• A prime multi-let retail, office & residential investment

• Prime location in the heart of Northampton town centre

• Fully income producing

• Secure income let to national retailers and the Local Authority

• Active management opportunities

• £2,250,000, subject to contract

• 9.0% Net Initial Yield

• 9.8% Reversionary Yield

Abington Street is Northampton’s principal retail thoroughfare. The subject property occupies a prime retailing pitch on the northern side of Abington Street, at its junction with Wellington Street. The Grosvenor Centre is immediately to the west. Therefore, the property benefits from a strong pedestrian flow. Nearby occupiers include Marks & Spencer, H&M, Tesco, The Edinburgh Woollen Mill, Bonmarche, Specsavers and Sports Direct.

The Grosvenor Centre totals approximately 29,729 sq m (320,000 sq ft) and is the town’s main shopping centre, benefiting from over 60 shops and eateries plus over 800 car parking spaces. The Centre underwent a significant refurbishment programme throughout 2015 to provide a more modern and stylish shopping environment. The scheme is anchored by Primark, Next and Boots with other notable brands including Topshop, Superdry, Apple iStore, Lush, Pandora amongst others. The centre’s principal entrance on Abington Street is in close proximity to the subject property.

The property comprises a three-storey mixed use building providing three retail units on ground floor, together with offices on part first floor which are accessed via Abington Street. The remainder of the first floor and the whole of the second floor provide six residential apartments.

The retail units have been fitted out to a high standard by each tenant is their usual corporate style.

Service access and car parking for 9 vehicles is provided to the rear via Albert Place.

The Uniform Business Rate is 49.7 pence per pound for rateable values of £18,000 and above, and 48.4 pence per pound for rateable values below £18,000.

Freehold.

We devalue the current shop rents as follows:- 

49 Abington Street (Marie Cure Cancer Care) - £40,000 per annum - £65.32 psf Zone A 

51 Abington Street (Greggs) - £37,500 per annum - £69.82 psf Zone A 

51a-53 Abington Street (Blue Inc) - £80,000 per annum - £69.45 psf Zone A 

The current office rent (Blue Arrow) reflects £77.74 per sq m / £7.22 per sq ft. 

Following lease renewals to Blue Inc. and Greggs in May 2016 and February 2017 respectively, the leases are considered to be rack-rented.

Over the last few years a significant number of office premises have been converted to residential within the town centre which has created a shortfall of good quality available office space. Due to this shortfall there is a strong demand for good quality office space.  A conservative rental value of £8.50 per sq ft has been applied for the existing first floor offices.  

The development of the remainder of the upper floor offices to residential would also provide an obvious option, subject to obtaining the necessary planning consents. 

Two-bedroomed apartments in Northampton rent on the open market rent for approximately £650-£750 per month, whilst one-bedroomed apartments rent for approximately £550-£625 per month dependent upon condition. One-bedroomed student apartments rent for approximately £125 per person per week.  For the subject property, a rental value of £600 per month has been applied for the 1-bedroom apartments and £700 per month for the 2-bedroom apartments. 

In accordance with the attached schedule, we estimate the open market rental value for the property to be £233,595 per annum.

The service charge budget for the year ending 24th March 2017 is £12,500.00. 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 £2,250,000 (Two Million, Two Hundred and Fifty Thousand Pounds), subject to contract, reflecting a net initial yield of 9.0% and a reversionary yield of 9.8%, assuming standard purchaser’s costs of 6.33%.