For Sale £670,000.00 - Investment
Prime Retail Investment
Occupies a prime position in the Lake District market town of Kendal
Let to the undoubted covenant of Specsavers Optical Superstores Limited
Rental – £43,000.00 per annum
Price – £670,000.00 subject to contract
Kendal is the principal town of South Lakes and is situated just outside the southern boundary of the Lake District National Park, only six miles from J36 and J37 of the M6 motorway. The town has a resident population of 29,495 (2011 Census) and is a popular tourist destination, being ten miles south of Windermere and the gateway to the Lakes, which has recently gained World Heritage status. The town has a catchment in excess of 50,000 people, and a greater district catchment in excess of 102,000. The district’s class grouping indicates that in excess of 50% of the catchment area is A, B or C demographic.
Oxenholme train station is situated on the West Coast main railway and is located four miles to the south, providing direct access to London with an approximate journey time of two hours, fifty minutes.
The property is situated on the prime retail thoroughfare of Stricklandgate in the centre of Kendal, adjacent the Stricklandgate entrance so the Westland shopping centre, and directly opposite the Elephant Yard shopping centre. Nearby occupiers include the likes of Next, Boots, KFC, Santander, Joules Clothing, Pandora, WH Smith, New Look, etc.
The property comprises a two-storey, mid-terrace building of stone construction under a pitch slate roof. Internally the accommodation comprises a ground floor retail area, together with first floor retail sales. The sales area has been fitted out in the tenant’s corporate style.
The property provides the following approximate floor areas:
Ground floor sales area: 975 sq ft
First floor sales: 900 sq ft
First floor ancillary: 71 sq ft
All measurements have been made in accordance with the RICS Code of Measuring Practice.
We are informed the property is freehold.
The property is let to Specsavers Optical Superstores Limited on the basis of a ten year full repairing and insuring lease from July 2018 at a rent of £43,000 pa, subject to a rent review at the end of the fifth year of the term. The lease incorporates a tenant’s only break option exercisable at the end of the fifth year of the term, subject to the tenants giving six months’ notice and paying a three month rent penalty.
An Energy Performance Certificate will be available in due course.
The property is elected for VAT and, providing the criteria are met, the transaction will be treated as a TOGC.
In accordance with Anti-Money Laundering Regulations, two forms of identification and confirmation of the source of funding will be required from the successful purchaser.
Founded in 1984 by Mary and Doug Perkin, Specsavers trade from over 1,650 branches in the United Kingdom, Guernsey, Jersey, Ireland, Norway, Sweden, Finland, Denmark, The Netherlands, Spain, Australia and New Zealand.
For the year end 28 February 2018 the company had a turnover of over £622 million, and a pre-tax profit of £20,860,000. The tenant has a Creditsafe rating of 78 out of 100, 100 representing a very low risk.
We are instructed to quote a price of £670,000 (Six Hundred and Seventy Thousand Pounds) subject to contract which would show a net initial yield of 6.2% allowing for normal purchaser’s costs.