Land For Sale £477,500
- Let to well established retailer, Poundworld Retail Ltd
- Excellent position just off the Market Place
- Attractive to local investors/family trust or SIPP purchaser
- New lease of 10 years from 29/11/2016
- 5 year rent review and 5 year tenant break
- Offers invited at £477,500 to show 7% net of costs
Full description
Tenure: Freehold
Mansfield is located 15 miles north of Nottingham, 24 miles south-east of Sheffield and 24 miles east of Derby.
The district has a population of approximately 100,000 persons, with some 320,000 living within 5 6 miles of the Town Centre and 842,000 within 10 miles.
Stockwell Gate is a prominent thoroughfare running in a westly direction from its junction with Market Place to connect with one of the main entrances to the Four Seasons Shopping Centre.
Nearby occupiers include; Superdrug, Halifax, Santander, Nottingham Building Society, Barclays Bank, Timpson's, Greggs, Bet Fred, Nationwide BS and Beales Department Store.
The property comprises a substantial double fronted Period Building, under a slate roof to the front elevation. There are further single and two storey extensions to the rear constructed at a later date.
The accommodation consists of a spacious ground floor sales area, together with stock, staffroom and storage facilities to the upper floor accommodation.
The property is let on a new 10 year full repairing and insuring lease to PoundworldRetail Ltd from 29/09/2016, expiring on 28/09/2026. The rent is subject to review as at 29thSeptember 2021.
There is a tenants option to determine the lease on 28thSeptember 2021 subject to 6 months prior notice in writing, time being of the essence.
Tenants Covenant PoundworldRetail Ltd is a value retailer established a number of years ago and are currently trading from in excess of 330 units. In May 2015 private equity group, TPG, acquired PoundworldRetail Ltd for £150,000,000 in cash highlighting the continuing boom in the UK discounters market.
Our credit search has revealed the following information:-
Score:80/100
Credit Limit:£2,800,000 pcm
Credit Rating:£1,400,000 pcm
Risk:Below Average Risk West Yorkshire based PoundworldRetail Ltd has circa 280 stores under the PoundworldRetail Ltd and Bargain Buy brands. It is the second biggest discount retailer in the UK, whilst Bargain Buys which operates with multiple prices trades from 50 sites across the country.
The US Buyout Group is planning to invest in expanding Poundworldsstore footprint across the UK, as well as new distribution facilities and retail systems including data analysis.
Asset Management Opportunity In our opinion the upper floors of the property are suitable for conversion into apartments/flats for which there is a ready demand in Mansfield.
Detailed plans have been drawn up but not implemented and are available upon request.
Rental Evidence The lease of the premises was renewed as at 29/09/2016. As an inducement for them to remain in occupation the tenants were granted a rent free period of 14 months, which will expire in November 2017. The Vendor will make up the shortfall in the rent between the date of completion of the transaction and 29/11/2017.
Our analysis of the rent of £35,000 equates to £30.69 Zone A, with £2.50 on the first floor and £1 on the second floor.
Recently 2 8 Stockwell Gate was let to Loungers Ltd for a term of 15 years on full repairing and insuring terms from 27/03/2017 at a rent of £45,000 per annum. Based upon the information available to us the headline rent equates to a figure of £31.32 Zone A.
For further information or to arrange a viewing please contact Noel Roper
T: 0115 841 1132
M: 07711 211511
E: noel@fhp.co.uk
