• Freehold commercial property investment

• Let to the secure covenant of Argos Limited (Net Assets £273m), owned by FTSE 100 company J Sainsbury plc

• New 5 year lease from December 2021

• Tenant has been in occupation since 2000

• Rent recently rebased on lease renewal by 44% reduction from previous rent, from £98,500 pa to £55,000 pa

• Situated in the heart of the town centre

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

• £525,000, subject to contract

• 10.0% Net Initial Yield

The subject property occupies a prominent position, situated on the corner of Back Lane and Wesley Street, in the heart of the town centre.

The town’s Bus Terminal and its main car park are directly opposite, further increasing footfall in the area.

The property is directly opposite a new development of 26 one-bedroom flats.

The High Street and the Bear Lanes Shopping Centre are immediately to the south. Occupiers within the centre include WHSmith, Nationwide, Superdrug and New Look.

This is the only Argos in Newtown with the closest branch being in Oswestry, some 42 km (26 miles) away.

The property comprises a purpose built ground floor retail unit which is predominantly open plan with ancillary storage and staff accommodation to the rear. There is a loading yard to the rear along with six staff car parking spaces.

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 25th December 2021, expiring on 24th December 2026. The lease is subject to a tenant only break option on 25th December 2024, subject to not less than six months’ notice.

The current passing rent is £55,000 per annum (£58.33 per sq m / £5.42 per sq ft overall).

We understand the tenant has been in occupation since 2000 (22 years) and entered into a lease renewal in 2021, demonstrating their desire to remain in the property. The rent has been rebased from £98,500 per annum to £55,000 per annum.

Following Sainsbury’s acquisition of Argos many Argos stores have been integrated into Sainsbury’s supermarkets. However, Sainsbury’s does not have any stores in Newtown (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 a figure of £525,000 (Five Hundred and Twenty Five Thousand Pounds), subject to contract, reflecting a net initial yield of 10.0%, assuming standard purchaser’s costs of 4.80%.

Please note that a purchaser will be re-charged the costs of searches (£821.90) and measured survey (£575 + VAT) which are provided in the data room.

Please note that a purchaser will be charged a Transaction Fee of £5,000 plus VAT.

Access to the data room and for the ability to purchase online with speed and ease, please click the clicktopurchase® “C” icon or the clicktopurchase® side bar. Purchasers will be able to access the complete legal package, clear verification and submit legally-binding offers to acquire the property.

Purchasers benefit from the trust, security and transparency provided by the platform. All activities, including the online contract execution, will form part of the electronic audit trail which is anchored in the clicktopurchase® Blockchain.

clicktopurchase® provides the opportunity for any investor, whether located UK or abroad, to uniquely purchase online with ease and certainty. To learn more about clicktopurchase®, click here.

UPDATE YOUR INVESTMENT REQUIREMENTS