• City centre investment opportunity

• Located in the heart of Plymouth’s prime retailing centre

• Multi-Let to Santander (Net Worth £16 bn) and Oggy Oggy

• July 2021 break clause not exercised

• Asset management opportunities

• Total passing rent of £26,000

• VAT Free Investment

• £170,000, subject to contract

• 15% NIY

Retailing in Plymouth is principally confined to three streets (Armada Way, New George Street and Cornwall Street) and the Drake Circus Shopping Centre. The city provides an excellent retail offer with major multiple retailers including Primark, Marks & Spencer and House of Fraser all having large stores in the city centre.

The property is located in a prime position on the pedestrianised Armada Way close to the Armada Shopping Centre and next door to Santander Bank.

Surrounding occupiers include Tesco Express, Sainsbury’s, Subway, Wilko, EE, Barclays, and McDonald’s.

Drakes Circus Shopping Centre is one of the West Country’s most popular shopping destinations with around 70 shops and restaurants and 1,270 parking spaces. Key occupiers include M&S, Apple, Primark, Next, H&M and Hotel Chocolat. The centre has an annual footfall of around 18 million people (Source: British Land).

In 2019 British Land opened The Barcode, a circa 9,290 sq m (100,000 sq ft) leisure scheme next to the Drakes Circus Shopping Centre including a 12 screen Cineworld cinema, 15 restaurant units and 420 car park spaces. In 2016, British Land acquired the New George Street Estate linking the retail centre with the leisure scheme.

Plymouth Council has committed £27 million to the ‘Better Places’ project which aims to improve the look and feel of the city centre’s main thoroughfares, making it more attractive for shoppers and visitors as well as encourage more inward investment in retail, leisure, employment and housing into the heart of Plymouth. As part of this project, plans have been approved to revamp Old Town Street and the upper end of New George Street with new shops, seating and trees.

A number of major projects are already underway in the City Centre and Waterfront area, including the £200m regeneration of Millbay by English Cities Fund with over £90m already invested in the completion of 400 homes, employment space, a new school, marina and restaurant. A new coach station has been opened, work has started on the new £34 million Box – the city’s new history, arts and culture centre on North Hill, set to open in spring 2020, plus Plymouth Market has undergone a £3.5 million renovation.

The property comprises a four-storey commercial building arranged over basement, ground, first and second floors.

The retail element provides open plan sales accommodation on the ground floor, together with ancillary office/staff accommodation on the basement and first floors. Access to the first floor is via a staircase at the rear of the ground floor.

The second-floor office element provides open plan accommodation which is self-contained and accessed from the front of the property to the left of the retail element.

The basement and part ground and first floors are let to Armada Pasties Limited (t/a Oggy Oggy) on a full repairing and insuring lease for a term of 10 years from 7th July 2016, expiring 6th July 2026 at a passing rent of £21,000 per annum.

Therefore, there are 3.75 years unexpired.

There was a tenant break option at the end of the fifth year which was not exercised, this demonstrates the tenant’s commitment to this location.

A rent deposit of £10,000 has been paid by the tenant and will be passed on to the purchaser.

The ground floor entrance, part first and second floor offices are let to Santander UK PLC on a full repairing and insuring lease for a term of 5 years from 31st May 2015 at a rent of £5,400 per annum. The tenant is currently holding over.

Santander also occupy a retail premises directly next door to the property.

The total passing gross rent for the entire property is £26,400 per annum.

Armada Pasties Limited (t/a Oggy Oggy)
Oggy Oggy are a Cornish pasty and cake company trading from five locations around the United Kingdom. Each café offers in dining or take away. The company also cater for external  events such as wedding buffets.

Oggy Oggy also have a delivery service, delivering frozen pasties with instructions for home cooking.

Santander UK PLC
Santander UK Plc is a British bank wholly owned by the Spanish Santander Group and is one of the largest providers of mortgages and savings in the United Kingdom. The bank operate from over 800 branches, have approximately 20,000 employees, have over 14 million active customers and 64 corporate business centres. For further information visit www.santander.co.uk.

Santander UK Plc (02294747) has reported the following figures:

The property has not been registered for VAT, therefore VAT will not be charged on the purchase price.

We are instructed to seek a figure of £170,000 (One Hundred and Seventy Thousand Pounds), subject to contract. This price reflects a net initial yield of 15%, assuming purchasers’ costs of 2.04%.

Please note that a purchaser will be re-charged the costs of the searches (£637.68) which are provided in the data room.

Please note that a purchaser will be charged a Transaction Fee of 1% plus VAT.

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