• Located in a Cathedral City

• Attractive building in the heart of the city centre

• 19.5 years unexpired lease term, no breaks

• Let to the nationally-recognised restaurant chain, “Côte”

• Freehold

• £850,000, subject to contract

• Net Yield 7.24% (with vendor’s top-up)

The property is situated on the pedestrianised Church Street, within the heart of Peterborough’s Historic Centre.

Church Street is designated as a Heritage Attraction location and the property benefits from being directly opposite the Grade I listed St John the Baptist Church and immediately to the west of Peterborough Cathedral. One of the finest Norman cathedrals in England dating back to 654 AD and the burial place of two queens this is a major tourist attraction, drawing many visitors to the immediate vicinity.

Church Street comprises part of the main retail offering in the city and the subject property is surrounded by many other well-known shops and eateries including Nando’s, Wildwood, Pizza Express, Bill’s, Five Guys, Virgin Money (adjacent) and Barclays. The Queensgate Shopping Centre is immediately to the north-east. Comprising 455,000 sq ft with 2,300 car parking spaces, key tenants include Primark, M&S, Joules and Hotel Chocolat.

The property also overlooks Cathedral Square and the iconic Guildhall with the surrounding area used for various events including Farmers Markets every second and fourth Thursday of the month.

The property comprises a restaurant on ground and first floors with ancillary accommodation at basement, second and third floor levels.

The ground floor comprises a fully fitted out Côte Brasserie branded restaurant area with a dumb waiter serving hatch in the staff area which connects the ground floor with the first floor kitchen. At the rear of the property on this level are the customer WCs.

At first floor is further customer accommodation comprising an identically fitted out restaurant area with the staff kitchen at the rear. The second floor comprises staff and storage accommodation plus male and female WC’s.

The property is of brick construction with a full retail frontage at ground floor and a single storey extension at the rear. To the right of the building is a covered walkway below the first floor which provides vehicular access to the rear of the building where car parking is provided for 6 cars. The rear yard forms parts of the ownership; the neighbouring property and gas board have access rights.

Freehold.

The entire property is let to Côte Restaurant Group Limited on a full repairing and insuring lease for a term of 25 years from 7th March 2016, expiring on 6th March 2041 (19.5 year unexpired lease term).

Following a restructuring (see Covenant section below), on 19th March 2021 the lease was assigned from Cote Restaurants Limited to Cote Restaurant Group Limited.

In addition, a Deed of Variation was completed at the same time varying the rent and rent review clauses in the original lease. The rent was rebased down from £65,000 per annum to £35,000 per annum. The new rent is just over 50% of the previous rent.

In accordance with the Deed of Variation:

> Rent to be paid monthly rather than quarterly (see side letter).
> From 28th September 2020 to 27th December 2021 the annual rent is reduced to £35,000 + VAT.
> From 28th December 2021 to 6th March 2026 the annual rent is reduced to £50,000 + VAT.
> The 7th March 2021 rent review is removed.
> Open market rent reviews on 7th March 2026, 2031 and 2036. Reviewed rent to be the greater of open market and £65,000pax.
> From 28th December 2021 onwards, if the Government imposes a restriction on the tenant’s use of the property in order to prevent the spread of Coronavirus then the tenant will only be liable to pay 50% of the annual rent, until such time as the restriction ends.

The vendor will top-up the income to £65,000 per annum, given the minimum increase at 7th March 2026, in order that the purchaser does not suffer an income shortfall.  

The Deed of Variation also provides that should any Government measures be imposed in relation to Coronavirus which prevents the tenant’s use of the premises, the rent is reduced to 50% of the Annual Rent for the duration of the measures. To remove concerns with this clause, a retention will be held for two years post completion of the sale to be used as cover for the purchaser, should this clause be envoked.

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

We are instructed to seek a figure of £850,000 (Eight Hundred and FiftyThousand Pounds), subject to contract, reflecting a net initial yield of 7.24% assuming standard purchaser’s costs of 5.56%. [The rental top-up will be dealt with by way an appropriate deduction on the completion sum.]

Please note that a purchaser will be re-charged the costs of the measured survey (£495 + VAT) and searches (£998.80) 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.