Well Secured Retail Opportunity

The Original Factory Shop | Great Western Road | Chard | Somerset | TA20 1EQ


asking price



  • Freehold retail investment opportunity

  • Let to The Original Factory Shop

  • Secure income; Shareholders’ Funds £46m

  • Approximately 8.75 years unexpired lease term

  • Guaranteed rental increase

  • 7.8% net initial yield

  • 9.0% guaranteed minimum reversionary yield

The Original Factory Shop | | Great Western Road | | | Somerset | Chard | | TA20 1EQ


Chard is a historic market town set in South Somerset, near the Devon and Dorset borders.  The town is located approximately 233 km (143 miles) south-west of London, 88 km (55 miles) south-west of Bristol, 56 km (35 miles) north-east of Exeter and 27 km (17 miles) south-west of Yeovil. 

The town benefits from good road communications, being located approximately 22 km (14 miles) south-east of Junction 25 of the M5 Motorway which provides access to Bristol to the north and Exeter to the south.  The town is also served by the A30 and A358.  Mainline rail services on the Exeter-London Waterloo line are available at Honiton and Crewkerne.

Chard is the home of Numatic International Limited, notable for its “Henry” vacuum cleaners.  The company employs over 700 people and produces over 4,000 products per day. 


The subject property occupies a prominent position fronting Great Western Road, less than 1.6 km (1 mile) from Chard town centre.  The A358 is immediately to the west and a B&Q retail warehouse is directly opposite.   A Tesco foodstore is located approximately 0.4 km (0.25 miles) to the south.  The property also benefits from being situated in a densely populated residential area.

The Original Factory Shop | | Great Western Road | | | Somerset | Chard | | TA20 1EQ


The property was formerly the Chard Central railway station which dates from 1866 and is an attractive Grade II listed single storey building with brick elevations set beneath a pitched roof.  An extension has more recently been added to the rear of the property to provide an enlarged sales area.  Internally, the property has been fitted out by the tenant to their usual corporate style to provide a main retail area along with ancillary staff and storage accommodation.  

There is a self-contained surface car parking area to the front and side of the property.

The Original Factory Shop | | Great Western Road | | | Somerset | Chard | | TA20 1EQ
The Original Factory Shop | | Great Western Road | | | Somerset | Chard | | TA20 1EQ


We understand the property is Grade II listed but is not located within a conservation area.


Planning consent was granted in May 2010 for “Internal and external alterations, the erection of a rear extension, car parking and the change of use of premises from business use (Class B1) to a shop (Class A1)”.


The property provides the following Net Internal Areas:

Retail 599.31 sq m 6,451 sq ft
Ancillary 124.02 sq m 1,335 sq ft
Total 723.33 sq m 7,786 sq ft
The Original Factory Shop | | Great Western Road | | | Somerset | Chard | | TA20 1EQ
The Original Factory Shop | | Great Western Road | | | Somerset | Chard | | TA20 1EQ




The property is entirely let to The Factory Shop Ltd, guaranteed by OFS (DS) Holdings Limited, on a full repairing and insuring lease for a term of 15 years from 26th May 2010, expiring 25th May 2025 (approximately 8.75 years unexpired lease term).

The current passing rent is £78,251 per annum (£108.18 per sq m / £10.05 per sq ft). The lease benefits from a rent review on 26th May 2020. The rent is to be reviewed to the higher of 3% per annum compounded (£90,714 per annum) or RPI.

The permitted user under the terms of the lease is “for use as a retail shop as permitted by Class A(1) of the Town & Country Planning (Use Classes) Order 1987”.


The Factory Shop Ltd (Co. No. 4176887), has reported the following figures;

  29th March 2015 29th March 2014
Turnover £174,334,000 £162,984,000
Pre-Tax Profits £7,627,000 £3,201,000
Shareholders’ Funds £45,788,000 £39,515,000

The Original Factory Shop was founded in 1969 and comprises over 200 ‘mini’ department stores across the UK, as well as a trading website.  The business sells a wide range of branded and own sourced products across fashion, footwear, and household departments at significant discounts to a broad customer base.  Stores are most often in market towns and tourist locations where they act as both a shopping destination and the major non-food retailer in the immediate locality.  The group has continued its store opening program, with 11 new stores opened in the latest financial year.  The group intends to open 15 stores in the 2015/16 financial year and believes there is potential for at least 400 Original Factory Shop stores throughout the UK.  Additionally, the Olympic Programme has been launched, aimed at updating the older stores within the portfolio. 

For further information please visit www.tofs.com.

The Original Factory Shop | | Great Western Road | | | Somerset | Chard | | TA20 1EQ
The Original Factory Shop | | Great Western Road | | | Somerset | Chard | | TA20 1EQ

Value Added Tax

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


Our client is seeking £950,000 (Nine Hundred and Fifty Thousand Pounds), subject to contract, reflecting a net initial yield of 7.8%, and a guaranteed minimum reversionary yield of 9.0% in May 2020, assuming standard purchaser’s costs of 5.69%. 

Investment Considerations

  1. An opportunity to acquire a freehold retail investment;

  2. The investment provides secure income - let to The Factory Shop Limited - Shareholders’ Funds £45.8 million;

  3. Approximately 8.75 years unexpired lease term;

  4. The lease benefits from a guaranteed rental increase;

  5. The property may lend itself to alternative uses in the future, subject to obtaining the necessary planning consents;

  6. A purchase at the asking price reflects an attractive yield profile;

  7. The investment provides a purchaser with an attractive lot size.

The Original Factory Shop | | Great Western Road | | | Somerset | Chard | | TA20 1EQ

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
Richard Wolfryd richard@singervielle.co.uk +44 (0) 203 701 1353
Graham Waddell graham@singervielle.co.uk +44 (0) 141 221 4545
Faye Langoulant faye@singervielle.co.uk +44 (0) 203 478 9122
Louanne Malan louanne@singervielle.co.uk +44 (0) 203 701 1386


Vendors Solicitors

Kuits Solicitors  
David Moroney davidmoroney@kuits.com +44 (0)161 832 3434