Summary
Hempsted Local Centre is a striking modern two-storey mixed-use scheme built in late 2015, on a site of about 0.62 acres arranged in two blocks. The ground floor has 8 retail units totalling 10,595 sq ft. The first floor has 14 flats (7 x 1-bed and 7 x 2-bed), which are sold off on a single long lease to 2267 with 10-yearly RPI-linked reviews. There is a secure service yard and a resident car park for 18 vehicles at the rear, plus on-street customer parking for 44 vehicles.
The property is fully let to 9 tenants and produces £195,115 p.a. at a low average rent of £18.09 per sq ft across the retail units. The anchor is Central England Co-operative (t/a Co-op), paying £69,365 p.a.x on a lease to May 2031 with RPI-linked reviews (1–4% collar and cap). Other occupiers include Barnardo's, Pizza Hut Delivery, Wok & Eat, Rumbles Fish Bar, Full of Beans, Finesse by Beni and KHZ Enterprise. The WAULT is 8 years to expiry and 5 years 9 months to break. The leases are effectively FRI, with costs recovered through the service charge, and all retail units are EPC A.
We are seeking offers in the region of £2,900,000, subject to contract and exclusive of VAT, for the freehold interest. This reflects a net initial yield of 6.32% and a reversionary yield of 6.50% after standard purchaser's costs. The property is elected for VAT, and the sale is expected to be treated as a TOGC.
Key Points
Anchored by Central England Co-operative (t/a Co-op) at £69,365 p.a.xFully let to 9 tenants, producing £195,115 p.a.WAULT 8 yrs to expiry / 5 yrs 9 mths to break8 modern retail units (10,595 sq ft), built 2015, all EPC A14 flats sold off on a single long lease (c.242 yrs unexpired)Prominent island site with 44 on-street customer parking spacesNext to Hampton, where 3,500+ new homes are plannedFreehold: OIRO £2,900,000, a NIY of 6.32%Tenure
Freehold (Title No CB363177). The 14 flats are sold off via a single long lease expiring 14/05/2267.
Location
Peterborough is the largest city in Cambridgeshire, about 35 miles north-west of Cambridge and 80 miles north of London. It has quick access to the A1(M) and A47, and direct trains to London King's Cross in as little as 48 minutes. The city has a primary retail catchment of 293,000 people.
Hempsted is an established residential suburb about 2 miles south of the city centre on the A15 London Road. It sits next to Stillwater Nature Reserve and the expanding township of Hampton, where over 3,500 new homes are planned. The property occupies a prominent island position at the centre of the Drakes Avenue / London Road / Columbus Road gyratory, close to Fletton Parkway (A1139) and Junction 17 of the A1(M).