Property Information
Address:
39-45 Penny Street, 1-3 Brock Street , And 18 Mary Street, Lancaster
, LA1 1UR
Price: Property no longer available.
Size: 87 to 441 sqm
Primary Category: Investment
All Categories:
Investment, Shop,
Property Ref/Movehut: MH355486
Property Ref/Agent: 39-45 Penny Street, 1-3 Brock Street and 18 Mary Street, Lancaster, LA1 1UR
*Please use the agent ref when calling the agent directly.
Property description
INVESTMENT HIGHLIGHTS
??Ä?Lancaster is the administrative centre for the county of Lancashire.
??Ä?Prime retail investment, with a prominent corner location with frontage on both Penny Street and Brock Street, with additional frontage to Mary Street.
??Ä?Let to the secure covenant of Clydesdale Bank plc, which is part of the National Australia Bank Group, with 11.8 years until expiry.
??Ä?Part occupied by the Yorkshire Bank, part sublet to four further tenants, including Greggs plc.
??Ä?Situated opposite Marks & Spencer, other nearby occupiers include River Island, Wilkinson's, Topshop and JD Sports.
??Ä?Total current rent ?190,000 per annum.
??Ä?Freehold
??Ä?Net initial yield: 7.00% allowing for purchasers costs of 5.80%
??Ä?Price of ?2,565,000 (Two Million, Five Hundred and Sixty Five Thousand Pounds) subject to contract and VAT
LOCATION
The university city of Lancaster is an attractive cathedral city in north west England, approximately 55 miles north west of Manchester, 57 miles north of Liverpool and 24 miles north of Preston. The catchment area of Lancaster is extensive due to this relatively remote location. The town benefits from excellent road communications being situated approximately 2 miles south east of Junction 34 of the M6 Motorway via the A683. The M6/M65 interchange is approximately 26 miles south of Lancaster. Lancaster Station is on the West Coast Main Railway line, running between London Euston and Edinburgh Waverley, with journey times from Lancaster at around 2 hours 30 minutes and 2 hours 15 minutes respectively. Lancasters closest airport is Blackpool International, 36 miles away. Manchester airport is 60 miles to the south, which provides access between a wider variety of destinations.
DEMOGRAPHICS
The city contains a young and affluent population of over 138,000 people. The young population is boosted by Lancaster University, a research institution held in high regard across the country, with over 10,000 current students, providing an attractive profile for retailers. The primary retail catchment population of Lancaster is approximately 188,000 people, which is above the Promis Centres average (153,000 people). In addition, spending is significantly boosted by tourism, with 4.6 million tourists bringing in over ?260m annually to the local economy.
SITUATION
The property is situated in the prime retailing location within the town centre, on the pedestrianised corner of Penny Street and Brock Street, with additional frontage on Mary Street.
Penny Street is the principle thoroughfare of the town and provides a link between the two shopping centres: Marketgate Shopping Centre and St Nicholas Arcade, which provide 135,000 sq ft and 103,000 sq ft of retail space respectively. Other retailers in the vicinity of the subject property include Marks & Spencer, River Island, Wilkinsons, Monsoon, TopShop and JD Sports.
DESCRIPTION
The property comprises a prominent, corner block of three retail units in a three storey period building with a self contained ancillary office, and basement accommodation with frontage to both Penny Street and Brock Street. There is also a separate two storey detached restaurant to the rear of the subject fronting Mary Street.
ACCOMMODATION
The subject property provides the following approximate net internal floor areas:
39A Penny Street
Ground Floor 313 sq ft
ITZA 267 sq ft
First Floor 624 sq ft
Second Floor 613 sq ft
Total 937 sq ft
41/43 Penny Street
Ground Floor 2,376 sq ft
ITZA 1,725 sq ft
Basement 1,209 sq ft
First Floor 1,166 sq ft
Total 4,751 sq ft
3 Brock Street
Ground Floor 234 sq ft
ITZA 234 sq ft
Basement 199 sq ft
First Floor 221 sq ft
Second Floor 284 sq ft
Total 938 sq ft
18 Mary Street (GIA)
Ground Floor 2,599 sq ft
Basement 64 sq ft
First Floor 713 sq ft
Total 3,376 sq ft
Offices (Accessed off Brock Street)
Second Floor 1,011 sq ft
Total 1,011 sq ft
TENURE
Freehold.
TENANCY
The property is let to Clydesdale Bank PLC on a full repairing and insuring lease for a term of 15 years from 19 October 2011, expiring on 18 October 2026, with 11.80 years unexpired. The current passing rent is ?190,000 per annum. The rent is subject to 5 yearly upward only rent reviews. The property is currently part occupied by the Yorkshire Bank and is part sublet to a further four tenants.
39a Penny Street is sublet to Greggs pic for a term of 15 years from 3 August 2001 expiring 28 September 2016 at a current rent of ?26,000 per annum.
3 Brock Street is sublet to Sheila Mills, trading as a flowershop, for a term of 10 years from 24 June 2003 expiring 23 June 2013 for a rent of ?10,000.
18 Mary Street is sublet to EL. WA. LT and LW Aspinall (trading as Spaghetti House) on a sublease commencing 1 July 2009 for a term of 15 years expiring 30 June 2024 at a passing rent of ?14,500 per annum.
The first floor offices at 1 - 3 Brock Street are occupied by a local language school by way of a licence.
VAT
The property has been elected for VAT purposes. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
PROPOSAL
Offers are sought in excess of ?2,565,000 (Two Million, Five Hundred and Sixty Five Thousand Pounds), subject to contract and exclusive of VAT.
Assuming standard purchasers costs at 5.80%, a purchase at this level would an attractive net initial yield of 7.00%.
EPC
An Energy Performance Certificate is available on request.
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