High-Yielding Retail Investment Offering Re-development and Add-Value Opportunities – 15.0%
1-2 The Shambles | Worcester | WR1 2RF
£1,570,000
subject to contract
GALLERY
Summary
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Located in the heart of Worcester’s prime retailing centre
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Prime location on The Shambles with return frontage leading to High Street
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Let to the secure covenant of Argos Limited (D&B Rating 5A1), owned by FTSE 100 company J Sainsbury plc, expiring November 2023
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Currently unoccupied by the tenant
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Freehold
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Offers in the region of £1,570,000 subject to contract
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15.0% Net Initial Yield
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£162 per sq ft / £1750 per sq m
Location
The historic Cathedral City of Worcester is the administrative centre for the County of Worcestershire. Worcester is located approximately 206 km (129 miles) north west of London, 46.5 km (29 miles) south west Birmingham, 45 km (28 miles) north of Cheltenham and 43 km (27 miles) west of Stratford upon Avon.
Worcester benefits from good road communications, being situated approximately 5 km (3 miles) to the west of Junctions 6 and 7 of the M5 Motorway which in turn links with the M42 and M6 Motorways in the north and the M50 Motorway in the south.
The city is also connected to the UK railway network and is serviced by two railway stations; Worcester Shrub Hill provides services south-east into London Paddington, with a fastest journey time of 2 hours, and south to Bristol with a fastest journey time of 1 hour and 15 minutes. Worcester Foregate Street provides services north to Birmingham with a fastest journey time of 45 minutes.
Birmingham International Airport is located 43 km (27 miles) to the north-east. The third largest regional airport in the UK, it provided international flights for approximately 13 million passengers in 2017.
Situation
The subject property occupies a prominent position on The Shambles, one of Worcester’s principal shopping streets. The property also benefits from return frontage onto Church Street, which leads to High Street, Worcester’s other principal shopping street. Nearby local occupiers include Marks & Spencer, T K Maxx, J D Sports, Superdrug, Thorntons, Vodafone, Halifax, TSB, Timpsons and Greggs.
Located off the High Street, Worcester also benefits from the Crowngate Shopping Centre which provides 300,000 sq ft of retail and restaurant space with tenants such as Boots, House of Fraser, Primark, Superdrug and Iceland.
Description
The property comprises a 2-storey corner retail unit arranged as retail space on the ground floor with the customer entrance fronting The Shambles and, ancillary storage space at first floor.
The unit is currently vacant.
Accommodation
The property has been measured by BKR Floor Plans and provides the following Net Internal Areas:
| Gross Frontage | 17.68m |
58' |
|---|---|---|
| Net Frontage | 14.90m |
48'9" |
| Sq M | Sq Ft | |
| Zone A | 103.21 | 1,111 |
| Zone B | 103.20 | 1,112 |
| Zone C | 100.52 | 1,082 |
| Remainder | 151.61 | 1,632 |
| ITZA | 2,142 | |
| Ground Floor Total | 458.65 | 4,937 |
| First Floor | 438.58 | 4,721 |
| Total | 897.23 | 9,658 |
A set of floor plans are available to download and the measured survey report will be assigned to a purchaser at a cost of £575 + VAT.
Tenure
Freehold.
Tenancy
The property is let to Argos Limited at £250,000 per annum on a full repairing and insuring lease for a term of 15 years from 19th November 2008, expiring on 18th November 2023.
The tenant vacated the property during the Coronavirus Pandamic. We understand that the tenant is not intending to re-occupy the premises.
There are no rent arrears.
Covenant
Argos Limited (Co No. 01081551) has reported the following figures:
| 9 March 2019 | 10 March 2018 | |
|---|---|---|
| Revenue | £4,240,797,000 | £4,162,557,000 |
| Pre-Tax Loss | -£58,868,000 | -£145,305,000 |
| Net Assets | £527,300,000 | £571,055,000 |
Argos Limited is wholly owned by J Sainsbury’s plc (Co No. 00185647), which is a FTSE 100 company and listed on the London Stock Exchange. Argos have an estimated 29 million store customers and 1 billion online customers per year. The company offer 60,000 different products, and employ approximately 30,000 people in over 800 stores UK wide. For further information please visit: www.about.sainsburys.co.uk/great-products-and-services/argos
J Sainsbury’s plc (Co No. 00185647) has reported the following figures:
| 7 March 2020 | 7 March 2019 | |
|---|---|---|
| Revenue | £28,993 million | £29,007 million |
| Pre-Tax Profit | £586 million | £209 million |
| Net Assets | £7,773 million | £7,782 million |
VAT
The property has been opted to tax for VAT purposes. It is anticipated that the sale will be treated as a Transfer of a Going Concern.
Proposal
We are instructed to seek offers in the region of £1,570,000 (One Million, Five Hundred and Seventy Thousand Pounds), subject to contract, for the freehold interest. This reflects a net initial yield of 15.00% assuming purchaser’s costs of 6.13%.
Please note that a purchaser will be re-charged the costs of surveys and searches which are provided in the data room.
Please note that a purchaser will be charged a Transaction Fee of £5,000 + VAT.
Investment Considerations
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An opportunity to acquire a freehold retail investment in a popular retailing destination;
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The property occupies a highly prominent position on one of Worcester’s principal retailing thoroughfares;
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Let to the secure covenant of Argos Limited (D&B Rating 5A1), owned by J Sainsbury plc, a FTSE 100 company;
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Attractive lot size to an investor;
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A purchase at the asking price reflects an attractive net initial yield and capital value;
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The property offers an opportunity to enhance value.
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BROCHURE
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
| Fieldfisher | +44 (0) 121 210 6000 | |
|---|---|---|
| Jayne Elkins | jayne.elkins@fieldfisher.com | |
| Emily Cope | emily.cope@fieldfisher.com | |