• To be sold by clicktopurchase® Best Offers by 3.00pm on Friday 29th October 2021, unless sold prior

• Located in an attractive, popular Cathedral City

• 75% of income secured against undoubted covenant - Santander UK PLC

• New 5 year lease from December 2020

• Tenant has been in occupation since the 1960’s

• Rear frontage overlooking cathedral green

• Rear office building with potential for alternative use, subject to planning

• VAT free investment opportunity

• Grade II listed (no empty rates payable)

• Freehold

• £500,000, subject to contract

• 7.5% net initial yield (based upon 7% for the bank and 10% for the rear office)

• Apportioned value on rear office at large discount to vacant possession value as residential

The property occupies a prominent position within the heart of Wells city centre, on the northern side of Market Place close to its junction with Sadler Street. Other nearby occupiers include Barclays, HSBC, Boots, Costa Coffee along with numerous specialist independent retailers, traditional pubs and inns and cosmopolitan cafes.

Wells Cathedral is immediately to the east, therefore providing significant pedestrian footfall in and around the property particularly during tourist season. In addition, a lively street market is held on Market Place twice a week throughout the year.

A Grade II listed building, 5 Market Place comprises a ground floor retail unit configured as an open-plan banking area which has been fitted out by the tenant, Santander, in their usual corporate style. The first and second floors provide ancillary accommodation and the basement and attic floors are not currently used.

The rear section, 5 Cathedral Green, is arranged over ground, first and second floors, currently occupied by Chubb Bulleid Solicitors. This building is accessed from the Cathedral Green side as opposed from Market Place. Furthermore, the tenant accesses from the adjoining property also occupied by Chubb Bulleid.

It should be noted of a long-standing difference of opinion in relation to access rights from the rear property onto the cathedral green. We draw your attention to the letter dated 21st November 2016 to the Financial Controller at the Cathedral Offices from Chubb Bullied Solicitors which is provided in the data room. The vendor is unaware of further discussions in recent years and the property is sold on the basis that the parties disagree.

The property is Grade II listed (hence empty rates are not payable).

5 Market Place is let to Santander UK PLC on a full repairing and insuring basis for a term of 5 years from 25th December 2020, expiring on 24th December 2025. The current passing rent is £29,300 per annum.

The tenant has been in occupation since the 1960’s. The most recent lease renewal took place in December 2020. The fact that the tenant has extended their lease during COVID-19 demonstrates their desire to remain in the property.

5 Cathedral Green is occupied by Chubb Bulleid Limited (t/a Chubb Bulleid Solicitors) who signed a 12 year lease from 1st April 2009, expiring on 31st March 2021. The tenant is currently holding over and is paying a rent of £10,000 per annum.

Therefore, an investor will benefit from a total income of £39,300 per annum.

Santander UK PLC (Co No.02294747) has reported the following figures:

Santander UK is a large retail and commercial bank based in the UK and a wholly owned subsidiary of the major global bank Banco Santander. In 2020 the company had 14.3 million active customers and provided £170 billion customer loans. For further information visit www.santander.co.uk.

Chubb Bullied is a local firm of solicitors. The company was formed in March 1997 by a merger between Chubb Beresford in Wells which had nearly 150 years of legal expertise and Bulleid Leeks & Co., which was formed in Street and Glastonbury some 70 years or more ago. For the year ending 29th February 2020 the company reported Net Assets of £667,603. For further information visit www.chubb-bulleid.co.uk.

Our client is seeking a figure of £500,000 (Five Hundred Thousand Pounds) subject to contract, reflecting a net initial yield of 7.5%, after allowing for standard purchaser’s costs of 4.70%.

It is suggested that the asking price can be analysed as an attractive 7% yield in respect of the bank investment at £400,000, plus only £100,000 in respect of the rear office which reflects 10% and only £92 per sq ft / £997 per sq m.

At the time of marketing, a residential property is available on Cathedral Green, close to the subject property, available at £850,000 reflecting £230 per sq ft / £2,475 per sq m (ignoring cellar) which shows the low capital value apportionment on the rear office in comparison.

Please note that a purchaser will be re-charged the cost of the searches (£1,434.69 plus VAT) which are provided in the data room.

Please note that a purchaser will be charged a Transaction Fee of £2,500 plus VAT

1. An opportunity to acquire a freehold investment in an attractive, poplular Cathedral City;

2. 75% of the income is secured against the undoubted covenant of Santander UK PLC (Pre-Tax Profits £552 million);

3. New 5 year lease from December 2020;

4. Santander has been in occupation since the 1960’s and renewed their lease during COVID-19, demonstrating their commitment to the property;

5. Rear office building benefits from attractive aspect with potential for alternative use, subject to planning;

6. VAT free investment opportunity;

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

8. Attractive lot size for an investor.