• To be sold by clicktopurchase® Best Offers by 3.00pm 19th May 2021, unless sold prior

• City centre investment opportunity

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

• Established, long-term tenants – Kanoo Travel & Whittard

• Re-based rents

• £850,000, subject to contract

• 15.0% net initial yield

• The property is sold with the benefit of a rent guarantee from the vendor to ensure an investor has no issues receiving income in light of the Coronavirus Act 2020 Part 1 Section 82

The subject property is situated within the heart of Nottingham City Centre, occupying a prominent position on Bridlesmith Gate. Surrounding occupiers include The Body Shop (adjacent), Waterstones, Kiehl’s, Molton Brown, Pret A Manger, Barclays, L’Occitane En Provence, Ted Baker and Jack Wills.

The property is in close proximity to the prime retailing pitch of Clumber Street and the “intu Victoria Centre” to the north and Listergate to the south.

“intu Victoria” provides 91,140 sq m (981,000 sq ft) of retail, catering and leisure space across 127 units. The centre, which has undergone a £42 million refurbishment, is anchored by John Lewis and House of Fraser with other major retailers in the scheme including Next, Topshop, JD Sports, Swatch, Superdry, River Island and Lovisa.

The Lace Market and “Hockley Village” area of Nottingham is a short distance to the east. This is a vibrant, modern section of the city which has been described as “the Soho of Nottingham”. It is home to many design and fashion shops, restaurants, bars, cafes, galleries and the Lace Market Theatre.

Nottingham is embarking on an intense period of economic regeneration, with a £250m redevelopment of the ‘Southern Gateway’ into the city centre underway; encompassing a remodelled shopping complex and new ‘City Hub’ college campus.

Another key development in the city centre is Guildhall Place, a 2.4 acre mixed-use development site including a prestigious 100,000 sq ft office building, university academic facilities, student accommodation and a potential conference centre. Part of the development site includes the Grade II Listed Guildhall, with proposals to transform this historic building into a boutique hotel.

6A Bridlesmith Gate comprises a retail unit on ground floor with ancillary accommodation on first and second floors.

6B Bridlesmith Gate comprises a retail unit on ground floor with ancillary accommodation on first floor.

The units have been fitted out by the tenants in their usual corporate style.

According to the Valuation Office website the rateable value for the property is as follows;

The business rate multiplier is 50.4 pence per pound.

As the property is Grade II listed there are no empty business rates payable.

The property has been measured by BKR Floor Plans and provides the following Net Internal floor areas:

The measured survey report is available to download and will be re-addressed to a purchaser at a cost of £490 + VAT.

6A Bridlesmith Gate

Let to Kanoo Travel Limited on a full repairing and insuring lease (subject to a Schedule of Condition for the 1st & 2nd floors – see data room) for a term of 10 years from 16th May 2018, expiring on 15th May 2028. There is a tenant’s break option on 16th May 2023, subject to 6 months’ prior written notice.

The current passing rent is £75,000 per annum which, based on our analysis, equates to £117 Zone A. The lease benefits from an upwards only rent review on 16th May 2023.

6B Bridlesmith Gate

Let to Whittard Trading Limited on a full repairing and insuring lease (subject to a Schedule of Condition for the 2nd floor – see data room) for a term of 10 years from 24th June 2014, expiring on 23rd June 2024. There is a tenant’s break option on 24th June 2022, subject to 6 months’ prior written notice and a three month rent penalty if exercised.

The current passing rent is £60,000 per annum which, based on our analysis, equates to £128 Zone A. The rent was re-based in June 2019 from a previous rent of £86,150 per annum.

Therefore, the total passing rent is £135,000 per annum.

In order to support both tenants during the pandemic the Landlord has agreed the following payment plan:

6A Bridlesmith Gate (Kanoo Travel):

• Rent permitted to be paid monthly instead of quarterly.

• Deferral of 50% of each of the Q3 2020 monthly payments (24th June, 24th July & 24th Aug).

• Deferral of 25% of each of the Q4 2020 monthly payments (29th Sept, 29th Oct & 29th Nov).

• Deferred rent to be repaid pro rata over the shorter of (i) a period of 24 months beginning on 1st Jan 2021) or (ii) the remaining lease term.

• Deferral solely in respect of rent, not service charge payments.

The tenant is fully up to date with rent payments other than the deferred rent which, as of 22^nd  March 2021, totalled £15,468.74.

6B Bridlesmith Gate (Whittard):

In accordance with a side letter, the Landlord has agreed to the following concession:

• Rent permitted to be paid monthly instead of quarterly.

• Rent reduced to £40,000 excluding VAT (i.e. 66% of the passing rent) from 1st April 2021 to 31st December 2021.

• In the event of another national lockdown by the Government, the rent to be reduced to 50% of the contractual level for any period of mandated store closure.

• On completion of the side letter the tenant is to pay £40,000 plus VAT in full and final settlement of their arrears (in respect of the main rent) for the period 1st April 2020 – 31st March 2021.

In order that a purchaser does not suffer an income shortfall, the vendor will “top-up” the income until 31^st December 2021 by an appropriate adjustment on the completion sum.  Therefore, an investor will benefit from an income of £60,000 per annum.

Kanoo Travel Limited (Co. No. 05776787) has reported the following figures:

According to its website the family owned Kanoo Travel Group, an American Express franchise partner, is the largest travel company in the Middle East with a team of travel specialists in over 180 offices in the region and over 200 offices worldwide.

The Kanoo family's involvement in air travel goes back to 1937 when the company provided refuelling facilities in Bahrain for Imperial Airways seaplanes in route to India and Australia. In 1947 Kanoo Travel became the first IATA agency in the Gulf and has grown into the largest travel company in the Middle East.

April 2007 saw Kanoo Travel branch out into the UK travel industry, after acquiring American Express' A High Street leisure travel businesses. According to its latest published accounts Kanoo serves customers from 16 branches across the UK offering both travel and foreign exchange services at 7 of these locations with the remaining 9 operating as foreign exchange bureaux. For further information visit www.kanootravel.co.uk.

Whittard Trading Limited (Co. No. 06753147) has reported the following figures:

Established in 1886 by Walter Whittard, the principal activity of the company is the selling of the highest quality teas, coffee and cocoas from around the world together with everything that enriches the experience of consuming them. Routes to market include owned and operated UK stores, a global ecommerce platform, international franchise stores, and worldwide wholesale. For further information see www.whittard.co.uk.

According to its latest published accounts the company continued to enjoy sustained double digit sales growth for the third consecutive year, driven by both like for like home market sales and international growth, particularly in Asia and Europe. As at the year-end the company had 50 trading stores and opened its first three franchised stores in Taiwan.

Sales growth momentum continued into Q1 2020 until the Government forced closures of the company’s stores on 21st March 2020 in response to the COVID-19 pandemic. The business reacted swiftly to the challenges that were faced, and the focus was to ensure that the brand was protected to ensure that the company could continue its growth trajectory as restrictions continued to ease. Customers migrated to ecommerce when physical stores were closed with growth of the ecommerce channel being more than 200% YoY which has helped offset some of the revenue losses due to the forced store closures. In addition to Government support schemes such as furlough and business rates relief the business has also secured an additional £1.5m of shareholder funding. The accounts state that the financial performance in 2019 has given the business a solid foundation to cope with the challenges COVID-19 has posed and that the outlook in the mid-term remains optimistic.

We are instructed to seek a figure of £850,000 (Eight Hundred and Fifty Thousand Pounds), subject to contract, reflecting a net initial yield of 15.0%, assuming purchaser’s costs of 5.56%. 

Please note a purchaser will be re-charged the cost of the searches and measured survey which are provided in the data room. 

Please note a purchaser will be charged a Transaction Fee of £10,000 + VAT.

1. An opportunity to acquire a freehold city centre investment;

2. The property occupies a prominent position in the heart of Nottingham City Centre;

3. Let to the established covenants of Kanoo Travel and Whittard who are long-term tenants;

4. Re-based rents;

5. Grade II listed property so no empty business rates payable;

6. A purchase at the asking price reflects a highly attractive net initial yield;

7. Attractive lot size for an investor.

8. The property is sold with the benefit of a rent guarantee from the vendor to ensure an investor has no issues receiving income in light of the Coronavirus Act 2020 Part 1 Section 82.