The property is a substantial mixed use building located in the centre of this popular Essex seaside town. The hotel had been operated since 2013 by Travelodge Hotels Limited (Travelodge) by virtue of a management contract. In 2023, terms were agreed for Travelodge to take a lease of the hotel, which was completed on the 29 November 2023. The three commercial units are fully let until May 2029 and beyond, and the seven flats are leased to individual tenants. These occupational arrangements enable the freeholder to proactively asset manage the property.
( Agency Pilot Software ref: 51666 )
Location
Clacton-on-Sea is a popular seaside town situated on the Tendring Peninsula of Essex in the South East of England. It is the largest settlement in the Tendring District and was officially incorporated in 1872 following the development of a pier and the former Royal Hotel on farmland near the villages of Great and Little Clacton. The town was developed with a focus on the tourist industry and it continues to be a popular leisure destination to the present day. Clacton-on-Sea has a pleasure pier, along with arcades, a golf course and other leisure facilities. There is a main shopping area that is in close proximity to Jackson House and Clacton Shopping Village is located at the northern edge of the town.
Accommodation
COMMERCIAL UNITS At ground floor level fronting Jackson Road there are three commercial units. A detailed tenancy schedule is provided in the data room showing that the leases for Units 1 and 2 expire in 2029, and Unit 3 expires in 2034. The total passing annual rent is £33,000 per annum, excluding service charge payments from the tenants.
APARTMENTS: FOURTH FLOOR Located on the fourth floor are nine apartments that were sold, by way of the granting of 125 years leases, in 2009 for premium payments. Each apartment pays a rent of £50 per annum, which is a fixed sum for the term of the leases. A Service Charge and Insurance Rent are also payable by the apartment tenants. Copies of the leases relating to the fourth floor apartments are included in the data room.
PARTMENTS: FIFTH FLOOR Located on the fifth floor are seven apartments (numbered 10 to 17, excluding number 13) that are let out on Assured Shorthold Tenancy Agreements. The majority of the apartments have an entrance hall, kitchen/lounge room, bathroom and bedroom. A tenancy schedule is provided in the data room and the annualised rent receivable (gross of letting, service charge and management costs) as at October 2024 is £59,700. The owner of the Property currently pays the service charge for the flats and this is not recharged to the individual tenants.
Terms
PLANNING We understand that the property has a valid consent for its current uses. However, we advise all interested parties to make their own enquiries with the Local Planning Authority in this regard.
TENURE The property is held freehold, subject to the occupational arrangements summarised in these marketing particulars and scheduled in the data room. The element of 45 Jackson Road that is under the control of a local housing association does not form part of the property being offered for sale. Included in the data room are copies of the tle documentation for the property, along with an explanatory note on the ‘ownership, anticipated sale structure and property management arrangement’.
ENERGY PERFORMANCE CERTIFICATE (EPC) The property has EPCs relating to the hotel, fifth floor apartments and commercial units. Copies of the EPCs are available to view in a data room.
VAT All prices quoted and offers made shall be deemed to be exclusive of VAT and VAT will be payable at the prevailing rate where applicable. Prospective purchasers should consult their accountant for professional advice in this respect.
ANTI-MONEY LAUNDERING (AML) To comply with current AML regulations, we will require the purchaser to provide information when Heads of Terms are agreed. We will advise the purchaser of the relevant documentation at the necessary time.
DATA ROOM A data room has been prepared and is available to seriously interested parties who have completed our client’s Non-Disclosure Agreement, a copy of which is available on request from the sole selling agent.
Specification
- MIXED USE INVESTMENT OPPORTUNITY INCORPORATING HOTEL, RETAIL AND RESIDENTIAL ACCOMMODATION
- 57-BEDROOM HOTEL LEASED TO TRAVELODGE FOR A TERM OF 25 YEARS FROM 29 NOVEMBER 2023
- SEVEN FLATS LET ON ASSURED SHORTHOLD TENANCY AGREEMENTS
- NINE FLATS LET ON 125 YEAR LEASES
- THREE COMMERCIAL UNITS LET TO INDIVIDUAL TENANTS
- CAR PARKING