Prime, Highly Secure Retail Investment
Holland & Barrett | 34-36 Park Street | Walsall | WS1 1NG
£760,000
subject to contract
GALLERY
Summary
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Prime Town Centre Retail Opportunity
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Let to Holland & Barrett (Shareholders’ Funds £339 million)
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Recent tenant break option not exercised, demonstrating their commitment to the property
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Freehold
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£760,000, subject to contract
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10.0% Net Initial Yield
Location
Walsall is a suburb of Birmingham located approximately 14.5 km (9 miles) north of Birmingham City Centre, 9.5 km (6 miles) east of Wolverhampton, 40 km (25 miles) north-west of Coventry and 193 km (120 miles) north-west of London.
The town benefits from good road communications being situated approximately 2.1 km (1.3 miles) east of Junction 10 of the M6 Motorway, 4 km (2.5 miles) north of the M5/M6 Motorway interchange, 9 km (5.6 miles) south-east of the M54 and 13 km (8 miles) south of the M6 Toll Motorway, providing direct access into Birmingham City Centre and connections to the wider UK Motorway network.
Walsall is well served by public transport with Walsall Railway Station providing a direct service to Birmingham New Street with an approximate journey time of 20 minutes, which in turn provides direct services to London Euston with a fastest journey time of approximately 1 hour 20 minutes. Birmingham International Airport is located 30 km (19 miles) to the south-east. The third largest regional airport in the UK, it provided international flights for approximately 13 million passengers in 2017.
Situation
Park Street is Walsall’s principal retail thoroughfare. The subject property occupies a 100% prime retailing pitch on the north side of the fully pedestrianised street. Nearby occupiers include WH Smith, Boots, Foot Locker, McDonald’s, O2, Superdrug, H Samuel, Clintons, and NatWest.
The property benefits from being situated diagonally opposite one of the two main entrances to the Saddler’s Shopping Centre which comprises approximately 18,580 sq m (200,000 sq ft) plus around 450 car parking spaces . The centre provides over 50 stores with retailers including TJ Hughes, Carphone Warehouse, Claire’s, Clarks, Vodafone, Costa, Subway, Ryman and Warren James.
Description
The property comprises a retail unit on ground floor with ancillary storage space at first and second floors. The unit has been fitted out by the tenant in their usual corporate style.
Accommodation
The property has been measured by BRK Floor Plans and provides the following Net Internal Areas;
| Net Frontage | 8.31 m | 27’3” |
| Gross Frontage | 9.53 m | 31’3” |
| Zone A | 45.80 sq m | 493 sq ft |
| Zone B | 41.25 sq m | 444 sq ft |
| Zone C | 32.05 sq m | 345 sq ft |
| Remainder | 8.83 sq m | 95 sq ft |
| ITZA | 813 | |
| Total Ground Floor Sales | 127.92 sq m | 1,377 sq ft |
| First Floor Ancillary | 63.26 sq m | 681 sq ft |
| Second Floor Ancillary | 70.51 sq m | 759 sq ft |
| Total | 261.70 sq m | 2,817 sq ft |
A set of floor plans are available to download and the measured survey report will be assigned to a purchaser at a cost of £375 + VAT.
Tenure
Freehold.
Tenancy
The property is let to Holland & Barrett Retail Limited on a full repairing and insuring lease for a term of 15 years from 15th April 2009, expiring on 14th April 2024.
The current passing rent is £80,000 per annum which, based on our analysis, equates to £92 Zone A.
The tenant had a break option on 15th April 2019 which they did not exercise, demonstrating their commitment to the property.
Covenant
Holland & Barrett Retail Limited (Co No. 2758955) has reported the following figures:
| 30th September 2018 | 30th September 2017 | |
|---|---|---|
| Turnover | £478,649,000 | £461,408,000 |
| Pre-Tax Profits | £66,605,000 | £81,776,000 |
| Shareholders’ Funds | £338,798,000 | £279,508,000 |
As at September 2018, the Company had 767 health stores in the UK, 97 worldwide franchise outlets and 432 worldwide store in store concept.
Holland & Barrett is one of the world’s leading health and wellness retailers and the largest in Europe, supplying its customers with a wide range of vitamins, minerals, health supplements, specialist foods and natural beauty products. With over 145 years of experience in the industry, their name is a familiar sight in almost every major city and town across the UK and is becoming increasingly more visible further afield, in markets as diverse as the Netherlands and Malta to the UAE, China and India.
For more information visit www.hollandandbarrett.com.
VAT
The property has been registered for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
Proposal
We are instructed to seek offers in the region of £760,000 (Seven Hundred and Sixty Thousand Pounds), subject to contract, reflecting a net initial yield of 10.0%, assuming purchasers’ costs of 5.42%.
Please note a purchaser will be re-charged the cost of the searches and surveys which are provided in the data room.
Please note a purchaser will be charged a Transaction Fee of £5,000 + VAT.
Investment Considerations
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An opportunity to acquire a retail investment in a 100% prime retailing position in Walsall town centre;
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Highly secure income – let to Holland & Barrett Retail Limited (Shareholders’ Funds £339 million);
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Highly prominent position on the pedestrianised section of Walsall’s principal shopping street, diagonally opposite the entrance to the Sadler’s Shopping Centre;
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The tenant has recently waived their break option, demonstrating their commitment to the property;
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A purchase at the asking price reflects an attractive net initial yield;
Data Room and clicktopurchase®
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.
Finance
We have partnered with a leading finance adviser to provide loan services. To learn more, please visit our “Finance” section.
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Contact Us
| Singer Vielle | +44 (0) 207 935 7200 | |
|---|---|---|
| Neil Singer | neil@singervielle.co.uk | +44 (0) 203 478 9120 |
| Dale Henry | dale@singervielle.co.uk | +44 (0) 203 701 1356 |
Vendors Solicitor
| Devonshires | +44 (0) 207 628 7576 | |
|---|---|---|
| Daniel Moan | dan.moan@devonshires.co.uk | |