• Located in a Cathedral City

• Attractive building in the heart of the city centre

• Rents have been rebased down to 57% of previous levels

• Renewed lease to Waterstones Booksellers Ltd (Net Assets £63.4m)

• New lease to Oodles - restaurant opened 5th August 2022

• Potential to convert and extend the second and third floors to residential, subject to planning

• Freehold

• £1,065,000, subject to contract

• Net Yield 8.00% based upon 9.36% for the commercial income, and only £155,000 for the vacant upper parts.

The property is situated on the corner of the pedestrianised Bridge Street and Wentworth Street, directly opposite the Town Hall and within the heart of Peterborough’s Historic Centre.

Bridge Street is designated as a Heritage Attraction location on the Peterborough City Council city centre map.

The property is next door to WH Smith, Post Office and Mountain Warehouse with other businesses nearby including Greggs, B&M, TK Maxx, Specsavers and Millets.

Church Street is just 50 metres to the north of the property and comprises part of the main retail offering in the city. Well-known shops and eateries include Nando’s, Wildwood, Pizza Express, Bill’s, Five Guys, Starbucks and Boots.

Peterborough Cathedral and the Grade I listed St John the Baptist Church is just 50 metres from the property. Peterborough Cathedral is 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.

The property is 150 metres from 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 Queensgate Shopping Centre is immediately to the north-east, comprising 455,000 sq ft (42,270 sq m) of accommodation with 2,300 car parking spaces, key tenants include Primark, M&S, Joules and Hotel Chocolat.

Plans have been approved for a new market to trade five days a week on Bridge Street from June 2022. The new City Market will comprise of a new state of the art food hall with two butchers and a fishmonger, 2 permanent market stalls, housed in contemporary timber kiosks beneath the trees. Occupiers will include independent traders, fresh food businesses and non-food businesses. In addition, the market will have 12 pop up stalls for traders who wish to operate on a part time basis. This development is expected to draw an exceptional amount of footfall directly outside the property.

The property comprises two retail properties arranged over ground, first, second and third floors, with a 71-foot (21.64m) return frontage onto Wentworth Street.

Part of the first and the entire second and third floors are vacant. These areas benefit from independent access from Wentworth Street.

40 - 42 Bridge Street, Ground and Part First Floors – Waterstones

The ground floor comprises large open plan sales accommodation with a dog leg shape to the rear. To the middle there is a large double ended staircase providing access to the first floor. To the rear there is ancillary accommodation, a goods lift, another staircase to the first floor and a fire exit leading onto Wentworth Street.

The first floor comprises sales accommodation, a staff area and WCs. The unit has a glazed frontage onto Bridge Street and a frontage onto Wentworth Street.

Unit 1, 40 – 42 Bridge Street, Ground Floor – Oodles

The property comprises several restaurant seating areas and an open plan kitchen. There are preparation areas, ancillary accommodation, and a fire exit to the rear.

The fit out of the new restaurant has recently been completed; the restaurant opened 5th August 2022.

Freehold.

40-42 Bridge Street is let to Waterstones Booksellers Limited on a full repairing and insuring lease for a term of 5 years from 8th February 2022, expiring on 7th February 2027. Therefore, there are 4.5 years unexpired with no breaks. The passing rent is £50,000 per annum. The rent has been rebased downwards from £67,500 per annum.

Unit 1, 40-42 Bridge Street is let to Almunir Specialist Catering Limited (t/a Oodles) on a new full repairing and insuring lease for a term of 10 years from 10th February 2022, expiring on 9th February 2032. There is an upwards only rent review on 9th February 2027. The tenant has a break option at the end of the fifth year, subject to 6 months written notice. Therefore, there are 4.5 years until the break option and 9.5 years until the lease expiry. The passing rent is £40,000 per annum. The rent has been rebased downwards from when it was let to the previous tenant at £90,000 per annum.

The tenant had the benefit of a rent-free period until 10th August 2022, after which the tenant will be paying half rent until 10th August 2023.

The tenant has paid a rent deposit equivalent to 4 months’ rent totalling £13,333.33 + VAT.

The tenant has invested substantially into refurbishing and fitting out the premises (we understand the tenant’s investment has been in the order of £220,000). The landlord presentation and design pack are available to download.

The vendor will top-up the income by way of an adjustment to the completion sum, to account for the half rent period, in order that the purchaser does not suffer an income shortfall.

The total passing rent for the entire property is £90,000 per annum. This is 57% lower than the previous total rent at the property of £157,500.

Part of the first floor and the entire second and third floors are vacant and benefit from independent access from Wentworth Street. This offers an opportunity to exploit these parts and extend at first and second floor levels in the near future, converting to residential use, subject to planning permission.

An indicative scheme has been drawn up by the vendor for 15 residential units as follows:

• First Floor: 2 x 2-bedroom apartments plus 5 x 1-bedroom studios

• Second Floor: 7 x 1-bedroom studios

• Third Floor: 1 x 2-bedroom apartments

A set of the proposed floor plans is available to download.

Our research suggests that 1- and 2-bedroom flats above retail in this location are worth in the order of £110,000. Hence an exit value in the order of £1,650,000, thereby providing significant potential to enhance value.

Alternatively, these parts could be let to occupiers who operate under Class E use.

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).

1. An opportunity to acquire a prominent freehold investment in a Cathedral City;

2. Waterstones have renewed their lease demonstrating their commitment to the location;

3. Oodles have invested substantially into the property having signed a new lease;

4. Rents have been re-based to 57% of previous rents;

5. Potential to add value by extending the second and third floors, subject to planning;

6. Opportunity to convert the upper parts to residential use with an exit value of £1,650,000 (subject to planning);

7. A purchase at the asking price reflects an attractive yield profile;

8. Attractive lot size to an investor.

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