• Freehold commercial property investment

• 100% prime retailing pitch

• Let to an established O2 franchisee

• The tenant did not exercise their 2019 break option

• Grade II Listed (no empty rates payable)

• Excellent rent payment history with no arrears

• Potential to refurbish/redevelop the upper parts, subject to planning

• £460,000, subject to contract

• 10.0% Net Initial Yield

The subject property occupies a 100% prime retailing pitch within the heart of Barnstaple town centre on the pedestrianised High Street, directly opposite Marks & Spencer. Other surrounding occupiers include WHSmith, Costa, H Samuel, Mountain Warehouse, JD Sports, Poundland and Boots. The property also benefits from being immediately adjacent to Barnstaple’s historic Pannier Market, one of Britain’s largest indoor markets and a popular visitor attraction.

The Green Lanes Shopping Centre is immediately to the north, further increasing footfall in the area. Totalling approximately 131,000 sq ft of retail and leisure space with over 40 units and a 400+ space car park, the centre has a range of stores including TK Maxx, Wilko and New Look.

The property comprises an attractive Grade II listed building providing a ground floor retail unit with ancillary accommodation on first, second and third floors. Internally, the unit has been fitted out by the tenant to their usual corporate style.

Freehold.

The entire property is let on a full repairing and insuring lease to JT Retail Limited (t/a O2) for a term of 10 years from 25th December 2014, expiring on 24th December 2024. The tenant did not operate the 25th December 2019 break option.

The occupational lease states that tenant shall keep the Property clean and tidy and in good repair and condition, provided that works detailed in a Schedule of Dilapidation are completed. The dilapidation works were completed by the tenant and approved by the Landlord’s surveyors and appropriate documents to evidence the same will be provided.

The current passing rent is £48,000 per annum which, based on our analysis, equates to £67.00 Zone A.

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).

Although the upper parts are demised to the tenant within their lease, the tenant does not use them. This could provide a buyer with an opportunity to take these premises back from the tenant and refurbish/redevelop them, subject to planning.

In 2014 the current owner had a feasibility study prepared for the conversion of the upper floors to provide 6 x 1-bedroom apartments as follows:

A copy of the architects plans are available to download.

1. An opportunity to acquire a freehold commercial property investment in the heart of Barnstaple town centre;

2. The property occupies a 100% prime retailing pitch;

3. Let to an established O2 franchisee;

4. The tenant did not exercise their 2019 break option, demonstrating their commitment to the subject property;

5. The tenant has an excellent rent payment history with no rent arrears;

6. Future redevelopment potential of the upper parts, subject to consents;

7. A purchase at the asking price for this commercial property investment will provide an investor with a highly attractive net initial yield of 10.0%;

8. Attractive lot size for an investor;

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