Clifton House Merridale Road, Wolverhampton, Wv3 9Rx Location Description Tenancy Opportunities Proposal Contact

CLIFTON HOUSE MERRIDALE ROAD, WOLVERHAMPTON, WV3 9RX LOCATION DESCRIPTION TENANCY OPPORTUNITIES PROPOSAL CONTACT

CLIFTON HOUSE ALTITUDE Merridale Road | Wolverhampton | WV3 9RX INVESTMENTS

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Lifespring’s Church

Bank’s Brewery Stratstone Harley Davidson Dealership

LOCATION SUMMARY Wolverhampton is the second largest city within the West Midlands conurbation and a metropolitan Fully let neighbourhood retail parade borough in the region. At the 2011 census, it had a population of 249,470. It forms a key part of the densely populated Black Country that encompasses the boroughs of Dudley, Sandwell and Walsall, with 12 newly completed residential apartments above a population of circa one million. The city is centrally located in the UK approximately 17 miles (27 km) Recent full redevelopment of the site north west of Birmingham, 74 miles (119 km) south of Manchester, 99 miles (159 km) north of Bristol and 130 miles (209 km) north west of London. Central location and busy pitch The area is benefiting from comprehensive regeneration The city has good road communication links with Junction 10 of the M6 4 miles to the east and Junctions 1&2 of the M54 4 miles to the north. The A41 provides access south east into the Black Country along Quoting Price – £2,350,000 the Black Country Route and the A449 Stafford Road leads north to Junction 2 of the M54. Representing a NIY of 7.50% on the retail & a Gross Yield of The town’s main railway station has direct access to London and Birmingham New Street with journey 7.63% on the residential times of 1 hour 48 minutes and 17 minutes respectively. The town is home to a number of major UK firms including Marstons, Jaguar Land Rover, Lloyds Bank, Carillion, Goodrich and Moog.

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DESCRIPTION The property comprises of 6 ground floor retail units, a ground floor office and12 x 2 bedroom apartments on the first and second floors.

The whole scheme is recently completed having undergone a major refurbishment where the building was stripped back in its entirety to the concrete frame.

The retail accommodation benefits from a service and amenity corridor at the back of the building, with the service yard at the rear. The residential accommodation is accessed from an entrance hallway and intercom system at each end of the building, fronting Merridale Road.

Both the retail and residential accommodation have private parking to the rear of the building.

SITUATION The property lies to the west of the city centre and is situated on the corner of Merridale Road and Chapel Ash – one of the main arterial routes in and out of the city. Nearby occupi- ers include Stratstone Harley Davidson dealership, Subway and the remodelled Banks’s Brewery (Marstons).

The area to the east of the site is a mixture of commercial and residential property, whilst the general tone heading west on Merridale Road is residential. The retail parade provides an ideal edge of city shopping amenity to the densely populated area around the site.

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TENURE The tenancy is freehold.

The property is let to 6 different retail operators and an office tenant on the ground floor and12 individual AST’s are in the residential accommodation. GROUND FLOOR COMMERCIAL TENANCIES

LEASE RENT BREAKS UNIT TENANT Area (Sq Ft) LEASE START TERM Rent Review (quarterly in EXPIRY advance) (6 months notice)

1 Beauty by Stacey J (Miss Stacey Dodd) 404 10/07/2016 10/07/2020 5 years 10/07/2018 & 09/07/2020 £9,000 10/07/2018

2 Holmes Properties (Mr Mark Plant) 388 01/10/2016 01/10/2025 9 years 01/10/2019 & 30/09/2025 £9,000 01/10/2019

3 Huckleberry's Menswear Ltd 406 26/10/2015 26/10/2021 6 years 26/10/2018 & 25/10/2021 £9,000 26/10/2018

4 Vaal & Vaal (Mrs Harpreet Gill) 404 01/09/2015 31/08/2020 5 years 01/09/2018 & 30/08/2020 £9,000 01/09/2018

5 Merridale Supermarket Ltd 1,981 01/06/2017 31/05/2037 20 years 01/06/2020 & then 3 yearly £25,000 01/06/2020

5A Mr Gary S. Anning & Mr Mark James Anning 488 01/06/2017 01/06/2023 6 years 01/06/2018 & 01/06/2020 £10,000 Rolling on 6 mths notice

6 West Midland Homes - Office 109 01/05/2016 01/05/2019 3 years N/A £6,000 N/A

NB - 1 months rent deposit held by LL for each tenant. £77,000 Total PA

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RESIDENTIAL TENANCIES

AREA UNIT LEASE START LEASE EXPIRY TERM RENT (PCM) COMMENTS (sq ft)

1 682 19/06/2017 18/06/2018 12 months £650 £750 deposit

2 674 26/10/2017 25/10/2018 12 months £650 £725 deposit

3 844 01/06/2017 31/05/2018 12 months £850 £850 deposit

4 682 08/09/2017 30/06/2018 9 months £750 £750 deposit

5 674 26/05/2017 17/10/2018 12 months £625 £725 deposit

6 844 26/07/2017 25/07/2018 12 months £850 £850 deposit

AREA UNIT LEASE START LEASE EXPIRY TERM RENT (PCM) COMMENTS (sq ft)

7 682 01/10/2017 30/09/2018 12 months £650 £650 deposit

8 674 19/06/2017 18/06/2018 12 months £650 £750 deposit

9 844 22/07/2017 21/07/2018 12 months £850 £850 deposit £850 deposit 10 682 16/06/2017 15/12/2017 6 months £1,700 Inclusive of bills 11 674 02/07/2017 01/07/2018 12 months £650 £650 deposit

12 844 17/10/2017 17/10/2018 12 months £850 £850 deposit

£9,725 Total PCM

TOTAL ANNUAL INCOME

COMMERCIAL TENANCIES RESIDENTAL TENANCIES TOTAL

£77,000 £116,700 £193,700

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REVERSIONARY POTENTIAL / ASSET MANAGEMENT OPPORTUNITIES

The building offers a number of ways to increase rent roll and add value:

The rents were let on the conservative side while the scheme established itself The area is benefitting from considerable investment and regeneration, helping both rental values, prominence and capital values of the residential The flats have been independently valued at £125,000 - £130,000 each therefore offering a good discount to VP values Up coming rent reviews on the commercial units

ADDITIONAL DEVELOPMENT SITE The building has a self-contained development site to the rear which benefits from a planning consent for24 x 2 bed flats. Positive comments have been received from the planning department at City of Wolverhampton Council on a new scheme comprising 60 student studios over four floors.

The site is available to purchase by way of separate negotiation or as part of the sale of Clifton House. Please contact Altitude to discuss potential values.

Development Site

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VALUE ADDED TAX The property has been elected for VAT. Therefore, it is envisaged that the transaction will be treated as a Transfer of a Going Concern (TOGC).

INVESTMENT CONSIDERATIONS Multi let regional shopping parade Break-up potential Rental and capital growth in the area Further development site available

PROPOSAL Our client is seeking offers in excess of £2,350,000 (Two Million, Three Hundred and Fifty Thousand Pounds), subject to contract. This reflects an attractive net initial yield of 7.50% for the retail element, assuming purchasers costs of 5.67% and a value of £1,380,000 attributable to the apartments, based on £115,000 per 2 bed apartment (breaking back to £157 per sq ft overall).

The value apportioned to the apartments equates to a gross yield of 8.46% on the current rents and 7.63% if the rent for unit 10 is revised to £750 pcm.

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Exeter Office London Office Midlands Office 20 Southernhay West Stratford Place 5-7 High Street Exeter Mayfair Henley In Arden EX1PR London West Midlands W1C 1ES B95 5AA

George Turnbull Tom Vantreen M: 07815 867 807 M: 07772 328 273 D: 0203 770 2828 D: 01392 660 000 E: [email protected] E: [email protected]

Imortant Notice

Altitude Investment, their clients and any joint agents give notice that:

1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact.

2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary lanning, building regulation or other consents and Altitude Investment have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise.

Q4 2017

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