• Freehold retail investment opportunity

• Let to Waterstone’s Booksellers Limited

• Rebased rent to £57,400 from £82,500 per annum

• Prime position on pedestrianised Greengate Street

• Over 9.5 years unexpired lease term

• £682,500 subject to contract

• 8.0% Net Initial Yield

• Potential for residential conversion of upper floors (subject to consents)

The Stafford retail market is focused on the pedestrianised streets of Gaolgate Street and Greengate Street, along with Gaolgate Place and the covered Guildhall Shopping Centre. The property is situated in an excellent trading location on the long western side of Greengate Street with the Guildhall Shopping Centre entrance only a short walk from the property.

Occupiers close by include HSBC, Clinton Cards, WHSmith and Greggs. Other nearby national retailers include Boots, Thorntons, Starbucks, Pandora, Thomson and Thomas Cook.

The property is a three-storey period building on the western side of Greengate Street, close to Market Square. The building is Grade II Listed. The premises are arranged over basement, ground, first and second floors.

The ground floor comprises of retail space to the front of the property, with a raised area to the rear used as a kitchen and staff room. The first and second floors were formerly used as office space.

The premises benefit from separate access to the upper floors via an entrance onto Greengate Street.

The entire property is let to Waterstone’s. The upper floors are currently not utilised. Since these floors have a separate entrance, it is suggested that there is potential for future redevelopment / conversion to residential accommodation.

Freehold

The entire property is let on full repairing and insuring terms to Waterstone’s Booksellers Limited for a term of 10 years from 14th September 2018, expiring 13th September 2028.

The current passing rent is £57,400 per annum, equating to £47.50 Zone A. This is based upon £4.00 per sq ft on the rear ancillary, £2.00 per sq ft on the basement, £3.00 per sq ft on the first floor and £2.00 per sq ft on the second floor.

Waterstone’s have recently renewed their lease. The previous rent was £82,500 per annum. The tenants have an option to break the lease in the 5th year, subject to 6 months’ notice.

The property is elected for VAT. We anticipate that the sale should be capable of being treated as a Transfer of Going Concern (TOGC).

Although they are demised to Waterstones the tenant does not use the upper floors. We assess the passing rent attributable to the upper floors at approximately £7,000 per annum. Based upon the asking yield of 8.0%, this allocates a purchase price to this area of the property at only £87,500.

Subject to consents, it is suggested that the upper floors could potentially provide four residential units with an exit value in the region of £4/500,000 after refurbishment, providing an opportunity to enhance value.

1. An opportunity to acquire a freehold prime retail investment in the heart of Stafford town centre;

2. The property occupies a prime position near the Guildhall Shopping Centre;

3. Let to the strong covenant of Waterstone’s Booksellers Limited;

4. A purchase at the asking price will provide an investor with an attractive net initial yield of 8.0%;

5. Potential redevelopment / conversion of the upper floors to provide residential accommodation.

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