10.24% Prime Retail Investment Let to Wilko’s - 9.25 Years Unexpired

17-21 Penny Street | Lancaster | LA1 1UA


subject to contract



  • 100% prime retail location – see video

  • Let to Wilko Retail Ltd (Net Assets £110 million)

  • 9.25 years unexpired lease term

  • Freehold

  • £3,200,000, subject to contract

  • 10.24% net initial yield



Lancaster is one of England’s Heritage Cities, located approximately 143 km (230 miles) north west of Central London, 80 km (50 miles) north west of Manchester, 97 km (60 miles) north west of Leeds and 32km (20 miles) north of Preston.

The city benefits from good road communications being situated approximately 3.2 km (2 miles) south east of Junction 34 of the M6 Motorway, accessed via the A683. The M6/M65 Interchange is approximately 48 km (30 miles) to the south.

The city is connected to the national railway network with a fastest journey time to London Euston of 2 hour 25 minutes. Manchester International Airport is situated approximately 96 km (60 miles) to the south-east and Liverpool John Lennon Airport is approximately 96 km (60 miles) to the south-west.

Lancaster is a major destination in the strategically important M6 Corridor. With over 2,000 years of history behind it, the City is situated between two Areas of Outstanding Natural Beauty and within minutes of spectacular coastline, the open countryside of North Yorkshire and the Lake District. Lancaster University ranks in the top 10 of all three major national league tables and was named University of the Year 2018 by The Times and The Sunday Times Good University Guide.


Penny Street is Lancaster’s principal retail thoroughfare. The subject property occupies a 100% prime retailing pitch and is highly visible on the eastern side of Penny Street. Other nearby occupiers include Vision Express (adjacent), Monsoon (opposite), Next, Clarks, Accessorize, Marks & Spencer, Top Shop, River Island, JD Sports and Holland & Barrett.

investment opportunities lancaster uk LA1 1UA


The property provides retail use on ground and first floor, together with ancillary, storage and staff accommodation on first floor. The property benefits from an escalator link between ground and first floors, plus a goods lift to the rear. The unit has been fitted out by the tenant to their usual corporate style.

In addition to the main frontage to Penny Street, the property also has a return frontage to Frances Passage which is a pedestrian walkway connecting Penny Street with Mary Street to the rear. Therefore, the property benefits from a strong pedestrian flow.


The property has been measured by BKR Floor Plans and provides the following floor areas:

Net Frontage 12.3 metres 40 ft 3 in
Gross Frontage 12.9 metres 42 ft 6 in
Net Internal Area    
Ground Floor 673.25 sq m 7,247 sq ft
First Floor 714.22 sq m 7,688 sq ft
Total 1,387.46 sq m 14,935 sq ft
Gross Internal Area    
Ground Floor 893.42 sq m 9,617 sq ft
First Floor 898.71 sq m 9,674 sq ft
Total 1,792.13 sq m 19,291 sq ft

The measured survey report is available to download and will be re-addressed to a purchaser at a cost of £895 + VAT.

linvestment opportunities lancaster uk LA1 1UA
investment opportunities lancaster uk LA1 1UA




The property is entirely let to Wilko Retail Limited on a full repairing and insuring lease for a term of 20 years from 16th January 2009, expiring on 15th January 2029 (9.25 years unexpired).

The current passing rent is £348,941.50 per annum. The lease benefits from five yearly upward only rent reviews on 16th January 2019 (currently outstanding) and 16th January 2024.

investment opportunities lancaster uk LA1 1UA


Wilko Retail Limited (Co. No. 00365335, formerly Wilkinson Hardware Stores Limited) has reported the following figures;

  2nd February 2019 3rd February 2018
Revenue £1,508,690,000 £1,619,577,147
Pre-Tax Profit £25,049,000 (£62,646,000)*
Net Assets £109,922,000 £101,669,000

*Exceptional costs of £36.5 million relating to a store management restructure and an unrealised loss of £39.9m on future purchases through forward contracts and currency options were responsible for the pre-tax loss.

Wilko is a family owned private limited company which has been trading for over 85 years. Established from a single shop in Leicester in 1930, today the company trades from more than 400 stores throughout the United Kingdom. In 2013 the company changed its name from Wilkinson to Wilko and according to its website 6 out of 10 shoppers in the United Kingdom shop with Wilko. For further information visit www.wilko.com.


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

investment opportunities lancaster uk LA1 1UA
investment opportunities lancaster uk LA1 1UA

Investment Evidence

Parties are invited to refer to the following investment transactions:

Address Tenant Term Certain Price Yield Date
13/15 Northbrook Street, Newbury Wilko Retail Limited 6.75 yrs £4.25m 6.5% Oct 2018
78/80 High Street, Epsom Wilko Retail Limited 7 yrs £5.4m 5.9% May 2018


We are instructed to seek offers in the region of £3,200,000 (Three Million, Two Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 10.24%, assuming standard purchaser’s costs of 6.47%.

investment opportunities lancaster uk LA1 1UA
investment opportunities lancaster uk LA1 1UA

Investment Considerations

  1. An opportunity to acquire a prime freehold retail investment;

  2. The property occupies a prominent position within the city’s prime retailing pitch;

  3. The investment provides secure income;

  4. 9.25 years unexpired lease term;

  5. A purchase at the asking price reflects an attractive net initial yield.

Contact Us

Singer Vielle   +44 (0) 207 935 7200
Dale Henry dale@singervielle.co.uk +44 (0) 203 701 1356
Neil Singer neil@singervielle.co.uk +44 (0) 203 478 9120
Daniel Elia daniel@singervielle.co.uk +44 (0) 203 701 1353

Vendors Solicitor

Hampshire County Council +44 (0) 196 284 7378
Julia Keitley julia.keitley@hants.gov.uk
Joanna Gook joanna.gook@hants.gov.uk