• Gloucester is an historic Cathedral City

• Located in the 100% prime retail pitch

• Let to Sportswift Ltd, trading as Card Factory

• Freehold

• Re-purposing potential on the upper parts

• £700,000, subject to contract

• 11.5% Net Initial Yield

• Implied asking price in relation to the upper floors of only £23.50 per sq ft / £253 per sq m

• The property is sold with the benefit of a rent guarantee from the vendor to ensure an investor has no issues receiving income in light of the Coronavirus Act 2020 Part 1 Section 82

The property comprises a mid-terrace building arranged over basement, ground and two upper floors. Internally the ground floor is arranged as an open plan retail area which has been fitted out by the tenant to their typical specification. The basement and first floor provide ancillary accommodation whilst the second floor is in a dilapidated condition and is currently unused by the tenant.

Freehold.

Note that the ownership of a small section to the rear of the property only extends to the ground floor, with the area above excluded from the title. Please see the title plan and register within the data room for further information.

The property is entirely let to Sportswift Limited (t/a Card Factory) on a full repairing and insuring lease for a term of 10 years from 2nd October 2015, expiring on 1st October 2025.

The current passing rent is £85,000 per annum which, based on our analysis, equates to a Zone A rate of £97 per sq ft.

The tenant is currently in arrears, owing £54,574.66 + VAT. An informal repayment plan has been agreed with the tenant whereby the debt is being repaid over twelve months commencing October 2021, with rents paid monthly from 1st May 2021.

The upper parts are demised to the tenant but are not being fully utilised.

We assess the passing rent attributable to the upper parts at approximately £4,700 per annum. Based upon the asking yield of 11.5% in relation to an apportioned rent for the retail of £80,308, this allocates a purchase price to the upper floor areas of the property at some £37,000 which equates to only £23.50 per sq ft. In comparison, the average sale value for flats in Gloucester is £122,000 and £77 per sq ft (Source: www.zoopla.co.uk).

Subject to consents, it is suggested that the upper floors could potentially provide for residential accommodation with exit values significantly in excess of the apportioned purchase price for this element of the property.

The property has been registered for VAT. Therefore, it is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

1. An opportunity to acquire a freehold retail investment in an historic Cathedral City;

2. The property is let to the well-regarded covenant of Sportswift Limited with Net Assets of £53m (2020);

3. The property occupies a prime retailing pitch in the heart of Gloucester city centre;

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

5. The apportioned price in relation to the upper floors represents a significant discount;

6. Attractive lot size to an investor.

7. The property is sold with the benefit of a rent guarantee from the vendor to ensure an investor has no issues receiving income in light of the Coronavirus Act 2020 Part 1 Section 82.

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