• 100% prime retail investment

• Highly secure income

• Let to Waterstones (Net Assets £62m) & Savers (Net Assets £125m)

• New letting to Savers in May 2021

• Significant development potential being largely ground floor only

• Freehold

• Offers in excess of £600,000, subject to contract

• 9.54% Net Initial Yield

The subject property is situated in a 100% prime position on the pedestrianised London Road North, Lowestoft’s principal retailing thoroughfare. Nearby occupiers include Marks & Spencer, H Samuel, WHSmith, Boots, Starbucks, Holland & Barrett and Vision Express.

The property also benefits from being opposite to the entrance to the Britten Shopping Centre which comprises over 100,000 sq ft with occupiers including Iceland, Poundland, B&M, Superdrug, EE and Warren James. Lowestoft Rail Station is within a short walking distance at the southern end of London Road North.

98 London Road North (Waterstones) is an ‘L’ shaped building which wraps around 100 London Road. To the front of the property there are three storeys, then a single storey middle section joining the front to a rear two storey section.

The ground floor comprises a retail unit which has been fitted out by the tenant to their usual corporate style, with ancillary accommodation to the rear and side. A rear staircase provides access to the first floor which provides further ancillary accommodation primarily used for storage. Additional ancillary accommodation is provided at second floor and basement level.

100 London Road (Savers) comprises a single storey rectangular retail unit with return frontage to Marina, fitted out by the tenant to their usual corporate style. Ancillary accommodation comprising store, staff, WC and office is situated at the rear.

As shown from the aerial photographs, the property is arranged largely on ground floor only whereas the surrounding properties are considerably higher. Therefore, it is suggested that there is significant development potential, subject to appropriate consents.

Freehold.

98 London Road North is let to Waterstones Booksellers Limited on effectively a full repairing and insuring leases for a term of 5 years from 30th April 2019, expiring on 29th April 2024. The lease is outside 1954 Act protection.

We understand the tenant has been in occupation since 2002.

The tenant’s proportion of the reasonable and proper costs of keeping the main structure in good repair is not to exceed £30,000 over the term of the lease.

The rent is £42,500 per annum. A 21 month rent-free (totalling £74,375) is amortised over the length of the lease, resulting in a rent payments of £27,625 per annum. The rent is paid monthly.

The tenant is fully up to date with rent payments, with no arrears. 

100 London Road North is let to Savers Health and Beauty Limited on effectively a full repairing and insuring lease for a term of 5 years from 21st May 2021, expiring on 20th May 2026. There is a tenant’s break option on 20th May 2024, subject to six months’ notice and a penalty of £8,125 + VAT if exercised. The lease is inside 1954 Act Protection.

During the first year of the term up until 20th May 2022 the rent payable is £16,250 per annum and for the remainder of the term the rent is £32,500 per annum, paid monthly. The vendor will “top-up” the income to £32,500 per annum by an appropriate adjustment on the completion sum in order that a purchaser does not suffer an income shortfall.

The tenant is fully up to date with rent payments, with no arrears. 

Therefore, an investor will benefit from a total income of £60,125 per annum.

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).

We are instructed to seek offers in excess of £600,000 (Six Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 9.54%, assuming standard purchaser’s costs of 5.05%.

Please note that a purchaser will be re-charged the costs of the measured survey (£475 + VAT) and searches (£785.90) 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 and we will alert you as suitable properties become available.