• Freehold commercial property investment

• Let to the secure covenant of Argos Limited (Net Assets £501m), owned by FTSE 100 company J Sainsbury plc

• New 5 year lease from September 2021

• Tenant has been in occupation since 1995

• Rent recently rebased on lease renewal by 23% reduction from previous rent, from £73,000 pa to £56,000 pa

• Situated in the heart of the town centre

• The only store in Boston for either Argos or J Sainsbury Ltd

• No rent arrears. No rent payment delays during lockdown

• £665,000, subject to contract

• 8.0% Net Initial Yield

The subject property is situated within the heart of Boston town centre fronting New Street, close to its junction with Strait Bargate which along with Wide Bargate and Market Place combine to form Boston’s prime retailing pitch. Nearby occupiers include Caffe Nero, EE, Vision Express, New Look, WH Smith and Santander.

The Pescod Square Shopping Centre is in close proximity, further increasing footfall in the area. Totalling approximately 93,000 sq ft with a 400 space car park the centre has a range of stores including Wilko, Greggs, Waterstones, Next, Costa, Superdrug and O2.

The 200-space Boston Market Place car park is immediately to the rear of the subject property. Every Wednesday and Saturday there is a market on Strait Bargate close to the property thereby increasing footfall.

This is the only Argos in Boston with the closest branch being in Spalding, some 22 km (14 miles) away.

The property comprises a two storey retail unit built in the mid-1990’s of brick and block construction. The ground floor is predominantly open plan with ancillary storage and office space to the rear. The first floor comprises further storage, staff room, goods lift and plant room. The property benefits from a goods entrance.

Internally the unit has been fitted out to the typical corporate style of Argos.

Freehold.

The entire property is let on a full repairing and insuring lease to Argos Limited for a term of 5 years from 3rd September 2021, expiring on 2nd September 2026. The lease is subject to a tenant only break option on 3rd September 2024, subject to not less than six months’ notice.

The current passing rent is £56,000 per annum (£56.72 per sq m / £5.27 per sq ft overall).

We understand the tenant has been in occupation since 1995 (26 years) and entered into a lease renewal in 2021, demonstrating their desire to remain in the property. The rent has been rebased from £73,000 per annum to £56,000 per annum.

Following Sainsbury’s acquisition of Argos many Argos stores on the high street have been integrated into Sainsbury’s supermarkets. However, Sainsbury’s does not have any stores in Boston (either in-town or out-of-town) and the fact that the tenant has just renewed their lease indicates that the subject unit is highly regarded and there are no plans to integrate it.

All rent is paid and up to date, with no arrears.

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 £665,000 (Six Hundred and Sixty-Five Thousand Pounds) for this commercial property investment, subject to contract, reflecting a net initial yield of 8.0%, assuming standard purchaser’s costs of 5.22%.

Please note that a purchaser will be re-charged the costs of searches (£548.25) which are provided in the data room.

Please note that a purchaser will be charged a Transaction Fee of 1.00% of the Purchase Price plus VAT.

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