High Yielding, Long Income Investment For Sale
The Original Factory Shop | Clitheroe | BB7 1NA
£415,000
subject to contract
GALLERY
Summary
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To be sold by clicktopurchase® online auction - 13th June, 3:00pm
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Prominent position immediately opposite Lidl
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11.25 years unexpired lease term
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Fixed rental uplifts
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Let to The Original Factory Shop
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Trading from this property since 1999
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Guide Price £415,000, subject to contract
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8.5% Net Initial Yield
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Guaranteed Reversionary Yield:
• 9.3% in Aug 2019
• 10.3% in Aug 2024
Location
Clitheroe is a historic town in Lancashire, located approximately 48 km (30 miles) north of Manchester, 24 km (15 miles) north-east of Preston and 16 km (10 miles) north-west of Burnley.
The town benefits from good road communications being situated 1.6 km (1 mile) west of the A59 which in turn links with Junction 7 of the M65 Motorway some 11 km (7 miles) to the south. Clitheroe is connected to the national railway network with regular services to Preston (journey time 1 hour) and a fastest journey time to Manchester Victoria of approximately 1 hour 10 minutes.
The town is also near the Forest of Bowland, an Area of Outstanding Natural Beauty, and is often used as a base for tourists visiting the area.
Situation
The property occupies a prominent corner position fronting Shawbridge Street, at its junction with Taylor Street.
The property is immediately opposite a Lidl supermarket and adjacent to Clitheroe Football Club. A large Tesco superstore is less than 200 metres to the north-west and other nearby occupiers include Sainsbury’s, Homebase and Howdens. Clitheroe station is less than 0.8 km (0.5 miles) to the north-west.
Description
The property comprises a single storey building of brick construction set beneath a pitched roof. There is a customer car parking area to the front and side of the building.
Internally, the property has been fitted out by the tenant to their usual corporate style to provide a main retail area along with ancillary accommodation.
Accommodation
The property has been measured by BKR Floor Plans and provides the following Net Internal Areas;
| Ground Floor Sales | 555.63 sq m | 5,981 sq ft |
| Ground Floor Ancillary | 55.93 sq m | 602 sq ft |
| Total | 611.56 sq m | 6,583 sq ft |
A set of floor plans is available to download and the measured survey report can be re-addressed to a purchaser.
Tenure
The property is held on a part Freehold and part Long Leasehold basis.
The two 999 year long-leasehold elements have 842 years and 858 years unexpired respectively, with a combined nominal ground rent of £27 per annum.
Tenancy
The property is entirely let to The Factory Shop Ltd, (t/a The Original Factory Shop) at a passing rent of £36,676 per annum (£59.97 per sq m / £5.57 per sq ft).
The tenant has been in occupation since 1999 and such is their long term commitment to the property in August 2011 they entered into a reversionary Full Repairing and Insuring lease expiring 12th August 2029 (11.25 years unexpired lease term).
The lease benefits from the following fixed rental increases:
| 13th August 2019 to 12th August 2024 |
£40,343.60 per annum |
| 13th August 2024 | £44,377.96 per annum |
Covenant
The Factory Shop Ltd (Co. No. 4176887), has reported the following figures;
| 2nd April 2017 | 2nd April 2016 | |
|---|---|---|
| Turnover | £190,195,000 | £184,496,000 |
| Pre-Tax Profits | £4,735,000 | £6,337,000 |
| Exceptional Items | -£7,062,000 | -£322,000 |
| Profit after Exceptional Items | -2,327,000 | £6,015,000 |
| Shareholders’ Funds | £47,739,000 | £49,879,000 |
The Original Factory Shop was founded in 1969 and comprises around 200 ‘mini’ department stores across the UK, as well as a trading website. The business sells a wide range of branded and own sourced products across fashion, footwear, and household departments at significant discounts to a broad customer base. Stores are most often in market towns and tourist locations where they act as both a shopping destination and the major non-food retailer in the immediate locality. The group has continued its store opening program, with 5 new stores opened in the latest financial year. For further information please visit www.tofs.com.
VAT
The property has been elected for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
Proposal
Guide price £415,000 (Four Hundred and Fifteen Thousand Pounds), subject to contract, reflecting a net initial yield of 8.5%, rising to 9.3% in August 2019 and 10.3% in August 2024, assuming standard purchaser’s costs of 3.97%.
Investment Considerations
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The investment is let to an established tenant, The Factory Shop Limited - Shareholders’ Funds £47.7 million;
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11.25 years unexpired lease term;
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The lease benefits from guaranteed rental uplifts;
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The tenant has been trading from this property since 1999;
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The property occupies a prominent position within a popular market town;
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A purchase at the asking price reflects an attractive yield profile;
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The investment provides a purchaser with an attractive lot size.
DOWNLOADS
BROCHURE
Contact Us
| Singer Vielle | +44 (0) 207 935 7200 | |
|---|---|---|
| Neil Singer | neil@singervielle.co.uk | +44 (0) 203 478 9120 |
| Dale Henry | dale@singervielle.co.uk | +44 (0) 203 701 1356 |
| Ed Jeffs | ed@singervielle.co.uk | +44 (0) 203 701 1353 |
| Faye Langoulant | faye@singervielle.co.uk | +44 (0) 203 478 9122 |
| Louanne Malan | louanne@singervielle.co.uk | +44 (0) 203 701 1386 |
Vendor Solicitors
| Asserson Law Offices | +44 (0) 20 3150 1302 |
|---|---|
| David Prais | david.prais@asserson.co.uk |