• Multi-let freehold retail investment

• Modern, popular out-of-town retail scheme

• Fully income producing

• Weighted average unexpired lease term: 9.4 years

• Active management opportunities

• £4,730,000, subject to contract

• 7.5% Net Initial Yield

The subject property occupies a prominent position on Octagon Way approximately 3.2 km (2 miles) east of Northampton town centre and benefits from dual access immediately off the A43 (Lumbertubs Way) and the A4500.

The property is in an established commercial location with the Weston Favell Shopping Centre immediately adjacent. Comprising 28,450 sq m (306,000 sq ft) of retail space with 70 units anchored by a 13,400 sq m (144,236 sq ft) Tesco Extra, the shopping centre has a strong selection of multinational retailers including Wilko, Boots, New Look, WH Smith and Costa Coffee. The Centre has an annual footfall of 6.6 million and a total resident population of 235,000 in its principal catchment (Source: Redefine International).

In addition, there is a Lidl supermarket immediately adjacent, as well as a McDonald’s Drive Thru and a large Tesco superstore to the south-east.

There are numerous bus routes connecting the property to various local destinations.

The property comprises a modern out of town retail scheme constructed in 2009. Comprising of 20 units, several have been combined to create 11 self-contained retail premises of varying sizes. The units are of steel frame construction with brick and block work elevations with profile steel cladding to the upper parts. The units are all single storey under pitched profile steel sheet roofs.

Each of the units benefits from a customer entrance at the front and a service / loading entrance at the rear. Approximately 75 customer car parking spaces are provided at the front of the units and approximately 30 additional spaces are provided at the rear of the units for staff and loading.

At no time shall the proportion of Units within the development being operated for A3, A4 and A5 as defined in the Use Classes Order 1987 (or so amended) exceed 40% of the overall total number of units. The remaining units should be limited to A1, A2 or D1.

Currently there are six units operating within A3-A5 and, therefore, there is scope for two more.

There is an Agreement with Lidl, the adjoining owner, stating that whilst the adjoining Lidl land is used as a supermarket, the Property or any part thereof, cannot be used for the principal purpose of:

(i) The retail sale of food and/or drink (whether alcoholic or non-alcoholic) for consumption off the premises; or
(ii) A supermarket or convenience store (including frozen sales)

provided that this covenant will not prohibit the use of the Property or any part thereof as an Off-Licence, fast food restaurant, health food store, newsagents, butchers, fishmongers, delicatessen, pet and pet food store or take-away sandwich shop or any other use within Classes A3, A4 or A5 of the Schedule to the Town and Country Planning (Use Classes) Order 1987 (as amended).

The Uniform Business Rate is 48 pence per pound for 2015/2016.

 Freehold. 

Tenancies

The property is fully let to 11 tenants in accordance with the attached tenancy schedule, with a weighted average unexpired lease term (WAULT) of 9.4 years to expiry and 7.4 years to tenant break options.

The total current income is £377,983 per annum.

The service charge budget for 2016 is £29,536. The Service Charge Accounts and the Service Charge Budgets are available to download.

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

We are instructed to seek offers of £4,730,000 (Four Million, Seven Hundred and Thirty Thousand Pounds), subject to contract, reflecting a net initial yield of 7.5%, assuming standard purchaser’s costs of 6.58%.