• Town centre multi-let retail investment opportunity

• Highly prominent freehold parade

• Income well secured to established national & regional retailers

• Significant inward investment taking place now in the town centre

• Offers in the region of £1,800,000 subject to contract

• 10.6% net initial yield

The property is situated in a busy trading position on the south side of Warren Street which forms an extension of the town’s prime retail core connecting Merseyway and Princes Street to a Sainsbury’s and an Asda supermarket as well as Peel Centre Retail Park (www.peelcentrestockport). Other retailers in the immediate vicinity include Caffe Nero, Barclays, Halifax, JD Sports, Sports Direct and The Entertainer.

Merseyway is Stockport’s primary shopping centre. The scheme provides in excess of 28,614 sq m (308,000 sq ft) of retail accommodation and benefits from 835 car parking spaces. Merseyway is anchored by Boots, Marks & Spencer and Primark and also includes JD Sports, New Look, Next and Top Shop.

Merseyway Shopping Centre was acquired by Stockport Borough Council in April 2016. The Council intends to make significant investment in updating and improving the current infrastructure and facilities. The Council has an ongoing objective to preserve the long term future of the town and is investing £900m in projects including Stockport Exchange, Redrock and improving access in and around the town centre.

Stockport Exchange is a £145 million development that will create a new gateway to the town. Comprising a new modern business district combining Grade A office space, a town centre hotel with first class retail and leisure facilities and car parking. Phase 1 has been completed which is a new 1,000 space multi-storey car park adjacent to the train station which is now open and operated by NCP. In addition, a 50 space cycle store with lockers and changing rooms was opened as part of the Phase 1 works.

The second phase of the development started in August 2015 which will see a new 4,645 sq m (50,000 sq ft) Grade A office building with ground floor retail space, 115 bed Holiday Inn Express hotel and new public square created in the area opposite the train station entrance.

For further information visit www.stockport.gov.uk.

Redrock Stockport is an exciting £45m leisure development project also part of Stockport Council’s Investing in Growth work. Comprising over 69,677 sq m (750,000 sq ft) of leisure and retail floor space together with a new 360 space multi-storey car park the scheme is anchored by a 10 screen cinema, pre-let to The Light Cinema, over 3,530 sq m (38,000 sq ft) of retail and restaurants including Pizza Express and Zizzi. For further information visit www.redrockstockport.co.uk.

Occupying a highly prominent position within the town centre, the property comprises a parade of three retail units of brick built construction under a slate roof. There is a rear yard with vehicular access for the loading.

Each shop provides good, well configured accommodation comprising ground floor sales with first floor ancillary accommodation. The tenants have fitted out their units to a high standard in their respective corporate images.

Freehold.

Tenancies

The property is let as follows;

1 Warren Street is let to Shoe Zone Retail Limited (formerly Shoe Zone Limited).

The lease is for a term of 15 years from 24th April 2006 expiring on 23rd April 2021 at a current passing rent of £72,500 per annum.

The lease, which is fully repairing and insuring, benefits from a rent review on 24th April 2016 which is currently outstanding. Based on our analysis of the passing rent the Zone A is £103.73.

1a Warren Street is let to Edward Meeks Limited t/a Meeks Shoes.

The lease is for a term of 10 years from 8th December 2015 expiring on 7th December 2025. The lease, which is internal repairing and insuring subject to a service charge covering structural elements i.e. the roof, includes a rent review on 8th December 2021 as well as a break option on the same date subject to 6 months’ prior written notice.

The annual rent is £55,000 per annum, however, the tenant benefits from half rent for the first two years of the lease. A purchaser will receive the equivalent to the full headline rent on completion by way of an adjustment to the purchase price. Based on our analysis the headline Zone A is £43.86.

2 Warren Street is let to Temple Retail Limited t/a PerfectHome and guaranteed by Perfect Home Holdings Limited.

The lease is for a term of 10 years from 4th July 2011 expiring on 3rd July 2021 at a current passing rent of £75,000 per annum.

The lease, which is fully repairing and insuring, benefits from an outstanding rent review on 3rd July 2016. There was a break option on 3rd July 2016 in favour of the tenant which was not exercised. Based on our analysis of the passing rent the Zone A is £54.74.

In summary:

The service charge budget for the period 1^st April 2016 to 31^st March 2017 is £35,075. The Service Charge Accounts and Service Charge Budgets are available to download. 

Edward Meeks Limited has a service charge cap of £10,000 subject to annual increases in line with the Retail Price Index (RPI).

The property has been registered for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

We are instructed to seek offers in the region of £1,800,000 (One Million, Eight Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 10.6%, assuming standard purchaser’s costs of 6.22%.