Investment Opportunity - Convenience store investment let to Southern Co-Op, together with two local centre shops.
ERV: £90,000 per annum
Potential net initial yield: approx 6.41%
Knights Court is situated at Old Sarum, some 3 miles north of Salisbury and 6 miles south of Amesbury/A303. Accessed off The Portway, the development comprises a local centre site serving around 1,000 new homes which have been constructed by Persimmon/Charles Church as well as Old Sarums industrial centres to the south. Further development is planned in the vicinity in the future.
The premises comprise two lock-up shops in one block and a convenience store in the other. There is ample circulation space to the frontages of the shops and also customer parking. There are some 16 apartments on the upper floors which have been sold off on long leases to private owners.
Southern Co-op have completed their fit out of the convenience store and have commenced trading in the last few months while Unit 1 is under offer to a regional retailer which has around 12 existing outlets. A tenant is being sought for Unit 2. Both lettings have been agreed on the basis that the developer will install the shop fronts and provide a WC, otherwise they will be handed over in shell specification with screeded floors and blockwork walls in readiness for the tenants to fit-out.
Approximate Gross Internal Areas (off plan)
Unit 1 - Shop 86.6 932
Unit 2 - Shop 86.6 932
Convenience store 399.9 4,304
Note : A total of 20 parking spaces are allocated to the convenience store.
Convenience Store - Let to Southern Co-operative Ltd on an effectively full repairing and insuring lease by way of service charge for a term of 15 years at a rent of £63,000 per annum subject to five yearly upward only rent reviews linked to the Retail Price Index (RPI) capped at 3% (compounded annually) and collared at 1%. There are no break options within the lease.
Unit 1 - Under offer on a new effectively full repairing and insuring lease for a term of 15 years at a commencing rent of £13,500 per annum subject to five yearly upward only rent reviews to market value. The lease provides for five yearly tenant only break options subject to six months written notice.
Unit 2 - Available on a new full repairing and insuring lease at a rent of £13,500 per annum exclusive.
Method of Disposal
The premises are to be sold by way of assignment of an existing 999 long leasehold interest at a peppercorn ground rent.
£1,325,000 reflecting a potential net initial yield of 6.41% after purchasers costs at 5.96%. VAT is applicable,
Note: This is on the basis that both Units 1 and 2 are let.
We understand that mains services are connected to the Units.
Woolley and Wallis Commercial have not tested the services mentioned in these particulars.
Prospective tenants must satisfy themselves as to the permitted planning uses for the property and also whether VAT is applicable to this transaction.