car park is immediately to the rear, providing approximately 88 car parking spaces.

The property comprises a ground floor retail unit, along with offices on the first and second floors which are self-contained, benefitting from an independent rear access to the car parking area.

The property benefits from a substantial rear area and off-street parking, accessed via Milburn Road.

It is suggested that there is potential for future re-configuration / extension, subject to appropriate consents, to provide an ability to sell/independently let the rear office accommodation.

Freehold.

The entire property is let on full repairing and insuring lease to Hays Property Services Limited (t/a Hays Travel) for a term of 15 years from 29th September 2011, expiring on 28th September 2026.

The current passing rent is £45,000 per annum, equating to £38.75 Zone A. This is based upon £7.61 per sq ft on the first floor and second floor offices. There is an upwards only rent review on 29th September 2024.

The first and second floor offices are sub-let to Wexas Limited from 31st October 2019 until 20th September 2026 at £15,000 per annum (£7.61 per sq ft). The lease contains an option to determine on 6th February 2023 and 6th February 2025, subject to 6 months notice.

Hays are liable for quarterly rent payments under the terms of the lease of £11,250 + VAT, hence £13,500.

In respect of the March and June rents which are in arrears due to the “lockdown”, it has been agreed to accept repayment by the tenant monthly over twelve months, with the first instalment starting on 1st October 2020 and last 1st September 2021 (hence, £2,250 per month). For the quarterly rents due from September 2020 onwards, it has been agreed that rent will be paid monthly (£4,500 per month) on the 1st of each following month although Hays have paid the full quarter’s rent for December 2020.

Hence, receipts from Hays during 2020/2021 have been as follows:

Hence, the arrears as at 06/01/2021 are £18,000, consisting of 8 months of repayments. Arrears will vest with the vendor. We include within the legal package a full payment history including those relating to insurance premiums.

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

We are instructed to seek offers in the region of £540,000 (Five Hundred and Forty Thousand Pounds), subject to contract, reflecting a net initial yield of 8.0%, assuming standard purchaser’s costs of 4.86%.

Please note that a purchaser will be re-charged the costs of searches and surveys which are provided in the data room.

Please note that a purchaser will be charged a Transaction Fee of 1.0% of the Purchase Price plus VAT.

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