• Prime retailing pitch

• Tenant has committed to a lease during COVID-19

• New letting from August 2020

• Secure covenant – Cardzone Limited (Net Assets £8.145m)

• Freehold

• £360,000, subject to contract

• 8.0% net initial yield

Commercial Street is Newport’s principal pedestrianised retail thoroughfare. The subject property is situated in the prime section of Commercial Street, close to its junction with Llanarth Street. Surrounding occupiers include TSB Bank (adjacent), Boots, Superdrug, Primark, Greggs and Nationwide.

The Kingsway Shopping Centre is also in close proximity. Comprising over 250,000 sq ft with over 1,000 car parking spaces, the centre is home to more than 20 high street stores including Sainsburys, Wilko, B&M, Pure Gym, Starbucks and Poundland. Located next to the Central Library it also adjoins the £100 million Friars Walk shopping and leisure complex with more than 36,230 sq m (xx sq ft) of retail and leisure space including cinema, shops, restaurants, a 350-space car park and bus station. Tenants within Friars Walk include H&M, JD Sports, River Island, Marks & Spencer, Carphone Warehouse, Nando’s and Wagamama.

The property comprises a ground floor retail unit with ancillary accommodation on two upper floors. Internally, the unit has been fitted out by the tenant to their usual corporate style. A loading yard is provided to the rear of the property.

Freehold.

A new open market letting occured in August 2020 during the COVID-19 Pandemic.

The property is let to Cardzone Limited, t/a Card Centre, on a Full Repairing and Insuring lease (subject to a Schedule of Condition – see data room) for a term of 5 years from 17th August 2020, expiring on 16th August 2025.

The current passing rent is £30,000 per annum. Based on our analysis the passing rent equates to approximately £33.50 Zone A.

The tenant currently benefits from a rent-free period which expires on 17th November 2020. The vendor will “top-up” the income by an appropriate adjustment on the completion sum in order that a purchaser does not suffer an income shortfall.

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

We are instructed to seek offers in the region of £360,000 (Three Hundred and Sixty Thousand Pounds), subject to contract, reflecting a net initial yield of 8.0%, assuming purchaser’s costs of 3.61%.

Please note a purchaser will be charged a Transaction Fee of 1% of the Sale Price plus VAT.

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We have established relationships with a number of leading finance companies who are in a position to quote terms for suitable situations. To learn more, please visit our “Finance” section.