• Town centre investment opportunity

• Three-unit retail parade in a pedestrianised retail pitch in close proximity to The Meridian Shopping Centre

• Producing a gross rent of £42,000 per annum

• 65% of the income from Charity organisations

• £250,000, subject to contract

• 13.85% Net Initial Yield

• 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

Havant’s retail offering is split between West Street, The Meridian Shopping Centre and the Solent Retail Park to the south-west of the Town Centre. The subject property is situated between the West Street entrance to the Meridian Centre and the major Solent Retail Park and Central Retail Parks where occupiers include Tesco Extra, Aldi, Wickes, M&S and Sports Direct.

The property is located in a prime position on the pedestrianised element of West Street with nearby occupiers including Greggs, Santander, Boots, Poundland and Superdrug. Havant Street Market takes place on a Tuesday and Saturday and is located just 20 yards (25 metres) from the property on West Street.

The property comprises a terrace of three self-contained shops with retail accommodation on the ground floor and ancillary accommodation on the first floors. Each unit benefits from rear access via Bulbeck Road. 7A West Street benefits from an extensive return frontage onto West Street Precinct which provides direct access to the Bulbeck Road (West Street) car park with some 400 spaces.

The property is held under three separate Titles on a co-terminous head lease from the Council of the Borough of Havant for a term of 125 years from 25th December 1983, expiring 24th December 2108 (88 years unexpired) at a ground rent of 14.50% of the rental value.

The rent is to be reviewed 5 yearly. We understand the review clause assumes that “a term equal to the residue then expired of the term of this Lease”, almost eliminating the risk of uplifts at rent reviews in the foreseeable future.

The current rent payable under the head lease is £6,489 per annum.

The property is currently let as follows;

Summary;

7 West Street
Let to Trustees of the Brent Lodge Bird and Wildlife Trust for a term of 5 years from 25th December 2017, expiring on 24th December 2022. The current passing rent is £13,500 per annum which, based on our analysis, equates to £33.60 Zone A, when applying £3.00 per sq ft to the first-floor accommodation.

7A West Street
Let to PDSA from 12th December 2013, expiring on 11th December 2023. The current passing rent is £14,000 per annum which, based on our analysis, equates to £31.50 Zone A, when applying £3.00 per sq ft to the first-floor accommodation.

7B West Street
Let to Mr Said Sulayman Isam (trading as Mr Simms Olde Sweet Shoppe) from 22nd December 2019, expiring on 24th March 2025. The current passing rent is £14,500 per annum which, based on our analysis, equates to £34.40 Zone A, when applying £3.00 per sq ft to the first-floor accommodation. The Seller holds a rent deposit of £3,500

Each tenant is liable for quarterly rent payments under the terms of their lease. The tenant of Unit 7B received a two-month credit against his Q4 2020 rent. The following table shows the recent rental payment history.

The property is held under three separate Titles with Units 7 and 7A being elected for VAT. We anticipate that the sale of this part should be capable of being treated as a Transfer of Going Concern (TOGC). Unit 7B is not elected for VAT.

We are instructed to seek offers in the region of £250,000 (Two Hundred and Fifty Thousand Pounds), subject to contract, reflecting a net initial yield of 13.85%, assuming standard purchaser’s costs of 2.58%.

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 £5,000 plus VAT.

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.

We have established relationships with a number of leading finance companies who are in a position to quote terms for suitable situations. To learn more, please visit our “Finance” section.