Multi Let Neighbourhood Retail Investment 39-49 OULTON RISE, SPINNEY HILL, NORTHAMPTON NN3 6EW

LOCATION

Northampton is 67 miles north west of London, 45 miles south east of Birmingham and 30 miles north east of Oxford. The town lies to the east of the M1 motorway with Junctions 15, 15a and 16 all serving the town.

The town’s main arterial roads include the A45, which leads eastwards towards Wellingborough and south towards Junction 15 of M1. The A4500 Weedon Road leads eastwards from Junction 16 into the town centre. The A508 leads north towards the A14 and south through the town and out to Junction 15.

Northampton’s primary catchment population is just under 475,000 and has an estimated 240,000 shopping population. The area is forecast to see significantly above average population growth. The East Midlands Regional Development Plan has allocated 128,000 new homes for the County by 2026.

The subject property occupies a prominent corner position at the junction of Oulton Rise and Spinney Hill Road in the Spinney Hill residential suburb of the town, two miles north of the town centre. The property provides neighbourhood retailing provisions for the surrounding 1970’s residential estate and lies opposite Northampton School for Girls. Parklands Primary and Nursery Schools are within walking distance of the property further along Spinney Hill Road. There are bus stops directly outside the property on both Oulton Rise and Spinney Hill Road.

INVESTMENT SUMMARY

• Multi let neighbourhood retail parade in residential area of Spinney Hill, opposite Northampton School For Girls

• Four ground floor retail units anchored by Co-op

• Four residential flats above, sold off on long leasehold interests

• Fully let with a AWULT to expiries of 8.5 years and 5.9 years to breaks

• Current combined passing rent of £59,337 per annum

• Asking price - £690,000

• Initial Yield – 8.16%

Spinney Hill

Town Centre

A5095

A4500

A5076

A45

A4500

DESCRIPTION

The subject property comprises a terrace of four ground floor retail units with four residential flats above. The property has customer car parking to the front of the units with two access points from Oulton Rise and Thruxton Drive. There is a loading yard and additional parking to the rear of the property. There are four lock up garages on site, sold with the four flats.

There is currently no A5 offering in the block, we believe there would be strong demand if planning permission was secured for a takeaway use.

TENURE

Freehold.

SCHEDULE OF ACCOMMODATION AND TENANCIES

The individual retail units’ floor areas are shown in the schedule below. The retail is let to four separate tenants while the four first floor flats are all sold off on long leasehold interests. The current combined passing rent is £59,337 per annum. 52% of the rent is secured to Co-operative Group Food Ltd. There is an AWULT of 8.5 years to expiries and 5.9 years to breaks.

There are only 81 years left on each of the long leasehold interests.

There is a service charge in place which has a current budget of £10,000 for the current year. This is split pro rata between the commercial and residential interests.

Floor Tenant Floor Area (sqft)

Rent(£ pa)

Rent(£ psf)

Lease Start Lease Expiry(Break)

Comments EPC

39 M R Brownt/a Locke’s

785 £9,000 11.46 04/11/2016 03/11/2026(04/11/2019)

Rent review 04/11/2021. £2,400 rent deposit held.

TBC

41 S Maloneyt/a Radiance

750 £9,000 12.00 29/06/2016 28/06/2021(29/06/2019)

£2,400 rent deposit held. Tenant’s electricity includes the communal area supply. Reimbursed through sub metre readings.

C-63

43 Superclean (NN3) Ltd

790 £10,000 12.66 15/06/2018 14/06/2028(14/06/2021)

£2,500 rent deposit held. TBC

45-49 Co-operative Group Food Ltd

3,670 £31,137 8.48 03/10/2013 02/10/2028(02/10/2023)

02/10/2023 rent review based on annual RPI growth with collar & cap of 1-4%. 2018 review to be documented. The rent of £31,137 has been proposed based on the RPI growth over the last 5 years.

TBC

Flats Various £200 (combined)

25/12/1974 24/12/2099 From 2024 the rents will increase to £75 per annum, per flat and a further £25 every 25 years.

Total £59,337

University ofNorthampton

ParklandsPrimary School

Thomas BecketRC School

NorthamptonSchool for Girls

A5123

Co-operative Group Food Ltd main business is the provision of food retailing. They trade from about 2,500 stores and as a business are focused on the convenience and neighbourhood markets. The Co-op opened about 100 stores in 2017 and the intention is to open a similar number during this year as well.

The company reported the following figures in the last three years’ of accounts:

06/01/2018(£’000s)

31/12/2016(£’000s)

01/02/2015(£’000s)

Turnover 7,159,600 6,933,400 6,457,500

Pre Tax Profit 195,400 148,200 (429,600)

Net Current Assets 1,875,100 1,805,400 1,846,400

PRICING

We are instructed to seek offers in excess of £690,000 which reflects an initial yield of 8.16%

based purchaser’s costs of 5.33%.

VAT

The property is elected for VAT and VAT would be payable on the purchase. The intention would be to sell as a TOGC.

EPCs

The outstanding certificates are in hand and will be available shortly.

FURTHER INFORMATION

Should you require further information or wish to arrange an inspection please contact:

Misrepresentation Clause: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price Ltd, nor any of their employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Prices and rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the condition of such equipment for their requirements.

Franck Steier Price LtdThird Floor, Victoria House114-116 Colmore Row, Birmingham, B3 3BD

ANDREW PRICE0121 513 0892andrew.price@fspproperty.co.uk

JAMES HEMSTOCK0121 513 0894james.hemstock@fspproperty.co.uk