6/8 Derby Street, St13 5Ab Freehold Prime Retail Investment
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FREEHOLD PRIME RETAIL INVESTMENT LEEK – 6/8 DERBY STREET, ST13 5AB FREEHOLD PRIME RETAIL INVESTMENT INVESTMENT SUMMARY • Affluent Market Town • Prime position on pedestrianised Derby Street • Let to The Works Stores Ltd • D & B rating of 4A1 - Minimum risk • New 10 year lease from November 2018 • Price £570,000 • 7.00 % Net Initial Yield LEEK LOCATION Leek is an attractive market town located on the south west edge of the Retailing in Leek is focused on Derby Street and Market Place, which Peak District approximately 11 miles to the north east of Stoke-on-Trent, is centred around a 36 space car park and is also the location of the 27 miles south east of Manchester and 28 miles to the north west of Derby. weekly outdoor market. The principal car park for the town is situated directly behind the property with access to Derby Street, immediately The town makes up part of the Staffordshire Moorlands District which adjoining the store. serves a resident population of 97,106. The subject premises occupy a prime location next to the junction of Transport links in the town are provided by the A523, leading to Derby Street and Stanley Street on the south side of the road, where Macclesfield to the north and linking with the A52 to the south east, nearby retailers include Boots, WH Smith, Clarks, Specsavers, together with the A53 leading to the M6 and Stoke-on-Trent to the south Edinburgh Woollen Mill, Shoe Zone and a mix of multiple and local west. traders. Railway services are available from nearby Stoke-on-Trent railway station which provides direct services to Manchester Piccadilly (39 Minutes), Birmingham New Street (49 minutes) and London Euston (1 hour 28 minutes). Frequent connecting bus routes are available from Leek to Stoke-on-Trent. 6/8 DERBY STREET, LEEK ST13 5AB 2 BRIEF DESCRIPTION DIMENSIONS The property comprises an attractive Georgian premises of brick and tile The property has the following approximate dimensions and net floor construction arranged on basement, ground and two upper floors of which areas:- the first floor is used for storage / ancillary and the second is currently unused. The shop is serviced via the service yard at the rear of the Gross Frontage 10.40 m 36' 00" premises. Internal Width 10.50 m 34' 07" Prior to the letting, the landlord undertook building work to the property Shop Depth 23.80 m 78' 00" including repairs to front section and the rear of the property, reconstruction of the rear boundary wall, modification of the rear fire Built Depth 30.70 m 100' 08" escape and the removal of asbestos from the premises. ITZA 1091.25 units Ground Floor Sales 190.00 m² 2,049 sq.ft. Ground Floor Storage 43.00 m² 466 sq.ft. Basement Storage 61.00 m² 654 sq.ft. First Floor Storage / Staff Room 68.00 m² 736 sq.ft. Second Floor 72.00 m² 774 sq.ft. 6/8 DERBY STREET, LEEK ST13 5AB 3 TENURE The property is freehold. The entire property has been recently let to The Works Stores Ltd for a term of ten years from 8th November 2018, expiring on 7th November 2028 at a rent of £42,000 per annum exclusive with an upwards only rent review in the 5th year. The lease is held on an effective FRI basis although there is a photographic schedule of condition relating to the internal decoration of the second floor. The tenant has an option to break the lease in the 5th year on 6 months prior written notice. The tenant has the benefit of a nine month rent-free period from commencement and any outstanding rent-free at the time of completion will be topped up by the vendor. COVENANT STRENGTH The Works Stores Ltd (Company Number 06557400) is one of the UK’s leading multi-channel specialist retailers of books and stationery having in the region of 470 stores in the UK and Ireland. For the year ended 30 th April 2018, the company had a turnover of £192.1 million, a pre-tax profit of £7.53 million and shareholders funds of £31.24 million. All three have increased on a year-on-year basis for the last three years. They have an Experian Credit rating ‘Low Risk’ and a D&B rating of 4A1, ‘Minimum Risk’ . 6/8 DERBY STREET, LEEK ST13 5AB 4 6/8 DERBY STREET, LEEK ST13 5AB 5 FREEHOLD PRIME RETAIL INVESTMENT LEEK – 6/8 DERBY STREET, ST13 5AB PROPOSAL • For the freehold interest, we are instructed to seek offers in the region of £570,000 subject to contract to show a net initial yield of 7.00% with allowance for purchase costs at 5.04%. • This is an opportunity to purchase a large recently refurbished shop and upper parts in a prime pedestrianised trading position on Derby Street. It is let to a strong national retailer with strong financial results demonstrating year-on-year growth. • The property is registered for VAT and it is expected that a sale will be by way of TOGCc. EPC • The Energy Performance Certificate is available upon request. FURTHER INFORMATION MISREPRESENTATION ACT These particulars are intended only as a guide to prospective purchasers to enable them to decide whether to make further inquiries with a view to taking up negotiations but they are otherwise not intended to be relied upon in any way or for any purpose whatever and For further information please contact: accordingly neither their accuracy nor the continued availability of the property is in any way guaranteed and they are furnished on the express understanding that neither the agent nor the vendor is to be, or come, under any liability or claim in respect of their contents. The vendor does not hereby make or give nor does any Partner or employee of Smith Price LLP have any authority to make or give any representation or warranty whatsoever as regards the property or otherwise. Any prospective purchaser or lessee or other person in any way John Loveday Stephen Powell Charlie Taylor interested in the property should satisfy himself by inspection or otherwise as to the correctness of each statement contained in these particulars. In the event of the agents 020 7409 2100 020 7318 5751 020 7409 2100 supplying any further information or expressing any opinions to a prospective purchaser, whether oral or in writing, such information or expression of opinion must be treated as given [email protected] [email protected] [email protected] on the same basis as these particulars. These particulars do not form part of any contract and, except where expressly otherwise stated, offers will be considered only subject to contract. Smith Price LLP is a limited liability partnership registered in England and Wales. Smith Price LLP │ 5/7 John Princes Street │ London W1G 0JN │ 020 7409 2100 Registered number: OC318959. Registered office: 5/7 John Princes Street, London W1G 0JN SUBJECT TO CONTRACT.