The premises comprise a purpose-bult four/five storey block with the ground floor comprising a retail unit, storage and access for the residential parts. The upper floors comprise 26 one and two bedroom flats. The property is understood to have been constructed in 2009. The residential areas are constructed to a good standard including a lift, CCTV and fire alarms throughout the communal areas.
The ground floor retail area extends to approximately 2,634 sq ft (244.7 sq m), and we are advised that the entire building extends to approximately 20,000 sq ft (1,858 sq m).
( Agency Pilot Software ref: 96471 )
Location
The premises are located within Luton, which is the largest town in Bedfordshire, with a strong manufacturing base and population of approximately 200,000. Luton is located approximately 30 miles north of central London, being located immediately to the east of the M1, and approximately 11 miles north of the M25. The town is located on the Thameslink railway line providing fast and frequent services to London and has its own airport. The premises are located to the north east of the main town centre.
Accommodation
The ground floor retail area extends to approximately 2,634 sq ft (244.7 sq m), and we are advised that the entire building extends to approximately 20,000 sq ft (1,858 sq m).
Terms
Retail Lease Terms The premises are let on a twenty year FRI lease to a Mr J M Rashid who we are advised invested approximately £250,000 in fitting out. There are tenant break options in July 2024, January 2027 and January 2032. There are landlord break options in January 2027 and January 2032. The shop is currently trading strongly. The retail tenant also rents a storage area by way of a ten year lease from 2020 at a rent of £2,500 per annum. There is a rent review and tenant only break option in 2025. The tenant also rents two car parking spaces to the rear for £720 per annum. The total income for the shop, storage and car parking is £47,760 per annum. We are advised that the tenant has never missed a rent payment and a rent deposit of £16,500 is held.
Residential Units There are 26 residential units being a mixture of one and two bedroom flats all let on ASTs to private tenants (no DHSS or Housing Association). The current income from the residential units is £221,940 per annum. Overall total income £269,700 per annum.
Ownership The property is owned within an SPV, the shares of which are offered for sale thus reducing SDLT.
EPC/Asbestos The property has an EPC rating of ‘B’. The property was built after 2000 and accordingly no asbestos should have been included within the construction.
Guide Price Offers invited in the region of £4,300,000 (four million and three hundred thousand pounds) for the SPV owning the above property. This gives an approximate net yield of 6%. The vendor has offered to buy back the retail unit, storage and car park by way of a 999 year lease for £650,000 if this would be of interest.
VAT The property is not elected for VAT and accordingly there will be no VAT payable on the purchase price.P
Specification
• Ground floor trading as busy local supermarket
• 26 flats to upper floors
• Planning permission for 3 additional residential units to roof
• Current income £269,700 p.a.
• Rent deposit held for retail tenant
• Town centre location
• Constructed approx 2009
• No VAT
• Guide Price £4,300,000