The property comprises a substantial Victorian building with accommodation arranged on basement, ground and two upper floors. The ground floor and basement are currently let to Age UK who have been in occupation since circa 1997/1998. The shop has been recently refitted.
The first and second floors comprise three selfcontained spacious apartments, two on the first floor and one on the second floor.
To the rear of the property there is a small car park which is demised to Age UK.
The property is of traditional 9” brick construction under a pitched tiled roof and is in excellent condition throughout, having been thoroughly refurbished.
The accommodation of each flat consists of a living area/kitchen with fitted units and white goods, together with a separate bathroom/shower room/WC. Each flat has the benefit of individually controlled electric night storage heaters.
Location
Alfreton lies within Amber Valley, 14 miles north of Derby and 17 miles north-west of Nottingham. It has good road communications via the A38 providing access to the M1 (Junction 28) and East Midlands Airport to the south.
The town has a population of 23,000 and a retail catchment of 138,000.
The retail element of the town serves the needs of the surrounding community. The main shopping facilities for Alfreton are centred upon the High Street and Institute Lane.
The property occupies an established trading position on the northern side of High Street towards its western extremity.
Nearly occupiers include Lloyds Bank, Nationwide Building Society and British Heart Foundation. Other retailers located in the centre of Alfreton include Wilkinson Hardware Stores, Home Bargains, Boots, Bon Marche, Superdrug, Costa Coffee and Barclays Bank.
Accommodation
Basement Stores - 37.62 sq m (405 sq ft)
Ground Floor Sales - 69.48 sq m (748 sq ft)
Ancillary - 14.49 sq m (156 sq ft)
Store/WC - 8.17 sq m (88 sq ft)
Sub-total - 129.78 sq m (1,397 sq ft)
First Floor Flat No 1 - 56.94 sq m (613 sq ft)
Rear Flat No 2 - 32.97 sq m (355 sq ft)
Top Floor Flat No 3 - 55.92 sq m (602 sq ft)
Sub-total - 145.85 sq m (1,570 sq ft)
Total - 275.63 sq m (2,967 sq ft)
Terms
Rental Evidence - It is deemed that the property is rack rented. Our analysis of the rent using £1.50 on the basement stores and £2.50 on the ancillary is a Zone A figure of £27.50. The three flats are let at £550, £495 and £535 pcm and are considered to be rack rented. Total residential income £18,960 per annum.
Tenure - Freehold.
Tenancies - The ground floor and basement are let to Age UK Derby & Derbyshire (Company No 03510613) for a term of 6 years from 6th May 2021 expiring in 2027 with a TOB and a rent review as at 6th May 2024. The current rent is £16,000 per annum and remained the same upon renewal.
Retail Tenant’s Covenant - Age UK Derby & Derbyshire are shown by Experian to have a credit rating of:-
- Risk Score: 60/100
- Risk: below average risk
- Credit limit: £22,000
- Credit rating: £11,000
The principal activities of the company are listed as “improve the lives of the older in Derby and Derbyshire taking care to value diversity and include and involve people from all communities”
For the years ending 31st March 2018, 2019 and 2020 the net profits were £2.496 million, £5.74 million and then minus £8.454 million (COVID-19). The net assets as at 31st March 2020 are shown to be £1,009,201.
VAT - The property is not registered for VAT and therefore the sale does not attract VAT.
Price - Offers are invited at a figure of £425,000 which is a gross yield of 8.225% prior to costs
Specification
- Excellent ground floor tenant in occupation since 1997
- Three recently reconfigured and upgraded flats producing £18,960 pa. Retail rent £16,000 pa.
- Excellent condition, both retail and residential accommodation recently refurbished
- Offers invited at £425,000, gross yield 8.225%
- VAT exempt