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Office & Retail Investment, 26-31 St Augustine's Parade, 1-5 St Augustine's Place, Bristol, BS1 4UL

21,841 Sq Ft / Retail / Investment

For Sale - £4,000,000.00

Available - Last updated: 01 December 2021

The property comprises two adjoining buildings – St. Augustine’s Parade and St. Augustine’s Court.

They are fully let to 12 tenants and arranged to provide 6 ground floor shops with a total floor area of 5,493 sq. ft. Self-contained office accommodation on first to fourth floors totals 16,348 sq. ft.

The buildings are Grade II Listed and were originally constructed of timber or cast-iron frame, which in some instances has been replaced with brick construction. The external elevations are either brick or rendered and the property has a pitched tiled roof.

The property has the benefit of 3 car parking spaces at the rear.

St. Augustine’s Parade - This building comprises 3 ground floor retail shops with 3 floors of offices over. The offices have recently been refurbished and provide modern airy accommodation in self-contained suites ranging in size from 2,066 sq. ft. to 2,238 sq. ft. Male and female toilets are provided on each floor.

Recent refurbishment of this property generated significant rental growth.

St. Augustine’s Court - This building also comprises 3 ground floor shops with 4 floors of offices over. The offices are predominantly let to a single tenant. The property offers excellent potential to increase rental income through refurbishment into selfcontained suites ranging in size from 905 sq ft to 2,825 sq ft. Male and female toilets are provided on each floor and the building benefits from a passenger lift to all floors.

Location

The property is situated in a very prominent position on the western side of St. Augustine’s Parade which is the A38 dual carriageway running through Bristol city centre. St Augustine’s Parade takes its name from its proximity to Bristol Cathedral where the original building, “The Abbey of St Augustine”, was built in 1240.

The property is located in close proximity to the Central Business District, Clifton and Harbourside. Temple Meads railway station is a 10 minute walk away as is Cabot Circus Shopping Centre. Access to the M32 and regional motorway network is only one mile away and a comprehensive bus service runs from outside the buildings.

The immediately surrounding area is a prime location for both offices and residential occupiers. Recent student accommodation and PRS developments have transformed the city centres residential profile. Notable retail occupiers in the vicinity include Boots, Pamela Neave Recruitment, Pizza Hut and Tesco.

The property sits between the famous Hippodrome Theatre and the renowned live entertainment venue - The Bristol Beacon (formerly Colston Hall) - making this a vibrant focal point for city centre leisure activity throughout the day and well into the night.

There are a number of bars and restaurant occupiers on the adjacent dockside and in Bristol’s prime leisure pitch of Corn Street, which is situated opposite St Augustine’s Parade. Hotel Du Vin, Radisson Blue and the Marriott Royal Hotels are all in close proximity to the ownership.

Accommodation

St Augustine's Parade

Ground Floor Shop - 26-28 St. Augustine’s Parade - 1,775 sq ft

Ground Floor Shop - 29 St. Augustine’s Parade - 306 sq ft

Ground Floor Shop - 30-31 St. Augustine’s Parade - Retail: 978 sq ft; Ancillary: 107 sq ft

First Floor Offices - 26-29 St. Augustine’s Parade - 2,066 sq ft

Second Floor Offices - 26-29 St. Augustine’s Parade - 2,238 sq ft

Third Floor Offices - 26-29 St. Augustine’s Parade - 2,084 sq ft

St Augustine's Court

Ground Floor Shop & Basement - 2 St. Augustine’s Court - Retail: 518 sq ft; Basement: 392 sq ft

Ground Floor Shop & Basement - 3 St. Augustine’s Court - Retail: 503 sq ft; Basement: 415 sq ft

Ground Floor Shop - 4-5 St. Augustine’s Court - 499 sq ft

Part First Floor Offices - 30 St. Augustine’s Court - 905 sq ft

Part First, Second & Third Floor Offices - 30 St. Augustine’s Court - 1st Floor: 1,903 sq ft; 2nd Floor: 2,225 sq ft; 3rd Floor: 2,650 sq ft

Fourth Floor Offices - 30 St. Augustine’s Parade - 1,677 sq ft

TOTAL RETAIL - 5,493 sq ft

TOTAL OFFICE - 16,348 sq ft

Terms

Proposal

Our clients are seeking a price of £4,000,000 for their long leasehold interest in this property which would provide a purchaser with a net initial yield of 7.74% after allowing for purchaser’s costs of 6.3%.

Tenure

The property is held on a long lease from Bristol City Council for a term of 125 years from 24th June 1984 – i.e. 87 3/4 years unexpired. The lease is on full repairing terms and the tenant is responsible for insuring the property.

The current rent payable is £37,500 per annum.

The lease provides for upward only rent reviews every 5 years to 12½% of the open market rack rental value of the property. “Rack rental value” is defined as the best yearly rent obtainable for the property assuming a letting with vacant possession for a term of not less than 25 years with upward only rent reviews and on full repairing and insuring terms.

The June 2019 rent review is still under negotiation with the Council.

The permitted user is shops and offices, or any use for which planning permission (if required) is obtained, subject to landlord’s consent which is not to be unreasonably withheld or delayed.

Occupational Leases

The property is fully let to 12 tenants on internal repairing leases as detailed in the Schedule of Accommodation and Tenancies.

The current rental income totals £366,517 per annum.

The landlord insures the building, and the tenants reimburse the cost of the premium.

The landlord deals with external and structural repairs with the cost being recoverable through a service charge. The total service charge budget for the current year is £121,500.

Net Income

The investment produces a net rental income of £329,017 per annum.

Asset Management Opportunities

The property offers several asset management and added value opportunities:

  • Refurbish the St. Augustine’s Court offices to increase rents in line with the lettings in St. Augustine’s Parade.
  • Convert the office accommodation to residential apartments.
  • Extend and/or regear the headlease with Bristol City Council.

Rental Income

Retail - The shops fronting St. Augustine’s Parade are let at Zone A rents of between £33.16 and £52.63. 4-5 St. Augustine’s Court fronts Pipe Lane and is valued as kiosk, given its size and configuration. This shop has just been let as a takeaway at a commencing rent of £10,000 pa and completion of the lease is imminent.The rent rises by £1,000 pa for each of the first 5 years of the term.

Offices - The offices in St. Augustine’s Parade have been refurbished and are let at rents of between £16.65 and £19.19 per sq. ft. The offices in St. Augustine’s Court are not as modern and are let at rents of between £9.54 and £12.19 per sq. ft.

VAT

The property is registered for VAT and therefore Value Added Tax will be payable upon the purchase price.

It is expected, however, that the transaction will be treated as a TOGC.

Specification

INVESTMENT SUMMARY

  • Centrally located close to the Central Business District, Harbourside and Clifton
  • Fully let to a broad mix of tenants and users (12 tenants) thus limiting exposure to any one occupier
  • Prime office and residential location
  • Vibrant retail and leisure pitch with day and night time activity
  • Office floorplates range from 905 sq. ft. to 2,825 sq. ft.
  • Office rents from as low as £9.54 per sq. ft.
  • Potential to convert the offices to residential
  • Opportunity to improve income profile through refurbishment of some of the offices
  • Long leasehold interest from Bristol City Council – 87 years unexpired
  • Total net rent of £329,000.17 per annum
  • Offers are sought in the region of £4,000,000
  • Net Initial Yield - 7.74%

Property Quote Price(s)

DescriptionSale typeGuide pricePrice type
  For Sale Freehold £4,000,000.00 NA

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Contact agents

Russ Power

M & P Property Consultants LLP

0117 369 1277

David Thompson

Rowley Hughes Thompson

0121 369 1803



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