Holly Street Trading Estate, Latimer Road, Luton, LU1 3XG

Summary

The subject site is an established industrial estate, comprising 10 units at ground floor level and first floor commercial space. The first floor space has recently been sold on a 999-year ground lease, subject to peppercorn rent. The estate extends to 26,711 sqft (2,482 m2) on a site area of approximately 0.81 acres.

Whilst by no means limited to the same, the estate and surrounding area is favoured by motor trade and manufacturing operators. Luton leans heavily on its industrial heritage and the motor trade sector is particularly strong.

The estate has benefited from recent improvements including decoration of all external elevations, upgraded electrics, satisfaction of compliance matters and the implementation of proper estate management (to include service charge and rent collection).

S.R. Wood & Son and Lewis & Partners are instructed to market the freehold interest in the subject site, providing the purchaser with a number of potential angles as summarised hereunder:

OPPORTUNITY 1 (Break-Up):
This disposal offers the buyer the opportunity to acquire the site as a whole and to re-sell the individual units for a profit. We are of the opinion that, given Luton’s high demand for motor trade premises, the units could command a re-sale value in excess of £200/sqft.
Potential re-sale value = £4,345,400.

OPPORTUNITY 2 (Redevelopment):
In addition, there is prospect for (subject to the necessary consents) the site to be redeveloped to help satisfy Luton’s ever-increasing housing demand. We understand that the neighbouring site is in the process of being redeveloped, setting a precedent.

OPPORTUNITY 3 (Investment)
S.R. Wood & Son are undertaking lease renewals and lettings at the subject site. Rents being achieved are in the region of £12.50/sqft. The rent roll is increasing at pace and has potential, through continued active management, to reach £271,590 pa.

Key Points

Location

Terms