for sale high yielding retail investment
TRANSCRIPT
For SaleHigh Yielding Retail Investment
968 Abbeydale RoadSheffield S7 2QF
968 Abbeydale RoadSheffield S7 2QF
• Modern retail development with dedicated car parking
• Residential element with ground rent income
• Affluent area of Sheffield
• Asset management opportunities
• Freehold
• Weighted average unexpired lease term of 10.7 years
• Rent passing £102,750 per annum (over 50% secured against Majestic Wine)
• Offers in excess of £1,180,000
• Attractive initial yield of 8.23%
Investment Summary
968 Abbeydale RoadSheffield S7 2QF
Location
Sheffield is the largest urban area in South Yorkshire and is the principal financial and commercial centre for South Yorkshire, North Derbyshire and North West Nottinghamshire.
The city is located approximately 196 miles north of London, with the West Yorkshire conurbation of Leeds and Bradford being approximately 36 miles to the north. The subject property has a mix of commercial uses and residential with Sheffield City Centre being located approximately 2.5 miles to the north.
The property fronts the A621 Abbeydale Road, which is oneof the main arterial routes connecting Sheffield with the southern conurbations of Bradway, Dore and further the eastern side of the Peak District National Park.
A6
1 A61 A61
A
61
Bram
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A62
1
Abbeydale R
d
A62
1
A
bbey
dale
Rd
A625
Ecc
lesa
ll Rd
A
62
5
Ecclesall Rd
A625
Manchester Rd A 57 Manchester R
d A57
Fullwood Rd
City Rd
SHEFFIELDCITY
CENTRE
A61
Che
sterfi
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Rd
A
61
Lo
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Rd
A
61
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A5135 Granville Rd A5135 C
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A6102 Norton Rd
Ri
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A6102
Prin
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of W
ales
Rd
A57
Mo
sbo
rou
gh
Parkw
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A57 Sheffield Parkway A630 Sheffie
ld Pa
rkway
A57
A6135
M1
M1
A630
Owler Ln
Brig
htside Ln
Shef
field
Rd
Meadowhall R
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A61
A61
A61
A61
A6135
She
pc
ote
Ln
Rive li n
Va
lley
Rd
H
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Loxley Rd
Derbyshire Ln
Gleadless Rd B6388
Glosso
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Elling h am Rd
A 6102
Herries Rd
B607
0
Rutla
nd Rd
B608
3
Carlis
le St
E
Penistone Rd
Barnsley Rd
A6178 A
ftercliffe Rd
Peak District
M1(N) / M62
M1(S)
968 Abbeydale RoadSheffield S7 2QF
Description
The property comprises a purpose-built block completed in 2006, providing three ground floor retail units with five apartments above. The property also benefits from 25 car parking spaces for the customers, staff and residents.
The property is of stone construction with rendered external elevations beneath pitched, tiled roofs. The ground floor retail units benefit from fully glazed aluminium shop fronts with the residential units having sealed unit double glazed windows.
Internally, the retail accommodation has been fitted out to the requirements of the individual tenants with all of the properties having suspended ceilings, recessed lighting and the Majestic Wine and Vets4Pets properties having comfort cooling.
The upper floors comprise five two bedroom apartments which have been sold on long leases.
968 Abbeydale RoadSheffield S7 2QF
Site
ABBE
YDAL
ERO
AD
980
974
25
978
23
flats
1to
5 964
966
to96
8
972
962
0m 5m 10m 15m
Ordnance Survey © Crown Copyright 2013. All rights reserved. Licence number 100022432. Plotted Scale - 1:500
968 Abbeydale RoadSheffield S7 2QF
Tenure
The property is held freehold.
Accommodation and Tenancies
The property is let in accordance with the Tenancy Schedule below.
Demise Area (ft²) Tenant Lease Start Lease Ex Rent (pa) Rent (ft²) Comments
Unit 1 1,079 Ruben Tse Kong 13/03/2006 12/03/2026 £16,000 £14.83 Original lease to Wokswagon (2005) Ltd who are now in administration. Lease assigned to current tenant in Jan 2010. Tenant has provided a 6 month rental deposit.
Unit 2 2,046ABTW Ltd
t/a Vets4Pets02/05/2013 01/05/2031 £30,000 £14.66
Tenant has been in occupation since 2006 & has recently signed a new lease to extend the term by 10 yrs for the benefit of 9 months rent free.
Unit 3 3,568Majestic Wine
Warehouses Ltd10/03/2006 09/03/2021 £56,000 £15.70
Original lease to ChoicesUK Plc who are now in administration. Lease was assigned to current tenant in December 2006.
Apartments 1 - 5
n/a 01/03/2006 01/03/2132 £750 The apartment rents are £150 per annum, which doubles every 25th anniversary of the start date.
TOTAL 6,693 £102,750
968 Abbeydale RoadSheffield S7 2QF
Covenant
Majestic Wine Warehouses Limited
Majestic Wine was founded in 1980 in North London and specialise in selling wine by the case. Majestic Wine currently have over 190 stores throughout the UK.
The tenant has the following financial headlines.
ABTW Limited
ABTW Limited are the trading company operating the veterinary practice.
Vets4Pets Veterinary Group Limited Vets4Pets Veterinary Group Limited provide veterinary support services to Vets4Pets practices including ABTW Limited.
Vets for Pets Veterinary Group Limited is now wholly owned by Pets at Home Limited following the acquisition of the business for around £40m in April 2013. Pets at Home Limited’s most recent financial accounts (28/03/2013) show a turnover of £586.35 million, pre-tax profits of £77.7 million and shareholder funds of £392.3 million.
Ruben Tse Kong Ruben Tse Kong is the business owner who works from the subject property. He operates a further two restaurants and commented that trade is robust in all three.
01/04/2013 (000’s) 02/04/2012 (000’s) 28/03/2011 (000’s) 19/03/2010 (000’s)
Turnover £248,541 £253,216 £234,217 £213,540
Pre Tax Profit £20,443 £20,013 £18,571 £25,620
Shareholder Funds £53,091 £47,440 £37,086 £30,179
968 Abbeydale RoadSheffield S7 2QF
Further information
Ben Hall0113 280 8064
Property website, downloads and further information
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Asset Management The business owners of both ABTW Ltd and the Chinese takeaway restaurant have expressed an interest in buying in their units, which could be structured via the creation of a LLH interest. Further details can be provided upon request.
Opportunity to approach Majestic wine to extend their lease.
VAT The property is elected for VAT and therefore we envisage the transaction will be dealt with by way of a TOGC.
Energy Performance Certificate We are advised that the property has the following EPC ratings
Unit 1 - B 42
Unit 2 - C 42
Unit 3 - C 61
Apartments - D 65
We have taken EPC’s from two apartments to formulate a sample and an average rating for all five apartments.
Proposal We are instructed to seek offers in the region of £1,180,000 (One Million, One Hundred and Eighty Thousand Pounds). A purchase at this level reflects an attractive initial yield of 8.23%.
The property is being sold on behalf of administrators.
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GVA Grimley Limited Conditions under which Particulars are issued GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agentsthey are, give notice that:1.) The particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offeror contract. 2.) All descriptions, dimensions, references to condition and necessary permission for use and occupation, and other details, are given in good faith and are believed to becorrect but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctnessof each of them. 3.) No person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation tothis property. 4.) All rentals and prices are quoted exclusive of VAT. Reproduced by courtesy of the Controller of HMSO. Crown Copyright reserved. Licence No 774359. If applicable, withconsent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map Co Ltd and/or The Automobile Association. For identification purposes only. February 2014.
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